APS won’t fund campaigns
New APS CEO Jeff Guldner tells state regulators that the company will not fund candidates who are running for elected office as utility regulators.
Arizona Public Service Co.’s new chief executive, Jeff Guldner, told state regulators on Tuesday that the company will not fund candidates who are running for elected office as utility regulators.
Commissioner Robert Burns, who fought unsuccessfully for years to get APS and its parent company Pinnacle West to turn over documents related to political donations, questioned Guldner directly.
“Will you make a commitment here today that Pinnacle West Capital Corp., or any of its affiliated companies including Arizona Public Service Co., will not participate in any way, shape or form in the election of Corporation Commissioners, including both the primary and general
election process, as long as you hold the position you now hold?” Burns asked.
Guldner took over as CEO in November, after the retirement of former CEO Don Brandt.
He responded: “Today as chairman and CEO of both APS and Pinnacle West, I can say that under my leadership, Pinnacle West and APS, and any of our affiliates, will neither directly nor indirectly participate in any election of any Corporation Commissioner through either financial or in-kind support.”
The issue has been more than a little controversial for APS.
In 2014, millions of dollars in “dark money” helped two Republicans who eventually won seats on the Arizona Corporation Commission, which sets rates and policies for utilities including APS.
The nonprofit groups making the contributions did not disclose their donors, though nearly anyone paying attention to state politics assumed the money originated with APS.
That wasn’t confirmed until five years later, in March 2019, when APS affirmed that it donated $10.7 million to darkmoney political groups in 2014 that helped elect Tom Forese and Doug Little to the commission.
APS and Pinnacle West Capital Corp. made the disclosure in a response to requests from regulators, including a subpoena from one elected to replace a commissioner APS helped into office.
The disclosure showed that in 2014, Pinnacle West gave $12.9 million to 16 political groups.
The disclosure was a response to a subpoena from Sandra Kennedy, a Democrat elected to the commission in November 2018. Two other commissioners, Burns and Boyd Dunn, also had requested the information.
Kennedy was sworn in Jan. 7, 2019, and in a week, opened an investigation into the political spending of APS and Pinnacle West.
Pledge welcomed by commissioners
Burns had no further questions for Guldner. Dunn welcomed the pledge.
“I commend you for that statement,” he said, adding it was a big moment for APS and that other utilities already have made such a pledge, including Tucson Electric Power Co.
“I think you are joining the utilities overall in a very healthy attitude.”
Dunn said that when he ran for office in 2016 he requested any such spending be disclosed, and in fact, APS did disclose its spending that year.
But he added that because of subsequent changes in the commission’s code of ethics, any such contributions now would require commissioners to recuse themselves from voting on issues affecting companies, lobbyists and others who contribute to their election.
“Your statement today is, from my perspective, very hopeful,” Dunn said.
Not all the commissioners were satisfied, though. Kennedy asked Guldner why he recently promoted executives who were with the company when it ran into problems with customer service and with explaining rates to customers.
Guldner said he believed the team he has can change the corporate culture, but Kennedy wasn’t hearing it.
“Mr. Guldner, this is the team that has caused all of the ruckus with the issues you are now facing,” she said.
Guldner promised with his team.
“We are going to come in front of you and own this and fix it,” he said of customer-service issues.
Before Guldner made the declaration about not spending in campaings, some company critics said it was inappropriate that the utility had funded elections of its regulators.
Gloria Montaño, the advocacy director for environmental group Chispa, said it was “unacceptable” that APS spent millions on political camgarding results paigns while customers struggle to pay electric bills. She also said the delay in the public learning about the spending was a problem.
“What we found in spring of 2019 was APS political spending in 2014,” Montaño said. “A five-year delay is unacceptable.”
Commissioner Justin Olson asked her if Chispa made political contributions, and she said that while the group does, they are declared publicly, not concealed like the previous APS contributions.
“Arizona has unfortunately some of the dirtiest air in the nation,” she said. “We also seem to have dirty politics.”
Also, customers getting checks
APS on Tuesday updated regulators also reproblems with the company’s website that was supposed to help people choose their cheapest rate plan, but instead directed them to more expensive options.
Officials said more than 7,000 customers have refund checks on the way and another 3,000 should get them in the next week and a half.
APS is cutting about 10,000 checks to customers because the company says that is how many customers changed rate plans since February 2019 and didn’t move to their most economical rate plan.