Arizona Corporation Commission Under Scrutiny for Alleged Industry Ties
Concerns about the closeness of the Arizona Corporation Commission to the companies it regulates have resurfaced, sparking discussions about ethics and regulatory practices. At a recent town hall organized by Arizona Attorney General Kris Mayes, resident Nancy Jagger expressed shock over a commission meeting she observed, which she claimed involved too cozy interactions between lobbyists, the Goldwater Institute, power companies, and the Commission itself.
As the Corporation Commission race heats up, discussions have centered around data center development and its alleged impact on utility rates. Democrats, including Mayes, accuse the Republican-led commission of allowing utility companies like Arizona Public Service (APS) and Tucson Electric Power to transfer data center expenses onto consumers.
According to a consumer advocate study, APS might have shifted up to $600 million in natural gas fuel costs intended for large commercial customers to other ratepayers. Mayes advocates for an official audit to examine APS’ power purchase expenses and potential cost-shifting practices.
In the political arena, Democratic candidates Clara Pratte and Jonathon Hill have raised concerns about Republican Commissioner Kevin Thompson’s involvement with the Regulators Roundtable Institute, a nonprofit group that connects public service commissioners with corporate interests. The group, created under the GOPAC political action committee, aims to “promote reliability, affordability, innovation, and state-driven regulatory authority,” according to its mission statement.
The Energy & Policy Institute (EPI), an environmental watchdog, has reviewed documents to understand the Institute’s objectives. Stephanie Chase of EPI reported that Thompson solicited corporate sponsorships of $50,000, offering businesses access to regulators in return.
Chase stated, “Kevin Thompson helped to solicit investments from corporations, including utility companies, to come and meet with the regulator of those utility companies at a variety of events that happened over the last couple of years.” EPI also obtained a pamphlet encouraging corporate participation in the Roundtable forums, highlighting opportunities to influence policy and industry trends.
All members of the Arizona Corporation Commission are Republicans, and each has reportedly attended at least one Roundtable event. Elizabeth Gianini, president of the Roundtable Institute, defended these gatherings in a statement to the Washington Post, asserting that no official actions are taken during the sessions.
The Washington Post has identified major investors in the Roundtable Institute, including Google, the American Gas Association, and the Nuclear Energy Institute. According to EPI, utility companies such as Southwest Gas and the parent companies of APS and Tucson Electric Power have contributed significantly to GOPAC this year.
Commissioner Thompson did not provide comments to KJZZ despite requests.
