Arizona Commission Faces Scrutiny Over Ties to Regulated Companies

Arizona Corporation Commission faces ethics probe over ties with companies they regulate, sparking public concern.
Arizona Commission Faces Scrutiny Over Ties to Regulated Companies

Concerns Arise Over Arizona Corporation Commission’s Industry Ties

At a recent town hall led by Arizona Attorney General Kris Mayes, worries surfaced regarding the close relationships between the Arizona Corporation Commission and the companies they oversee. Ahwatukee resident Nancy Jagger shared her observations from an April commission meeting, expressing surprise at the visible camaraderie among lobbyists, the Goldwater Institute, power companies, and the Commission itself. “I was really shocked by it because they had lobbyists, they had the Goldwater Institute, they had the power companies, and the Arizona Corporation Commission, and they were all very tight, and they openly talked about how we needed to be educated,” Jagger stated.

This year’s race for the Corporation Commission is intensifying, driven by concerns about data center developments and their potential impact on utility bills. Democratic leaders, including Mayes, have criticized the Republican-majority commission for allegedly allowing expenses related to these data centers to be passed on to residents. A consumer advocate study claims that Arizona Public Service (APS) might have shifted as much as $600 million in natural gas purchases, intended for large commercial demands, onto other customers. This has led Mayes to call for an audit of APS’s cost-shifting practices.

Democratic candidates Clara Pratte and Jonathon Hill are focusing on the connections of Republican Commissioner Kevin Thompson with the Regulators Roundtable Institute. This nonprofit, associated with GOPAC, aims to bring together conservative regulators and industry officials to discuss infrastructure innovations. The Energy & Policy Institute (EPI) investigated the Roundtable, revealing that Thompson played a role in recruiting other regulators and securing $50,000 corporate sponsorships, offering companies the chance to meet with utility regulators.

Stephanie Chase from EPI noted, “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 acquired a pamphlet encouraging corporate sponsorships for the Roundtable, highlighting opportunities for investors to educate commissioners on emerging technologies and influence industry policies.

All five members of the Arizona Corporation Commission, all Republicans, have reportedly attended at least one Roundtable event. Elizabeth Gianini, president of the Roundtable Institute, defended the forums, telling the Washington Post that these gatherings are appropriate as no official actions are taken during the events. The Post identified major investors in the Roundtable as Google, the American Gas Association, and the Nuclear Energy Institute.

EPI also noted that Southwest Gas and the parent companies of APS and Tucson Electric Power contributed significant funds to GOPAC this year. Despite repeated requests, Thompson did not provide comments to KJZZ regarding these matters.

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