Dive Brief:
- Arizona lawmakers are working on changes to state law that would enable a newly-appointed utility commissioner to vote in cases involving SolarCity by using a lower conflict of interest standard to determine whether a recusal is required, the Arizona Daily Star reports.
- Former State Rep. Andy Tobin was appointed to the Arizona Corporation Commission (ACC) in December, after Commissioner Susan Bitter-Smith resigned following a conflict of interest controversy. Because Tobin's son-in-law who works at SolarCity, he had intended to recuse himself from votes involving the company, but the bill would allow him to vote, using a lower standard for recusal usually applied to state lawmakers.
- Separately in the state, Phoenix Business Journal reports a judge is considering approving further examination of ACC commissioner Bob Stump's phone, to search for improper communications between the regulator and utilities he oversees.
Dive Insight:
Arizona lawmakers appear united in a bid to have new ACC commissioner Tobin voting in all cases, but some tweaks to a proposed rule change may still be made.
Gov. Doug Ducey said he was not aware of the conflict when he tapped Tobin for the post in December, though he stood by his choice.
SolarCity is involved in most of the ACC decisions involving electrical utilities since utilities are mandated to get a portion of their resource power mix from renewable energy. The largest rooftop solar developer in the country and the state, SolarCity was also involved in the high-profile tussle with APS's request to raise a grid access fee from $5 to $21 on distributed solar users last year.
The solar developer also recently disclosed it has contributed to a non-profit group that supports the Checks and Balances project, a watchdog group that has questioned the relationships between utilities and regulators in the state.
Lawmakers are considering changes to the conflict of interest rules for the five-member commission, potentially allowing regulators to vote in cases of a "remote" conflict, such as Tobin's son-in-law connection. Such a standard currently applies to whether lawmakers may vote on proposed bills.
But at least one lawmaker is skeptical, reports the Arizona Daily Star. Using the lower standard for a small commission does not make sense to Rep. Eddie Farnsworth (R), when the standard was set for the House and Senate, with 60 and 30 members respectively.
“We are completely different animals,” he said during debate.
Some changes to the wording are in the works for the Senate's version of the bill.
In another Arizona case focused on the ACC, the Phoenix Business Journal reports a judge is considering whether to allow further investigation of member Bob Stump's phone, to search for indications he improperly communicated with utilities.
Stump has been investigated by the Checks and Balances Project for communications with APS, had his cell phone data requested, and was also asked to recuse himself, but declined as well.