Dive Brief:
- The newest regulator at the Arizona Corporation Commission is drawing attention and scrutiny after announcing his intention to run for one of three open seats this year, regardless of how lawmakers handle a potential conflict of interest that keeps him from voting in some rate cases.
- Former State Rep. Andy Tobin was appointed in December to replace former Chairwomen Susan Bitter Smith who resigned amid scrutiny for conflict of interest, but Tobin has also recused himself from rate cases involving SolarCity since a family member works for the solar developer.
- Lawmakers were considering a measure to clarify conflicts of interest, specifically to allow Tobin to vote. His announcement that he is running for a seat on the ACC, regardless of the conflict of interest, has taken some observers aback, along with his decision to solicit private funds for the campaign, The Daily Courier reports.
Dive Insight:
The Daily Courier reports Tobin will seek election regardless of lawmakers' decision on the conflict-of-interest bill, and goes on to note that he "has also decided to solicit donations for his campaign, breaking with what has been the practice for several years of commission candidates avoiding private funds in favor of public financing."
The goal is to avoid the appearance of influence, but Tobin told the newspaper "I don’t think people should be intimidated by folks who make that comment,” he said.
Tobin was appointed to the ACC by Gov. Doug Ducey (R), after Commissioner Bitter Smith resigned following another conflict of interest controversy. Ducey said he was unaware that Tobin had his own issues, however. Because Tobin's son-in-law works at SolarCity, the regulator will recuse himself from votes involving the company.
However, the solar company is involved in most of the ACC decisions involving electric utilities and solar, since utilities are mandated to get a portion of their resource power mix from renewable energy.
Lawmakers are considering changes to the conflict of interest rules for the five-member commission, potentially allowing regulators to vote in cases of a distant conflict, such as Tobin's son-in-law working for SolarCity. Such a standard currently applies to whether lawmakers may vote on proposed bills. The House has approved the measure, and the Senate is still waiting to act.
The Daily Courier reports the new standard would find there is no conflict of interest if the company involved has more than two dozen employees in Arizona, and the relative has no decision-making authority over the company's budget or management.
Not all lawmakers are sold, however, and it remains to be seen if the newest round of stories about Tobin will impact the Senate's decision. Using the lower standard for a small commission does not make sense to Rep. Eddie Farnsworth (R). He said the standard was set for the House and Senate, with 60 and 30 members respectively. “We are completely different animals,” he said during debate.