Dive Brief:
- An unnamed whistleblower at the Arizona Corporation Commission (ACC) has alleged that former Republican Commissioner Gary Pierce met secretly with officials at the state's largest utility, Arizona Public Service (APS), during times when the utility's rates were under review.
- In a letter sent to the state's attorney general, the ACC staffer said Pierce met with APS officials during and outside of the ex parte period of the utility's rate cases.
- The letter, obtained by Arizona news station 12 News, also alleges other offenses including that Pierce helped a political operative direct money towards campaigns targeting Democratic candidates for the ACC. The employee says he/she was offered a promotion in exchange for keeping these and other alleged transgressions quiet.
Dive Insight:
Is Arizona the next California?
An official at the ACC alleges former Commissioner Pierce had a very cozy relationship with the top executive at APS, meeting privately 14 times with former CEO Don Robinson and current CEO Don Brandt. According to the letter, half of those lunch and dinner meetings were during ex parte periods and could potentially re-open the utility's rates to litigation.
Pierce served as chairman of the ACC from January of 2011 thru December of 2012.
"It is with a heavy heart that I make this disclosure," the whistleblower's letter begins. Later, it says, "Commissioner Pierce continued to exert pressure on the Corporations Division through to the end of this term." Other allegations include helping a friend direct money towards political campaigns targeting Democrats.
The scandal is reminiscent of a story playing out in California, where Pacific Gas & Electric has released thousands of emails between the utility and state regulators which reveal a close relationship among executives and former California Public Utilities Commission head Michael Peevey.
