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AG: Arizona Regulator Can Inspect Utility's Dark Money Spending

azcc.gov
Corporation Commissioner Bob Burns.

An Arizona regulator does have the power to inspect alleged "dark money" spending by the state’s largest utility, according to an opinion from state Attorney General Mark Brnovich issued Wednesday.

The opinion comes after months of back-and-forth between Arizona Corporation Commissioner Bob Burns and Arizona Public Service, which is widely believed to have spent $3 million on commission races in the 2014 election cycle. APS has not confirmed or denied making the contributions. 

Burns is asking that APS and its parent company Pinnacle West open its books and reveal any political, lobbying and charitable spending. So far, the companies have rebuffed those requests, arguing that is outside the commissioner’s authority and a violation of the First Amendment.

But this opinion could change that. It says an individual commissioner can force a regulated utility to disclose these records; however, the same does not extend to an affiliate like Pinnacle West. The opinion concludes that, in some situations, the entire commission could seek out information from Pinnacle West if it’s relevant to rate-making. 

Burns had been seeking to use his subpoena power to examine the records of Pinnacle West, as well as APS. 

In a statement, the commissioner said he was still looking at the opinion, but called it a "victory for Arizona ratepayers and those of us on the side of transparency."

A spokesperson for APS said the company is currently reviewing the opinion. 

Will Stone was a senior field correspondent at KJZZ from 2015 to 2019.