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APS spends big for Brnovich as company battles pollution rules



The parent company of the state’s largest electric utility is spending hundreds of thousands of dollars through a third party to ensure that Republican Mark Brnovich becomes the next state attorney general.

Records obtained by Capitol Media Services show that Pinnacle West Capital Corp. has given $425,000 to the Republican Attorneys General Association. That amounts to more than one dollar of every six of the $2.5 million RAGA has amassed so far in Arizona for attack ads on Democrat Felecia Rotellini.

Pinnacle West spokesman Alan Bunnell refused to explain why the corporation is spending that kind of money on the race for who becomes the state’s top law enforcement official.

Instead, he said that Pinnacle West and Arizona Public Service “support causes of either party that are pro-business.” And Bunnell said the company acts to ensure there is “safe, reliable and affordable energy.”

But it also comes as APS and other utilities are fighting the Obama administration and the Environmental Protection Agency for what they see as unnecessary and onerous pollution regulations for coal-fired power plants that will require larger reductions in carbon dioxide emissions from Arizona facilities than other states. And Brnovich has said that, if elected, he will join with other states “in challenging the legality of these federal regulations if they are not promptly withdrawn or significantly revised to reflect the concerns of stakeholders.”

Brnovich is not about to reject or disavow the spending by the utility on his behalf.

Spokesman Matthew Benson said the Republican has built “a strong coalition of support” and that “he’s happy to have everyone on board.”

Benson sidestepped a question of whether Brnovich thinks it is appropriate to have a regulated utility try to influence who is elected the next chief law enforcement officer of the state.

“You’d have to ask Pinnacle West about the donation decisions they have,” he said. But Benson, in language echoing what came from Bunnell, said it’s likely the company sees it as in its interest.

“If Pinnacle West has chosen to weigh in on his behalf in this race, it may be because the utility views him as the more credible candidate when it comes to pushing back against the Obama administration and fighting overregulation that threatens Arizona’s ability to produce the clean, cost-effective energy Arizona families and businesses need,” Benson said.

But Rotellini said neither the explanation from Bunnell nor Benson makes sense.

She pointed out that she had gone on record in August as opposing the new EPA rules, even testifying before a legislative committee, before Brnovich sent his own letter threatening to sue the federal agency. Rotellini said she has no answers about why APS and its parent have opted to back her foe. But that did not stop her from blasting the company for its decision.

“It’s beyond disconcerting to see a regulated corporation, the state’s largest utility, contributing hundreds of thousands of dollars to a dark money group to fund attack ads full of lies,” she charged.

Strictly speaking, though, RAGA is not a “dark money” group. Unlike others involved in trying to influence this year’s election, it does provide a list of donors.

But it’s not that simple. RAGA does take cash from other groups that do not make such disclosures.

That includes the American Future Fund which gave it $650,000 earlier this year, meaning that the ultimate source of all of its dollars remains secret.

Other reports, however, show that American Future Foundation, in turn, received much of its funding, at least in the 2012 election cycle, from Center to Protect Patient Rights, a group founded by Sean Noble which has morphed into American Encore. And Noble, who works for Brnovich, has previously been a consultant for APS.

Benson did not dispute whether Rotellini was first in blasting the EPA. But he said the timing apparently is irrelevant to APS.

“The question is which of these two candidates has credibility that they will actually fight back against the Obama administration,” he said. “Talk is cheap.”

While the large contribution to help Brnovich could be found, albeit not from disclosure required by Arizona law, this may not be the first foray by APS into electing candidates it believes will be better for its business interests.

During the Republican primary, Vernon Parker and Lucy Mason charged that APS was behind the hundreds of thousands of dollars poured into commercials against them by Save Our Future Now. The same organization, which refuses to disclose its donors, also spent more than $425,000 on behalf of favored candidates Doug Little and Tom Forese, who have advanced to the primary.

And Save Our Future Now already has reported spending $1.3 million in commercials attacking Democrat Sandra Kennedy.

Bunnell on Tuesday again refused to confirm or deny the involvement of either APS or its parent in the Corporation Commission race. Instead, he repeated his statement about the interest in supporting candidates that the company believes will support its energy policies.

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