Bob Stump’s Text Messages Support Whistleblower’s Allegation that Arizona Corporation Commissioner Knew of Dark Money Scheme

Analysis of Bob Stump’s Text Messages Support Whistleblower’s Allegation that Arizona Corporation Commissioner Knew of Dark Money SchemeAn analysis of the text message metadata of Bob Stump, former chairman of the Arizona Corporation Commission (ACC), reveals in the weeks leading up to the primary election on August 26, 2014, Stump exchanged hundreds of texts with a dark money leader, an attorney tied to Arizona Public Service (APS), an APS executive, and the two pro-utility ACC candidates who ultimately won the primary and general elections.  The timing and recipients of Commissioner Stump’s text messages may lend support to the claims of whistleblower Antonio Gill that Stump knew of the dark money scheme.

The office of Arizona Attorney General Mark Brnovich is investigating Gill’s allegations. But Brnovich has recused himself after receiving significant help from APS in his election.

The two winning ACC candidates, Republican Commissioners Tom Forese and Doug Little, ran against two pro-solar Republicans, Vernon Parker and Lucy Mason supported by TUSK (“Tell Utilities Solar Won’t be Killed). Parker and Mason expressed their belief before the primary that APS was donating to the Arizona Free Enterprise Club to support their opponents. The utility has not denied involvement with the campaign.

Arizona Free Enterprise Club

Analysis of Bob Stump’s Text Messages Support Whistleblower’s Allegation that Arizona Corporation Commissioner Knew of Dark Money SchemeNew information uncovered by Checks and Balances Project records requests reveal that Stump has exchanged 100 texts with Scot Mussi, president and sole board member of the Arizona Free Enterprise Club. His organization was a big spender in electing Little and Forese, and was second only to another dark money group, Save Our Future Now.

Others whom Stump texted with in the weeks before the important primary election were Garry D. Hays, an attorney affiliated with APS’s Arizona Solar Deployment Alliance, and Barbara Lockwood, APS’s General Manager for Regulatory Policy and Compliance.

small chart

As Commissioner Stump received reimbursement for his Verizon cell phone on which he sent and received text messages, if he was organizing funding for Little’s and Forese’s campaigns, was he involved in illegal electioneering using public funds?

Secrets Uncovered

What is the content of Stump’s text messages with Mussi, Hays, Lockwood, and the two commissioners? We hope to find out very soon.  According to a Verizon senior customer representative, if the text messages are subpoenaed by an attorney, and a judge agrees, the entire text of the messages will be provided.

Overall, Stump sent or received 36,762 texts during a 17-month period from roughly July 2013 to March 2015 – the most contentious period of solar debate in Arizona.

In previous posts, Checks and Balances Project has demonstrated:

During an earlier two-month period – October through November 2013 – when Arizona became the first state to establish a monthly utility fee for residential rooftop solar customers, Stump sent or received 7,832 text messages. That’s an average of 70 text messages per day!  Who was he texting with during this period? We may know soon.

As part of our Captured Regulators Initiative, Checks and Balances Project is scrutinizing the actions of public utility commissioners in several states. Electric utilities around the nation are now attempting to replicate Arizona’s historic rooftop solar fee in a wave of attacks on net metering. But does that effort by utilities benefit the overwhelming majority of consumers who want low-cost solar or the financial interests of government-supported monopoly utilities?

 

Scott Peterson is executive director of the Checks and Balances Project, a national watchdog that seeks to hold government officials, lobbyists and corporate management accountable to the public. Funding for C&BP comes from pro-clean energy philanthropies and donors.

 

Checks & Balances Project Calls On Arizona Attorney General to Investigate Anti-Solar Push Poll

Checks & Balances Project Asks Arizona Attorney General for Investigation

Ariz. Attorney General Mark Brnovich

Today, the Checks and Balances Project sent a letter to Arizona Attorney General Mark Brnovich asking that he investigate whether or not Arizona Public Service (APS) is connected with efforts by the Virginia-based Taxpayers Protection Alliance to conduct a door-to-door push poll designed solely to discredit the residential solar industry in Arizona.

If APS is connected, we ask that the Attorney General determine the extent to which APS has used ratepayer funds to underwrite this effort to protect its status as a highly profitable, incumbent monopoly.

Our request for an investigation was sparked by an article in Friday’s Arizona Capitol Times titled, “Looking for Trouble in All the Solar Places” (subscription required). In the article, Virginia-based Taxpayer Protection Alliance President David Williams acknowledged he’s really after people’s negative experiences.

This takes places as Arizona Public Service Co. prepares a request for regulators that would increase monthly fees on solar companies, according to news reports.

Arizonans deserve to know whether or not APS hired the Taxpayers Protection Alliance directly or through the front group, American Encore. Formerly known as the Center to Protect Patient Rights, American Encore is run by Mr. Sean Noble who, during the 2013 net metering debate, APS acknowledged funneling money to in order to bolster APS’s position.

To read the full text of the letter, click here.

 

Scott Peterson

Executive Director

Checks and Balances Project

 

Virginia FOIA re Michael Karmis PhD.

September 29, 2014

 

Tarah Kesterson

Department of Mines, Minerals and Energy (DMME)

P.O. Drawer 900

Big Stone Gap, VA 24219

 

RE:  Request for records under the Virginia Freedom of Information Act

 

Dear Ms. Kesterson:

My name is Scott Peterson. I am the Executive Director of the Checks and Balances Project, a government and industry watchdog group. In accordance with the Virginia Freedom of Information Act (§ 2.2 -3700 et seq.), I am requesting copies of any and all records, including meetings, emails, and phone logs, related to a request for proposal, preliminary negotiations, and a contract between the Department of Mines, Minerals and Energy (DMME) and Professor Michael E. Karmis of Virginia Tech to conduct a cost benefit analysis as required by the legislature for Virginia to comply with the U.S. Environmental Protection Agency’s Section 111(d) of the Clean Air Act. Contracts are open records. If the cost benefit analysis is being done pro bono by Karmis, there is also no reason for that to be kept secret.

I also seek any and all public records, including records of meetings, emails, and phone logs, between DMME Energy Division Director Al Christopher and 1) Office of the Governor Policy Director Anna James, 2) Office of the Governor Deputy Policy Director Jay Swanson, 3) Deputy Secretary of Natural Resources Evan Fienman and 4) Hayes Framme of the Office of the Secretary of Commerce and Trade about or to Dr. Karmis and any representatives of the above parties since January 2, 2014.

If there are any fees for searching or copying these records, please inform me if the cost will exceed $200. The Virginia Freedom of Information Act requires a response to this request be made within five business days.  If access to the records I am requesting will take longer than this amount of time, please contact me with information about when I might expect copies or the ability to inspect the requested records. If you deny any or all of this request, please cite each specific exemption you feel justifies the refusal to release the information and notify me of the appeal procedures available to me under the law.

If you have any questions or require additional information in order to process my request, please do not hesitate to contact me at scott@checksandbalancesproject.org. Thank you in advance for your cooperation in this matter.

 

Sincerely,

Scott Peterson

 

Checks and Balances Project Re-files Records Request to Combat Kasich’s Evasion

Checks and Balances Project Re-files Records Request to Combat Kasich’s EvasionToday the Checks and Balances Project filed a second request for records for information into the reasons behind Governor Kasich’s decision to freeze clean energy jobs in the state. This request comes after the Kasich administration’s legal team ducked the clear questions asked in our first request.

Our new request asks for:

“any and all public records of conversations and/or emails pertaining to Senate Bill 310 and/or mention the word “energy” between Governor Kasich, his staff and representatives of the American Legislative Exchange Council and Americans for Prosperity between January 1, 2014 and the present.”

and:

“public records of conversations and/or emails pertaining to Senate Bill 310 between Governor Kasich, his staff and employees or lobbyists employed by Ohio investor-owned utilities: AES, American Electric Power, Duke Energy and First Energy. This request is effective for the dates between January 1, 2014 and the present.”

We have made this request in light of significant lobbying spending by Ohio utilities and by the Koch Brothers. FirstEnergy alone has donated more than $800,000 to the Governor and legislature during this legislative session. We are also curious about a $12,155 donation (the maximum allowed donation under Ohio campaign finance law) made by David Koch, of Koch Industries, Inc. to Governor Kasich’ 2014 re-election campaign.

Ohioans deserve to know why Governor Kasich decided to sign SB 310 despite the fact that it could cost Ohio consumers $1.1 billion dollars (PDF), put 25,000 Ohio jobs at risk, was overwhelmingly opposed by Ohioans, major editorial pages in the state, and a significant number of major Ohio businesses.

You can read a full copy of the request here.

Ken Cuccinelli’s Conflict of Interest Problem: The CONSOL Energy Campaign Contributions Timeline

The unfolding controversy around Attorney General Ken Cuccinelli’s involvement with CONSOL Energy Inc., a Pittsburgh-based fossil fuel (oil, gas and coal) company, has focused on the widely criticized assistance his office provided the company. It also has focused on the total amount of money Cuccinelli has received from CONSOL.

When forced to respond to C&BP recently, Cuccinelli has asserted the company “gave me $100,000 after I opposed them.” A comparison of the timing of contributions and actions that favored CONSOL paint a very different picture.

Ken Cuccinelli and Consol Energy Campaign Contributions

In the first eight years of Mr. Cuccinelli’s political career (state senate), his campaigns received a total of $3,500 from CONSOL. However, once elected to Attorney General, his office began taking actions that favored CONSOL and disadvantaged southwestern Virginia landowners who hadn’t been paid by CONSOL. A comparison of the timelines of actions and money show a pattern of accelerating support as favorable actions increased, bringing a total of $140,000 to Cuccinelli after the actions favorable to CONSOL began.

In June 2010, Mr. Cuccinelli issued an advisory opinion that limited the jurisdiction of the Virginia Gas and Oil Board that forced Virginia landowners to go to court over royalty payments, a move clearly in CONSOL Energy’s favor.

Two months later, in August 2010, his office sided with CONSOL and against Virginians in a lawsuit to recover improperly withheld royalties, helping the out-of-state oil company defend against a claim by Virginia landowners.

From August 2010 through April 2012, Cuccinelli’s office (through a Senior Assistant Attorney General Sharon Pigeon) began secretly providing legal research and advice to CONSOL’s attorneys regarding the lawsuit, outside of the scope of the AG office’s official capacity. The Virginia Inspector General is now investigating to determine whether the AG’s office misused taxpayer funds.

Finally, Mr. Cuccinelli, helped CONSOL again earlier this year when he issued another advisory opinion that barred local jurisdictions from using zoning laws to establish fracking moratoriums.

Our weekly wrap on the top 5 energy stories for the week of July 29th

COGA CEO Tisha Schuller supports front group claim that trees cause smog

Colorado Oil and Gastrees cause smog copy Association CEO Tisha Schuller said she wanted to depolarize the debate around fracking and drilling, and even said she’d be touring Colorado communities to do just that. So it was disappointing, if not surprising, when her group helped publicize industry front group Energy In Depth’s (EID) attacks on Denver Post reporter Bruce Finley. Finley came under fire from EID for his story on new requirements for companies surveying for oil and gas on residents’ land and for shining a light on industry propaganda. The EID piece went so far as to contend that trees cause smog. Rather than seize the opportunity to help set the record straight about the negative effects of oil and gas, Schuller’s group tweeted her support of EID’s lies. If Schuller truly wants to help depolarize the debate, she’ll distance herself from EID.

Group tours Dinosaur National Park to discuss proposed drilling

As concerned parties wait to learn whether or not Colorado BLM Director Helen Hankins will again try to lease land next to Dinosaur National Park’s visitor center for oil and gas drilling, Colorado Senator Michael Bennet brought together industry, politicians experts, including Park Ranger Jim Gale, to discuss the project on a two-day river trip through Dinosaur National Park. Others on the trip included: Colorado State Senator Gail Schwartz and a representative from the water commission. Gale blogged on the impact their surroundings’ beauty had on the entire group. But, questions remain about the fate of the park and whether the Colorado BLM is up to the task of balancing protecting the park with oil and gas development.

Water shortages among top concerns in Colorado

This week The Coloradoan asked five people—experts, an activist, and politicians—their views on the greatest environmental threats tCache La Poudre River copyo the state. Climate change, water shortages, air and water quality and the expansion of oil and gas were top environmental concerns.

Despite the group’s concerns, surprisingly most believed there were steps Coloradoans and the state could take to lessen the effect of environmental threats. Solutions ranged from greater protection of rivers, Coloradoans making their views known during elections, water conservation, and better oil and gas regulation.

Oil and gas royalty rates from the 1920s shortchange taxpayers

In a recent The Hill op-ed, Jim Baca, highlighted the up to hundreds of millions of dollars taxpayers are losing out on due to oil and gas onshowoodrow wilson copyre royalty rates that have not been updated since the 1920s when Woodrow Wilson was president. Citing data from the Center for Western Priorities’ (CWP) recent report, “A Fair Share: The Case for Updating Federal Royalties,” Baca writes that the federal government is required to evenly split royalty revenue with states where oil is produced. Yet, the federal government charges oil and gas companies only 12.5 percent, lower than the 16.67 percent to 25 percent charged by the energy-rich states Colorado, Montana, New Mexico, Utah, and Wyoming. These states are losing out on an estimated $400-$600 million dollars in revenue as a result of the government’s undercharging, the report says.

According to President Obama’s estimates, over the next 10 years updating the onshore royalty rate would generate $2.5 billion in net profit for the U.S. Treasury.

And, the good news is the Department of the Interior has the authority to raise the onshore rate to one that’s fair to taxpayers. It wouldn’t be the first time the agency raised rates, having previously raised the offshore rate from 12.75 percent to 18.75 percent under the Bush Administration.

With the President estimating an economic boost in the billions and the Department of the Interior having the power to do so, it’s time to charge a rate that’s fair to states and to taxpayers.

Cornell Professor and oil and gas engineer: gas is not “clean”

In a recent New York Times op-ed, Cornell Professor Anthony Ingraffea  discussed the negative impact of gas-produced methane on our air and water and says that if we really want to address climate change, as outlined in President Obama’s recent speech, we’ll support the scaling of renewables such as solar. However, he adds that support for renewables needs to be coupled with policies that recognize the threat from oil and gas leaks and emissions.

Hickenlooper’s Third Misdeed: Playing the class card in the energy debate

Gov. John Hickenlooper’s top oil and gas regulator, Matt Lepore, disgracefully played the class card and tried to pit the working poor against efforts to protect our air and water from drilling pollution.

At a recent energy summit, the Fort Collins Coloradoan reported his comments:

“If you look at the demographics of anti-fracking activists, he said, they are generally affluent enough not to be concerned with the cost of home heating and cooling, he said.

COGCC Director, Matt Lepore

COGCC Director, Matt Lepore

The truth is that low income populations are often the most threatened by pollution from dirty forms of energy. Reasons vary. For example, the working poor are more likely to live next to major sources of pollution and have less access to affordable, quality healthcare.

Oil and gas drilling operations moving further into city limits pose similar problems. If a drill rig shows up next to a school or across from an apartment complex, the working poor have less mobility and can’t pick-up and move their family to a better neighborhood.

The U.S. Environmental Protection Agency found that oil and gas drilling pollution releases cancer causing chemicals into the air and dangerous ozone-forming pollutants, which can lead to asthma.

Lepore could also use a lesson in energy economics. Lepore presented a false choice between low energy prices vis-a-vis natural gas and coal. There’s no reason why we can’t clean-up drilling operations, increase our investment in clean energy, and continue to have affordable energy.

Just look at the lessons Colorado has learned over the years. Xcel Energy has said that Colorado’s shift toward renewables, such as wind and solar, will save Coloradans, rich and poor alike, $100 million over 25 years.

Lepore was smart enough to apologize for his comments, but it was too little too late. He was clearly trying to play the class card and play-up a political wedge between Coloradans.

The comments also provide a unique insight into how Gov. Hickenlooper and his administrators view residents who have concerns with oil and gas – with open hostility.

Instead of viewing Coloradans as the enemy, Gov. Hickenlooper and his administration should stop the attacks, have an honest dialogue, and prove how they plan to ensure clean air and clean water for Coloradans, regardless of a family’s class status or wealth.

This is the third installment in our blog series “Hickenlooper’s Misdeeds” which shines a spotlight on how Colorado Gov. John Hickenlooper has put the interests of oil and gas companies ahead of the health of Colorado families and local communities.

Follow

Get every new post delivered to your Inbox.

Join 98 other followers