Protesters call for APS to disclose political spending

About 30 people protested Wednesday at the shareholder meeting for Arizona Public Service Co.'s parent company in hopes of making the company disclose its political spending.

APS, which is owned by Pinnacle West Capital Corp., is widely believed to have contributed to the political campaigns of two Republicans who were elected to regulate Arizona utilities last year.

The protesters said it is inappropriate for the regulated monopoly to spend millions of dollars to elect the people who set the prices that 1.2 million APS customers pay for electricity.

"We know that secret money in elections has a corrupting influence on our state elections," said Rep. Ken Clark, D-Phoenix, who organized the protest.

Clark said he is frustrated that state lawmakers have failed to pass campaign finance regulations that would end the use of so-called "dark money," where corporations such as APS can contribute anonymously to nonprofit groups that in turn take out political advertising.

"I believe it is APS' influence at our Legislature that has a lot to do with that," he said. "So we are coming to the source and we are talking to APS shareholders directly."

APS officials won't disclose details of the company's political spending but say that it is justified.

"APS is politically active because it is our responsibility to advocate for sound energy policies that benefit our 1.2 million customers and our shareholders," APS spokesman Ray Brooks said.

Inside the shareholder meeting at the Heard Museum, Pinnacle West stockholders were unmoved by the company's political activities. A shareholder resolution put forth by an activist group that sought full disclosure of the company's political spending failed. APS would not disclose the preliminary voting figures.

Outside the meeting, armed security and Phoenix police kept the small crowd of mostly retirees, politicians and political activists confined to the sidewalks along Central Avenue.

They drew cheers and honks from drivers, including at least one APS lineman who honked the horn on his bucket truck as he passed.

Security officials also photographed the protesters, who waved for the cameras.

"This is a very Nixonian operation," said former Arizona Corporation Commissioner Renz Jennings, standing outside the museum with other protesters. They included Tempe Councilwoman Lauren Kuby; Jim Holway, a Democrat who lost a bid for Corporation Commission last year; and Pedro Lopez, program director for Chispa, a Latino environmental group.

"They have captive customers and they are skimming millions from the billions they get to buy regulators."

Jennings said the five sitting Arizona Corporation Commissioners should require APS to disclose its political spending and prevent the company from continuing to participate in elections. But that is unlikely because all five were elected with APS' help, he said.

A 2013 investigation by The Arizona Republic revealed that APS and Southwest Gas contributed a small amount of cash, through the Arizona Chamber of Commerce and Industry, to the successful campaigns of Bob Stump, Susan Bitter Smith and Bob Burns.

Tom Forese and Doug Little were elected last year with the help of millions from nonprofit groups thought to have ties to APS.

"I feel a moral duty to protect the office I once held," Jennings said.

Reach the reporter at ryan.randazzo@arizonarepublic.com.