AG: Arizona utility regulators can force 'dark money' disclosure

• Brnovich offers opinion on APS "dark money"
• He said individual commissioners can inspect utility records
• He said the commission needs to approve inspecting records of affiliated companies

State Attorney General Mark Brnovich issued an opinion Wednesday to Arizona Corporation Commission member Robert Burns indicating he has the authority as an individual commissioner to inspect records of the state's biggest utility regarding political spending.

Arizona Public Service Co. is widely believed to have contributed more than $3 million to the 2014 elections won by Commissioners Doug Little and Tom Forese, but the independent political groups that spent the money don't have to disclose their donors. APS doesn't deny its participation.

Burns has led a months-long effort to force APS to disclose its spending. He said that because the five elected commissioners regulate APS, the issue has threatened the commission's reputation.

APS CEO Don Brandt has refused Burns' directives to account for any such spending, and Little and Forese have defended APS' right to keep such information private.

Burns then asked for Brnovich's opinion, which came Wednesday in a 12-page response. Brnovich said state law "empowers a commissioner to investigate by inspecting the accounts, books, papers and documents of a (public service corporation) but not any affiliates."

APS is owned by a company called Pinnacle West Capital, and if that company spent money on elections, Burns would not be able to inspect those records as an individual, under state statutes, Brnovich wrote.

But the commission could vote to inspect the records of Pinnacle West, Brnovich concluded, if they decide it is necessary for setting utility rates. It seems unlikely Burns could convince two other commissioners to vote with him to do that, based on their public statements on the matter.

Brnovich also cited a 1988 Arizona Supreme Court case where the court concluded the commissioners can request financial information from companies that are not public service corporations if those companies are public, or sell stock. Pinnacle West is a public company.