PHOENIX — The newest state utility regulator said Tuesday he intends to seek election, even if legislators don’t alter the law to absolve him of a potential conflict of interest.
Two months after being appointed by Gov. Doug Ducey, Andy Tobin said he wants a four-year term of his own. He will run for one of three slots open this year on the five-member Arizona Corporation Commission.
Tobin acknowledged that the commission’s ethics lawyer has concluded he cannot vote on any electric rate hike matter where SolarCity has intervened.
That’s because Tobin’s son-in-law is an inventory control specialist for the firm that manufactures and installs rooftop solar panels. The argument is that decisions made by the commission on how much utilities can charge solar customers could affect whether solar companies have to lay off workers.
Tobin said he disagreed with the attorney’s opinion.
But Tobin said even if he cannot vote on such matters, that would not make him ineffective. He said there are plenty of other issues that come before the commission.
He said he has not decided whether he will accede to the lawyer’s conclusion that he has a conflict because of his son-in-law.
And that does not take into account that Tobin’s brother works for Cox Communications, albeit, he said, on the side of the company that handles cable television, which is not regulated by the commission. There may be less to that distinction than Tobin contends: Attorney General Mark Brnovich forced Tobin’s predecessor, Susan Bitter Smith, from office because she lobbied for Cox. Brnovich said there was no bright line between divisions of the company.
On the solar issue, utilities are required to buy the power generated by customers with solar cells. Utilities want to reduce what they are required to pay or eliminate the requirement entirely. They also are proposing “peak demand” charges for their solar customers, charges they say ensure that everyone pays a fair share of maintaining the electric grid.
In Nevada, after utility regulators adopted similar changes, SolarCity laid off workers. That raised the question of whether a similar decision by the Arizona commission would endanger the job of Tobin’s son-in-law.
Based on that concern, a commission attorney told Tobin he could not vote on any matters involving SolarCity.
Legislation proposed to alleviate Tobin’s possible problem spells out that it is not a legal conflict if a relative is employed by a company that might have some interest in a matter before the commission, as long as the company has at least 25 employees in the state and the relative “does not assert control or decision-making authority over the entity’s management or budget decisions.”
The legislation was approved by the House and waits a Senate vote.
A former House speaker, Tobin was named in January to replace Bitter Smith. At the time Tobin said he was unsure whether he would simply fill out the balance of Bitter Smith’ term, which runs through the end of this year, or seek to continue.
Tobin isn’t the only Republican in the race. Three other Republicans are already running for the three open seats: Al Melvin, Rick Gray and incumbent Bob Burns.
Democrats Bill Mundell and Tom Chabin have announced they are running for the commission.
Tobin has also decided to solicit donations for his campaign, breaking with what has been the practice for several years of commission candidates avoiding private funds in favor of public financing. Proponents of public financing have argued that regulators, who act in some cases like judges, should not take money from donors.
“I don’t think people should be intimidated by folks who make that comment,” Tobin said.
He also said that running with public dollars does not guarantee there will not be conflicts or ethical problems, citing criticisms of not only Bitter Smith but other current and former commissioners who have been accused of conflicts.
“Clearly, that hasn’t solved the problem at all,” he said.
Tobin said he has long been opposed to the voluntary system that allows candidates for statewide and legislative office to get public dollars if they do not take outside cash.
“Joe Smith who works at a gas station who wants to write me a check should feel free to do so,” he said.
Tobin said he does not expect to take any cash from anyone who has an interest in any matter coming before the commission.
