COMMISSIONERS BOB BURNS
DOUG LITTLE- Interim Chairman F: . COMMISSIONER
BOB STUMP 
BOB BURNS AZ CUE :3 .4.    DirectiLine: (602) 542-3682
TOM FORESE i Fmail: 
VACANT ARIZONA 
COMMISSION . i 
an JEN 28 2 .9
January 28, 2016
NOTICE OF IN VESTIGATION

 

RE: Docket No. 09
Dear Mr. Brandt:

It is with regret that I now embark upon the next stage of my inquiry into possible
campaign contributions. Originally, I had hoped to address these concerns by focusing upon
future behavior, and to that end, I asked APS last year to voluntarily agree to refrain from
making political contributions concerning the Corporation Commission in the upcoming election
cycle. You rejected that proposal.

I next asked you to provide a report listing any campaign contributions provided by APS
in 2014. You declined to provide this information, claiming that such disclosure would ?impinge
on First Amendment rights.? As I have previously stated, I recognize that both APS and
Pinnacle West have a First Amendment right to make campaign contributions, and it is not my
intention to interfere with the exercise of those rights. It is my position, however, that disclosure
requirements do not offend the First Amendment when the information sought is related to the
constitutional and statutory regulatory authority.

In the current climate, there is a public perception that APS has used funds earmarked for
its costs of service to support various political campaigns. Recently, I have become concerned
about the lack of transparency for all of below-the-line expenditures. In sum, I intend to
initiate an investigation pursuant to my authority under A.R.S. 40?241 to determine whether
APS has used above-the-line funds for political, charitable, or other donations. Although my
inquiries were initially focused on potential campaign contributions, I now intend to broaden my
inquiry to include funds expended on all political contributions, lobbying, and charitable
contributions, 123., all donations made?either directly or indirectly?by APS or under 
brand name for any purpose.

2014 FERC Form 1, page 117, reports ?donations? (Account No. 426.1) in the
amount of $1,998,442 and ?expenses for civic, political related activities? (Account No.
426.4) in the amount of $2,883,694. I am interested in examining books and records to
determine the speci?c expenditures that make up these amounts. In addition, I am under the
impression that af?liates sometimes make donations using af?liate funds, but under
brand name. I would like to examine the ?full parameters of this arrangement, including a
full accounting of all contributions/donations given by af?liates under brand name.

Finally, I am aware that APS and its af?liates, especially Pinnacle West, share commonalities in
terms of of?cers and directors, as well as other personnel. I would like to investigate the degree
to which APS and Pinnacle West are intertwined in terms of organization, operation, and
structure.

Pursuant to my authority under A.R.S. 40-241, I hereby expressly direct APS to make
its accounts, books, papers, and documents available for inspection. Also pursuant to A.R.S. 
40-241, APS is directed to make available the appropriate person(s) to answer questions about
their books, records, and business affairs. I will designate a representative to perform the
inepection and the interviews, and pursuant to A.R.S. 40-241, I intend for those examinations
to be conducted under oath so that a written record may be publicly ?led pursuant to A.R.S. 
40-241.C.

My of?ce will be in contact with you soon in order to schedule a mutually convenient
series of dates for the conduct of this investigation. To be clear, unlike my previous
communications, this letter is not intended as a request, but is instead a requirement for your
cooperation under A.R.S. 40?241. I look forward to your full compliance in this matter.

Sincerely,

?ver/4.)

Robert L. Burns
Commissioner

1200 WEST WASHINGTON PHOENIX, ARIZONA 85007-2927 I 400 WEST CONGRESS TUCSON, ARIZONA 85701
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