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"Recently, Bitter Smith received
significant media attention
regarding a complaint filed
against her with Arizona
Attorney General Mark Brnovich
for conflict of interest. On
September 15, 2015, in an
article titled "Susan Bitter
Smith Should Resign," the
Arizona Republic wrote, "The
Susan Bitter Smith death watch
has officially begun." Bitter
Smith announced she would be
resigning from the Commission
effective January 4, 2016.
Bitter
Smith has lobbied for the
telecommunications industry, but
also regulated the
telecommunications industry.
Bitter-Smith defended her
position:
"As I
have long said, I am not now
nor have I ever been
employed by a regulated
entity," her statement said.
"I am not paid by a
regulated entity. I have not
lobbied for a regulated
entity. There is a policy
issue at stake here: how far
should conflict of interest
rules extend? Should they
extend to holdings by your
retirement plan; should they
apply to investments in your
company or state retirement
funds; should they apply to
anyone who is a customer of
a regulated entity; or
should they apply to anyone
who has received a rebate or
discount from a regulated
entity? The complaint is
broad enough to be read to
exclude almost anyone from
serving on the Commission or
any state office."
Bitter
Smith is listed as a lobbyist
for the cable industry and the
telecommunications industry in
the Arizona Capital Times
Book of Lobbyists for years
2013, 2014 and 2015. She joined
the Corporation Commission,
which regulates the
telecommunications industry, in
2013.
Attorney General investigation
As of
2015, the Arizona Attorney
General's office began
investigating a complaint that
seeks to have Bitter Smith
removed from the Arizona
Corporation Commission due to
conflict-of-interest issues. As
chair of the commission, Bitter
Smith was in charge of
regulating the
telecommunications industry. At
the same time, she worked as a
lobbyist for the industry.
In
addition to serving on the
Arizona Corporation Commission,
Bitter Smith managed her own
public relations firm called
Technical Solutions. In 2015,
she served as a lobbyist for the
Scottsdale National Golf Club.
The golf club wanted a zoning
change that would require the
Arizona Public Service Company
(APS). to move a half-built
electrical substation. APS is
regulated by the Arizona
Corporation Commission. (Bitter
Smith was the chair of the
commission).
Due to
Bitter Smith representing the
golf club while simultaneously
serving as chair of the
Corporation Commission, Arizona
attorney Tom Ryan filed a
complaint against her with the
Arizona Attorney General's
office, seeking to have her
removed from the commission.
During her
lobbying efforts, Bitter Smith
contacted residents in the
affected neighborhood, along
with the neighborhood's
homeowner's association, located
near the electrical substation.
A member of the homeowner's
association told Arizona's NBC
Channel 12 news:
She
treated us like we were
morons.
In the
Channel 12 TV story, reporter
Brahm Resnik said:
This
is a very serious
allegation. A public
official who is elected to
oversee APS is accused of
clearing the way for an APS
power station—not for the
public's benefit, but for
the benefit of her paying
client. That alleged
conflict of interest could
cost Susan Bitter Smith her
job.
She
announced her resignation on
December 17, effective January
4, 2016. After resigning her
position over the alleged
conflict of interest, Bitter
Smith was not have charged by
the Office of Attorney General.
Citing his own real conflict of
interest, Andy Tobin, Governor
Doug Ducey's nominee to replace
Bitter Smith on the Commission,
said he would not vote on
certain utility issues, having
confirmed that his son-in-law
works for Solar City, an
electric utility the Commission
regulates. Recusals on electric
utility issues before the
Commission could very well
result in deadlocked votes and
null decisions. |
