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Profile: Arizona Republic
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The Arizona Public Service (APS), Arizona’s largest utility, admits that it paid a national conservative organization, the 60 Plus Association, to run advertisements attacking Arizona’s solar energy industry. APS has previously denied funding the ad campaign (see August 14, 2013). APS is trying to persuade the state’s public utility commission to change a state policy allowing homes and businesses that generate their own solar power to sell the excess energy they generate back to the grid (see July 16, 2013), a practice known as “net metering.” Solar advocates say the policy has helped create an increasing demand for rooftop solar energy equipment. APS has argued that solar energy producers pay less than their fair share for conventionally generated electricity, a popular argument among conservative opponents of solar power (see October 15, 2012) that has been challenged as false and misleading (see April 5, 2013 and July 31, 2013). A recent report showed that the utility companies fear massive loss of revenues in the future as solar power begins to eat into their monopoly on electricity provision in Arizona and other states (see January 2013), in part because most utility companies find it difficult and expensive to modernize their industry (see February 7, 2013). Solar advocates say that the elimination of net metering would essentially “kill rooftop solar in Arizona” (see August 14, 2013). Republican state icon Barry Goldwater Jr. leads a pro-solar organization, TUSK, that many in the conventional utility industry seem to fear. In July 2013, APS spokesman Jim McDonald flatly denied that APS was paying 60 Plus to run the ads, telling a reporter, “No, we are not” funding the ad campaign. But reporting by the Arizona Republic has revealed that APS did pay 60 Plus to run ads attacking the solar industry, as well as paying other groups such as Prosper and perhaps others to engage in similar advertising. McDonald now admits, “It goes through our consultant, but APS money does ultimately fund 60 Plus and Prosper.” McDonald now says he was not lying in July, because “[t]hat was my understanding at the time.” He denies knowing how much APS has paid 60 Plus, Prosper, and perhaps other groups, but says whatever money was spent came from shareholders’ funds and not ratepayer money. He then pivots, saying that the issue is “a phony controversy fueled by opponents who are eager to distract attention from the real substance from the issue.” He adds: “We’re in the middle of a bitter political fight. This is not a battle that we want to fight, but we cannot back down.… [W]e are not going to lie down and get our heads kicked in. We are just not. We are obligated to fight. It is irresponsible to our customers not to fight back.” APS vice president John Hatfield tells another reporter that APS “is contributing money to the nonprofits [60 Plus and Prosper], and potentially other groups through political consultant Sean Noble and his firm, DC London.” McDonald denies that APS is anti-solar, but the ads by 60 Plus are openly hostile to solar energy. Prosper has aired ads attacking both solar energy and Medicaid expansion. Bryan Miller of the Alliance for Solar Choice says: “APS knows how popular solar is. Rather than owning up to their attacks, they set up shady organizations and worked behind them, and lied to the public and regulators for months and months. They owe the public an explanation.” Solar industry officials say that most consumers would not choose to use solar if they did not get credit for the excess energy they give back to APS. Lyndon Rive, the founder and CEO of Solar City, says that most new solar customers are installing the panels with leases, and with their new lower power bill and lease payment, they save from $5 to $10 a month. Any additional cost to solar customers greater than a few dollars would prevent most people from using solar, he says, a claim that other industry experts echo. Goldwater recently told a reporter, “Innovation is happening all around APS, and they are sitting there like an elephant in a mud puddle.” He added: “All of the [utility] commissioners are Republicans and conservatives who believe in [market] choice. They will come down on the side of competition and against APS. They better, or they are in trouble. That’s why we have elections. If we don’t like the job they are doing, we will replace them. The people in the bleachers know a lot more about what’s going on down on the field than we give them credit for.” McDonald says TUSK and other pro-solar groups are merely masquerading as conservatives, and in truth are linked to Democrats and the Obama administration.
60 Plus Funded by Koch Brothers; Ads Link Arizona Solar Industries to Solyndra - 60 Plus, an organization that calls itself a more conservative alternative to the more mainstream AARP, is a lobbying organization funded by oil magnates Charles and David Koch (see 1981-2010). In recent years, 60 Plus has produced ads attacking health care reform using false and misleading claims (see Shortly Before August 10, 2009 and August 11, 2009), and was part of a 2009 push to create “astroturf” (fake grassroots) organizations to attack health care legislation (see August 14, 2009). 60 Plus has led the conservative pushback against TUSK and other pro-solar lobbying and advocacy groups, calling net metering “corporate welfare.” The ads attempt to link Arizona solar energy companies SolarCity and SunRun with Solyndra, the solar manufacturer that went bankrupt in 2011. The two firms have no known connections to Solyndra. One ad shows images of secretive businessmen doing deals outside a corporate jet while the voiceover tells listeners, “California billionaires are getting rich off of your tax dollars.” The Prosper ad made an unsubstantiated claim that every rooftop array “adds $20,000 in costs to customers,” a claim that APS CEO Don Brandt has made since the spring of 2013. 60 Plus is led by Noble, a conservative operator who has been called “the wizard behind the screen” in the Koch’s donor network.
Prosper Founded by Republican Politicians and Staffers - Prosper is led by former Arizona House Speaker Kirk Adams, a Republican, and former staffers for ex-Senator Jon Kyl (R-AZ). Adams denies that Prosper was formed to work on APS’s behalf, and that it is also working to block Arizona’s planned expansion of Medicaid. [Arizona Republic, 10/21/2013; Mother Jones, 10/21/2013; GreenTech, 10/22/2013; Huffington Post, 10/25/2013]
Entity Tags: David Koch, Barry Goldwater Jr., Arizona Republic, Arizona Public Service, 60 Plus Association, Charles Koch, SunRun, Sean Noble, SolarCity, Lyndon Rive, Kirk Adams, John Hatfield, Bryan Miller, Jim McDonald, Prosper, Solyndra Corporation
Timeline Tags: US Solar Industry
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