Gas firms wined and dined Ga. regulators who now defend them


The Atlanta Journal-Constitution
Published on: 03/31/08

Two Public Service Commission members who have staunchly defended Georgia Natural Gas and SCANA Energy from accusations of overcharging customers have also been wined and dined by lobbyists that represent the two companies.

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Stan Wise and Doug Everett — who publicly berated the PSC's consumer-affairs staff and walked out of a meeting over whether to punish SCANA and GNG for charging different prices for variable-rate plans—say they don't accept gifts and aren't doing anything illegal.

But state ethics filings show lobbyists for SCANA and GNG have spent more on these two commissioners than on the others. These companies also helped bankroll Wise and Everett's latest runs for office.

For example, in January and February, representatives of the natural gas marketers treated Wise to $485 worth of hockey tickets, dinner and other entertainment.

When asked about his connections with lobbyists, Wise touted his open-door policy, saying "anybody from anywhere can come talk to me anytime." He is just as blunt about his conduct outside of the office.

"I do not do business over a hockey game or dinner," he said.

A consumer advocate said the gifts are legal but imprudent.

"You can't expect to have clear reasoning and independent judgment if they are accepting gifts and travel and sporting event tickets from the very companies they are trying to regulate," said Gary Kalman , director of U.S. Public Interest Research Group's federal legislative office.

The skirmish involving the PSC, its staff and the gas companies came up after a Jan. 19 Atlanta Journal-Constitution story that said SCANA and GNG had not been telling existing customers of the standard variable-rate plan that they could switch to a new plan that was less expensive. The story was based on a December news release from the PSC's consumer-affairs division saying that both marketers had different variable rate plans and that the newer plan would save them money.

GNG agreed to a $2.5 million settlement where it will pay its customers $25 credits. SCANA, on the other hand, said it's done anything wrong. The marketer is scheduled to argue its case before the PSC in May. But regulators will decide Tuesday whether SCANA can question PSC staff members beforehand to help its defense.

PSC rules don't allow companies to conduct what's known in the legal world as "discovery," but SCANA wants an exception.

Hockey and facials

Reports from the State Ethics Commission show Wise attended two hockey games in late January with lobbyists. The first was with Terry Hobbs, a lobbyist for SCANA, and the second was with Bryan Batson, AGL Resources' senior vice president for external affairs. AGL is the majority owner of SouthStar Energy Services LLC, which owns GNG.

Batson said he asked Wise to attend the hockey game with him to meet AGL's chief executive, John Somerhalder II..

"We weren't there to discuss any particular topic," said Batson. In fact, Batson's goal is to have Somerholder meet with each of the utility commissioners in the six states AGL serves. The hockey game was just the easiest way for Wise and Somerholder to meet, Batson said.

"When you have that many people who are that busy, you have to take what you can take when you can get it."

Despite consumer activists' complaints about lobbying, the point is to influence a public officer, said Rick Thompson, executive secretary of the State Ethics Commission. And it's usually done when there is a particular issue on the table, he said.

"Why does (the hockey game) look any more shady than any other lobbyist expenditure?" he asked. "I'm not saying it's right or wrong, but it's no different than what's going on right now at the state capitol."

Everett said he has a strict personal policy.

"I do not accept any gifts, I do not accept any lunches, I do not accept any trips," he said.

But in January 2005, he took a $200 snowmobile trip courtesy of Newton Monroe Galloway, a lobbyist for the Georgia Public Communications Association and a partner in Galloway & Lyndall, which represents SCANA. His wife received a $109 facial and massage from Galloway less than a week later.

His explanation?

The snowmobile trip was because "a company in Colorado asked me to come out and speak," he said.

"It was because I was working," he said. "That group was not a regulated industry group."

Galloway declined to comment, and Hobbs did not return a reporter's phone calls Monday.

Campaign donations

Wise and Everett received more than $31,200 in campaign contributions from lobbyists, lawyers and employees from SCANA, AGL Resources and GNG. SCANA representatives have also contributed more than $12,000 to PSC Commission Chairman Chuck Eaton's election campaign.

Commission members Robert Baker and Angela Speir did not receive money from people representing those companies in recent years. Speir, in fact, gets little money from anyone representing the industries the PSC regulates.

Everett unabashedly says he and the other Georgia regulators have to take campaign contributions from people who work for the utilities in order to have enough money to successfully run a statewide election.

"Nobody else will donate to your campaign except for people who work for the utility," he said.

Georgia's utility regulators are elected and therefore are able to accept campaign contributions. State law prohibits them from taking campaign money directly from the companies they regulate. If that happens, it is considered a felony, Thompson said.

The rules in each state vary on how much utility commissioners can interact with representatives from the companies they regulate.

"They have to talk to industry people to understand the industry, but having said that, it's important that they follow the rules," said Wayne Olson , a senior consultant with National Economic Research Associates Inc., a consulting group.

Staff Writer Margaret Newkirk contributed to this article.

MEMBERS' GIFTS
-- On Jan. 27, Wise received hockey tickets and dinner totaling $173.68 with Terry Hobbs, a lobbyist for SCANA.
-- On Jan. 30, Wise received a hockey ticket, totaling $120, from Bryan Batson, senior vice president of AGL Resources, which owns GNG.
-- On Feb. 22, Wise received $191.88 worth of food and entertainment from Haydon Stanley, a lobbyist for Georgia Natural Gas.
-- On Nov. 9, 2005, Wise and his wife were at dinner, totaling $487.44, with Newton Monroe Galloway, a lobbyist for US LEC of Georgia Inc., and a partner in Galloway & Lyndall, LLP, which represents SCANA.
-- On Jan. 31, 2005, Everett went on a $200 snowmobile trip, courtesy of Newton Monroe Galloway, a lobbyist for the Georgia Public Communications Association and a partner in Galloway & Lyndall, LLP, which represents SCANA. -- On Feb. 4, 2005, Everett's wife received a $109 facial and massage as a gift from Newton Monroe Galloway.

CAMPAIGN DOLLARS
-- Wise received at least $26,400 in campaign contributions from employees of AGL Resources and SCANA Energy as well as from Galloway & Lyndall LLC and Hobbs & Associates, two law firms that represent SCANA, in 2006.
-- Everett received at least $4,875 in campaign contributions from employees of AGL Resources and from Terry Hobbs, Hobbs & Associates and Fiveash-Stanley, who represent GNG, in 2002 and 2008.
-- PSC Commissioner Chuck Eaton received at least $12,700 in campaign finance contributions from employees of AGL, SCANA, Galloway & Lyndall LLC, Georgia Natural Gas, Hobbs & Associates, and Fiveash-Stanley in 2006.
Source: State ethics commission


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