Gas lobbyists feted regulators
Nothing illegal, say two PSC commissioners, it was all part of the job.


The Atlanta Journal-Constitution
Published on: 04/01/08

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

Commissioners Stan Wise and Doug Everett say they don't accept gifts: The goods and services that come their way via company representatives are a part of doing their jobs, they say. Both note they aren't doing anything illegal.

State ethics filings show lobbyists for SCANA and GNG —- natural gas marketers regulated by the commission —- spend more on these two commissioners than on the three others combined. One example, in January and February, representatives of the natural gas marketers treated Wise to $485 worth of hockey tickets, dinner and other entertainment.

Wise and Everett collectively received more than $30,000 in campaign contributions from company representatives the last time the commissioners ran for office.

When asked about his contact with lobbyists, Wise touted his open-door policy, saying, "Anybody from anywhere can come talk to me anytime." As for his conduct outside the office: "I do not do business over a hockey game or dinner," Wise 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 the federal legislative office of the U.S. Public Interest Research Group, an ethics watchdog organization based in Washington, D.C.

Wise and Everett have sided with SCANA and GNG in a dispute between the companies and the PSC staff. It started late last year when the commission's consumer affairs division announced that SCANA and GNG had not advised existing customers of standard variable-rate plans that they could switch to new, cheaper plans.

A few weeks later, Wise and Everett walked out of a meeting over whether to punish SCANA and GNG for charging different prices for the variable-rate plans. At a later meeting, they publicly berated the consumer affairs staff, accusing it of being unfair to the companies.

In March, GNG agreed to a $2.5 million settlement paid out in $25 credits to affected customers.

SCANA said it has done nothing wrong. The marketer is scheduled to argue its case before the PSC in May.

Commissioners will decide today whether SCANA can question PSC staff members beforehand to help its case. PSC rules don't allow companies being investigated to do so. SCANA wants an exception.

Hockey and facials

Reports from the State Ethics Commission show Wise attended two hockey games with lobbyists in late January, a few days after The Atlanta Journal-Constitution reported that some customers were overcharged. The first game was with Terry Hobbs, a lobbyist for SCANA. 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 game with him to meet AGL's chief executive, John Somerhalder II.

"We weren't there to discuss any particular topic," Batson said.

Batson said his goal is to have Somerhalder meet with each of the utility commissioners in the six states AGL serves; the hockey game was just the easiest way for Wise and Somerhalder to meet.

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

Such lobbying is commonplace, said Rick Thompson, executive secretary of the State Ethics Commission. The point is to influence public officials, 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? 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," Thompson said.

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."

But in January 2005, he took a $200 snowmobile trip in Colorado courtesy of Newton Monroe Galloway, a lobbyist for the Georgia Public Communications Association and a partner in Galloway & Lyndall, which represents SCANA. Everett's wife received a $109 facial and massage from Galloway days later, according to state ethics filings.

Everett said the snowmobile trip was because "a company in Colorado asked me to come out and speak. It was because I was working. That group was not a regulated industry group."

Galloway declined to comment, and Hobbs did not return calls Monday.

Campaign donations

Wise received at least $26,400 in campaign contributions in 2006 from employees of AGL Resources and SCANA Energy, as well as from Galloway & Lyndall and Hobbs & Associates, which represent SCANA.

Everett received at least $4,875 in campaign contributions from employees of AGL Resources and from Terry Hobbs and Hobbs & Associates, and Fiveash-Stanley, which represents GNG, in 2002 and 2008.

SCANA representatives also have contributed more than $12,000 to PSC Chairman Doug Eaton's current re-election campaign.

Commissioners Robert Baker and Angela Speir take campaign contributions from people representing companies, but neither has received campaign money connected to utilities in recent years.

Speir, in fact, gets little money from industries.

Georgia's utility regulators are elected and therefore are able to accept campaign contributions. State law prohibits commissioners from taking campaign money directly from the companies they regulate, but not from the companies' representatives.

Everett says he has to take contributions from people representing the utilities to fund a successful statewide campaign.

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

—- Staff writer Margaret Newkirk contributed to this article.

UPDATE: THE STORY SO FAR

> Previously: In December, the PSC began investigating whether SCANA and Georgia Natural Gas had unfairly overcharged some customers.

> The latest: Two PSC members critical of the probe accepted dinners, campaign contributions from the companies.

> What's next: The PSC will vote today on an information-gathering request by SCANA.

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 Doug 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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