Archive for December, 2007
For instance, Aquila CEO Rick Green earlier this year told his board of directors in an e-mail that PSC Chairman Jeff Davis had indicated he favored the deal and wanted it to go through quickly.
It would be highly unethical behavior for a regulator to make such a decision without hearing the evidence in public.
For the full editorial from the Kansas City Star, click here.
In the wake of the scandal involving PSC commissioners and utility executives involved with the proposed merger of KCP&L and Aquila, Governor Matt Blunt is calling on the PSC to review its conflict of interest policies. Meanwhile, Senate Minority Leader Maida Coleman, D-St. Louis, is calling for a Senate-led investigation.
For a posting at the St. Louis Post-Dispatch blog, click here.
By David A. Lieb
ASSOCIATED PRESS
JEFFERSON CITY, Mo. (AP) — The state’s top utility regulator said today that he will remove himself from a decision on whether to approve the sale of Aquila Inc. to utility rival Great Plains Energy Inc.Public Service Commission Chairman Jeff Davis told The Associated Press that he plans to recuse himself from the case because of a controversy over a conversation he had with Aquila’s chief executive. But Davis denied any wrongdoing.
For the full story, click here.
Michael Sorkin of the St. Louis Post-Dispatch is reporting this afternoon that Lewis Mills, who heads Missouri’s office of public counsel, said today four of the five commissioners on the state’s Public Service Commission are “tainted” by behind-doors conversations with power company executives in a merger case. He also said customers could not expect a fair trial before the commission.
For the full article, click here.
An excerpt from the Kansas City Star newspaper:
Nixon, in a letter, said recent revelations concerning communications between Davis and Richard Green, the head of Aquila, had “made it plain” that Davis no longer could “serve in an adjudicatory role in this proceeding.”
Nixon said it was possible that other members of the commission also should recuse themselves from deciding whether Great Plains, the parent company of Kansas City Power & Light, should be able to buy Aquila.
For the full story, click here.
Whatever happens with the merger — and it should be denied — Mr. Davis should play no further role in hearings or votes on the case. The apparent conflict of interest is too great. If Mr. Davis wants to work for Missouri’s utilities instead of being an honest broker for the people, let him resign and get his paycheck from a utility company, not the taxpayers.
Excerpt from an editorial of the St. Louis Post-Dispatch. For the full editorial, click here.
Consumers Council Says PSC Chair Davis Should Recuse Himself To Avoid Appearance Of Impropriety
ST. LOUIS – Alberta Slavin, president of the Consumers Council of Missouri, today called on the chairman of the Missouri Public Service Commission, Jeff Davis, to recuse himself from any further hearings and voting on the proposed merger by KCP&L and Aquila.
Slavin said Davis must recuse himself to avoid the appearance that consumers’ interests were marginalized when he met secretly with Aquila executives, and they inferred Davis’
support for the proposed merger months before the proposal was brought before the PSC. If the merger is approved by the PSC, it could cost Aquila customers $80 million in higher utility rates.
For the full news release, click davisrecuse.pdf.
Top utilities regulator under fire again, defends himself
An excerpt from an article in the ST. LOUIS POST-DISPATCH
Missouri’s top utilities regulator privately promised support to a power company 10 months ago for a high-stakes merger only now being publicly considered, according to a once-confidential e-mail that left him scrambling Tuesday to defend himself.
It’s the second time that the conduct of Jeff Davis, chairman of the state Public Service Commission, has been called into question after private meetings with utility company executives.
For the full article, click here.
Today Aquila, Inc. CEO Richard Green will face cross-examination questions regarding an email he sent to the electric utility’s board of directors. The email, revealed yesterday in a Public Service Commission merger proceeding, details positive feedback that Chairman Jeff Davis gave prior to the filing of a request for KCPL’s acquisition of Aquila.
ST. LOUIS POST-DISPATCH
Chairman Jeff Davis of the Missouri Public Service Commission is on the hot seat today, following release of a confidential e-mail that claims he privately agreed to quickly approve the merger of two power companies that would cost their customers millions of dollars in higher rates.
The merger involves Kansas City Power and Light Co., the state’s second largest power company, and Aquila Inc., an electric company in western Missouri that has been compared to Enron after financial scandals left it bleeding red ink.
For the full article, click here.
By STEVE EVERLY
Great Plains Energy’s top executive, after privately meeting with Missouri regulators in January about acquiring Aquila Inc., thought there would be few “significant” objections to shifting more costs to Aquila customers.
But after a regulatory hearing Monday in Jefferson City, he may be reconsidering that view.
Several parties — including the Missouri Public Service Commission’s staff, theMissouri Office of Public Counsel and several industrial users — oppose the deal. They argue that it would be bad for Missouri and could cost Aquila’s customers in the state up to $80 million each year in higher rates.
For the full article, click here.
