Arkansas Blog: Only in Arkansas -- UPDATE

Read this letter distributed today and weep for ethics in Arkansas:

Counsel,

The purpose of this email is to inform you that I have recently accepted an offer of employment from the Arkansas Electric Cooperative Corporation (AECC). My resignation from the Arkansas Public Service Commission and assumption of my duties at AECC will be effective sometime during the fall of this year. The exact date, yet to be determined, will be announced later.

As you may know, AECC has publicly disclosed that it is involved in negotiations with SWEPCO that could lead to a 70 MW equity ownership by AECC in the coal plant proposed by SWEPCO in Docket No. 06-154-U. I have not been involved in those negotiations nor have I been involved in any other work on behalf of AECC. Nor will I perform any work for AECC until my resignation from the Commission is finalized.

In the interest of full disclosure and to avoid any appearance of impropriety I am prepared to recuse from this Docket. However, absent an objection from any party I am also prepared to continue to serve as a Commissioner in this Docket through the issuance of the final order. My future employment with AECC will not affect my ability to decide this matter in a fair, objective and impartial manner.

If any party has an objection to my continuing to serve as a Commissioner in this Docket please so indicate by “Reply to All” email no later than 2:00 p.m. this afternoon. If there is an objection by any party I will immediately recuse from this Docket. Upon my recusal the Governor will be asked to appoint a Special Commissioner for this Docket pursuant to Ark. Code Ann. §23-2-102.

Yours truly,

Sandra Hochstetter

Commissioner

This is not a joke. A member and former chairman of the PSC is going to work for a company with a stake in a power plant now under consideration by the PSC. AND SHE PROPOSES TO CONTINUE TO HEAR THE CASE. In that she was hired out of the gas company, recommended highly to Gov. Mike Huckabee as the right sort of utility regulator, it's not particularly surprising that she'd revolve out the door to cash in. It's the Arkansas way. But to brazenly propose to keep working on a case for her new employer? Please.

Reply all. RESIGN. NOW.

But, in the meanwhile, questions: When did the commissioner start negotiating with her new employer? Was it when she participated in the decision certifying the need for electricty from the plant? Was it when she put the kibosh on a PSC site visit to this poison-belching coal-fired plant that will despoil pristone wetlands? Was it when the PSC was happily making other accommodations for a plant other states have shunned?

Was she negotiating with AECC when hearing the case that put the wood to Entergy, an AECC competitor?

Do her office emails reflect private business negotiation?

What will her role be at AECC? Will she practice before the PSC, without any interval of service between one and the other?

What's Gov. Mike Beebe think about all this? And, who'll he appoint to serve out Hochstetter's term, ending in 2011. Maybe he can call his old pal Tom Kennedy over at Entergy for some ideas.

Beebe also must appoint shortly an interim commissioner to hear the SWEPCO environmental impact portion of the coal plant case. That should come today or tomorrow.

UPDATE: Hochstetter has recused from the case, in response to a request from some of the parties in the case. She tells me that asked parties about the recusal rather than simply do it, because she had a duty to perform her job if she thought she could do so impartially or unlesss others objected. They have objected, so she recused, she said.

She couldn't remember precisely when the job-offer discussions began relative to activity in the case, but said the offer was "recent." She said it was important to note in the context that AECC was a nonprofit and she viewed her job change as a continuation of working "in the public interest."

Said Hochstetter:

“I’ve done a lot to keep costs from going up in state, advocating against things that raise our rates. I’ve worked my heart out doing those things. … And I will continue to do that.”

She said she’d be working in strategic planning and policy planning. Would she appear before the PSC? “I will comply with all laws and ethical requirements. I am an attorney that enjoys this career field. I take the public interest seriously. I have no intention of doing anything not in that interest.”

She declined to discuss her feelings on coal-fired power plants.

She said she did not resign immediately because she wanted to complete her current work assignments, none of which, she said, have any relationship to her employer. At least it doesn't now that she's recused from the case in which her future employer will have an interest.

By law, she can't appear before the PSC for a year.

Comments

Don't worry. Paul Suskie will address this issue. He won't stand for this.

Posted by: ItsWorseThanYouThink | August 7, 2007 10:41 AM

Is it to late for "we the little people" to reply, if not... does anyone have info on who and where we might weigh in on this?

Posted by: Eureka Springs, AR | August 7, 2007 10:53 AM

You know things are bad when 'they' display arrogance of this magnitude. NO she can't continue to screw the public she's supposed to be serving. Good god. (Such is the example sent down from Monkeyboy's House.)

Posted by: zelda | August 7, 2007 10:55 AM

Max,

We never would have known; at least not until it was much too late. Thanks for bringing this to everyone's attention. Please keep us updated...

Posted by: Basil | August 7, 2007 11:01 AM

It's not just the Arkansas way. It's the Texas way, the Mississippi way, the Missouri way, the Alabama way, etc. etc. at least from what I read in the papers around the region. Maybe it's the American way, or the selfish human being's way the world over, until somebody steps up and points it out. Keep up the good fight, Max.

Posted by: jimmyboy | August 7, 2007 11:06 AM

By the way, can you give us the return email address to Ms. Hochstetter so we can reply that we object and thus she will recuse?

Posted by: jimmyboy | August 7, 2007 11:08 AM

I like that she waited until 48 hours before the final hearing on this to make this known. It will be no trouble at all to get a special commissioner up to speed between now and then.

Posted by: seriously?! | August 7, 2007 11:21 AM

You might try SANDRA_Hochstetter@PSC.STATE.AR.US and see if that works.

Posted by: ARKDEMOCRAT | August 7, 2007 11:24 AM

For starters, here's the e-mail address for the Secretary of the Commission:
socmaster@psc.state.ar.us

and one for consumer issues:
consumerissues@psc.state.ar.us

I'd think the first one is the best one for now, short of one for Sandra herself or PSC chairman.

Posted by: Quapaw | August 7, 2007 11:24 AM

sandyh@psc.state.ar.us

Posted by: Earl | August 7, 2007 11:54 AM

Hello!.......We should have been marching in the streets the day Huckabee appointed this energy whore to the PSC. Sandra Hochstetter isn't going BACK to work for a big energy company, she's been working for them for years. It's like hiring the founder of NAMBLA to head up the Head Start program.

It's time we realize that big energy, big oil, big gas...whatever you want to call the 8 headed beast is the real power in the world. Cheney is killing our kids as I type to steal oil and nothing more. The US plan is a complete takeover of the Middle East to keep our Hummers humming for another 100 years. We're raped repeatedly by Big Energy. Sandra Hochstetter is the face of Big Energy in Arkansas and how many years has she been in LR deciding for the giant utility companies against the people of Arkansas.

It was a screw deal from day one and if she's willing to be this public now....you can bet we're going to get a FK'ing in the future that will cross our eyes. If you want to know a real good reason we're always 49th look at Sandra Hochstetter. If you want to be sure our State Government is hiding in her panties.....watch and see what Governor Beebe does about this. Nothing will happen because everyone in Arkansas government is on the Big Energy tit. Forget the Taliban.....Sandra Hochstetter and the legislators she has in her panties are our real enemies.

Posted by: Deathbyinches | August 7, 2007 12:03 PM

I agree that this is abhorent and really calls her past decisions into question but it's clear from her e-mail that the "any party" reference meant an objection from the other Commissioners or their Counsel. Even though they should be, I doubt that objections from the general public will be acknowledged or considered.

Posted by: Wyle E. Coyote | August 7, 2007 12:04 PM

Damn!!!!!!!!!!!!!!!

Not to steal the first poster's tag but, IT'S WORSE THAN ITHOUGHT!!!!!!!!!!

Posted by: Citizen home | August 7, 2007 12:04 PM

We have ethics in Arkansas Guv'mint?

Coulda fooled me...

Posted by: Up The Road | August 7, 2007 12:05 PM

Thanks to everyone who listed email info. I sent a simple email demanding Sandy step down today to every email address listed in your comments.

Posted by: Eureka Springs, AR | August 7, 2007 12:12 PM

Almost instant reply to my email from Sandy..

Thank you for expressing your thoughts. My recusal was just filed in this docket moments ago.

Sandy Hochstetter

Posted by: Eureka Springs, AR | August 7, 2007 12:19 PM

The first line of the letter states "I HAVE RECENTLY ACCEPTED AN OFFER OF EMPLOYMENT".

How recently?

When did discussions begin and who first approched who?

Posted by: Citizen home | August 7, 2007 12:44 PM

As NY Jets running back John Riggins once said to another Sandra (Chief Justice O'Conner), "Lighten up, Sandy baby!" Sandra H. did the right thing in recusing. It just took longer than it should have.

Posted by: Quapaw | August 7, 2007 01:01 PM

There was only one reason she was still hanging around. I think that's pretty obvious now.

Posted by: Basil | August 7, 2007 01:07 PM

I don't disagree with DBI often but I will have to on this one. The perception early on was that Hochstetter was in the pocket of Entergy and ARKLA but her record does not refelct any favortism toward them. Matter of fact, it is just the opposite. Don't believe me, ask Hugh McDonald, CEO of Entergy. If an analysis of her entire body of work was conducted, an open minded person would conclude that she has been balanced and fair. Quick fact, the PSC commissioners are directed by state law to balance the public interest between the companies and ratepayers. It is the sole job of the AG to advocate on behalf of ratepayers. Hochstetter while not perfect has been a good, solid commissioner. Let's hope her replacement conducts herself as well.

Posted by: mouthinfreely | August 7, 2007 01:33 PM

It's hard to imagine what levels of corruption actually EXIST in the government...it's sickening. Business as usual...

Posted by: jeremiasx | August 7, 2007 01:49 PM

Is it any wonder that within a 45 min drive from NWA you will find Okla rates on telephone, gas, electric about 25-40% lower than Ark.

Who appointed Sandy?

"She said it was important to note in the context that AECC was a nonprofit and she viewed her job change as a continuation of working "in the public interest."

Oh yea. Whose public interest? And what about those salaries at AECC, the non-profit.

Posted by: Lwood | August 7, 2007 02:04 PM

Why is this fox in the hen house any different than John Walker pushing his accountant as internal auditor of the Little Rock School District? Why is this different than the Pulaski County Government authorizing illegal property tax increases? Why is this any different than Pulaski county housing bond issues that benefit only bond daddies/lawyers? Why is this any different than public money used to influence public debates/referendums. There is something seriously wrong with the culture in this town oh Arkansas's Newspaper of politics and culture.

Posted by: charlie parrot | August 7, 2007 03:57 PM

Jim Argue tried to warn us about her. Why isnt Jim in the US Senate?

Posted by: Sanford | August 7, 2007 07:09 PM

>>Jim Argue tried to warn us about her. Why isnt Jim in the US Senate?<<

Sanford, if Senator Argue would announce I would mail a check. I think this
many years of ultra conservative rule of our U.S.Senate seats is enough. Time
for a voice from the people, if that's ever possible with U.S. senators.
.

Posted by: Lwood | August 7, 2007 09:38 PM

We live in a Republican era where the fox is put in charge of the hen house. Check all over and you'll find people who used to be the bad guys plucked out and placed in charge of operations they formerly tried to do in. Hiring the head lawyer for one of the largest energy companies around to head up the Public Service Commission stinks and would stink if it was Jesus's mother.

Look at the EPA, look at PBS and NPR, the FDA, FEMA........look all over.....Bush appointed foxes running the store....stores. Black is not white.....up is not down...you don't hire a bad guy and suddenly get a good guy. Don't hire a rapist to give rape counseling. Don't hire a bank robber to guard the vault. Don't hire the Devil to play Jesus at the Passion Play. There are 3 million people in Arkansas, 2,752,629 to be exact. You can't tell me out of all those people the only person Huck could find to put at the PSC was the head lawyer for a giant utility company.

I'll never believe that Sandy Hochstetter changed her stripes out of care and concern for the other 2, 752, 628 of us.

Posted by: Deathbyinches | August 7, 2007 11:39 PM

Hochstetter should resign TODAY!! If she doesn't, the PSC Chairman Paul Suskie should ask her to resign TODAY! This is absolutely INSANE and UNETHICAL that she would stay a day longer at the PSC and be engaged in other utiility matters before the Commission. I read this morning that her departure date is "in a month or so." WHAT??

The public has a right to know when these negotiations for her new high-paying job with the Co-ops began?? The Co-ops know the date. Hochstetter knows the date. They should be forthright and tell the public when the first conversation took place. Sandy Hockstetter came into the PSC with an ethically challenged reputation. She will leave with the same tarnished reputation. But hopefully she will leave TODAY! This is the worst!

Posted by: OneVoice | August 8, 2007 08:28 AM

Once a whore, always a whore

Posted by: UncleEarl | August 8, 2007 08:51 AM

Arkansas Blog

Only in Arkansas -- UPDATE

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