Utility regulators scolded the CEO of Arizona Public Service Co. on Wednesday for his company's role in shutting off power to customers who don't pay, funding elections for the company's own regulators and a variety of other issues.

Don Brandt, the CEO of APS and its parent company, Pinnacle West Capital Corp., took many hard questions and a company attorney deferred on many others.

The daylong hearing covered a laundry list of APS controversies, including:

Among the most controversial accusations hurled at the company came from Arizona Corporation Commission Chairman Robert Burns.

Burns suggested APS was carrying out a political plan hatched a decade ago by Jessica Pacheco, now vice president of external affairs for APS. That plan, which was obtained and reported by The Arizona Republic in 2013, suggested drumming up fake controversies at the Corporation Commission to sway public opinion against the regulators.

Burns said many actions by APS "appear to be taken from the Lincoln Strategy Group / so-called Jessica Pacheco political playbook."

In 2009, Pacheco was working for Lincoln Strategy Group, a Tempe-based political-consulting firm.

She and another consultant proposed a plan to Brandt that year to help the electric company improve its relationship with the five elected Corporation Commissioners who set APS rates and policies.

It detailed how APS could create phony grassroots organizations that would put out research showing how Arizona regulators were hurting utility customers.

The plan suggested pushing for voters to either add appointed members to the board or to make the state Legislature the final authority on utility rates. It said eliminating the five-member Corporation Commission would be difficult, as the panel was established by the state Constitution.

Burns detailed a variety of items, including how APS has funded political campaigns for the regulators who oversee the company, which he said appear to come from the plan. And Burns suggested Gov. Doug Ducey was involved in helping APS execute a plan to create controversy at the commission.

"One of the things in the Pacheco plan was to create some disruption at this commission," Burns said.

He said that the state Department of Administration, which answers to Ducey, reached out to the commission in 2016 seeking to assist in the removal of a former director, Jodi Jerich, even though the commission is independent of the ADOA and the governor's office.

"My question is, did the governor know this kind of activity was happening?" Burns said.

Commissioners then hired Ted Vogt, who worked for Ducey, to replace Jerich in 2017.

Burns noted that Ducey appointed Andy Tobin to the commission when another commissioner resigned. Tobin, a close confidant of Ducey, then was elected.

"One of his first acts was a plan to dismantle the commission," said Burns, referencing a proposal from Tobin to shift many of the commission's duties to other state departments. "An out-and-out violation of the Arizona Constitution."

Burns continued, noting that Tobin resigned this year.

"To me, it was a very strange way to go about that process," Burns said, adding that when Ducey named Tobin's replacement, he didn't notify the commission of the nominee or follow the usual swearing-in process.

Burns called that a "show of disrespect."

Governor responds to concerns

Ducey's office said Wednesday it was the first time hearing such concerns.

"Our policy has been to let the commission do its job while we do ours, making responsible appointments when necessary as the Constitution calls for," Ducey spokesman Patrick Ptak said.

"Our agencies have worked with the Commission in the past, and we look forward to working together on ongoing projects," Ptak said.

Burns comments about APS and the Pacheco plan came during his opening remarks, and Brandt did not respond directly to them.

Brandt: 'People around this state love APS'

Brandt focused his own opening remarks on APS policies for disconnecting customers who are late on their bills. He said APS workers are trained to work with their hearts when dealing with people struggling financially.

"We aren’t in the business of disconnecting customers," Brandt said.

Brandt also pushed back against comments from commissioners suggesting APS has a bad reputation.

"People around this state love APS," Brandt said, saying he gets feedback from people from across Arizona. "I go out and the kudos that are thrown at me are kind of embarrassing."

Brandt, 65, has worked for the company for 16 years and recently announced he will retire in December. He will be replaced by Jeff Guldner, a longtime APS executive who was promoted to APS president in November.

On Nov. 15 Guldner will become chairman and president/CEO of the parent company and CEO of APS, its primary subsidiary.

Guldner has served as APS vice president of public policy and general counsel. Before joining APS in 2004, he was a partner in the Phoenix office of Snell & Wilmer, a law firm. He is a Navy veteran.

Sharp words from commissioners

Other commissioners also took a hard line with Brandt.

"Your behavior is that of a kingpin who operates a company to mainly benefit himself," Commissioner Sandra Kennedy said.

"You have in essence created a machine to purchase any and every elected official and defeat anyone in your way," Kennedy said. "To purchase any and every law firm and to bend the purpose of established nonprofits to suit your ends."

Kennedy said it was unprecedented for APS to get involved in commission elections until Brandt decided to do that through the funding of nonprofit dark-money groups.

"You have single-handedly destroyed the reputation of APS, Pinnacle West, and to some extent the Arizona Corporation Commission," Kennedy said.

Commissioner Boyd Dunn also questioned APS' political funding.

"Just because it is legal does not mean it is right," Dunn said.

Reach reporter Ryan Randazzo at ryan.randazzo@arizonarepublic.com or 602-444-4331. Follow him on Twitter @UtilityReporter.