A Tale of Greed and Corruption In State Politics

Political Influence Buying, the Florida PSC, and Your Electric Bill

This column presents a conservative viewpoint about items of interest in our community and our lives. Focus is on items impacting your pocket book, your personal freedoms, and your rights. I hope you will read the column regularly and it occasionally influences your opinions and actions.

If you are one of those citizens who has been amazed, dismayed, and angered by the doubling or tripling of your home or business electric bills over the past three years, then you should read this article. It describes how and why this has been allowed to happen to you. It is, “The rest of the story”.

There was a story released a few days ago relating to the Nominating Council for the Florida Public Service Commission. The release was generally buried on some back section of many publications, even though it is of great future importance to the public.

The story described some of the strategies currently taken by the nominating processes for seats on the Florida Public Service Commission, which regulates utility rates and supposedly provides protection from monopolistic abuses for the public. During the past year, all five of the then existing commissioners resisted a move by Florida Light and Power and Progress Energy to gain a large rate increase. Instead of merely “rubber stamping” the approval for the increase (as has historically been the case), this group of commissioners denied the increase. Now we see that four of the five are being removed from the Commission as a flagrant political reprisal for daring to defend the needs of the public instead of feeding the profits of the giant utilities.

My direct involvement with the PSC began about three years ago when the Commission came to Marianna to conduct a public hearing on a proposed huge rate increase for our local utility, Florida Public Utilities. During that hearing I addressed the panel, speaking of the assertions that the commission was “too cozy” with the utilities, and the fact that nine of the past fourteen Commissioners who left the PSC had subsequently gone to work for a utility as a lawyer, accountant, or consultant, thus reinforcing the assertions.

I specifically addressed Commissioner Nancy Argenziano who was newly appointed to the PSC after a distinguished career as a State Senator. While in the Senate she had been openly critical of the PSC and the way it functioned. I reminded her of her previous statements about the unfairness of the PSC, and asked if she intended to work to correct these improprieties. She stated that she did intend to work to create a more fair, citizen responsive PSC while she served.

Well, the huge rate increase went through anyway, but apparently Senator Argenziano was true to her word. Her honesty and opposition to the “old way” of doing business on the PSC eventually resulted in her removal by the nominating council, even after she had served as the distinguished Chairperson of the group. Because of these events, I began a quest to determine how the utilities are able to control the composition and actions of the PSC which is intended to regulate them.

A member of the PSC is nominated by the Governor and approved by the Senate Ethics and Elections Committee. The Governor must select the nominee from an eight candidate listing provided to him by the PSC Nominating Council. Thus, it is the Florida Senate which actually controls this part of the process.

The PSC Nominating Council is a 12 member panel comprised of three Senators, three Representatives, and six other members. They are selected equally by the President of the Senate and the Speaker of the House. The current composition of this panel is: Senator Michel Bennett (Chairman) of Bradenton, Representative Dave Murzin (Vice Chair) of Pensacola, Bevin Beaudet of W. Palm Beach, Tracy Chapman of Orlando, Mike Hightower of Jacksonville, Senator Arethenia Joyner of Tampa, Representative Mark Pafford of W. Palm Beach, Gerri McPherson of Vero Beach, Senator Steve Oelrich of Gainesville, Representative Stephen Precourt of Orlando, Scott Thomas of Jacksonville, and John Vogt of Tallahassee. I researched their backgrounds and major campaign supporters, but could find little linkage to the powerful utilities which mysteriously seems to control their decisions.

As I read numerous articles about the shenanigans of the Nominating Council and the PSC, I ran across a remark made by Senator Nancy Argenziano after she was ousted from her PSC seat for voting against the powerful utilities. She stated in an interview, “It is really the Associated Industries of Florida which pulls the strings on the Nominating Council.” This triggered research on this organization.

It seems the AIF is perhaps the most powerful and influential lobbying organization in Florida. Its mission is to foster the interest of the business community in government. The board of directors for the AIF is comprised of Jeb Bush, and a panel of educators, businessmen, artists, and other seemingly non political people. Again I searched for a strong link to the utilities, but found nothing.

Then I noticed that there was an allied organization, the Associated Industries of Florida Foundation. “Aha!” I thought…. “The foundation is probably the controlling element of their funding. Let’s see who is on the Board of Directors of the AIF Foundation”.

The computer screen switched to the listing of the members of the Board of Directors for the Associated Industries of Florida Foundation ……and the first name to appear was the Board Chairman, Mr. Ed Tancer. It listed Mr. Tancer’s credentials as being Senior V.P. and Vice Chairman for Government Affairs for Florida Power and Light!! The connection I had been seeking was now before me.

The system appears to work this way… (1) The Florida Power and Light Board of Directors of which Mr. Tancer is a member decides which politicians are supportive of their desires. (2) Mr. Tancer directs the Board of the AIF Foundation as to which politicians to fund with AIF monies. (3) The funds are used to buy seats on the PSC 12 member Nominating Council. (4) The Nominating Council only nominates candidates which are aligned with supporting the wishes of the utilities. (5) The Senate committee only approves nominees which have the “correct” outlook. (6) The PSC is thus ready to approve all requested utility rate increases….and (7) Your electric bill skyrockets!

We are describing a dirty, politically corrupt system involving billions of dollars in utility revenues and millions of dollars in political influence buying - all at the expense of Florida residents.

As part of this journey I was privileged to have a telephone conversation with former Senator and PSC Chairperson, Nancy Argenziano. She quickly confirmed that the “chain of political influence” which I had defined, with Mr. Tancer as a key link, is the way the system works. “It was my public disclosure of that fact which led to me being ousted from the PSC,” she explained. “It is a terrible, politically corrupt system filled with hidden funding, payoffs, money laundering, reprisals, and influence buying. It is sad to say, but in most instances, unless you are willing to sell your soul and become part of the corrupt system, you will never rise to a position of authority within the Florida political system. Those elected officials who remain honest and pure are relegated to positions of low importance, rendering them ineffective within the political environment. In my opinion…the Florida Legislative process has been bought,” she stated openly.

“We are talking about billions of dollars,” she continued. “I am encouraged by many of my friends and supporters to again run for office, but I am not sure I still have the energy for it. I may try to form an organization to expose and fight corruption and waste within our government. I feel I could do some good in that effort.”

She went on to describe the intricate system of shuffling funding between 527’s, EOC’s, CCE’s, and Leadership Funds. She described how these organizations operate under names designed to hide their real purpose, such as “The Committee for the Greening Of Florida”, or “Social Interaction Committee”, or some other harmless sounding title. Funding is shuffled between these numerous organizations until they finally are properly distributed between intended political entities. It is a system of money laundering and secretive political financing. It is the way political influence is bought. It explains how our politicians are dirt poor when first elected, earn a paltry salary as a politician, yet are worth millions when they leave their post.

Thus the system has chewed up and spit out another honest politician. The PSC is again being loaded with new members who are hand picked by the corrupt system which I have described. We can all expect higher utility rates in Florida’s future.

Rudiments: Odds and Ends Worth Mentioning –

● I applaud the Marianna City Commission for listening to their business community and responding to their requests. (That satisfies the requirement that I always say one nice thing in this part of my comumn.)

● Historians have stated that a Democracy begins to fail when all citizens can vote, and the non-productive elements of the society become the majority. When they discover they can thus gain access to the public treasury and thus loot for their own betterment, the democracy will soon fall. I wonder if accruing a $13,000,000,000,000 (trillions) deficit could be a clue that this is occurring?

● Our health officials are warning of an outbreak of mosquito borne diseases in our area. They are asking folks to be sure no standing water is around their home. They seem to ignore the mosquitoes which are busy breeding behind every commercial building in town in the EPA required retention pond. Because of their foolish requirements we have brought the swamp to the city, and created a public health danger.

● Let me be sure I have things correct. We have 15 million workers unemployed and are continually extending their welfare unemployment benefits…..while we have 15 million illegal immigrants in our country who came here to work and enjoy our welfare benefits. There must be a better solution, can you see what it is?

Note: The opinions stated in this column are solely those of the author and do not necessarily represent those of Hatcher Publications.