State utility regulator Irvin resigns

By Howard Fischer
Capitol Media Services
East Valley Tribune
Sept. 24, 2003

State utility regulator Jim Irvin quit just minutes before 5 p.m. Tuesday, halting a three-month impeachment investigation.

In his six-paragraph letter of resignation from the Arizona Corporation Commission, the Scottsdale resident said the ongoing impeachment probe "has been very difficult for my wife and family."

Left unsaid was that Mel McDonald, the special counsel hired by the House to investigate Irvin, had expanded his inquiry to include possible criminal activities that could implicate Irvin's wife, Carol.

But Irvin also blasted the state for refusing to pick up not only his legal fees in a lawsuit he lost last year but also the $60.4 million judgment jurors returned against him. In fact, Irvin's attorneys filed a separate claim Tuesday - the first step before a lawsuit - demanding payment of nearly $580,000 in legal fees as well as the judgment.

The resignation came just hours after House Speaker Jake Flake, R-Snowflake, said he would not agree to let Irvin quit in exchange for immunity, payment of his legal fees or sealing a report on whether Irvin should be impeached.

That report will detail not only charges he misused his office to undermine one company's bid for Southwest Gas - the case that resulted in the jury verdict - but also related issues, including whether Irvin and his wife attempted to introduce fabricated evidence in that trial. There also are allegations of harassing a Corporation Commission employee and interfering in an ACC investigation involving the brother of a campaign worker.

Flake confirmed that Irvin had offered to resign as part of a deal.

It also came less than a week after Maricopa County Attorney Richard Romley rejected offers from one of Irvin's attorneys to resign in exchange for a promise that Irvin would not be prosecuted for any crimes unearthed in McDonald's investigation. Irvin would not respond to questions, but in his letter he said his multiple problems, including appeal of the civil verdict and preparing for what appeared to be imminent impeachment proceedings, had left him no choice.

"I cannot continue to hold public office, expend my personal funds in defense of my actions in office, and pursue my claim (for payment) against the state," he wrote.

That claim is likely to be rejected. Flake noted that U.S. District Judge Roslyn Silver, who presided over last year's trial, rejected Irvin's contention that anything he did to undermine Southern Union's bid to purchase Southwest Gas was in his capacity as a state utility regulator.

Nor is Gov. Janet Napolitano likely to grant his request. Kris Mayes, Napolitano's press aide, called the claim "an outrageous attempt by Irvin to saddle taxpayers for his misdeeds."

McDonald said Tuesday that the expansion of the investigation into the activities of Irvin's wife probably also put pressure on the regulator to resign. "Clearly, the playing field had gone beyond Mr. Irvin," he said.

Irvin professed his innocence to the end.

Just re-elected to a new four-year term, Irvin will be replaced by an appointment by the governor. By law, she is required to name a Republican, like Irvin.

Mayes said several people have already expressed interest, but she would not divulge names.

One likely front-runner would be Peggy Bilsten, a member of the Phoenix City Council who endorsed Napolitano in last year's gubernatorial election despite her GOP registration.

Members of the Legislature are not eligible because of constitutional restrictions. Mayes said she is unaware of any interest in the position among members of the governor's immediate staff.

"There are only two Republicans on the eighth and ninth floors, and I'm one of them," said Mayes, referring to the governor's offices at the state Capitol. "And I'm here to tell you I have not expressed any interest in this job."

The other Republican on the governor's top staff is former state Sen. Susan Gerard, R-Phoenix, but she told Capitol Media Services that she does not want the job.

Two Republicans who have shown a recent interest in Irvin's job are former state Sen. Tom Freestone, R-Mesa, who recently resigned as a justice of the peace in Mesa and Gilbert; and former state Rep. Roberta Voss, R-Phoenix. Voss ran unsuccessfully for Irvin's seat in the 2002 Republican primary.

Tribune writer Mark Flatten contributed to this report.