Bill Gallagher, the Republican candidate for District 5 on the Public Service Commission, is firing back at his opponent, Ken Toole, questioning whether stocks held in various mutual funds owned by Toole represent a conflict of interest for being “regulated or of keen interest to the PSC.” Toole, the incumbent and a Democrat running for a second term, has made in issue in the hard-fought campaign of Gallagher’s partial ownership of a small Helena-area water utility and a related Nevada corporate entity.
I reported on the race earlier this month. In a nutshell, Toole says Gallagher’s investment in a complex corporate entity would make him less inclined to side with consumers when facing decisions related to utilities on the PSC. Gallagher is now saying Toole faces those very same questions given some of the stocks in his mutual funds where Toole has invested.
“I am still a private citizen and am not currently restricted in my investment decisions. But, if elected, I simply divest myself of any conflicting holdings or shares and recuse myself from any matter involving AquaFlo. It’s that simple,” Gallagher said in a Sept. 22 press release. “Toole, on the other hand, has, for four years, been reviewing and making decisions on multi-million dollar contracts and rate requests that ultimately have an impact on his own personal net worth. That is absolutely inexcusable. Talk about the fox in the henhouse!”
Lee’s Mike Dennison reported on the jabs between PSC candidates last week, where Toole had this to say, in response:
“I think what you’re seeing here is a desperate campaign,” Toole said. “He’s just kind of flailing and trying to get free media.”
Toole said that while some mutual funds he holds may have shares of stock in regulated companies, he doesn’t follow closely what stocks are owned by his mutual funds and certainly doesn’t consider them when deciding cases before the PSC.
Toole noted that one of his mutual funds owns shares of Qwest, the telephone giant against which he filed a complaint that led to a multimillion-dollar rate reduction for the company. “I have a clear record of not favoring Qwest,” he said.
That Qwest issue is timely, since the PSC is holding a hearing in West Glacier Wednesday evening over CenturyLink’s ongoing acquisition of Qwest, which requires PSC approval. Here’s the info on the PSC hearing tomorrow, which I plan to cover:
Changes could be coming soon to CenturyLink and Qwest customers and the Public Service Commission (PSC) is meeting Wednesday in West Glacier to gather information on the topic from customers and the companies. The Louisiana-based CenturyLink is planning to acquire Qwest Corporation but needs approval from the PSC to do so. The September 29 meeting begins at 7:00 pm in the West Glacier Elementary School Gymnasium at 160 Old River Bridge Road. Representatives from both companies will be at the meeting to discuss the merger plan, and the public will have the opportunity to comment.
“This meeting in West Glacier is a perfect opportunity for the public to let us know how they feel about phone service in the West Glacier area,” PSC Chair Greg Jergeson said. “Every one of Qwest’s 217,000 Montana customers, and CenturyLink’s 50,000 Montana customers, will be affected by this PSC vote; public input is essential to our reaching a sound decision.”
Those wishing to submit electronic comments can do so at http://psc.mt.gov/Consumers/comments/. Hard copy remarks can be sent to the Commission at PO Box 202601; Helena, MT 59620-2601.Detailed information related to the proposal can be found under Docket D2010.5.55 on the PSC website, http://psc.mt.gov/eDocs/eDocuments/ . The PSC is holding a contested case hearing on the issue November 22-23, and anticipates making a decision by the end of the calendar year.
Made up of 5 elected commissioners, the PSC works to ensure that Montanans receive safe and reliable service from regulated public utilities while paying reasonable rates. Utilities regulated by the PSC generally include private investor-owned natural gas, electric, telephone, water, and sewer companies. In addition, the PSC regulates certain motor carriers, and oversees natural gas pipeline safety and intrastate railroad safety.