EMBATTLED ARIZ. COMR. IRVIN REJECTS PLEAS TO QUIT

Irvin also urged state legislature to hold off on any impeachment move until he had exhausted his court appeals, which could take years. He can’t be summarily fired because verdict against him was civil case, not criminal. He was reelected in Nov., several weeks before jury verdict was reached.

In written release issued after his swearing-in, Irvin said he did nothing improper and likened himself to notables from Ariz. history who “stood up against powerful corporate interests… but paid a terrible price -- their reputations were assailed and their integrity attacked.” He said those who had asked him to “do the right thing” and resign didn’t really understand duties of state regulators: “The ‘right thing’ to do is what I have done for the past 6 years and will continue to do for the next 4 years --stand up for and defend the interests of Arizona’s consumers against those who seek unreasonable benefits at the expense of Arizona’s citizens.”

In vowing to fight impeachment, Irvin said state legislature had more important matters to consider and should allow civil case against him “to run to completion” before considering his ouster. He didn’t elaborate. If Irvin quits or is removed by legislature, Napolitano must appoint another Republican to serve until next statewide election in 2004.

Irvin took first step on appeals road as his attorney, Michael Sillyman, asked U.S. Dist. Judge Roslyn Silver, Phoenix, to overturn jury’s verdict on ground that it was contrary to evidence and reflected passions that prejudiced jury against Irvin. Alternatively, attorney said court should reduce $60 million punitive damage award because amount was legally unjustifiable in light of jury’s award of only $400,000 in compensatory damages. Jury had concluded Irvin took illegal actions in 1999 that undermined Pa.-based Southern Union’s offer to acquire Southwest Gas of Ariz. Jury said its damage award would have been much lower if it could have ordered that Irvin resign.

Jury concluded that Irvin’s actions raised fears among Southwest Gas officials of extra regulatory difficulties if they accepted Southern Union’s offer, thereby giving unfair advantage to rival Okla.-based bidder OneOK. Southwest accepted OneOK’s offer but merger deal subsequently fell apart. Southern Union sued Irvin, his chief staff assistant Jack Rose and Southwest Gas and OneOK after its bid was rejected. Rose ultimately settled with Southern Union for $75,000 in damages, paid by state, with state also paying his $1.5 million in legal fees. State was liable for payment because settlement was civil matter, not criminal, and Rose was state employee. Southern Union also settled with Southwest Gas for $17.5 million and with OneOK for $5 million. But Irvin’s case was fought to bitter end. His legal fees to date are just over $2 million, which state may have to pay along with judgment. Appeals could double legal fees.

Irvin also faces state and federal criminal investigations, plus libel suit brought by aide to former Comr. Tony West in connection with Irvin’s early denials of wrongdoing in Southwest Gas matter. In criminal probes, state’s prosecutors said they planned to ask that Paul Charlton, U.S. Attorney for Ariz., take sole charge of criminal investigation. They said state faced budgetary concerns and legal question whether its criminal laws would apply because many Irvin actions cited in civil case involved trips and communications across state lines.

In addition to Irvin, Mon. also saw swearing-in of 2 members elected in Nov. to fill 2 additional commission seats created by voters in 2000 referendum that expanded agency to 5 members from 3 and allowed members to serve successive terms. New members are Comrs. Jeff Hatch-Miller and Mike Gleason, both Republicans. They join sitting Comrs. William Mundell (R) and Mark Spitzer (R).