From the New York Times

Spitzer Utilities Nominee Started Job While Still an Industry
Lobbyist, Report Finds
By TRYMAINE LEE
Published: February 15, 2008Gov. Eliot Spitzer's nomination early last year of a top energy
industry lobbyist as chairwoman of the Public Service Commission
created a number of ethical problems, the state inspector general,
Kristine Hamann, said in a long-awaited report on Thursday.
The nominee, Angela Sparks-Beddoe, started assuming official duties at
the commission, which oversees utilities, while she was still working
for a utility, Energy East, and had not been confirmed by the Senate,
the report said.
It found that before she had the authority to do so, Ms. Sparks-Beddoe
began making clear to employees at the Department of Public Service
whom she would fire or demote. Two of those she took aim at had been
involved with Energy East in the past.
Ms. Sparks-Beddoe withdrew her nomination in June.
The report called on the Commission on Public Integrity to review the
conduct of three Public Service staff members who had had meetings
about their jobs with Ms. Sparks-Beddoe. One of them was an
administrative law judge handling a case involving Energy East when
she met with the nominee.
During several meetings with department officials, Ms. Sparks-Beddoe
was also provided with several documents marked "confidential,"
despite her continuing employment with the utility, according to the
report.
Steven Mitnick, Mr. Spitzer's top energy aide, arranged meetings
between Ms. Sparks-Beddoe and employees, according to the report,
which called his actions inappropriate.
Mr. Mitnick "encouraged meeting participants to discuss topics that
created ethical problems for all parties involved," the report said.
"The public confidence could be affected by the knowledge that these
senior D.P.S. officials were discussing promotions contingent on the
continued favor of an executive of a regulated utility."
Mr. Mitnick told investigators for the inspector general that he was
simply being "too nosy, too overbearing."
One employee Ms. Sparks-Beddoe signaled she would fire was an ethics
officer who had questioned whether she could act fairly as
commissioner given her ties to Energy East. Another was a director who
had played a key role in a rate dispute between the agency and Energy
East.
Ms. Hamann's report found that Ms. Sparks-Beddoe's actions violated no
laws but were inappropriate. And since she was never confirmed, she is
not subject to the ethics regulations that apply to state officials.
Ms. Sparks-Beddoe did not return a phone call to her home on Thursday.
The report was based on two investigations that involved Mr. Mitnick,
who was the governor's top aide for energy and telecommunications
until he resigned in September.
Last spring, Mr. Mitnick was accused by a Public Service Commission
member, Cheryl Buley, an appointee of Gov. George E. Pataki's, of
threatening her with the loss of her job if she failed to go along
with Mr. Mitnick's approach to a Con Ed investigation.
The report found that Mr. Mitnick had been overeager to clean house at
the commission. But it also said that while he clearly thought Ms.
Buley was unqualified, and had requested her resignation on numerous
occasions, that was unrelated to the Con Ed investigation.
"Although some of Mitnick's actions were offensive to Buley, these
same actions were clearly within his authority," the report said.
People interviewed for the report described Mr. Mitnick as "brash" and
"heavy-handed" but said he had nonetheless conducted himself
"professionally." Ms. Buley's colleagues told investigators they did
not believe her claims against him.
Diane Burman, Ms. Buley's former assistant, testified that Ms. Buley
liked to "stir the pot."
Ms. Buley said in a telephone interview that she was moving on.
"The report has some inaccuracies," she said Thursday afternoon.
"It's good to have it behind us," she added. "We have important work to do."
Mr. Mitnick said he felt vindicated. "It's good to look ahead. It's
like I'm Eli Manning," he said. "They doubted me in a couple games,
but I blew out the favorites."
Republicans swiftly condemned the report. The inspector general's
office has been criticized for not being aggressive enough in
scrutinizing the Spitzer administration.
A spokesman for the Senate majority leader, Joseph L. Bruno, called it
"a whitewash," while George H. Winner Jr., the chairman of the Senate
investigations committee, did not rule out having the committee review
the case.
But the Spitzer administration said it was pleased to have the matter resolved.
"The inspector general's report makes clear that incoming
administrations are permitted — and in fact expected — to bring new
leadership to government agencies," Errol Cockfield, a spokesman for
Mr. Spitzer, said.
He would not comment on Ms. Sparks-Beddoe's case since it has been
referred to the Public Integrity Commission.