Pursley (Image: Lincoln Journal Star)

The executive director of the Nebraska Public Service Commission, under an ethical cloud in some circles after revealing he has a part-time job with a consulting firm representing some of the state’s largest telecom companies, quit his $150,000 a year public service job at the PSC rather than give up working for the telecom industry.

Jeff Pursley denied his employment with Washington D.C. consulting firm Parrish, Blessing, and Associates would interfere in any way with his regulatory and oversight duties, even though the firm counts among its clients Windstream, a phone company that provides service in Nebraska. Several lawmakers, consumer groups, and government ethics groups strongly criticized the apparent conflict of interest, even though the state’s Attorney General’s office ruled the outside employment alone did not rise to representing illegal or unethical behavior.

A written ruling from Nebraska Attorney General Douglas Peterson issued in mid-May seemed to let Pursley off the hook, declaring that since he primarily consulted with out-of-state telecom companies including Alaska Communications Systems and two phone companies in the Caribbean, there was no conflict. Nebraska’s Accountability and Disclosure Commission didn’t think there was a conflict of interest either, at least under the Nebraska Political Accountability and Disclosure Act, which seems concerned primarily with getting politicians to voluntarily disclose potentially ethically questionable conduct instead of steering clear of it. But further exploration of Pursley’s financial statements revealed a disturbing connection with Blair, Neb.-based Great Plains Communications, the state’s largest independent phone company, serving 89 rural communities and under direct regulatory oversight by Nebraska’s PSC. The phone company donated “in excess of $1,000” to Mr. Pursley, but exactly how much isn’t revealed.

Despite protesting he had done nothing unethical, all five commissioners at the state telecom regulator demanded he choose one employer or the other by July 1. Late last week, Pursley announced he would choose his job with the telecom industry over continuing to serve as executive director of the state’s chief telecommunications oversight agency.

Pursley released a statement claiming moral high ground over his decision.

“I am very proud of what I accomplished during my tenure as executive director,” he wrote in prepared statement. “This is an issue of integrity, and at the end of the day, a person is defined by their integrity.”

Nebraska’s Public Service Commission has an undistinguished record protecting the interests of the state’s consumers. It is also an oddity, because Nebraska’s PSC was originally charged with regulating the railroads that passed through Nebraska. In the early 1970s, its mandate and name was changed to oversee a range of businesses well outside of public utilities, including railroads, household goods, oil pipelines, passenger carriers, grain warehouses and mobile home construction. Commissioners are directly elected by the voting public, despite the fact few Nebraskans are fully aware of what the PSC does. Many run unopposed or face token opposition, but still raise significant campaign contributions. Critics, most notably Common Cause, are particularly upset by the large number of retired politicians that serve as commissioners and the fact most have raised substantial sums from the state’s largest telecom companies and their top executives.

A review of campaign funding disclosure documents confirms the state’s telecom companies are substantial contributors to the commissioners’ campaigns. PSC Chairman Tim Schram raised tens of thousands from “unitemized donors” that have gone undisclosed, but several telecom companies did make the donor list, including Cox and Great Plains Communications.

Nebraska’s PSC is considered pro-business and usually stays out of the headlines. It is considered very friendly towards the interests of the companies it oversees and asks little of them in terms of regulatory conduct. The Commission is currently spending much of its time holding public hearings regarding the controversial Keystone XL Pipeline after the Trump Administration breathed new life into the project and has also been busy warning consumers about potential scams regarding energy company choice.

Pursley will leave the PSC effective June 12. His position is not expected to be filled immediately and the work will be managed by staff until a new leader can be hired.