Who ordered spying on Southern Co. CEO? Investigation into Alabama Power’s possible role inconclusive: WSJ

Who ordered spying on Southern Co. CEO? Investigation into Alabama Power’s possible role inconclusive: WSJ

An internal investigation into the 2017 surveillance of a Southern Company executive has not been able to determine who ordered the operation or why, according to The Wall Street Journal.

In a report published Wednesday, the paper cites sources saying the investigation, which rose following a lawsuit involving members of a political consulting firm, has ended.

“Upon learning of the alleged surveillance of a Southern Company executive, we immediately engaged external legal counsel who conducted a thorough investigation and were unable to substantiate that Alabama Power Company or Southern Company authorized these highly inappropriate activities,” an Alabama Power spokeperson said in a statement this morning to AL.com.

“We have moved forward, remaining focused on providing reliable electric service to 1.5 million homes, businesses and industries across Alabama.”

Last year, AL.com reported that in May 2017, political consulting firm Matrix hired a Florida private investigator to gather information on associates of Tom Fanning, the then-CEO of Southern Company, the nation’s second-largest utility, which owns Alabama Power.

The information came to light through two separate lawsuits and company documents given to the media. The suits followed a rift between Matrix founder, Joe Perkins, and former Matrix CEO Jeff Pitts.

Pitts moved to subpoena Southern and Alabama Power for surveillance-related documents. Lawyers for the companies then sent a letter to Pitts demanding that he cease making requests or disclosures that would involve the companies. Pitts and Perkins later settled their dispute.

Part of one lawsuit alleged that, at the direction of Alabama Power officials, one consultant ordered surveillance of Southern executives “in order to possibly gain internal leverage.”

The listed “target” of the surveillance was a fitness club owner and then-girlfriend of Fanning, who was surveilled at her work and at Fanning’s home.

The investigator, who filed an eight-page report, billed the company for more than $6,800 for four days’ work. According to the Journal, Southern Co. stated it found “no indication” that the company or its subsidiaries paid for the surveillance operation.

Fanning, 66, retired last month from Southern Company but remains Southern’s executive chairman. Mark Crosswhite retired in December after eight years as leader of Alabama Power.

According to the Journal, Crosswhite had been a serious contender to succeed Fanning, but the surveillance allegations and subsequent investigation played a role in his decision to leave, people familiar with the matter told the Journal.

Southern Co. hired attorneys with Atlanta law firm King & Spalding, as well as Birmingham-based White Arnold & Dowd, to perform an internal investigation into the allegations.

In communications reviewed by the Journal, Pitts conveyed to Southern’s attorneys that Perkins consulted with Crosswhite before ordering surveillance on Fanning and his then-girlfriend.

Pitts alleged the move was part of a plan to put pressure on Fanning and the company’s board of directors as they contemplated corporate restructuring.