Indiana regulators were set to vote Wednesday on whether they should reconsider a contentious $71 million rate increase for AES Indiana customers — but reversed course abruptly Tuesday, the morning after Gov. Mike Braun unceremoniously sacked former regulator Andy Zay.
The governor, meanwhile, declined to elaborate on the firing except to say he disapproved of Zay’s approach to affordability.
New Indiana Utility Regulatory Commission Chair Anthony Swinger said he made the decision to pull the case from the agenda “because there was no consensus among the commissioners.”
“All I know is that we didn’t have three unanimous voices, and because of that, it’s not ready to move forward,” Swinger told reporters, after the commission’s weekly meeting in downtown Indianapolis.
Swinger has recused himself from the case because he worked on it in his previous role at the Office of Utility Consumer Counselor, which represents ratepayers in IURC matters.
“I have been completely walled off from any internal discussions regarding the AES rate case,” Swinger said. “… I have no participation whatsoever in internal discussions or processes.”
He said it’s “not unusual” to pull an agenda item if commissioners aren’t ready to take action. The IURC has until Sept. 8 to make a decision on the petition.
Firing came after demotion, controversial vote
Zay sparked the governor’s ire in June, when he joined Commissioners David Veleta and David Ziegner in a 3-1 tally to approve the rate increase. Commissioner Bob Deig voted in opposition, with Swinger recused from the vote.
The day after, Braun called on Utility Consumer Counselor Abby Gray to submit a petition for rehearing and reconsideration to the IURC, which she filed last month.
Braun also demoted Zay as chair, six months after appointing him to the commission in that leadership position, and elevated Swinger to the post instead.
He fired Zay on Monday — the day the IURC’s original meeting agenda featuring the reconsideration vote was released.
Commissioners are appointed to four-year terms and can only be dismissed “for cause” under Indiana law.
The State Personnel Department has alleged Zay “fail(ed) to file a required financial disclosure after his removal as Chair, improperly award(ed) payments and personal gifts to employees, and direct(ed) staff to alter a public meeting agenda without consulting the new Chair.”
Braun, however, focused on the Zay’s vote to raise rates in comments to reporters Wednesday afternoon.
“Next step would be (that) we’ll find a replacement for Andy, and nothing else to announce there other than I was disappointed that he didn’t take on affordability and holding utilities accountable,” Braun said.
Asked what led to the firing, and if he asked Zay to resign beforehand, he replied, “No, it was from the very beginning, when it was clear I was looking for folks (who are) ratepayer-conscious, and the first thing out of the gate was granting a big increase — and that was not part of the interview. … If you don’t have staff, people working with you in the same mindset, it’s better to find somebody that does.”
The governor, who spoke to reporters after an unrelated event, declined to answer questions on the monetary value of the alleged payments and gifts or why the alleged violations were described as “potential.”
IURC remake
Zay’s seat could be filled within the week.
A nominating committee is scheduled to recommend three finalists to Braun on Thursday afternoon, according to a public meeting notice.
The group of governor-appointed members typically first kicks off an application period, then goes through the submissions before conducting interviews of semi-finalists and then presenting their top three candidates to Braun. But they’ve got a pool of picks left over from last month’s appointment.
Braun in July selected attorney Joby Jerrells to replace Veleta, who announced plans to resign shortly after the AES Indiana vote. Veleta’s last day at the IURC is Aug. 14, with Jerrells starting work Aug. 17.
Zay’s replacement would be this governor’s fifth appointment to the five-member board. Ziegner is the only remaining member appointed before Braun took office in early 2025.
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