Gov. Mike Braun fired Indiana Utility Regulatory Commissioner Andy Zay from his post on Monday — just six weeks after Zay voted in favor of an AES Indiana rate hike and was demoted from IURC chair.
“Zay was discharged from employment with the State of Indiana today, August 3, 2026, for non-adherence to state policies and laws related to his role as Commissioner at the IURC,” agency spokesman Kirollos Barsoum said in an email to the Capital Chronicle.
More specifically, SPD said Zay was dismissed for “multiple potential violations of state policy; including failing to file a required financial disclosure after his removal as Chair, improperly awarding payments and personal gifts to employees, and directing staff to alter a public meeting agenda without consulting the new Chair.”
When reached by phone, Zay only said, “I cannot comment at this time.”
The firing is the latest shakeup to a typically quiet panel of regulators, and could impact a critical vote to reconsider the AES Indiana increase.
Braun first appointed Zay to the IURC — and named him chair — in December as part of the governor’s affordability push. Zay left a seat in the Indiana Senate in January to start the new gig.
In February, he launched an affordability inquiry, questioning the “big five” investor-owned utilities on their rates in March and holding a listening tour for frustrated ratepayers around the state through April.
But in June, Zay joined Commissioners David Veleta and David Ziegner in a 3-1 vote to approve a $71 million rate electricity rate increase for AES Indiana customers. Commissioner Bob Deig voted in opposition, while a fifth member, Anthony Swinger, recused himself from the case.
The amount was less than the $193 million hike AES Indiana originally sought, and below the $91 million proposed in a settlement agreement.
But Braun and Utility Consumer Counselor Abby Gray — who had recommended a decrease to current rates — denounced the decision. Gray’s office represents ratepayers in IURC cases.
Days later, Braun removed Zay as chair and elevated Swinger, a former member of Gray’s office, to the IURC’s top spot.
“I thought I was fairly clear when I said I want you (commissioners) to make sure you’re changing the dynamic, to where you’re not rubber-stamping what utilities have wanted,” Braun told reporters at the time. “… I made the adjustment there in terms of the chairmanship, because I thought that should have been clear.”
The termination marks a rare step for an Indiana governor. IURC members are appointed to four-year terms and can leave voluntarily at any time — but can only be fired “for cause.”
Gov. Mitch Daniels carried out the most recent firing in 2012, when he dismissed former IURC Chair David Lott Hardy for his role in an ethics scandal, The Indiana Lawyer reported. Hardy was aware that an administrative law judge had been communicating with Duke Energy while presiding over its cases, ultimately getting a high-paying job with the utility.
Membership changes could impact AES hike reconsideration
Zay’s not the only one out as a regulator in more recent months.
Veleta announced he would resign from the IURC in late June. Braun selected a successor, attorney Joby Jerrells, in July after a nominating committee winnowed 25 applicants to three finalists.
“I think he could see that it was maybe going to be going in a little (bit of a) different direction,” Braun said of Veleta.
At the governor’s behest, the Office of Utility Consumer Counselor last month asked IURC members to reconsider their approval of the AES Indiana hike. The filing contends regulators “erred” in granting some of the utility’s requests.
The vote on that petition is scheduled for Wednesday, according to a finalized agenda posted Monday.
Jerrells will replace Veleta — who was one of the “yes” votes in June — and Zay’s spot will be vacant.
That leaves Ziegner as the only commissioner remaining who previously voted in favor of the increase.
The nominating committee, meanwhile, will reconvene to help fill its fifth vacancy in less than a year.
Indiana Democratic Party Chair Karen Tallian said “Braun is using Andy Zay as a scapegoat. Braun knew the AES case was being investigated when he appointed Zay. The buck must stop with the governor’s poor judgment. The only commissioner who voted against any recent major electric increase is former Democratic State Senator Bob Deig. We invite Hoosiers to elect more Democratic legislators this November who will put families before utility profits for a change.”
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