Former Indiana Utility Regulatory Commission Chair Andy Zay’s lawsuit against the state and Gov. Mike Braun was short-lived.
On Saturday, Braun and Zay announced in a statement that they reached “a mutually agreeable settlement” in the lawsuit filed Aug. 10 in Marion Superior Court. Details of the settlement are not yet available, according to online court records, as the case is still pending.
“I am pleased that we have been able to reach a resolution,” Braun said in his statement. “This agreement allows all involved to move forward constructively in the best interest of Hoosiers. I want to recognize Andy for his service to the state. Public service is demanding work, and I appreciate his contributions over the course of a decade on behalf of Hoosiers.”
In addition to Braun and the state, Zay also filed the lawsuit against Matthew Brown, director of the Indiana State Personnel Department; Steve Carter, deputy counsel for appointments for the governor’s office; Joshua Bain, new member of the IURC; and Suzanne Jaworowski, state secretary of energy and natural resources.
According to Post-Tribune archives, Zay originally asked the court to find his firing was “unlawful and without legal effect,” alleging that he was let go without cause. Zay was seeking immediate equitable relief and asked to be reinstated as commissioner while it was determined if his removal complied with Indiana Code.
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In his statement, Zay said the IURC performs “important work” on behalf of all Hoosiers.
“I’m proud to have been involved in addressing these issues during my time on the Utilities Committee in the Indiana Senate and later as Chair and Commissioner of the IURC,” Zay said. “I am disappointed that I will no longer be directly involved in this important work, but I believe resolution with the State is in everyone’s best interest at this time. I appreciate Governor Braun’s willingness to reach satisfactory terms so that we can all move forward in a positive direction.
The State Personnel Department has accused Zay of several “potential violations” of state policy, according to the Indiana Capital Chronicle, but he alleges the firing was about his vote to support an AES rate increase “and for control over what happens next.”
The IURC, in June, voted 3-1 to approve a $71 million electricity rate increase for AES Indiana customers, according to Post-Tribune archives. The approved rate increase was about 37% of what was initially requested and lower than a settlement agreement proposed in October.
According to Post-Tribune archives, Braun removed Zay as chairman at the end of June, appointing Anthony Swinger as its next leader. Zay, at the time, was to stay on the commission, but Braun dismissed him from the role on Aug. 3.