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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowAES Indiana has threatened to take legal action if a state regulatory board make moves that lead to a reduction of a previously approved rate hike as a former commissioner’s spot on that board remains in dispute.
Consumer advocates have requested that the Indiana Utility Regulatory Commission, or IURC, reopen the case involving its recent decision to allow AES Indiana to raise its electric rates.
But in filings submitted on Wednesday — two days after former IURC Chair Andy Zay sued Gov. Mike Braun for firing him in early August — the utility argues that the allegations in Zay’s complaint, if true, would invalidate actions that occur while Zay’s replacement sits on the board.
“Should any action be taken [on the requests] that diminishes the relief to AES Indiana granted by the June 17 Order’s settlement approval, legal and other issues raised by the Zay Complaint allegations would necessarily have to be addressed in any judicial review proceedings then initiated by AES Indiana,” the filings say.
Zay’s lawsuit, filed in Marion County Superior Court, alleges that the Braun administration did not show cause when it fired Zay, a former state lawmaker. And the suit accuses the Governor’s Office of engaging in prohibited conversations with Zay about a case in which AES Indiana is seeking a rate increase.
Zay has asked the court to immediately reinstate him to his role on the IURC, to which Braun appointed him in January. Zay’s suit also asks a judge to remove Josh Bain, who was appointed last week to replace him.
Initially, Braun named Zay to chair the utility commission, but removed him as chair after Zay voted to approve a $71 million rate hike for AES. Then, on Aug. 3, Braun fired Zay from the commission.
Zay’s firing came shortly before the IURC was set to consider a motion to reopen the AES rate case, which the IURC approved 3-1.
The commission was expected to consider a petition for rehearing last week brought by the state Office of Consumer Counselor, or OUCC, and Citizens Action Coalition, but the issue was removed from the agenda after Zay was fired.
Instead of a rate hike, consumer advocates were seeking a rate decrease of about $20 million from base rates.
Braun publicly scolded the IURC after its June vote and supported the request for a rehearing from the OUCC.
IURC Chair Anthony Swinger told reporters last week that he removed that item from the agenda because there was not a three-person consensus on a decision. Swinger, who had been involved in the case while working for the consumer counselor’s office, said he had been “walled off” from the IURC case.
Commissioner David Veleta, who also voted in favor of the hike, announced his plans to resign from the IURC shortly after Braun’s statements on the AES vote. Veleta is set to be replaced by Joby Jerrells, chief counsel of the advisory division at the Indiana Office of the Attorney General.
So unless Zay is reinstated, two of the three commissioners who voted in favor of the rate hike will be off of the IURC by Sept. 8, which is the deadline for the agency to decide whether to reopen the case.
AES Indiana did not immediately respond to IBJ’s requests for comment.
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