Lawmakers and consumer advocates are urging the state legislature to look at how the state regulates utilities following a $625,000 settlement with a former utilities regulator.Former Indiana Utility Regulatory Commission Chair Andy Zay filed a lawsuit in Marion County court on Aug. 10, claiming his firing in early August was unlawful.In citing reasons for his firing, the state said Zay committed 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.The state will pay $625,000 total for settlement to Zay and his attorneys, records show.It leaves a lot of questions unanswered, said Kerwin Olson, executive director at the Citizens Action Coalition, a consumer advocacy group. I'm disappointed by the outcome. It doesn't solve the issue of did Zay act inappropriately, and it doesn't solve the issue of did the governor improperly meddle in the regulatory process and improperly terminate the employment of Andy Zay?Olson said the settlement is also a slap in the face to ratepayers who can't afford their bills."You have to feel for ratepayers out there, and not only are they struggling to pay, you have people in Northwest Indiana going without power for two weeks now," said Olson. Zay alleged in his lawsuit that the governors office pressured Zay concerning the AES rate case.Neither the governors office nor former Commissioner Andy Zay admitted any wrongdoing.Yet, they significantly compensated the individual which they terminated, said Olson. Its all it's all a little bit confusing, and hopefully the legislature is the one that takes a look at the statutes that govern how the how the how the governor appoints our regulators.Indianas I-Team asked the Governors office which pot of money it will use to pay the $625,000 settlement, and we are still waiting to hear back.It's a shame that the taxpayers are going to have to pay this money when it otherwise shouldn't have, said Rep. Matt Pierce, D-Bloomington. What the Governor needs to remember is that the utility commission operates under the laws passed by the General Assembly. So, if he doesn't like the decisions that the utility commission is making, then he should ask the legislature to change the law to force them to make decisions that are more in the interests of ratepayers.Indianas I-Team also reached out to Republican lawmakers and we are still waiting to hear back.There's a false narrative being perpetrated that the IURC can dictate utility policy, and they can't, Rep. Carey Hamilton, D-Indianapolis, said. They are just there to be the judge of the laws we put in place as a legislature. She is calling on the Governor to put pressure on the legislature to change laws related to utilities.It is up to him to be a leader and say to his party that's in control, it's time for us to reverse some of those policies we've put in place that are leading to skyrocketing rates across Indiana, Hamilton said. Voters need to understand what their legislators support when it comes to utility policy, because that's where the rubber hits the road. It's not with the IURC.The settlement includes $485,000 in payments to Zay that were described as the reasonable net present value of the remaining salary and benefits if Zay had served through March 31, 2030.March 31, 2030, is when Zays term as one of the five IURC commissioners was to expire.The remaining $140,000 will be paid to Zay and the Indianapolis law firm Betz + Blevins to cover his legal expenses.Braun said in a statement the agreement was mutual.I am pleased that we have been able to reach a resolution. This agreement allows all involved to move forward constructively in the best interest of Hoosiers, Braun said in a release. 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 his lawsuit, Zay asked to be reinstated at the IURC. However, that will not happen as part of the settlement.Zay provided the following statement:The Indiana Utility Regulatory Commission performs important work on behalf of all Hoosiers, balancing the affordability of services needed by all citizens, as demonstrated recently by the historic flooding, against the costs for maintaining and supplying those services.Im 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.I am disappointed that I will no longer be directly involved in this important work, but I believe resolution with the State is in everyones best interest at this time. I appreciate Governor Brauns willingness to reach satisfactory terms so that we can all move forward in a positive direction. ...read more read less