INDIANAPOLIS, Ind. (WOWO) — Former Indiana Utility Regulatory Commission member Andy Zay is disputing allegations that he improperly used campaign funds and is questioning whether his removal from the commission was connected to a dispute over a major AES Indiana rate case. Zay told the Indiana Ca pital Chronicle he believes his firing was part of an effort to change the makeup of the five-member commission as it considered whether to reconsider a $71 million electricity rate increase for AES Indiana. Zay previously voted with two other commissioners in approving the increase. Zay was appointed to the IURC by Gov. Mike Braun and later removed from the commission after Braun criticized the rate decision and called for it to be reconsidered. The Office of Utility Consumer Counselor subsequently sought reconsideration or rehearing of the case. Zay filed a lawsuit challenging his removal, arguing that Indiana law allows commissioners to be dismissed only for cause. The state and Zay later agreed to a $625,000 settlement without either side admitting wrongdoing. The agreement provided $485,000 in pay and benefits and $140,000 for legal expenses, according to the Indiana Capital Chronicle. “I never would have done anything to embarrass the administration, the (Indiana Utility Regulatory Commission), the work that we were doing,” Zay told the Capital Chronicle. “They were on a big fishing expedition to move myself on, to get somebody in that would vote for the appeal, and I think that played out very publicly.” A spokesperson for Braun disputed Zay’s characterization and criticized his record in response to the interview. The dispute also centers on about $3,000 in campaign spending that Braun’s legal team alleged was improper. The administration alleged Zay used campaign funds to purchase energy-themed ties and scarves bearing his initials and distribute them to IURC staff members after he left the Indiana Senate. Zay said the purchases were made before he left the Senate and before he began working at the IURC. He provided the Capital Chronicle with a credit card statement showing the purchases occurred before his January start date at the commission. Zay said he had been designing custom ties and scarves for years and had ordered the items while he was still a state senator. He said 50 ties and 50 scarves, worth about $30 apiece, were made available as surplus campaign material. He also pointed to other campaign-related financial activity around the time he left the Senate, including a $15,000 contribution to a Braun-aligned campaign fund. Zay said that contribution was intended in part to demonstrate that he supported Braun after accepting the IURC appointment. The timing of Zay’s removal became a central issue in his lawsuit. Zay said the IURC had been preparing to consider a denial of the request to reconsider the AES Indiana rate decision. He said the commission published its agenda Monday, the governor learned of it around noon and Zay was fired at 3:35 p.m. “I feel it’s greatly compromised now,” Zay said of the commission. “I think they are beyond the … mission of the IURC, they’re beyond statute with the political influence.” The IURC is an administrative agency responsible for deciding utility cases based on evidence presented in proceedings. The commission regulates rates and services for utilities under its jurisdiction, while the Indiana Office of Utility Consumer Counselor represents the public in those cases. The AES Indiana case remains active. The IURC approved a settlement involving AES Indiana in June, with the Office of Utility Consumer Counselor subsequently seeking reconsideration and rehearing. The commission later agreed to reconsider the case. The commission scheduled a prehearing conference and preliminary hearing for Sept. 17 in the AES Indiana case. The proceeding is identified as Cause No. 46258. Zay said he agreed to the settlement of his lawsuit because continuing the legal fight would have required substantial time and money. “I’m fighting the bank, so to speak, and going against the house,” Zay told the Capital Chronicle. Zay has said he plans to avoid lobbying involving the Statehouse and IURC during his required one-year cooling-off period. He is now considering what comes next after leaving the commission. The post Andy Zay Defends Spending, Questions Timing of His Removal From Indiana Utility Commission appeared first on WOWO News/Talk 92.3 FM and 1190 AM. ...read more read less