Advocacy group urges change to how state selects utility regulators
INDIANAPOLIS (WRTV) — A new push is underway to make changes as to how commissioners are selected for the Indiana Utility Regulatory Commission, the state panel that regulates utilities including electric, water and natural gas.
Former IURC Commissioner Andy Zay filed a lawsuit Monday alleging Governor Mike Braun’s office tried to influence the AES rate case.
The lawsuit also accuses Braun of unlawfully removing Zay from his position at the IURC.
The Citizens Action Coalition, an Indiana-based consumer advocacy organization, says the situation is damaging the public’s trust in its utilities and the IURC.
“This further erodes what is already extremely low public confidence in the process and in the IURC,” Kerwin Olson, executive director at the Citizens Action Coalition said. Olson said the legislature needs to reevaluate how IURC commissioners are currently appointed by the Governor in Indiana.
“That’s been an issue for the Citizens Action Coalition for decades in terms of the process by which we place people on the IURC,” Olson said. “We’re one of only four states where either those who regulate our utilities are not directly elected by the public or confirmed by one or both chambers of the General Assembly.”
He’s calling on the Indiana legislature to act.
“I think with affordability, with prices being top of mind for so many folks, and the direct connection between the regulatory process and the impact on prices, I think there’s an opportunity here for the General Assembly to dive into this issue and perhaps do something in the upcoming session,” Olson said.
Olson said the legislature also needs to look at laws impacting affordability and utility rates.
Rep. Carey Hamilton, D-Indianapolis, agrees.
“There’s a false narrative being perpetrated that the IURC can dictate utility policy, and they can’t,” Hamilton. 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.”
Hamilton also says the allegations in Zay’s lawsuit against the Governor could help AES increase rates.
“If the Governor is putting political pressure on this judicial body, that will give the ability of an entity like AES, an investor-owned utility, to go to the courts and say this isn’t acceptable,” Hamilton said. “There can’t be political pressure on this process. That’s illegal, which could result ultimately in a higher utility rate for ratepayers, that’s very dangerous territory that the governor is in right now.”
Indiana’s I-Team is reaching out to AES Indiana for comment.
“AES Indiana will continue to follow the established regulatory framework and participate in that process as we remain focused on delivering safe, reliable, and affordable service for our more than 530,000 customers across Central Indiana,” AES said in a statement to Indiana’s I-Team.
The IURC and the Governor’s office have not yet responded to requests for comment about Zay’s lawsuit.
