INDIANAPOLIS (WRTV) — Gov. Mike Braun on Tuesday said he expects the state's utility commission to side more clearly with ratepayers in utility rate cases.
The governor's comments came a day after he stripped Indiana Utility Regulatory Commission Chair Andy Zay of his chairmanship and gave the position to another member of the commission, Anthony Swinger.
Zay is still on the commission.
Braun has sharply criticized the commission's decision last week to approve a $71 million rate increase for AES Indiana. The utility had originally asked for a $193 million rate increase, and an October agreement between AES Indiana and the IURC stipulated a $91 million increase, so the amount approved last week was lower even than the agreed-upon amount. But Braun said he still strongly disagreed with the commission's decision.
"In Andy's case, he brought some tribal knowledge of being on the (Senate) Utilities Committee, but I think maybe he had too much of that, and yes, it was a disappointment," he said. "If I find something like that, I'm going to do whatever I can to make an adjustment, get back on track."
Braun in December appointed three new people to the commission, including Zay and Swinger, and tasked them with focusing on utility affordability. This means three of the IURC's five commissioners are Braun appointees.
Citizens Action Coalition Executive Director Kerwin Olson said approving any rate increase at all for AES Indiana was the wrong decision, but he does not believe Zay should have lost his chairmanship over it. He said Braun's actions, however they were intended, amount to political interference with what is supposed to be an independent decision-making body.
"It's concerning to see politicians, especially the governor of the state of Indiana, put his thumb on the scale," he said. "We certainly share those frustrations. We agree with what Gov. Braun is saying about folks and affordability, but again, it's problematic in our minds when we see political interference in the process like this."
Rep. Ed DeLaney, D-Indianapolis, had similar concerns. He said the IURC is required to follow considerations spelled out in state law when it considers rate increase requests. DeLaney said Indiana lawmakers need to dramatically overhaul the state's utility code rather than pick fights with the IURC.
"It's not designed for these multistate, giant utilities. It's not designed for data centers demanding huge quantities of electricity. And it's not designed for micromanaging by the governor," he said. "So yeah, we need to look at it. But we can't look at it simply as a way to get our anger off. We've got to figure out how to adjust to the changing environment."
Swinger used to work with the Office of the Utility Consumer Counsel, which is tasked with representing ratepayers' interests. He recused himself from the AES vote because he had worked on the case while at the OUCC. Indiana Utility Consumer Counselor Abby Gray said she was pleased by the appointment of Swinger.
I have had the pleasure of working with Anthony Swinger for many years during his tenure with the OUCC. Anthony has always prioritized the needs of ratepayers with special consideration for transparency and affordability. I extend my congratulations to Chairman Swinger and wish him the best as he takes on this new responsibility.
Braun hinted at further changes to the commission. He said his next chance to appoint a commissioner will come in April, when longtime commissioner David Ziegner's term expires.
Ziegner has served on the commission since 1990, when he was appointed by then-Gov. Evan Bayh. Commissioner David Veleta, a Holcomb appointee, is scheduled to finish his current term in January of 2028.
