Former Indiana Utility Regulatory Commission chair Andy Zay reached a settlement with the state, resolving the lawsuit he filed to challenge his firing, Gov. Mike Braun's office announced Aug. 22.
Under the settlement, Zay will not rejoin the IURC. Indianapolis City-County Councilor Josh Bain, tapped by Braun earlier this month, will remain in his role as Zay's replacement.
"I am disappointed that I will no longer be directly involved in this important work, but I believe resolution with the State is in everyone's best interest at this time," Zay wrote in a statement shared by the governor's office. "I appreciate Governor Braun's willingness to reach satisfactory terms so that we can all move forward in a positive direction."
No documents related to the settlement were posted on the case's online court docket at the time of Braun's announcement. It was not immediately clear whether the settlement included monetary terms.
Braun appointed Zay, a former Republican state senator, to the IURC by Braun in January. But he clashed with the governor after the commission voted in June to approve a $71 million rate increase for AES Indiana, the utility firm that provides electricity to Indianapolis.
Braun demoted Zay from his position as commission chair shortly after the IURC greenlit the AES rate increase. Then, in August, Braun fired Zay, accusing him of making improper gifts to IURC employees and failing to file a required financial disclosure.
Less than a week later, Zay sued, claiming the governor had fired him without cause. He argued that he missed no financial disclosures and denied that he used state funds to pay for employee gifts, and he asked to be reinstated to the commission.
In response, the state said in a legal filing that Zay used campaign funds to purchase ties and scarves for IURC staff.
Tilly Robinson is a Pulliam Fellow for the Indianapolis Star. She can be reached at [email protected].
This article originally appeared on Indianapolis Star: Gov. Mike Braun reaches settlement with fired utility commissioner