Indiana Gov. Braun fired IURC Commissioner Zay, called cited cause 'ancillary,' day before agency shelved rate-hike reconsideration vote

On Aug. 3, 2026, Indiana Gov. Mike Braun fired Indiana Utility Regulatory Commissioner Andy Zay, weeks after demoting him as IURC chair in June over his vote to approve a $71 million AES Indiana rate increase. The State Personnel Department said Zay was discharged for "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.

Indiana law limits the governor's power to remove IURC commissioners, who serve four-year terms, to dismissals "for cause." Braun did not dispute the violations the state cited, but when asked what led to the firing, he called them "ancillary" and said "it was from the very beginning" that he was looking for commissioners who were "ratepayer-conscious" — adding he was "disappointed" Zay "didn't take on affordability and holding utilities accountable," tying the dismissal to Zay's June vote on the rate case rather than to the personnel findings the state gave as its legal basis for removal.

Braun fired Zay on the same day the IURC released the agenda for its Wednesday, Aug. 5 meeting, which included a vote on reconsidering the AES rate increase. The next morning, the agency abruptly pulled that vote from the agenda; new Chair Anthony Swinger, who has recused himself from the case, said he made the call "because there was no consensus among the commissioners." Indiana Democratic Party Chair Karen Tallian said Braun was using Zay as a "scapegoat" for rising utility costs. The IURC has until Sept. 8 to rule on the pending reconsideration petition.

Updates

2026-08-10 — Zay sued Braun over the removal, seeking reinstatement [4, 5]

Zay filed suit against Braun in Marion County Superior Court, alleging his removal was politically motivated and that the statute does not permit the governor to remove a commissioner over a policy disagreement or the exercise of independent judgment. The complaint contends the real motive was altering the commission's composition ahead of the AES rate-increase reconsideration vote, alleges the governor's office made improper ex parte contacts with the commission, and says Zay was given no notice or chance to respond to the allegations before removal. The suit names Braun, successor commissioner Joshua Bain, IURC Secretary Suzanne Jaworowski, State Personnel Department Director Matthew Brown, and deputy counsel for appointments Steve Carter as defendants, and seeks Zay's immediate reinstatement and an order barring Bain from exercising commissioner powers until the case concludes.

2026-08-22 — State settled Zay's lawsuit for $625,000 [6]

Indiana settled Zay's lawsuit for $625,000, the governor's office announced, covering $485,000 in salary and benefits through the remainder of his term (set to expire March 31, 2030) plus $140,000 in legal costs. Neither side admitted wrongdoing; the settlement states it "does not constitute an admission by any Party that any of them have violated any law, and each specifically denies having done so."