Andy Zay Sues Governor Mike Braun Over IURC Removal

Former Indiana Utility Regulatory Commission (IURC) Commissioner Andy Zay filed a lawsuit in Marion Superior Court on August 11, 2026, seeking reinstatement to his position. Zay alleges that Governor Mike Braun's August 3 decision to remove him was an unlawful dismissal and a political maneuver intended to alter the commission's composition before a potential vote to reconsider a $71 million electricity rate increase for AES Indiana.

Zay claims the removal was retaliation for his vote to approve the rate hike and his refusal to yield to pressure from the governor's office. The lawsuit further alleges that Governor Braun and his staff engaged in prohibited ex parte communications and sought non-public investigative reports. Zay is seeking a declaratory judgment and an injunction to prevent his successor, Joshua Bain, from exercising commissioner powers until the case is resolved.

Governor Braun and the State Personnel Department maintain that Zay was fired for cause. They cite multiple potential violations of state policy, including the failure to file financial disclosures and the issuance of improper employee gifts. Zay denies these allegations, asserting that bonuses were state-approved and that small staff gifts were paid for with personal funds. Governor Braun has defended the move by stating he seeks commissioners who are ratepayer-conscious.