The State of Indiana will pay former Indiana Utility Regulatory Commissioner Andy Zay $625,000 to settle his lawsuit over his removal from the commission, according to settlement terms released Saturday by Gov. Mike Braun’s office.

The payment is split three ways. Zay receives $185,000 in wages, reported on a W-2, and $300,000 reported on a 1099 that the agreement describes as settling all amounts other than lost wages and attorney fees. A third payment of $140,000 covers attorney fees and costs and goes to Zay and his lawyers at Betz + Blevins.

The agreement states that the $485,000 paid to Zay is the reasonable net present value of the salary and benefits he would have received had he served on the commission through March 31, 2030 — the balance of the term Braun removed him from on Aug. 3.

Braun’s office announced the settlement in a release Saturday afternoon that disclosed no terms. Deputy Chief of Staff Molly Craft provided the text of the agreement to reporters about three hours later, saying the final executed document was not yet available.

The Office of the Attorney General signed off on the deal Saturday morning, less than two hours before the governor’s office announced it. In an 11:48 a.m. email provided by Craft, Chief Deputy Attorney General Lori Torres wrote that the agreement had been negotiated and prepared by outside counsel selected by the governor’s office, and that the attorney general’s office approved it. The state was represented in the litigation by Steven Runyan of Krieg DeVault. State law requires the attorney general to approve the settlement of claims against the state.

The timeline in the document is its own story. The state gave Zay the proposed agreement on Aug. 19, two days after its attorneys filed a court response asserting that Braun had cause to fire him. That filing alleged Zay used campaign funds to buy custom ties and scarves bearing his initials for IURC staff at a cost of just over $3,000, improperly awarded payments to employees, and failed to file a required financial disclosure.

The agreement resolves none of that. It states expressly that it is not an admission by any party of a violation of law, and that no party concedes any allegation or defense lacks merit.

Under its terms, Zay had up to 21 days to consider the agreement and may revoke it in writing within seven days of signing. It becomes binding on the eighth day after he signs.

Zay releases all claims against the state, Braun, State Personnel Director Matthew Brown, appointments counsel Steve Carter, his successor Joshua Bain and Energy Secretary Suzanne Jaworowski, along with the IURC. That includes a tort claim notice Zay filed Aug. 10, the same day he sued. The release does not bar him from filing complaints with the EEOC or other agencies.

Notably, the agreement contains no confidentiality or nondisparagement clause. The only speech obligation runs the other direction: the state agreed to issue the media statement attached to the agreement as an exhibit, which is the release the governor’s office sent Saturday.

In that statement, Braun thanked Zay for his service and said he appreciated his contributions over the course of a decade. Zay said he was disappointed he would no longer be involved in the commission’s work but believed the resolution was in everyone’s interest.

Zay sued Aug. 10 after Braun removed him weeks after the commission, then chaired by Zay, approved a $71 million rate increase for AES Indiana on a 3-1 vote. AES had sought $192.9 million; the Office of Utility Consumer Counselor argued for a rate cut. Zay’s complaint alleged that the day after the vote he was summoned to a meeting where the governor’s office criticized the decision.

A two-day hearing on Zay’s request to be reinstated had been set for this coming week. The case remained listed as pending Saturday.

Indy Politics has requested the executed agreement and payment records under the Access to Public Records Act.