Former Indiana Utility Regulatory Commission member Andy Zay sued Gov. Mike Braun on Monday, asking a Marion County judge to void his Aug. 3 removal, restore him to the commission and strip his replacement of the seat before the panel acts on a pending AES Indiana rate case.

The verified complaint, filed in Marion Superior Court 1 as Cause No. 49D01-2608-CE-044500, seeks declaratory judgment, quo warranto and injunctive relief. It names Braun; State Personnel Department Director Matthew Brown; Steve Carter, deputy counsel for appointments in the governor’s office; Secretary of Energy and Natural Resources Suzanne Jaworowski; Commissioner Joshua Bain; and the state, all in their official capacities. Zay, a former state senator, is represented by the Indianapolis firm Betz + Blevins.

Indiana Code 8-1-1-2(c) permits a governor to remove an IURC commissioner “for cause.” Zay’s suit argues Braun had none, and that the statute does not let a governor convert a for-cause appointment into an at-will one.

According to the complaint, Brown and Carter came to Zay’s office on Aug. 3 and tried to interview him. When Zay declined to proceed without a lawyer, the suit says, the two told him he could resign or be fired, then handed him a two-sentence letter Braun had already signed removing him “effective immediately.” The letter, reproduced in the filing, cites the statute but states no cause. Brown then watched Zay collect his belongings and escorted him out, the complaint says.

The State Personnel Department told reporters later that day that Zay was discharged for non-adherence to state policies and laws, citing a missed financial disclosure, improper payments and gifts to employees, and directing staff to change a meeting agenda without consulting the new chairman.

Zay denies each. He says he filed the disclosure required after his January appointment and owed no second one; that any employee payments were processed and approved by the personnel department; and that the gifts were $8 Starbucks cards he bought with his own money for staff birthdays. He also says he never directed staff to place anything on an agenda.

The suit leans on Braun’s own remarks. The governor said publicly that he was disappointed in Zay’s “performance regarding utility costs,” described the policy allegations as “ancillary,” said he wanted commissioners who are “ratepayer conscious,” and said that if people around him did not share the “same mindset,” it was “better to find somebody that does.”

Much of the complaint concerns the governor’s office and the AES case, Cause No. 46258. Zay alleges Jaworowski called him two days before the June 17 vote to say affordability mattered to the governor, then called again afterward to relay Braun’s displeasure that Zay had approved any increase. The commission voted 3-1 to grant AES about $71 million, far less than requested.

At a June 18 meeting, the suit says, Braun, Jaworowski, chief of staff Joshua Kelley and Office of Utility Consumer Counselor head Abby Gray discussed the decision with Zay present, and Braun asked Gray, “how are we going to fix this?” Zay says he left the room because he believed the discussion violated the statute barring ex parte contacts, and that he sought guidance from the inspector general on June 22. That same day, the complaint says, Jaworowski asked him to change a meeting agenda, sought a not-yet-public affordability report, and asked him to resign at Braun’s request.

Zay refused. Braun made Anthony Swinger chairman. The OUCC petitioned for rehearing July 7. Zay says he, Commissioner David Veleta and Administrative Law Judge Kristin Kresge circulated a draft order on that petition July 31; the agenda listing it posted at 10 a.m. Aug. 3, hours before he was fired. Swinger tabled it Aug. 5. Braun appointed Bain, who is not accused of wrongdoing, on Aug. 6.

Zay also asked for a restraining order, a hearing within 10 days and expedited discovery, with responses due Friday. No hearing had been set as of Monday afternoon. The governor’s office has not publicly commented on the lawsuit.

Indy Politics will have more as the case develops.