Gov. Mitch Daniels has terminated the employment of the chair of the Indiana
Utility Regulatory Commission, David Lott Hardy—effective immediately—and
appointed IURC Commissioner Jim Atterholt in Hardy’s place.
According to a statement released today by the Governor’s Office, the action
follows the departure of the IURC’s general counsel Scott Storms, who in
September accepted employment with Duke Energy of Indiana after previously
communicating with the company about the position while presiding over
administrative hearings concerning Duke.
Subsequently Daniels sent Hardy a letter in which the Governor outlined his
expectations of the IURC in upholding a formal ethics opinion on the matter.
David Pippen, the governor’s general counsel, also sent a memo to all
executive branch agency heads. The full text of that memo:
“To: All Agency Heads/General Counsels
“From: David Pippen, General Counsel to the Governor
“Recently, a former general counsel and administrative law judge (ALJ) for
the Indiana Utility Regulatory Commission left state government to work for
Duke Energy of Indiana, a regulated entity. I wrote a letter to the IURC
explaining the Governor’s interpretation of the spirit and intention of the
ethics reform he spearheaded when he came to office. In short, he will not
tolerate even the appearance of impropriety.
“Upon the Governor’s direction, an internal review of the matter revealed
the lawyer was communicating with Duke regarding a position with the company
at a time he was presiding over administrative hearings concerning Duke.
Additionally, the agency head was aware of the communications and did not
remove the lawyer from matters for which the lawyer was now conflicted.
“So you understand the seriousness of this matter, I want you to know our
“(1) The Governor has terminated the employment of the chairman of the IURC;
“(2) The administrative opinions over which the ALJ presided regarding Duke
will be reopened and reviewed to ensure no undue influence was exerted in
“(3) The one-year cooling off period for decision makers are to be
considered to include ALJs who preside over information gathering and order
“(4) The matter has been referred to the Inspector General to determine if
any laws were broken or misinformation given to the Ethics Commission when
requesting a formal opinion;
“To reiterate the ethics rules as they relate to regulated entities:
“(1) No ALJ should engage in communications with regulated entities
regarding possible employment without recusing oneself from matters
appearing before that regulator;
“(2) Administrative opinions over which an ALJ presided while pursuing
employment opportunities with the regulated entity will be reopened and
reviewed to ensure no undue influence was exerted in the decision;
“(3) The one-year cooling off period for decision makers includes ALJs who
preside over information gathering and order drafting; and
“(4) Violations of these points will be referred to the Inspector General.
“Please advise your staff to avoid this circumstance in the future.”
Atterholt’s appointment is effective immediately and Daniels will request
that the IURC Nominating Committee begin the process of accepting
applications to fill the open position on the IURC.