Indiana energy regulator indicted

December 14, 2011

In the wake of an ethics scandal, a grand jury indicted former Indiana Utility Regulatory Commission Chairman David Lott Hardy on three counts of official misconduct. The felony indictments relate to what are alleged to be inappropriate communications with Duke Energy Indiana.

The first count relates to Hardy’s role in Duke’s hiring of the IURC’s general counsel, Scott Storms. While Storms was seeking an attorney position with the investor-owned utility, he remained involved in IURC matters involving Duke. The Indiana State Ethics Commission found that Storms had violated state ethics laws, and Governor Mitch Daniels fired Hardy after the allegations came to light.

The other two counts are related to secret communications Hardy was alleged to have had with Duke officials regarding cost overruns at the coal-gasification and generating facilities currently being constructed in Edwardsport.

The ethics matters became public as the result of an Indianapolis Star investigation. Marion County Prosecutor Terry Curry stated that his office will vigorously prosecute the case.