IURC reverses two rulings involving Duke Energy

November 01, 2011

The Indiana Utility Regulatory Commission reversed two matters involving Duke Energy Indiana, part of the fallout from an ethics matter.

The IURC reversed an earlier ruling that would have let Duke recover $12 million in ice storm-related costs from ratepayers. That ruling had been made by Scott Storms, the Commission’s former chief counsel and administrative law judge. In the second matter, the IURC dismissed a case in which Duke sought approval to have ratepayers cover the $22 million cost of installing smart meters.

According to the IURC, Storms presided over a 2010 hearing regarding the smart meters after he had agreed to take a position with Duke’s in-house legal team. The Indiana Ethics Commission had ruled that taking the job violated state ethics laws, a decision Storms has appealed. In making its decision, the IURC stated that the ethics matter “has resulted in and continues to cause substantial delay in the commission’s ability to review and decide the merits of this case.”

The IURC chose to reopen the storm damage case as a result of the ethics matter, despite objections from two commissioners who cited a lack of evidence that Storms had “undue influence associated with the original proceeding.”

A Duke Energy Indiana spokesman said that the utility respected the decision and is evaluating its next steps. Storms lost his job after the scandal came to light, along with Duke Energy Indiana head Michael Reed. Indiana Governor Mitch Daniels fired former IURC Director David Hardy based on evidence that he allowed Storms to continue to handle matters involving Duke while seeking a job with the utility.