RIECKEN CALLS FOR UTILITY RATE FREEZE AMID SCANDAL

Evansville – Gail Riecken, State Representative in House District 77, today called for a freeze of utility rates for investor owned utilities, such as Vectren, in rate cases currently under review or set to be reviewed in the near future until an independent investigation is completed of all possible conflicts of interest and possible criminal violations at the Indiana Utility Regulatory Commission (IURC).

“There needs to be a special investigation of the obvious problem with these cozy relationships between state appointed regulators and the industry executives they regulate,” Riecken said. “The investigation should be conducted by someone outside the Governor Daniels’ office, such as the United States Attorney or a special prosecutor.”

The call for a rate freeze and investigation comes after IURC Chairman David Hardy was fired by Governor Daniels for allegedly knowingly allowing former IURC general counsel Scott Storms to participate in utility rate cases for Duke Energy at the same time Storms was seeking employment with Duke.

Before going to work for Duke, Storms signed off on matters that helped clear the way for Duke to pass on to customers the cost overruns for a $2.9 billion coal gasification plant.

“Raising utility rates on Hoosier families during this bad economy is shameful enough,” Riecken criticized. “But to approve rate increases, and take more money from Hoosier families allegedly in exchange for a new job and more pay, is downright disgusting.”

Riecken went on to criticize the Indiana Ethic Commission for ruling that Storms could take the job with Duke without a one-year “cooling-off” period typically required for utility regulators. Last session, Riecken helped pass a major ethics reform bill putting into law a one-year “cooling off” for state legislators who leave the General Assembly.

The Indianapolis Star reported that “in early September, Hardy and Storms joked about the State Ethics Commission’s review of Storms’ plan to accept a job with Duke. ‘It was impressive that you did not laugh during the Ethics hearing,’ Storms wrote in an e-mail to Reed and Hardy.”

“Hoosiers deserve a government that is free from the influence of big corporations, and always has the taxpayer’s interest at heart,” Riecken said. “We should not allow a revolving door in the utility sector. A full investigation is necessary to ensure rate increases for utility companies are being approved on the merit of their request, not because of the closeness of their connections,” Riecken said.

The rate freeze would suspend the Vectren request currently pending before the IURC to raise utility rates on Southwest Indiana residents. Riecken has led the fight against the rate increase and believes that now is not the time to raise rates on Hoosier families, especially amidst the cloud of scandal at the IURC.

Earlier this summer, Riecken wrote to the Governor asking him to intercede in the Vectren rate case and submitted written testimony on behalf of constituents.