October 6, 2010, by John Blair, valleywatch.net editor. The revolving door between the Indiana Utility Regulatory Commission and Duke Energy has been well established for a very long time but may be more difficult in the future. File Photo © 2010 John Blair shows former Chairman Hardy listening at a public hearing regarding a rate increase granted to Vectren.
In what may be the clearest signal yet of a run for the presidency by Indiana Governor, Mitch Daniels, he decided yesterday to try to mitigate a scandal of huge proportions by firing the Chairman of the Indiana Utility Regulatory Commission, David Lott Hardy.
Although the media and even Daniels’ opposition had given Hardy a pass for being the chair of a commission that was intended to regulate his former employer, when the revolving door between the Commission and Duke Energy recently became too crowded to maneuver, Daniels had his General Counsel, David Pippen step in with a stern warning that even the appearance of wrong doing was not allowed.
In a strongly worded memorandum to all State Agency heads, Pippen wrote:
“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 response:
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 the decisions;
3. The one-year cooling off period for decision makers are to be considered to include ALJs who preside over information gathering and order drafting; and
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. The governor will request that the IURC Nominating Committee begin the process of accepting applications to fill the open position on the commission.”
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The former Judge Pippen referred to was Scott Storms, who served the Commission as both its Chief Counsel and Chief Administrative Law Judge. It was in his capacity as ALJ that created a clear conflict of interest since Storms had “presided” over nearly all the “dockets” decided by the IURC in what may become Duke Energy Indiana’s largest boondoggle ever, the nearly $3 billion Edwardsport new coal plant currently under construction in SW Indiana.
That plant, and its IURC approval has been challenged by Valley Watch, Save the Valley, the Citizens Action Coalition and the Hoosier Chapter of the Sierra Club since it was first proposed as being too expensive for ratepayers and not even needed for supplying the electrical needs of customers in Duke’s sixty-nine Indiana county “service territory.” Continue reading


September 20, 2010-by Bob Femandez in the Philadelphia Inquirer. It was that plant, according to plaintiff claims, that dumped toxic chemicals into an unlined retention pond between the early 1960s and late 1970s. The chemicals traveled to nearby McCollum Lake through a shallow aquifer and a deepwater aquifer, the plaintiffs claim. 

September 17, 2010-by Ronald Bailey in Reason Magazine. Even my iPhone was forbidden on the grounds that no photos should be taken. Michelle, the very nice tour guide, explained that curious members of the public and reporters couldn’t tour the plant itself or take any photos on orders from Homeland Security, even of the model.”
September 10, 2010-by David Biello in Scientific American. Coal-burning poses other threats as well, including the toxic coal ash that can spill from the impoundments where it is kept; other polluting emissions that cause acid rain and smog; and the soot that causes and estimated 13,200 extra deaths and nearly 218,000 asthma attacks per year. Photo © 2010 John Blair shows Duke Energy’s Edwardsport (IN) plant under construction which is slated to emit 9 million tons of CO2/year.

August 17, 2010-by Karl Grossman in the Huffington Post. “The evidence is there that the majority of cancer cases are environmentally caused,” says Dr. David Carpenter, founding dean of the University of Albany School of Public Health and now director of the Institute for Health and the Environment there. 

August 11, 2010-byDonald A. Brown, Penn State University. “Ethical arguments that could counter the national-interest based arguments are rarely heard in the climate change debate and are now virtually absent in the U.S. discussion of proposed domestic climate change legislation.” This NASA satellite image shows an island of ice, 251 square kilometres in size, breaking away from the rest of the Petermann Glacier on Aug. 5. (NASA/MODIS)
August 9, 2010- Ozone and fine particles will rise to an Orange alert today and tomorrow. 
July 29, 2010-By Stewart Elgie, Nic Rivers and Nancy Olwwiler in the Times Colonist. The carbon tax has obvious moral appeal. By tying the pollution tax to reduced income taxes, B.C. has shifted from taxing “goods,” like working and entrepreneurship, to taxing “bads,” like pollution. 
July 26, 2010-By Lee Wasserman, Director of the Rockefeller Family fund in the New York Times. Had Lyndon Johnson likewise relied on polling, he would have told the Rev. Dr. Martin Luther King Jr. to talk only about the expanded industry and jobs that Southerners would realize after passage of a federal civil rights act. I could imagine Dr. King’s response.

July 22, 2010-National Oceanic and Atmospheric Administratioon. The global June land surface temperature was 1.93°F (1.07°C) above the 20th century average of 55.9 °F (13.3°C) — the warmest on record. Graph credit: NOAA