January 13, 2011-by John Russell in the Indianapolis Star. Senate leader’s day job is ripe for conflict of interest, watchdogs say.
State Sen. James Merritt and electric utilities bump into each other at nearly every turn.
In his re-election campaign last year, Merritt raised money from American Electric Power, Duke Energy Corp., NiSource and other utilities, making them the largest single industry to support him.
Merritt, R-Indianapolis, has championed many of the industry’s pet issues, from redefining coal as a renewable energy source to permitting the state to buy and sell billions of dollars worth of substitute natural gas made from coal.
As chairman of the Senate Utilities and Technology Committee, Merritt gets to decide which bills affecting utilities get a hearing and which die in committee.
Illustration by John Blair
But his latest connection to the industry is raising some eyebrows among government watchdogs and consumer advocates.
Last year, Merritt took a job as vice president of corporate affairs with the Indiana Rail Road Co., a regional freight carrier that specializes in hauling coal from southwestern Indiana mines for customers such as Duke, Indianapolis Power & Light Co. and Hoosier Energy. The utilities burn coal to create electricity.
The railroad seems to make no bones that it is counting on Merritt’s experience in state government to promote its business. The company wrote about Merritt’s hiring in a recent company newsletter, pointing out he has been in the Senate since 1990, serves as majority caucus chairman and is a member of numerous legislative committees.
“Jim is well respected and very capable, both in business and in the Statehouse,” the newsletter story said. “These leadership qualities that he brings to the Indiana Rail Road Company will represent us very well where our business goals and growth strategies relate to broader issues of public policy.”
Merritt said he sees no conflict between his job as a railroad executive and chairman of the Senate utilities committee. Neither did the Senate Ethics Committee, which cleared him to take the job after Merritt asked the panel to review the issue.
But consumer advocates and government watchdog groups are howling over the move. Read More