Four advocacy groups asked the Indiana Utility Regulatory Commission on Monday to investigate alleged misconduct by Duke Energy in building its Edwardsport power plant.

The groups claim that Duke officials improperly communicated with regulators, exerted undue influence and had conflicts of interest over the $3 billion plant, which will cost about $1 billion more than budgeted. Two Indiana officials and two Duke executives lost their jobs over the claims last year.

The commission has previously denied similar requests, saying other agencies have authority to investigate criminal and ethics matters. It began hearings in October on Duke's recovery of the plant's escalating costs and of the company's management of the project. Bruce Henderson

Duke sees rate settlement

Duke Energy filed testimony Monday that suggested it may reach a settlement agreement on its 15 percent rate increase proposal with the state's advocates for the public.

The testimony by Duke South Carolina President Catherine Heigel and other officials responded to criticism of the proposal by the S.C. Energy Users Committee and by Wal-Mart Stores. It did not address issues raised by the Office of Regulatory Staff, the state agency that advocates for the public good.

"We are hopeful to reach a settlement with ORS soon," Duke spokesman Jason Walls said.

Duke has been unable to settle with consumer advocates in North Carolina, where last week it offered to trim a requested 15 percent rate increase to 12 percent. Bruce Henderson

Suits filed over AIG bailout

A company run by the former CEO of American International Group Inc. is suing the government for $25 billion in damages over its taxpayer bailout of the big insurer.

Starr International, former AIG CEO Maurice "Hank" Greenberg's current company, filed lawsuits Monday in federal courts against the Treasury Department and the Federal Reserve Bank of New York. The suits accuse the government of taking valuable assets from AIG's shareholders without their consent or fair compensation, in exchange for the government's 80 percent stake in the company. The suit says the government's actions violate parts of the Fifth Amendment.

Starr International was the largest shareholder in AIG. It is suing on behalf of AIG and the AIG shareholders. "The government is not empowered to trample shareholder and property rights even in the midst of a financial emergency," Starr International says in the suits.

"Our actions were necessary, legal and constitutional," Tim Massad, Treasury's assistant secretary for financial stability, said in a statement. "We ... expect to defend our actions vigorously." AP

Madoff's early moves told

Jailed financier Bernard Madoff's multibillion-dollar Ponzi scheme stretched back at least to the early 1970s, when his employees used historical information about stocks to create false trades that could be placed on customer statements, a former trader revealed as he pleaded guilty Monday to criminal charges.

David Kugel pleaded guilty in U.S. District Court in Manhattan to conspiracy, securities fraud, bank fraud, falsifying business records and falsifying the books of an investment adviser - charges that carry a potential penalty of as long as 85 years in prison. A cooperation deal with prosecutors that leaves Kugel free on $3 million bail would earn him leniency at a sentencing tentatively scheduled for May 4. As part of the plea, he agreed to forfeit $3.5 million to the government.

Kugel, 66, told Judge Laura Taylor Swain he was engaging in fraud in the private investment wing of Madoff's business in the early 1970s. AP