The head of the Indiana Department of Transportation has resigned after 16 months on the job and will be replaced by the agency's deputy commissioner of operations.

Gov. Mitch Daniels announced the resignation of INDOT Commissioner Michael Reed on Wednesday. He said Reed wished to return to employment in the private sector.

On the same day, Duke Energy Indiana, one of the state's largest utilities, announced Reed had been hired as president of its Indiana service region. Reed from 2006 to 2009 was executive director of the Indiana Utility Regulatory Commission, which oversees Duke and other utilities statewide.

"Mike brings an impressive combination of business and regulatory experience to this position," said James Turner, president and chief operating officer of Duke Energy’s Franchised Electric & Gas businesses. "He will lead our Indiana team as it works with state regulators, legislators, customers and other stakeholders."

Michael Cline, who until today was INDOT's deputy commissioner of operations, takes over for Reed immediately at the agency, where he has worked since 2007.

Cline takes over as agency head at a time when local officials are complaining about delays and downsizings in Major Moves projects, the state's much touted 10-year, $11.9 billion road-building and maintenance plan.

As deputy commissioner of operations at INDOT, Cline was responsible for 3,200 employees and managed a $290 million annual operating budget and $500 million capital budget.

He is a former traffic administrator for the city of Indianapolis and former assistant city engineer for the city of Terre Haute. He has a bachelor's degree in civil engineering from Purdue University.