After a long six and a half years as a commissioner on theFederal Energy Regulatory Commission, Vicky A. Bailey is steppingdown effective Feb. 1 to serve as president of PSI Energy Inc.,Indiana’s largest electric utility and a subsidiary of CinergyCorp. PSI serves more than 655,000 customers in 69 of the state’s92 counties.

The move comes not long after Bailey recused herself from aseries of cases, leading to speculation that she might be leavingthe Commission. In an earlier interview with NGI, she admittedholding discussions with several potential employers (see NGI, Nov.22). She said her departure was not imminent, but she seemed eagerto plot a new course.

“Vicky Bailey is an impact player who brings knowledge of boththe energy industry and the state of Indiana to her position aspresident of PSI,” said James E. Rogers, vice chairman, presidentand CEO of Cinergy. “She has been an active participant in the moveto a competitive electricity market and will play a key role forour company in shaping energy policy in Indiana. I am delightedthat Vicky is joining the Cinergy team.” Rogers himself is a FERCalum, having served as general counsel in the early eighties.

Bailey succeeds J. Joseph Hale, Jr., who has served as interimpresident of PSI Energy since John M. Mutz retired from full timeservice in May 1999. Hale continues to serve as Cinergy’s vicepresident of corporate communications and president of the CinergyFoundation, Inc.

Bailey, an Indiana native, served on the Indiana UtilityRegulatory Commission from 1986 to 1993, prior to her appointmentas a FERC commissioner. She was first nominated by PresidentClinton in 1993 to serve a term on the FERC expiring in 1996 andwas then renominated for a five-year term. Prior to joining theIURC, Bailey was vice president of administration for the J. BaileyCompany. She holds a BS degree from the Krannert School ofManagement at Purdue University.

Longtime FERC observers have described Bailey as a firm believerin deregulation and lighter-handed Commission oversight. She andCommissioner Curt Hebert were often on the same free-market side ofthe fence in contrast to the other three commissioners who havemore centrist views and have taken more cautious approaches tofurther deregulation. If she is replaced by more of a politicalcentrist, it could leave Commissioner Curt Hebert isolated as alone dissenter on many cases. On the other hand, if someone with asimilar philosophy replaces Bailey, FERC could remain significantlydivided.

A Republican or an Independent will have to take Bailey’s placeon the Commission which already has three Democrats.

Rocco Canonica

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