The White House has remained mum throughout the week on itsfinal choice for FERC chairman, but sources indicate that PresidentBush continues to champion Texas regulator Pat Wood III overcurrent FERC Chairman Curt Hebert Jr. for the job despite mountingpressure from Capitol Hill to keep Hebert.

“…[T]here’s been discussion that Pat Wood, a friend and allyof Bush, could very well be the next chairman,” forcing Hebert tostep aside, said a Capitol Hill aide. “The president says he hasn’tmade a final decision yet,” he added, but sources believe Bush isleaning toward Wood.

“I’m not aware of the White House having made their final choiceeither,” said Samantha Jordan, press aide for Rep. Joe Barton(R-TX). “I think they’re still looking, but there was somediscussion that it was possible that [Hebert] could be replaced.”

Meanwhile, Hebert continues to have the backing of the “old lineRepublican leadership” in the Senate – namely Majority Leader TrentLott (R-MS), Sen. Frank Murkowski (R-AK) and Sen. Larry Craig(R-ID), said an industry source in Washington D.C. “They all havespoken out forcefully in favor of the job he’s done so far,” shenoted. Even some Republican heavyweights in the House – such asW.J. “Billy” Tauzin (R-LA) and Barton – have publicly advocatedHebert for the job.

“Sen. Craig…firmly stands behind the chairman and says he’llcontinue to support him,” said Craig spokeswoman Sarah Berk. Barton”certainly supports” Wood for a FERC commissioner, but he andTauzin favor Hebert for Commission chairman, according to Jordan.”They feel he has done a good job.”

Given this strong leaning for Hebert on Capitol Hill, the WhiteHouse could face an uphill battle in getting a Wood nominationthrough the Senate.

In the meantime, most energy companies are playing it safe bynot indicating their support for either candidate. “We’re notjumping to any conclusions one way or the other,” remarked theindustry source. Nevertheless, she questioned whether “it was agood time to change direction” at the Commission. “We’re in themidst of an energy crisis” in California and elsewhere.

“We can’t figure out who’s opposing him [Hebert],” she said,speculating that it might be the California delegation in Congress,which has assailed Hebert for refusing to impose regional pricecaps on bulk power transactions. “Maybe they think there would bean advantage” if Wood were appointed to head FERC, she noted.

Some of the opposition to Hebert is coming from inside theenergy industry itself. At least two industry trade groups haverefused to sign a resolution supporting Hebert for FERC chairman.The resolution was circulated last week in Washington, according toa gas representative.

The same gas representative openly favors Wood over Hebert,saying that Wood has a good grasp on gas and electricity issues andis well regarded by Bush.

On Capitol Hill, the issue of who will be the next Commissionchairman has become something of a hot potato. What normally wasconsidered a routine appointment suddenly has become too hot totalk about. “We’re declining all comments on the issue of FERCappointments,” said an aide to Murkowski. When asked why, he noted,”it’s a Bush administration issue.” Wood also is refusing to makeany comment.

The White House notified Hebert, the only Republican currentlyon the Commission, on Jan. 22 that he was to take over fromDemocratic Chairman James Hoecker. But it was never clear at thetime whether Hebert’s appointment was as “acting” or permanentchairman. Hebert and FERC press spokesmen indicated at the timethat it was permanent, but the White House never made anyannouncement to that effect.

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