With little fanfare from the lame-duck Clinton administration,FERC Chairman James J. Hoecker received a recess appointment lastMonday from the White House that effectively would extend his termon the Commission until the Senate adjourns next year. It alsore-designated him as chairman.

Hoecker’s future as chairman and as a commissioner still is thesubject of much speculation. The traditional formula calls forPresident-elect George W. Bush to name a Republican as chairmanwhen he takes office in January. That scenario would likely givethe chairmanship to Commissioner Curt Hebert. An alternative wouldbe for Hoecker to continue as chairman while another Bush appointeemakes it through the selection and confirmation process, whichcould take three to four months. Given the turmoil in theCalifornia power market and potential shortages now forecast forthe natural gas market toward the end of this winter, that scenariomight make sense, some industry-watchers suggest.

Hoecker, who has developed consensus-building skills during histhree and a half years as chairman, is seen as a stabilizing forcewho has so far resisted heavy pressures for short-term fixes fromWest Coast Democrats and the energy secretary, that would underminethe competitive market the FERC has labored so long to build. Whilethe Commission has taken its lumps for refusing to impose hardprice caps, the backlash is nothing compared to what it likelywould be under a newly-installed and untried Republican leader. Infact, given the current environment, any appointment to FERC isliable to stir a firestorm in Senate confirmation hearings.Further, the outcry against decisions under a new Republicanchairman would directly tar the fledgling Bush administration,making it more difficult to move its energy initiatives in theCongress and the Interior Dept.

Hebert, who appears to have taken his position as the loneRepublican on the Commission very seriously, missing no opportunityto criticize decisions or statements by his fellow commissioners,has been lobbying hard for the chairmanship. The Bush team also issaid to be considering Pat Wood III, chairman of the Texas PublicUtility Commission, as a candidate for the top spot.

In a press statement last week, Hoecker thanked PresidentClinton for giving him “this additional opportunity to help shapethe energy future of the nation,” and said he “look[ed] forward tocontinuing in public service.” He also said he was “grateful” forthe “tremendous contributions” of his Commission colleagues andstaff members, “without which any chairman would be cut adrift.”Hoecker’s re-appointment was made after the Senate adjourned forthe year on Dec. 15. The White House can only make interim recessappointments — which don’t require Senate confirmations — whenthe Senate is not in session.

President Clinton nominated Hoecker to his second five-year termat FERC in November 1999, but the Senate was reluctant to act onhis nomination. His current term expired last June, but he has beenserving under a grace period that ended when the 106th Congressadjourned in mid-December. Hoecker has been FERC chairman sinceJune 1997.

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