FERC Chairman James J. Hoecker was eager to give thanks lastweek after recently being renominated for a fresh term by PresidentClinton, but Commissioner Vicky Bailey seems burned out and readyto plan her departure.

Bailey has recused herself from three cases recently, leading tospeculation that she is considering job offers from the companiesinvolved. They include Columbia Gas (Columbia Energy Group), TexasGas Transmission (Williams) and Illinois Power.

“Typically, commissioners do that because they are beingpresented with maybe an opportunity, so for ethical reasons theyhave to recuse themselves from anything that company has dealingswith at the Commission,” Bailey explained in an interview with NGIlast week. “I am looking at opportunities. I’ve been here six and ahalf years, and whenever I am presented with opportunities I haveto look at them.

“I just recused myself on a few cases. I don’t have any firmoffers,” she added. “I look at things when someone presents ideas.Some things you just kind of have to look at. I’ll look for awhile, and then I’ll decide…..”

If Bailey does decide to leave, a Republican or an Independentwill have to take her place. With three Democrats already on theCommission, the president must choose from another party tomaintain a quorum.

But if Bailey is replaced by more of a political centrist, itcould leave Commissioner Curt Hebert isolated as a lone dissenteron many cases. On the other hand, if someone with a similarphilosophy replaces Bailey, FERC could remain significantlydivided.

Longtime FERC observers describe Bailey as a firm believer inderegulation and lighter-handed Commission oversight. “Herphilosophy has been what I would characterize as a free-marketphilosophy,” said one veteran FERC watcher. “Generally, she hasdissented in a lot of 3-2 votes where there have been some toughissues. She and Hebert have been on the same side, the side ofremoving price caps and light-handed regulation, in contrast to theother three commissioners who have taken a more centrist view and amore cautious approach to further deregulation. Although I thinkeverybody seems to be moving in that direction, I think that Hebertand Vicky would want to have gotten there much quicker.

“I think she has been an extremely able commissioner andwell-read,” the observer added. “She picked up on the issues realquick. I’ve been impressed by the level of the debate and the levelof the perception she has brought to the debate.”

Another observer, who asked to remain anonymous, noted that as ablack professional woman Bailey has been “a wonderful role-model.She has been sharp and with it and has a great sense of humor. Ithink she’s been good for the Commission and good for theindustry….[even though] I have disagreed with her philosophicallyon just about everything.”

Meanwhile, the president announced last week the renomination ofHoecker to serve as a member of FERC. Hoecker said the action”reflects great confidence in what we are doing at FERC. I amdeeply honored.”

He has served as a member of FERC since May 1993 and wasreappointed to a five-year term in August 1995. He has served aschairman since 1997, and his current term expires next June.

A spokeswoman for the Senate Energy and Natural ResourcesCommittee, which received the renomination last week prior toadjournment, said it was kind of a shock receiving it eight monthsbefore his term expires. For some reason, the White House is eagerto get him through the nomination process and confirmed as quicklyas possible.

“His term doesn’t expire until next year and we’re kind ofwondering what the rush is,” the Senate Energy Committeespokeswoman said. She recalled the White House allegedly had a planto push through Hoecker’s re-nomination along with Hebert’srenomination earlier this year but it later denied it. The WhiteHouse wanted to offer it as a package deal — it would agree tore-nominate Hebert if the Senate approved Hoecker to another term.

If Hoecker’s appointment passes, his new term will end June 30,2005. But observers are quite skeptical about his chances in frontof a Republican Senate during an election year. The president plansto designate Hoecker as chairman upon appointment, and it’sunlikely the Republican Senate will like the idea of extending theterm of a 3-2 Democratic majority at the Commission. “Clearly itwould be kind of an uphill battle,” said one Washington, D.C.attorney.

Senate Energy Chairman Frank Murkowski (R-AK) won’t hold upHoecker’s nomination when it occurs next year, the spokeswomansaid. But “I can’t say it’ll be the first thing out of the box” forthe Committee in 2000.

The White House’s statement on Hoecker’s renomination, however,noted that under his chairmanship, he has promoted wholesaleelectric competition through development of regional transmissionorganizations, modernization of natural gas regulatory policies,interagency coordination to improve the hydroelectric relicensingprocess at the FERC, and an agency-wide reengineering to make FERCprocess more market-responsive. Hoecker holds a B.A. cum laude fromNorthland College, an M.A. and Ph.D. from the University ofKentucky and a J.D. from the University of Wisconsin Law School.Rocco Canonica,

Susan Parker

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