While FERC Chairman James J. Hoecker said he’s honored by beingrenominated to the Commission by President Clinton earlier thismonth, Commissioner Vicky Bailey may be contemplating a jobelsewhere.

Bailey has recused herself from three cases recently, leading tospeculation that she is considering job offers from the companiesinvolved in those cases. They include Columbia Gas (Columbia EnergyGroup), Texas Gas 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 NGIyesterday. “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.

Bailey is a firm believer in deregulation and lighter-handedCommission oversight. “Her philosophy has been what I wouldcharacterize as a free-market philosophy,” said one veteran FERCobserver. “Generally, she has dissented in a lot of 3-2 votes wherethere have been some tough issues. She and [Commissioner Curt]Hebert have been on the same side, the side of removing price capsand light-handed regulation, in contrast to the other threecommissioners who have taken a more centrist view and a morecautious 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.”

If Bailey is replaced by more of a political centrist, it couldleave Hebert isolated as a lone dissenter on many cases. On theother hand, if someone with a similar philosophy replaces her, FERCcould remain significantly divided.

“As a black professional woman I think she has been a wonderfulrole- model,” said another observer who asked to remain anonymous.”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 this 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. If his current appointment passes, his newterm will end June 30, 2005. His current term expires next June.

The President also plans to designate Hoecker as chairman uponappointment. However, the presidential election could cut Hoecker’schairmanship short by four years.

“[The nomination] just got sent to the Hill, and they’re leavingtown so nothing is going to happen until next year,” Hoecker notedyesterday after a speech at the mid-year meeting of the Energy BarAssociation. Regarding the likelihood of remaining chairman,Hoecker noted, “That’s up to whoever’s in the White House.”

The White House’s statement noted that under his chairmanship,Hoecker has promoted wholesale electric competition throughdevelopment of regional transmission organizations, modernizationof natural gas regulatory policies, interagency coordination toimprove the hydroelectric relicensing process at the FERC, and anagency-wide reengineering to make FERC process moremarket-responsive.

Hoecker holds a B.A. cum laude from Northland College, an M.A.and Ph.D. from the University of Kentucky and a J.D. from theUniversity of Wisconsin Law School.

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