Exercising a new prerogative created by a state law passed lastyear, California Gov. Gray Davis this week named one of his closeadvisers and newest regulators, attorney Loretta Lynch, to bepresident of the five-member California Public UtilitiesCommission, which oversees the restructuring of the energyindustries, along with telecommunications, water, trucking andpublic transportation.

Lynch is one of two Davis appointees currently on the regulatorybody, having begun late last year after the sudden resignation ofan earlier Davis appointee, Joel Hyatt. She replaces Richard Bilas,an economist and appointee of former Gov. Pete Wilson. Bilas, aformer state college economics professor and state energycommissioner, has served as president since January 1998.

Lynch, who’s CPUC term runs through 2004, previously headed Gov.Davis’ Office of Planning and Research in Sacramento, an agencythat kept close track of CPUC matters. For an interim, one-meetingbasis she had served last June on the CPUC before Hyatt and anotherDavis appointee, Carl Wood, were named to the commission.

With a majority of three Wilson-appointed commissioners, theCPUC is not expected to make any significant changes. However, oneof the Republican appointees’ terms concludes the end of this year,so observers speculate there could be a shift in some policiesstarting next year when a majority of the commissioners will beDavis people.

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