Vice President Dick Cheney unofficially confirmed that Pat Wood III, who was sworn in as the newest member of FERC Tuesday, soon will be named chairman of the Commission, replacing current Chairman Curt Hebert, according to a joint Frontline/New York Times television report.

Cheney made the disclosure off-camera during the filming of the joint presentation, “Blackout,” that addressed the energy crisis in California, said a Times reporter that narrated the program. Cheney’s office refused to comment Wednesday, saying that was up to the White House. The hour-long program was aired on PBS Tuesday. It included interviews with all the leading actors in the California drama from the governor and chairman of the California Public Utilities Commission to Federal Energy Regulatory Commissioners and executives of Enron, Duke Energy, Pacific Gas & Electric and the Consumer Federation of America.

The TV program zoomed in on “energy alley” in downtown Houston with film of the skyscrapers owned by some of the leading players. It flipped back several times to scenes of Enron’s trading floor with references to the large amounts of money changing hands in the energy business. Industry leaders were questioned repeatedly as to who was making the money from the high prices in California. Of passing interest was the fact that CPUC President Loretta Lynch got more air time than Gov. Gray Davis.

The program strongly indicated that Enron Chairman Kenneth Lay, who was described as a “personal friend and big backer of President Bush,” and one of the “most generous contributors” to the Republican Party, had a hand in getting Wood appointed to the Commission, and possibly even as FERC chairman.

It’s “important to Ken Lay…that Pat Wood, who has backed his positions in the past, has been appointed to the FERC,” the Frontline/Times’ presentation said.

It sounds as if Lay might get his way at FERC if Wood is tapped as the new leader, the Times reporter said when he interviewed Hebert for the program. “He might,” Hebert conceded. “It would be the first knowledge I’ve had if Pat Wood is, in fact, to be chair,” the chairman added.

Reports that President Bush planned to name Wood, a former Texas regulator and close personal friend, as the new FERC chairman once he was confirmed by the Senate have been widespread in Washington D.C. for several months. Wood was confirmed by the Senate in late May, and was sworn in as a member of FERC in Austin, TX, Tuesday.

Lay again denied allegations that he had telephoned Hebert and offered to support him for chairman — in effect lobby for him at the White House — if he agreed to force Southern Company to open up its transmission lines to Enron. He says Hebert initiated the call, seeking out Lay’s help to remain chairman.

Hebert, however, contends otherwise — that Lay initiated the call, that Lay offered to support him as chairman in return for certain favors, and that he flatly refused Lay’s offer. “I would never make that trade” with Lay, Hebert said during the Frontline/Times‘ program.

“I suppose Curt’s entitled to believe whatever Curt believes,” Lay said, dismissing the chairman’s account of the telephone conversation. He said he never sought any “quid pro quo” favors from Hebert. Further, Lay said he recalled telling Hebert that any decision about FERC chairman would be made by the White House — not Lay or Enron.

©Copyright 2001 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.