An underground battle was being waged last week over the FERCchairmanship, with several sources reporting that current ChairmanCurt L. Hebert may be asked to step aside to make way for Pat WoodIII, who now heads up theTexas Public Utility Commission (PUC).Wood was appointed to the PUC in 1995 by then-Governor George W.Bush and was a member of the Bush energy transition team.

Reports were circulating that the White House would announce itsintention this week to nominate Wood as commissioner and appointhim as chairman of FERC. Also, it’s believed the White House willannounce its intent to nominate Joe Kelliher, special adviser toEnergy Secretary Spencer Abraham, to fill one of the two vacantCommission seats.

“Chairman Hebert has always said he would serve at the pleasureof the president,” said a FERC spokesman, when asked if the reportswere true. “I don’t have any comment beyond this.”

Indications that Hebert may not have as firm a hold on thechairmanship as previously believed, surfaced earlier last weekwhen Chairman W.J. “Billy” Tauzin of the House Energy and CommerceCommittee said he supported Hebert for FERC chairman on a permanentbasis. Many in Washington thought Hebert already was the WhiteHouse’s final choice for chairman.

At a hearing of the committee’s energy and air qualitysubcommittee last Wednesday, Tauzin said he “wanted to join”Subcommittee Chairman Joe Barton (R-TX) in voicing his “strongsupport for Chairman Hebert’s position as chairman of the FERC. Ihope the administration confirms that as a permanent chairmanship.”He called Hebert “fully competent and qualified” for the job.

A further indication that an underground battle was on came whena resolution was circulated last week at a meeting of natural gasrepresentatives in Washington to endorse Hebert as chairman ofFERC, sources said.

The White House notified Hebert, the only Republican on theCommission, on Jan. 24 that he was to take over from DemocraticChairman James Hoecker. But it was never clear whether Hebert’sappointment was as “acting” or permanent chairman. Hebert indicatedat the time that it was permanent, but the White House never madeany announcement to that effect and Hebert never moved into thechairman’s office suite at FERC. Sources at the time gaveconflicting accounts, with some saying the appointment was”conditional.”

How quickly Wood could take over as FERC chairman would dependon how smoothly his confirmation moves through the Senate. It wasnot immediately known whether Hebert would stay as a commissionerat FERC if he’s replaced as chairman. Wood would not be a strangerto FERC, having previously served as a legal counsel to a FERCcommissioner.

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