With the formal announcement last week that Commissioner VickyA. Bailey will leave the Federal Energy Regulatory Commissioneffective Feb. 1, rumors have been flying fast and furious as towho will be her successor. So far, only one name has surfaced —that of McLane Layton, staff counsel for Sen. Don Nickles (R-OK).

“Yes, there is interest on her part” in becoming a member of theCommission, said Nickles spokeswoman Gayle Osterberg. “Obviously,she is a highly qualified candidate. There is a great deal ofinterest within the industry in having her serve in that capacity.”

If appointed to replace Bailey, Layton, a Republican, would jointhe ranks of other one-time Capitol Hill staffers — such asex-Commissioner Donald Santa and former Chair Elizabeth Moler —who went on to sit on the Commission. A long-time member ofNickles’ personal staff, Layton is said to have an “extensive”background in energy, much of which she acquired in connection withthe senator’s role on the Energy and Natural Resources Committee.

“That [energy] is her baliwick. She is the legislative aide andlegal counsel on energy issues” for the Oklahoma lawmaker who hasbeen a major voice for the oil and natural gas industries in theSenate over the years.

Nickles reportedly had tried to get Layton named to FERC in 1997when Santa had resigned. But Nickles withdrew his choice whenSenate Majority Leader Trent Lott (R-MS) indicated he wanted CurtHebert Jr., then a Mississippi regulator and former statelegislator, appointed to the Commission instead. As a result, someinsiders believe that Lott owes Nickles a favor and that he maycall it in with Layton.

“Whoever Lott endorses will probably be the next commissioner,”said one source, adding that he didn’t believe Lott was looking atany other candidates. In cases dealing with Republican nominations,such as this, “the White House usually cedes an extensive amount ofweight to whoever the majority leader recommends.”

The source anticipates that Lott’s office may make anannouncement within “a week or so” with respect to a successor toBailey, who is leaving the Commission to become president of PSIEnergy, Indiana’s largest electric utility and a subsidiary ofCinergy Corp.

The departure of Bailey, who has been a firm believer inlight-handed regulation and deregulation during her tenure at FERC,could deal a critical blow to the Commission. She and CommissionerHerbert have been staunch proponents of a market-oriented approachto regulation, often dissenting from a FERC majority that has beenmore hesitant and centrist in its views. If the successor to Baileyshould espouse these centrist views, the energy industry could seea very lopsided Commission – with Hebert as the lone dissenter.However, if the successor should mirror Bailey’s market-orientedviews, FERC could continue to be very divided.

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