FW: White House May Replace FERC Chairman

FYI. DF
---------------------- Forwarded by Drew Fossum/ET&S/Enron on 03/02/2001
11:39 AM ---------------------------

"Moore, Charles A" <cmoore@AKINGUMP.COM< on 03/02/2001 10:50:58 AM
To: "'dfossum@enron.com'" <dfossum@enron.com<
cc:

Subject: FW: White House May Replace FERC Chairman

< -----Original Message-----
< From: Craven, Donald
< Sent: Friday, March 02, 2001 10:27 AM
< To: Moore, Charles A
< Subject: RE: White House May Replace FERC Chairman
<
< fyi
<
< -----Original Message-----
< From: Ronholm, Brian
< Sent: Friday, March 02, 2001 7:36 AM
< To: Jankowsky, Joel; Johnson, Charlie; Terhune, Hank; Tucker, Jamie; Boyd,
Janet; Craven, Donald
< Subject: White House May Replace FERC Chairman
<
< Congress Daily AM -- March 2, 2001
<
< ENERGY
< White House May Replace FERC Chairman
< The White House may bump newly installed Federal Energy
< Regulatory Commission Chairman Curt Hebert from the chairman's
< office in order to offer a plum position to Texas' chief
< regulator, informed sources told CongressDaily Thursday.
< Lobbyists and Capitol Hill sources said this week that President
< Bush is considering tapping close ally Pat Wood, the chairman of
< the Texas Public Utility Commission, to fill one of the two
< remaining Republican openings on FERC.
< Under that scenario, if Wood wins Senate confirmation, as is
< considered likely, Bush would name him chairman of the
< influential regulatory body--shifting Hebert back to the role of
< a commissioner, a role he has played for more than one year.
< "There's definitely a lot of scurrying and considering," said one
< source.
< Such talk has swirled around FERC since Bush tapped Hebert,
< the agency's sole GOP commissioner, to take over the chairman's
< duties just 39 days ago. But Bush faces a significant political
< obstacle: Hebert is politically close to his fellow
< Mississippian, Senate Majority Leader Lott.
< The plan to replace him with Wood resurfaced last week as Wood
< visited Washington to participate in an annual meeting of the
< nation's utility commissioners.
< Wood, a pragmatic regulator, shares Bush's belief that
< government intervention is sometimes needed to protect consumers
< from deficiencies in the free market.
< Hebert, in contrast, is viewed as more of an ideologue: He
< riled the White House staff earlier this year when he told
< reporters that administration has no role in California's
< electricity crisis.
< Hebert did not participate in many of the high-level
< administration discussions about how to respond to the California
< issue.
< Still, Bush would face tremendous opposition from
< congressional Republicans if he chose to dump Hebert.
< Hebert, 39, is a prot,g, of Lott and shares the hometown of
< Pascagoula, Miss., with the GOP leader. Hebert is a former
< chairman of the Mississippi Public Service Commission.
< "It would be a mistake" for Bush to try to replace Hebert,
< said one of his allies in the House.
< Lott, in comments to CongressDaily, said he did not believe
< the administration was seriously considering the plan.
< "I don't think they know what they are doing yet," Lott said,
< noting that there are two other Republican openings at the
< commission.
< Asked if Lott believed Hebert should remain as FERC chairman,
< Lott responded: "Oh, sure."
< One lobbyist said Lott is leading the charge to defend Hebert,
< a move that could make it difficult for Bush to replace him.
< "I don't think that the White House has much leverage,"
< observed Energy and Commerce Chairman Tauzin. Tauzin has not yet
< taken a public position on the issue.
< But Energy and Air Quality Subcommittee Chairman Joe Barton,
< R-Texas, announced his support for Hebert during a hearing
< Thursday.
< Meanwhile, competition is heating up for the two remaining
< Republican slots at the agency.
< Barton also has written a letter to Bush in support of former
< aide Joseph Kelliher, now an Energy Department adviser.
< Senate Energy and Natural Resources Chairman Murkowski backs
< Drue Pearce, a state senator from Alaska.
< State regulators from Texas and Florida are also under
< consideration, sources said.
< Democrats William Massey and Linda Breathitt currently fill
< the other two FERC positions. -- By Brody Mullins
< -=-=-=-=-=-=-=-
<

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