Panel finds ex-chairman of FERC violated no laws or ethics policies
Houston Chronicle, 09/21/01
Houston man held for lapsed visa, FBI says
Houston Chronicle, 09/21/01
Enron to go ahead with legal steps
The Economic Times, 09/21/01
Regulators end consumer choice, a last vestige of California's failed power deregulation
Associated Press Newswires, 09/21/01
Judicial panel set up to probe Enron deal
The Times of India, 09/21/01
Terrorist attacks derail resolution of Enron issue
The Economic Times, 09/21/01
COMPANIES & FINANCE INTERNATIONAL - PG&E files plans for restructuring.
Financial Times, 09/21/01
COMPANIES & FINANCE INTERNATIONAL - Attacks spark surge in oil transport costs.
Financial Times, 09/21/01
Pacific Gas & Electric's Bankruptcy Plan Would Split Utility Into Two Firms
KRTBN Knight-Ridder Tribune Business News: San Jose Mercury News - California, 09/21/01
USA: Enron exec, ex-FERC head cleared in ethics probe.
Reuters English News Service, 09/20/01



Sept. 21, 2001
Houston Chronicle
Panel finds ex-chairman of FERC violated no laws or ethics policies 
Reuters News Service 
WASHINGTON -- The investigative arm of Congress Thursday said there was no evidence the former chairman of the Federal Energy Regulatory Commission violated ethics regulations by asking Enron Corp.'s chairman for political support. 
The General Accounting Office said its investigation found that former FERC Chairman Curtis Hebert did not accept anything of value from Ken Lay and did not discuss any of the giant electricity and natural gas company's cases pending before the agency. 
In January, President Bush named Hebert, a Mississippi Republican, the acting chairman of FERC. However, rumors spread that Bush planned to replace Hebert with Patrick Wood, a Texas utility regulator. 
The GAO said it investigated a telephone conversation Hebert had with Lay in February. During that exchange, the acting FERC chairman asked Lay, who is a close friend of Bush's, for his endorsement to continue in the job. 
"Mr. Lay said that because Mr. Hebert was pressing him for an endorsement, he took the opportunity to ask him about his position on (electricity grid) access, an issue that he and Mr. Hebert did not agree on," the GAO wrote. 
"Mr. Lay told us that during the conversation, Mr. Hebert said that FERC was addressing some issues and that Mr. Lay would probably be happy with the direction in which FERC was moving," the GAO said. "This statement conflicts with Mr. Hebert's recollection." 
The GAO concluded that no criminal laws or ethics regulations were violated. Regardless of what was said about open access, the GAO said no criminal laws or ethics regulations were violated during the conversation. 

Sept. 21, 2001
Houston Chronicle
Houston man held for lapsed visa, FBI says 
By MARY FLOOD and DALE LEZON 
Copyright 2001 Houston Chronicle 
A Houstonian named Asem Atta, reportedly of interest to federal authorities investigating terrorism, is in custody of the Immigration and Naturalization Service because he stayed in this country longer than his papers allowed, an FBI spokesman said Thursday. 
But Bob Doguim said the FBI "has no interest in" Atta, 23, an Enron employee who lived in Midtown. 
"We're interviewing a lot of people, a lot who have the Arabic equivalent of the name Bob Jones," said Doguim. "Obviously, we're talking to a lot of folks from the Middle East and we're finding a lot of wonderful people, some who've overstayed their visit. That doesn't make them criminals." 
Doguim said Atta is what the INS calls "out of status." The INS would not comment. 
Enron would say only that it did employ Atta, but that he is not now at work. 
A friend responding to a Chronicle e-mail query Thursday said Atta has been missing since right after the Sept. 11 explosions in New York and Washington, and his friends were worried about him and did not believe he could have been involved. 
The Washington Post reported that Atta is a Pakistani national and former resident of Kuwait and was being sought for questioning in the attacks. 
From his own online diary and resume, it appeared that Atta came to Houston in August 1999 from Wichita, Kan. His resume and school records indicated that he lived there at least since 1994. 
One of the alleged terrorists had the last name Atta and there has been some question whether it is simply a common Arabic surname or one purposely adopted by some in the terrorist group, perhaps because it is common. 


Enron to go ahead with legal steps
Soma Banerjee

09/21/2001
The Economic Times
Copyright (C) 2001 The Economic Times; Source: World Reporter (TM)

THE TERRORIST attack on America has its fallout on the Dabhol controversy as well. Enron has declared its intention to press ahead with legal measures that would, it claims, impose a financial obligation of $5 billion on the Indian parties involved in the dispute. 
The renewed emphasis on legal recourse would appear to be a direct fallout of the cancellation of the Prime Ministers planned visit to New York later this month, during which Enron hoped to press its case through high level interaction between the governments of India and the US.
This issue which had been taken up at the highest level by the PMO, finance ministry and power ministry in the past few months was expected to be discussed billaterally between the two countries. 
In fact, the PMO had even directed the concerned ministries to find a solution to resolve the payment crisis. 
The government had set up a committee led by Indian financial institutions to work out an exit route for the US power developer which had already decided to exit the project. 
Although, the report submitted by this committee was not accepted by Enron who has demanded its stake to be bought out at a minimum cost of $ 1 billion, a dialogue between the FIs and Enron had been initiated to find a solution. 
However, now following the recent developments in the US which has sent the economy and the government in a tizzy, it is most unlikely that Enron will be able to cut any ice with US government officials at this juncture. 
Although, it is not known as to what the fallout of the arbitration proceedings would be, the Indian government has also preferred to take advantage of the developments and has remained low keyed. 
According to Enrons estimates, the project incurs an additional cost of Rs 500 crore every day on account of interest during construction. 
Moreover, the rejigging of the project and the rescheduling has already hiked the project cost by $14 million . The total increase in the project cost would be to the tune of about 39 per cent with a whopping financial liability of Rs 15,000 crore on MSEB if Enron wins the case. 
The companys concern over the delay and the fallouts of the recent developments are reflected clearly in a recent communication by the company to the Centre. 
The project has not been in operation and stoppage of fund disbursals for maintenance by the lenders is affecting the health of the project too. According to this communication international financial institutions who have a total exposure of $ 1.1 billion too now want to exit from the project, and would want their stake to be bought out.

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. 	


Regulators end consumer choice, a last vestige of California's failed power deregulation
By KAREN GAUDETTE
Associated Press Writer

09/21/2001
Associated Press Newswires
Copyright 2001. The Associated Press. All Rights Reserved.

SAN FRANCISCO (AP) - State power regulators voted to suspend a key aspect of the state's deregulation effort, leaving California electricity customers unable to buy power from anyone other than their local utility. 
The state Public Utilities Commission on Thursday also abruptly delayed a decision for at least two weeks on whether to grant the state's power-buying agency the authority to raise electric rates for millions of Californians without commission review.
That approval is necessary to encourage Wall Street to buy $12.5 billion in bonds the state is issuing to recoup the $9.5 billion it has spent buying power for three financially ailing utilities, Gov. Gray Davis has said. 
Critics, including the utilities, consumer advocates, businesses and some PUC members, say following the Legislature's orders to surrender the commission's rate-setting authority only will hurt consumers. Commissioner Jeff Brown said protecting ratepayers from unjust and unreasonable costs is part of the PUC's job. 
Allowing consumers to buy power directly from retailers such as Green Mountain Energy or Enron Corp. was one of the key elements of the failed deregulation system passed in 1996. 
Its end will affect customers around the state, including more than 170 school districts that had pooled together to seek a new electricity provider. About 200,000 customers had switched utilities by September. 
The PUC voted 3-2 to keep ratepayers from switching from their utilities to other power providers as of Thursday, dropping previous efforts to suspend consumer choice retroactive to July or earlier. 
Current direct access customers can remain with their energy providers through the end of their contracts. 
After the Legislature enlisted the water department to buy power for the customers of financially ailing Pacific Gas and Electric, Southern California Edison and SDG&E, it ordered the PUC to suspend so-called direct access to prevent customers from leaving the utilities. 
To get its billions back, the state plans to issue bonds. It has been told by Wall Street it can expect better rates if it shows it has a guaranteed and expandable incoming flow of money. 
Consumer advocates say a suspension also will keep thousands of big businesses from switching providers for cheaper prices and leaving smaller residential customers stuck with the state's power bill. 
"What direct access really means is direct access to the pocketbooks of small consumers," Paul Perkovic of San Mateo told the commission. 
The commission had called for a retroactive suspension to force businesses to return to utilities and pay their share of the state's mammoth power bill. 
The businesses left after learning power contracts the state had cut in the spring likely would have California ratepayers paying more than if they bought power elsewhere. 
The PUC on Thursday also approved a 12 percent rate increase for residential customers of San Diego Gas and Electric Co. 
--- 
On the Net: 
http://www.cpuc.ca.gov

AP Photo CAGN121 
Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. 	


Judicial panel set up to probe Enron deal

09/21/2001
The Times of India
Copyright (C) 2001 The Times of India; Source: World Reporter (TM)

MUMBAI: Negotiations in the multi-billion dollar Enron deal, the consent letters issued by the state authorities, and the power purchase agreement (PPA) signed between the US power company and the Maharashtra State Electricity Board (MSEB) will come under fresh scrutiny by the judicial commission set up by the state government on Wednesday. 
The probe panel to be headed by a retired justice of the supreme court will be invested with powers under the commission of inquiry act.
press conference held at Mantralaya after the weekly cabinet meeting on Wednesday. The cabient meeting, it is learnt, witnessed a heated debate as the Nationalist Congress Party was not in favour of the probe and also disputed the appointment of a supreme court judge for the inquiry. 
"The committee will check whether the licenses, letters of consent and other clearances given by various authorities for this project were in line with the Electricity (supply) Act, 1948," Mr Deshmukh said adding that the committee has been given six months to finalise its report. 
He said the terms of reference of the inquiry committee were broadly the same as demanded by the leaders of the Left Front parties who are supporting the Democratic Front government. 
"The committee will probe into the circumstances that led to the renegotiations of the Enron deal. The stand taken by individuals responsible for renegotiating the deal and whether the decision on the second phase of the project was in the interest of the state will also be looked into by the inquiry commission," Mr Deshmukh said. 
The second phase of the Enron project was finalised by the erstwhile Shiv Sena-BJP government with the then energy minister Gopinath Munde declaring that the deal was renegotiatiated to ensure adequate supply of power to the state. He claimed that the power tariff was also considerably reduced and announced a mega project of 2,100 MW at Dabhol. 
The then chief minister Manohar Joshi and Mr Munde had filed an affidavit in the Bombay high court justifying the renegotiation and the addition of phase-II and LNG terminal as compulsory part of the revised PPA. 
Mr Deshmukh said the probe panel will examine the deal in totality and will present its recommendations to the state government in six months time. 
The move to constitute a judicial commission was suggested in the voluminous 181-page report of the Madhav Godbole committee appointed by the state government to renegotiate the power tariff with the DPC. 
Interestingly, the DPC on Tuesday invoked the central government counter guarantee to the tune of Rs 378 crore as the Maharashtra State Electricity Board (MSEB) had failed to pay up for the power used for the three months from April-June. This is the second such occasion that the DPC has invoked the Union government's counter guarantee. 
The Godbole panel had recommended renegotiations with the DPC officials in a bid to reduce the energy tariff. Pointing at the DPC's ``distorted pricing policy'' the Godbole panel had suggested delinking the changes in the rupee-dollar exchange rate so as to bring down the tariff.

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. 	

Terrorist attacks derail resolution of Enron issue
Girish Kuber

09/21/2001
The Economic Times
Copyright (C) 2001 The Economic Times; Source: World Reporter (TM)

LAST Tuesdays terrorist attacks in US seems to have had an unexpected casualty the resolution of the imbroglio sorrounding the Enron-promoted Dabhol power project. 
According to highly placed sources in the ruling National Democratic Alliance , Prime Minister Atal Bihari Vajpayee wanted to resolve the Enron impasse before his US tour.
According to the earlier schedule, the PM was to leave for the US on September 25 to attend a United Nations meet. 
However, Black Tuesday altered the scenario forcing the PM to cancel his tour. 
According to sources, the PM wanted to resolve the issue before his US visit so as to avoid any uncomfortable questions in his meeting with US-based industrialists. Enron would certainly have been a major issue had he gone to the US, he said. 
This forced the IDBI-led financial institutions to propose various measures to end the standoff. However the PM had to call off his US tour. As a result, the Maharashtra government yesterday announced a judicial inquiry into the Enron deal. 
Interestingly, the Centre does not support the judicial probe, sources indicated. The state governments decision smacks of political vendetta which, we fear, would again mess up the industrial atmosphere, feels the Centre. The state government has been informed about the Centres views on the issue, it is learnt. 
The finance and the legal departments of the state government had also cautioned the political leadership about the judicial inquiry. We already have initiated a series of actions including legal against Enron. There was no need to open one more front in this battle, a senior official from the state government said. 
Centre government sources say that the proposed probe will be nothing but a political tool. However, the feeling amongst some elements of the state government is that the judicial probe will unearth the corruption part of the deal, and once that is proved, the power purchase agreement (PPA) between Enron and MSEB can be declared null and void. As a result, the state will not have to pay any damages.

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. 	

COMPANIES & FINANCE INTERNATIONAL - PG&E files plans for restructuring.
By JULIE EARLE.

09/21/2001
Financial Times
(c) 2001 Financial Times Limited . All Rights Reserved

Pacific Gas & Electric Co, which is operating under bankruptcy protection, yesterday said it had filed a significant restructuring plan that will pay its creditors in full and avoid rate increases for customers. 
PG&E Corp and its utility PG&E jointly filed a plan of reorganisation in the US Bankruptcy Court yesterday. The companies said the official creditors' committee supports the plan.
Under the plan, Pacific Gas and Electric will be spun off from PG&E Corp, creating two separate companies. Pacific Gas & Electric Co shares will be distributed to PG&E shareholders. 
PG&E filed for Chapter 11 protection with $9bn in losses in April. It has about 30,000 creditors, including power generation companies and banks. The energy traders Enron, Dynergy and Reliant are among these. 
"This plan will allow Pacific Gas & Electric to move out of Chapter 11 as a financially strong business positioned to continue safe, reliable and responsible delivery of gas and electricity to its customers, pay all claims in full and without asking for a rate increase or a state bailout," said Robert Glynn, PG&E Corp president. He expected the restructuring process to be completed by the end of 2002. 
The reorganised Pacific Gas & Electric will continue to own and operate existing retail electricity and natural gas distribution systems. The electricity generation, transmission and natural gas transmission operations under Pacific Gas & Electric will be part of PG&E. 
Mr Glynn said he hoped the shake-up would not lead to job losses. 
(c) Copyright Financial Times Ltd. All rights reserved. 
http://www.ft.com.

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. 	

COMPANIES & FINANCE INTERNATIONAL - Attacks spark surge in oil transport costs.
By ADRIENNE ROBERTS.

09/21/2001
Financial Times
(c) 2001 Financial Times Limited . All Rights Reserved

Crude prices may have slipped, but the price of transporting oil has soared in the wake of last week's terrorist attacks on the US. 
Last Monday, it cost $7.65 a tonne to ship a standard cargo of 250,000 tonnes of crude oil from the Arabian Gulf to Japan. By yesterday, it cost 34 per cent more at $10.28 a tonne, adding $657,500 to a freight bill.
To charter a ship would have cost about $27,000 a day last Monday. Owners are now charging $42,000. 
Even on the North Sea route, James Tweed at Global Freight Forwards in London points out that the cost of moving half a million barrels of crude oil was $430,000 yesterday, compared with $315,000 last Tuesday. 
Last week's attacks, and the uncertainty they created about US military retaliation, put pressure on an already rising market. 
The events triggered a rush for very large crude carriers (VLCCs) with charterers booking tankers well into the future to ensure that they can move oil from the Arabian Gulf if there is conflict in the region. 
Uncertainty about insurance costs has also put pressure on the market. "Tanker owners expect war risk insurance to go up, so they want to try to write that into their freight rates as quickly as possible," said Mr Tweed. "I think rates will start to slip after this initial spike, but they're going to take time to come down." 
Last week's attacks have also pushed up ship-owners' costs. The price of bunker oil for VLCCs on the Arabian Gulf-Japan route has increased from about $148 a tonne to $158 a tonne since last Monday. 
Prices were already on the increase following consolidation among shipowners, some of whom have formed a tanker pool, removing some ships from the market in order to support prices. In mid-August, freight rates on the Arabian Gulf-Japan route were only about $5.20 a tonne. 
"Short-term, there's been a spike. Long-term, we think prices will decline because of the volume of ships being delivered," said John Banaszkiewicz at SSY Freight Futures. There are 43 VLCCs on order next year and a further 31 due for delivery in 2003. 
Meanwhile, he says, owners can pass the costs of war insurance on to clients, "but there's still the psychology of being in that area when there's a potential war risk. Owners don't want their ships delayed in a port for ages or hit by a missile". 
Scott Moncrieff, head of Enron's global tanker freight group, said: "There's a lot of hype at the moment. A lot of owners are sitting on the fence waiting to see how much extra war risk insurance will be required." 
Lloyd's List, the maritime publication, reports that tanker managers have received quotes of as much as 1 per cent of the insured value of the ship for loadings in some parts of the Gulf. 
Experts believe that freight prices will find support for as long as uncertainty persists about US retaliation for the attacks. 
"Whatever the scale or location of the US response, I think freight will probably strengthen again," said Mr Moncrieff. 
(c) Copyright Financial Times Ltd. All rights reserved. 
http://www.ft.com.

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. 	

Pacific Gas & Electric's Bankruptcy Plan Would Split Utility Into Two Firms

09/21/2001
KRTBN Knight-Ridder Tribune Business News: San Jose Mercury News - California
Copyright (C) 2001 KRTBN Knight Ridder Tribune Business News; Source: World Reporter (TM)

PG&E filed a plan Thursday to pay off $13.2 billion in debt that it says won't raise rates, but outraged consumer advocates and some California officials argue the proposal violates state law and will lead to higher prices. 
The blueprint calls for splitting the company in two, allowing it to avoid regulation by the California Public Utilities Commission. It shifts some of its most valuable assets, including transmission lines and hydroelectric plants, over to its non-regulated parent company.
Although company executives described it as "plain vanilla bankruptcy work," the 244-page reorganization plan pushes the envelope on the power of federal bankruptcy law and is sure to come under intense scrutiny in coming months. Company executives said they anticipate the plan would go into effect Jan. 1, 2003. 
"We feel great about it," Robert Glynn, PG&E Corp.'s chief executive told analysts in a conference call Thursday. 
PG&E filed the plan in U.S. Bankruptcy Court in San Francisco, less than six months after its utility filed bankruptcy. 
The creditors committee, the 11-member body representing thousands of creditors in the landmark bankruptcy, said it "fully supports this plan." 
Others clearly do not. 
"It's a total and complete disaster for consumers," said Assemblyman Fred Keeley, D-Santa Cruz, who is the Assembly's Speaker pro tem. "They have fashioned a way to conduct a regulatory jail break. They are going to completely remove themselves from any regulatory oversight by the state of California." 
Keeley said he planned to talk to the state attorney general and the PUC about possible legal challenges to the PG&E plan. 
Nettie Hoge, executive director of The Utility Reform Network (TURN) in San Francisco, said she was shocked at how audacious the plan is. Hoge said she suspects that the company filed it in the middle of the terrorism crisis to escape public scrutiny. 
"We haven't seen anything this bold and outrageous in the whole history of TURN," Hoge said. "They are plundering all of the beneficial assets of the utility and they're not giving us anything back." 
The company's strategy is to split itself in two. It would shift the power plants, in-state gas pipes, gas storage, electricity transmission lines and the vast network of hydroelectric plants of Pacific Gas & Electric Co., the regulated utility, over to PG&E Corp., the non-regulated parent company, for $4.6 billion in cash and some debt. 
The stripped-down utility would stick to the retail gas and electric business going forward, although it would keep two power plants and some other equipment. The goal would be two separate publicly traded companies. The plan doesn't call for layoffs. 
PG&E proposes that the utility's assets would become three new units under PG&E Corp. One unit would focus on generating power, one would focus on electricity transmission and one on gas transmission. The proposed unregulated units would issue investment-grade bonds to raise the cash to pay off creditors in a combination of cash and tradable IOUs. 
The plan requires not only the vote of the entire body of creditors, but the approval of the bankruptcy judge and three federal regulatory agencies, including the Federal Energy Regulatory Commission. 
PG&E Corp. Chief Financial Officer Peter Darbee told analysts Thursday that the company had received a "highly confident letter" from the Lehman Brothers investment bank indicating it could get investment-grade ratings for each of the businesses. 
The proposed retail company would buy gas on the market, and electricity from the proposed power-generating unit of PG&E Corp. under a 12-year contract at an average of 5 cents a kilowatt hour. Retail customers won't be affected, executives said. 
Others are concerned because the plan sidesteps the PUC, which is not being asked to approve it. It also appears to fly in the face of state law. Section 377 of the California Public Utilities Code, signed into law earlier this year, requires utilities to keep hold of their power plants until Jan. 1, 2006. 
Gov. Gray Davis said the plan troubled him. 
"This plan transfers more power to the federal government, which, during the last 18 months, has by and large treated California ratepayers shabbily," he said. "The California PUC, while far from perfect, has proven to be a more aggressive defender of ratepayers." 
Conservationists worry that the utility's hydroelectric network, which includes 140,000 acres of land that is home to old-growth forest, could be plundered if it is transferred to a public company free of public oversight. 
"Going forward in the brave new world of Duke and Enron and everyone else profits matter before necessarily these other public benefits," said Stephen Wald, coordinator of the California Hydropower Reform Coalition, representing 22 river-conservation groups. 
PG&E argues that federal bankruptcy law trumps state law. The first page of the reorganization plan lists Harvard law professor and constitutional-law heavyweight Laurence Tribe as co-counsel. There's legal precedence for the move, and FERC has previously allowed utilities to divide, company executives told analysts Thursday. 
Alan Gover, PG&E Corp.'s bankruptcy counsel, said the company isn't required to consult the PUC because the plan doesn't propose a rate change and the only area that is the PUC's business is rates. He said there are legal precedents for the shift of assets "in the railroad area" and in the case of the 1988 bankruptcy of Public Service Co. of New Hampshire. 
FERC Commissioner William Massey confirmed that FERC has approved the transfer of power plants and related equipment to affiliated and unaffiliated companies but said he couldn't comment in this case or whether the state would have any legal claim to challenge such a move. 
The PUC said it was prepared to fight the plan. 
"We're entitled to say-so under state law," said Commission President Loretta Lynch. 
--By Jennifer Bjorhus and Steve Johnson 
--Mercury News Staff Writer Michael Bazeley contributed to this report.

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. 	

USA: Enron exec, ex-FERC head cleared in ethics probe.

09/20/2001
Reuters English News Service
(C) Reuters Limited 2001.

WASHINGTON, Sept 20 (Reuters) - The investigative arm of Congress on Thursday said there was no evidence the former chairman of the Federal Energy Regulatory Commission violated ethics regulations by asking Enron Corp.'s chairman for political support. 
The General Accounting Office said its investigation found that former FERC Chairman Curtis Hebert did not accept anything of value from Ken Lay and did not discuss any of the giant electricity and natural gas company's cases pending before the agency.
The GAO investigation was requested by Sen. Joseph Lieberman, a Connecticut Democrat and former candidate for vice president. 
Soon after taking office in January, Bush named Hebert, a Mississippi Republican, the acting chairman of FERC. However, rumors spread that Bush planned to replace Hebert with Patrick Wood, a Texas utility regulator. 
The GAO said it investigated a telephone conversation Hebert had with Lay in February. During that exchange, the acting FERC chairman asked Lay, who is a close friend of Bush, for his endorsement to continue in the job. 
"Mr. Lay said that because Mr. Hebert was pressing him for an endorsement, he took the opportunity to ask him about his position on (electricity grid) access, an issue that he and Mr. Hebert did not agree on," the GAO wrote. 
"Mr. Lay told us that during the conversation, Mr. Hebert said that FERC was addressing some issues and that Mr. Lay would probably be happy with the direction in which FERC was moving," the GAO said. "This statement conflicts with Mr. Hebert's recollection." 
The GAO concluded that no criminal laws or ethics regulations were violated. 
Regardless of what was said about open access on the electricity grid, the GAO said no criminal laws or ethics regulations were violated during the conversation. 
Lay said he would not support Hebert continuing as chairman and "neither party offered to use his influence for the benefit of the other," the GAO said. 
Wood was confirmed by the U.S. Senate as a FERC commissioner on May 25. The White House moved him into the chairman's position last month, after Hebert announced his resignation on Aug. 6 to join utility holding company Entergy Corp. as vice president for governmental and regulatory affairs.

Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved.