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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