FERC'S NEW CHAIRMAN

Jan. 1, 1990
Martin Allday, the Federal Energy Regulatory Commission's new chairman, intends to continue a steady push toward making the U.S. gas industry more competitive. But where Allday will differ from his predecessor, Martha Hesse, who left FERC to join a Chicago bank, is that he will be trying to achieve the same goal in a more casual way. That's not really a reaction to Hesse's hard-nosed style. That's just the way Allday is. Hesse held FERC's helm so tightly that some

Martin Allday, the Federal Energy Regulatory Commission's new chairman, intends to continue a steady push toward making the U.S. gas industry more competitive.

But where Allday will differ from his predecessor, Martha Hesse, who left FERC to join a Chicago bank, is that he will be trying to achieve the same goal in a more casual way.

That's not really a reaction to Hesse's hard-nosed style. That's just the way Allday is.

Hesse held FERC's helm so tightly that some commissioners complained to Congress about their lack of influence.

OPEN DOOR POLICY

Allday has an open door policy - literally. When he wants to confer with another commissioner, he simply goes to their office. And he's already polling them on what they want to see FERC accomplish this year.

He also has wandered through the FERC building, introducing himself to the staff. "We're going to smile at the FERC. We're going to smile at the FERC if it kills me," he joked at a press conference last week.

The former Midland, Tex., lawyer's folksy style does not conceal the fact that he is a reasonably sharp attorney and a quick learner.

For instance, he probably could have gotten an appeals court to postpone its deadline for revising Order 500 (OGJ, Dec. 25, 1989, p. 35) because he has been on the job only a few weeks.

Instead, he faced the problem.

Allday had more to say at the press conference on his management philosophy than he did on gas industry issues.

He hopes the White House will nominate someone well versed in electrical power issues to the vacant FERC seat to give the commission more balance.

He said more drilling is needed to avert long term gas shortfalls. "I will tell you that at peak seasons there's going to be a shortage."

He noted the gas producing industry has been "crumbling around us." He said tax incentives might help a little but price is the solution,

He opposes FERC using its powers to abrogate gas industry contracts.

And he has no opinion on incentive ratemaking initiatives for pipelines, but stressed that incentive is what turns the world on. "Profit is not a bad word in my background," he said.

A VIEW OF HIS JOB

Allday is not concerned about the FERC chairman's post being a high turnover, burnout job in recent years.

And for him, the chairmanship is not a stepping-stone to a more lucrative position in private industry. "I've got no place to go except back to Midland," he said.

Allday plans to travel little and make few speeches in the next year.

"My job, as I view it, is at my desk primarily. Until I think I can handle my job better, I need to be at that desk."

Copyright 1990 Oil & Gas Journal. All Rights Reserved.