Watching Government Surprise at DOE

WithPatrick Crowfrom Washington, D.C.
[email protected]

Outgoing Transportation Secretary Federico Pena's nomination to be U.S. Energy Secretary was a surprise and disappointment for the Washington energy community.

Until the night before President Clinton's announcement, the leading candidate for the DOE post was Elizabeth Moler, the Federal Energy Regulatory Commission chairman.

Moler is extremely experienced on energy issues and is widely respected. As a Senate energy committee attorney during 1976-88, she worked on all the laws that now are the foundations of U.S. energy policy.

In 1988, President Reagan named her to a FERC seat. Upon his election, Clinton designated her FERC chairwoman. While at FERC, Moler has capably worked on gas pipeline and electricity deregulation issues.

Hispanic needed

Pena was leaving DOT and Washington but was persuaded to stay because Clinton wanted Hispanics represented in his 14-member cabinet.

Clinton praised outgoing DOE Sec. Hazel O'Leary for making "huge strides" at the multi-missioned department while fostering a new era of openness.

He said the "diverse and sprawling" DOE needs an experienced manager, and Pena already has "proven himself as the talented leader of a large and complex government agency."

Clinton said Pena "will continue to streamline and reinvent" DOE while "working with the energy industry to create economic opportunities by using energy in a way that will not hurt our environment."

Pena said he hoped to bring more efficiency to DOE but mostly praised O'Leary's achievements.

Reactions

Several oil and gas industry groups, who had wanted Moler to get the job, had bitter "no comments" about Pena.

Off the record, an official at one group said, "We're very disappointed with the appointment. It's just another example of politics as usual at the White House."

A lobbyist said, "Moler was clearly the best person for the job. The only good thing in this is that we won't have to worry about her replacement at FERC."

Jerald Halvorsen, the Interstate Natural Gas Association of America president, said, "Having worked together on improving pipeline safety, the pipeline industry has fostered a very good relationship with Sec. Pena at the Department of Transportation. We look forward to building upon this relationship with the secretary at DOE."

Denise Bode, Independent Petroleum Association of America president, said Pena is not familiar with oil and gas issues: "We look forward to hearing about Mr. Pena's goals for the department."

Sen. Frank Murkowski (R-Alas.), energy committee chairman, plans to hold Pena's confirmation hearing in late January or early February.

He said the new energy secretary faces tough challenges in the areas of nuclear safety, electric power industry restructuring, and oil and gas development and pledged that Pena would get an energetic and thorough review.

Nevertheless, Pena's confirmation is virtually assured.