New FERC chief Hoecker plans to keep electric industry restructuring on track

James J. Hoecker, first new chairman of the Federal Energy Regulatory Commission since 1993, plans to keep electric industry restructuring on track.

Hoecker, who replaces Elizabeth Moler-recently named deputy Energy Secretary-also has garnered strong reviews from the U.S. natural gas industry.

President Bill Clinton made the appointment effective immediately when he announced it 2 weeks ago (OGJ, June 23, 1997, Newsletter). A Senate confirmation hearing is not required until Hoecker's term expires next June.

Electric restructuring

Hoecker said he plans "to keep the procompetitive restructuring of the bulk electric power market on track."

But he added electricity restructuring must occur at the state and regional levels to be effective, because FERC has authority over less than half of bulk power sales.

Moler's departure and the previously announced resignation of Commissioner Donald Santa effective July 1 will leave the five-member commission with two vacancies. Remaining commissioners are William Massey and Vicky Baily.

The commission can function, as it has several times in the past, with three commissioners, since that is a quorum.

The five commissioners serve 5-year staggered terms. No more than three may belong to the same political party. Hoecker and Massey are Democrats, and Baily is a Republican.

Hoecker is the first commissioner to have once served on the FERC staff. He was assistant general counsel for oil and gas litigation, assistant general counsel for rulemaking and legislative analysis, and a legal adviser to former commissioners Matthew Holden and Georgiana Sheldon.

He has practiced law in the areas of gas production, transmission, and distribution, as well as on electric utility matters. Hoecker was with Keck, Mahin, & Cate during 1988-90 and with Jones, Day, Reavis & Pogue during 1990-93.

Industry reactions

The Interstate Natural Gas Association of America said Hoecker should be an "outstanding chairman."

It said, "We hope the openings at the commission are quickly filled with the same high caliber of appointment."

The American Gas Association noted Hoecker's gas industry experience: "He participated in the restructuring of the natural gas industry and is well-suited to lead FERC effectively as it continues to adapt its regulations to the changing energy marketplace."

The Natural Gas Supply Association said, "Over the past 4 years, he has proved to be a thoughtful leader on the commission, and we look forward to his forging a new consensus on FERC's many pending issues."

It said FERC has worked in the past decade to free gas production, marketing, and other services from federal regulation.

"Today, the commission's challenge centers on the interface between those deregulated sectors and the transmission sector, which, because it remains largely a monopoly, must continue to be subject to close federal scrutiny and control."