
                         THE VIRGINIAN-PILOT
                 Copyright (c) 1994, Landmark Communications, Inc.

DATE: SUNDAY, June 26, 1994                    TAG: 9406260145 
SECTION: LOCAL                     PAGE: B3    EDITION: FINAL  
SOURCE: BY ESTHER DISKIN, STAFF WRITER 
DATELINE: 940626                                 LENGTH: Medium

COMMISSIONER SAYS SHE UNDERSTANDS EFFECT ON BUSINESS

{LEAD} One commissioner at the federal agency that may have derailed the Lake Gaston pipeline for years says she can empathize with Virginia Beach businesspeople's fears over how a water crisis can hurt a company's bottom line.

Before Vicky Bailey became a commissioner at the Federal Energy Regulatory Commission, she helped run a family cosmetic-supply business. Customers are the ``lifeblood'' of any business, she says, and a water shortage can send those customers fleeing.

{REST} In the battle over the 76-mile Lake Gaston pipeline, she says, ``businessmen are getting caught in the crunch.''

Nonetheless, Bailey says, she isn't likely to change her mind about the need for an in-depth environmental study. The study could take years, and there's no guarantee that the commission will grant a permit for the pipeline.

The commission, which oversees nongovernment hydroelectric projects, is the final government hurdle for the pipeline. The commission has jurisdiction because the lake straddling the North Carolina-Virginia border was created by a Virginia Power hydroelectric dam.

There are five commissioners leading the independent, quasi-judicial agency. Four of them, including Bailey, were appointed no more than a year ago. The chairwoman, Elizabeth Moler, served as a commissioner for several years and moved to the top job under the Clinton administration.

Bailey, 42, graduated from Purdue University's School of Management and worked in a cosmetic-supply business owned by her husband's family. In 1986, she was appointed to the Indiana Regulatory Commission, a job she left to join the energy commission in Washington. The five commissioners must vote on the final permit for the $142 million pipeline, but they did not vote on the decision to conduct an environmental study. The commission's staff made the recommendation, and Moler, as the top administrator, acted on it.

Virginia and North Carolina congressmen received a letter from Moler on Thursday afternoon. Because it had only Moler's signature, Virginia Beach officials speculated that Moler acted unilaterally.

Bailey, who said she is not familiar with the specifics on the Lake Gaston case, said Moler's letter represents the opinion of the entire commission. She said commissioners realize that the decision to conduct the environmental study is ``very controversial.''

Bailey said she is prepared to stick to that decision, but she notes that ``we are definitely able to reverse ourselves.''

Both Moler and Bailey said the study could be done quickly. ``It's not our objective to delay,'' Bailey said. ``We have to take a good, hard look at the environmental consequences.''

She said public sessions to determine the scope of the environmental study will begin soon. At that time, Virginia Beach business owners can make their case about the economic impact of delays to the pipeline, she said. ``The people who feel strongly about the business community can be there.'' by CNB