Luminant hire erodes confidence in state government

Politicians cash in on their connections so routinely that we have a phrase for the exercise: the revolving door. The image captures how lawmakers and staffers leave the public sector and return to lobby for big-dollar clients.

It’s a corrosive practice that undermines public trust in government. And it reinforces a disturbing notion — that big business has big government wired.

That may be common in Washington and Austin, but what happened last week in Texas was more brazen than usual: The secretary of state announced that he is leaving office in midterm to join one of Texas’ largest power generators.

Phil Wilson will continue to work on behalf of citizens through July 6, earning an annual salary of $117,000. The next day, he’ll flip a switch and start working on behalf of Luminant, the wholesale power unit of the former TXU Corp.

So if you have a problem with your electric bill this summer, you know whom to call.

There wasn’t a huge outcry about Wilson’s move or the obvious conflict of interest — or the effect it might have on the debate over electric deregulation.

If Texas is to make dereg work for consumers, as well as power companies, it has to make real improvements, and we have to believe that lawmakers and industry are working in good faith. Although Wilson doesn’t oversee utilities as secretary of state, he has been in the governor’s office since 2002, and electric dereg has been front and center much of the time.

His midterm hiring raises credibility questions and makes me wonder whether other politicos are looking ahead to landing their next job.

Luminant wasn’t embarrassed at all, and its news release ballyhooed Wilson’s title.

If that doesn’t strike you as odd, consider the reaction if another public official had accepted a similar offer. Imagine this headline: "Exxon Mobil names President Bush SVP public affairs."

Of course, presidents don’t go on to corporate jobs, and they never voluntarily interrupt their tenure. It’s also not a common path for elected officials, because most aim for higher office, and a public sellout would end that.

Wilson, 40, was an aide to Gov. Rick Perry, serving as communications director and deputy chief of staff, and he oversaw the Texas Enterprise Fund that gives away money to companies expanding in Texas. Perry appointed Wilson secretary of state about a year ago.

In a statement last week, Perry said Wilson is a trusted adviser and dear friend, and he didn’t comment on whether the move is appropriate.

But this doesn’t pass the smell test. Did Wilson win the job for favors he did in the past — or because he can secure favors in the future? Or is his access to power just so valuable?

As a nation and state, we struggle with the revolving-door issue. We don’t want to bar people from good jobs just because they were in public service. And it would be crazy to keep the most informed experts from working in their fields.

Yet we know that abuses can occur, so we’ve enacted ethics laws to draw some boundaries.

Members of Congress, for instance, are now barred from working as registered lobbyists for two years after leaving office. (Critics say former lawmakers get around the rule by serving as "strategic advisers" to select industries.) Texas also prohibits former board members and executive directors from lobbying their agencies for two years.

Another rule bars top state officials from lobbying on "particular matters" in which they "participated" while in office.

That assessment is done on a case-by-case basis, and the rules don’t appear to restrict Wilson, whose job will include overseeing Luminant’s lobbying.

Luminant says it simply wants to hire the best people to help navigate the political waters in Austin.

Not to worry. Last year, when the utility kept the Legislature from blocking the TXU sale or adding tough conditions, it spent about $6 million on lobbying.

And it enlisted some of the most powerful people in the state, including James Baker, former U.S. secretary of state; Don Evans, former U.S. commerce secretary; and Ron Kirk, former Dallas mayor.

Consumer advocates and many residents are already losing faith in the state’s willingness to stand up to electric companies. While others have backed away from deregulation, Texas is staying the course despite soaring prices.

If the system is going to last, we have to tweak it and fix it. Hiring a sitting state official looks like you’re trying to game it.