Friends In High Places

By DAVID ELLIS

Does John Sununu aim to replace Energy Secretary James Watkins with an ideological soul mate? Watkins has pursued an independent policy of conservation and regulation that has irritated the White House chief of staff. If Watkins is forced to quit, which some insiders expect this summer, deputy assistant secretary Victor Stello is an early favorite for the Cabinet post. Stello, a longtime pal of Sununu's, shares his enthusiasm for relaxed regulation of nuclear power. The Administration nominated Stello for a job supervising the nation's nuclear-weapons programs last year but withdrew his name and installed him at a lower level after he was criticized during confirmation hearings for his past performance at the Nuclear Regulatory Commission. Witnesses accused Stello of deliberately delaying a probe into health and safety procedures at a New York State nuclear-power plant.

With reporting by Sidney Urquhart