NATURAL GAS SUPPLY ASSOCIATION

CONTACT: Charlotte LeGates

PHONE: 202/326-9316

FAX: 202/326-9334

E-MAIL: legates@ngsa.org

Natural Gas Producers Support Pennsylvania Bill Separating LDCs and Marketing Affiliates

Washington, DC -- The Natural Gas Supply Association today praised a Pennsylvania bill designed to separate ("unbundle") natural-gas-related distribution services and ensure more competitive gas prices for all consumers.

Testifying on NGSA's behalf, Bill Shane, a former chairman of the Pennsylvania Utilities Commission, focused on the consumer benefits of the bill, HB 1068, at a field hearing in Chester County. He emphasized the importance of the bill's strong requirement for separation of marketing affiliates from local distribution companies (LDCs) and for codes of conduct--rules that govern inter-affiliate transactions. He noted that without such separation, non-affiliated marketers would be disadvantaged and would thus be less able to maximize the downward pressure on consumer prices.

Shane pointed out that existing competition for the gas business of industrial and commercial customers has lowered consumer prices and increased natural gas reliability in the state. He predicted that expanded competition would affect both to the further benefit of consumers. Shane also suggested that because so many marketers already work with large customers in Pennsylvania, the extensive marketer paperwork that some advocate is largely unnecessary.

Shane was not the first NGSA representative to testify in favor of the restructuring and unbundling bill. Last month, Bill Benham, vice president, regulatory affairs for Amoco Production Co., explained the bill's many positives to both the House and Senate in successive legislative hearings.

NGSA represents producers and marketers of domestic natural gas.

This page was last updated August 31, 1997.