Reaching a 30 Tcf gas market will greatly benefit the nation’spower market, so it only makes sense that electric utilities shouldhelp the gas industry achieve that goal, said Thomas Kuhn,president of Edison Electric Institute (EEI). Kuhn, speakingyesterday at the Natural Gas Roundtable in Washington D.C., saidthe convergence between the industries has become such a force thatthe EEI, whose members generate and distribute roughlythree-fourths of the nation’s electricity, is planning to take amore active role in helping the gas industry meet its demand.

“It is our goal to have a commitment to a healthy gas industryin respect to helping all segments of that industry build theinfrastructure needed to get to the 30 Tcf area so that we(electric companies) can have the long-term arrangements and thelong-term stability of supply that we’re going to require…”

To that end, the EEI has been extremely active on the policyside to help the gas industry reach the 30 Tcf market, said AndyKatz, senior attorney for the EEI. It filed comments concerning thenotice of proposed rulemaking (NOPR) and notice of inquiry (NOI).The EEI supported and Kuhn participated in the conference onNortheast demand, which took place in early June. Katz also saidthe EEI has lobbied for FERC to loosen restrictions on secondarycapacity. “Gas-fired generation is going to be the biggest piece ofthat 30 Tcf market, so that makes us very active in the gas arena.”

Kuhn said collaboration will lead to a more effective policyplan for both industries. It makes sense for industry associationsto work together, he said, because they face similar public policyissues such as the environment, Y2K and reliability. Also, electricand gas associations appeal to the same decision-making entitiesincluding the Environmental Protection Agency, FERC, the WhiteHouse and the individual states.

Although rumors emerged earlier this year about a potential mergerof the American Gas Association (AGA) and the EEI (See Daily GPI, Feb. 10), Kuhn did not address theissue. He did point to the two associations’ relationship, however, asan example of the common ground both gas and electric groups can worktogether on.

“We’re working together on NARUC issues, on Y2K issues and onutility handicapping issues in the individual states…evenmarketing. [Dave Parker, president of the AGA] and I got ourmarketing groups together recently to try and find common areas.That would have been heresy a few years ago, but it’s happeningmore and more now.”

Katz said talk of a merger “is just talk.”

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