The American Gas Association is seeking to get its two cents’worth in on the conduct of affiliated marketers by adopting eightprinciples intended to guide state officials in policymaking. “AGAbelieves that state officials already have ample authority toreview relationships between natural gas utilities and theiraffiliates,” said Miriam Swydan Erickson, AGA senior director ofgovernment relations. “The new AGA principles are intended toassist state regulators considering additional rules.”

AGA – contrary to the belief of Enron and other marketers -believes utilities and their marketing affiliates should be allowed to use the same/similar name and logo and that utility affiliatesshould be permitted to identify themselves as such.

“State regulators and legislators should continue to use theirauthority to prevent abuse of market power, such as a utility notpermitting access to essential facilities by unaffiliatedmarketers. But so long as no such barriers to entry impedecompetition, affiliates should be able to use economies of scaleand scope to offer lower prices to consumers.”

The eight AGA principles are:

1. Standards should be to protect and benefit consumers ofregulated services and protect competitive choices.

2. Existing state regulatory authority should be used toprevent inappropriate cost-shifting between regulated andunregulated activities.

3. Consumers should be able to choose among commodity andnon-commodity services from a selection of suppliers, including thelocal utility, should it offer these services.

4. Standards should apply equally to all marketers. Neitherthe utility as merchant nor its marketing affiliates should beplaced at a disadvantage to unaffiliated marketers.

5. Standards should allow for the realization of economiesof scope and scale, which benefit the consumer.

6. Utilities and marketing affiliates should be permittedto use the same or similar name or logo.

7. A utility should apply its tariff provisions relating toessential services on a non-discriminatory basis to all similarlysituated competitors.

8. A utility that makes available non-customer-specific andnon-public information about customers or utility services to anyaffiliated or unaffiliated marketer should make the same availableto all marketers.

9. AGA represents 181 LDCs and provides services to membergas pipelines, marketers, gatherers, international gas companiesand industry associations.

©Copyright 1998 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press,Inc.