While it is still too early to see if others in the industrywill follow the lead, Sempra Energy is not looking back afterdropping out of four major energy trade associations at year-end.Strategic direction, as much as cost-savings, was the key driver inthe $5 billion holding company’s decision, according to a seniorexecutive responsible for implementing the new direction. The moveis expected to save Sempra several million dollars annually in duesand expenses related to its employees’ participation.

The San Diego-based parent of two of the nation’s largestdistribution utilities, San Diego Gas and Electric Co. and SouthernCalifornia Gas Co., Sempra has pulled out of Edison ElectricInstitute (EEI), American Gas Association (AGA), Interstate NaturalGas Association of America (INGAA) and Pacific Coast GasAssociation (PCGA). And it is pulling out for the long term, unlikeanother energy giant, Kinder Morgan, the Houston-based purchaser ofKN Energy, which has left INGAA and other energy-relatedassociations.

Sempra officials said they will rely more heavily on thecompany’s own Washington, D.C., office for federal lobbyingactivities. Kinder Morgan, which has closed its office in thenation’s capital, indicated it will reconsider returning to INGAAat some unspecified future time.

“It is not just the dollars; we came to the conclusion aftersome hard deliberations that these particular associations didn’tfit for the future of the company,” said Fred John, Sempra’s seniorvice president, external affairs. He noted, however, that thecompany will maintain its memberships in industryresearch/technology development groups, Electric Power ResearchInstitute (EPRI), Gas Research Institute (GRI) and Institute of GasTechnology (IGT).

“We’re trying to take more of a customer-focused approach, andthe new technologies are what we need to deal with the customers inthe changing environment that we are in,” John said.

San Francisco-based PG&E Corp., another largeCalifornia-based combination utility holding company, last yearpulled out of EEI, but has remained in the other groups.

Edison International, parent to Southern California Edison Co.,has no current plans to leave EEI, according to a corporatespokesperson. “I am not aware of any others in industry (otherthan Kinder Morgan) pulling out,” Sempra’s John said. “Everythingwe are doing is part of an overall package. This is ongoing. It isnot a one-time thing.”

He said Sempra’s Washington, D.C., office will continue to beactive in issues that the trade groups follow, and in some cases,it will work in alliances with those groups. He plans no expansionof the office, noting “it will just be more work with limitedresources.”

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