Initial reaction to the idea of consolidating the majorWashington D.C.-based energy trade groups under one umbrella seemsto be running from cold to warm, with some outright opposed to itand others at least willing to discuss it.

Jerald Halvorsen, president of the Interstate Natural GasAssociation of America (INGAA), broached the subject two weeks agoas a way for natural gas and electric associations to deal with theloss of members resulting from mergers within the industries.

He said he planned to talk with the heads of the American GasAssociation (AGA), the Edison Electric Institute (EEI), theElectric Power Supply Association (EPSA) and possibly the NuclearEnergy Institute (NEI) within the next few weeks aboutconsolidating the energy trade groups. Trade groups representinggas producers wouldn’t be part of any merger talks, Halvorsen said.

“Who appointed him [Halvorsen] the ambassador of energy?” askedone industry source. “He’s not in a position of bargaining to makethis whole thing happen. I think if there’s any move to mergeassociations, it would be between two associations.”

The associations are reacting to Halvorsen’s proposaldiplomatically for the record, but “behind closed doors” there’slittle support for it, the source noted. “I think it’s going overhorribly” with the energy trade groups.

AGA, which represents gas distributors, is not looking toconsolidate. “Any merger discussions would have to come from ourown members, and they’re not pushing for [them]. They’re satisfiedwith an independent AGA,” said spokeswoman Daphne Magnuson. Thatpoint was driven home last year when rumors were rampant that AGAmight merge with EEI, she noted.

“I’m always willing to talk,” said Lynne Church, EPSA’sexecutive director, but she believes such discussions may be a bit”premature” at this stage in the electric restructuring process.”…I don’t think the industry has shaken out [enough] to know whowill be the players” on the regulated and unregulated sides of theenergy business, she told NGI. “It’s unclear what the industry isgoing to look like…..” The EPSA is a national trade group forcompetitive power suppliers.

The NEI, a trade group representing owners and operators ofnuclear power generation facilities, declined to take a position,as did the Edison Electric Institute (EEI).

As for merging the energy associations, Halvorsen sees threepossibilities: combining all of these electric and gas associationsunder one roof; creating two associations – one for regulatedenergy companies and the other for unregulated companies; orcreating three associations – one for energy distribution, anotherfor energy generation and a third for energy transmission.

Susan Parker

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