AGA to concentrate on LDC membership

The American Gas Association is reshaping its mission and programs to focus on local distribution companies (LDCs). It said that decision was based on surveys under way for a management study of ways the association can best meet the needs of its members and others in industry. AGA represents LDCs, pipeline, and marketer/gatherers. But 85% of current AGA members are LDCs, combination LDCs, or integrated gas companies.

April 8, 1996

2 min read

The American Gas Association is reshaping its mission and programs to focus on local distribution companies (LDCs).

It said that decision was based on surveys under way for a management study of ways the association can best meet the needs of its members and others in industry.

AGA represents LDCs, pipeline, and marketer/gatherers. But 85% of current AGA members are LDCs, combination LDCs, or integrated gas companies.

The association also formed an LDC caucus within AGA to better represent that segment of the industry. Last year, several of interstate pipelines announced their intention to withdraw from AGA.

George Davidson Jr., AGA chairman and chairman and chief executive officer of Consolidated Natural Gas Co., explained, "With deregulation, gas companies increasingly find themselves in competition with one another and at odds over issues where they once shared common views.

"The diverging needs of our broad membership were making it difficult to maintain the high level of effectiveness desired at AGA. It became imperative for us to determine what we do best and for whom and focus on delivering those services to a more defined membership."

AGA said only LDCs will be full voting members in the future, although accommodation will be made for pipelines and marketer/ gatherers. AGA advocacy efforts will be focused on the needs of LDCs.

The association said its information exchange and services will be member-driven and member-focused to provide maximum value. AGA will not require that its members support national industry advertising.

Davidson said the survey found AGA members recognize the value of AGA's national advertising program, which accounts for a third of AGA's dues income, but wanted to make their support optional.

He said it's not clear how the narrower focus will affect the size or revenues of AGA, which has 300 industry members and a staff of 156.