This week, APGA President & CEO, Dave Schryver, testified before the House Committee on Agriculture at a hearing titled, The Commodity Futures Trading Commission (CFTC) at 50: Examining the Past and Future of Commodity Markets. Dave joined a panel of several experts in the futures trading space to share how public gas systems protect their customers from price volatility in the natural gas market by engaging in CFTC-regulated derivatives markets. Dave also highlighted the commitment of APGA members to their communities, highlighting their dedication to providing the most affordable energy rates possible.
The hearing took place before the full committee and focused on the important role that the CFTC has played over the last five decades in regulating the derivatives market. As Dave mentioned in his testimony, APGA members utilize the derivatives market as a risk management tool to protect consumers from volatile energy prices. Without these financial tools, natural gas customers would be subject to more unpredictable fluctuations in the natural gas markets.
In several exchanges with members of the committee, Dave also emphasized the unique benefits that community-owned gas systems offer customers. In response to a question from a Representative from New York, Dave shared,
“We believe that the public gas system model has worked well… Our members are not-for-profit, they are focused on providing affordable, reliable service to their customers. The dollars [they earn] as nonprofits that are locally owned by the citizens they serve stay in the community. We believe that local control benefits the community and benefits those that live in the community.”
Opportunities to educate members of Congress and the public on the efforts that APGA members make to keep energy rates affordable for their customers are critically important. To read Dave’s written testimony and view a recording of the hearing, click here.
For questions on this article, please contact Joshua St.Pierre of APGA staff by phone at 202-407-0015 or by email at jstpierre@apga.org.