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ENRON CHAIRMAN LAY URGES FERC TO FOSTER GREATER RELIANCE ON MARKET FORCES
FOR IMMEDIATE RELEASE: Thursday, May 29, 1997
HOUSTON - The next generation of regulatory reform with natural gas should rely more on market forces and competition wherever and whenever possible, while retaining appropriate regulations and competitive protections where market power remains, Enron Chairman and CEO Kenneth L. Lay said in testimony at a Federal Energy Regulatory Commission (FERC) Public Conference in Washington today.
"The Commission should recognize that it has already succeeded in creating a vibrant and competitive market in the production and transmission segments of the gas business," and "is ready for Commission policies that rely on market forces," Lay said. In addition, Lay noted that while gas transmission has ten years to reach this mature state, competition in distribution markets is only beginning.
Relying on market-oriented reform is not synonymous with a loss of FERC control, he said. Calling for FERC to continue to have the tools to curb any market power abuse if it should arise, he urged the Commission to move forward with a dual approach which couples increased market reliance with streamlined complaint and marketing affiliate protections.
"Remove special-interest regulation that serves no clear policy purpose, rely more on market-oriented solutions, and promote the final phase of industry restructuring where competition and consumer choice are introduced behind the city gate for all consumers of natural gas," Lay said.
Enron Corp., one of the world's largest integrated natural gas and electricity companies with approximately $15 billion in assets, operates one of the largest natural gas transmission systems in the world; is the largest purchaser and marketer of natural gas and the largest non-regulated marketer of electricity in North America; is a leading participant in liberalized energy markets in the United Kingdom and the Nordic Countries; markets natural gas liquids worldwide; manages the largest portfolio of fixed-price natural gas risk management contracts in the world; is among the leading entities arranging new capital to the energy industry; owns a majority interest in Enron Oil & Gas Company, one of the largest independent (non-integrated) exploration and production companies in the United States; owns a majority interest in Enron Global Power & Pipelines L.L.C., which is owner and manager of operating power plants and natural gas pipelines around the world; is one of the largest independent developers and producers of electricity in the world; and is a major supplier of solar and wind renewable energy worldwide. Enron is traded under the ticker symbol, "ENE."
For additional information please contact:
Gary Foster
(713) 853-4527
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