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AGA Applauds Policy Guidance on Cyber Threat Information Sharing and Antitrust
AGA

 3/4/2009 

AGA Contacts:
Jennifer O’Shea, 202-824-7023
Jake Rubin, 202-824-7027

 Tax Provisions in Obama Budget Could Hurt Natural Gas Customers   

 
   
Washington, DC –– The American Gas Association (AGA), which represents the natural gas utility industry, today said several tax provisions included in President Obama’s budget proposal could prove harmful to natural gas customers.

By changing the tax laws that address intangible drilling costs, geological and geophysical expenses, the depletion allowance and the manufacturing deduction, the budget would discourage independent energy producers from discovering and producing natural gas.   

“When supply shrinks and can’t keep pace with demand, prices must rise— so the 171 million Americans who rely on natural gas to heat their homes and cook their food could see higher energy bills should these provisions pass,” said David Parker, president and CEO of AGA. “That would put an even greater financial burden on consumers.”

According to AGA, discouraging the production of America’s cleanest-burning, domestically abundant fossil fuel, which could tighten domestic supplies of natural gas, has broad implications, including the elimination of well-paying jobs and the serious potential for upward price swings. 

“Right now, natural gas utilities are able to deliver clean, domestic natural gas to customers at reasonable prices,” Parker said.  “With the economy in the doldrums, now is not the time to increase the price of natural gas to consumers.”

Because AGA’s members serve almost 93 percent of America’s natural gas customers, “AGA will oppose any provisions that ultimately result in higher monthly natural gas bills,” Parker said.
 
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The American Gas Association, founded in 1918, represents more than 200 local energy companies that deliver clean natural gas throughout the United States. There are more than 71 million residential, commercial and industrial natural gas customers in the U.S., of which 94 percent — over 68 million customers — receive their gas from AGA members. Today, natural gas meets almost one-fourth of the United States' energy needs.

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