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Public gas utilities tell House panel that derivatives and market transparency protect customers
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Summary
Representatives of municipal gas utilities said derivatives markets are a key risk‑management tool that keep energy prices stable for communities, and they urged continued CFTC oversight and transparency.
WASHINGTON — Dave Shriver, president and CEO of the American Public Gas Association, told the House Agriculture Committee that community‑owned gas systems use derivatives to manage price spikes and protect consumers, and that the CFTC’s oversight helps ensure fair, transparent markets.
APGA represents “approximately 1,000 communities across The United States in 38 states,” Shriver said. He described public gas systems as not‑for‑profit entities accountable to local customers and emphasized that derivatives enable utilities to stabilize prices when markets are volatile. “Without these hedging tools, price volatility would have a greater impact upon consumers,” he said.
Key points
- Shriver said market transparency reduces the risk of manipulation and that his members have confidence when reporting and oversight regimes work. He told the committee that many public gas systems are captive to a single pipeline (he cited a figure of about 95% in testimony) and thus rely heavily on financial markets to manage volatility.
- He urged the committee to support a “strong, well‑resourced CFTC” so public utilities can continue to use derivatives markets for affordable service.
Ending
Shriver said the CFTC’s principles‑based approach and transparency efforts benefit both utilities and consumers and called for continued support of the agency’s mission and resources.
