FERC REGULATORY COMMITTEE

1
FERC REGULATORY COMMITTEE Presentation of the
Proposed FRC Decision Making Guidelines Voting
Procedure May 23, 2007
2
Initiative

• Effective rules of civil discourse will enhance
  FRCs ability to develop meaningful positions to
  advocate on behalf of natural gas utilities and
  increase AGA member value in participating in the
  FRC.
• Decisions achieved by consensus and compromise.
• Voting procedures to be used only as a last
  resort.

3
Procedural Steps

• Review and input by the FRC
• Adoption at the June 27 FRC Meeting

4
Objective of the FRC

• To develop consensus on federal energy matters
  of significant interest to natural gas utilities
  in order for AGA to advocate effectively on
  behalf of its members.

5
Principles of Consensus

• Substantial agreement, not necessarily unanimity,
  is the goal.
• Consensus results in AGAs strength and
  effectiveness.
• Consensus enhances credibility by demonstrating
  ability of its members to present a united front.
• Open exchange of varying and different opinions
  throughout the process.

6
Principles of Compromise

• 1. Consensus rarely occurs without compromise
• 2. Agree on range of acceptable results ideal
  to mixed
• 3. Degree of consensus will vary along range
  continuum.
• 4. FRC will try to avoid adopting positions that
  undermine a members position.
• 5. Members should do nothing to undermine AGA in
  achieving a position if a member is indifferent
  or unaffected.

7
Voting Procedures

• Chair can initiate non-binding straw polls
  anytime.
• Any member may request a vote at anytime, subject
  to Chair approval.
• Quorum of 50 of FRC members required to hold a
  vote.
• Abstaining votes dont count, except to determine
  quorum.
• Acceptable voting methods - by phone, in person,
  or email.
• One vote per member company (e.g. NILDC get one
  vote combined). Same standard as GRPC uses for
  voting.
• Passing vote must reflect at least 66 of votes
  cast for or against proposal.
• The vote outcome (pass/fail) will be reflected in
  meeting minutes.

8
Dissent Procedures

• Once a consensus is reached or a formal vote is
  taken, a member should inform AGA asap if it
  intends to take a dissenting position.
• Member has option to opt out of filings or
  position papers of the AGA.

9
QUESTIONS?