The Virginia State Corporation Commission (SCC) has approved a plan by two natural gas local distribution companies (LDCs), Washington Gas Light Co. and Delmarva Power and Light Co., to join with other regional LDCs to form a cooperative to provide for the coordination and use of common capacity, storage, transportation, and supply assets. According to the LDCs, the East Coast Natural Gas Cooperative was a necessary response to recent changes in the gas industry, which shifted responsibility for arranging gas supplies from interstate pipelines to LDCs. In approving a limited liability agreement and a limited agency agreement used by the LDCs to establish the cooperative, the SCC found that the new arrangement would broaden the market area and improve both the LDCs' position in the marketplace to take advantage of opportunities afforded under Federal Energy Regulatory Commission Order 636 for the purchase of gas supplies in other market areas. Re Washington Gas Light Co., Case No. PUA950021, Sept. 7, 1995 (Va.S.C.C.).
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