The Gas Related Activities Act of 1990 (GRAA) gave registered public utility-holding companies the right to acquire companies associated with natural gas. A company could acquire companies in many phases of the natural gas cycle, including exploration, development, production, marketing, manufacture, or supply of natural or manufactured gas, but specifically excluded companies which transported or stored gas. The acquired gas-related company's primary source of revenue must then be from one of the specified gas activities. The US Congress viewed such a purchase as incidental and economically vital to the operation of gas utility companies, as seen under the Public Utility Holding Company Act of 1935. Under GRAA, the acquiring company must prove that it will work for the interest of the gas consumers. At the same time, the Securities and Exchange Commission has the mandate to ensure, on a case-by-case basis, that the acquisition will not harm the gas consumers.
- United States Code: Public Utility Holding Companies (FindLaw)
- Gas Related Activities Act of 1990 (The Library of Congress)