Funding for the LMGA's activities is derived solely from fees paid by its members who control who control its activities. 109  public entites are currently benefiting from owning and operating their own gas distribution system and/or gas-fired electric generation facilities. 

The LMGA was created for the purpose of developing, arranging, and promoting adequate, dependable and economical supplies of natural gas for the public good.

The LMGA can contract with other political subdivisions, as well as any public or private person, firm, association or corporation, inside or outside of the State of Louisiana, for any such purposes and can also issue tax-exempt revenue bonds to accomplish its objectives.