Higher level WZW sectors from free fermions

We introduce a gauge group of internal symmetries of an ambient algebra as a new tool for investigating the superselection structure of WZW theories and the representation theory of the corresponding affine Lie algebras. The relevant ambient algebra arises from the description of these conformal field theories in terms of free fermions. As an illustration we analyze in detail the \son\ WZW theories at level two. In this case there is actually a homomorphism from the representation ring of the gauge group to the WZW fusion ring, even though the level-two observable algebra is smaller than the gauge invariant subalgebra of the field algebra.