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MEDIA ADVISORY GEORGIA PUBLIC SERVICE COMMISSION
FOR IMMEDIATE RELEASE March 2, 1995
CONTACT: Harriet Van Norte Public Information Officer
(404) 656-4501 or 1-800-282-5813
SPECIAL CONTRACT BETWEEN AGL AND GEORGIA PACIFIC APPROVED
ATLANTA--A special contract, which will allow natural gas to begin flowing tomorrow to a Georgia Pacific pulpwood plant located in Brunswick, was approved today by the Georgia Public Service Commission. The five-year contract, which is renewable for an additional five years, will increase the volume of gas moving through Atlanta Gas Light Company's (AGL) pipelines to that customer sixfold. The resulting increased revenue of$ I million dollars in the first year will be passed on to AGL's small commercial and residential customers in the form of reduced rates.
In addition to reduced rates for AGL's firm customers, another benefit for the State is. a reduced dependence on foreign oil and a cleaner environment as a result of the use of domestic natural gas.
Under the terms of the contract, a ceiling and a floor for market based transportation charges is established which allows prices to move up and down between the two points. Georgia Pacific will receive a discount on AGL's filed rate but the service will be provided at above AGL's marginal cost.
Georgia Pacific will buy the natural gas at the wellhead and sell the gas to AGL. Atlanta Gas will use its pipeline facilities to move the gas to a distribution point where Georgia Pacific will buy the gas back and transport the gas to its pulpwood plant.
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