Media advisory [Dec. 17, 1996A]

MEDIA ADVISORY GEORGIA PUBLIC SERVICE COMMISSION

FOR IMMEDIATE RELEASE December 17, 1996

CONTACT: Shawn Davis Public Relations Specialist (404) 656-6558 or 1-800-282-5813

TIME-LINE FOR COAL TAR CLEAN-UP APPROVED BY PSC

ATLANTA -- Environmental clean-up of coal tar remaining at eight former manufactured gas plants throughout Georgia will begin in early 1997 according to a schedule approved today by the Georgia Public Service Commission (PSC). The PSC ordered Atlanta Gas Light Company (AGL) in October to submit a clean-up schedule after an audit raised questions on the progress of the clean-up and how the utility expended ratepayer monies paid into an Environmental Response Recovery Fund.

Clean-up is slated to begin in early 1997 at five of the sites and will continue through completion at all of the sites in 2000 (see illustration below). "We have made a commitment to consumers to hold th~ company accountable for the approved clean-up schedule and we will monitor the progress :In all the sites in cooperation with the EPD," said Commissioner Bobby Baker.

Before pipelines made natural gas widely available in the 1950's, the plants manufactured gas by burning coal and oil at extremely high heat which produced a by-product known as coal tar, believed to be linked to potential health risks. Established by the PSC in September of 1992, the fund permits Atlanta Gas Light Company to recover from ratepayers no more than 5% of its jurisdictional sales for expenses associated with environmental clean-up costs of the former plants. AGL recovers clean-up costs through an Environmental Response Recovery Rider which amounts to an average of 5 cents per month for the average ratepayer, depending on therms used.

The results of an audit performed by an outside consultant for the PSC and released in September determined that through June of 1995, the company has collected $9.7 million from the ratepayers and has reportedly incurred $15.6 million in related costs, most of which are attributable to litigation. The utility stands to recover, through the rider, an additional $2.9 million for the period ending in June of 1997. AGL's clean-up activities up to now have consisted of technical evaluations and litigation against insurance companies to provide coverage of its manufactured gas plants.

In addition to ordering the clean-up schedule in October, the PSC prohibited the company from using the clean-up fund for payment of any damage awards which might arise from litigation against the company.

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Page 2 of2 AGL Coal Tar Clean-Up

Atlanta Gas Light Company Manufactured Gas Plant Clean-Up Schedule

Site

Date to Begin Corrective Action Date to Complete Corrective Action

Augusta Holder Tank January 7, 1997

May 2,1997

Augusta West Parcel April 1, 1997

June 1, 1997

Augusta Canal

June 2, 1997

December 1, 1997

Augusta Entire Site

January 1, 1998

October 1, 1999

Griffin

February 3, 1997

April 7, 1997

Rome

June 2, 1997

September 30, 1997

Brunswick

May 14,1998

November 17, 1998

Athens

May 31, 1998

November 30, 1998

Savannah

March 1, 1998

December 1, 2000

Valdosta

September 1, 1998

December 6, 1999

Waycross

September 1, 1998

December 6, 1999

Macon 1

July 1, 1999

April 1, 2000

Macon 2

No Further Action Planned

Remedial Actions Taken

Atlanta 1

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Atlanta 2

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