Media advisory [Jan. 7, 1997]

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-, MEDIA ADVISORY . GEORGIA PUBLIC SERVICE COMMISSION

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FOR IMMEDIATE RELEASE January 7, 1996

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

PSC TO HOLD WORKSHOPS IN PREPARATION FOR ELECTRIC COMPETITION
ATLANTA -- As the General Assembly prepares to enact legislation deregulating the gas industry this session, the Georgia Public Service Commission (PSC) is already looking toward competition in the electric industry. Recognizing the need to study a host of issues in preparation for electric competition, the PSC today voted in favor of initiating electric restructuring workshops.
Beginning this April, the staff of the PSC will conduct a series of informal workshops with electric utilities, public advocacy groups, commercial and industrial customers and Georgia homeowners to develop and explore the range of issues to be confronted during the transition to a competitive electric environment. The workshops will examine restructuring efforts taking place throughout the nation, the impact of competition on the consumer as well as environmental issues and energy efficiency programs. One of the more controversial issues to be addressed is utility stranded investment costs. Stranded costs, though often interpreted differently, are costs incurred by a utility out of an obligation to serve which become stranded when customers leave the system to receive service from other competitors. When the workshops conclude this summer, staff will present the Commission with their findings and the positions of interested parties.
Although federal legislation failed in the last Congress, restructuring efforts continue throughout the country primarily in the northeast where power costs remain high. Regulatory reform has not been as urgent in the southern states where power rates historically have been lower than the national average.
"While we certainly have a lot on our plate in facilitating telephone competition and in deregulating the natural gas industry, it is important that we prepare for electric restructuring expected in the coming years," said Commission Chairman Dave Baker.
Following five joint meetings in the fall, the Georgia House and Senate Gas Study Committees, of which Commissioner Stan Wise is a member, issued their findings in a report to the legislature last December.
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