GPSC news, Vol. 10, no. 1 (Winter 2010)

GPSC

GPSC News

Winter2010

Volume 9 Issue 1
*Extends recovery period by three years to 2025 *Company would seek to install infrastructure along strategic corridors *Company must file quarterly reports

Commission Approves Economic Development Program

In this issue

Legislative Update

2

Commission Approves Study 3 of Solar Only Tariff

Georgia Power Files Fuel 3 Cost Recovery Case

Federal Court Rules for

3

Commission

Atmos Rate Case Hearings 4 Get Underway

Final Hearing on Vogtle

4

Costs

Georgia Power Files IRP

5

Commissioners Speak

Before Legislature

5

Staff Visit to Plant

5

McDonough

Commission Recognizes

6

Employees

Commission News

7

Commission Calendar

8

Next Issue April 2010

T he

Commission

January 19 ap-

proved an additional eco-

nomic development com-

ponent for the Atlanta

Gas Light Company Stra-

tegic Infrastructure De-

velopment and Enhance-

ment Program known

as STRIDE. A majority of

the Commission on a 4-1

vote approved the Cus-

tomer Integration Program, which is designed to employ incentives to attract new customers to connect to the AGLC natural gas system. The Com-
mission approved the initial STRIDE program at its October 6, 2009 Administrative Session. As part of the Commission decision the recovery pe-

riod for STRIDE would be extended three years from September 30, 2022 to September 30,
2025. The three year extension could collect up to an additional $45 million to construct line extensions without customers
having to pay a contri-

(Continued on page 2)

McDonald Chairs Commission in

2010

C ommissioner Lau-

ren

"Bubba"

McDonald, Jr. will serve

as Chairman of the Com-

mission for 2010, taking

the gavel from outgoing

Chairman Doug Everett.

The Commission Chair-

manship is rotated annu-

ally among the five Com-

mission members based

on Georgia law and Com-

mission rules.

McDonald is serving his second tour on the Commission, having won election in November 2008 to a full six year term. He previously served on the Commission from 1998 to 2002. Commissioner McDonald's complete biography is on the Commission web site, www.psc.state.ga.us.
(Continued on page 2)

PAGE 2

GPSC NEWS

VOLUME 9 ISSUE 1

Legislative News

The Governor's Amended Fiscal Year 2010 and Fiscal

The Governor's in the House Energy, Utilities revenue estimate and Telecommunications Com-

Year 2011 Budgets released on

for the 2011 mittee while H.B. 244 is in the

January 15, 2010 reflect an ad-

budget calls for a Senate Rules Committee.

ditional eight percent cut in the

revenue growth of Other legislation affecting the

Commission's budgets.

4.2 percent over Commission is H.B. 168 which

The AFY 2010 Budget recom-

the 2010. Total is the "telecom reform" legisla-

mendation calls for an overall

estimated reve- tion which passed the Senate

cut of $1,017,361.This includes

nues for FY 2011 on February 9 by a vote of 46-

cutting three fulltime positions

are $17.4 billion. 4. Senate Bill 328 would have

which we disagree with.

The Commission the Commission resolve dis-

The FY 2011 budget recom- is also hopeful that its outside con- putes over utility pole attach-

men dation calls for an sultant funding bill, House Bill 52 or ment fees.

$872,994 cut in the Commis- its Senate substitute, House Bill House Bill 328, which would

sion's budget.

244, can pass through the legisla- have given the Commission

Of course, this is all subject to ture this session. H.B. 52 remains regulatory authority over public

the Legislature's approval as

towing, received a do not pass

the budgets move through the legislative process. The budget committees are just beginning their work on the budgets.

If you have a story for the next GPSC News, please send to Bill Edge, bille@psc.state.ga.us. Next issue deadline is April 15, 2010.

recommendation on January 26 from the House Motor Vehicles Committee. It is dead for this session.

AGL Economic Development Plan

(Continued from page 1)

creased $0.39 a month on Octo- Program.

bution in aid of construction ber 1, 2009 to fund the STRIDE The Company is required to file

(CIAC) before service can be program. Rates will increase an- an annual report that will pro-

established.

other $0.40 a month on October vide an update on the actual

Patterned after AGLC's annual 1, 2010. Today's decision has no expenditures.

Universal Service Fund (USF) impact on these rates.

The Company will be entitled to

process, AGLC would seek per- The Company is required to file recover all costs prudently made

mission to install mains along quarterly reports with the Com- as determined by the Commis-

strategic corridors to encourage mission of its progress toward the sion.

and facilitate firm industrial and

commercial customers, and resi-

dential development.

Residential customers' rates in-

McDonald Chairs Commission in 2010

(Continued from page 1)

tee; Commissioner Chuck Eaton for the regulation of electric,

Chairman McDonald announced will chair the Transportation natural gas and telecommunica-

that Commissioner Stan Wise Committee;

Commissioner tions utilities and transportation

will serve as Vice-chairman and Everett will head the Facilities companies operating inside Geor-

made the following committee Protection Committee; and Com- gia.

assignments: Commissioner missioner McDonald, as Chair-

Stan Wise will chair the Energy man, will head the Administrative

Committee;

Commissioner Affairs Committee.

Robert Baker will chair the The five-member Commission is

Telecommunications Commit- a constitutional body responsible

VOLUME 9 ISSUE 1

GPSC NEWS

PAGE 3

PSC Approves Study of Solar Power Only Green Energy Tariff

The Commission November quirements and any other appro- watt blocks of Green Energy for 19 unanimously approved a priate contract terms," McDonald $3.50 per block above their

motion directing the Commission said.

regular electric rates. The Large

staff and Georgia Power Com- "I think there is a market out Volume Purchase allows custom-

pany to develop a proposed revi- there that would support a solar ers who purchase at least 400

sion to the Company's Green only product," McDonald added. blocks under the standard Green

Energy tariff to allow consumers He indicated that he has heard Energy offering to contract with

to purchase "solar only" electric from consumers throughout the Georgia Power for additional re-

power.

state who express an increasing newable energy at a reduced

C o m m i s s i o n e r L a u r e n interest in renewable resources price. Georgia Power contracts

"Bubba" McDonald, Jr. made and green energy.

individually with each customer

the motion to direct the staff The Commission on August 17, to determine the price, quantity,

and the Company to bring the 2009 approved an increase in the term and source of the additional

revised Green Energy tariff to amount of solar energy that can green energy.

the Commission within 30 days. be purchased under the Green Under the current Regular Green

"These recommendations should Energy tariff, up to 1.5 Mega- Energy program, the Green En-

include consideration of the cost watts. Under the Company's cur- ergy product is all biomass, pri-

of such an offering, any monthly rent Green Energy Tariff, con- marily from the Seminole Landfill

minimum block purchase re- sumers may purchase 100 Kilo-

(Continued on page 7)

PSC Will Review Georgia Power Fuel Cost Recovery

Case

T he Commission is reviewing March 13, 2009. According to the used to generate electricity but the Georgia Power Company Company, this action saved con- has not yet been recovered from

request filed on December 15, sumers about $300 million due in customers at a cost of $642 mil-

2009 for an increase in its fuel large part to decreased fuel costs lion to be collected through May

cost recovery rates. Following mainly natural gas. The Com- 2012.

hearings in February, the Com- pany's proposal includes two Here are some facts about the

mission will issue a decision on parts: 1. Part A which collects Georgia Power fuel cost recov-

the request in March 2010.

projected fuel costs through May ery rate case:

The Company has delayed the 2011 at a cost of $3.9 billion; The Company is seeking an in-

filing of this request three times and 2. Part B which collects the crease of $470 million in rates

from the original filing date of cost of fuel that has already been

(Continued on page 6)

Federal and State Courts Rule for Commission

T he U.S. District Court for volving disputes that Public Ser- that were local to Public Service the Northern District of vice Telephone had with Verizon Telephone. Despite that fact,

Georgia affirmed the Commis- Wireless and Alltel Wireless. The Public Service Telephone argued

sion's decision in two telecom- cases involved calls from Public the calls should be rated as

munications complaint cases Service Telephone wireline cus- toll. The Commission sided with

involving the rating of calls as tomers to wireless customers of the wireless carriers and or-

local or toll.

the two wireless carriers. The dered that these calls should be

In the first part of 2008, the calls at issue in the case were to rated as local.

Commission issued decisions on wireless customers with number Public Service Telephone ap-

two related complaint cases in- codes associated with rate centers

(Continued on page 6)

PAGE 4

GPSC NEWS

VOLUME 9 ISSUE 1

Atmos Rate Case Hearings Begin

The Commission held the first of three rounds of hearings

in the Atmos Energy rate case in Docket Number 30442 on January 12, 2010. Atmos Energy filed a request on October 1, 2009 with the Commission to increase its rates. In

its filing, Atmos says it is seeking

$3.7 million increase in rates due

to changing market conditions

and increases in operating costs.

If approved, residential custom-

ers' monthly bills would increase

by approximately $4.00 or $48 T h e

annually. Any change in rates Commission last approved a rate on staff and intervenor testi-

would take effect April 1, 2010. increase for Atmos on September mony.

Georgia law requires the Com- 17, 2008.

March 11, 2010. Hearing on

mission to issue a decision on The remaining schedule for this Company rebuttal testimony.

any new proposed rates within proceeding is:

March 29, 2010: The Commis-

180 days of the Company's filing. February 18-19, 2010: Hearings sion issues its decision.

Final Expense Hearings on Plant Vogtle
T he Commission held the Waynesboro, Georgia. Under the son of the economics of the final hearing on January 26 agreement, the Company must certified project. At this time,
to review proposed revisions file semi-annual monitoring and according to the Company, the and verification of expenditures monthly status reports with the project is on schedule and for the Georgia Power Company Commission. The semi-annual within budget. Vogtle Units 3 and 4 nuclear monitoring report includes any A Certificate is issued by the construction projects. Last year, proposed revisions to the cost es- Commission upon a finding the Commission approved the timate, construction schedule, or that there is a need for the
Company's request to certify the project configuration, as well as a proposed capacity and that construction of the new nuclear report on actual costs incurred the resource provides an ecopower units at its Plant Vogtle during the period covered by the nomical and reliable supply of Nuclear Power Plant near report and an updated compari- electric power in accordance

with the current Integrated Re- sity issued by this Commission. source Plan (IRP). The 2007 IRP The remaining schedule for this stated that the utility would proceeding is:

Governor Names Stair to Advisory

need an additional 2,200 Mega- February 5, 2010: Proposed briefs

Committee

G watts of new baseload electric and orders due.
power generation in the 2016 February 18, 2010: The Commisand 2017 timeframe to meet its sion issues its decision.

overnor Sonny Perdue named Jeff Stair on Janu-

growing energy needs. Under

ary 28 as the Chairman of the

the IRP statute, new power gen-

Commission's Georgia Utilities

eration cannot be added to the

Advisory Committee. The Com-

system without a Certificate of

mittee hears cases involving

Public Convenience and Neces-

violations of the state's dig law.

VOLUME 9 ISSUE 1

GPSC NEWS

PAGE 5

Georgia Power Commissioners Appear Before

Files IRP

Legislative Committees

E very three years, Georgia Power Company files its In-

tegrated Resources Plan with

the Commission to provide the

way ahead on providing Geor-

gia's electric energy needs. The

Company filed its latest IRP on

January 29, 2010.

The Commission will hold hear-

C ings beginning on April 13 and
14, 2010 on the Company's proposal. There will also be hear-

ommissioners Chuck Eaton and Stan Wise

ings in May and June.

made appearances before

Under Georgia law, the Commis- legislative committees to

sion must issue a decision on express Commission view-

the Company's 180 days after points on a transportation

the Company pays the fee to bill and the Commission's

the Commission.

budget request.

Commissioner Eaton spoke January 26 at a House Motor Vehicles Committee hearing on House Bill 328. The Committee gave the bill a do not pass recommendation. Commissioner Wise on January
29 presented the Commission's budget for the Amended 2010 Fiscal Year, House Bill 947.

Staff Visits Georgia Power Plant McDonough

Commission staff visited Georgia Power's Plant

McDonough in Cobb County on

September 2, 2009 as part of

the construction monitoring

process to get a first hand look

at the new construction.

Plant McDonough Units 4, 5,

and 6 are currently under con-

struction. Units 4 and 5 are

scheduled to meet capacity and energy needs in 2011.

beginning in 2012.

Unit 6 is scheduled to go online

King Day Tribute at the Capitol

The State of Georgia held its 25th annual Martin Lu-

ings were delivered by Representative Emanuel Jones of the

ther King, Jr. Tribute at the

Georgia Legislative Black Cau-

State Capitol on January 14,

cus, Lt. Governor Casey Cagle,

2010.

House Speaker David Ralston

Former Georgia Supreme Court

and Atlanta Mayor Kasim Reed.

Chief Justice Leah Ward Sears

Commission Chairman

was the event's keynote

Lauren "Bubba" McDonald,

speaker. Governor Sonny

Jr. represented the Commis-

Perdue presented the King Day

sion at the Tribute.

Proclamation while greet- Chairman McDonald attends Tribute

PAGE 6

GPSC NEWS

VOLUME 9 ISSUE 1

Commission Recognizes Employees

T he Commission December 8 recognized employees for their faithful service and held the annual Holiday Luncheon. The following employees received the Faithful Service Awards:
Five Years Monique P. Andrews Carolyn S. Harrison Onterio K. Johnson
Tonika M. Starks Victoria L. Taylor
10 Years John Philip Bedingfield
Jada Brock Joyce L. Lewis Gary L. Mason Ann McCullough

Cathy W. Nesbitt Jeffrey C. Stair
15 Years Jamie C. Barber Thomas K. Bond John P. McCarter Allison S. Morris

30 Years Dorothy Buckner Veronica Thomas
Julia M. Truss
Commissioner Doug Everett opened the festivities, then Commissioner Lauren
(Continued on page 7)

Courts Rule for Commission

(Continued from page 3)

that correctly resolved the is- Commission and issued his order

pealed and asked the District sues in this case. Also, thanks on December 23, 2009. In the

Court to enjoin the Commission's to Leon Bowles, Patrick suit by the Southern Alliance for

order. In 2008, the Court denied Reinhardt and Shaun Rose- Clean Energy v. PSC, the case

Public Service Telephone's request mond for all of their assistance was reassigned to Judge Wendy

for a preliminary injunction. After in this matter.

Shoob after Judge Arrington

oral argument held on December In the Fulton County Case, Ful- recused himself at SACE's re-

18 the Court denied PST's request ton Superior Court Judge quest. There has not been any

for a permanent injunction.

Marvin Arrington granted the action taken since the reassign-

Congratulations to Phil Smith Commission's Motion for Sum- ment. The Fulton County court

and the Commission for issuing mary Judgment in Fulton cases stem from the Commis-

the Initial Decisions and orders County Taxpayers versus the sion's Plant Vogtle decision.

Georgia Power Files Fuel Case
(Continued from page 3)
to recover its increased costs for fuel, primarily coal, used to generate electricity. If approved, this request would increase the average residential customers' monthly bill by an estimated $6.98. A request for an increase in the fuel cost is not the same as a request for an increase in base

rates. Georgia law allows elec- sonal fuel rates which would

tric utilities to recover their fuel collect a higher rate during the

costs, prudently incurred, on a summer and a lower rate dur-

dollar for dollar basis. The utili- ing the winter.

ties are not allowed to make a An Interim Fuel Rider would

profit on their fuel costs.

allow the Company to adjust

Georgia law requires the Com- fuel rates by a maximum of 10

mission to issue a decision on percent to limit fuel cost under

the Company's request within recovery. The last time the

90 days of the Company's filing. Company requested a fuel cost

Otherwise, the Company's re- rate increase was in February

quest goes into effect.

2008. In that case, Georgia

The Company is proposing sea-

(Continued on page 7)

VOLUME 9 ISSUE 1

GPSC NEWS

PAGE 7

Employee News

Sympathy

New Employee

O W ur condolences go out to kinsville, Georgia. Pat Welcome on the loss We extend our sympathy to

e welcome Shemetha Jones to the Commission as part of

of her father, Ben E. Singleton Gary Mason on the death of the ARRA group under Internal

January 5 in an auto accident in his father-in-law, Clarence A. Consultants. Shemetha is a native

Baltimore, Maryland. The fu- Heath on November 18, 2009. of New Orleans, La. and relocated

neral was held January 19 in The funeral was held Novem- to Atlanta after Hurricane Katrina.

Baltimore with burial in Ft. ber 21, 2009 in Cartersville, Before joining the Commission, she

Meade National Cemetery.

Georgia.

worked in public accounting for

Pat also lost her stepfather,

three and half years. She has a

William Pickett, on February 10.

Master's degree in Accounting and

The funeral was held in Haw-

an active CPA license.

Farewell
C lare MaGuire resigned December 31 to pursue other

Media Appearances

Holiday Luncheon

opportunities. Claire had been Commissioner Chuck Eaton

with the Commission since No- was interviewed by Bill Crane

vember 2005 as an Administra- on WSB Radio for Sunday AM

tive Attorney.

on February 7. The topic was

Bob Vaughan retired Novem- the Nuclear Waste Fund.

ber 1 after 34 years of service. Sam Ahmed was interviewed

Bob most recently worked in the on WXIA-TV for a report on

Internal Consultants Unit.

the Toyota recalls due to

faulty accelerator pedals.

Commissioners McDonald and Wise

(Continued from page 6)
"Bubba" McDonald, Jr. handed out the Faithful Service Awards. A delicious Holiday Luncheon capped off the day's festivities.

Solar Only Tariff

Georgia Power Files Fuel Case

(Continued from page 3)

(Continued from page 6)

January 29, 2010 Commission

in DeKalb County and contains Power sought an annual increase staff and intervenors file testi-

no solar or wind energy at this of $222 million in revenues. Ulti- mony

time. However, the Company mately, the Commission accepted February 8, 2010 Company

offers a Premium Green Energy a staff recommendation to ap- files rebuttal testimony

Product at $4.50 per block prove a stipulation with the Com- February 22-23, 2010 Com-

which receives at least two per- pany that reduced the Company's mission conducts hearings

cent of its energy from solar re- request by $7 million.

March 11, 2010 Commission

sources.

At its November 19, 2009 Admin- issues its decision in Special Ad-

istrative Session, the Commission ministrative Session,

set the filing and hearing schedule The legal deadline in this case

for this case, Docket Number for a Commission decision is

28945.

March 15, 2010.

The schedule is:

PAGE 8

GPSC NEWS

Commission News

Georgia State Holidays For 2010

VOLUME 9 ISSUE 1
Commission Calendar

New Year's Day Martin Luther King, Jr. Birthday Confederate Memorial Day Memorial Day Independence Day Labor Day Columbus Day Veterans Day Thanksgiving Robert E. Lee's Birthday Washington's Birthday Christmas

January 1 January 18 April 26 May 31 July 2 September 6 October 11 November 11 November 25 November 26 December 23 December 24

February 2010 2-Administrative Session
11-Committees 18-Administrative Session 25-Committees March 2010 2-Administrative Session 11-Committees
16-Administrative Session April 2010 1-Committees 6-Administrative Session 15-Committees

Commission Calendar

20-Administrative Session 29-Committees
May 2010 4-Administrative Session 13-Committees 18-Administrative Session 27-Committees June 2010
1-Administrative Session 10-Committees 15-Administrative Session

NARUC
Winter Meeting 2010 February 14-17, 2010 Washington, D.C.
Summer Meeting 2010 July 18-21, 2010 Sacramento, California
Annual Convention 2009 November 15-18, 2010 Atlanta, Georgia

The Public Information Office publishes GPSC
News for the Georgia Public Service Commission. Information for GPSC News should be sent to: Bill Edge, 244 Washington St. S.W., Atlanta, Ga. 30334. Discussion
of regulatory matters in this newsletter should not be construed as legal interpretations of orders or rules issued by the Commission.

SEARUC
Annual Meeting 2010 June 21-24, 2010 Point Clear, Alabama
GPSC ONLINE:.psc.state.ga.us
COMMISSIONERS Lauren "Bubba" McDonald, Jr.,
Chairman Stan Wise, Vice-Chairman
Robert B. Baker, Jr. H. Doug Everett Chuck Eaton
EXECUTIVE DIRECTOR Deborah Flannagan
EXECUTIVE SECRETARY Reece McAlister