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