GPSC news, Vol. 10, no. 4 (Fall 2010)

GPSC

GPSC News

Fall 2010

Volume 9 Issue 4
AGLC Decision *$0.91 net monthly increase *$26 million revenue increase *Effective November 3, 2010

Commission Issues Decision in Atlanta Gas Light Rate Case

In this issue

Legislative Update

2

Commission Ensures Pipeline 3 Safety in Georgia

Commission Opens Georgia 4 Power Rate Case Hearings

Public Meetings on Rate

4

Cases

Commission Celebrates

5

Lifeline Link-Up Week

AGL Files CNG Proposal

6

The Commission Octo- Coupled with an AGLC $2.63. ber 27 issued its de- filing to reduce the Envi- The Commission unani-

cision in the Atlanta Gas ronmental Cost Recovery mously approved a mo-

Light Company (AGLC) Rider by $0.23 a month, tion by Commissioner

rate case by a 4-1 vote. the average customer H. Doug Everett that

The decision approved an will see a monthly in- the monthly rate for the

adjustment to AGLC base crease of approximately senior citizen low income

rates beginning November $0.91 a month. This in- discount be reduced to

3, 2010 that will mean an crease is approximately zero, saving customers

average increase of about one-third of the Com- approximately $0.32 a

$1.14 in the residential pany's

requested month. The senior citizen

customer's monthly bill. monthly increase of

(Continued on page 2)

Employee News

7

Commission Calendar

8

Next Issue February 2011

Commission Approves Additional Solar

Power Options for Georgians

Georgia Power Company will have the

on a 3-2 vote approved the Company's request for

our solar energy program," said Commis-

option of purchasing more a new Solar Purchase Tar- sion Chairman Lauren

solar energy and making iff. Under the tariff the "Bubba" McDonald,

that energy available to Company will purchase an Jr.

consumers in the Green additional 2,500 kilowatts Under the new tariff the

Energy Program, following of solar energy.

Company would pur-

Georgia Public Service "This action sends a mes- chase an additional

Commission approval Oc- sage that Georgia is a 1,500 kilowatts of solar

tober 5 of additional solar leader. We can lead 32 energy at the preset so-

power generation. A ma- other states in solar en- lar purchase price of

jority of the Commission ergy and open the door

(Continued on page 2)

for greater participation in

PAGE 2

GPSC NEWS

VOLUME 9 ISSUE 4

Legislative News

State revenues have increased for four months in

Governor's race, over the next five to six years it is unknown in monitoring the construction

a row, lending a positive at-

when the Com- costs of two new units at the

mosphere to what has been a

mission will pre- Plant Vogtle Nuclear Power

depressing budget cycle the

sent its budget Plant near Waynesboro, Geor-

past three years. The budget

proposals to the gia to protect Georgia Power

cycle begins in August prior to

Governor in the ratepayers.

the start of every legislative session. The Commission has submitted

usual fall face to face presentation. Of course, these

Governor Election Results (unofficial)

its budget requests to the Of-

reductions all

fice of Planning Budget and fol- have serious consequences on the Deal-R

lowing OPB directions submit- Commission's ability to fulfill its Barnes-D

ted the following proposals:

statutory functions. With no funding Monds-L

53.0% 43.0%
4.0%

For Amended Budget FY 2011, to fill critical vacancies, the Com-

budgets with 4, 6 and 8 percent mission will be facing a tough task

PSC District 2

cuts; for FY 2012, six, eight

Election Results (unofficial)

and ten percent cuts. Under the At this time, pending the outcome of the election and the

If you have a story for the next GPSC News, please send to Bill Edge, bille@psc.state.ga.us. Next issue deadline is January 15, 2011.

Tim Echols-R Keith Moffett-D Jim Sendelbach-L

55.5% 40.8%
4.0%

Commission Approves More Solar Options

(Continued from page 1)

Through the additional solar pur- marketing initiative.

$0.17 per kilowatt hour and chases, the Company says it also The Company proposes these

purchase the remaining 1,000 expects to gain cost and opera- additional purchases of solar

kilowatts through a request for tional knowledge of solar electric- energy under the SP-1 and

proposal process.

ity generation by requiring cus- RNR-7 tariffs with the intention

In its filing, the Company cited tomers to file project cost and op- of holding non-participants of

several reasons for making its erational data with both the Com- the Green Energy Program

request at this time. These in- pany and the Commission. To harmless. All possible over or

cludes procuring additional re- complement these additional solar under recoveries attributable to

sources that will allow the Com- purchases and to further grow the purchases made under the

pany's customers to take advan- sales of the Green Energy Pro- RNR-7 and SP-1 tariffs will con-

tage of federal and state incen- gram, the Company adds that it tinue to be recovered through

tives that may expire soon. will also be implementing a new

(Continued on page 5 )

Atlanta Gas Light Rate Case AGLC base charge for eligible Provides for ratepayers to

Decision

senior citizens.

share 50 percent of savings in

(Continued from page 1)

Other items in the decision in- future Atlanta Gas Light Re-

low income discount will be clude:

sources company acquisitions

funded from the Universal Ser- Sets the Company's return on The Company filed a request

vice Fund though December equity (ROE) at 10.75 percent on May 3, 2010 for a $54.1

2011 at which time the Commis- Increases base rate revenues million increase in its base

sion will revisit the program to by approximately $26 million a rates but later reduced that

ensure it is working properly. year

request to $48.2 million in an

The senior citizen low income Sets in motion a plan for a October 1, 2010 filing. The

discount provides a monthly re- three day performance standard Commission held three rounds

duction of up to $14 a month the for service requests

(Continued on page 4)

VOLUME 9 ISSUE 4

GPSC NEWS

PAGE 3

PSC Ensures Natural Gas Pipeline Safety in Georgia

Although Georgia has never experienced an incident of

quite the magnitude of the ex-

plosion in San Bruno, California,

the state's chances of a similar

occurrence would be significantly

higher had the Georgia Public

Service Commission and its

natural gas utilities not imple-

mented aggressive Pipeline Re-

placement Programs (PRP) that

have become national models.

"Despite the incident in San

Bruno, the nation's natural gas

system has a safe track re-

Commissioner Wise interviewed by

cord. Last year utilities reliably

WGCL-TV reporter Adam Murphy

delivered natural gas to 165 mil-

lion homes and businesses

through a 2.3 million mile distribution and

transmission pipeline delivery system with

only 44 serious incidents, more than 25 percent of which can be attributed to thirdparty damage," said Commissioner Stan
Wise. In 1997 the Commission initiated an investigation to ensure Atlanta Gas Light Company (AGLC) was
meeting its obligation to adequately protect its pipeline infrastructure, much of which was century old cast iron and unprotected

bare steel pipe, not unlike that in Now in the eleventh year of the month. Today that charge is

the San Bruno incident. Over

program, the utility has success- $1.95 a month.

20,000 leaks had been identified fully replaced nearly 90% of the Similarly, in Docket 12509, the

over a three-year period includ- targeted pipe at a cost of ap-

Commission in 2000 ordered

ing leaks in the lines right in

proximately $580 million. Geor- Atmos, which serves about

front of the Commission offices gia's PRP has resulted in less

57,000 customers in Columbus

by the State Capitol. In Docket 8516, the Commission

maintenance cost to the utility, less gas lost from the system,

and Gainesville, to place more than 184 miles of cast iron and

in 1998 ordered AGLC to replace less miles of pipe to monitor and, bare steel pipe in its service ar-

more than 2300 miles of bare

most importantly, ensuring that eas. To date more than 137

steel and cast iron natural gas lives and property are safer. Un- miles of pipe have been re-

distribution and transmission

der the program, the Commis- placed. As of October 1, 2010,

pipes over a ten year period.

sion allowed AGLC to recover the the Atmos pipeline monthly

Since that time additional pipes cost of the program. In 1999,

charge per residential customer

have been added to the program. AGLC customers paid $0.11 a

will be $4.00.

These pipeline replacement pro- Commission has eight fulltime

with the transportation of natu-

grams are only one part of the pipeline safety inspectors in its

ral gas for the safety and well

Commission's ongoing programs Pipeline Safety Group who con- being of Georgia's citizens," said

to ensure the safety and reliabil- duct safety inspections of all natu- Commissioner H. Doug

ity of the state's natural gas

ral gas systems operated in Geor- Everett.

pipes. Although generally not

gia by AGLC, Atmos and munici- During 2009 the Pipeline Safety

seen by the public, the Commis- palities.

Group monitored and inspected

sion has two enforcement au- "Although no one can guarantee over 78,159 miles of distribution

thorities under our Facilities Pro- that an accident will not occur, I mains, service lines and trans-

tection Unit; the Pipeline Safety can guarantee that the Public Ser- mission pipelines transporting

Section and the Georgia Utility vice Commission will continue to natural gas to over 2 million

Facilities Protection Section. The ensure safe and reliable service

(Continued on page 4)

PAGE 4

GPSC NEWS

VOLUME 9 ISSUE 4

Commission Opens Georgia Power Rate Hearing; Holds Public Meetings on Rate Cases

The Commission kicked off the

The next round of hearings gets

Georgia Power rate case hearings

underway November 8 as the

on October 4, 2010 to a standing

Public Advocacy Staff and inter-

room only crowd in the Commis-

venors will present witnesses to

sion's hearing room. Georgia

support their recommendations.

Power has filed for a $1.2 billion

The Staff has filed testimony

increase in its rates over a three

calling for a $420 million rate

year period beginning January 1,

increase for the Company.

2011. As is the usual Commission procedure, there will be three

Georgia Power President Mike Garrett opens his company's

The Commission held a series of public meetings across the state

rounds of hearings on the case.

2010 rate case hearing

to hear from consumers on both

More than 20 members of the
public spoke at the beginning of the hearing to let the Commissioners know their opinions on Georgia Power's request. Afterward Georgia Power President Mike Garrett opened the

Company's case as the first ness.
Other company witnesses followed Garrett included Daiss, Robert Morris and James Vander Weide.

wit-
who Ann Dr.

the Georgia Power and the Atlanta Gas Light rate cases. The Commission traveled to Macon on August 18, Savannah
on August 31 and Rome on September 22 and Atlanta on September 13.

The meetings were well at-

tended as more than 60

people came to the Macon

hearing, over 120 showed

up in Savannah and about

85 citizens attended the

Rome session.

Further hearings in the

Georgia Power rate case will

get underway November 8

through the 10 and Decem-

ber 1 through Commission is

the 3rd. The scheduled to

Citizens fill the room at the Civic Center in Rome, Georgia to voice their opin-

issue its decision in this case

ions on pending rate cases

on December 21, 2010.

Commissioners listen to citizens in Macon at the Bibb
County Commission chambers

Commission Ensures Pipeline Safety AGLC Decision

(Continued from page 3)

tions during 1,029 inspections, (Continued from page 2)

Georgia customers. With eight expending 1,560 inspection days. of hearings this year on the

qualified inspectors, each in- These inspections addressed op- AGLC request, August 10-11,

spector is responsible for ap- erator qualifications and integrity September 13-14 and October

proximately 9,769 miles of management along with accident 12-13, 2010. In addition, the

natural gas pipeline along with investigations and follow up in- Commission held four public

250,000 customers. The inspec- spections that monitor operators meetings to take comments on

tors evaluated operator compli- for violations of the law.

the AGLC request.

ance with pipeline safety regula-

PAGE 5

GPSC NEWS

VOLUME 9 ISSUE 4

Atlanta Gas Light Files CNG Proposal in Response to Commissioner Everett Challenge

T he Commission is considering a conceptual plan filed Sep-

the initial station locations will be determined based on

tember 7 by Atlanta Gas Light

proximity to commercial

Company (AGLC) to construct a

fleet customers who con-

network of compressed natural

tract for the service.

gas (CNG) vehicle fueling stations

Commissioner Everett

throughout the metropolitan At-

has been working with the

lanta region and along major

utility on its proposal over

transportation corridors in the

the last year, and on July

state. The filing is in response to

29, 2010 he issued a direct

a challenge issued in July by

Commissioner

H.

Doug

Commissioner

challenge to the company to bring forth a conceptual plan.

Everett.

H. Doug Everett

In issuing his challenge, Everett

Under the proposal, AGLC will de-

recognized several promising

velop the CNG fueling infrastruc- CNG to the public. The general developments that may advance

ture and Georgia's and other

make it available for natural gas marketers service providers to sell

public will have full access to each fueling station, however

CNG use, including corporate commitments to utilize the clean burning fuel for fleets, and tax

and vehicle rebate incentives cur- tract investment in the market rent ratepayers using a portion

rently under consideration by and promote CNG vehicle pur- of the current surplus in the

Congress. He also emphasized chases. Expanding the use of Universal Service Fund (USF).

the need to insulate current AGLC clean, domestically-available The USF is funded through

customers from subsidizing the natural gas will reduce the re- AGLC's industrial service pro-

new business development.

gion's dependence on foreign ceeds, by a share of proceeds

"Georgia is leading the way to- oil," he said.

from AGLC's asset management

wards energy independence," said If approved, AGLC would invest program, and from other

Everett. "The Peach State is the up to approximately $10 million sources such as interstate pipe-

first in the country to build a nu- to construct the new fueling sta- line service refunds. Ongoing

clear reactor in over thirty years, tions, which would range from operational expenses would be

and we can be the first state in $1 million to $1.6 million each. paid by the fleet operators and

the southeast to build a viable AGL would fund the initial capi- other CNG vehicle owners who

CNG vehicle network that will at- tal investment at no cost to cur- utilize the service. AGLC will

use revenues from these sta-

tions to invest in additional CNG as part of a collaborative proc-

Commission Approves

stations throughout the state, and ess," said Commissioner

New Solar Power

provide a low cost lease option for residential and small business

Everett. "We will have some of the brightest minds in this field

Option

customers to install individual fill units. The stations would not be

at the table to build a sustainable

business model that encourages

(Continued from page 2)
the Company's

fuel

clause.

constructed until commercial cus- investment and deployment of Georgia Power will continue to

tomers enter into contracts to ob- these facilities while not placing make quarterly filings which

tain service for a minimum num- ratepayers at risk," he said.

provide information about the

ber of vehicles on an annual ba- A decision is expected in the first Green Energy Program includ-

sis.

quarter of 2011.

ing the program's current re-

"This proposal will be considered

covery position.

VOLUME 9 ISSUE 4

GPSC NEWS

PAGE 6

Commission Celebrates Lifeline-Linkup Week

The Commission on September 9 kicked off Lifeline

costs). Lifeline also covers cellular telephones.

Link-Up Awareness Week in

"We want to get the

Georgia, September 12-18,

word out during Lifeline

2010, during a news conference

Link- Up Awareness

at the H.J.C. Bowden Senior

Week about this valu-

Multipurpose Center in East

able benefit which can

Point, Georgia. Commission

save qualified telephone

Chairman Lauren "Bubba"

customers hundreds of

McDonald, Jr. along with Com-

dollars and keep them

missioner H. Doug Everett

connected to the tele-

announced the beginning of a

phone network," said

week long effort to make more

McDonald, "As valuable

Georgians aware of this tremen-

as this benefit is, we

dous benefit.

know there are thou-

Lifeline provides a monthly credit Chairman Lauren "Bubba" McDonald, sands of Georgians who

of up to $10 off your monthly lo-

Jr. kicks off

are not taking advantage

cal service telephone bill (AT&T Lifeline Link-Up Awareness Week of it."

gives while

a $13.50 monthly Link-Up assists with

credit) paying

up to 50% of installation costs, not to exceed $30 (AT&T pays 100% of installation

As of December 31, 2009, there are 128,259 Georgians who are re-

ceiving this credit. While this

zens discount

number represents a 43 percent

from power or gas

increase over the past three

company, SSI,

years, there are thousands more

Medicaid, Federal

who could qualify but are not

Public Housing

signed up. In fact, as many as

Assistance, or

one million Georgians may be eligible.

L o w -I n c o m e Home Energy As-

In order to qualify for these pro-

sistance Program.

grams, a consumer must be a

Other Lifeline

participant in any one of the fol-

Link-Up Aware-

lowing programs: Temporary

ness Week partici-

Assistance to Needy Families Will Culbreath and Claudette Willingham the pants taking part

(TNAF), Food Stamps, senior citi- Commission desk to sign up consumers for the in today's an-

Lifeline Link-Up Program

nouncement were

AT&T-Georgia, Atlanta Regional Commission, Georgia Telephone
Association and Windstream Georgia. Eligible consumers should contact their prospective or current telephone service provider to find out if they offer Lifeline/Link-up credits
and if so, to file an application to receive Lifeline or Link-Up assistance. Consumers may apply the discount towards either their home

phone or cell phone service. Lifeline/Linkup Week is a joint effort of the National Association of Regulatory Utility Commissions (NARUC), the Federal Communications Commission (FCC) and the National Association of State Utility Consumer Affairs (NASUCA.)
Will Culbreath talks with seniors at the H.J.C. Bowden Center

VOLUME 9 ISSUE 4

GPSC NEWS

PAGE 7

Employee News

McGriff Chairs National Speedy Recovery
Association

Sympathy

Our own Danny McGriff, head To Commissioner Doug Everett of the Commission's Pipeline who underwent knee replacement
Safety Unit, has started his one- surgery on October 29 at St. Joyear term as Chairman of the seph's Hospital in Atlanta. ComNational Association of Pipeline missioner Everett is doing well and Safety Representatives. Danny back at work.
has previously served as NAPSR
vice-chairman and on the Southern Regional Board.

To Nancy Gibson on the passing October 29 of her mother-
in-law JoAnn Cowles. To Ann McCullough on the passing of her brother October 30.

Commission KP Corporate Challenge Runners

T hirteen Commission Sheree Kernizan staff members took Bolin Killings

part in the 2010 Kaiser Ann McCullough

Permanente Corporate Dennis Sewell

Challenge 5K Walk Run Phil Smith

through downtown Atlanta Veronica Thomas

on September 16, 2010. Julia Truss

They were:

Barbara Wolfe

Monique Andrews

Everyone finished in good

Tom Bond

shape. A special thanks to

Heather Borst

the Commissioners who

Janey Chauvet

donated to buy our team

Bill Edge

T -shirts!

PSC Corporate Challenge Team

Retirements:Farewell

P hilip Bedingfield retired from the Commission September
30 after more than ten years of service with the state. Colleagues
and friends gave him a retirement party on

September where he received a

Retirement cake

Commission resolution honoring his service. Philip was a utility

analyst in the Electric Section.

PAGE 8

GPSC NEWS

Commission News

Georgia State Holidays For 2010

VOLUME 9 ISSUE 4
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

November 2010 2-Administrative Session 8-10-Georgia Power hearings 10-Committees 18-Administrative Session
December 2010 1-3-Georgia Power hearings 2-Committees 7-Administrative Session 16-Committees 21-Administrative Session 30-Committees

Commission Calendar

January 2011 4-Administrative Session 13-Committees 18-Administrative Session 27-Committees
February 2011 1-Administrative Session 10-Committees 15-Administrative Session 24-Committees

NARUC
Annual Convention 2010 November 14-18, 2010 Atlanta, Georgia
Winter Meeting 2011 February 13-17, 2011 Washington, D.C.
Summer Meeting 2011 July 17-20, 2011 Los Angeles, California

SEARUC
Annual Meeting 2011 June 12-15, 2011 Nashville, Tennessee
GPSC ONLINE:.psc.state.ga.us

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.

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