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