GPSC news, Vol. 11, no. 3 (Summer 2011)

GPSC

GPSC News Summer 2011

Volume 10 Issue 3

*Resolves Risk Sharing Mechanism *Company Agrees to reviews of expenses *Commission retains authority to review all expenses

In this issue

Legislative Update

2

Commission Holds

3

Renewable Forum

Gibson to Head Consumers 3 Affairs

Nantz to Head Facilities 4 Protection Unit
Everett Applauds CNG Filing 4
McDonald Calls for More 5 Solar Projects
Commissioners View Natural 5
Echols Holds Summit with 6 Bus Operators

Commission Approves Settlement

in Georgia Power Plant Vogtle

Construction Report

The Commission August 2 unanimous-

ly approved an agreement

in the Georgia Power

Plant Vogtle Construction

Monitoring docket that

settles a nearly two year

old issue on cost over

mission has. We get to the Commission Staff

runs during construction

look at these expenses agreed to withdraw its

of the two new nuclear

all the way to 2016 and support for its proposed

reactors near Waynesbo-

2017."

risk sharing mechanism.

ro, Georgia.

In exchange for the The Commission also ap-

Commission Chairman

Company agreeing to the proved a consent agree-

Stan Wise said, "Any ex-

Commission Staff's posi- ment to resolve issues

penditure by Georgia

tion that the Commission stemming from a natural

Power Company is subject

retains the ability to dis- gas pipeline explosion on

to this Commission's re-

allow costs as imprudent September 28, 2010 in

view for reasonableness

even after they have the city of Cairo, Georgia

and prudency. That's the

been verified and ap- that resulted in one fatal-

hammer and the most

proved in the semi- ity.

important tool this Com-

annual review process,

Commission Warns Consum- 6 ers About Bus Companies

Employee News

7

Commission Cuts Georgia Power Fuel Rate

Commission Calendar

8

Next Issue November 2011

The Commission on May 24 voted 4-1 to

reduce Georgia Power

Company's residential

customer fuel cost recov-

ery rates by 64 cents a

month. These rates are

used by Georgia Power

Company to recover the missioners agreed, that residential customer, one

cost of fuel used to gen- the fuel cost recovery who uses 1,000 kilowatt

erate electricity.

rates be lowered by an hours. A majority of

Georgia Power Company average of 64 cents per Commissioners approved

requested, and the Com- month for the typical

(Continued on page 2)

PAGE 2

GPSC NEWS

VOLUME 10 ISSUE 2

Commissioners Visit North Georgia Area Hit
Legislative News
by Tornado

The state ended the 2011 fiscal year on a positive

note, with a revenue growth

rate of more than eight percent

compared to FY 2010. June's

revenue collections were up

$1.1 billion or eight percent

compared to June last year.

The legislature is scheduled to

return on August 15 for a Spe-

cial Session to redraw the

Ringgold, Georgia on May 3 to

state's Legislative, Congres-

inspect the horrific damage in-

C sional and Public Service Com-
mission districts in the decenni-

ommissioners Doug Everett flicted on that community durand Lauren "Bubba" McDon- ing the April 28 tornadoes.

al redrawing following the re- ald, Jr. visited Catoosa County and The Commissioners met with

lease of the new U.S. Census

officials of Ringgold Telephone

figures. As a result, Georgia will If you have a story for the next

Company and toured the dam-

gain one additional seat in the GPSC News, please send to Bill

aged areas in Ringgold and Ca-

U.S. House of Representatives.

Edge, bille@psc.state.ga.us. Next toosa County.
issue deadline is October 15, 2011.

Commission Reduces Georgia Power Fuel Rate

(Continued from page 1)

Company filed an application to Whether actions leading to

Commissioner McDonald's motion adjust its fuel cost recovery the unplanned nuclear plant

to adopt the proposed rates to rates under Docket Number outages and fossil-fueled plant

allow recovery by the Company of 33302. The Commission held a outages were clearly imprudent.

replacement fuel cost resulting hearing on May 9, 2011, to take Whether three-part time of

from unplanned outages and to evidence and to hear testimony use (TOU) fuel rates should be

provide that $5.5 million in pro- by all interested parties. Wit- implemented.

ceeds from a legal settlement be nesses testified to a variety of The appropriate amortiza-
used to offset the unrecovered issues relevant to setting appro-

fuel cost balance.

priate fuel cost recovery rates, tion period for the unrecovered

On March 1, 2011, Georgia Power including:

fuel cost balance.

Forecasted cost of fuel and sales for the next year and a half. Georgia law allows electric utilities to recover prudently incurred fuel costs on a dollar for dollar basis (O.C.G.A. 46-2-26), but they are not allowed to make a profit on their fuel costs. The new fuel rates will take effect with bills beginning June 1, 2011.

Commission Sets Hearing in Telecom Complaint Against Halo Wireless

The Commission June 23 certificated by the Commission approved an Expedited to operate a telephone system

Procedural and Scheduling Or- or to provide telecommunica-

der to hear testimony on TDS's tions services within the State

complaint that Halo Wireless, of Georgia.

Inc., Transcom Enhanced Ser- TDS Telecom is complaining on

vices, Inc., and other affiliates, behalf of Blue Ridge Telephone

have failed to pay intrastate Company, Camden Telephone

access charges and are not

(Continued on page 6)

VOLUME 10 ISSUE 1

GPSC NEWS

PAGE 3

Commission Holds Renewable Forum

More than 100 people gathered on July 11 at

the State Capitol to hear

experts from industry, fi-

nancial markets and the

renewable energy field take

part in the Georgia Renewa-

ble Forum.

Commissioner Lauren

"Bubba" McDonald, Jr.

presided over the Forum

inside the historic Appropri-

ations Committee Room at Commission Chairman Stan Wise Audience fills the room during

the Capitol.

welcomes participants to the Forum

the Forum

The audience heard from

Jeff Burleson, Vice-President Capital Group; and Ryan J. Pletka, Resources Plan the utility is re-

of System Planning for the Project Manager for Black and Veatch quired to file every three years.

Southern Company; Rich in the company's San Francisco of- Pletka noted that renewables as

Wolf, Vice-President and fice. Burleson outlined the Integrated a total mix of U.S. electric gener-

Investment Analyst for the

ation had doubled since 1990.

Commissioner McDonald presides
over the Forum

Wolf said that from the investor sector, solar energy is the investment choice. He expects solar price per kilowatt hour to drop to $1.10 by 2015. Also in attendance was Representative Don Parsons, Chairman of the House Energy Committee and Representative Karla Drenner, a longtime supporter of renewable energy and member of the Committee.

Other panelists listen as Investment Analyst Ryan Pletka makes his presentation

Gibson Named as Consumer Affairs Manager

The Commission May 3 named James D. Gibson as Manager of the Consumer Affairs Group. Mr. Gibson came to the Commission in April 2000 as an Information Referral Specialist. He was promoted to Consumer Analyst One in 2001 and to Consumer Analyst Two in 2002. He previously had been

James Gibson

with Atlanta Gas Light Company for more than 20 years where he held positions as a Credit Department Representative, Customer Service Representative and Customer Service Supervisor. He holds a Bachelor of Arts Degree from Georgia State University.

PAGE 4

GPSC NEWS

VOLUME 10 ISSUE 1

Nantz Named to Head Facilities Protection

The Commission May 3 unanimously approved the ap-

Commission Chairman Stan Wise. "This Unit carries tremen-

pointment of Michael C. Nantz

dous responsibilities for protect-

as the new director of the Com-

ing the citizens and the under-

mission's Facilities Protection

ground infrastructure of our

Unit. Mr. Nantz will replace out-

state. We look to forward to Mr.

going Director Danny McGriff,

Nantz carrying our Facilities Pro-

who is retiring after more than

tection Unit to the next level.

31 years of service with the

The Facilities Protection Unit is

state.

Commission in January 2003 responsible for protecting the

Mr. Nantz has wide experience in and in July 2009 became Direc- public and environment from ac-

the state regulatory arena. Prior tor of the Consumer Affairs cidental release of natural gas or

to joining the Georgia Public Ser- Section. He graduated from other liquid products by incorpo-

vice Commission, he served Francis Marion University in rating a technologically ad-

more than 12 years with the Florence, South Carolina.

vanced compliance program that

Kentucky Public Service Com- "We are pleased to be able to promotes educational standards

mission where he held various promote someone with the cali- for the industry and contributes

staff positions which included ber of Mr. Nantz's credentials to to the health and security of

working in the Pipeline Safety head our vitally important Facil- Georgia.

Division. He joined the Georgia ities Protection Unit," said

Everett Applauds Atlanta Gas Light CNG Filing

Commissioner Doug Everett applauded Atlanta Gas

believe now that Georgia will attain many long term benefits

Light Company for its May 1 fil-

from investing in CNG infrastruc-

ing of a plan for Compressed

ture. Georgia has the opportuni-

Natural Gas fueling stations in

ty to become the leading state in

Georgia. "Last summer, I called

the Southeast by establishing a

on Atlanta Gas Light Company

statewide CNG network. Also,

to develop a plan to stimulate

investing $11 million from the

investment in compressed natu-

USF can produce an additional

ral gas vehicles and CNG fueling

$10 million $20 million in pri-

stations throughout Georgia. I believed then and continue to vate investment in CNG stations,

and significantly more as fleets while placing no additional costs fident we can begin to see in-

add new CNG vehicles. Use of on AGL's current customers.

vestments being made in Geor-

the USF to stimulate private in- While I shall withhold passing gia by the end of 2011."

vestment in fleets and stations judgment on the plan filed by At- The Atlanta Gas Light plan is

is one more step this commis- lanta Gas Light today, I am very filed under Docket 32499.

sion should consider to help im- pleased that the process we be- The Commission is scheduled to

prove Georgia's recessed econo- gan last September has resulted issue a decision on this in the

my.

in a significant level of interest fall.

There is a current one-time sur- from the potential CNG retailers,

plus in the Universal Service fleet owners and the general pub-

Fund which can be used to seed lic. Following a thorough exami-

important private investment nation of this proposal, I am con-

VOLUME 10 ISSUE 1

GPSC NEWS

PAGE 5

McDonald Calls for More Solar Energy Projects

C ommissioner

Lauren

"Bubba" McDonald, Jr.

source mix." McDonald added that one option

on June 7 called on Georgia

would be to carve out additional

Power Company and the staff

capacity for solar energy from

of the Commission to present

the Georgia Power 2015 Re-

to the Commission options on

quest For Proposal (RFP) seek-

the expansion of large scale

ing additional electric generation

solar energy projects in Geor-

capacity. He added that another

gia within 30 days.

option would be an amendment

"I have been and continue to

to Georgia Power's Renewable

look for ways to encourage the

Action Plan that would allow for

development of solar energy in

the possibility of including solar

the state of Georgia," McDonald price of fossil fuels. As the cost of energy through a Purchased

said. "As part of an overall solar energy continues to decline, Power Agreement. (PPA)

portfolio

mix,

I

believe

solar Georgia Power and this Commis-

Commissioner McDonald was

energy can serve as a reliable sion should be prepared to move elected to the Commission in

source of clean energy and a toward the inclusion of more solar December 2008. He previously

hedge against volatility in the energy in Georgia Power's re-

(Continued on page 7)

Commissioners View Natural Gas Pipeline Safety Drill

Commissioners Stan Wise and Doug Everett got an up close and personal look at a natural gas pipeline explosion safety drill on May 11, 2011 in Cobb County. Atlanta Gas Light Company teamed up with Cobb County and Kennesaw city officials to sponsor the training evolution.

The drill which is required of

natural gas companies every

year was designed to test

preparedness of all agencies

involved in resolving natural

gas line breaks.

For the simulations, Kenne-

saw police and Cobb County

Fire and Emergency Services

AGL officials brief Commissioner responded to a 911 call. Ac-

Wise on the safety drill

cording to the call, a con-

tractor broke a weld where a 12-inche gas line met a 24inch line while digging Cobb International Boulevard. City and county responders and gas company officials reacted to the drill as if it were a real incident. Commissioner Wise said the "call before you dig laws have made a difference in the num-

Commissioners Wise and Everett discuss the safety drill

ber of gas line incidents reported to the state. "There's still always a chance of an incident and that's why we have these drills," Wise said. The Commission's Pipeline Safety program is ranked among the top five programs in the nation.

PAGE 6

GPSC NEWS

VOLUME 10 ISSUE 1

Echols Holds Summit with Charter Bus Operators

C ommissioner Tim Echols missioner Echols. "It is my hope local law enforcement, school June 9 hosted representa- that by building this relationship principals, fraternities, sorori-

tives from more than two dozen with our legitimate transportation ties, youth pastors and many

charter bus transportation compa- companies we can better educate others who charter buses to

nies and the City of Atlanta

ensure that they are using

Bureau of Taxis and Vehicles

companies who are registered

for Hire in order to explore

with the Public Service Com-

ways to better protect Georgia

mission. All of us at the Com-

consumers from illegal or

mission are concerned with

"rogue" operators. "Charter

the safety of Georgians and

companies that operate with-

are working hard each and

out the proper insurance and

every day to ensure that these

certification not only put their

individuals and organizations

passengers at risk but they

are protected."

hurt legitimate businesses run

Under current Georgia law

by hard working families

Commissioner Echols Meets with bus (O.C.G.A. 46-7-2, 46-7-3,

throughout our state," said Com-

operators

(Continued on page 7)

Commission Warns Consumers About Two Bus Companies

The Commission on June 23 Point, Georgia after finding the without federal operating auposted consumer warnings companies posed an imminent thority and without the required

on its web site about two Georgia hazard to public safety.

level of insurance.

based charter bus companies The federal cease and desist or- According to the FMCSA, H&W

which received cease and desist der was issued following a com- Tour: 1. failed to conduct pre-

orders from the Federal Motor pliance review by Federal Motor employment drug tests on its

Carrier Safety Administration. Carrier Safety Administration drivers and failed to institute a

FMCSA issued the orders to H & (FMCSA) inspectors that found random drug and alcohol testing

W Tour Inc. of Doraville, Georgia, that the companies' continued program as required by federal

and to JCT Motor Coach of East transportation of passengers regulations; 2. failed to ensure

that its drivers comply with hours-of-service requirements, records of duty requirements and driver qualification requirements and; 3. buses were not properly inspected, maintained or repaired by the company as required by federal regulations. The FMCSA Imminent Hazard Out-of-Service order stated, "Individually and cumulatively, these violations and conditions of operation substantially increase the likelihood of serious

injury or death to H & W Tour Halo Wireless Complaint

drivers, passengers and the mo-

toring public." The order directed (Continued from page 2)

the companies' buses currently and Telegraph Company, Inc.,

on the road to "proceed to their Nelson-Ball Ground Telephone

next immediate destination Company, and Quincy Tele-

where the passengers can be phone Company.

safely accommodated."

Halo Wireless, Inc., disputes

The FMSCA orders prohibit H & W the propriety of these charges.

Tour, Inc. and JCT Motor Coach The Commission will hear that

from engaging in intrastate testimony

and

cross-

transportation as well of course examination of the witnesses

interstate transportation.

at a public hearing on August

9, 2011.

VOLUME 10 ISSUE 1

GPSC NEWS

PAGE 7

Employee News

Congratulations

Sympathy

T T o Terry Pritchett on the birth of a grandson, Cooper

o Terry Pritchett on the ing of her father Harold Andrews passing of his mother, on July 27. The funeral was held

Connely Rice who was born at Evelyn Pritchett on May 31. on August 1 in Newnan, Georgia.

9:30 pm on April 27. He weighed The funeral was held on June 2

in at 8 pounds and 20.5 inch- at Carmichael's Funeral Home

es. Cooper has a lot of black in Smyrna, Georgia. hair. Parents Amanda and Rich- To Bev Knowles,

Welcome

ard are very excit-

former Utilities Director

ed and the

here at the Commis-

To W. Mason Stahl as a

Grandparents are

sion, on the passing of his Commission summer intern. He is

elated!!

mother, Opal Knowles on a law student at the University of

June 1. The funeral was held Georgia. Mason will be working June 3 in McDonough, Georgia. on a variety of projects during his To Margie Conley, Human Re- time here.

sources Director, on the pass-

Farewell

To Danny McGriff who retired effective May 1 after

with the City of Lawrenceville. Lisa, known as "Critter", had

more than 30 years with the

been with the Commission

Commission. Danny is continuing since 2005.

to serve the Commission in a

To Dan Cearfoss who retired

consultant role until October 1. July 29 after 30 years with the

A sincere thank you to Danny Commission. Dan was a Chief

McGriff for the great job that you Public Utilities Analyst oversee-

have done and the wonderful ser- ing many major rate cases

vice that you have provided to during this time here.

the people of Georgia!

Co-workers and friends gath-

To Lisa C. McKnight who left the ered July 26 to wish him good

Commission July 1 to take a job luck and farewell. Dan re-

Dan and his wife Rita listen to tributes during his retirement party

ceived a proclamation from the Commission and a letter from Governor Nathan Deal thanking him for his service to the people of Georgia.

Bus Operators
Summit
(Continued from page 6)
46-7-85.3, 46-7-85.4 and 46-7 -12) all passenger carrier companies that fall under the Commission's authority and operate within the state are required to be registered and have proof of insurance on file with the Commission.

McDonald Calls for More Solar
(Continued from page 5)
served on the Commission from 1998 to 2002 as well as serving 20 years in the Georgia General Assembly where he chaired the House Appropriations Committee.

PAGE 8

GPSC NEWS

VOLUME 10 ISSUE 1

Commission News

Commission Calendar

Georgia State Holidays For 2011

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 3 January 17 April 25 May 30 July 4 September 5 October 10 November 11 November 24 November 25 December 26 December 23

August 2011 2-Administrative Session 11-Committees 16-Administrative Session
September 2011 1-Committees 5-Holiday 6-Administrative Session 15-Committees 20-Administrative Session 29-Committees

Commission Calendar

October 2011 4-Administrative Session 10-Holiday 13-Committees 18-Administrative Session 27-Committees
November 2011 1-Administrative Session 10-Committees 11-Holiday

NARUC
Annual Convention 2011 November 13-16, 2010 St. Louis, Missouri
Winter Meeting 2012 February 5-8, 2012 Washington, D.C.
Summer Meeting 2012 July 22-25 Portland, Oregon

SEARUC
Annual Meeting 2012 Dates TDB Arkansas
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 Stan Wise, Chairman Chuck Eaton, Vice-Chairman
Tim Echols H. Doug Everett Lauren "Bubba" McDonald, Jr.
EXECUTIVE DIRECTOR Deborah Flannagan
EXECUTIVE SECRETARY Reece McAlister