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