GPSC GPSC News Fall 2011 Volume 10 Issue 4 *AGL could use $11.5 million from USF *USF funding for five years *Plan includes fleet and retail customers *Legislation allows use of USF for CNG stations In this issue Hearing on Plant Closures 2 Commission Approves Plant 3 Vogtle Construction Agreement Settlement Lifeline Linkup Awareness 4 Week Kicks off Commissioners Tour Lock- 5 heed Martin McDonald Honored 5 Commissioners Attend Fish 5 Fry Nuclear Waste Manage- 6 ment Symposium 7 Employee News Commission Approves Compressed Natural Gas Stations Plan The Commission November 1 took the CNG equipment for five years. first step towards incen- "I am pleased to tivizing the construction see this proposal of a network of Com- take the first step pressed Natural Gas fuel- toward providing a ing stations around the statewide network state. The Commission of CNG fueling sta- adopted by a vote of 4-1 tions," said Com- a revised plan that allows missioner Doug Atlanta Gas Light Compa- Commissioner Everett speaks to Everett, who in ny (AGLC) to use $11.57 news media after the decision July 2010 had chal- million from the Universal lenged AGLC to file Service Fund (USF) to cial consumers. In addition, a proposal for the provide funds for com- private investors are not re- CNG network, "This pressed natural gas quired to make a 50 percent program will allow (CNG) equipment for pri- capital investment in the cost more Georgians to vate investors who build of the CNG stations, a change take advantage of CNG fueling stations. The from the AGLC most recent fil- an alternative fuel plan as adopted allows for ing. Under the Commission ap- that is cleaner and the CNG stations to serve proved plan, the USF funding will less expensive than both retail and commer- only be available to purchase (Continued on page 2) Chairman Wise Testifies Before Commission Calendar 8 Next Issue January 2012 C ommission Chair Stan Wise testified September 14 in Wash- ington, D.C. before Con- gress that proposed clean air regulations will cost jobs and dramatically in- crease electric power rates for Georgians. Wise appeared before the En- ergy and Power Subcom- mittee of the U.S. House Committee on Energy Congress Chairman Wise and Commerce. Wise was one of three state utility regulators to testify before the Congressional panel that day. "In my tenure over 15 years of regulating the electric utility industry, I have never seen the number, the breadth, or the potential impact that this whole group of regu- (Continued on page 2) PAGE 2 GPSC NEWS VOLUME 10 ISSUE 2 Commission Opens Hearings on Power Plant Closures Commission Issues Decision on CNG Fueling Stations Plan C ommissioners listened to (Continued from page 1) cles. The Commission supported testimony from Georgia current fossil fuels such as gasoline this change. AGLC filed their orig- Power witnesses on October 20 and diesel." inal plan on September 7, 2010 as the company seeks to shut- Commissioner Lauren "Bubba" and then filed a revised proposal ter several coal fire electric McDonald, Jr. added, "I applaud on May 12, 2011. generation plants, install pollu- my colleague for his work to make In other action, the Commission tion controls on other plants. this proposal come to fruition. We at approved the distribution of $1 Georgia Power says the uncer- the Commission continue to work to million per year for three years to tainty of new environmental promote energy conservation and Resource Service Ministries to regulations and the cost of in- alternative forms of energy." assist low-income senior natural stalling pollution controls on The Georgia legislature approved gas customers in the replacement older plants is behind its re- changes in the law this year (Senate of natural gas water heaters and quest. Bill 108) which specifically allows the natural gas furnaces. Resource USF to be utilized for natural gas Service Ministries will coordinate fueling infrastructure for motor vehi- the distribution of funds among 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, 2012. five other Community Action Agencies. Each agency is allowed to spend up to $5,000 per recipi- (Continued on page 5) Wise Testifies Before Congress lations will Have on the indus- Commissioner Wise said he is impacts of these rules and by try and on my constituents, further concerned because of the providing more realistic the people of Georgia," Wise "unreasonably short time allowed timeframes for compliance that said. for compliance, which requires would increase reliability and He also noted that the Environ- planning, regulatory approvals, reduce costs. mental Protection Agency has permits, and construction to ad- failed to conduct a study of the dress the rules." entire set of rules that would Wise called for Congress's aid in estimate their impact on elec- making this situation manageable tricity prices, economic activi- by insisting upon a comprehen- ty, number of jobs created or sive study preferably by an destroyed, and the reliability of agency other than EPA on the electric service. Facilities Protection Section Gets a New Look The Facilities Protection Unit recently got a new look for their spaces in the 254 Washington Street Building. The Georgia Building Authority took out several office cubicles and installed instead laptop work stations. Inspectors will be able to set up and log in to complete paperwork when they come to the Commission offices. "This is a welcome addition to our unit," said Facilities Protection Unit Director Mike Nantz. "There is plenty of room for inspectors to work when they are the Commission offices," Mike Nantz and Jeff Baggett look over Nantz added. the new work spaces VOLUME 10 ISSUE 1 GPSC NEWS PAGE 3 Commission Approves Plant Vogtle Construction Settlement The Commission at its Administrative Session August 2 Number 27800, the Commission certified unanimously adopted a proposed the need for the addi- settlement that resolves the tional units and gener- mechanism for dealing with any ating capacity at Plant potential construction cost over- Vogtle. The certification runs at the Georgia Power Com- of Plant Vogtle left unre- pany Plant Vogtle construction solved two issues relat- project in Waynesboro, Georgia ing to the question of in Docket Number 29849. how any potential cost Commission Chairman Stan overruns would be allo- Wise said, "Any expenditure by 2016 and 2017." cated between Georgia Power Georgia Power Company is sub- Commissioner Tim Echols and its customers. ject to this Commission's review said, "I support this agreement The first unresolved issue related for reasonableness and pruden- because I am not willing to send to the Commission's ongoing cy. That's the hammer and the a message to the Company and monitoring of the construction most important tool this Com- their stockholders that nuclear project. Every six months, the mission has. We get to look at power is too risky for Georgia." Commission has hearings to rethese expenses all the way to On March 17, 2009, in Docket view construction costs incurred to date by the Company. Georgia Power had taken the position that once a cost had been verified and approved in that semi-annual process, the Commission could not later disallow the cost as imprudent. The Staff had argued that the Commission retained the right to disallow such costs if it subsequently determined that they were imprudent. The second unresolved issue was the Commission Staff recommendation for a risk sharing mechanism. The Staff had proposed that if the cost of the plant exceeded the $6.1 billion originally approved by the Com- mission by more than $300 million, the Company's stockholders should bear some of those costs even if the cost overruns were prudent. Pursuant to the Commission's order in this Docket on February 25, 2010, the Company and Commission Staff had continued to negotiate a proposed risk sharing mechanism but been unable to reach an agreement. On April 5, 2011, the Commission voted to have further hearings on the issue. The proposed settlement agreement approved August 2 will resolve both of these outstanding issues. In exchange for the Company agreeing to the Commission Staff's position that the Commission retains the ability to disallow costs as imprudent even after they have been verified and approved in the semiannual review process, the Commission Staff agreed to withdraw its support for its proposed risk sharing mechanism. According to the Staff brief filed in support of the Settlement, "The ability of the Commission to review construction costs upon completion of the Units and, if appropriate, exclude from the Company's rate base any costs that were imprudently incurred provides significant protection for the Company's ratepayers in the event the final cost of construction exceeds the certified cost of $6.1 billion." PAGE 4 GPSC NEWS VOLUME 10 ISSUE 1 Commission Celebrates Lifeline Linkup Week The Commission September 7 kicked off Lifeline Link-Up Aware- ness Week as part of a national effort to raise awareness among Geor- gians about this tremen- dous benefit. Governor Nathan Deal joined Com- mission Chairman Stan Wise, Commissioner Lauren "Bubba" McDonald, Jr., Commis- sion staff and represent- atives from the Georgia Telephone Association and AT&T in proclaiming Sep- tember 12-18, 2011 as Lifeline Linkup Awareness From left to right: Bill Edge,; John Silk, Ga. Telephone Associ- ation; Commissioner Wise; Governor Deal; Commissioner in Georgia. McDonald; Pat Wingo, AT&T; James Gibson "We want to get the word out during Lifeline Link-Up Aware- ness Week about this valuable benefit which can save qualified telephone cus- tomers hundreds of dollars yet keep them con- nected to the tel- ephone net- work," said Wise, "As valuable as this benefit is, we know there are thousands of Georgians who are not taking advantage of it." number represents a dramatic gas company, SSI, Medicaid, Lifeline provides a monthly credit increase over the past three Federal Public Housing Assis- of up to $10 off your monthly years, there are thousands more tance, or Low-Income Home En- local service telephone bill (AT&T who could qualify but are not ergy Assistance Program. gives a $13.50 monthly credit) signed up. In fact, as many as Eligible consumers should con- while Link-Up assists with paying one million Georgians may be tact their prospective or current up to 50% of installation costs, eligible. telephone service provider to find not to exceed $30 (AT&T pays In order to qualify for these pro- out if they offer Lifeline/Link-up 100% of installation costs). Life- grams, a consumer must be a credits and if so, to file an appli- line also covers cellular tele- participant in any one of the fol- cation to receive Lifeline or Link- phones. lowing programs: Temporary Up assistance. Consumers may As of June 30, 2011, there are Assistance to Needy Families apply the discount towards either 492,376 Georgians who are re- (TNAF), Food Stamps, senior their home phone or cell phone ceiving this credit. While this citizens discount from power or service. Commission Approves Plant Vogtle Settlement Entrance to Georgia Power's Plant Vogtle (Continued from page 3) 45.1 miles of natural gas pipe- In other action the Commission: line in the AGLC distribution Approved funding for four projects system at a total cost of $31.5 for Atlanta Gas Light Company's million. Integrated Strategic Corridor plan The four projects are in White, in order to extend natural gas Baldwin County, Columbia, Fan- service to un-served areas of nin and Gilmer Counties. Georgia in Docket Number 29950. The projects will add an additional VOLUME 10 ISSUE 1 GPSC NEWS PAGE 5 Commissioners Tour Lockheed Martin Plant Commissioner Stan Wise takes a tour of the Lockheed Commissioner McDonald tries Plant with Lockheed officials his hand at flying the F-22 Commissioners Eaton and Everett walk through the F-22 production line at Lockheed Commissioners got a close up and personal look at the Lockheed Martin Aeronautical Plant in Marietta Georgia on August 5. Commissioners Stan Wise, Chuck Eaton, Doug Everett and Lauren "Bubba" McDonald, Jr. practiced flying the F-22 strike fighter in the Lockheed simulator and then received a guided tour of the Marietta facility. Lockheed offi- cials invited the Commissioners to visit the facility which produces a variety of aircraft for the U.S. military including the F-22 fighter and the C-130 Hercules cargo plane. McDonald Receives Honor for Solar Energy Support S olar power advocates in Georgia honored Commissioner Lauren "Bubba" McDonald, Jr. on September 13 for his support of solar energy in Georgia during the past year. The festivities were held at the Cantsink manufacturing facilities at the Barrow Industrial Park in Winder, Georgia. Cantsink President Patrick Hutchinson presents award to Commissioner McDonald Cantsink President Patrick Hutchison said, "The Commissioner helped support solar energy in our state and we want to thank him for all his efforts." Commissioners Doug Everett and Tim Echols also attended along with officials from the cities of Auburn and Winder. Commissioners Attend Georgia Republican Commission Decides on CNG Party Fish Fry Fueling Stations Plan Commissioners Stan Wise and Lauren "Bubba" McDonald, Jr. gathered with other Georgia Republicans August 27 for the annual Republican Party Fish Fry in Perry, Georgia. Among the guests were Presidential candidate and former U.S. House Speaker Newt Gingrich. (Continued from page 2) ent including a ten per cent administration fee. CNG car on display at Commission PAGE 6 GPSC NEWS VOLUME 10 ISSUE 1 Commissioner Echols Sponsors Nuclear Fuel Management Symposium Commissioner Tim Echols hosted a symposium August Presenters provided an understanding of their organiza- 23 at Georgia Tech on Spent Nu- tion's role in the development clear Fuel Management attended of ultimate long-term solu- by more than 100 scientists and tions available for storing others in the field of nuclear ener- spent nuclear fuel ("SNF"). gy. Georgia Tech professor Bojan "This event provided an oppor- Petrovic presented a thorough tunity for experts to discuss what summary of the nuclear fuel I believe is the most important cycle. This theme was repeat- energy question of our lifetime," ed several times throughout said Echols. "We must change our the day but with emphasis approach to nuclear waste so that placed on the value of that we can recover the remaining en- information to each pre- ergy and decrease the amount of on the current state of spent nu- senter's respective organiza- final waste.." clear fuel management and op- tion. There are 104 reactors The Symposium's main focus was tions for future management. currently in the US with only one under construction. The two amending the Nuclear Waste ergy ("DOE") staff member Mike at Vogtle are not considered to be Policy Act ("NWPA") to create a Goff from the Idaho National under construction until they re- separate organization to manage Laboratory who specializes in ceive their COL ("Combined Li- the country's nuclear fuel waste fuel cycle research provided a cense") from the Nuclear Regula- and to set forth how the Nuclear brief summary of the lab's work tory Commission ("NRC"). Waste Funds ("NWF") are to be and his positions regarding the Dr. Per Peterson of the Blue Rib- dispersed. direction to pursue for the dis- bon Commission ("BRC") on Brittain Hill with the Nuclear posal of SNF. America's Nuclear Future provided Regulatory Commission ("NRC") Mick Mastilovic, Manager of Nu- a quick overview of BRC's recent- spoke to the need for new regu- clear Fuel Supply with the Ten- ly released draft report. Dr. Pe- lation under consideration to ad- nessee Valley Authority ("TVA") terson stressed the most im- dress some of the country's con- gave an overview and footprint portant first step dealing with the cerns regarding safety regula- of its service area which con- SNF situation in the U.S. is tion of SNF. Department of En- (Continued on page 7) Chairman Wise Speaks to Blue Ribbon Commission on America's Nuclear Future Commission Chairman Stan Wise presented remarks October 18 to the Blue Ribbon Commission at its meeting in Atlanta. Wise said, "While we understand the Commission's adherence to the guidance given to you by the Secretary of Energy, we believe the Commission should have recommended that Participants fills room at the BRC Meeting Chairman Stan Wise the Nuclear Regulatory Commission be required to fulfill its obligation to complete the Yucca Mountain license review, in the interest of science and to inform policy makers." Georgia electric customers have paid $586 million (as of 2007) into the Nuclear Waste Fund. VOLUME 10 ISSUE 1 GPSC NEWS PAGE 7 Employee News Congratulations To: Shemetha Jones on the birth of son Kylan Connor Jones who was born on August 2, 2011 at 9:53pm. He weighed in at 7 pounds 7 ounces and 18.5 inches. Dan Walsh on the arrival of his first child, baby girl, Beatrice Eloise Walsh. Beatrice weighed in at 7 pounds and 6 ounces. Sympathy Erica Wilson, Information and Referral Specialist, Consumer Af- fairs To Commissioner Lauren Irma Correa, Bilingual Infor- "Bubba" McDonald, Jr. on mation Referral Specialist, Con- the passing of his sister-in- sumer Affairs. law, Paul Niven Hardy on Chris Wellborn, Inspector, Facil- August 7, 2011. ities Protection Unit The funeral was held on Au- Edward Bradley, Inspector, Fa- gust 10, 2011 at the First Bap- cilities Protection Unit tist Church of Commerce, Blair Fink, Utility Analyst, Elec- Georgia. tric Unit Welcome Leslie Tench, Utility Analyst, Electric Unit. To: Morgan Simmons, Operation Analyst, Consumer Affairs Congratulations to Lisa Jensen on her promotion to Operation Analyst. Team PSC Runs Kaiser Permanente Corporate Challenge Over a dozen Commission staffers took part in the 2011 Kaiser Permanent Corporation Challenge Run/Walk through downtown Atlanta on September 8, 2011. The event annually attracts companies and their employees from all over metro Atlanta to take part in an event that promotes physical fitness and team building. Team PSC gathered with other Team PSC agencies from state government to enjoy food and fellowship under a tent pitched near Turner Field. A special thanks goes out to the Commissioners who contributed to purchase the PSC race shirts you the team wearing see in the photo to the left. Everyone finished the course in good spirits. Nuclear Symposium (Continued from page 6) (INPO), gave an in-depth Paul Murray, Technical Director tains the only plant under con- presentation of his organiza- for Strategic Projects with Are- struction. tion's role and responsibility in va, said the company is current- Southern Nuclear Operating the industry. INPO is an inde- ly in the process of attempting Company spokesman John Pem- pendent non-profit organization to sign partners to facilitate the berton talked about its three nu- entity funded voluntarily by all construction of a mixed oxide clear plant sites, two in Georgia U.S. utilities currently operating fuel ("MOX") facility at a cost of and one in Alabama, and its ef- nuclear generating facilities. approximately $20 billion. Are- forts through litigation with the The French Consul General of va's idea would be to acquire federal government to recover Atlanta, Mr. Pascal Le Deunff, the SNF from U.S. nuclear oper- the cost of storing its nuclear provided a brief summary of ators, reprocess that fuel, and waste. French involvement in nuclear then sell back the usable prod- Retired Admiral James Ellis, the energy which he said provides uct. or reprocessing function. current CEO of The Institute for approximately 80% of France's Nuclear Power Operations electric energy needs. 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 November 2011 1-Administrative Session 10-Committees 11-Veteran's Day 15-Administrative Session December 2011 1-Committees 6-Administrative Session 15-Committees 20-Administrative Session 29-Committees Commission Calendar January 2012 2-New Year's Day 3-Administrative Session 12-Committees 16-MLK Jr. Day 17-Administrative Session February 2012 2-Committees 7-Administrative Session 16-Committees 21-Administrative Session 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 June 3-6, 2012 New Orleans, Louisiana 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