GPSC
GPSC News Winter 2012
Volume 11 Issue 1
*NRC grants COL to Plant Vogtle Nuclear Construction Project *Commissioners Praise Decision *Completion Scheduled for 2016 and 2017
In this issue
Legislative Update
2
Commission Approves
3
Assistance for Low Income
Natural Gas Customers
Commissioner Wiser Takes 3 Part in Electricity Reliability Roundtable
Commission Praises NCR Approval of Plant Vogtle License
Members of the Commission applauded the Nuclear Regulatory Commission's decision on February 9, 2012 to grant the Combined Construction and Operating License (COL) to the Southern Nuclear Operating Company so that construction of the two new units at Plant Vogtle owned by Georgia Power
Units 1 and 2 at Plant Vogtle Nuclear Power Plant near Waynesboro, Georgia
and other coowners can begin in earnest. This will be the first new nuclear power plant construction in the nation in 30 years. "Getting the license to complete construction for our two new reac-
(Continued on page 2)
Commission Approves
4
Spending Plan for Vogtle
Echols Takes Over as Commission
Commission Approves New 5 Atmos Rate Mechanism
Chairman for 2012
Gas Marketers Explain
5
Pricing
Natural Gas Staff Views 6 Atmos Pipeline Replacement Program
Employee News
7
Commission Calendar
8
Next Issue April 2012
Commissioner Tim G. Echols on January
will chair Transportation and Administrative Af-
15, 2012 began a one-
fairs.
year term as Chairman
"Each Commissioner
Commission for 2012,
brings a level of expertise
taking the gavel from out-
to the committee pro-
going Chairman Stan
cess," said Echols. "They
Wise. Echols is the newest
have the institutional
member of the Commis-
knowledge to serve our
sion.
citizens and industries."
The Commission Chair-
Echols said one of his
manship is rotated annu- Echols appointed Com- most important responsi-
ally among the five Com- missioner Chuck Eaton bilities this year as Chair
mission members based as his Vice-Chairman, is representing the Com-
on Georgia law and Com- Commissioner Stan Wise mission at the Legisla-
mission rules.
as Energy Chair, Com- ture.
"I am honored to serve as missioner Lauren
"I am a big believer in
Chairman of the Commis- "Bubba" McDonald, Jr. legislative intent," said
sion this year," said Ech- as Facilities Protection Echols. "Getting to know
ols. "I appreciate the con- Chair, and Commission- the members of the Gen-
fidence that others have er Doug Everett as Tele- eral Assembly can really
placed in me."
com Chairman. Echols
(Continued on page 2)
PAGE 2
GPSC NEWS
VOLUME 10 ISSUE 2
2012 Legislative Session Update
Lawmakers opened the 2012 session of the Geor-
winding their House on February 23 on a vote way through of 156-3. It is now in the Senate
gia General Assembly on Janu-
the legislative Transportation Committee where
ary 9, 2012 and made it clear
process.
it will receive a hearing after
they intend to do the people's
Chief among "Crossover Day" or the 30th day
business and waste as little as
them is House of the 2012 Legislative Session
possible in getting their job
Bill 865 which on march 7, 2012.
done.
transfers the Unfortunately, the House and
The House approved the
Transportation Senate Amended Budgets con-
Amended Fiscal Year 2012
section to the tain the Governor's recommend-
Budget, H,.B. 741, on February
Department of ed two per cent cut to the Com-
3, 2012, one of the earliest
Public Safety mission's budget, despite our
dates ever for approving a effective July 1, 2012. This bill has pleas to both chamber's budget
budget. It passed by an un- the support of the Commission, committees.
heard of unanimous vote. The the Department of Public Safety Meanwhile, the House takes up
Senate approved its version of and the Governor. It passed the the Fiscal Year 2013 Budget in
the amended budget on Febru-
early March.
ary 23.
If you have a story for the next GPSC The legislators plan to finish
Meanwhile, several bills of in-
News, please send to Bill Edge, their business and adjourn the
terest to the Commission are bille@psc.state.ga.us. Next issue 2012 Session on March 30.
deadline is April 15, 2012.
Commission Praises NRC Vogtle Decision
(Continued from page 1)
tors is a great victory for Georgia, and nuclear power in general," said Chairman Tim Echols. "Now the Public Service Commission can get to work and help ensure that it is completed on time and on budget." Commission Vice-chairman Chuck Eaton noted, "We appreciate the NRC's vote of confidence. The eyes of the coun-
try are upon us as we move forward with this nuclear project. Commissioner Stan Wise called this decision a pivotal step forward. "This is a significant milestone in the construction of Plant Vogtle. This action gives the NRC's blessing to accelerate the process on time and on budget. We appreciate the NRC's confidence in the decisions of those of us on the first level of response."
Commissioner Doug Everett said, "This new nuclear plant is very important to the people of Georgia. It ensures safe and reliable energy to the people for generations to come. The availability of electricity is as important as reasonable and just rates. This plant will help guarantee that Georgia will not have brown outs or blackouts such as you see in some of the other
States." Commissioner Lauren "Bubba" McDonald, Jr. noted the project's massive economic impact. "This decision shows that the Commission has the foresight to plan to provide the most reliable and cleanest energy source for future generations. This is one of the largest construction projects in Georgia history and that means
jobs for Georgians." Almost three years ago, on March 17, 2009, the Commission approved Georgia Power's request to build the two new units at Plant Vogtle. In that approval, the Commission also established an innovative process to monitor the construction of the new units, with oversight by an independent Construction
(Continued on page 3)
Echols Chairs PSC
(Continued from page 1)
help in assuring that appropriate legislation is passed that impacts energy, telecom and transportation." Echols was elected to the Commission in November 2010. He and his wife Windy live in Winterville, Georgia.
VOLUME 10 ISSUE 1
GPSC NEWS
PAGE 3
Commission Approves Assistance for Low Income Natural Gas Customers
Help is available for as many as 60,000 low income natural gas households in paying their winter heating bills following the Georgia Public Service Commission unanimous vote December 6, 2011 to approve the distribution of approximately $10 million to low income senior natural gas customers and low income customers in Group 1 with the Regulated Provider. The assistance will be distributed beginning with the December- January period as a one-time credit of up to $160 on customers' bills. The grants will be disbursed from the natural gas Universal Service Fund and only those customers in the Atlanta Gas
Light Company distribution area are eligible. Commissioner Chairman Stan Wise, who made the motion to provide the assistance, said, "The reality is that the states are getting stuck with the impacts of drastic federal cuts to the energy assistance program and there are
going to be some truly needy people out there when winter heating bills start arriving." Senior citizens who are already receiving the AGLC senior citizen discount will receive the grant on their bills through their natural gas marketer. Senior low income citizens who are not currently receiving the discount but are eligible should submit an application in order to qualify for this assistance. To qualify for the dis-
count, a senior citizen must be age 65 or older, have an annual income of less than $14,355 and have the account in their name. Commissioner Tim Echols added, "In difficult economic times like these, it is a blessing to have funds contributed by large industrial customers to assist low income seniors. We have so many great companies in Georgia and I hope we in government will make the business climate as friendly for them as possible."
Since the inception of the Universal Service Fund (USF), the Commission has approved the disbursement of $64.9 million in assistance for low income natural gas customers on the AGLC system. Additionally, the Commission has approved a total of $117.8 million in grants and refunds to all AGLC customers since 1998. The USF is a fund established under the Natural Gas Deregulation Act of 1997.
Plant Vogtle
(Continued from page 2)
Monitor and the filing of semiannual construction monitoring reports. The Company filed its first monitoring report on August 1, 2009. Plant Vogtle, located near Waynesboro, Georgia, has been in operation since 1987 with the completion of Unit 1. Unit 2 went on line in 1989.
Commissioner Wise Participates in Electricity Reliability Roundtable in Washington, D.C.
Commissioner Stan Wise participated in the National Electricity Reliability Roundtable held February 9, 2012 in Washington, D.C, hosted by the Institute for the 21st Century, an affiliate of the U.S. Chamber of Commerce. Moderators were Karen Har-
bert, President and CEO, Institute for 21st Century Energy, U.S. Chamber of Commerce, and David Wright, President, National Association of Regulatory Utility Commissioners, and
Vice Chairman, South Carolina Public Service Commission. The discussion focused on the challenges in the absence of significant action by Congress on energy issues in the past few years
(Continued on page 4)
PAGE 4
GPSC NEWS
VOLUME 10 ISSUE 1
Commission Approves Spending Plan for Plant Vogtle Construction;
Approves SCANA Energy as Natural Gas Regulated Provider
The Commission February 10 unanimously approved
billion. In the Commission's certification of the construction
Georgia Power's latest request
project in 2009, the Company
for approval of its expenditures
agreed to file semi-annual
at its Plant Vogtle nuclear power
monitoring reports with the
construction project near
Commission. Georgia Power
Waynesboro, Georgia. The
files its next report on Febru-
Commission approved an agree-
ary 28, 2012. This project is
ment between the Company
the first new nuclear power
and the Commission's Public
plant construction in the nation
Interest Advocacy Staff to settle
in 30 years.
issues in Georgia Power's Fifth
In other action, the Commis-
continue and approved the ex-
Semi-Annual Vogtle Construc-
sion unanimously approved
penses and construction schedule
tion Monitoring Report for the
SCANA Energy as the Natural
contained in this filing. The Com-
period ending June 30, 2011.
Gas Regulated Provider for a
mission has certified Georgia
Under the terms of the stipulat-
two year term beginning Sep-
Power's cost of the construction of
ed agreement, the Commission
tember 1, 2012 and ending
Plant Vogtle Units 3 and 4 at $6.1
agreed that the project should
August 31, 2014.
The new Regulated Provider monthly customer service from other marketers or whose
contract provides savings for charge decrease to $6.95. After utility payment history is cited
customers in both Group 1 and 12 months of on-time pay- as reason for transfer from
Group 2. Group 1 senior cus- ments, these customers will Group 1 to Group 2 (Group 2).
tomers will see their monthly also be eligible to return to the The Regulated Provider serves
customer service charge drop by SCANA Energy deregulated those customers in the Atlanta
$0.45, from $1.95 to $1.50, market.
Gas Light Company service are-
while Group 2 customers will The Regulated Provider, estab- as that are served by one of
also see a $0.45 decrease in lished under O.C.G.A. 46-4- the nine certificated natural gas
their monthly customer service 166, provides natural gas ser- marketers.
charge from $9.95 to $8.95. In vice to low-income consumers
addition, Group 2 customers (Group 1) and to customers
who pay their gas bills on time who are unable to obtain or
for six months will see their maintain natural gas service
Wise Takes Part in Roundtable
(Continued from page 3)
and the Environmental Protection Agency (EPA) advancement of an aggressive suite of regulations, many of which impact electric power generation. "Clearly the Department of Energy or the EPA rules, cost, jobs and reliability are at the fore-
front of what utility regulators are trying to protect in their respective states," said Commissioner Wise. The Roundtable also discussed rules such as the Cross-State Air Pollution Rule, Utility MACT, cooling tower regulations under section 316(b), and New Source Performance Standards to address greenhouse gas emissions that have
cumulative impacts on the viability of many existing base load generation units. In order to comply with these regulations, significant numbers of retrofits and retirements of such generation units are likely. These retirements could stress the reliability of the electric system, have unintended consequences on end-use customers, and could force uneconom-
VOLUME 10 ISSUE 1
GPSC NEWS
PAGE 5
Commission Approves New Georgia Atmos Rate
The Commission on Decem-
with a rate reduction."
ber 14, 2011 unanimously
According to the stipulation the
approved an innovative Geor-
GRAM is designed to:
gia Rate Adjustment Mechanism (GRAM) for Atmos Energy Corporation that will reduce rates by $800,000 or about $12.50 for each residential ratepayer in 2012. The Commission approved a ities in Georgia.
1. Produce lower prices for con-
sumers of natural gas in Georgia
2. Provide incentives for the gas
company to lower its costs and rates
3. Reduce regulatory delay and
stipulation or settlement be- Commission Chairman Stan costs tween Atmos and Commission Wise said, "It is a transparent Provide incentives to improve the Staff in Docket 34734 that is process with benefits and protec- efficiency and productivity of the
unique to natural gas regula- tions put in place. It shows the gas company tion in Georgia. Georgia law benefits of not doing business as The GRAM provides that the Com-
allows the Commission to usual as we've done for the past pany will make an annual GRAM adopt alternative forms of 30 or 40 years. It is enlightening filing by October 1 of each year. regulation for natural gas util- that we can begin this process The Commission Staff will have
120 days to review the filing.
Natural Gas Marketers Respond to Government Report on Natural Gas Prices
Representatives of Georgia's certified natural gas marketers appeared before the Commission's Energy Committee on January 12, 2012 to respond to a federal report that Georgia natural gas customers pay rates that are 37% higher than the national average. The marketers noted that Georgia natural gas prices are some-
Marketers explain their natural gas prices to the Commission
what higher due to several factors. Among them: the short winter heating season which forces the marketers to collect their costs over a shorter period. The Bureau of Labor Statistics released the report in December 2011. The news media provided extensive coverage of the meeting.
Wise Takes Part in Washington Roundtable
(Continued from page 4)
ic and imprudent choices involving existing and new infrastructure. "The sustainability of some observer's vision that we can be at 90 per cent renewables, efficiencies and storage in 25 years is just not a sustainable vision,"
Wise added. .Other participants in the Roundtable included: Congressman Gene Green (D-TX); Congressman John Shimkus (R-IL); Congressman Lee Terry (R-NE); Chairman Art Graham (Florida Public Service Commission); Chairman Todd
Snitchler (Public Utilities Commission of Ohio); Commissioner Cheryl LaFleur (Federal Energy Regulatory Commission); Commissioner Philip Moeller (Federal Energy Regulatory Commission.) Commissioner Wise is a past
(Continued on page 6)
PAGE 6
GPSC NEWS
VOLUME 10 ISSUE 1
Natural Gas Unit Audits Atmos Pipeline Replacement Program
S ince 2001, under the Commission Order in Docket
12509, the Atmos Energy Cor-
poration has implemented its
Pipeline Replacement Program
(PRP). In its order the Commis-
sion approved the replacement of
a total of 230 miles of pipe in the
Atmos service territories of Co-
lumbus and Gainesville. A total
of 184 miles of cast iron pipe will
be replaced over a 15 year period in Columbus, Georgia and 46 Daphne Jones, Janey Chauvet, Harmiles of bare steel pipe will be old Woods (Atmos), and Bolin Killreplaced over a 20 year period in ings discussing the specific pipe Gainesville, Georgia. The PRP is replacement being conducted in funded through a rider in the this residential neighborhood in Coform of a monthly surcharge from lumbus, Georgia.
Atmos' customers. The Company's projection is that the cast iron pipe replacement in Columbus will be completed in 2013 and in Gainesville all bare steel pipe will be completely replaced in 2016. Atmos files annual and quarterly reports summarizing the work performed and costs incurred in its PRP. The annual report covering Atmos' fiscal year, which ends on September 30th,is filed in February following its fiscal year end. The Natural Gas Staff audits the program in Columbus every year dur-
ing the month of May. Staff members Janey Chauvet (Team Leader), Daphne Jones, and Bolin Killings are the members of the audit team. The Staff's audit of the PRP consists of reviewing the Company's annual report and the invoices associated with the ty to the state in which it was program for the fiscal year un- found and other supporting equipder review. The invoices are ment needed to complete PRP for the costs incurred from pipe jobs. The Company employees removal and installation, con- assigned to the program are tractors used, return of proper- available during the audit to an-
swer Staff's questions and/or con-
cerns. Staff then holds an exit conference with Atmos employees at the end of each audit to discuss Staff's findings. Accompanied by Atmos employees and contractors, Staff also participates in field visits to locations where the Company has either replaced pipe or where work is currently being done under the program. During the field visits Staff has the opportunity to question Atmos employees and contractors who are actually re-
placing the pipe. The field visits also allow Staff the opportunity to view the equipment being used to complete various projects under the program. Atmos' employees and contractors are always very professional, accommodating and willing to answer Staff's questions.
Roger Garms (Atmos) and Bolin Killings capturing the action taking place.
Wise
(Continued from page 5)
President of the National Association of Regulatory Utility Commissioners (NARUC) and currently is a member of the NARUC Board of Directors. He is serving in his third term on the Georgia Public Service Commission.
VOLUME 10 ISSUE 1
GPSC NEWS
PAGE 7
Employee News
Updates
16. From Yolanda: I want to THANK EACH AND
Former Commission employee and attorney John Tucker is retiring from his law practice in blue Ridge, Georgia.
EVERYONE OF YOU for your support last week. It was GREATLY APPRECIATED, more than words can express. The phone calls, emails, texts,
Congratulations
cards and just knowing that you were praying for me and
To Bill Edge on the birth of a
my family really comfort my
great-niece, Olive Williams, in
soul! I am so thankful for work-
Proud Grandpa Terry Pritchett Rome Georgia on February 25,
ing with a great group of peo-
says grandson Cooper Rice is 2012.
ple! It was a true spirit of peace
getting bigger every day.
that resided in me that made
Cooper will be one year old on
Sympathy
this difficult time a little bit eas-
April 27, 2012.
To Yolanda Clay on the pass- ier. May God bless you and ing of her father on February keep you all!
Retirement: Farewell Bruce!
Friends, family and coworkers celebrated Bruce Morgan's retirement from the Commission on February 21. Bruce is retiring after 34 years at the Commission, the latest as Deputy Director of the Facilities Protection Unit. Facilities Unit Director Mike Nantz presided over the festivities. There were also remarks from former Facilities Director Danny McGriff and Commissioner
Doug Everett. Mike presented Bruce with proclamations honoring his service to the state
from Governor Nathan Deal and the Commission. Commissioners
Chuck Eaton, Stan Wise and Lauren "Bubba" McDonald, Jr. were also on hand to wish Bruce a fond farewell.
Commissioner Doug Everett relates stories about Bruce's
service at the Commission
Hearing room is filled with Bruce's friends and family to wish him well
on his new venture in retirement
PAGE 8
GPSC NEWS
Commission News
VOLUME 10 ISSUE 1
Commission Calendar
Georgia State Holidays For 2012
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 2 January 16 April 23 May 28 July 4 September 3 October 8 November 11 November 22 November 23 December 24 December 25
February 2012 2-Committees 7-Administrative Session 16-Committees 21-Administrative Session
March 2012 1-Administrative Session 10-Committees 11-Veteran's Day 15-Administrative Session
Commission Calendar
April 2011 1-Committees 6-Administrative Session 15-Committees 20-Administrative Session 29-Committees
May 2012 1-Administrative Session 10-Committees 15-Administrative Session 24-Committees
NARUC
Winter Meeting 2012 February 5-8, 2012 Washington, D.C.
Summer Meeting 2012 July 22-25 Portland, Oregon
Annual Convention 2012 November 13-16, 2012 St. Louis, Missouri
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 Tim G. Echols, Chairman Chuck Eaton, Vice-Chairman
H. Doug Everett Lauren "Bubba" McDonald, Jr.
Stan Wise
EXECUTIVE DIRECTOR Deborah Flannagan
EXECUTIVE SECRETARY Reece McAlister