GPSC news, Vol. 12, no. 1 (Winter 2012)

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