GPSC news, Vol. 12, no. 2 (Spring 2012)

GPSC

GPSC News Spring 2012

Volume 11 Issue 2
*Plant Branch Units 3 and 4 retired *Plant Mitchell Unit retired *Three Purchase Power Agreements Approved *Pollution Controls to be installed on other plants
In this issue
2012 Legislative Wrap-up 2

Governors Signs

3

Transportation Transfer into

Law

Commissioner Everett Com- 4 ments on AGL Plan RFP

Commission Approves Retirement of Georgia Power Coal Plants

T he Commission March 20 by a 4-1 vote approved Georgia Power's request to remove from service, two coal fired electric generation plants at Plant Branch in Putnam County, Georgia and one oil fired generation unit at Plant Mitchell in Mitchell County in southwest Georgia.

Georgia Power Plant Branch, Milledgeville, Georgia

Georgia Power filed

its application in

Docket

Number

34218 to remove

these plants due to

pending U.S. Envi-

ronmental Protection

Agency regulations.

Commissioner Ech-

ols voted no on the

proposal.

The decision allows

(Continued on page 2)

Commission Offers Advice 4 on Hiring Limousines

Commission Approves

5

Electric Arc Furnace Rate

Georgia Power Customers to Save $567 Million in Fuel Costs

5
April Proclaimed Dig Safely 6 Month

Employee News

7

Commission Calendar

8

Next Issue August 2012

G eorgia Power Company March 30

growing econo-

filed fuel rate decreases

mies of

with the Commission

China

that will reduce rates by

and In-

$567 million annually or

dia.

a monthly reduction of recover fuel costs asso-

To re-

approximately 6 percent ciated with generating duce the impact on cus-

for the typical residential electricity and such tomers that an immediate

consumer averaging costs are passed- dollar-for-dollar pass-

1,000 kilowatt -h ours through to ratepayers through would have had

(kWh). The reduced ener- without a profit. Begin- on monthly bills, the

gy costs, anticipated to be ning over a decade ago, Commission required the

in effect for a two-year fuel prices for coal, nat- utility to carry a fuel cost

period based on current ural gas, fuel oil and balance. Although it has

fuel price projections, are other sources increased fluctuated, the under-

mainly the result of con- sharply due to limited recovered balance at one

servative fiscal planning energy supplies in the time reached close to $1

by the Commission and United States and in- billion dollars. According

lower natural gas prices. creased demand world- to Friday's filing by Geor-

Under Georgia law, Geor- wide, primarily from the gia Power, the current

gia Power is entitled to

(Continued on page 3)

PAGE 2

GPSC NEWS

VOLUME 10 ISSUE 2

2012 Legislative Eaton Asks for Earlier Fuel Cost Savings

C Session Wrap-up

ommissioner Chuck Eaton April 26 asked Georgia Power

request with the Commis-

T he 2012 Regular Session of the General Assembly adjourned Sine Die on March 29, 2012 after passing a key piece of Commission backed legislation, House Bill 865, which transfers the Commission's Transportation Unit to the Department of Public Safety, on the final day. The governor signed it on May 1, 2012. The Governor also signed into law Senate Bill 382 which redraws the Commission Districts

Company to decrease its fuel re-

sion

on

covery rates beginning June 1,

March 30 to

one month in advance of the

reduce fuel

planned July 1 date.

rates

by

"I think it's important that we get

$567 million

this money back in the hands of

annually or a

the customers as soon as possi-

monthly re-

ble," said Commissioner Eaton.

duction of

"By lowering rates in June, we can

approximate-

get relief in the summer, when

ly 6 percent

people's bills are highest. We will for the typical residential con-

actually see summer rates go sumer averaging 1,000 kilowatt-

down and not up," Eaton said. hours (kWh). The reduced rates

Georgia Power Company filed a are mainly the result of con-

servative fiscal planning by the

and Senate Bill 483 which relates to the election of the Commission Chairman.

If you have a story for the next GPSC Commission and lower natural News, please send to Bill Edge, gas prices. bille@psc.state.ga.us. Next issue

deadline is July 15, 2012.

Commission Approves Coal Plant Retirements

(Continued from page 1)
the Company to replace the generation from these plants with energy from three Purchase Power Agreements known as PPAs. The PPAs will allow the Company to purchase additional generation from three Southern Power Company generation plants (Harris, West Georgia and Dahlberg). Commissioner Stan Wise

Commissioner Wise

moved to ac- continue to receive an adequate

cept the Com- supply of energy and it will be a

mission's Advi- cleaner product. I also applaud

sory Staff rec- the Advisory staff recommenda-

ommendation tion as a reasonable recommen-

on the issues in dation which this Commission

this

Docket. has mostly agreed to."

Wise said, "The The additional sum takes effect

outcome today in 2019 which is four years past

was appropri- the date when the 2015 PPA

ate.

Electric generation becomes a part of

customers will the Company's resource mix.

The purpose of the additional sum is to encourage the Company to seek long-term power purchases in lieu of self-build projects. Finally, the Commission also approved the Company's request to initiate construction of pollution controls at the Company's Plant Bowen Units 1 through 4, Plant Wansley Units 1 and 2, and Plant Hammond

Units 1 through 4. The Company must make regular updates to the Commission as construction proceeds. Prior to this decision, the Commission held three rounds of hearings in this Docket: on October 20, 2011, on December 5, 2011 and on February 13, 2012.

Commission on YouTube
S ee Georgia Public Service Commission videos on YouTube, at www.youtube.com, on the Commission channel, GaPSC.

VOLUME 10 ISSUE 1

GPSC NEWS

PAGE 3

Transportation Transfer Signed Into Law

I n a ceremony at the State Capitol, Governor Nathan

said Chairman Echols. "From

Deal signed House Bill 865 on

an enforcement

May 1. The law transfers all

standpoint, hav-

transportation functions currently

ing the Depart-

under the regulatory authority of

ment of Public

the Commission to the Depart-

Safety do this

ment of Public Safety effective on

made

more

July 1, 2012. Joining the Gover-

sense."

nor for the bill signing was: State

"This is clearly a

Representative Alan Powell (R-

move for effi-

Hartwell) the bill's House spon-

ciency

and

sor; Commission Chairman

streamlining of

Tim Echols, Commissioner

state govern-

Stan Wise, and Commissioner of

ment,"

said

Public Safety Mark W.

Commissioner

McDonough; staff members from portation industry.

Wise. "When the Commis-

the Commission and Public Safety "The Public Service Commission has sion brought this proposed

and representatives of the trans- no guns, badges or flashing lights,"

(Continued on page 7)

Georgia Power Files to Cut Fuel Costs

(Continued from page 1)
balance is to be completely paid off by March 31, 2012. "Since my service began in 2007, my priority has been to pay down this balance," said Commissioner Chuck Eaton. "I am proud to say we didn't kick the can down the road and push our burdens onto future generations," he added.

Commissioner Eaton credits the Commission's conservative fiscal policies for paying down the balance. The Commission not only established amortization schedules for collecting the under-recovered fuel balance over a reasonable time frame, but in March 2010, when the markets were highly volatile, the Commission created an interim fuel

recovery rider to ensure the balance did not grow larger between fuel cost cases. "Paying down the fuel balance not only saves interest costs for consumers, it also helps maintain the utility's credit rating, which avoids higher borrowing costs for consumers in the future," said Commissioner Stan Wise.

The Commission will conduct a hearing in early June and any new reductions are scheduled to begin July 1, 2012. Commissioner Eaton is serving his first term on the Commission, having been elected in December of 2006. He was one of only four statewide Republican candidates in the entire country to defeat an incumbent during that election year. He served

as Commission Chairman in 2008. Commissioner Wise is a past 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 and previously served as Commission Chair-

man in 1997, 1999, 2006 and 2011. Commissioner Wise's full biography is available on the Commission web site at http:// www.psc.state.ga.us/pscinfo/ bios/wise.asp

PAGE 4

GPSC NEWS

VOLUME 10 ISSUE 1

Commissioner Everett Praises Request for Proposal for Compressed Natural Gas Stations

I am extremely pleased that Georgia is one step closer to

an alterna- private investors who build tive fuel CNG fueling stations.

making a network of com-

that

is The Commission plan as

pressed natural gas fueling sta-

cleaner and adopted allows for the CNG

tions a reality, "said Commis-

less expen- stations to serve both retail

sioner Doug Everett on March

sive than and commercial consumers. In

1. "It has been more than a

current fos- addition, private investors are

year and a half since I chal-

sil

fuels not required to make a 50 per-

lenged Atlanta Gas Light to

such

as cent capital investment in the

begin working on these stations.

gasoline cost of the CNG stations, a

I hope that there will be a ro- and diesel," added Everett.

change from AGLC's latest fil-

bust response to this proposal. I The Commission on November 1, ing.

appreciate the support from my 2011 adopted a revised plan that Under the Commission approved

colleagues for their support last allows Atlanta Gas Light Company plan, the USF funding will only

November in approving this pro- (AGLC) to use $11.57 million from be available to purchase CNG

posal."

the Universal Service Fund (USF) equipment for five years.

"This program will allow more to provide funds for compressed

Georgians to take advantage of natural gas (CNG) equipment for

Commission Offers Advice for Hiring Limousines and Other Passenger Carriers

Prom and graduation season -85.4 and 46-7-12) all passen- (For limo companies) http:// is here again and the Geor- ger carrier companies that fall www.psc.state.ga.us/

gia Public Service Commission under the Commission's au- transportation/limodata.asp

offers some helpful advice for thority and operate within the (For bus companies) http://

Georgians who may be hiring state are required to be regis- www.psc.state.ga.us/

passenger carriers for these tered and have proof of insur- transportation/

events.

ance on file with the Commis- BusCompanyData.asp

Be aware of illegal companies. sion. A list of the licensed com- "We want to make sure parents

Under Georgia law (O.C.G.A. panies can be found on the and their children do not be-

46-7-2, 46-7-3, 46-7-85.3, 46-7 Commission's website:

come victims of illegal and un-

scrupulous chauffeurs," said approved by the Commission

Commission Chairman Tim and who have successfully When making your reservations

Echols. "Check out our web site completed a criminal history always get a written confirma-

and make sure the company you investigation from the Georgia tion. As a reminder, contact the

are considering is listed as certi- Department of Driver Services. company a few days prior to the

fied and vetted by the Commis- All passenger carriers that fall scheduled event to confirm the

sion."

under the Commission's au- arrangements. Remember that

Chauffeurs who drive for li- thority are also required to ob- the Commission no longer regu-

censed limousine carriers are tain from the Georgia Depart- lates the rates charged by lim-

required to have permits which ment of Revenue an intrastate ousine companies so shop

are only issued to drivers that registration permit and vehicle around for the most competitive

work for limousine companies ID stamps.

(Continued on page 6)

VOLUME 10 ISSUE 1

GPSC NEWS

PAGE 5

Commission Approves Pilot Electric Rate to Spur Economic Development

T he Commission April 3 unanimously approved an

Electric Arc Furnace (EAF) Pilot

Rate by Georgia Power Com-

pany for manufacturers who

use electric arc furnaces.

It is hoped the new rate will

encourage additional manufac-

turing in Georgia, increase

employment opportunities and gram. This is the type of pro- March 6, 2012 called for Georgia

keep local industries competi- gram to promote economic de- Power to file the EAF Pilot Rate

tive. The pilot program is de- velopment that we need to con- with the Commission. The Compa-

signed to encourage greater tinue to look at but the most ny filed its proposal on March 9,

utilization of energy by manu- important part is that it does 2012.

facturers and do so in a man- not shift cost. No other custom- "All of us need to do everything

ner that will not shift costs to er class will pay for this pilot," we can to grow manufacturing in

other ratepayers.

said Commissioner Stan this state," said Commission

"I'm encouraged by this pro- Wise. Commissioner Wise on Chairman Tim Echols. "This ef-

fort by the Commission today is with that in mind." Under this pilot program, the EAF Rate Schedule would be

Commissioner McDonald Testifies
Before

effective with bills that are ren- Tennessee Legislature

dered for the billing month of

C June 2012.
The Commission will evaluate

ommissioner Lauren "Bubba" McDonald, Jr.

the EAF Pilot Rate after Sep- testified before the Tennessee

tember 2012 to determine if Senate Government Operations

the new rate increased manu- Committee on March 21 in

facturing production and Nashville, Tennessee. Commis-

whether it shifted any costs to sioner McDonald spoke about

other customers.

the special challenges facing

state regulatory commissions.

"It was my pleasure to meet with my Tennessee colleagues as well as several Tennessee legislators. My goal is to protect consumer interests and that goal knows no state boundaries." Tennessee Regulatory Authority Chairman Kenneth Hill noted that Georgia and Tennessee have long had a working relationship.

Commissioner Chuck Eaton Comments on House Passage of Senate Bill 483

I am pleased with the House vote passing Senate Bill 483. This is an important step forward in allowing the Commission as a political body the right to elect its own leadership. This is a right held by many other political bodies in Georgia. I believe the passage

of Senate Bill 483 ture. This legislation will allow will provide sta- the Commission to better serve bility and conti- the citizens of Georgia. nuity of leader- Commissioner Eaton is servship for the Com- ing his first term on the mission as we Commission, having been deal with many elected in December of critical regulatory 2006. He served as Comissues in the fu- mission Chairman in 2008.

PAGE 6

GPSC NEWS

VOLUME 10 ISSUE 1

April 2012 Proclaimed Dig Safely Month

G eorgia Governor Nathan Deal proclaimed April 2012 as Dig Safely Month in Georgia during a ceremony April 11 at the State Capitol. Governor Deal presented a proclamation to Commissioner Doug Everett and Commissioner Stan Wise, who accepted on behalf of the Georgia Public Service Commission, and to Georgia 811 President and CEO Claudette Campbell. Commission staff, Georgia 811 staff and representatives from the utility owners, excavators, locate contractors who are involved in the prevention of damage to Geor-

gia's underground utility in- The Public Service Commission is as homeowners and helps all

frastructure were also pre- charged with the enforcement of the excavators comply with the

sent.

state's underground utilities damage law.

Commissioner Doug Ever- prevention programs under legisla- "Calling 8-1-1 is the best way

ett said, "I want to remind tion approved in 2000. The Commis- to prevent damage to our un-

anyone who excavates to sion works in close cooperation with derground utilities," said Com-

call before you dig by plac- Georgia 811 which accepts calls missioner Wise, "When un-

ing a call to 8-1-1. It's free from the national federally mandat- derground utilities are dam-

and it's the law. By calling ed "Call before You Dig" Number 8-1 aged, everyone loses."

before you dig, we can pre- -1. This "one call" system is free to Commission Chairman Tim

vent the disruptions and contractors and excavators as well Echols added, "We are pleased

economic losses that can

to join with the Gover-

occur when underground

nor and all interested

utilities are damaged."

groups in working to-

gether to prevent

damages from occurring to the state's underground utility facili-

Advice on Hiring Limousines

ties. Our common goals are to

prevent

the

interruption

of

utility

(Continued from page 4)
price and confirm that price to

services and personal injuries that result from accidents which dam-

avoid last minute surprises. Parents should be aware that

age underground facilities. Since under state law limousine com-

the passage of the Georgia Utility panies are allowed to sell alco-

Facility Protection Act in 2000, holic beverages only if they Georgia has built a damage pre- have been issued a permit to

vention program that ranks in the sell alcoholic beverages from

top five in the nation."

the Georgia Department of

Georgia 811 CEO Claudette

Revenue. However, limousine

Campbell said, "Georgia has rec- companies must obey all appli-

(Continued on page 7) cable local and state laws in-

cluding prohibitions on serving alcoholic beverages to underage minors. Any violations should be reported to local police and the Georgia Department of Revenue. If consumers need more information about passenger carriers or if you have a complaint about service issues, contact the Commission's Transportation Unit at 404-656-4501 or toll free outside metro Atlanta 1-800-282-5813.

VOLUME 10 ISSUE 1

GPSC NEWS
Employee News

PAGE 7

Congratulations
T o Tom and Heather Bond on the birth of Adrienne Bond on April 23, 2012. She weighed in at eight pounds and three ounces.

Sympathy

Welcome

T T o Commissioner Tim Echols on the passing of his

o Marcus Kernizan who will intern with the Com-

stepfather, Claude Roger Talent mission during the summer of

on April 22, 2012. Funeral ser- 2012.

vices were held on April 27 in He is the son of our own Elec-

Fayetteville with burial in South tric Unit Director Sheree

Carolina.

Kernizan.

Marcus will graduate this spring

from Georgia State University

with a Bachelor of Science de-

gree in Public Policy. While at

Georgia State, he has served as

Student Government Vice-

President for Academic Affairs.

Dig Safely Month

Japanese Officials Visit Commission

(Continued from page 6)
ognized Safe Digging month for more than 20 years, encouraging homeowners and professionals to call before digging. Safe Digging Month was first celebrated. In 2007 with the rollout of 811 (the national call before you dig number). This year we celebrate five years of 811 and National Safe Digging Month.

C ommission staff briefed two Japanese officials March 28 on Georgia's nuclear construction project at Plant Vogtle. They were Dr.Motoshige Itoh, Professor of Economics at the University of Tokyo and Hikaru Yamada, President, Sprint Capital Japan, Ltd.

(L to R) Hikaru Yamada, Mososhige Itoh, Steve Roetger, Sheree Kernizan, Shemetha Jones, Jamie Barber

Committee Appointment
C ommissioner Stan Wise has been appointed to the NARUC Subcommittee on Clean Coal and Carbon Sequestration.

Governor Signs Transportation Legislation

(Continued from page 3)

islation passed the General As-

consolidation to the Governor sembly with overwhelming sup-

last year, he recognized this port from both the House and

move as a way to achieve the Senate. Senator Don Balfour

those goals," added Wise. (R-Snellville) carried the bill in

House Bill 865 transfers regu- the Senate.

latory authority over house- To link to the legislation, go to

hold goods moving firms, lim- http://www.legis.ga.gov/

ousines for hire companies, Legislation/en-US/default.aspx.

non-consensual towing compa- For more information on the

nies and charter passenger Georgia Public Service Commis-

bus companies to Public Safety sion web site,

effective July 1, 2012. The leg- www.psc.state.ga.us.

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

May 2012 1-Administrative Session 9-Georgia Power hearing 10-Committees 15-Administrative Session 31-Committees
June 2012 7-Administrative Session 13-Georgia Power hearing 14-Committees 19-Administrative Session 21-Special Administrative Ses-

Commission Calendar

sion 28-Committees
July 2012 3-Administrative Session 4-Holiday 12-Committees 17-Administrative Session

NARUC
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

August 2012 2-Committees 7-Administrative Session

Winter Meeting 2013 February 3-6, 2013 Washington, D.C.

GPSC ONLINE:.psc.state.ga.us

T he 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