GPSC news, Vol. 12, no. 3 (Summer 2012)

Georgia Public Service Commission

GPSC News Summer 2012

Summer

2012

Volume 11 Issue 3 *Rate reduction of $8 per

Commission Approves Cut in

month *Took effect June 1

Georgia Power Rates

*Total reduction of $567

million in fuel costs over two

years

T here is good news for Georgia Power

In this issue

consumers this summer. They received a reduc-

State Update

2 tion beginning June 1,

2012 in the charges they

Commission Approves Grant 3 to Firefighters

pay for the cost of fuel used to generate their electricity one month

Commissioner Wise Tours 4 Nuclear Construction Facility

Alternative Fueled Vehicles 5 Roadshow Rolls Through Georgia
5

NARUC Summer 2012

6

Employee News

7

earlier than scheduled. "With so much bad news sion's foresight and the

The Commission on May surfacing these days, it willingness of Georgia

15 unanimously allowed is nice to be able to say Power to go ahead and

Georgia Power to imple- your summer electric

implement this reduction,

ment the reduction in rates won't be quite as consumers will reap the

the Fuel Cost Recovery high," said Commission benefits," said Commis-

rate in Docket 35277. Chairman Tim Echols. sioner Chuck Eaton.

The average Georgia "Having a diverse ener- Commissioner Stan

Power residential cus- gy mix that includes

Wise said, "The fiscally

tomer who uses 1,000 natural gas-fired elec- conservative attitude of

kilowatt hours (kWh) of tricity has made this

the Commission and the

electricity will see rates possible."

willingness of the

drop approximately $8 "Thanks to this Commis-

(Continued on page 4)

per month.

Transportation Unit Moves to

Commission Calendar

8

Department of Public Safety

Next Issue November 2012

Effective July 1, 2012, all Transportation functions under the regulatory authority of the Georgia Public Service Commission moved to the Department of Public Safety (DPS) according to the provisions of House Bill 865. Movers carted the final pieces of of-

Transportation Unit Moves to DPS

fice equipment from the Commission to the DPS offices on Chester Avenue in Atlanta. The Georgia General Assembly passed H.B. 865 this year and Governor Nathan Deal signed it
(Continued on page 2)

PAGE 2

GPSC NEWS

VOLUME 10 ISSUE 2

State Fiscal Year Shows Positive Growth

G overnor Nathan Deal reported at end of 2012 fiscal year that state revenues rose 4.8 percent. The state's net tax collections for the month of June totaled $1.54 billion, an increase of $39 million, or 2.6 percent, compared to June 2011. For fiscal year 2012, which ended June 30, net revenue collections totaled $16.1 billion, which is an increase of $742 million, or 4.8 percent, compared to the previous fiscal year. Despite softer than expected revenue collections at the end of the fiscal year, positive yearover-year growth continued for the eighth consecutive quarter;

net revenues topped out at $4.3 billion for the fourth quarter compared to $4.1 billion last year. The following changes within the various tax categories led to the overall net revenue increase in June: Individual Income Tax: Individual Income Tax collections for June 2012 totaled $780.75 million, down from $782.5 million in June 2011-- a decrease of ($1.75 million) or 0.2 percent. The following notable components within Individual Income
If you have a story for the next GPSC News, please send to Bill Edge, bille@psc.state.ga.us. Next issue deadline is October 15, 2012.

Tax account for the decrease:

Individual Tax Return pay-

ments were up $14 million, or

77.5 percent



Individual Income Tax

refunds issued (net of voided

checks) were down ($9.5

million), or -16.4 percent

All other Individual cat-

egories including Withholding

payments were down a com-

bined ($25.3 million)

Sales and Use Tax: Net Sales

and Use Tax collections for June

2012 totaled $429 million, down

from $439 million in June

2011-- a decrease of nearly

($10 million), or -2.2 percent.

The monthly Sales Tax Distribu-

tion to local governments to-

Transportation Moves to DPS

(Continued from page 1)

320 Chester Avenue, SE

into law on May 1, 2012. DPS Atlanta, GA 30316

assumed regulatory authority Commission personnel who

for Household Goods Movers, currently handle these Transpor-

Passenger Motor Carriers, Lim- tation functions will also transfer

ousines and Non-consensual to DPS on July 1, 2012.

Towing.

For Household Goods Movers:

The Transportation Unit under Robert West, 404-463-4355

DPS will be located at:

For Limou- sines and Passen-

Motor Carrier Compliance

ger Motor Carriers: Carolyn Harri-

Division

son, 404-463-7741

Regulations Compliance Section For Non - Con s en su al Towi n g:

Brenda Hogans 404-657-1819 All web enabled functions have been transferred from the Commission web site to DPS at www.dps.georgia.gov. The Transportation link on the Commission web site will remain active for at least 90 days. However, the information there will not be updated. For new information and updates, consumers

and users should go to the DPS web site noted above. "This move of the PSC Transportation regulation to the Department of Public Safety makes perfect sense," said Tim Echols, Commission Chairman. "Without guns, badges and flashing lights, we were just not in a position to enforce state law."

The final load heads to new Transportation Offices at Public
Safety

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

Commission Approves Grant to Train First Responders

T he Commission June 7 unanimously approved an innova-

tive program to train Georgia fire-

fighters on how to respond and

prevent incidents involving natu-

ral gas and liquid pipelines in

Georgia. The program is funded

through a $100,000 payment by

Atlanta Gas Light Company as the

result of the settlement of an inci-

dent involving alleged violations

of federal pipeline safety regula-

tions in Docket 35665. The inci-

dent occurred on June 7, 2011 in directed the $100,000 grant to the

Cherokee County.

Georgia Fire Chiefs Association to

Upon adoption of a motion by implement and manage the pro-

Commissioner Lauren "Bubba" gram. The Association will conduct

McDonald, Jr., the Commission the instruction at the Georgia Pub-

lic Safety Training Center in For-

syth, Georgia. "The people of Georgia will benefit from this program since there is currently no program in place to give first responders, especially firefighters, training to deal with and prevent incidents involving damage to pipelines that traverse our state," said McDonald, "Especially since 70 per cent of Georgia firefighters are volunteers." McDonald's motion included a requirement for the Association to file semi-annual reports on the program for Commission review.

"This action by the Commission not only will help curb the num-

Commission Approves Consent Agreement

ber of strikes on our vulnerable

to End Slamming Investigation

gas pipelines, but it helps pro-

vide preventive training to small and large fire departments across the state," said Commission Chairman Tim Echols. The Commission enforces pipeline safety laws and regulations in Georgia both under state law and federal authority.

T he Commission July 17 unanimously approved an agreement between natural gas marketer MXenergy, Incorporated (MX) and the Commission Staff (Staff) to resolve complaints that the marketer changed customer's natural gas from their current provider to

practice known as "slamming." Under the agreement, MXenergy's payments could total over $200,000. Under the agreement, MX will pay $735 to each of the 138 customers involved, or a total of $101,430. A majority of the Commission also voted to require MX to pay

MX without their consent a $50,000; divided equally be-

tween the Salvation Army and

the Heat Energy Assistance Team (H.E.A.T.). These funds will provide assistance to low income customers in the Atlanta Gas Light Company distribution area. "I think this decision sends a very strong message that this Commission will not tolerate unauthorized switching of marketers," said Commission ViceChairman Chuck Eaton. This is the background of this

investigation as outlined in the agreement: Staff's investigation found that MX conducted a door-to-door marketing campaign in late 2011 and that MX failed to receive proper authorization to switch customers from their preferred natural gas marketer to MX, a practice known as "slamming." The Staff also found that MX failed to file with the Commission

the required slamming reports for the period between January 2012 and June 2012. However, MX does not admit to any violation of law, regulation or any other matter of fact or law and has fully cooperated with this investigation. Under the stipulation, MX also agreed to a number of other conditions:
(Continued on page 6)

PAGE 4

GPSC NEWS

VOLUME 10 ISSUE 1

Commissioner Stan Wise Tours Shaw Modular Solutions
Louisiana-based fabricator is key Vogtle supplier

C ommissioner Stan Wise received a first-hand look at the work being performed at Shaw Modular Solutions (SMS) in Lake Charles, Louisiana, in support of the construction of Georgia Power Nuclear Plant Vogtle Units 3 and 4. Commissioner Wise took a tour of the facility as part of a fact-finding mission to understand the scope of work, documentation trail and quality control procedures performed at SMS. The SMS facility fabricates and assembles structural, piping and equipment modules for new nuclear power plants, including the

Commissioner Wise Inspects Construction of Nuclear Modules at Shaw in Lake Charles, Louisiana

two new AP1000 units under construction at Plant Vogtle near Waynesboro, Ga. "What happens here at SMS is important because it has a direct impact on the Vogtle 3 and 4 project, as well as Georgia Power customers," Commissioner Wise said. "Seeing the SMS facility and understanding the

new nuclear manufacturing pro- On Feb. 9, 2012, The U.S. Nucle- and floors. SMS began shipping

cess helps me make better in- ar Regulatory Commission ap- sub-modules to both the Vogtle

formed decisions on Vogtle 3 proved a combined construction and V.C. Summer in South Car-

and 4 that impact Georgia Pow- and operating license for Georgia olina nuclear project sites in

er customers."

Power's Vogtle Units 3 and 4. July of 2011 and will continue

The Commission approved the The units are scheduled to be shipping on a regular basis.

need and cost effectiveness of placed in service in 2016 and These modules currently are

Vogtle 3 and 4, granting ap- 2017.

being assembled on site at

proval of the Vogtle expansion Shaw Modular Solutions (SMS) in Plant Vogtle. Shaw has a long

in March 2009. Georgia Power's Lake Charles, La., currently is history of superior performance

certified cost of the two units, producing 88 structural sub mod- in the nuclear fabrication in-

based on its current ownership ules, including 12 CA01 wall dustry. SMS management and

interest of 45.7 percent, is $6.1 modules and 76 CA02 sub mod- employees show commitment

billion.

ules, which consist of both walls

(Continued on page 5)

Commission Cuts Georgia a decade ago, fuel prices for bills, the Commission required

Power Fuel Rate

coal, natural gas, fuel oil and the utility to carry a fuel cost

other sources increased sharply balance. Although it has fluctu-

(Continued from page 1)

due to limited energy supplies ated, the under-recovered bal-

Company to work with the Com- in the United States and in- ance at one time reached close

mission will now pay a great

creased demand worldwide, to $1 billion dollars. The balance

benefit for ratepayers."

primarily from the growing was paid off on March 31, 2012.

Under Georgia law, Georgia economies of China and India. Commissioners Lauren

Power is entitled to recover fuel To reduce the impact on cus- "Bubba" McDonald, Jr. and

costs associated with generating tomers that an immediate dol- Doug Everett echoed the other

electricity and such costs are lar-for-dollar

pass-through Commissioners' comments. "I

passed-through to ratepayers would have had on monthly

(Continued on page 6)

without a profit. Beginning over

VOLUME 10 ISSUE 1

GPSC NEWS

PAGE 5

Echols Hosts Alternative Fueled Vehicles Roadshow

C ommission Chairman Tim Echols

hosted a ten city Alterna-

tive Fueled Vehicles Road-

show across Georgia dur-

ing June. The AFV Road-

show, as it was called, vis-

ited Buckhead in Atlanta,

Winder, Statesboro, Saint

Simon's Island, Braselton,

Thomasville, Dublin, Nor-

cross, Macon and Savannah.

Georgia Southern President Brooks The AFV Roadshow under the tent near Keel greets Commissioner Echols on Thomasville at the state line

The goal of the Roadshow

the school's Statesboro campus

was to showcase alternative

fueled vehicles and provide natives to traditional gasoline and tive fuel research, development

educational opportunities for how they are helpful.

and fueling infrastructure to Geor-

consumers and business Commissioner Echols said, "I gia and this event is designed to

leaders to understand alter- hope we can attract more alterna- highlight the opportunities."

Alternative Fueled Vehicles line up outside Suniva Solar in Norcross

"I think electric vehicles

can be a great addition to

the alternative fuel mix

since they can be charged

at night when the demand

on the grid is the lowest

and we have excess elec-

tricity," said Commission

Vice Chairman Chuck

Eaton. "This is one of the

reasons the Public Service

Commission developed an

overall

time

of

use

rate."

Commissioner Eaton addresses the AFV Roadshow in Buckhead at the Terry

Eaton added.

School of Business

Wise Tours Nuclear Construction Plant State Revenue Grows

(Continued from page 4)

Commissioner Wise is a past (Continued from page 2)

to enhancing and maintaining a President of the National Associa- taled $401.5 million, which was

sustainable nuclear safety cul- tion of Regulatory Utility Com- an increase of $35 million, or 9.6

ture and regulatory compliance missioners (NARUC) and current- percent, compared to last year.

program that demonstrates an ly is a member of the NARUC Corporate Income Tax: Corpo-

understanding of regulatory Board of Directors.

rate Income Tax collections for

compliance and meets or ex- He is serving in his third term on June 2012 rose by $43 million, or

ceeds appropriate regulations. the Commission and previously 38.7 percent, up from $111 mil-

served as Commission Chairman lion in June 2011 to $154 million

in 1997, 1999, 2006 and 2011. in FY2012.

PAGE 6

GPSC NEWS

VOLUME 10 ISSUE 1

NARUC 2012 Summer Meeting

T he National Association of Regulatory

Utility Commissioners met

in Portland, Oregon for its

2012 Summer Committee

meetings. More than a

thousand Commissioners,

staff and industry repre-

sentatives attended.

Committees discussed

smart meters, pipeline

safety, natural gas prices, renewal energy and bringing natural gas to underserved communities. Commissioner Lau-

Commissioner Lauren "Bubba" McDonald, Jr. takes part in the Nuclear Waste Disposal Subcommittee discussion
at NARUC

ren "Bubba" McDonald, Jr. Affairs Committee held a panel

made a presentation during a discussion on implementing the

panel discussion on Nuclear

new reforms in the Lifeline/

Waste Disposal. The Consumer Linkup Program. The NARUC An-

Commissioner Doug Everett chats with Louisiana Commissioner Clyde Holloway (center) and Mississippi Commissioner Brandon Presley (right) during a break
nual Meeting will be held in Baltimore, Maryland on November 1114, 2012.

MXenergy Fees

fees, disconnection fees, early 5. MX will provide to the Com-

termination and/or deposits as- mission within 60 days of the or-

(Continued from page 3)

sessed by their preferred cus- der a list of the consumers af-

1. Within 30 days of the filing tomers in order to resume their fected and the amounts of re-

of the Order in this docket, MX natural gas service. MX will make funds and credits to each ac-

will pay $50,000 in a manner all payments within 60 days of count.

the Commission will determine. the filing of the order accepting MX will file with the Commission

2. Affected customers will re-
ceive a check for $735 within

the stipulation.
4. MX will not

charge

at

any

for a one year period from the date of the Order in this docket

30 days of the filing of the or- time an early termination fee to for review and comments any

der accepting the stipulation. any consumers that were campaign information for a pro-

3. MX will pay to each of the
affected consumers' any and all switching fees, reconnection

slammed on or before the date of the Order accepting this stipulation.

posed door-to-door campaign. This filing will be done at least 30
(Continued on page 7)

Commission Lowers Georgia Power Fuel Rate

(Continued from page 4)

Company filed a request to re- The reduced energy costs, an-

am excited that we have paid duce fuel rates by $567 million ticipated to be in effect for a

off this balance and adopted a annually or a monthly reduction two-year period based on cur-

sound policy going forward,"

of approximately six percent for rent fuel price projections, are

said Commissioner McDon- the typical residential consumer mainly the result of conserva-

ald. Commissioner Everett averaging 1,000 kilowatt-hours tive fiscal planning by the Com-

added, "It is a great day for

(kWh).

mission and lower natural gas

Georgia Power customers who

prices.

will see their average power bill

drop by nearly $100 a year."

Georgia Power filed on March

30, 2012 to implement the new

rate effective July 1, 2012. The

VOLUME 10 ISSUE 1

GPSC NEWS
Employee News

PAGE 7

Congratulations
T o Commissioner Lauren "Bubba" McDonald, Jr. and Shelley Hailey on their marriage May 26 at the Orchard in North Georgia.
The McDonalds ride off in style

Sympathy
T o Commissioner Chuck mother-in-law Bonnie Albrecht Eaton on the passing July 19 on July 12. Services were held of his mother, Janet Kay Eaton. July 15. The family held a private service.

James Gibson, Consumer Affairs

Manager, on the passing of his

sister Barbara Ann Murdock. Ms.

Murdock passed away on May 7.

The family held a memorial ser- To Mike Shemasky on the

vice May 10 in Douglasville, Geor- passing of his aunt, Mary Nell

gia.

Pike, on July 15. The funeral

was held July 18 in Smyrna.

To William Morgan, Consumer

Affairs, on the passing of his

Commissioner McDonald Hosts Forum with Federal Environmental Officials

Commissioner Lauren "Bubba" McDonald, Jr. hosted a meeting July 12 at the Commission with regional officials from the U.S. Environmental Protection Agency and the Department of Defense to brief Commissioners and Staff on the latest federal government renewable energy initiatives in the southeast. EPA Region 4 Deputy Administrator Stan Meiburg, EPA Manager Ken Mitchell and Susan Mitchell

EPA Region 4 Administrator Stan Meiburg addresses the group

with the U.S. Army Energy Initiatives Task Force all made presentations to over 30 people from the Commission and other interested groups. McDonald invited the group to return in the future.

Commissioner Everett Tours Welding School for Plant Vogtle Construction Workers

C ommissioner Doug Everett toured the Mechanical Trades Institute Welding Technology Center in Lithia Springs on May 17 to get a firsthand look at the training for welders and pipefitters who work on the Plant Vogtle Nuclear Construction Project. The institute is operated by the United Association, a joint venture of several trade unions to provide training in various pipefitting trades.

Commissioner Everett gets a look at training equipment

MXenergy Fees
(Continued from page 6)
days prior to the beginning of such a marketing campaign. The Commission's approval of the agreement terminates Staff's investigation and limits the customers subject to the terms of the agreement to the 138 the Staff found had been switched without their authorization. MXenergy now is doing business in Georgia as Constellation Energy Gas Choice, Inc.

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

August 2012 2-Committees 7-Administrative Session 9-Public Service rate hearing 13-Telecom rate hearings 16-Committees 21-Administrative Session 30-Committees September 2012 3-Holiday 4-Administrative Session 13-Committees 18-Administrative Session

Commission Calendar

27-Committees October 2012 2-Administrative Session 8-Holiday 11-Committees 16-Administrative Session November 2012 1-Committees 6-Administrative Session 12-Holiday 15-Committees 20-Administrative Session

NARUC
Annual Convention 2012 November 11-14, 2012 Baltimore, Maryland
Winter Meeting 2013 February 3-6, 2013 Washington, D.C.
Summer Meeting 2013 July 13-17, 2013 Denver, Colorado

SEARUC
Annual Meeting 2013 June 9-12, 2013 Asheville, North Carolina
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