GPSC news, Vol. 13, no. 3 (Summer 2013)

Georgia Public Service Commission

GPSC News Summer

Summer

2013

2013

Volume 12 Issue 3
*Commission Approves Georgia Power IRP *Commission Reviewing Georgia Power Rate Filing *Commission hears Vogtle Construction Project

In this issue

Commissioner News

2

Dig Safely Month

3

Commissioner Echols

4

Reports on German Energy

Visit

Commission Approves

5

AGLC's USF Facilities

Expansion Plan for 2012

and 2013

Commission Holds Hearings 6 on Plant Vogtle Construction Project

Employee News

7

Commission Issues Decision in Georgia Power Integrated Resources Plan

T he Commission July 11 approved by a 4-1

vote a stipulated agree-

ment to resolve all issues

in the Georgia Power Com-

pany (Company) 2013 In-

tegrated Resource Plan

(IRP) in Docket 36498 and

Application for Certification

of Its Demand Side Man-

agement (DSM) Plan in

Docket 36499.

The Commission also ap-

proved by a vote of 3-2 a motion proposed by Commissioner Lauren "Bubba"

Commissioners discuss the Georgia Power IRP as the news media listen

McDonald, Jr., that Georgia Power include in this IRP an additional 525 Megawatts (MW) of new solar generation. The amended

motion requires that 260 MW be brought online by 2015 and 265 MW by 2016. The new solar generation will be

composed of 100 MW of distributed generation and 425 MW of utility scale solar and will re-
(Continued on page 3)

Commission Calendar

8

Next Issue Novem-
ber 2013

Commission to Review Georgia Power Rate Case Filing

The Commission is tional hearings on No- to issue a decision on the reviewing the Geor- vember 5, 2013 and on Company's rate request

gia Power Company

November 25, 2013. The five months from the effec-

(Company) request for Commission is scheduled tive date of the proposed

an increase in its base to issue a decision on

new rates.

rates filed with the Com- the request on Decem- In making its request, the

mission on June 28 in ber 17, 2013. Georgia Company is required to file

Docket Number 36989. law (O.C.G.A. 46-2-25) a traditional general rate

The Commission will

requires the Commission case. It is also given the

begin the first round of

option to propose an Alter-

hearings on the Compa-

native Rate Plan. Accord-

ny's request on October

ing to the Company's filing,

1, 2013 and hold addi-

(Continued on page 2)

PAGE 2

GPSC NEWS

VOLUME 10 ISSUE 2

Commissioner News

C ommissioners Lauren "Bubba" McDonald, Jr. and Doug Everett attended the National Association of Regulatory Utility Commissioners 2013 Summer Committee Meeting in Denver, Colorado July 2124. Commissioner McDonald is Vice-Chair of the Nuclear Waste Subcommittee of the Electric Committee which held a very informative session on the current situation with regards to federal plans to dispose of the nation's commercial nuclear waste.

Commissioner McDonald looks over the Nuclear Waste Subcom-
mittee discussion at NARUC
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, 2013.

McDonald Named to Executive Committee of the Nuclear Waste Strategy Coalition
C ommissioner Lauren "Bubba" McDonald, Jr. has been named to the Executive Committee of the Nuclear Waste Strategy Coalition. NWSC Executive Director Katrina McMurrian said, "I think you all know and appreciate Commissioner McDonald and his contribution on nuclear waste issues over a number of years. On behalf of the NWSC membership, we are thankful for his leadership and willingness to serve on the NWSC Executive Committee."

Commission Considers Georgia Power Rate Filing

(Continued from page 1)
its traditional rate case would be an annual increase of $280 million. If approved, this would be approximately a $4.55 monthly increase for the average residential customer using 1,000 kilowatt-hours per month. With a traditional rate case, the Company would have the right to file for additional rate increases at any time in

the future.

The Company has proposed that,

instead of a traditional rate case,

the Commission approve a three-

year Alternative Rate Plan with a

one-time annual increase in its

retail rates of $482 million. This

request, if approved, would be

approxi-

mately a $7.84

monthly increase for the average

residential customer using 1,000

kilowatt-hours per month.

The proposed rates would take effect on January 1, 2014. The Commission decided the last Georgia Power rate request on December 17, 2013 in Docket 31958. At its May 21, 2013 Administrative Session, the Commission set the filing and hearing schedule for this case filed in Docket Number 36989. The schedule is:

October 1-3, 2013

November 25-26, 2030

Hearings: Georgia Power

Hearings: Georgia Power pre- Commission on YouTube

presents direct testimony

sents rebuttal testimony

October 18, 2013

December 4, 2013 All

Staff and intervenors file

parties file proposed orders

S ee Georgia Public Service Commission videos on

testimony

December 12, 2013 En-

November 5-7, 2013 Hear-

ergy Committee, Advisory

YouTube, at www.youtube.com, on the Commission channel,

ings: Staff and intervenors

Staff presents recommenda- GaPSC.

present testimony November 15, 2013-

tion December 17, 2013 Com-

Follow the Commission on Twitter at #GPSC.

Georgia Power files re-

mission issues its decision at

buttal testimony

Administrative Session

VOLUME 10 ISSUE 1

GPSC NEWS

PAGE 3

Commission Issues Decision in Georgia Power IRP

(Continued from page 1)
quire competitive bidding. "I believe this is the right step to take if we are to encourage the development and use of solar energy," said Commissioner McDonald. "This motion is not a mandate, but an expansion of Georgia Power's current solar portfolio." The Commission modified the solar motion by adopting two proposals by Commissioner Stan Wise that require the Company to use an independent evaluator in the bid process and prohibit accepting any bids that exceed Georgia Power's levelized avoided cost for the

Former Commissioner Robert Baker speaks to the Commissioners during Energy Committee hear-
ing on the IRP
term of purchase power agreements. Commissioner Doug Everett repeatedly stated that he would not accept any plan that put upward

pressure on rates. With assurance from both Commission staff and Georgia Power that this plan will not increase electric rates because all bids must be below Georgia Power's avoided cost, he voted to adopt this stipulation. Commissioner Tim Echols who supported the solar motion said, "Commissioner McDonald's motion adding 525 megawatts of solar to our 20-year energy plan is a hedge against more coal regulation and natural gas price volatility. When the President finishes his war on coal, he'll come after fracking, and gas prices will surely

go up. We have to be ready." The Commission also adopted two motions by Commissioner Tim Echols. One allows Georgia Power to develop its proposed small wind demonstration pilot project that compares several different wind turbine technologies. The other requires Georgia Power to file within 30 days its project plan for a low-income demand-side management (DSM) program for the direct installation of eligible energy effi-

ciency measures for about 25,000 eligible homes. Other provisions of the stipulated agreement include:
Closing and decertifying 16
coal-fired electric generation units
Converting two coal-fired units
to burn natural gas
Bringing thirteen coal-fired
generation units into compliance with the Environmental Protection Agency (EPA) Mercury and Air Toxic Standards (MATS) Changing the close date of

Plant Branch Unit 1 from December 31, 2013 to coincide with the closing of Plant Branch Units 3 and 4, as approved in this agreement. "Georgia has to look to the future," said Commission Chairman Chuck Eaton, "We are making decisions that affect millions of Georgians, ensuring that we have reliable electric service and promoting economic growth and development."

Commission Approves Atlanta Gas Light Vintage Plastic Pipe Replacement Program

O n August 6, 2013, the Commission approved an agreement which allows Atlanta Gas Light Company to replace 756 miles of so-called Vintage Plastic Pipe over the next four years. Commissioner Stan Wise initiated the docket after

learning that certain pipes. No reportable incidents

plastic pipe installed involving persons or property

in the 1960s and early damage have been linked to

70s was prone to be- vintage plastic pipe, which is

coming brittle and

usually used in low to medium

subject to breakage pressure applications.

when disturbed, re- "This vote today again shows

Commissioner sulting in higher leak

Wise

rates than other

the leadership of this Com-
(Continued on page 4)

PAGE 4

GPSC NEWS

VOLUME 10 ISSUE 1

Commissioner Echols Reports on Visit to Study German Energy Policy

C ommissioner Tim Echols spent a week in Germany

itself." Echols said that the energy

June 22-29, 2013 as a guest of

policy in both Georgia and Ger-

the German government. Echols

many is shaped by their atti-

was joined by five other elected

tude towards nuclear power.

officials from around the coun-

"In Georgia, nuclear power is

try to observe first-hand the

on the rise as we build two

energy transition the Germans

state-of-the-art reactors, and

call "Energiewende."

we celebrate this advanced

"The German sweeping national

technology with pride," said

energy policy has flipped tradi-

Echols. "But in Germany, de-

tional energy regulation on its

spite having some of the best

head, and that brings with it

engineers in the world, the

many new challenges," said

people have turned against nu-

Echols. "The German govern-

clear power and fossil fuel, and

ment has caused a sorts by paying a tariff for 20 years who wants to put

gold rush of guaranteed for anyone up wind or

solar. The recovery for that distributed generation appears on everyone's bill as a surcharge, and it is more than the electricity

their options are now limited." Echols discovered that Germany, by its policies, has painted itself into a renewable corner.

He said that they are paying a

call an IRP, or Integrated Re-

price for their green power--

source Plan. The Public Service

charging its rate-payers almost

Commission staff and interven-

three times what we pay for

ers like Walmart and Georgia

electricity. "They really believe

Watch examine the plan, chal-

they are going to change the

lenge certain aspects of it, and

way the world generates elec-

even bring their own expert

tricity by using renewable energy as base-load power and conventional energy only when they absolutely have to have it," said Echols. "What stunned me was their willingness to put their big utilities at risk by taking them out of the decision

making model. It reminds me of the posture of the EPA towards coal-generating companies in our country," said Echols. "Under our system in Georgia, the utility is tasked with creating and executing the energy plan--what we

witnesses to comment under oath," said Echols. "Then the five elected commissioners get the last word--affirming or changing the plan according to what is best for the whole state of Georgia."

Plastic Pipe Replacement

(Continued from page 3)
mission in aggressively pushing for pipeline safety and is the reason Georgia is a nationally recognized leader in this effort. Today's decision means safer and more reliable pipes to deliver natural gas to customers on the AGLC distribution system," said Commissioner Wise.

"While other states are now wrestling with how to implement costly solutions to replace aging infrastructure, Georgia's vision and leadership means we are maintaining an up-to-date, safe and reliable natural gas system at a reasonable cost to ratepayers," Wise added.

Commissioner Lauren "Bubba" Mcdonald, Jr. added, "Georgia is far ahead of the curve in our pipeline safety program. The consumer will spend just pennies on this program but that cost does not compare to the worth of an individual's life that might be
(Continued on page 7)

VOLUME 10 ISSUE 1

GPSC NEWS

PAGE 5

Commission Approves AGLC's USF Facilities Expansion Plan for 2012 and 2013

T he Commission March 19, for AGLC's 2012 and 2013 fiscal 2013 unanimously ap- years for up to $28 million in

proved Atlanta Gas Light Com- line-extension projects.

pany's (AGLC) Universal Ser- After approving the two-year

vice Fund (USF) Facilities Ex- expansion plan, the PSC unani-

pansion Plan for 2012 and mously adopted $16,339,124 in

2013.

line-extension projects expected

On November 1, 2012, AGLC to benefit economic develop-

filed its 2012 - 2013 Facilities ment and enhance the agricul-

Expansion Plan. By law USF tural industry. Commissioner

funding for AGLC expansion Lauren "Bubba" McDonald,

projects is capped at five per- Jr. made a motion for four pro-

cent of the company's annual jects and Commissioner Tim

capital budget. The 2012 dis- Echols asked that a fifth pro-

bursements are capped at ject, one serving a small poultry

$16.6 million and 2013 dis- corridor with multiple poultry

bursements at $11.4 million.

By approving this two-year

plan, the Commission com-

bined the allowable amounts

farms, be added. At the request of Commissioner Doug Everett a sixth project had been approved in January 2013 to bring 75 jobs to South Georgia and open up areas for industrial expansion. The six projects are: 1.South Murray County Leg One for $5,157,129. 2.North Murray County Leg Two for $2,909,105. 3.Banks County Poultry Line Project for $7,644,452. 4.Schley County Poultry Line for $428,438. 5.Madison County Poultry Corridor for $200,000. 6.Dodge-Eastman Project for $1,019,525.

Of the $28 million maximum allowed, $17,358,649 in projects have been approved so far by the PSC for the 2012 2013 Plan. "Building more natural gas pipelines around the state to take advantage of cheap natural gas will be good for business," said Commissioner Tim Echols. "America has a competitive advantage because of these low gas prices, and we need to make the most of it while we can."

Dig Safely Month April 2013

T he Commission on April 11, 2013 participated in the 2012 Safe Digging Month in Georgia Proclamation with Governor Deal in a ceremony at the State Capitol. Taking part was Commissioner Doug Everett, construction accident survivor and two-time Olympian Cliff Meidl, staff from Georgia 811 and representatives from utility owner/operators, locate techni-

cians as well as professional excavators and contractors. "Georgia has been recognizing Safe Digging month for more than 20 years, encouraging homeowners and professionals to call before digging. Safe Digging Month was first celebrated nationwide in 2007 with the

rollout of 811 (the national call

hand the importance calling 811

before you dig number).

before beginning a digging pro-

Through its nationwide use, 8-

ject," Campbell shares. "While

1-1 is recognized as the way

using a jackhammer during an

that we are able to keep both

excavation project at the age of

homeowners and the profes-

20, Meidl hit three underground

sional excavator safe," ex-

power cables. As a result, Meidl

plains Georgia 811 President

severely injured both of his

and CEO Claudette Campbell.

knees. He miraculously recov-

"Meidl, who was part of this

ered from his injuries and, after

year's Proclamation of Safe

tireless training, went on to com-

Digging month, knows first- Governor Deal Proclaims Dig Safely pete in kayaking at the 1996

Month

(Continued on page 6)

PAGE 6

GPSC NEWS

VOLUME 10 ISSUE 1

Commission Holds Hearings on Plant Vogtle Construction Project

T he Commission held its first set of hear-

The schedule in this docket is as follows:

ings on July 18 on the

August 8, 2013-All other

Georgia Power Company

parties file direct testimony

Eighth Semi-Annual Nu-

August 13-14, 2103-

clear Construction Projec-

Hearing on Staff and inter-

tion Monitoring, Docket

venor testimony

29849.

August 30, 2013-Georgia

Several public witnesses

Power files rebuttal testi-

spoke before the two

mony or amended applica-

Georgia Power witnesses, Kyle Commissioners listen to testimony

tion

Leach and David McKinney, out-

during the hearing

September 12, 2013-

lined the Company's request to increase the certified cost of the Plant Vogtle Construction Project. However, the Company and staff have reached a proposed stipu-

lation that calls for the Company to withdraw this request. Additional hearings are scheduled for August 13-14, 2013 and September 12, 2013.



Hearing on Georgia Power rebuttal testimony/ amended application September 27, 2013-All parties may file briefs and/

or proposed orders October 15, 2013-
Commission issues decision at regular Administrative Session Under Georgia law, the Commission must issue a decision in this Docket within 180 days of the payment of the filing fee or the Company's filing takes effect as a matter of law. The statutory date for issuing a decision in this docket is October 28, 2013.

Dig Safely Month

Georgia Power witnesses testify on the Company's request

(Continued from page 5)
Olympics in Georgia. In 2000, Meidl not only returned to compete again in the Sydney Australia games but was also chosen by the US Olympic team to be the U.S. flag bearer during the opening ceremonies. He now serves as an advocate for safe digging practices and has delivered his story to professionals across the country. By sharing his tragedy and tri-

umph, Meidl hopes to inspire ing this a very important safety who have service in the area

every professional and home- message for Georgians."

of your project. "The smart

owner to always call 811 before Commissioner Everett said, "I and safe way to dig is to al-

they dig."

want to remind anyone who ex- ways contact Georgia 811 be-

"My personal story connects me cavates to call before you dig by fore every digging project,

deeply to the safe digging mes- placing a call to 8-1-1. It's free every time. Installing a mail

sage, so I'm extremely honored and it's the law. By calling before box, fence, pool or even if you

to partner with Georgia 811 to you dig, we can prevent the dis- have hired a professional to do

educate everyone about the im- ruptions and economic losses work for you, all digging pro-

portance of making a free call to that can occur when under- jects need to be done safe-

811 before they dig," said Meidl. ground utilities are damaged." ly. It not only saves lives, but

"Georgia 811 plays a critical role Contacting Georgia 811, by money and time. If you have

in the safe digging process. This phone or online, begins an im- dug in the past without calling,

process protects people who dig portant communication process don't make that mistake

and communities at large, mak- to member utility companies again," added Campbell.

VOLUME 10 ISSUE 1

GPSC NEWS
Employee News

PAGE 7

Congratulations

T o Bill Edge, Public Information Officer, on the graduation of his daughter Krystle Edge from Devry University with
a Bachelor of Science in Business Administration degree on June 30. She graduated cum laude.

To Sheree Kernizan, Electric Section Director, on the graduation of her son Marcus Kernizan, from Georgia State
University with a degree in Public Policy May 11. He also received a

special award for student leadership. To Cheryl Vinson on her promotion to Human Resources Manager. To Lisa Jensen on her promotion to Administrative Assistant to Commissioner Tim Echols.

Retirements

Sympathy

Welcome Back!

M argie Conley retired from the Commission after 30 years of service on April 30. Friends and co-workers gathered on April 29, 2012 to wish her farewell. Keith Blackshear retired November 30, 2012 after 28 years of service with the state. Julia Truss retired December 19, 2012 after 35 years of service with the state of Georgia. Veronica Thomas retired on December 31, 2013 after 34 years of service with the state.

T o Bolin Killings on the passing of his mother, Ruby B. Killings, on July 2. The family held a memorial service on July 20 in Cleveland, Ohio. To Barbara Wolfe on the passing of her sister Patt Brown on July 30, 2013. A memorial service was held on August 3, 2013.

T o Bill Edge, Public Information Officer, who was on a military leave of absence while serving on active duty in Afghanistan. He returned to the Commission on June 17, 2013.

Pipeline Safety

SEARUC 2013

(Continued from page 4)
injured in a pipeline incident. I complement the Company, our staff and this Commission for their aggressiveness in taking the bull by the horns and making this happen." The first plan will be filed within 45 days of the effective date of the Commission's order in this docket.

C ommissioners and staff attended the 2013 Southeastern Conference of Regulatory Utility Commissioners annual meeting in Asheville, North Carolina on June 3-6, 2013.
The meeting included a session on balancing regulation moderated by Commissioner Stan Wise. Commissioner Lauren "Bubba" McDonald, Jr. took part in the final session round robin discussion.

Commissioner Lauren "Bubba" McDonald, Jr. takes part in a panel discussion at the SEARUC 2013 meeting in Asheville, N.C.

PAGE 8

GPSC NEWS

Georgia State Holidays for 2013

New Year's Day

January 1

Martin Luther King, Jr. Day

January 21

Confederate Memorial Day

April 22

Memorial Day

May 27

Independence Day

July 4

Labor Day

September 2

Columbus Day

October 14

Veterans Day

November 11

Thanksgiving

November 28

Robert E. Lee's Birthday

November 29

Washington's Birthday

December 24

Christmas

December 25

Georgia State Holidays for 2014

New Year's Day

January 1

Martin Luther King, Jr. Day

January 20

Confederate Memorial Day

April 28

Memorial Day

May 26

Independence Day

July 4

VOLUME 10 ISSUE 1
Commission Calendar
August 2013 1-Committees 6-Administrative Session 13-14-Georgia Power hearings 15-Committees 20-Administrative Session 29-Committees September 2013 2-Holiday 3-Administrative Session 12-Committees 12-Georiga Power hearing 17-Administrative Session 26-Committees

October 2013 1-Administrative Session 1-3-Georgia Power hearings 10-Committees 14-Holiday 15-Administrative Session 31-Committees November 2013 5-Administrative Session 11-Holiday 14-Committees 19-Administrative Session 25-26-Georgia Power hearings

Commission Calendar

NARUC
2013 Annual Convention November 17-20, 2013 Orlando, Florida

SEARUC
2014 Annual Meeting June 2014 Tunica, Mississippi

2014 Winter Meeting February 9-12, 2014 Washington, D.C.

2014 Summer Meeting July 13-16, 2014 Dallas, Texas

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 Chuck Eaton, Chairman H. Doug Everett, Vice-Chairman
Tim G. Echols Lauren "Bubba" McDonald, Jr.
Stan Wise
EXECUTIVE DIRECTOR Deborah Flannagan
EXECUTIVE SECRETARY Reece McAlister