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