Georgia Public Service Commission GPSC News Spring Spring 2015 2015 Volume 13 Issue 3 2015 Legislature Improves Commission *Legislature adjourned April 2, 2015 *Commission receives addi- Budget tional funds for new utility position to monitor Plant Vogtle construction *Commission receives funds to upgrade IT infrastructure T he 2015 session of the Georgia General Assembly adjourned sine In this issue die on April 2, 2015 after 40 days of work under the Gold Dome. It was a suc- Legislature Wrap-Up 2 cessful session for the Commission, as lawmakers Dig Safely Month 3 added nearly $300,000 to the Commission's budget in both the Amended Fiscal Commission Approves Selec- 4 tion Process for Distributed Generation Program Year 2015 and the Fiscal Commission Chairman Eaton presents the Commission Year 2016 Budgets. The legislature added mon- Budget request to members of the Senate Budget Subcommittee Commission Verifies Vogtle 5 Expenditures NARUC Meeting 6 Solar Choices 6 ey to fund another position for monitoring the Plant Vogtle construction project and money to fund new information technology infrastructure purchases in both the Amended FY 2015 Budget, House Bill 75 and in the FY 2016 Budget, House Bill 76. The FY Subcommittee Chair 2016 Budget begins July Penny Houston, Senate 1, 2015. Appropriations Chairman We want to especially Jack Hill and Senate thank House Appropria- Economic Development tions Chairman Terry Subcommittee Chairman England , House Eco- nomic Development (Continued on page 2) Employee News 7 Commission Calendar 8 Next Issue July 2015 Commission Sets Next Schedule for Vogtle Construction Monitoring Hearings The Commission on April 7 approved the schedule of hearings for the 12th Vogtle Construction Monitoring Report, which Georgia Power filed on February 27, 2015 in Docket 29849. The first hearing will be Tuesday June 2, 2015 following the regular Administrative Session at 10 Plant Vogtle under construction in March 2015 a.m. Georgia Power will present their direct testimony at this hearing. The approved hearing and filing schedule is as follows: May 1, 2015- Georgia Power files direct testimony (Continued on page 2) PAGE 2 GPSC NEWS VOLUME 13 ISSUE 3 2015 Legislative Wrap-up (Continued from page 1) Jeff Mullis for their support of our budget requests. The Governor's budget recom- mendation did not include any increase in funding despite the critical need for replacing and upgrading much of the Commis- sion's IT infrastructure. The Governor also did not recom- Solar Free Market Financing Act, mend additional funding to fill would allow homeowners and vacant positions in the Commis- commercial businesses to finance sion's Utility Unit. solar panels without violating the However, legislators responded Territorial Act. The bill is de- to the Commission's requests scribed in more detail on page 6. and added the funding to the Other legislation we followed in- budgets. cluded: One other major piece of legisla- H.B. 170:This is the Trans- tion to come out of the 2015 portation Bill. It eliminates General Assembly is House Bill the state income tax credit 57. This measure, known as the for electric vehicles and levies an excise tax to fund transportation improvements. Passed and awaiting the Governor's signature. H.B. 200: Eliminate electric vehicle tax credit. Held but part of H.B. 170 H.B. 201: Allows distribution of wireless equipment for hearing impaired. Held in Senate Rules. H.B. 241:Would place city owned gas systems under deregulation. Held in committee. H.B. 556: would limit PSC ability to change UAF contributions. Held in committee H.R. 613: Calls on EPA to withdraw Clean Power Plan. Passed. Vogtle Schedule (Continued from page 1) June 2, 2015-Commission hearing on Georgia Power testimony June 10, 2015-Commission Staff and Interveners may file direct testimony June 23, 2015- Commission hearing on Staff and Interveners' testimony July 10, 2015-Georgia Power may file rebuttal testimony July 23, 2015-Commission hearing on Georgia Power rebuttal testimony August 7, 2015-Briefs due from all parties August 18, 2015-Commission issues decision at regular Administrative Session In the order, the Company and the Commission agree that any request to amend the certified cost of $6.113 billion will be postponed until the completion of Vogtle Unit Three scheduled for late 2019. The Commission Order also recognizes that "the certified cost approved by the Commission does not constitute a cost recovery cap. The Commission also recognizes that neither the certificate itself nor the Stipulation in VCM 8 should be construed as creating a cost recovery cap." The Commission set the certified cost in its order approving the construction of Vogtle Units Three and Four on March 17, 2009. Commissioner Tim Echols said, "With the EPA bearing down on our coal plants, finishing these reactors is paramount if we are to comply with their new rule," said Echols. "This vote preserves our agreement to deal with any added costs after unit three is online and generating electricity." "This is a good project and remains a good project for Georgia," added Commissioner Doug Everett. "I am pleased that we will have the first two new nuclear facilities in the country that I believe will serve the ratepayers into the next century," said Commissioner Stan Wise. In other action, the Commission approved a $54 million credit for the approximately 1.4 million residential natural gas customers on the Atlanta Gas Light (AGL) distribution system. Residential customers will receive the monthly credit on their AGL base charge beginning with their June 2015 natural gas bills for the next ten years, or about $5.4 million a year. The credit is the result of savings achieved as a result of the AGL Resources merger in 2011 with Nicor Corporation; an Illinois based Natural Gas Distribution Company. The Commission approved a motion by Commissioner Lauren (Continued on page 5) VOLUME 13 ISSUE 3 GPSC NEWS PAGE 3 April 2015 Is Dig Safely Month T he Commission reminds all Georgians that April is derground utilities damage prevention programs as a result of state legislation approved in National Safe Digging Month. 2000. The Commission also en- The law requires anyone who forces federal pipeline safety plans to excavate where under- ground utilities are located to call Eaton said, "We are pleased to 8-1-1 before they dig. The pro- work together with Georgia 811, cess is simple and can prevent our federal partners, and the Na- major damage that can endan- tional Association of Regulatory ger and inconvenience our com- Utility Commissioners (NARUC) to munities and cause economic prevent damages from occurring disruption. Damage from exca- to the state's underground utility vation activities to gas and water facilities. Our common goals are to pipelines, along with sewer sys- prevent the disruption of utility tems and buried distribution services and personal injuries that power lines, remains a leading result from accidents which dam- cause of utility incidents result- age underground facilities." ing in death or injury. The Commission is charged with Commission Chairman Chuck the enforcement of the state's un- standards under an agreement with the Pipeline and Hazardous Materials Safety Administration. The Commission's program is rated one of the top five in the nation and serves as a model for other states to follow in reducing damages to underground utilities. Using these programs, the Commission provides training and education for excavators and utilities in order to avoid accidents that can cause expensive and often dangerous damage to buried utilities. The and it's the es when underground utilities Commission also works closely law. A simple are damaged." with Georgia 811, Inc. which ac- phone call Commissioner Doug Everett cepts calls from the national fed- can prevent added, "For those states that do erally mandated "Call before You the disrup- not currently have a damage Dig" Number 8-1-1. This "one tions and prevention program, I challenge call" system is free to contrac- economic them to follow Georgia's lead tors and excavators as well as losses that and begin such a program be- homeowners and helps all exca- can occur cause it is the right thing to do." vators comply with the law. when underground utilities are "Excavators are only as good as Commission Vice-chair Lau- damaged." the marks on the ground," said ren "Bubba" McDonald said, "I "Calling 8-1-1 is the best way to Commissioner Tim Echols. want to remind anyone who ex- prevent damage to our under- "That is why calling before you cavates to call before you dig by ground utilities," said Commis- dig is so important." placing a call to 8-1-1. It's free sioner Stan Wise, "Everyone los- "Every day underground utility lines are damaged in Georgia. Not only can these damages cause utility outages, they can also cause serious injuries or each person who death. It is vital that Georgians contacts us about a digging project contact Georgia 811 at least we notify on average 8 member two days before digging to have utility companies. These members their underground lines dispatch locate techs to mark un- marked," Georgia 811 President derground lines. & CEO Claudette Campbell ex- The public, excavators and others plains. "Contacting Georgia 811 can find resources available at is free and so is having your www.call811.com and at underground lines marked. For If you have a story for the next GPSC News, please send to Bill Edge, bille@psc.state.ga.us. Next issue deadline is June 15, 2015. PAGE 4 GPSC NEWS VOLUME 13 ISSUE 3 Commission Approves Selection Process for Georgia Power Company's 2015 Distributed Generation Program T he Commission March 17 took another step with Georgia Power's distribution system. "This is just another step as we forward in bringing renewable move toward a very solid plan for energy resources to Georgia solar distribution in Georgia. All Power customers by its unani- parties are taken care of, from mous approval of 100 Mega- customer sited to large utility watts (MW) of Distributed Generation (DG) as part of Georgia Power's 2015 Advanced Solar Initiative (ASI) Program. Distributed Generation refers to power generated on site, usually at a site where it will be used and interconnects to the utilities' distribution system therefore reducing the need to transport the power elsewhere. This DG program is part of a total of 525 MW of solar capacity that was approved in Georgia Power's 2013 Integrated Resource Plan. The Commission approved a motion by Commissioner Lauren "Bubba" McDonald that sets parameters on how projects will be selected, the pricing to be paid, and sets guidelines on how the DG projects will interconnect scale," said McDonald. "Georgia continues to provide leadership to the nation on how to do solar in a big way without a renewable portfolio standard," said Commissioner Tim Echols. "This last batch of 100MW will take us up to our Integrated Resource Planning period in 2016 where we will have the chance to evaluate our ASI methodology to see how we move forward from The proposals in Group A will be here." competitively bid with the Com- McDonald's motion also divides mission Staff and Georgia Power the DG projects into three to finalize the bid evaluation pro- groups as follows: cess within 30 days. Group B Group A- 40 MW will be al- will not be competitively bid but located for projects greater than customer sited projects will have 1 MW but less than 3 MW and 100 kW but less than or equal to first priority. A customer sited 10 MW will be allocated for pro- 500 kW for non-customer sited project must have a peak gener- jects sized 500 kilowatts (kW) to and 100kW to 1MW for customer ating capacity that is less than or 1MW sited projects equal to 125% of the actual an- Group B- 40 MW will be al- located for projects greater than Group C- 10 MW will be allocated for projects less than 100 kW. nual peak demand of the customer's premise. Any remaining MW will be allocated to non- customer sited projects using a lottery process. If the 10 MW available for Group C are not used, after 90 days, the remaining MW will be allocated to Group B, non-customer sited projects. In addition, the application fee per project is reduced to $3 per kW although the application fee of $25 for residential customers will remain in place. To cover interconnection costs, projects selected through the bidding process will be required to pay $75 per kW due upon execution of the power purchase agree- ment. Of this amount, $25 per kW is designated as earnest money and shall be credited toward the interconnection costs. For projects not competitively bid, earnest money in the amount of $25 per kW will be due within 21 days of a binding interconnection agreement. This earnest money will be credited toward the projects' interconnection costs. VOLUME 13 ISSUE 3 GPSC NEWS PAGE 5 Commission Verifies and Approves Expenditures from the Eleventh Vogtle Construction Monitoring Report T he Commission February 19 unanimously 2019, and Unit Four will begin operation during the fourth quarter of 2020. approved Georgia Power The Commission on March 17, Company's request to verify 2009, certified Georgia Power's and approve the expendi- share of the cost for the Plant tures in the Eleventh Vogtle Vogtle Nuclear Construction Pro- Construction Monitoring Re- ject as $6.114 billion. port for the period between The Commissioners continue to January 1, 2014, and June acknowledge the benefits of this 30, 2014, in Docket Number project. Commissioner Tim 29849. Echols noted, "Not only will this The total amount approved today for the Vogtle expansion is $198 million, bringing the total construction cost verified to date to $2.797 billion. The decision follows hearings on November 5, 2014, for the Company's testimony and on December 16, 2014, for the Public Advocacy Staff's testimony. According to the Company's latest filings with the Security and Exchange Commission, Unit Three will facility produce carbon-free energy for decades, but should the price of natural gas go up substantially, we will have a hedge against increased fuel costs." begin commercial operation in late Commissioner Wise: Making Informed Commission Action on Solar Choices Plant Vogtle T he ink isn't dry yet on legislation making it easier to finance solar systems for Georgia consumers, and already unscrupulous marketers are misleading consumers with offers to go solar and "eliminate" the electric bill. If Georgia's experience is anything like California, Arizona or even Louisiana, the Governor's Office of Consumer Affairs will soon be busy with complaints of deceptive marketing. Rest assured, solar consumers will still get an electric bill. And when you consider all capital and finance costs, so- (Continued from page 2) "Bubba" McDonald that requires natural gas marketers to notify their customers of the credit either through a message on their bill or a bill insert. The credit will continue until June 2025. lar isn't cheaper than residential and small commercial electric rates offered by Georgia utilities. Even after applying rebates and tax credits, it would take close to 14 years to break even on a $16,800 7kW roof-top system being considered for my own family cabin served by a Georgia EMC member. Study the offers Beware of sales gimmicks that predict electric rates will rise 4-6% annually. Over the last 25 years the average annual increase has been less than 2% for the state's investor-owned electric utility. Ask for a good faith estimate of the kilowatt hours to be delivered by the system over time. Request plain language explanations of pricing terms over the life of the contract, warranties, and operation and maintenance costs and responsibilities. The lowest cost option for solar arrays may not even be a lease, but paying cash or using a home equity loan and taking the 30% Federal tax credit oneself. Think Twice about solar back -up systems Before investing in a solar battery back-up system at $5-$10,000 every 10 years or so, be sure to weigh that cost against more practical investments in non-perishable (Continued on page 6) PAGE 6 GPSC NEWS 2015 NARUC Winter Meeting VOLUME 13 ISSUE 3 C ommissioners and staff participated in the February 2015 Winter meet- ings of the National Associa- tion of Regulatory Utility Commissioners in Washing- ton, D.C. The sessions included an up- date in the Electric Committee on the construction of the two new units at Plant Vogtle. Commissioner Lauren Commissioner Wise participates in closing panel at NARUC Commissioner McDonald takes part in Electric Committee panel on Plant Vogtle "Bubba" McDonald introduced Commissioner Stan Wise ral gas supplies and a panel of Georgia Power Vice President for chaired his first Gas Committee natural gas industry CEOs. Wise Nuclear Buzz Miller, who then since being named as Gas Com- also took part in the closing pan- gave his update to the commit- mittee Chairman in January. His el which discussed the conver- tee. McDonald is also Vice- committee heard presentations gence in the electricity, gas and chairman of the Nuclear Waste on market conditions, the Clean water industries and its impact Subcommittee. Power Plan rules effects on natu- on consumers. Solar Choices ray on their house, much less willing to assume a lease of old- (Continued from page 5) foods and other goods necessary to ride out those rare power outages. If backup power is necessary, a natural gas standby generator is likely more cost effective. Talk to real estate appraisers Even if cost calculations suggest you will break even in 15 to 20 years, it may not be a good idea to install solar if you may move before then. Selling a home with a solar array may be a selling-point in some parts of California, but here in Georgia it can be a liability that harms resale value. Only a small universe of buyers are willing to have an ar- er, less efficient equipment. Be aware of restrictions Some developments may require that solar arrays not be visible from the road. Considering the arrays perform best when facing south, this may limit your options. If you have trees that shade your home, your house may stay cooler with the shade and save you more money than if you cut the trees down for solar. Rate structures may change caused a $1.2 billion cost shift formed on your home to see if Solar customers must be con- onto non-solar customers because you can save energy costs every nected to the grid for backup solar customers pay about 19% month. power and to sell excess power less than what it costs the utility As consumer protections devel- back to the system, which means to serve them. For these reasons, op, technology improves and they still need power plants and Georgia should consider restruc- prices decline, solar energy all the network infrastructure turing the fixed infrastructure shows great promise under the necessary to serve the home 24- costs into a demand component hours a day. However, residen- on residential customer bills so right application. Note: This op-ed appeared in tial solar customers do not pay that everyone who uses the grid the Atlanta Journal Constitution all these fixed costs. Efforts are pays their fair share of the costs (edited) on April 8, 2015 and underway in some states, such of keeping it operational. the Marietta Daily Journal on as Wisconsin and Arizona, to roll Before investing a large amount April 9, 2015. back the cost shifts that result. of money in a home solar system In California, a 2013 study esti- in hopes of saving a few dollars a mates that roof top solar has month, have an energy audit per- VOLUME 13 ISSUE 3 GPSC NEWS PAGE 7 Employee News Executive Director Deborah Flannagan joined Georgia House Speaker David Ralston and State Representa- tive Penny Houston on the floor of the House on February 10, 2015. Ms. Flannagan re- ceived an invitation for her work in helping more children receive hearing aids through the Commission (L to r) Rep. Doug Belton, Rep. John Deffenbaugh, (left to right) Representative Houston, Deborah Flan- administered hearing aid program. CAPT Bill Edge, RDML Kent Davis, Governor Deal, Master Chief C.D. Crawford, CAPT David Fritz, Rep. Joe Wilkinson, Rep. Tom Taylor, LT Cheryl Collins nagan, Speaker Ralston Staff Changes Sympathy Reserve Recognized The Commission March 17 approved moving Shemetha Jones from the Energy Efficiency and Renewable Energy Group to the Vogtle project and moving Nick Cooper from the Electric Unit to the EERE Group. Congratulations to both! To: James Gibson on the pass- Public Information Officer Bill ing of his mother on March 19. Edge, (third from left) a Captain From James: "I want to thank all in the Navy Reserve, joined Rear of you for your many kind words, Admiral Kent Davis, Governor Na- cards and contributions following than Deal, Navy officers in the the death of my Mother. It is a Atlanta area and Navy Veterans in blessing to work with such won- the Georgia House on March 3, derful people. A donation was 2015 to celebrate the 100th anni- made to the Douglasville First versary of the U.S. navy Reserve. Baptist Church, where she was a Governor Deal issued a proclama- member for many years. tion to recognize the Navy Re- My family and I thank you very serve on this date. The Georgia much for all of your House also adopted House Resolu- kindness and thought- tion 293 to honor the fulness. " Navy Reserve 100th anniversary. Solar Financing Measure Passes Legislature S tate Lawmakers this year had introduced legislation in the more than 125 per cent of their gave unanimous approval 2014 session but it failed to pass. normal usage. The installation to legislation that for the first Instead, Dudgeon worked in the must meet all national and state time would allow homeowners interim to work out a compromise safety standards. and commercial businesses to that the utilities, solar energy Governor Nathan Deal is expected finance solar panels from third companies and lawmakers could to sign the legislation into law. It parties. House Bill 57, spon- agree on. would take effect July 1, 2015. sored by State Representative Under the legislation, a homeown- The Commission is reviewing the Mike Dudgeon of Johns Creek, er could finance the solar installa- legislation to determine what ac- passed both the House and tion if his energy use is no more tions may be needed to either re- Senate without a single no than 10 kilowatts while a com- act to or implement this legisla- vote. Representative Dudgeon mercial business is limited to no tion. PAGE 8 GPSC NEWS Georgia State Holidays for 2015 VOLUME 13 ISSUE 3 Commission Calendar New Year's Day M.L. King, Jr. Day Confederate Memorial Day Memorial Day Independence Day Labor Day Columbus Day Veterans Day Thanksgiving Day Robert E. Lee's Birthday Washington's Birthday Christmas Day January 1 January 19 April 27 May 25 July 3 September 7 October 12 November 11 November 26 November 27 December 24 December 25 April 2015 2-Committees 7-Administrative Session 12-Committees 21-Administrative Session 27-Holiday 30-Committees May 2015 5-Administrative Session 14-Committees 25-Holiday 19-Administrative Session 28-Committees Commission Calendar June 2015 2-Administrative Session 2-Vogtle Hearing 11-Committees 16-Administrative Session July 2015 2-Committees 3-Holiday 7-Administrative Session 16-Committees 21-Administrative Session NARUC Summer Meetings 2015 July 12-15, 2015 New York City, N.Y. Annual Meeting 2015 November 8-11, 2015 Austin, Texas Winter Meeting 2016 February 2-5, 2016 Washington, D.C. SEARUC Annual Meeting 2015 June 14-17, 2015 San Antonio, 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 Lauren "Bubba" McDonald Jr., Vice-Chairman Tim G. Echols Doug Everett Stan Wise EXECUTIVE DIRECTOR Deborah Flannagan EXECUTIVE SECRETARY Reece McAlister