Georgia Public Service Commission GPSC News Summer Summer 2015 2015 Volume 13 Issue 4 *Wise testifies before House Energy and Power Subcommittee *Proposes amendments to 2011 Pipeline Safety Act *Notes Georgia Pipeline Safety Program *Calls for Reducing Administrative Burdens In this issue Wise testifies 2 Commission Hears Plant Vogtle Testimony 3 Summer NARUC Meeting 4 Echols Hosts Alternative Fuel Vehicle Roadshow 5 Commissioners Take Part in Solar Groundbreakings 6 Wise Testifies Before Congress on Pipeline Safety Law C ommissioner Stan Wise testified before Congress on July 14 on the progress that the Pipeline and Hazardous Materials Safety Administration, (PHMSA) is making in im- plementing a 2011 law on pipeline safety standards. Wise appeared before the U.S. House Subcommittee on Energy and Power. Commissioner Wise ap- Commissioner Stan Wise sits next to other witnesses appearing before the House Subcommittee on Energy and Power on July 14 peared on behalf of the Na- cratic burdens on the bursement from PHMSA tional Association of Regu- states. Wise also noted for enforcing pipeline latory Utility Commission- Georgia's successful safety regulations cre- ers (NARUC) and the Com- pipeline safety program ates severe financial mission. In his testimony, which is one of the larg- strain on the Commis- Wise outlined several pro- est in the nation, based sion. posed amendments to the on based on services, "The one issue that Act to streamline pipeline miles of mains, inspec- continues to cause prob- safety enforcement by tors, and budget. lems for us is the in- state regulators and reduce Wise pointed out that creasing delays in re- administrative and bureau- delay in receiving reim- (Continued on page 2) Commission Approves Construction of Solar Employee News 7 Facility at Marine Corps Base in Albany Commission Calendar 8 Next Issue November 2015 T he Commission on July 21 unanimously ap- proved the construction of a new 46 megawatt (MW) solar facility at the Marine Corps Logistics Base in Al- bany, Georgia. The Com- mission approval follows a Memorandum of Under- standing signed between the U.S. Navy and Georgia Power Company with the aim of furthering the Marine Corps' renewable en- ergy, climate action and energy security goals. This is the fifth solar facility that will be con- structed at Georgia military bases as a result of the partnership between the Commission, Georgia Power and the U.S. Department of Defense. The Commission previously approved contracts for solar facilities at Fort Gordon, Fort Stewart, Fort Benning and the Kings' Bay Naval Sub- PAGE 2 GPSC NEWS VOLUME 13 ISSUE 3 Wise Testifies Before Congress (Continued from page 1) ceiving base grant reimbursements. Like other states, over the past few years, the amount of time Georgia, as well as other states', has had to wait to get paid for enforcing federal pipeline safety rules has increased steadily. In years' past, our finance department could depend on timely payments, which is very important on tight state budgets. This is an issue that needs resolution," Wise notes. Wise proposed the following legislative amendments in his testimony: 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. 1. Increased Civil Penalties - 19 States have adopted the new mandated Civil Penalty level, but some States believe that it is more productive to penalize earnings or rates of return rather than simply levying fines when a violation occurs. 2. State Damage Prevention Current law makes States with exemptions to Damage Prevention laws ineligible for State OneCall and State Damage Prevention Grants. NARUC opposed this provision in 2011. This provision has created problems for States as they cannot access grants for damage prevention. This is counterproductive to the goal of preventing damage. 3. Automatic and Remote Con- trolled Shut-off valves - PHMSA has not published the required study to date. This study will help us determine whether or not additional State requirements may be in order. States will need to provide a rate structure to our regulated utilities that would provide for the recovery of any additional costs incurred by our utilities that may be required for the installation and maintenance of these facilities. 4. Integrity Management PHMSA has not published the evaluation of the current Integrity Management Regulations and whether or not these requirements should be expanded beyond High Consequence areas. (Continued on page 4) Marine Corps Solar Facility (Continued from page 1) marine Base. Georgia Power will construct all of these projects and as with the other self-build projects, the Marine Corps project will be completed by the end of 2016 and have a 35 year life. "With the closing of Plant Mitchell, this project gives us the opportunity to provide jobs and economic development with a clean renewable energy source while at the same time contrib- ute to national energy security," said Commissioner Doug Everett of Albany. "We hope these projects at our Georgia military bases will also offset any future plans for base closures," added Everett. "This project is a credit to the Commission and our work with our partners, Georgia Power and the military. It will give us the opportunity to make a great investment for the people of Georgia," said Commissioner Lauren "Bubba" McDonald. "One thing that is important to note, is that this project is part of the Defense Department's cybersecurity program to protect our military bases should their outside power sources be interrupted." The Marine Corps project stems from the Commission's 2014 decision to reallocate 46 MW of capacity from the Plant Mitchell biomass project to other military self-build projects. The Company requested approval from the Commission to use the remaining capacity for this purpose. The Commission approved the three U.S. Army projects in October 2014 and the U.S. Navy project in May 2015. The Commission authorized the Company to build these four 30 MW renewable projects provided that the cost of the projects is equal to or less than the Company's avoided costs, meaning no upward pressure on rates. "The Commission is proud to be able to play a role in improving national security, increasing energy independence, and supporting our Georgia bases," added Commission Chairman Chuck Eaton. "Georgia is an early enactor with the Department of Defense to make these important projects happen," said Commissioner Stan Wise. "The opportunity to build these projects has been accomplished through a collabo- rative process between the Department of Defense, Georgia Power, and the Commission." "Georgia has done solar differently than California, Arizona and other states," said Commissioner Tim Echols. "We're doing projects like these on military bases as well as large utility scale arrays in South Georgia-without a subsidy and without a renewable portfolio standard," Echols added. VOLUME 13 ISSUE 3 GPSC NEWS PAGE 3 Commission Hears Testimony During Plant Vogtle Construction Monitoring Hearings T he Commission had a busy June holding two hearings for the Plant Vogtle Construction Monitoring process under Docket Number 29849. During the first hearing on June 2, Georgia Pow- er presented its direct testimony in support of its request for the Commission to verify and ap- prove its expenditures on the massive nuclear construction Kevin Green, (left) Georgia Power project for the six months ending December 31, 2014. attorney, presents the Georgia Power panel during the Company's direct testimony on June 2. The Georgia Power witness panel were Alison Chiock, David L. Bill Jacobs. The Commission is MdKinney and David J. Clem. scheduled to issue its decision at Testifying on behalf of the Com- the regular Administrative Session mission Public Interest Advocacy on Tuesday August 18, 2015. Un- Staff were Steve Roetger and Steve Roetger, Public Interest Advocacy Staff (left) and Bill Jacobs, Construction Monitor, testify at June 23 hearing. der Georgie law, the Commission must issue a decision in this docket by August 26, 2016 or the Company's filing automatically takes effect. Office Moves O n June 1, the Energy Efficiency and Renewable Energy Group and the Internal Consultants Group relocated to new offices. Second Floor 244 Building. Allison Morris suite #221, room #220, same telephone number; Dennis Sewell suite #221, room #222, same telephone number; Tom Newsome suite #226, room #226, same telephone number; Steve Roetger suite #226, room #227, same telephone number SEARUC 2015 C Kate Leigey suite #226, room #229, same telephone number ommissioners and staff from 11 southeastern states gath- ous panels. The sessions included First Floor - 254 Building ered in San Antonio, Texas from topics such as Jamie Barber - room #110, same June 7-10, 2015 for the annual "Innovative Methods telephone number. meeting of the Southeastern As- of Financing Infra- Nick Cooper - room #112, phone: (404) 656-0995 sociation of Regulatory Utility Commissioners (SEARUC). structure", "Hot Topics in Telecom" and "Nuclear Waste: Is John Kaduk - room #114, same telephone number The annual meeting included a there an Alternative to Yucca keynote address by FERC Com- Mountain?", led by our own missioner Tony Clark and numer- Commissioner Stan Wise. PAGE 4 GPSC NEWS VOLUME 13 ISSUE 3 Summer NARUC Meeting in New York T he National Association of Regulatory Utility Commissioners (NARUC) held its summer committee meetings in New York City July 12-15. The meetings give regula- tors and staff a forum to hear from industry and political leaders and to dis- cuss the latest updates and information on issues Commissioner McDonald listens while Commissioner Echols tweets during relevant to utility regula- the Electric Committee session tors. Speakers presented on and financing modern utility pro- timely and sometimes con- grams. troversial issues facing NARUC President Lisa Edgar opened regulators, such as Lifeline the first general session on July 12 to reform, the Clean Power a packed audience of state utility reg- Plan, pipeline safety ulators and members of stakeholder communities, highlighting some of the most relevant issues before the Association, including the Clean Power Plan and proposed amendments to pipeline safety regulations. Edgar also announced the creation of a telecommunications task force. Along with a panel on how to finance Former NYC Mayor Rudolph Guiliani addresses NARUC energy technologies of the future, keynote speakers included Richard Kauffman, chairman of energy and Thomas Fanning, CEO of the finance for Southern Company. Many ses- New York, sions were held before standing- Office of room-only audiences, such as Governor the spirited debate between Andrew Commissioners Mignon Clyburn Cuomo; for- and Michael O'Rielly of the Fed- mer New eral Communications Commis- York Mayor sion, discussing the matter of Rudolph reforming the Lifeline program. Giuliani; and The NARUC Annual Meeting will Southern Company Thomas Fanning makes a point during his discussion be November 8-11, 2015 in Austin, Texas. Wise Testifies (Continued from page 2) Again, NARUC and its members are very interested in the findings of this study. This may also have an upward rate impact on our consumers, but could also lead to safer pipeline infrastructure in the States. 5. High Consequence Areas (HCA) Mapping - PHMSA has not updated the National Pipeline Mapping System to include the identification of High Consequence Areas. They have updated access to the National Pipeline Mapping System by making it available for the general public, however due to security reasons the system does not provide a level of detail that much of the general public would find useful. 6. Leak Detection PHMSA produced a report, has not as of yet published Notice of Proposed Rulemaking. 7. Maintenance of Effort Language in 2011 Act has caused financial difficulties in the States and is not working when PHMSA must issue wavers for 36 or more States each year. 8. Gathering Lines - PHMSA published its study to Congress on May 8, 2015, and suggested gathering lines should be regulated in order to reduce risk to the public. NARUC agrees with this assessment. (Continued on page 5) VOLUME 13 ISSUE 3 GPSC NEWS PAGE 5 Echols Hosts 5th Annual Alternative Fuel Vehicles Roadshow C ommissioner Tim Echols hosted his 5th Annual Alternative Fuel Vehicle Roadshow this summer, visiting eight Georgia cities from June 15-26 to display alternative fuel vehicles and hear from fleet managers on their experiences in using alternative fuels in their fleets. The tour began June 15 in Gainesville, then traveled to Cartersville and Albany before closing out the first week in College Park at the Georgia International Convention Center. The tour opened its second week on Alternative Vehicles line up outside Valdosta State University June 23 at Agnes Scott College in Decatur, and then went to St. Simon's Island and Valdosta before ending in Savannah at the Savannah Convention Center. The participants included Clean Cities Georgia, Geor- Commissioner Echols addresses the audience in Cartersville gia Power, Alliance Auto Gas, Hannah Solar, Efacec, Nissan, RaceTrac, Municipal Gas Authority of Gas, Atlanta Gas Light, Georgia Gas, Clean Energy Georgia, Milt Milton Honda, Con- stellation, Liberty Utili- ties, Langdale Fuel, Kia and the Propane Educa- tion and Research Coun- cil. A number of local offi- cials brought greetings and participated in the events. Among them Commissioner Lauren "Bubba" McDonald speaks to the Roadshow audience in Gainesville were State Rep. Carl Rogers, Gainesville; State Representative Darel Ealum, Albany; State Senator William Ligon, Brunswick; and State Senator William Ligon welcomes the Roadshow to St. Simon's Island Mayor Dorothy Hubbard of Albany. Wise Testifies (Continued from page 4) 9. Excess Flow Valves Notice of Proposed Rulemaking released on July 7, 2015. NARUC is currently reviewing the proposal. 10. Maximum Allowable Operating Pressure (MAOP) PHMSA has yet to implement regulations. NARUC encourages PHMSA to develop these rules in a prudent and expeditious manner to ensure the public safety of these lines. 11. Accident and Incident Notification - PHMSA currently has posted on its website a proposed Notice of Proposed Rulemaking (NOPR) requiring one hour notice of the confirmed discovery of accident or incident rather than two hours. NARUC supports the shorter notifi- cation period. Commissioner Wise's complete written testimony is posted on the subcommittee web site. http:// energycommerce.house.gov/ press-release/energy-and-power -examine-pipeline-safety-nextweek#sthash.K6pAYETO.dpuf. PAGE 6 GPSC NEWS VOLUME 13 ISSUE 3 Commissioners Take Part in Solar Facilities Groundbreaking at Georgia Army Bases C ommissioners attended groundbreaking ceremonies on May 14 and May 15 for two new 30 megawatt (MW) solar photovoltaic installations for the U.S. Army on Georgia military bases. Commissioner Stan Wise attended the ceremony at Fort Gordon and Commissioner Chuck Eaton attended the the Department of Defense groundbreaking at Fort Stewart to make these important tomorrow. The Fort Gordon and Fort Stewart projects are two of three Georgia Power solar projects for the Army that the Commission approved in October Commissioner Stan Wise at the groundbreaking ceremony at Fort Gordon, Augusta on May 14 projects happen," said Commissioner Wise. "The opportunity to build these projects came up rather quickly and was accomplished through a collabo- 2014. The Army held a ground- rative process between the Ar- breaking for the third project, 17, 2015. my, Georgia Power, and the located at Fort Benning, on April "Georgia is an early enactor with Commission." The three projects stem from a fense mandates 2007 decision by the Commis- regarding renewsion which authorized the Com- able energy and pany to build three 30 MW re- energy security newable projects provided that and represent a the cost of the projects is equal significant investto or less than the Company's ment in Georgia avoided costs, meaning no up- Army bases. ward pressure on rates. The "The Commission price of solar has dropped dra- is proud to be matically in recent years, allow- able to play a ing Georgia Power to now meet role in improving national security, the avoided cost condition. increasing energy independence, These projects will contribute and supporting our Georgia batowards the Department of De- ses," added Commissioner Eaton. Commissioner Chuck Eaton takes part in Fort Stewart Groundbreaking Ceremony May 15 Wise Referees Contest for Cobb Charity C ommissioner Stan Wise served as the referee on June 11 as Gas South executives went head to head with executives from Atlanta Gas Light in a contest to pack the most lunches for Action Ministries' "Smart Lunch, Smart Kid Program". The time limit was two hours. Gas South won the contest with both groups packing more than 500 lunches. Action Ministries delivers the lunches to school children during the summer to ensure that they receive the nourishment they need. (from the Marietta Daily Journal) Action Ministries Inc. is a nonprofit that provides an extensive network of community partners and volunteers with the tools and expertise to lead fellow Georgians out of poverty. (left to right) Commissioner Wise, Action Ministries President and CEO John Moeller, Gas South CEO Kevin Greiner, and AGL President and CEO Bryan Batson. VOLUME 13 ISSUE 3 GPSC NEWS PAGE 7 Employee News Congratulations! T o: Crystal Barber, daughter of Jamie Barber, EERE Manager, on her marriage May 3,2015 to Casey Childers at Rose Hall in Dallas, Georgia. Farewell To: Chris Devine to the EERE group as a summer intern. Chris is a recent University of Georgia graduate. He departed the Commission in mid-July to pursue his graduate degree. Sympathy To: Kelli Cole on the passing of her mother, Kathleen Laker on April 17, 2015. F acilities Protection Director Michele Therbert took part in an award presentation May 13 by Pipeline and Hazardous Materials Safety Deputy Administrator Timothy Watters to Marietta Fire Chief Jackie Gibbs honoring the Georgia Pipeline Emergency Response Initiative for setting national directions for pipeline safety. Farewell Independence Day Salad Bar T o: O'tania Jenkins who resigned April 30 to take a position with Georgia 811 as a Liaison Manager for Region 4. Said O'tania, "I have enjoyed my tenure here for the past 12 years and I appreciate having had the opportunity to work with you all. Thank you for the support, guidance, and encouragement you have provided me during my time here. I am looking forward to this new challenge and to starting a new phase of my career." C ommission staff and Commissioners gathered on July 1 for an Independence Day Salad Bar Celebration. All enjoyed salads of all types as well as beverages and desserts. Then Monique "Miss Liberty" Andrews led the group in games and entertainment Monique Andrews, as "Miss Liberty" led all a game of charades while patriotic music played in the background. South Georgia Telecom Pioneer Passes Away M ansfield Jennings, who headed ComSouth, passed away in Hawkinsville, Georgia on June 23. After World War Two, he returned to Hawkinsville to work for the Hawkinsville Telephone Company. He bought the company in 1980 and transformed it into a modern telecommunications company serving a broad swath of mid- Mansfield Jennings dle Georgia. Commissioner Stan Wise paid tribute to Jennings during the Ju- ly 7, 2015 Administrative Session saying, "Just to note the passing of the one of the industry greats in telecommunications, a great man in Georgia. He was just an all around great man, leader in his industry, leader in his community, " said Wise. Jennings served on the State Board of Regents for ten years as well as on numerous boards and civic groups in middle Georgia. 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 August 2015 4-Administrative Session 13-Committees 18-Administrative Session 27-Committees September 2015 1-Administrative Session 7-Holiday 8-Committees 15-Administrative Session October 2015 1-Committees 6-Administrative Session Commission Calendar 12-Holiday 15-Committees 20-Administrative Session 29-Committees November 2015 3-Administrative Session 11-State Holiday 12-Committee 17-Administrative Session 24-Committees 26-Holiday 27-Holiday NARUC Summer Meeting 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 2016 June 12-16, 2016 Manalapan, Florida 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