Georgia Public Service Commission GPSC News Spring Spring 2016 2016 Volume 14 Issue 2 *Georgia Power base rates frozen through December 31, 2016 *Merger costs borne by Companies *Affiliate transaction rules remain in force *Utilities must maintain current service and quality standards In this issue Legislative Update 2 Commission Begins Integrat- 3 ed Resource Plan Hearings Commission Applauds Court 4 Stay of Clean Power Rule Department of Energy 5 Holds Meeting on Nuclear Waste Disposal in Atlanta Staff Visits Kemper Plant 5 Commission Approves Proceeding to Examine Plant 6 Vogtle Costs Employee News 7 Commission Calendar 8 Next Issue August 2016 Commission Approves Southern Company Merger with AGL Resources T he Commission April 14, 2016 unanimously approved the Southern Company merger with At- lanta-based AGL Re- sources, Inc. by approving the proposed settlement of the Joint Request by the Petitioners in Dockets 39971 and 9574. All parties in the proceeding support- ed the settlement. The de- cision settles all issues in the above mentioned dock- ets and will cancel any fur- The Commission ap- mission certificated nat- ther scheduled proceed- proved settlement of the ural gas marketers in ings. merger includes a num- Georgia's deregulated One of the key items in the ber of items to protect natural gas market. settlement is a three year the ratepayers of Atlan- "I believe this agree- freeze on Georgia Power's ta Gas Light Company ment contains safe- base rates meaning Geor- and Georgia Power guards for ratepayers gia Power rates will remain Company as well as and consumers while at the same through Decem- consumers who receive the same time allowing ber 31, 2019. natural gas from Com- (Continued on page 2) Governor and Commission Proclaim April Safe Digging Month R epresentatives from the Commission, utilities and excavators joined with Governor Nathan Deal on April 19, 2016 in proclaiming April as National Safe Digging Month. The law requires anyone who plans to excavate where underground utilities are located to call 8-1-1 before they dig. The pro- (Continued on page 2) PAGE 2 GPSC NEWS VOLUME 14 ISSUE 2 2016 Legislative Session Ends, Commission Sees Increase in Budget T he 2016 session of the Georgia General Assembly ended after midnight on the morning of March 25, 2016. as lawmakers adjourned sine die and many returned home to begin their re-election campaigns. This session was one of the most successful for the Commission's budget in at least the last ten years. In the final conference committee report on House Bill 751, the Fiscal Year 2017 state budget, If you have a story for the next GPSC News, please send to Bill Edge, bille@psc.state.ga.us. Next issue deadline is July 15, 2016. the Commission received an increase of more than $637,000 in direct state funding plus more than $416,000 in bond funds. The money in the FY 2017 budget includes funds to hire two utility analysts, one operations support analyst and fund three per cent merit pay increases for Commission personnel. An additional $38,925 was added to fund per diem for the Commissioners who live further than 50 miles from the Commission offices. While the final conference committee report did eliminate funding for a recommended third position in Utilities, overall the 2016 Session was a great one for reversing the cuts the Commission has endured over the past ten years. Total state funding for the Commission for FY 2017 is $9.1 million, with an additional $1.3 million in federal funds. The total Commission budget for FY 2017 will be $ 10.4 million. Merger said Commissioner Stan Wise. McDonald. "And ensure that "The merger is good for the our deregulated natural gas (Continued from page 1) this merger to move forward in accordance with Georgia law and Commission rules," said Commission Chairman Chuck Eaton. "Every intervenor representing every class of ratepayers signed off on this. Every group acknowledged that this settlement is a huge benefit for the ratepayers who will benefit from this rate freeze for the next three years," Georgia economy," said Commissioner Tim Echols. "Had AGL Resources left our state with one of the other companies pursuing them, they would have taken many jobs with them. Keeping them in Georgia has a very positive impact." "I am pleased that we were able to keep Georgia Power's rates at the same level for the next three years," said Commission Vicechairman Lauren "Bubba" market in Georgia remains competitive." "I am proud to support this settlement that means stable rates for Georgia Power customers for the next three years," said Commissioner Doug Everett. "All consumer protections remain in place to ensure that customers of both companies continue to receive reliable, safe and efficient service." (Continued on page 3) Safe Digging Month derground utility facilities. Our (Continued from page 1) common goals are to prevent cess is simple and can prevent the disruption of utility services major damage that can endan- and personal injuries that result ger and inconvenience our com- ing in death or injury. from accidents which damage munities and cause economic Commission Chairman Chuck underground facilities." disruption. Damage from exca- Eaton said, "We are pleased to The Georgia Public Service Com- vation activities to gas and wa- work together with Georgia 811, mission is charged with the en- ter pipelines, along with sewer our federal partners, and the forcement of the state's under- systems and buried distribution National Association of Regulato- ground utilities damage preven- power lines, remains a leading ry Utility Commissioners tion programs as a result of cause of utility incidents result- (NARUC) to prevent damages state legislation approved in from occurring to the state's un- (Continued on page 4) VOLUME 14 ISSUE 2 GPSC NEWS PAGE 3 Commission Begins Hearings on Georgia Power Integrated Resources Plan H earings on Georgia Power Company's 2016 Integrated Resources Plan got underway on April 18, 2016 with the Compa- ny's direct testimony in Dockets 40161/40162. The IRP is the Company's three year update of its twenty year long range plan to provide for adequate electric generation for its customers. Company witnesses appearing before the Commission were Larry T. Legg , Scott Burleson, Ali- Georgia Power witnesses testify on the first day of the hearing. Left to right are: Larry T. Legg, Jeff Burleson, Alison Chiock and Larry S. son Chiock and Larry S. Monroe. Monroe The hearing lasted into three days. This was the first of three nors will present their testimony ter filing of proposed orders and hearings that will provide testi- on May 17-19, 2016 while Geor- briefs, the Commission is sched- mony on the Company's plan. Commission staff and interve- gia Power will present rebuttal uled to issue a decision on July testimony on June 8-9, 2016. Af- 19, 2016. Print and electronic news media reporters cover the proceedings The hearing room is packed to capacity as the hearing gets underway. Commissioners listen to witnesses during the two and a half days of direct testimony Merger (Continued from page 2) Outlined below are some of the Principal Terms of The Settlement: 1. No harm to current service. Georgia Power and Atlanta Gas Light agree to continue to devote resources necessary to maintain current service quality, reliability, and safety levels. 2. Merger costs. The Companies shall not recover any merger Power and Atlanta Gas Light costs (transaction costs, shall be allowed to retain actual transition costs, Goodwill merger savings achieved in each costs, or fair value in excess of the three calendar years fol- of net book value) from rate- lowing the merger. Following payers. the initial three years, all mer- 3. Merger savings. The Compa- ger savings shall be shared on a nies will take reasonable and 60-40 per cent basis between prudent steps to integrate the ratepayers and the companies companies and identify and im- for an additional three year peri- plement efficiencies and cost od. Thereafter, 100 per cent of savings. To incentivize the Com- merger savings shall be flowed panies to find savings, Georgia (Continued on page 4) PAGE 4 GPSC NEWS VOLUME 14 ISSUE 2 Commission Applauds U.S. Supreme Court Ruling to Halt Implementation of Clean Power Plan Rule M embers of the Commis- mented, this rule will increase years," said Commission Vicesion applauded the U.S. electric rates and drive up the chairman Lauren "Bubba" Supreme Court decision on costs of doing business without McDonald. "The court of the February 4, 2016 that halts the substantially decreasing the ef- people of New Hampshire also implementation of the Obama fects of climate change," Eaton handed this Administration its Administration's Clean Power added. second defeat of the day," Plan. The Court ruled 5-4 to The Environmental Protection McDonald added. stop enforcement of the Plan Agency (EPA) issued the final rule "I am extremely pleased that that until all legal challenges are in August 2015 but 27 states in- Court has temporarily halted en- resolved. Arguments on the cluding Georgia have joined in forcement of this onerous rule Rule in the D.C. Circuit Court of legal challenges. while legal challenges are ongo- Appeals are scheduled to begin "The Court has demonstrated ing," said Commissioner Stan on June 2, 2016. common sense which the EPA Wise. "The rule is a federal over- "I am very pleased that the na- and this Administration lack. The reach and tramples on the careful tion's highest court has tempo- path the EPA tried to take would planning which has achieved rarily stopped this burdensome, be devastating and expensive to competitive and reliable electricity over-reaching regulation," said the consumers of Georgia who in our state. This rule may signifi- C o m m i s s i o n C h a i r m a n have invested millions toward cantly limit fuel diversity and in- Chuck Eaton. "If fully imple- clean energy generation over the crease the cost of electric power in Georgia and nationwide," Wise added. "The Supreme Court's stay of the infamous EPA rule is signifi- Commission Approves New Natural Gas Marketer T cant for our state and others who are grappling with compliance," said Commissioner Tim he Commission on April 5 approved the application of Echols. "Now we have some Everyday Energy, Inc. as the breathing room and a strong state's newest certificated natu- signal from the Court that this ral gas marketer, giving Georgia entire plan could be struck down 14 natural gas marketers. Eve- in totality," Echols added. ryday Energy will serve both The Georgia EPD has halted residential and commercial cus- planning on the rule. tomers. Merger (Continued from page 3) through to customers of Georgia Power and Atlanta Gas Light either through base rates or through a surcredit rider. 4. Credit Costs. Any increases in credit costs directly related to the merger will not be recovered from ratepayers. 5.Georgia Power Rates. No base rate case this year and no base rate increases for three years. Safe Digging Month underground utilities. and excavators as well as home- Using these programs, the owners and helps all excavators (Continued from page 2) Commission provides training and comply with the law. 2000. The Commission also en- education for excavators and Commission Vice-chair Lau- forces federal pipeline safety utilities in order to avoid ren "Bubba" McDonald said, "I standards under an agreement accidents that can cause want to remind anyone who ex- with the Pipeline and Hazardous expensive and often dangerous cavates to call before you dig by Materials Safety Administration. damage to buried utilities. The placing a call to 8-1-1. It's free The Commission's program is Commission also works closely and it's the law. A simple phone rated one of the top five in the with Georgia 811, Inc. which ac- call can prevent the disruptions nation and serves as a model cepts calls from the national fed- and economic losses that can for other states to follow in erally mandated "Call before You occur when underground utilities reducing damages to Dig" Number 8-1-1. This "one (Continued on page 6) call" system is free to contractors VOLUME 14 ISSUE 2 GPSC NEWS PAGE 5 Department of Energy Holds Meeting on Nuclear Waste Disposal in Atlanta T he Department of Energy held the second of its cilities to manage our nation's nuclear waste. These meetings eight "Consent Based Site are intended to allow the public, Initiative Meetings" in Atlanta communities, states, Tribal Na- on April 11, 2016 at the tions and others to help inform Georgia Tech Hotel and Con- the Department's thinking as it ference Center. Former Gov- develops this process. ernor Sonny Perdue gave Acting Assistant Secretary for opening remarks and then Nuclear Energy John Kotek pre- the group heard from four sented the Department's vision panelists including Commis- for an integrated waste manage- sioner Lauren "Bubba" McDonald. Commissioner McDonald addresses In his remarks, McDonald the DOE Consent based meeting ment system and the need for a consent-based approach to siting. said the federal government has wasted enough time in deciding where to locate a nuclear waste repository. He called on DOE to move the process forward and "do something." The Atlanta meeting was one of the eight DOE meetings around the country intended to help design its consent-based siting for federal fa- Six more meetings will be held through July in Boise, Idaho; Boston, Mass.; Denver, Colo.; Minneapolis, Minn.; Sacramento, Calif.; and Tempe, Arizona. PSC Staff Visits Kemper Plant S taff from the National Association of Regulatory sippi, and about an hour -and-a-half east of Jack- (NARUC) Utility Commissioners son. Research Lab coordinated The group included Commissioners, Commission Commissioner Paul Rob- staff, and National Conference erti of Rhode Island, of State Legislatures in NAR- Commissioner Lisa Ed- UC's third site visit to Southern gar of Florida, Commis- Company's and Mississippi sioner Jeremy Oden of Power's Kemper County Energy Alabama, Commissioner Facility on January 28, 2016. John Quakenbush of The plant is located about 30 Participants in the NARUC-NCSL sponsored Michigan, Commissioner miles north of Meridian, Missis- Kemper tour Libby Jacobs of Iowa, and Commissioner Alaina Burtenshaw of Nevada and staff from Commissions in Alabama, Florida, Georgia, and Michigan including Commission PIO Bill Edge. Staff from NARUC included Ivy Lyn and Kerry Worthington from the Research Lab and Jennifer Murphy from the Policy Department. Southern Company and Mississippi Power officials provided a comprehensive overview of the first-of-a-kind plant-specific technology and engineering prior to the tour. The group then saw the adjacent lignite coal mining operation, viewed the two TRIG gasifiers and CO2 capture equipment, along with the coal dryer and lignite storage dome. Once fully operational, the 582megawatt Kemper plant will capture 65 percent of the car- bon dioxide for enhanced oil recovery at a nearby mature oil field. The plant will also capture and sell the sulfuric acid and ammonia, both industrial chemicals used for industrial purposes. Kemper is also a zero liquid discharge facility using treated effluent water from Meridian for all its cooling and operational needs. PAGE 6 GPSC NEWS VOLUME 14 ISSUE 2 Commission Approves Proceeding to Examine Georgia Power Settlement on Plant Vogtle Litigation T he Commission February 2 , 2016 approved by a vote of In explaining his proposal, Commissioner Wise said, 4-1 a motion to allow the Com- "Nothing is gained by defer- mission staff and all interested ring action to a future Com- parties to examine the justifica- mission, however the industry tion for the Consortium Agree- does have something to lose if ment to settle litigation between we do not act. With this coun- the Georgia Power Company and try's move away from coal and its contractors on the Nuclear some are even attacking natu- Plant Vogtle Construction pro- ral gas, I believe we need to ject. Commissioner Stan Wise proposed the motion. Vogtle under construction send a message across this country that nuclear power is On January 4, 2016, the Compa- ment cost is approximately $350 viable and supported by the reg- ny announced a settlement of million. The settlement also recog- ulators in their respective states. pending litigation between the nizes and confirms the 39 month This Commission approved this Company, the co-owners and delay in the project. The Company project and this Commission the project contractors. The an- filed for Commission approval of should live up to its obligation to nouncement indicated that Geor- the settlement on January 21, recognize schedule and price gia Power's portion of the settle- 2016. changes." The motion calls on the Compa- and the settlement are reasonable in settlement talks with the ny to file within 60 days its justi- and prudent. Company and other parties. fication for approval of the Con- The Commission staff will review If a settlement is reached, the sortium Agreement and the the Company's filing over a six- Commission would hold a hear- Company's position that all costs month period after the Company ing so that the Commission can to date have been prudently makes its filing. During this time decide whether to approve this spent and the new cost and there will be no hearings or filed agreement. schedule is a reasonable re- testimony however the motion In supporting the proposal, forecast. directs the Company to respond to Commission Vice-chairman Furthermore, the motion directs data requests as if this were a Lauren "Bubba" McDonald the Company to provide all rea- hearing process. said, "We don't need to kick the soning and documentation so If during that review, the staff be- can down the road. I'm taking that the Commission can deter- lieves any costs should be disal- responsibility today to tackle our mine whether all the costs asso- lowed as imprudent or unreasona- issues." ciated with the schedule delays ble, staff is authorized to engage Safe Digging Month (Continued from page 4) are damaged." "Calling 8-1-1 is the best way to prevent damage to our underground utilities," said Commissioner Stan Wise, "Everyone loses when underground utilities are damaged." Commissioner Doug Everett added, "Calling before you dig is the right thing to do. Just one phone call can prevent untold damage to our underground utilities that can cause economic loss, traffic disruption and even loss of life. " "Excavators are only as good as the marks on the ground," said Commissioner Tim Echols. "That is why calling before you dig is so important." "Always contact Georgia 811 before every digging project, every time. All digging projects need to be done safely, including projects like installing a mailbox, landscaping or fence installation. Log on to Georgia811.com or simply dial 811. It not only saves lives, but money and time. If you have dug in the past without calling, don't make that mistake again. The call is free and having the underground utilities marked is free," adds Georgia 811's President and CEO, Claudette Campbell. The public, excavators and others can find resources available at www.call811.com and at www.Georgia811.com. VOLUME 14 ISSUE 2 GPSC NEWS PAGE 7 Employee News Commission Celebrates Retirement of Bolin Killings L ong time Commission staff member Bolin Killings officially retired from the Com- mission on March 1, 2016 after 31 years of state service. Bolin's colleagues, friends and family gave him a retirement send off at the Commission on February 25, 2016. Bolin's brother, the Rev. Dr. Bolin gives his farewell Rev. Dr. Leonard Killings Leonard Killings remarks speaks to the gathering and his sister Deborah Norman were there to wish their sibling a happy retire- Commission honoring Bolin's ment. Commissioner Stan Wise long and successful career with presented a proclamation from the the Commission which began in Commissioner Wise presents Resolution honoring Bolin All enjoyed a delicious recep- Bolin and his longtime tion following the ceremony unit Director Nancy Tyre 1985. Bolin worked in three final assignment in the Natural A number of former and retired different Units at the Commis- Gas Unit. Among his accomplish- Commission staffers attended to sion, starting with the Telecom- ments was helping the transition wish their former colleague and munications Finance Section, to to a deregulated natural gas mar- co-worker farewell and best the Utilities Finance Unit, to his ket in Georgia. wishes. Welcome New Employees Farewell We are pleased to welcome the following new employees who have joined the Commission family. Bethany Walker as Administrative Assistant to Commissioner Echols. Karen Howell as Consumer Affairs Representative Stephanie Sears as Consumer Affairs Representative Marilyn Morris-Simmons as Administrative Assistant to GUFPA Ben Stair as a case investigator to GUFPA. Emilio Rodriguez to the Electric Unit. We welcome all of them aboard and hope they have long and productive careers with the Commission. T o Faith Henning, Administrative Assistant to Commissioner Echols. Faith had been with the Commission since 2014. Faith transferred to the Georgia Supreme Court. To Jim Atkins, Pipeline Safety Inspector. Jim resigned to take a job in the private sector. PAGE 8 GPSC NEWS Georgia State Holidays for 2016 VOLUME 14 ISSUE 2 Commission Calendar New Year's Day M.L. King, Jr. Day State Holiday Memorial Day Independence Day Labor Day Columbus Day Veterans Day Thanksgiving Day State Holiday Christmas Day Washington's Birthday January 1 January 18 April 25 May 30 July 4 September 5 October 10 November 11 November 24 November 25 December 26 December 27 April 2016 5-Administrative Session 14-Committees 18-Georgia Power IRP hearing 19-Administrative Session 25-Holiday 28-Committees May 2016 3-Administrative Session 12-Committees 17-Administrative Session 30-Holiday Commission Calendar June 2016 2-Committees 7-Administrative Session 7-Vogtle hearing 16-Committees 21-Administrative Session 30-Committees July 2016 4-Holiday 5-Administrative Session 14-Committees 19-Administrative Session NARUC Summer Meeting 2016 24-27 July, 2016 Nashville, Tennessee Annual Meeting 2016 November 13-16, 2016 La Quinta, California Winter Meeting 2017 February 12-15, 2017 Washington, D.C. SEARUC Annual Meeting 2016 June 12-15, 2016 Palm Beach, 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