Georgia Public Service Commission
Summer Volume 14, Issue 3
The PSC Pulse
INTEGRATED RESOURCE PLAN APPROVED
The Commission on July 28, 2016 by a 4-1 vote approved a revised Georgia Power Company Integrated Resource Plan (IRP) that will include an additional 1,600 Megawatts (MW) of renewable energy by 2021. The Commission also approved by a 4-1 vote a revision of the Company's request to pass on and capitalize the costs of investigation and licensing costs for potential new nuclear units and to recover these costs from ratepayers in the future. Commissioners Eaton, Echols, Everett and Wise voted yes while Commissioner McDonald voted no.
The Commission decision approves an agreement to settle all issues involving Georgia Power Company's 2016 IRP in Dockets 40161 and 40162. As required by law since 1992 (O.C.G.A 46-3A-1), the IRP is the utility's long-range plan and forecast of the state's electric power
needs for the next three years. The Commission vote approved a stipulation signed by the Commission's Public Interest Advocacy Staff, Georgia Power Company officials and six other parties.
"I believe this IRP strikes the right balance between ensuring Georgia Power customers have reliable service and the right mix of resources while at the same time not paying for un-needed resources," said Commission Chairman Chuck Eaton.
On a motion by Commissioner Stan Wise, the Commission approved on by a 4-1 vote a revised proposal to allow Georgia Power to incur $99 million in costs for site suitability and Combined Operating License (COL) application development work for a nuclear plant in Stewart County in southwest Georgia. The motion contains the following conditions:
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INSIDE THIS ISSUE
Credit to NARUC ............................... 2 Georgia Power Rate Cuts................... 2 Clean Energy Road Show .................. 3 Lunch and Learn.................................3 SEARUC ............................................ 4 NARUC .............................................. 4 Employee Assistance ......................... 5 Finance Corner .................................. 5 IRP (continued from page 1) ............. 6 Plant Vogtle ....................................... 6 Announcements ................................ 7 Calendar ............................................ 8
SPECIAL POINTS OF INTEREST
Pipeline Safety McDonald at large Delegate Fort Benning Grand Opening Marine Logistics Base Ground-
breaking Wise appointed to National Petro-
leum Council Grand Opening of Renewable
Energy Facility in Buford Volunteer Event New Hires and other news
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Lynn Buffington, Pipeline Safety Inspector
Mr. Buffington is the first PSC inspector to visit all 85 jurisdictional natural gas operators in Georgia. Donalsonville was the final inspection on his list. Lynn has been with the PSC for 16 years and has hiked the entire Appalachian Trail. Lynn and his wife, Donna, have a daughter that recently graduated from the University of Georgia, and 4 blue heeler dogs. His favorite place is anywhere outside and he loves Donna's homemade grits.
COMMISSIONER MCDONALD AT LARGE
DELEGATE
Commissioner
Lauren
"Bubba" McDonald was one
of 31 Georgia Republican Party
delegates to the Republican Na-
tional Convention held in Cleve-
land, Ohio from July 18-21, 2016
as an at-large delegate. McDon-
ald serves as a state co-chair in
the Georgians for Trump organi-
zation.
As the first elected statewide constitutional officer to have endorsed Donald Trump, McDonald will use that influence with the Trump organization to benefit the Georgia Republican Party and the citizens of Georgia. This is Commissioner McDonald's first ever selection as a delegate to a National Convention. "This is a great honor and I am proud to represent my state and my party at this convention," said McDonald.
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COMMISSIONER STAN WISE GIVES CREDIT TO NARUC'S EFFORTS TO PASS 2016 PIPELINE
Commissioner Stan Wise on June 28, 2016 acknowledged the efforts of fellow regulatory commissioners and staff of the National Association of Regulatory Utility Commissioners (NARUC) in securing the reauthorization of the Pipeline and Hazardous Materials Safety Administration (PHMSA) Act through 2019. The Act includes a mandate to craft new rules for underground natural gas storage in the wake of a massive gas leak in Southern California last fall. On the heels of several accidents involving oil pipelines, gas leaks and derailments of trains carrying crude oil, lawmakers on Capitol Hill have mostly been on the same page and seamlessly advanced legislation addressing pipeline safety. President Obama signed the legislation into law on June 21, 2016. The Georgia Public Service Commission, with Director Michelle Thebert and her staff, administers Georgia's Pipeline Safety Program which is one of the larger state programs. Georgia's pipelines serve about 2 million residents on 43 million
miles of distribution lines and 1.2 million miles of transmission lines. These lines are inspected by our 11 Commission Inspectors with a total annual budget of $1.8million. In 2015, Georgia Pipeline Safety personnel inspected more than 106 operators and utilized more than 960 inspection person days, exceeding the 2015 requirement of 886. Inspectors completed inspections on over 80 percent of municipal operators and 100 percent private operators.
Georgia's Pipeline Replacement Program has replaced more than 2,300 miles of bare steel and cast iron pipe with a vintage plastic replacement program underway.
COMMISSION CUTS GEORGIA POWER RATES Reduces Fuel Cost Rates by 15 %
Georgia Power customers will save an average of $4.60 a month beginning June 1, 2016 as the Commission on May 17, 2016 unanimously approved a reduction in the amount Georgia Power collects each month to cover the cost of fuel used to generate electricity. The $4.60 a month savings is for a typical residential customer using 1,000 kilowatt-hours. This rate decrease will result in a reduction of the Company's total annual fuel billings of approximately $312 million. The Docket Number in this proceeding is 39638.
This is the second time in six months that the Commission has approved a reduction in Georgia Power fuel rates. The Commission on December 15, 2015 approved a reduction that saved the average residential customer using 1,000 kilowatt hours about $5.00 a month for a total reduction of 14 percent on their monthly bill. Including today's cut, the Commission has reduced residential electric bills by almost $10 a month since December 2015.
COMMISSIONER ECHOLS HOSTS CLEAN ENERGY ROADSHOW AROUND GEORGIA
State Senator Renee Unterman speaks to the Clean Energy Roadshow in Duluth
Showcase of Vehicles in Albany, Georgia
Commissioner Tim Echols hosted the 6th Annual Georgia Clean Energy Roadshow around the state again this summer with stops in seven Georgia cities in north and South Georgia June 17-24 and July 18-20, 2016.
"I started the Clean Energy Roadshow to help business and local governments learn more about alternative fuels and clean energy" said Commissioner Tim Echols. "This annual event focused on sustainable practices, vehicles and energy technologies that are working for cities, schools, businesses and transit."
"I was delighted to join with Commissioner Echols in welcoming the participants to his Clean Energy Roadshow across the state to highlight clean energy and alternative fuel sources available to government and private industry," said Commission Chairman Chuck Eaton.
Each event focused on the economic development benefits and
Gwinnett Road Show Presentation
city and business strategies for funding new technologies in vehicles,
equipment and energy generation.
The tour stops included Albany, Americus, Austell, Dahlonega, Duluth, LaGrange and Savannah.
LUNCH AND LEARN
Commissioner Echols hosted a Lunch and Learn at the commission to bring awareness to the sex trafficking issue we have in Georgia and in the U.S. Dr. Laura J. Lederer presented a study she and co-author Christopher A. Wezel conducted called "The Health Consequences of Sex Trafficking and Their Implications for Identifying Victims in Healthcare Facilities". Attendees included Senator Renee Unterman, members of groups fighting sex trafficking and Alveda King, niece of Mar- Senator Unterman and
Commissioner Echols
tin Luther King. One of the lessons from this session is how important it is for healthcare providers to recognize the signs of victims and know where to send them for help.
COMMISSIONERS CELEBRATE OPENING OF SOLAR FACILITY AT FORT BENNING IN COLUMBUS Commissioners Everett, Echols and Wise and staff joined community leaders, elected officials, Department of the Army officials, and Georgia Power representatives at the ribbon cutting ceremony June 1st to officially open the first of five new solar facilities on Georgia military bases. Commissioner Wise spoke during the ceremony. This project will generate 30 MW and covers more than 200 acres on Fort Benning.
Commissioner Wise with Assistant Secretary of the Army Katherine Hammack and 2nd District Congressman Sanford Bishop
GROUNDBREAKING OF SOLAR FACILITY IN ALBANY, GEORGIA
Commissioners Everett and McDonald joined community leaders, elected officials, Department of the Navy officials and Georgia Power representatives April 28th for the groundbreaking ceremony of a new solar facility at the Marine Corps Logistics Base. It will cover about 150 acres and produce up to 44 MW of direct current or 30 MW of alternating current capacity.
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U.S. ENERGY SECRETARY APPOINTS STAN WISE TO NATIONAL PETROLEUM
COUNCIL
Created by President Truman in 1946, the Council provides essential advice, information, and recommendations on matters
related to oil and natural gas and the oil and natural gas industries.
"I truly appreciate the trust and confidence that Secretary Moniz has shown in me by this appointment to the Council. It is vitally important that the views of the states are represented at the national level on oil and natural gas issues. This appointment especially fits in well with my long time interest in natural gas issues," said Commissioner Wise. Commissioner Wise has frequently represented state regulators in the nation's Capital, testifying multiples times before the U.S. Congress and serving as president of the National Association of Regulatory Utility Commissioners (NARUC) in 20032004.
IN OTHER NEWS>>>
Commissioner Wise was also just recently selected to serve as President of SEARUC having previously served as the 1st VicePresident.
Our PSC Chair, Commissioner Eaton currently serves as the Treasurer for SEARUC.
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SEARUC IN FLORIDA
Commissioners and staff attended the 2016 annual meeting of the Southeastern Association of Regulatory Utility Commissioners (SEARUC) June 12-15, 2016 in Manalpan, Florida. Commissioners Chuck Eaton, Doug Everett, Lauren "Bubba" McDonald and Stan Wise took part in the gathering along with Commissioners and
Commissioner McDonald on panel
Commissioner Wise on panel
staff from the 11 SEARUC member states. Other GPSC staff attendees included Bill Edge, Jamie Barber, Blair Fink, John Kaduk, Jeff Stair and of course Sallie Tanner as the Executive Director of SEARUC. Kudos to Sallie for making this an outstanding and well attended conference.
NARUC IN NASHVILLE
Commissioners and staff attended the National Association of Regulatory Utility Commissioners summer meeting in Nashville, Tennessee from Ju-
ly 24-27, 2016. Sessions on Distributed Generation, Cybersecurity, recent federal decisions, energy efficiency and community solar highlighted the meetings.
Commissioner Stan Wise chaired
Commissioner Echols on Panel
the Gas Committee meetings while Commissioner Bubba McDonald
took part in the Electric Committee meetings and Commissioner Tim
Echols made a presentation in the Consumer Affairs Committee on Com-
munity Solar.
NARUC MANUAL ON DISTRIBUTED ENERGY RESOURCES (DER) COMPENSATION
At the 2015 NARUC Annual Convention a resolution to create a Staff Subcommittee on Rate Design was approved. The purpose of creating this Staff Subcommittee was to provide a forum for state commission staff to discuss rate design challenges in their states with staff from other state commissions. In November 2015, Jamie Barber, EERE Manager of the GPSC, was appointed to this subcommittee and has been assisting in the drafting of a DER compensation manual which will be available to assist jurisdictions in navigating the challenges, considerations, and policy development related to compensating Distributed Energy Resources. The Final manual was released at the 2016 Summer NARUC Annual meeting.
EMPLOYEE ASSISTANCE PROGRAM
Throughout our lives, we face challenges. Often you can deal with them effectively on your own. Other times it is nice to know that there are resources available to help you. You may have situations that are not really a crisis or dilemma at all; you just need guidance or a source that can point you in the right direction.
For both of these circumstance, your source might be the Employee Assistance Program (EAP). Some of the services offered by the EAP include:
Academic Resources Pet Services Childcare
Eldercare
Financial and retirement planning
These benefits are free to PSC employees and their families. Visit the website for our EAP at www.eapconsultants.com to take advantage of this great benefit.
When you just need guidance or a source that can point you in the right direction. www.eapconsultants.com
FINANCE CORNER
The PSC has closed the books on another state fiscal year!
Angela Hwang and Winifred Gaines did a great job closing the books and making sure all the expenses were booked properly. You probably wonder what we actually do besides travel vouchers and issue checks.
The PSC maintains four sets of books: Administration, Facility Protection, Utilities Regulation and overall Agency. We book the expenses in 30 different `Object Classes' or categories and 3 Revenue Funds (State, Federal and Other). The Expenses can not exceed our Revenues.
The overall expenses for FY 2016 were $9,896,616.
Personal Services for our Staff was $8,503,523 (85.9%),
Building Rent was $670,072 (6.8%) leaving $723,021 (7.3%) for all other expenses.
Revenues were $8,483,225 (State),$1,284,000 (Federal) and $129,391 (Other).
When everything was balanced to the `penny' we had $769.32 of surplus State Funds that will be returned to the State Treasury.
Now it is time for the multitude of annual reports and State Audit!
COMMISSIONER ECHOLS
PARTICIPATES IN OPENING OF RENEW-
ABLE ENERGY FACILITY IN BUFORD
Commissioner Tim Echols on July 21, 2016 took part in the grand opening of the Richland Creek Regional Landfill Renewable Energy Facility, a landfill gas to energy project.
Commissioner Echols noted the partnership between the Commission, Georgia Power and Republic Services to complete the project which will produce 5 Megawatts of energy by using methane gas from the landfill to produce electricity.
COMMISSION STAFF TAKES PART IN
VOLUNTEER EVENT DURING NARUC
Tara Surratt, Natural Gas Unit, participated in the Just Energy Hands on Nashville Project during the 2016 Summer NARUC Meetings in Nashville, Tennessee. The Just Energy Foundation also donated $2,500 to Hands on Nashville.
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WELCOME NEW HIRES!
Ben Deitchman joined the Electric Unit on June 16th. He recently moved back to Atlanta after three years at the Rochester Institute of Technology and currently lives in the heart of downtown. He previously lived in Atlanta while earning his Ph.D. in Public Policy at Georgia Tech.
Janessa Liu joined the Natural Gas unit on July 1st. She is originally from Sichuan, China, the hometown of the Panda. She earned her BBA from California State University, and a MS degree in Finance from Georgia State University. In her spare time, she enjoys surfing internet, reading news, and shopping.
James A. Belton IV joined the Electric Unit on June 1st. He graduated from the University of Missouri in Mechanical Engineering. He brings a wealth of experience as an engineer for Kansas City Power & Light and as a Field Service Engineer at Cleaver Brooks. He is looking forward to working to set reasonable rates for consumers and helping to provide more reliable and efficient generation.
INTEGRATED RESOURCE PLAN (continued from page 1)
The amount recorded for these activities will not exceed $99 million through the second quarter of 2019.
The Stewart County site will continue to be recorded in Property Held for Future Use for ratemaking purposes.
Georgia Power will file a status report in its 2019 IRP.
If the Commission determines in 2019 that any efforts to obtain a COL should be suspended or terminated, any cost incurred to that point in time will be deferred for recovery in a future rate case.
The Company will file annual reports to the Commission updating the status of the investigation and development of the COL.
"We've seen what happens when regulators do not make the tough decisions and sit on their hands. We see what happens when decisions are deferred, infrastructure crumbles and power is curtailed. We can debate the wisdom of the coal exodus but it must be replaced with something that is cost effective," said Commissioner Wise. "Nuclear power remains among the lowest cost energy source, with a 92 percent reliability rating and it is carbon free. Nuclear deployment takes time and I refuse to sit on my hands," added Wise.
Commissioner Lauren "Bubba" McDonald voted no to both proposals. He stated that he is concerned that this decision comes before the full cost is known of the construction of Plant Vogtle 3 & 4. McDonald said if the Company has decided that studying the potential for a new nuclear site is worthwhile then the stockholders should be willing to assume the risk and the cost. He was also concerned that the issue of withdrawing water from the Chattahoochee River is mired in a court battle between Georgia, Florida and Alabama, and that there is currently no federal repository to store the nuclear waste. The latest Commission press releases can be found at www.psc.state.ga.us.
COMMISSION HOLDS HEARINGS ON PLANT VOGTLE
CONSTRUCTION MONITORING REPORT
The Commission held hearings in the 14th Vogtle Construction Monitoring Report on June 7, 2016 and June 30, 2016 in Docket 29849. Georgia Power Company is asking the Commission to verify and approve $160 million in expenditures on the Vogtle Construction Project for the six-month period ending December 31, 2015. The Commission will issue a decision on August 16, 2016
During the June 7 hearing, the Company witnesses presented their direct testimony asking the Commission to verify those expenses. During the June 30 hearing staff witnesses Steve Roetger and Bill Jacobs testified that the Commission should verify the ex- Liz Coyle of Georgia Watch questions staff penditures but also noted that meeting witnesses Bill Jacobs and Steve Roetger. the projected completion dates will be difficult.
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AND ONE MORE STAFF ADDITION...
Jack Hewitt is the latest employee to join us at the commission. His first day was August 1st. He is in Michelle Thebert's Pipeline Safety unit and is a Pipeline Safety Inspector.
ANNOUNCEMENTS
Congratulations to Kylan Jones, son of Shemetha Jones, Internal Consultants Unit, for graduating May 13th from Discovery Point Pre-K.
Kelli Cole, staff attorney is celebrating her new status as grandmother! Her son Paul Leaf and mother, Betty Spears welcomed Scarlett Isabelle Leaf on May 17, 2016.
FAREWELL!
Katherine Leigey has left the commission as of July 31, 2016. Kate joined Internal Consultants Unit as an analyst and most recently worked on the Plant Vogtle project.
THE PSC PULSE won! Onterio Johnson, GUFPA field investigator won The Name That Newsletter contest and received a $50 American Express gift card for his winning title. Thanks to all the staff for submitting many clever names.
Next Issue:
November 2016
Don't forget to send us news as you get it!
Our heartfelt condolences go out to Beverly Franks, Assistant to Chair Commissioner Eaton and her family as they mourn the loss of her step -father, Robert "Bob" L. Lewis. He passed away on July 12, 2016.
Lauren McDonald III, a partner in McDonald and Son Funeral Home and son of Commissioner McDonald was re-elected as Forsyth County coroner and has served in this post for the last 12 years. He won with 72% of the vote.
Former Commissioner Ford Belmont Spinks, Sr. of Tifton passed away July 27, 2016. Jimmy Carter appointed him as a Public Service Commissioner in 1971, a post he held until 1989. Commissioner Doug Everett who served with Spinks on the Board of Directors for the Georgia Agrirama, recalled that "Ford Spinks was a true Southern gentleman and a devoted public servant."
Longtime Commission employee Robert (Bob) R. Ginn passed away in Decatur on July 19, 2016. Bob retired from the Commission in 2007 after 34 years of service. He served as a Commission hearing officer during his time here. Bob's funeral was held on July 22 at A.S. Turner & Sons in Decatur.
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COMMISSION CALENDAR
August 2016 2-- Administrative Session 11-- Committees 16 -- Administrative Session
September 2016 1 -- Committees 5-- Holiday 6-- Administrative Session 15-- Committees 20-- Administrative Session
Hearing--AGL Company Capacity Supply Plan Liberty Utilities Gas Supply Plan
29-- Committees Special Administrative Session
STATE HOLIDAYS COMING UP!
September 5th October 10th November 11th November 24th November 25th
Labor Day Columbus Day Veterans Day Thanksgiving Day State Holiday
Georgia Public Service Commission 244 Washington Street Atlanta, Georgia 30334 Phone: 404-651-4501 www.psc.state.ga.us
The Public Information Office publishes The PSC Pulse for the Georgia Public Service Commission. Information for The PSC Pulse should be sent to the attention of Bill Edge, Public Information Officer or Lynn Page, Executive Assistant.
December 26th December 27th
Christmas Day Washington's Birthday
COMMISSIONERS Chuck Eaton, Chairman Lauren "Bubba" McDonald, Jr., Vice Chair Tim G. Echols Doug Everett Stan Wise
Executive Director: Deborah Flannagan Executive Secretary: Reece McAlister
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