GPSC news [Winter 2016]

Georgia Public Service Commission

GPSC News Winter

Winter

2016

2016

Volume 14 Issue 1
*Rate cut of $5 a month *Effective January 1, 2016 *Company makes no profit on fuel costs *Approves Procedural and Scheduling Order in Southern Company Acquisition of AGL Resources *Approves TRS provider
In this issue
Commission Reduces Fuel 2 Rate for Georgia Power Customers
Commission Fines AGLC 3 $250,000 for Pipeline Violations
Commission Approves Natu- 4 ral Gas Line Extension in Gilmer County

McDonald Supports Suit 5

Against EPA Clean Power

Rule

Echols and Everett Visit

5

Plant Vogtle

Commission Approves

6

Report on Value of Renewa-

bles

Commission Approves Cut in Fuel Rate for Georgia Power Customers

T he Commission December 15 unani-

mously approved a de-

crease in the Fuel Cost Re-

covery (FCR) rate for Geor-

gia Power Company cus-

tomers that will save the

average residential custom-

er using 1,000 kilowatt

hours about $5.00 a month

for a total reduction of 14

percent on their monthly

bill. The Commission ap- "We are pleased we can without a subsidy, pro-

proved an agreement be- lower Georgia Power tecting our gas pipe-

tween the Company and customers' rates and lines, and providing

the Commission Public Ad- give consumers a price needed services for the

vocacy Interest Staff that break, especially at this hearing impaired--all

increased the reduction time of year," said important duties of the

from the Company's origi- Commission Chair- Georgia PSC," said

nal filing on September 18, man Chuck Eaton.

Commissioner

Tim

2015. The Company's filing "Keeping rates low, Echols. "It is my honor

indicates the falling price of making our military ba- to serve my fellow citi-

natural gas is a key reason ses more resilient, zens in this capacity."

for the decrease.

growing solar in Georgia

(Continued on page 2)

Commission Hears Testimony in Vogtle Construction Monitoring Project

Employee News

T 7

he Commission's Pub-

lic Interest Advocacy

Staff and other parties pre-

Commission Calendar

8 sented their testimony dur-

ing the December 15, 2016

hearing on the Thirteenth

Next

Vogtle Construction Monitoring report.

Issue

Panelists Bill Jacobs, Steve Roetger and Phil Hayet de-

Bill Jacobs and Steve

Audience follows

April 2016

livered their testimony summaries and then answered questions from a half dozen intervenors dur-

Roetger on the witness stand
ing the day long hearing.

proceedings
The Commission is re-
(Continued on page 2)

PAGE 2

GPSC NEWS

VOLUME 14 ISSUE 1

Commission Reduces Fuel Rate

(Continued from page 1)

Resources, the parent company

Under state law Georgia Power's of Atlanta Gas Light Company

cost of fuel used for electric (AGLC). The Commission has

generation is passed along to regulatory authority over AGLC,

customers on a dollar for dollar which is a wholly owned subsidi-

basis and the Company is not ary of AGL Resources.

allowed to make a profit on the The PSO also outlines the issues

cost of fuel. The Docket Number that the parties should consider

in this proceeding is 39638.

as they file testimony and briefs.

In other action, the Commission Those issues include but are not

approved a Procedural and limited to:

Scheduling Order (PSO) in Whether the merger is in the

Docket Number 39971 that pro- public interest.

vides a timetable for filing testi- Whether the merger will re-

mony and briefs and conducting hearings in the proposed South-

sult in synergies, and if so, what is the appropriate allocation of

ern Company acquisition of AGL any savings realized by such

If you have a story for the next GPSC News, please send to Bill Edge, bille@psc.state.ga.us. Next issue deadline is January 15, 2016.

synergies? Whether the merger of AGL Resources with Southern Company will adversely affect Georgia

ratepayers and/or competition among gas marketers, competition in the provision of electricity to consumers or commercial end users, competition in the transportation of gas, increase the costs of transmission of electricity, competition in the provision of electricity and gas to consumers or commercial end users, or among electric generation sources. The schedule of review and hearings is as follows:

December 17, 2015

Joint May 17, 2016 Briefs due a five year period beginning

Petitioners file direct testimony from all parties

March 15, 2016 Commission May 24, 2016

The Com-

hears direct testimony of parties mission issues its decision

March 30, 2016 Staff
other parties file testimony

and

For more complete information, refer to the filings on line in

Docket Number 39971 available

April 14, 2016 Commission on the Commission web site at

hears testimony of Staff and oth- www.psc.state.ga.us.

er parties

The Commission also approved

April 22, 2016 Joint peti- Hamilton Relay, Inc. of Aurora,

April 1 2016. The Commission by state law manages and administers the TRS which provides telecommunications services for the hearing impaired, deaf, hard of hearing, deafblind or those who have difficulty speaking. Hamilton has been the service provider for the Georgia Relay since 2010.

tioners file rebuttal testimony

Nebraska to continue to operate

May 3, 2016

Commission the Telecommunications Relay

holds hearing on rebuttal testi- Service (TRS) known as Georgia

mony

Relay in the state of Georgia for

Plant Vogtle hearing

2016.

(Continued from page 1)

Plant Vogtle is co-owned by

viewing Georgia Power's request

Georgia Power Company, Ogle-

to approve $148 million in ex-

thorpe Power, Municipal Electric

penditures on the Plant Vogtle

Authority of Georgia and City of

Construction Project between

Dalton Utilities. Georgia Power is

January 1, 2015 and June 30,

the majority owner of Plant

2015.

Vogtle at 45.7%. Currently,

Commissioners heard Georgia

Plant Vogtle Unit 3 is scheduled

Power's direct testimony during a hearing November 3, 2015.

issue a decision in Docket Number 29849 at the regular Admin-

to go into commercial operation in June 2019 with Unit 4 enter-

The Commission is scheduled to istrative Session on February 18, ing commercial operation a year

later in June 2020.

VOLUME 14 ISSUE 1

GPSC NEWS

PAGE 3

Commission Hands Down $250,000 Civil Penalty Against Atlanta Gas Light Company on Eastside Pipeline

T he Commission October 6 unanimously approved a
$250,000 civil penalty against
the Atlanta Gas Light Company
(AGLC) that will settle issues
surrounding the construction and
deployment of the Eastside Pipe-
line while protecting ratepayers
from future costs involving defi-
ciencies in the pipeline. The
Commission approved a negoti-
ated settlement that means
AGLC ratepayers will not be lia- $250,000 into the state treasury. ble for the costs to repair and In addition, the settlement closes replace those parts of the out the entire AGLC Pipeline ReEastside Pipeline which were placement Program (PRP) and will found to have corrosion deficien- settle all costs involved in the cies and other problems. AGLC PRP, a nationally recognized prohas admitted no wrongdoing but gram that since 1998 has rethe Company will pay the placed over 2,700 miles of bare

steel and cast iron pipe on the AGLC system. The Eastside Pipeline, a 24-inch natural gas distribution pipeline that runs approximately 27 miles from Riverdale to Chamblee on the east side of metro Atlanta, is the final segment of the PRP to be completed, at a total cost of $211 million. This settlement is contained in Docket Numbers 8516, 37024, 18638 and 29950. Under the agreement, AGLC agreed to reduce its PPR true up request from the PRP surcharge from $178 million to $144 million. The Company will collect $144 million through the PRP surcharge while an additional $30 million would be collected

through future rate base adjust- sion adopted a phased in ap-

ments beginning no sooner than proach which will add small in-

March 31, 2017. By decreasing creases in the PRP surcharge to

the PRP under-recovery to $144 customers' bills over a three year

million, the ratepayers will save period beginning in October

an estimated $49 million through 2015.The first increase will be

December 2025. Furthermore, $.82 beginning October 2015,

the stipulation ensures that rate- $.81 in October 2016 and $.81 in

payers will not pay twice for the October 2017 for a total of $2.44

installation of the Eastside Pipe- per customers.

line and resolves the Commis- AGLC will perform an additional

sion's Prudency Audit financial inspection of the pipeline within

issues in Docket 38664.

the next two years and will bear

Upon a motion from Commis- any additional repair or replace-

sioner Tim Echols, the Commis-

ment costs and will not seek to recover those costs from ratepayers. This provision of the settlement was added at the urging of Commissioner Tim Echols. "This settlement strikes the right balance and has many consumer protections contained within it," said Echols. "At the same time, the settlement does not impede AGL's litigation position with contractors." "I am pleased that the ratepayers are not put at risk for the

costs of replacing and repairing the corrosion on the Eastside Pipeline," said Commissioner Stan Wise. Wise noted that Georgia's PRP has a been a nationwide model for other states dealing with aging and corroded pipeline distribution systems. "This Commission takes its responsibility seriously and does not kick the can down the road when it comes to issues of safety and reliability," said Vice-

chairman Lauren "Bubba"

Cathodic Protection

McDonald.

Pipeline integrity monitoring

The entire PRP surcharge will

River crossing inspections

end the sooner of December 1, Thermit welding

2025 or when the under recov- Pipe loading diagrams

ery is fully collected.

Background

Under the settlement AGL also The Commission approved the

agrees to implement the follow- PRP in 1998 as one of the na-

ing enhancements to its operat- tion's first state-wide compre-

ing procedures to mitigate any hensive programs to replace un-

reoccurrences in future projects: protected bare steel and cast

Trenching, bedding and back-

(Continued on page 4)

fill

PAGE 4

GPSC NEWS

VOLUME 14 ISSUE 1

Commission Approves Atlanta Gas Light Company's Natural Gas Line Extension in Gilmer County

T he Commission October 20, 2015 unanimously ap-

"With colder winters and higher propane prices in recent years,

proved the first phase of a six-

energy is among the highest in-

phase line extension project by

put costs for a poultry farm oper-

Atlanta Gas Light Company

ation," said Mark Holden, an El-

(AGLC). Phase one will serve

lijay poultry farmer and President

10 of the 50 poultry farms in

of the Southern Farmers Associa-

Gilmer County. When all phas-

tion. The Association has been an

es of this project are complete,

advocate, along with the Gilmer

natural gas service will be

County Farm Bureau, for extend-

available to all 50 farms, as

ing natural gas service to 50 area

well as other businesses and homes. The need for this line extension project was identified earlier this year when AGLC and Commission representatives met with poultry farmers and the Gilmer County Farm Bureau in

Ellijay. To serve these 10 poultry farms, approximately 64,000 feet of pipe will be placed along Maddox Drive, Yukon Road, and Clear Creek Road and tied-in at Progress Road. Two regulator stations will be built to boost pressure in the area.

poultry farms. "The colder winters not only mean more expense in keeping the heaters running, but we have also felt the pinch of limited propane supplies in recent years," Holden said. "We are grateful that members of the Public Ser-

vice Commission, Senator Steve

more competitive," said

Gooch and Speaker David Ral-

Commissioner Stan

ston recognize the impact that

Wise, who sponsored the

poultry farmers have on our

motion in support of the

economy and the importance of processors and affiliated indus- measure.

having a stable energy source tries, poultry's annual contribu- "Any time we can take action

with pricing expected to remain tion to the Georgia economy is that will help boost Georgia's

comparatively low for the fore- $25 billion dollars and approxi- economy, we should do it," said

seeable future."

mately 100,000 direct and indi- Commissioner Tim Echols.

Poultry remains the largest seg- rect jobs," said Giles.

"This Gilmer County pipeline ex-

ment of Georgia agriculture, ac- "Access to reliable and affordable tension will bring cheap natural

cording to Mike Giles, Presi- natural gas will help reduce pro- gas to our hard-working poultry

dent of the Georgia Poultry Fed- duction costs, increase profitabil- growers."

eration. "Between the farms, ity and make Georgia's poultry Speaker of the House David

Ralston (R-Blue Ridge), who

represents Gilmer County, em-

phasized the significant, long-

term impact of this project.

"This line will be a huge benefit

to the poultry industry," said

Speaker Ralston. "It will mean

jobs in Gilmer County and stim-

ulate our economy--benefitting

residents for generations to

come. I thank all the stake-

holders involved, particularly Atlanta Gas Light and the mem-

mission, for their support of this important extension."

bers of the Public Service Com-

Commission Hands Down Fine for Eastside
Pipeline
(Continued from page 3)
iron pipe in a natural gas distribution system. Georgia's program has become a model for other states struggling with aging and corroded natural gas distribution pipes. The PRP has been funded with a monthly sur-

VOLUME 14 ISSUE 1

GPSC NEWS

PAGE 5

McDonald Supports Suit Against EPA Clean Power Rule

C ommissioner Lauren electricity costs for all hardworking

"Bubba" McDonald is-

Georgians."

sued the following statement

Commis-

McDonald Named to NARUC Task Force

regarding the lawsuits by the State of Georgia and the

N s i o n e r
McDonald is

ational Association of Regulatory Utility Commission-

Georgia Power Company

c u r r e n t l y ers (NARUC) President Travis

challenging the Environmen-

serving his Kavulla of Montana has appoint-

tal Protection Agency Clean

third term ed Commissioner McDonald to

Power Plan rule:

at the PSC the NARUC Task Force on Trans-

"I fully support the state of

having been portation.

Georgia and Georgia Power's

r e - e l e c t e d "Your service on this Task Force

efforts in seeking a motion to

in Novem- is important to the cause of

overturn the EPA's Clean

ber 2014 strengthening effective public

Power Plan and protect cus-

for another regulation," said Kavulla in a let-

tomers from the potentially

s i x - y e a r ter to Commissioner McDonald.

severe impacts it would have term. He is the Commission Vice-

on the reliability and afforda- chairman and serves on the Electric

bility of electricity in our Committee and Nuclear Waste Sub-

state. If this rule is not over- committee of the National Associa-

turned, it will eliminate jobs tion of Regulatory Utility Commis-

and dramatically increase sioners.

Commissioners Check on Plant Vogtle Progress

C ommissioners

at the Nuclear Plant Vogtle con- ber 30, 2015. The $14 plus bil-

Tim Echols and Doug Ev- struction site near Waynesboro, lion project is now more than 26

erett checked out the progress Georgia during a visit on Septem- per cent complete.

Ted Turner Hosts Appreciation Dinner for Commissioners

M edia mogul, environmental activist and Atlanta icon Ted Turner hosted Commissioners on October 15, 2015 at his Ted's Montana Grill to personally thank Commission for their support of solar energy. Turner said he and the Turner Foundation appreciated the Commission's leadership role in

making Georgia a leader in solar energy. Mike Finley, President of the Turner Foundation, also attended the lunch.
From left to right: Commissioner Everett, Ted Turner, Mr. Turner's guest, Commissioner Wise, Mike Finley, Commissioner McDonald, and Commissioner Eaton

PAGE 6

GPSC NEWS

VOLUME 14 ISSUE 1

Commission Approves "Value of Renewables" Report Following Workshop

T he Commission January 19 approved the staff re-

port on the value of Renewa-

bles and Distributed Genera-

tion following the workshop

held on 20-21 October, 2015.

The workshop attracted more

than 100 participants from

Commission staff, utility rep-

resentatives, solar energy ad-

vocates and consumer advo-

cate organizations.

Participants take part in the Value of Renewables Workshop at the

Participants filed comments in

Capitol Education Center

Docket number 39732 in re- newables and distributed genera- 29, 2016. The Commission will hold

sponse to the Commission's tion in the next Georgia Power hearings and issue a decision in the

Notice of Inquiry (NOI).

Integrated Resource Plan, which IRP late this summer.

The staff report calls for the Georgia Power filed on January

inclusion of the value of re-

Farewell

T o: Merline Brewer who retired February 1, 2016 after 14 years service with the

Commission. Her friends, family and coworkers held a retirement celebration in her honor on January 28, 2016.

Congratulations
To Bill Edge, Public Information Officer, who retired on December 1, 2015 from the U.S. Navy Reserve with over 30 years of service. During his career he served in Iraq and Afghanistan.

Commission Celebrates Faithful Service and Holiday Luncheon

T he Commission held its annual Faithful Service Awards

and Holiday Luncheon on De-

cember 17, 2015. The Commis-

sion presented five, 10, 15, 20

and 25 year awards to 12 em-

ployees.

Five Years:

Commissioner Tim Echols, Mikal

Small

Ten Years:

Beverly Franks, Tom Newsome,

Janice Sears.

Fifteen Years:

Lynn Buffington, Patrick Rein-
(Continued on page 7)

VOLUME 14 ISSUE 4

GPSC NEWS

PAGE 7

Employee News

Farewell

C onsumer Affairs Manager James Gibson retired November 30, 2015 after 15 years with the Commission. James' colleagues, friends and family gathered at Six Feet Under restaurant in Grant Park on November 17 to celebrate his retirement. James plans to spend more

James Gibson delivers his farewell address
time with his wife and family.

Congratulations
T o Claudette Willingham on her appointment as Consumer Affairs Manager at the Commission. Claudette has been with the Commission since 1999 serving in the Consumer Affairs Section.

Sympathy

Farewell

T T T o Monique Andrews on the passing of her father,

o Beverly Franks on the passing of her father, January

o Joyce Lewis who retired December 31, 2015 after

Robert Pringle, on November 1, 2016. The family held a private 17 years with the Commission.

16, 2015 in New York City. The service.

Joyce started at the Commis-

funeral was held after Thanks- Beverly expressed her appreciation sion as a customer service rep-

g i v i n g . for the thoughts and concerns of resentative, eventually becom-

Mon i qu e's her colleagues.

ing Assistant Manager of Con-

father is "Thank you for the beautiful card, sumer Affairs.

p i c t u r e d contribution and kind words of con-

below in a dolence. It was so thoughtful of

r e c e n t you to think of me during my time

family

of sadness "

photo-

graph.

Faithful Service and Holiday

Luncheon

(Continued from page 6)
hardt, Pat Welcome Twenty Years: Dona Cucich Commissioner Stan Wise Twenty-five years: Leon Bowles, Alan Towe. Commissioners Eaton, Echols, Everett and Wise all delivered remarks before everyone enjoyed the sumptuous potluck dinner. Commission colleagues contributed home-

made and store-bought goodies Shelley McDonald and including Commissioner Wise's Janice Everett also joined famous fried turkey. Monique An- Commission staff in the service drews led the group in mental and luncheon.
games to test our trivia knowledge.

PAGE 8

GPSC NEWS

Georgia State Holidays for 2016

VOLUME 14 ISSUE 1
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

February 2016 2-Administrative Session 11-Committee 16-Administrative Session 25-Committees March 2016 1-Administrative Session 10-Committees 15-Administrative Session 31-Committees April2016 5-Administrative Session 14-Committees

Commission Calendar

19-Administrative Session 25-Holiday 28-Committees May 2016 3-Administrative Session 12-Committees 17-Administrative Session 30-Holiday June 2016 2-Committees 7-Administrative Session

NARUC Winter Meeting 2016 February 14-17, 2016 Washington, D.C.
Summer Meeting 2016 24-27 July, 2016 Nashville, Tennessee
Annual Meeting 2016 November , 2016 La Quinta, California

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