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