GA. hOt:> .PI p~ GPSC 4/J GPSC News Making Business and Safety Decisions Affecting Tomorrow Volume 4 Issue I Summer 2004 *Georgia Power is seeking a $328 million annual increase Georgia Power Files for Rate Hike *Average residential customer would see 7% increase *Hearings set for September *Commission decision set for December 21, 2004 G eorgia Power Company filed its ex- rates in 1998 and pected rate case on July 1 2001, saving Georgia seeking a 7 percent in- Power customers In this issue crease in base rates or an more than $1.2 bil- State Ends Budget Year with Revenue Increase 2 annual increase of more than $328 million. The Commission will begin the lion. The first round of hearings will be held first of three sets of hear- starting at 10 a.m. Former Governor Busbee 2 ings on September 20 on September 20, dies Wise Testifies on Capitol Hill Commission Approves Mcintosh Purchase Commission Approves New Gas Marketer Commission Lowers TRS Surcharge Rates Scorecard Workshop when the Company will fees and lower rates on present its case. If ap- customer deposits from 3 proved, the average resi- 7% to 3%. The company dential customer using also wants to set up an 1,000 kilowatt hours per Environmental Reserve 3 month would see his or Fund, lower the storm her monthly bill increase Damage Reserve Fund 4 by $5.25. The Company and set the cost of com- last filed for a rate in- man equity at 12.5%. crease from the Commis- The Commission has not 4 sion in 2001. approved an increase in In its request, the Com- the Company's base rates pany is also seeking re- since 1991. In fact, the 5 ductions or increases in a Commission lowered host of customer service 2004 and continuing through September 23. Staff and intervenors will file their direct testimony by October 14. Hearings will resume on October 25 and continue through October 27. The Company will file its rebuttal testimony by November 8 and rebuttal hearings will get underway on November 18 (Continued on page 2) Telecom 5 Commission Approves Utilities' AGL Gos Supply Hearings 6 Integrated Resource Plans ITS Hearing Awards Day Employee News Commission Calendar State Holidays 6 The Commission July 9 approved the 2004 7 Integrated Resource Plans (IRPs) filed by Georgia 7 Power Company and Savannah Electric. 8 As required by law since 1992, the IRPs consider the utilities' long-range 8 energy and demand forecast and establish the plans for meeting the modifications, including: state's electric power 1. Establish an inde- needs for the next 20 pendent evaluator to re- years. view all bids for Pur- The Commission adopted chase Power Agreements the utilities' proposed to ensure such bids are IRPs, which recom- fair and open and com- mended no additional ply with affiliate transac- new power generation tion guidelines. resources until 2009, 2. Establish energy effi- with several significant (Continued on page 2) PAGEl GPSC NEWS State Ends Budget Year With Revenue Increase VOLUME 4 ISSUE I A fter two years of revenue decreases, the State of Georgia ended the 2004 Fiscal in revenue collections would Year with a 7.1 percent increase have been approximately 3.3% in revenues over Fiscal Year over FY03. 2004. For the month of June The Commission, like all state 2004 (FY04), revenue collec- operating in a restrictive budget- agencies, took its share of tions totaled $1,279,348,000 ary environment." budget cuts in the 2005 budget compared to $1,259,355,000 for Several law changes, enforce- which started July 1. State em- June 2003 (FY03), an increase ment initiatives, and other one ployees will see a two percent of $19,993,000 or 1.6%. time events occurred in FY04 re- pay raise in their checks begin- Governor Sonny Perdue said1 suiting in new or additional reve- ning January 1, 2005. "Thanks to our conservative nue for the state of approxi- State lawmakers finished a management of the state mately $471 million. Excluding special session on May 7 by budget, we have met the reve- these new and additional revenue passing the only piece of legis- nue estimate for Fiscal Year sources from FY04, the increase tation considered, the funding 2004. Even as we experience r---~-----::---.----:---=:::-=-.:::-1 of the Indigent Defense Prosome positive signs of economic f you have a story for the next GPSC gram. growth, it is important that we News, please send to Bill Edge, remain fiscally responsible with bille@psc.state.ga.us. Next issue state resources as we are still deadline is October 15, 2004. Georgia Power Files Rate Hike (Continuedfrom page I) and 19. Proposed orders and briefs are due to the Commission by December 13. The Commission is scheduled to make a decision on Georgia Power's request at its Regular Administrative Session on December 21, 2004. Former Governor Busbee Dies F ormer Georgia Gov. George Busbee, a Democrat who campaigned as ' ' a workhorse, not a showhorse," died in Savannah July 16 of an apparent heart attack. He was 76. He was governor from 1975 to 19831 the first in state history to serve two consecutive four-year terms. Considered one of the most popular governors in ..........,.,..,.. his- tory, Bus- b e e aunched the state's first kindergarten program n d tee red Georgia through two recessions. Busbee's public funeral was held in Atlanta on July 20. (Continuedfrom page I) for the increased funding ciency campaigns to educate con- amount. Savannah Electric is cogeneration, and renewable sumers on energy efficiency working toward doing the same energy technologies. measures. Georgia Power will for its ratepayers. The Working Group would be fund its energy efficiency cam- required to make its recom- paign at $2,000,000. Savannah 4. Establish a Working Group of mendations to the Commis- Electric will fund its campaign at interested parties to recommend sion by February 15, 2005. $200,000. to the Commission a mix of de- 3. Increase funding for the Low- Income Weatherization Program for Georgia Power by $3001 000 per year and Savannah Electric by $30,000 per year. Georgia mand side measures (DSMs) that the state could adopt. DSMs are programs for the reduction of electricity requirements, such as conservation, load management, Power, not its ratepayers, will pay VOLUME 4 ISSUE I GPSC NEWS PAGE 3 Commissioner Wise Testifies on VOIP Before U.S. Senate Committee C ommissioner Stan Wise, President of the National vices just as if they were traditional circuit-switched service from Ma Bell." Association of Regulatory Util- If industry predictions are cor- ity Commissioners (NARUC) rect, VoiP-based services will testified June 16 before the supplant current phone service Senate Commerce, Science in many households. Customer and Transportation Commit- disputes over service and com- tee regarding S. 2281, Sena- petitor disputes with facilities tor Sununu's "VOIP Regula- owners and over interconnec- tory Freedom Act." Commis- tion policy will continue to re- sioner Wise said: quire resolution. "NARUC's resolutions on Wise said, "State commissions Voice-over Internet Protocol looking to the technology itself, are particularly well-suited to emphasize that regulatory policymakers should look at the this watch dog and referee role treatment should follow from salient features of a service. [A] because they are in the local the functional nature of a ser- 'functional' approach does not communities, staffed to be re- vice, not the way it works un- mean regulating new VOIP ser- sponsive and have unique ex- der the hood. Rather than pertise in the telecom business. versal service, which are inex- in every one of our States can Depriving State commissions of tricably linked to VOIP policy: realize the benefits of new this role would fragment the "By seeking only to extricate a technologies like VOIP in the response effort and confuse new specific technology from all context of a telecommunica- consumers as they were shuf- forms of regulation under the tions market that continues to fled from one agency to an- systems that support the uni- live up to the demands that we other based on the technology versal availability of the tele- place on it. Like federal policy- they were using. Distant federal com network, this bill has the makers, State commissions are agencies would be hard- feel of seeking to abandon a investing substantial effort to pressed to handle the load." sinking ship - even though understand the unique business Commissioner Wise also most VOIP services depend on models, services and consumer pointed out that Sununu's bill a healthy PSTN," he said. opportunities that are emerg- does not adequately address "NARUC members are commit- ing." other issues, such as inter- ted to making sure consumers carrier compensation and uni- Commission Approves Utilities' Purchase of Mcintosh Units T he Commission May 18 unanimously approved the request of Georgia Power and Savannah Electric to purchase the Mcintosh Combined Cycle Units 10 and 11 from the Southern Power Company. Commissioners made it clear that the purchase must follow the Commission's affiliate transaction guidelines which require sian will determine in a later that such transactions be proceeding how the purchase recorded at the lower of will be included in the utilities' their cost to the original rate base. owner or the facility's fair Georgia Power and Savannah market value. Commis- Electric had requested direction sioner David Burgess noted from the Commission to purthis process will "inure the chase the two natural gas powgreatest benefit to Georgia ered units from an unregulated ratepayers." The Commis- affiliate, Southern Power Com- (Continued on page 4) PAGE4 GPSC NEWS VOLUME 4 ISSUE I Commission Approves Vectren Source As New Natural Gas Marketer T he Commission June 17 said, "The Commission has unanimously approved the worked to promote a robust application of Vectren Source competitive natural gas mar(Vectren) for a natural gas cer- ketplace that will benefit Geor- VECTREN tificate of authority. Vectren gia consumers. I believe the Source is owned by Vectren, entry of a credible and capable Source Inc., an energy and applied natural gas marketer such as technology holding company Vectren illustrates that the headquartered in Evansville, Georgia market continues to Indiana. Vectren's regulated provide meaningful choices to With the approval of VeCtren Re- energy delivery subsidiaries the state's consumers." tail's certificate today, there are provide gas and/or electricity Commissioner Stan Wise now ten certificated natural gas to nearly one million customers adds, "Anytime we have a marketers serving approximately in adjoining service territories quality company such as Vee- 1.5 million natural gas consumers in that cover nearly two-thirds of tren come to Georgia to pro- the Atlanta Gas light Company dis- Indiana and west central Ohio. vide quality service to Georgia tribution areas. Following the Commission deci- consumers, it is a good day for Vectren says it will begin providing sion, Chairman Doug Everett our state." service in Mid-August. Commission Lowers Surcharge for Telecommunications Relay Service T he Commission June 1 unanimously approved a decrease in the monthly surcharge used to fund the Telecommunications Relay Service (TRS) and the Telecommunications Relay Equipment Distribution Program (TEDP). The surcharge will be reduced to $0.10 per month per tele- phone access line, a decrease of $0.05 per month per access line, effective August 1, 2004 or the first billing cycle after that date. This surcharge allows the Commission to meet its statutory obligation to provide access for hearing and speech impaired persons to the public switched telecommunications network via the Georgia Relay. The surcharge also allows the Commission to fund the Telecommunications Relay Equipment Distribution Program which provides, based on financial need, specialized telecommunications equipment to Georgians with physical im- pairments, such as hearing and speech, that prevents them from using ordinary telecommunications equipment. Callers can access the Georgia Relay by dialing 7-1-1. More information on Georgia Relay can be found at the website: http://www.georgiarelay.org/ and on the TEDP at the Georgia Council for the Hearing Impaired website: http://www.gachi.org/ Mcintosh Plants (Continuedfrom page 3) pany. The Southern Company owns all three companies: Georgia Power, Savannah Electric and Southern Power Company. In De- cember 2002 the Commission approved a 15-year Purchased Power Agreement (PPA) allowing Georgia Power and Savannah Electric to buy electricity from Southern Power Company's Mcintosh Combined Cycle Units 10 and 11. VOLUME 4 ISSUE I GPSC NEWS Telecom PAGES I t will be a busy fall for the tion and Unbundling of Bell- could still be inundated with proCommission's Telecommu- South's Network on September ceedings concerning access to nications Section as they get 1-2, 2004. switching and transport beginning ready to tackle a wide range In the FCC case, the Bush Ad- the date the Court's mandate is of issues, complicated by the ministration declined to seek a effective.'/ federal court's rejection of the stay of the district Court's order, Federal Communications Com- which expired on June 15. mission rules on state regula- According to Commissioner tion of telecommunications Stan Wise and NARUC, "A Su- carriers. preme Court refusal to grant There will be hearings in these requests will leave State Docket Number 16772-U Bell- regulators with a messy job of South Petition for a Declara- arbitrating a host of impasses tory Ruling Regarding Transit over wholesale rates that might Traffic on August 2-3 and in arise between the Bells and their Docket Number 14361-U Ge- rival with little federal guidance neric Proceeding to Review on how best to proceed. Even if Cost Studies, Methodologies, the FCC is able to generate an Pricing Policies and Cost- interim proposal for the certiorari Based Rates for Interconnec- process in near term, States Consumer Affairs Marketer Scorecard Workshop "For the Common Good" By Bernard Cameron parison of marketers' perform- C ustomers, marketers and ance in the categories of billing, Consumer Affairs' staff service and marketing prac- agree that the current "Natural tices/fraud. Gas Marketers Scorecard" needs On May 10, 2004, Consumer Af- to be revamped in order to pro- fairs hosted a workshop that in- vide more useful information. cluded representatives from Presently, the scorecard reflects natural gas marketers, Atlanta raw data, which doesn't provide Gas Light Company, social ser- consumers with a "true" com- vices agencies, Consumers' Uti!- ity Counsel, and Commission Staff. The workshop was facilitated by Dave Wirick and David Hansen of Babbage and Simmel. There were about 35 persons in attendance. Utilities Director Tom Bond opened the workshop by welcoming our guests and acknowledging the presence of executive staff. Commissioner David Burgess was present during a portion of the discussion. The workshop was divided into five parts: Storytelling, Identification of Issues and Interests, Brainstorming Solution Sets, Development of Consensus and Identification of Next Steps. The storytelling part of the workshop gave participants the opportunity to express their views and opinions about what the scorecard represented/ the per- ests was the part of the work- ceptions that others draw from shop that prompted a lively dis- the scorecard, how the scorecard cussion. The major issue raised is viewed by company officials, was that the ranking for each what prompted the "birth" of the category on the scorecard did scorecard, and any other infor- not reflect a ratio of any sort. mation the speaker wanted to Therefore, certain conclusions share. Representatives from con- that were being drawn by both sumer advocacy groups, the mar- consumers and marketers' keters' community and the Com- management were cause for mission were able to "tell their concern. Most marketers were story." willing to provide a "number" Identification of Issues and Inter- (Continuedonpage6) PAGE6 GPSC NEWS Atlanta Gas Light Gas Supply Hearings VOLUME 4 ISSUE I T he Commission will hold hearings on September 8 and 9, 2004 on Atlanta Gas Light Company's 2004-2007 Capacity Supply Plan. The purpose of the plan is to detail AGLC's selection of available interstate capacity assets for the purpose of making gas available to certificated marketers on the distribution system for firm distribution service to retail customers. Pursuant to Georgia Law, the Commission must adopt the plan filed by AGLC or adopt a plan that it deems appropriate within 90 days from the filing date. The Company filed its plan on July 11 2004. Savannah Electric Fuel Cost Hearings Set T he Commission will hold hearings on Savannah Electric and Power Company's request for an increase in its Fuel Cost Recovery Allowance. Under SAVANNAH.\ ELECTRIC the approved Procedural and Scheduling Order1 hearings will be held on September 301 2004 at 1:30 p.m. and continued if needed on Friday October 11 2004. The Company last sought an increase in its Fuel Cost Recovery Allowance in 2002. Under Georgia law, utilities are allowed to recover dollar for dollar their expenses for fuel used to generate energy. (Continuedfrom page 5) that could be used in order to calculate a ratio, but they failed to reach an agreement upon what that number would represent (monthly, quarterly or a yearly number). There were some marketers that did not want a ratio reflected on the scorecard at all. The larger group was divided into two smaller groups to brainstorm solutions - the third part of the workshop, brainstorming solutions sets. Some sug- gested solutions were to change the scorecard to reflect complaints only (noting how many were resolved1 with a complaint-per-customer ratio); develop a comprehensive library of marketer information (print and web-based) for dissemination/ and a one-page flyer for distribution to consumers {apples-to-apples price comparison/ service availability and PSC website address). Since we had reached the scheduled time to conclude the workshop1 we were not able to discuss the fourth and fifth parts of the workshop - developing a consensus and identifying the next steps. However, the workshop laid a solid foundation for moving to the next phase. Staff is currently considering the possibilities. All participants agree that whatever form the final scorecard takes, it should be "For The Common Good ... Customers." ITS Hearings T he Commission held a hearing July 20 on Institutional Telephone Service. The purpose of the hearing was to gather evidence to determine just and reasonable rates for Institutional Telephone Service (ITS) providers. Family members and representatives of inmates complained to the Commission about the high cost of collect telephone calls from state prisons and county jails. Among the public witnesses was Anne Stinson who says her monthly collect phone calls from her husband average $150. The Department of Corrections receives $13 million a year in commissions from pay phones at state prisons. VOLUME 4 ISSUE I GPSC NEWS PAGE? Employee News Commission Holds Awards Day T he Commission recognized the service and accomplish- 0 ments of its employees during its annual Awards Day May 18. The Commission nominated Ruby Robinson for the Public Employee Recognition Award. Ruby is Administrative Assistant for Commissioner David Bur- gess. The following employees Ruby Robinson is congratu- received Extraordinary Incentive Awards of $500: Greg Peacock, lated on her nomination Keith Blackshear, Helen O'Leary, . . Bernard cameron Winifred come, Joyce Lew1s, Lisa Taylor, Gaines, Carol M~tz Rachel Michelle Thebert, Julia Truss, Perry, Renee Shadix,' Pat Wei- William Upshaw and Dan Cear- foss. These employees received Faithful Service Awards: 30 years: Don Craig, Delancey Todd. 25 Years: Dorothy Buckner, Veronica Thomas, Julia Truss. 15 Years: Ken Ellison, Rachel Perry. 10 Years:Jamie Barber, Helen O'Leary, Nancy Tyer. 5 Years: Roberta Brecher, Jada Brock-Soldavini, Joyce Lewis, Gary Mason, Ann McCullough, Jeff Stair. New Employees Congratulations Ralph Trammell, retired employee, reports his son and daughter-in-law had a baby girl, Hayden Olivia, on July 5 at 4:20pm. Hayden weighed in at 61bs. 6ozs. and 20 inches long. Ralph is a PROUD grandfather!!!! Phil Smith returned to the Commission June 16. Phil was first employed at the Commission 19821998. He is a graduate of Georgia Tech and Emory University School of Law. Anna Lisa Jensen Andrea Bacon joined the Commission joined the CommisJuly 9 as an Informa- sion July 16 as a Farewell tion and Referral Spe- Utility Analyst in the . . cialist in Consumer Natural Gas section. Clarence Lan1er res1gned Affairs. She has a degree his position with the Com- from Kennesawmission to take a job in State University. the private sector. Sympathy the Lorenzo Jackson joined the Commission April 20 as Commission July 16 as an In- an Information and Re- formation and Referral Spe- ferral Specialist. cialist. We extend our sympathy to Bolin Killings on the passing of his father, the Rev. William A. Killings. Rev. Killings was laid to rest July 19 in Cleveland, Ohio. Bolin is a utility analyst in Natural Gas. Commission colleagues contributed $278 to a scholarship fund in memory of Bolin's father. PAGES GPSC NEWS Commission News Georgia State Holidays For 2004 VOLUME 4 ISSUE I Commission Calendar New Year's Day Martin Luther King, Jr. Birthday Confederate Memorial Day MemoriaI Day ,Independence Day Labor Day Columbus Day Veterans Day Thanksgiving Robert E. Lee Birthday .Presidents' Day christmas January 1 January 19 April 26 May31 July 5 September 6 October 11 November 11 November 25 November 26 December 23 December 24 August 3-Administrative Session 12-Committees 17-Administative Session 30-Atmos Gas Supply hearing September 1-BeiiSouth Hearings 2-Committees 6-Labor Day Holiday ?-Administrative Session 8-9 Capacity Supply hearings 16-Committees 20-23 Georgia Power hearings Commission Calendar 21-Administrative Session 30-Committees,Savannah Fuel Hearings October 1-SEPCO hearing 5-Administrative Session 11-Columbus Day Holiday 14-Committees 19-Administrative Session 25-27 Georgia Power hearings 28-Comm ittees NARUC Annual Convention November 14-17, 2004 Nashville, Tennessee Winter Meeting 2005 February 13-16, 2005 Washington, D.C. Summer Meeting July 24-27, 2005 SEARUC 2005 Covington, Ky. GPSC ONLINE: www.psc.state.ga.us he , T - 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 H. Doug Everett, Chairman Angela E. Speir David L. Burgess Robert B. Baker, Jr. Stan Wise