GPSC GPSC News Making Business and Safety Decisions Affecting Tomorrow Volume 4 Issue 2 *New Fuel Rate Effective November 1, 2004 *Allows Savannah Electric to collect $14 million shortfall *Average bill increase of $13 per month Fall 2004 Commission Decides Savannah Electric Fuel Recovery Rate In this issue Commission Accepts Award for Natural Gas Market Staff Files Georgia Power Testimony Atlanta Gas Light Files for Rate Increase Commission Approves Independent Evaluator Bonbright Center Honors Wise Wise Calls for Probe of IDT America Commission Staff Runs in Kaiser Permanente 5K Consumer Affairs: We've Got Your Back! Commission Sets Hearings on DSL Issues Demand Side Management Group Meets Angel Trees Food Drive Begins Commission Calendar State Holidays T he Commission approved a new Fuel Re- 2 covery Cost Allowance rate for Savannah Electric and Power Company during a Special Administrative Ses2 sion on October 25.The vote was 3 to 2 in favor of the staff's recommendation. The 3 decision allows Savannah Electric to collect a $14 mil- lion shortfall in fuel costs for 3 the 12-month period begin- ning November 1. This 4 means the average Savan- Commissioners journey to Savannah to listen to tes- nah Electric customer's timony in the Savannah Fuel Case monthly bill will go up about 4 $13. the next 21 months. public spoke in opposi- The Commissioners included At the Commission's tion to any increase in in the fuel rate the cost of public hearing in Savan- Savannah Electric's 5 the Plant/McIntosh Plant nah on September 30 fuel cost recovery al- Kraft coal Transloader over three witnesses from the (Continued on page 2) 5 Georgia Power Rate Case Hearings H 6 earings resumed Octo- ber 25 in the second 6 round of hearings on Geor- gia Power company's re- 7 quest for an increase in its base rates as Commission 7 Staff and intervenor witnesses presented their tes- 8 timony. Staff witness Robert J. Hen- 8 kes testified for a $57 million reduction in Georgia Power's rates as compared to the Company's request Staff Witness Robert J. Henkes Testifies for an annual increase in rates of $328 million. Staff witnesses also recommend a return on equity of 9.25% compared to the Com- (Continued on page 2 ) PAGE 2 GPSC NEWS VOLUME 4 ISSUE 2 Commission Accepts Award for Natural Gas Market C hairman Doug Everett accepted the Phoenix Award from the Center for the Ad- ment of competitive energy vancement of Energy Markets (CAEM) on behalf of the Georgia Natural Gas Market during the group's conference in Washington, D.C. on July 28. CAEM the long run, Georgia's natural markets. The Center for the Advancement of Energy Markets is an independent, non-profit, public policy think tank founded in nominated the Georgia Natural Gas Market for its initial Phoenix Award for overcoming the initial implementation challenges and establishing the most effective gas consumers who have choice and competition are the ultimate winners." The Phoenix Award is one of the CAEM Leadership Awards May 1999 to promote marketoriented solutions to the challenges that confront the energy industry, other network industries and the nation. markets for customer choice not presented to organizations and CAEM supports an effective only in the United States but individuals that have had a sig- transition from the monopoly across the globe. nificant impact on the develop- model of energy regulation to "I am pleased to accept this an open-access, customer Award on behalf of those who If you have a story for the next GPSC choice model. have contributed to the success News, please send to Bill Edge, of Georgia's deregulated natural bille@psc.state.ga.us. Next issue gas market," said Everett. In deadline is January 15, 2005. Savannah Electric Staff Files Georgia Ruling Power Testimony (Continued from page 1) lowance. The Commission then heard testimony by witnesses from the Company and the staff. The hearing was held in Savannah at the Offices of the Chatham County Commission. The Commission advocate staff pre-filed its testimony October 8 in the Georgia Power Company rate case. The advocate staff testimony makes the following recommendations: 1. A recommended annual rate decrease amount of $57,045,000. This represents a reduction of approximately 1.2% from the Company's test year revenues at present rates compared to the Company's proposed rate increase of approximately 7%. 2. A 9.25% return on equity compared to the Company's request of 12.50% A 7.35% overall rate of return The Company says its proposed increase would raise the average residential power bill by $5.25 a month. (Continued from page 1) pany's request for 12.50%. The Commission held hearings on the Company's direct testimony on September 20, 21 and 22. Georgia Power President Mike Garrett presented the Company's case-in-chief, followed by witnesses on financial issues, rate design and return on equity. The Company will have present its rebuttal testimony on November 18 and 19. Georgia Power President Michael Garrett testifies for Company's case Commissioners will issue their decision in the case at the Regular Administrative Session on December 21, 2004. Since 1991, the Commission has approved NO increases in Georgia Power's base rates. VOLUME 4 ISSUE 2 GPSC NEWS PAGE 3 Atlanta Gas Light Company Files for Rate Increase A tlanta Gas Light Company filed for an increase in its base rates on October 15 in ac- cordance with the Commission's 2002 order in AGLC's Earnings Review in Docket 14311-U. The Company says it needs a $24.6 million annual increase in reve- nues. The Company's filing breaks down the revenues requirements as follows: Depreciation Expense $15.6 million Distribution Expense--$2.5 million Property Taxes--$2.4 million Other--$2.3 million (this in- present rebuttal testimony on cludes personnel costs) April 11 through 14. The Com- The Commission will begin the mission will issue its decision first round of hearings on Janu- during a Special Administrative ary 18, 2005 with the Com- Session on April 28, 2005. pany's direct testimony. The The Commission in 2002 or- staff and intervenors will present dered a $10 million annual re- their testimony during the sec- duction in the Company's rates ond round beginning on March under a three-year accounting 14, 2005 and continuing through order. March 17. The Company will Commission Approves Innovative Rule for Supply Side Resources The Commission September 21 unanimously approved a groundbreaking innovation to meet the Commission's goal that solicitation of competitive bids for supply-side resources is a fair and open process for all potential bidders. The Commission's cutting edge rule establishes procedures and principles for a Request For Proposal (RFP) process utilizing an Inde- pendent Evaluator whose independence and depth of involvement in the bid process would be unprecedented. Some of the highlights of this new rule include: The Commission will select the Independent Evaluator to ensure that affiliates of utilities who solicit bids for purchase power agreements (PPA) do not receive an unfair advantage. The rule prohibits any com- munication between a utility soliciting the bid for the PPA and any affiliate of that utility that intended to submit a bid. The rule further bans any sharing of information between a utility and its affiliate during the bid process unless the same information is shared with all bidders. The Commission is expected to select the Independent Evaluator by the end of this year so that the RFP process for future power purchases can begin in early 2005. Speir Speaks to EMCs Commissioner Angela Speir spoke August 22 to the Director's Association meeting of the Georgia Electric Membership Cooperative. The gathering was held in North Georgia at the Brasstown Bald Resort. PAGE 4 GPSC NEWS Bonbright Center Honors Wise VOLUME 4 ISSUE 2 The James C. Bonbright Utili- ties Center of the University of Georgia honored Commissioner Stan Wise as its 2004 James C. Bonbright Honoree at the Cen- ter's annual Energy Conference in Atlanta, Georgia. Commis- sioner Wise is currently Presi- dent of the National Associa- tion of Regulatory Utility Com- missioners (NARUC). The Cen- ter recognized Wise for his active involvement over the years in shaping regulatory policy toward the electric and Commissioner Stan Wise accepts natural gas industries. Past Bonbright Honoree Award Bonbright Honorees have in- cluded former Commissioners (2003) and Ben T. Wiggins (1983). Lauren "Bubba' McDonald The Bonbright Center was established in 1992 to further understanding of regulatory management, economics and finance. The Center conducts seminars and conferences related to these topics for professionals in the electric and natural gas industries. The Center was named in honor of Professor James C. Bonbright (18911985), who was a pioneer active in the field of public utility regulation. Commissioner Wise is serving in his second six-year term on the Commission. Wise Directs Probe of IDT America Commissioner Stan Wise October 7 directed the Commission staff to begin an investigation of IDT America, Corporation regarding the billing of Extended Area Service (EAS) calls in Georgia. During the staff's preliminary investigation of a consumer complaint forwarded long distance to the Commission by State Representative DuBose Porter (D- Dublin), staff uncovered evidence that the company may be incorrectly billing consumers for charges for calls that should have been billed as local calls. Commissioner Wise stated, "The Commission established Rules for the implementation of House Bill 888 in 1998 which approved certain 22-Mile EAS Routes. It is the expectation of this Commission that all telecommunication companies comply with the Order which specifically addresses interexchange carrier traffic associated with interLATA routes. The issue raised by this one complaint is troublesome in that this investigation may lead to other consumers who have also been incorrectly billed for local calls." Representative Porter stated, "My concern is the Commission staff's preliminary investiga- tion appears to indicate a disregard for customers in our area and I look forward to the findings of their investigation into IDT's practices." IDT America Corporation is headquartered in Newark, NJ . If the company is found to be in violation of the Commission order, it would be required to refund any charges that have been billed in error and could face further penalties up to and including the revocation of their Certificate to operate in the state of Georgia. The Staff should be ready to make a recommendation to the full Commission by late November. VOLUME 4 ISSUE 2 GPSC NEWS The "Regulators" Run in Kaiser Permanente 5K F or the fourth consecutive year, the "Regulators" represented the Commission in the Kaiser Permanente Corporate 5K Run/Walk through downtown Atlanta. For the first time, the Commission sponsored a tent for team members to relax and enjoy food and fellowship following the event. The event promotes fitness and fellowship among employees of metro Atlanta businesses and government organizations and raises money to help support the Atlanta PAGE 5 Braves Foundation and the Boys & Girls Club of Metro Atlanta. The "Regulators" included: Commissioner David Burgess, Dan Cearfoss, Jim Bottone, Julia Truss, DeLancey Todd, Bill Edge, John Kaduk, Leon Bowles, Tom Bond, Janey Chauvet, Patrick Reinhardt, Dorothy Buckner, Shaun Rosemond, Sheree Kernizan, Ann McCullough, Bolin Killings, Andrea Bacon, Jamie Barber, Deborah Flannagan, Veronica Thomas, Lillian Johnson, Gary Mason and Monique Pringle. Thanks to all who took part in the event for a good cause. Also, a special thanks to Commissioner Stan Wise for donating our Tshirts. Race Participants enjoy food and fellowship under the PSC tent following strenuous race Consumer Affairs: We've Got Your Back by Bernard Cameron The backbone of any service organization is its frontline employees whether it's a bank, restaurant, gasoline station or a grocery store as this may be the only contact that a customer may have with that organization. So, it is critical that the "ambassador" makes the very best of this opportunity to convey concern, attentiveness, first prong consists of respond- kindness, compassion and under- ing to communications (letters, standing to the person on the faxes, Internet, emails, visita- other end of the line. tions and via telephone) that Our Consumer Affairs Unit is are received from consumers staffed with a director, two assis- from across Georgia, and other tants to the director (education parts of the Country. The sec- and enforcement), administrative ond prong relates to enforcing assistant, three operations ana- rules and laws that govern ser- lysts, a call center supervisor and vice providers' behavior and seven Information and Referral protect consumers. The last Specialists. The duties of the Unit prong involves outreach and are three-pronged in nature. The (Continued on page 6) PAGE 6 GPSC NEWS VOLUME 4 ISSUE 2 Commission Sets DSL Hearings for December The Commission September 7 approved a schedule for hearings and filing testimony in its proceeding to examine Digital Subscriber Line (DSL) policies in Docket Number 19393. The Commission set hearings for December 14-17, 2004 on this issue. Parties must pre-file direct testimony by November 12, 2004 and pre-file rebuttal testimony by November 22, 2004. Residential telephone customers have complained that BellSouth disconnected their DSL service, or refused to sell them DSL service, once they chose to buy voice telephone service from one of BellSouth's competitors. In November 2003, the Commission ruled in Docket No. 11901-U, MCI WorldCom Communications vs. BellSouth Telecommunications, Inc., that BellSouth's policy of requiring customers to receive its voice service in order to receive DSL service violated state law as well as the parties' interconnection agreements. More recently, in Docket No. 16583-U, ITC^DeltaCom vs. BellSouth Telecommunications, Inc., the Commission again found that BellSouth's policy violated state law. Following these rulings, BellSouth changed its policy for customers of these two companies, but not for those of other competitive local exchange carriers (CLEC). In addition to examining Bellsouth's DSL policies, the Commission will look at the bundling practices of all telecommunications providers that involve the provisioning of DSL and other types of voice service, such as Voice over Internet Protocol (VoIP). As VoIP becomes more popular, Demand Side Management Group Meets T demand for unbundled DSL is expected to increase. If permitted to continue unfettered, un- he Demand Side Management working group has fair bundling practices could met three times to carry out slow the introduction of this the Commission's directives in new service. the recent Integrated Resource Plans approved for Georgia Power and Savannah Electric Companies. Staff member Jim Bottone chairs the panel. The group is charged with making a recommendation to the Commis- mix of proposals to reduce ension by February 15, 2005 on a ergy consumption. (Continued from page 5) education empowering consumers to make decisions to help them better manage their utility bills. We take our jobs seriously because we know that somebody's lights or gas may be turned off or the telephone may be disconnected if we don't intercede on their behalf. We make sure that the utility has crossed all "T's" and dotted all "I's" before going down the path of disconnecting services. None of us want people, especially our seniors, to be in a cold house in the midst of winter. During the third quarter of 2004, the Consumer Affairs staff was contacted by more than 2100 consumers with issues related to the electric, natural gas and telecommunications industries. Eighty-four of these contacts have been identified as "probable violations" which means that staff will take a closer look at these contacts to verify whether a rule or law has been violated. Consumer Affairs If you haven't had the occasion to visit the "friendly folks" in (Continued on page 7) VOLUME 4 ISSUE 2 GPSC NEWS Employee News PAGE 7 Angel Tree Sponsors Wanted HBy Bernard Cameron elping people is a part of the Commission's rich heritage. Traditionally, rates that were approved have favored the residential class of customers. And, in recent years, financial assistance has been rendered to low-income seniors who are users of natural gas via the Universal Service Fund. Many of us don't know what it feels like to wake up on Christmas morning and not have a wrapped gift for us under the tree. Now, you can make sure that the needy child or elderly person will have a true Christmas experience feeling this year. Commission employees have an opportunity to reach out and help through a program called "Angel Tree." Angel Tree is a Salvation Armysponsored initiative that allows people to "adopt" a child or elderly person to insure that on Christmas Day there will be presents under the tree. In order for a family to participate in this worthwhile program, it must meet very specific verification guidelines as established by the Salvation Army. Carolyn Harrison, Consumer Affairs, is spearheading the Angel Tree effort at the Commission. If you are so inclined or if you want to bring a smile to a child's or elderly person's face this Christmas, won't you become a sponsor? Carolyn has a number of "angels" just waiting for you. The package you receive contains the name of the person you adopt, along with clothing and shoe sizes, as well as suggestions for age-specific toys. Sympathy Food Drive Begins To Dennis Sewell, Telecom Engineer, on the passing of his father, Dennis Sewell, Sr. on October 9. Farewell Helen O'Leary leaves to take a position with the Office of Early Child Intervention. She has been at the Commission since 1996, serving as Administrative Attorney and Executive Secretary. Y our help is desperately needed to arrest the prob- lem of hunger in our commu- nity. For the 7th year in a row, the Commission will be hosting its annual food drive from Monday, November 1, 2004, until Tuesday, November 30, 2004. Pat Welcome has stepped forward to be our am- bassador of good will in head- ing up this project! There will be two receptacles to collect the donated food - one in the Executive Secretary's office and one in the break room on the 6th Floor - in which you can place your non-perishable food stuffs. The food collected will be distributed by the Atlanta Community Food Bank to over 700 community- based not - f o rprofit feeding agencies. The items that are most needed include: Canned Meats, such as spam, ham, meat-spread, beef (Continued from page 6) Consumer Affairs Consumer Affairs, come on down and visit nature (we have lots of plants) and see the pulse of the Commission. After all, we've got your backs!!! stew, chicken, canned fish: tuna, salmon, and sardines; Dry milk Items, like evaporated milk, canned cheese, powdered milk, pudding, and custard; Bread and Cereal Items, such as baking mix, muffin mix, dry cereal, oatmeal, grits, rice, rice cakes, spaghetti, macaroni & cheese, cornmeal, and cornmeal mix; and Fruit and Vegetable Items, like canned fruit, spaghetti sauce, applesauce, canned juices, canned vegetables, canned soups, peanut butter, jellies jams, and dried fruits. PAGE 8 GPSC NEWS Commission News Georgia State Holidays For 2004 VOLUME 4 ISSUE 2 Commission Calendar New Year's Day Martin Luther King, Jr. Birthday Confederate Memorial Day Memorial Day Independence Day Labor Day Columbus Day Veterans Day Thanksgiving Robert E. Lee Birthday President's Day Christmas January 1 January 19 April 26 May 31 July 5 September 6 October 11 November 11 November 25 November 26 December 23 December 24 November 2-Administrative Session 10- Committees 11-Veterans' Day Holiday 12- Committees 18-Administrative Session 18-19Georgia Power Hearing 25-26-Thanksgiving Holidays December 2- Committees 7-Administrative Session 14-17-DSL Hearings 16- Committees Commission Calendar 21-Administrative Session 23-24-Christmas Holidays 30- Committees January 3- Holiday 4-Administrative Session 13- Committees 17-MLK Holiday 18-Administrative Session 18-21AGL Hearings 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 June 13-16, 2005 Covington, Ky. GPSC ONLINE: www.psc.state.ga.us The 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, Chair Angela E. Speir David L. Burgess Robert B. Baker, Jr. Stan Wise