GPSC news, Vol. 4, no. 3 (Winter 2005)

Volume 4 Issue 3

GPSC
GPSC News
Making Business and Safety Decisions Affecting Tomorrow
Winter 2005
Speir Takes Helm as Commission Chair

In this issue

Commission Lobbies for

2

More Funding in State

Budget

Speir Becomes Chair

2

Round Two of Atlanta Gas Light Rate Hearings
New Commission Website Commission Goes on the Road for Savannah Rate Hearings Commission to Hear Georgia Power Fuel Case
Commission Approves Low-Income Assistance
Wise Ends Term as NARUC President
Savannah Electric Rate Hearings
Wise Makes TV Appearance
Employee News
Commission Calendar
State Holidays

3

C 3

ommissioner Angela

4

Elizabeth Speir made

history as the first woman

Commissioner Speir Presides Over Administrative Session

to chair the Public Service

4 Commission when she pre- the Commission," Com- rate request hearings

sided over the Commis- missioner Speir said. already on the docket

sion's Administrative Ses- "We have Atlanta Gas and Georgia Power

5 sion on January 18, 2005. Light Company and Sa- Company will file a re-

"This will be a busy year for vannah Electric Company

(Continued on page 2)

5 Commission Cuts Georgia Power Rate

6

Request

The Commission De- the average residential

6

cember 21 in a 3-2 customer will see a

vote approved a decrease $3.10 increase in their

in the Georgia Power monthly Georgia Power 7 Company (Company) rate electric bill.

7 hike request filed on July "Georgia Power's rates 1, 2004. The Commission will remain below the

8 cut the Company's re- national average by

quest by more than 41%, more than 20% and still

8

reducing their $328 mil- lower lion request by more than were

than the ten years

rates ago,"

$134 million. This means

said Commission Chairman H. Doug Everett, "Georgia Power customers will continue to have some of the lowest electric bills in the country and good reliability." Commissioner David Burgess noted this decision will bring reliability, affordability,
(Continued on page 2)

PAGE 2

GPSC NEWS

VOLUME 4 ISSUE 3

Commission Lobbies For Additional Funds in State

Budget

S tate lawmakers have added $50,000 to the Commis-

and kept money in.

the proved setting the stage for

sion's 2005 amended budget.

In the FY 2006 another conference committee

The money would be used to

Budget, HB 85, the showdown. We are hopeful

hire additional consultants for

House has added that our increase will remain in

the Georgia Power Fuel Cost Re-

$100,000 to the the final conference committee

covery case, Docket Number

Commission budget budget report.

19142-U. The bill is now await-

to finance the At print time, legislators ap-

ing the Governor's signature.

move of the Utili- peared headed for an April 1

The House had added the addi- ties Division from 47 Trinity adjournment day or Sine Die.

tional funds in their version of Building to the 254 Washington Last year's regular session

the FY 2005 Amended Budget Street Building. The Senate ended on April 7 but the Gov-

(HB 84) but the Senate had re- version increases that by ernor called lawmakers back in

moved it. The proposal went $10,000. The Senate also re- May for a Special Session to fix

back and forth at one time dur- moved over $3 million in local the FY 2005 Budget. In 2003,

ing the conference committee, projects that the House ap- the General Assembly ad-

which irons out differences when

journed on April 25, 2003 end-

the House and Senate pass dif- If you have a story for the next GPSC ing one of the longest sessions

fer versions ever, in the

of legislation. Howend the conference

News, please send to Bill Edge, bille@psc.state.ga.us. Next issue deadline is April 15, 2005.

in recent history. In 2002, the Session adjourned on April 12.

agreed with the House position

Speir Takes Over As Chairman
(Continued from page 1)
quest for an increase in their Fuel Cost Recovery Allowance. These cases are in addition to our normal regulatory duties. We have a heavy schedule this year but I look forward to the opportunity to serve the people of Georgia." Commissioner Speir became the first woman elected to the Commission for a six-year term

in November 2002 and the second Republican woman elected to a statewide office. A Georgia native, Commissioner Speir grew up in DeKalb County and graduated from Agnes Scott College with a Bachelor of Arts in Biology. She is also a graduate of CEO International. After graduation from Agnes Scott, Angela Speir served as the Assistant Administrator of the medical complex at the United Methodist Children's Home providing medical aid

and counseling to abused children. She first ran for public office in 1992 as a candidate for the Georgia State Senate. .Ms. Speir is a member of the National Association of Regulatory Utility Commissioners Committee on Telecommunications. Commissioner Speir and her husband reside in Gwinnett County.

(Continued from page 1)
continue good quality of service and incite innovation by the Company. A majority of the Commission voted 3-2 to adopt a stipulation agreed to by the Company, the Commission's Adversary Staff, Consumer's Utility Counsel and other parties in the case. The Stipulation provides for a three-year

accounting order rather than the one-year rate plan the Company requested. The
terms of the accounting order include:
Rates would be set at a
return on equity (ROE) of 11.25% and capped for the next three years.
A reduction in the Com-
pany's rate request of $134

million.
An earnings band of
10.25% to 12.25%. Any earnings above the band would be split between ratepayers and the company, with
all ratepayers receiving 2/3 and the Company 1/3.
As long as earnings re-
main within the band, the Company may not seek a new

VOLUME 4 ISSUE 3

GPSC NEWS

PAGE 3

Atlanta Gas Light Rate Case Hearings Kickoff

S taff Testimony in the Atlanta Gas Light Company

rate case, Docket Number

18638-U, got underway March

14, 2005. Adversary Staff testi-

fied that AGLC should receive

no rate increase, but instead

should have the Company's

rates frozen for three years,

and a Comprehensive Rate Plan

established for the Company.

Adversary Staff contends that

the Company is currently over-

earning $55 million per year

from its base rates and those

over-earnings should be used

to offset and levelize the Com-

pany's future pipeline replace-

ment costs resulting in rate

stability for the next 3 years.

Several

public witnesses

afford.

The Adversary Staff is a sepa-

rate group who conduct an

their investigation and present

evidence independent of the

Commissioners.

The Company presented its di-

rect testimony in support of its

request during hearings in

January. Rebuttal hearings are

scheduled for April 11 and 12,

2005. The Commission is

Helene Mills Expresses Her

scheduled to issue its decision

Views on Atlanta Gas Light Rate in this case during a Special

Administrative Session on April

28, 2005.

spoke to the Commission prior to Staff testimony. Most said a rate increase would be another burden senior citizens could not

The Atlanta Gas Light case is found under Commission Docket Number 18638-U.

Commission Unveils New Website Look

The Commission unveiled a new look to its website, www.psc.state.ga.us, on November 17 that is more consumer friendly and user intuitive. These online enhancements will give consumers and other users the ability to formulate smart choices concerning Natural Gas, Electric and Telecommunications services. These improvements include:

The Electric Bill Calculator will give consumers the ability to check Georgia Power and Savannah Electric bill calculations based on information obtained from their monthly electric bill statement. The calculator is easy to use and has the same intuitive and visually appealing look and feel as the new site. Bilingual support for consumers who have the need to access

consumer information in a nonEnglish format on the Commission website. A new Telecom database search engine page. This will assist users with locating information relating to Telecom companies doing business in Georgia. More enhancements and beneficial features will be added in the weeks to come.

FCC Designates 811 as the Nationwide Number to Protect Pipelines from Excavation Damage

The Federal Communications Commission (FCC) March 10 designated 811 as the national call-before-you-dig number. The establishment of a nationwide one-call hotline, as mandated by the Pipeline Safety Improvement Act of 2002,

provides excavators anywhere in the United States with an easy-to-remember, three-digit number to find out if there is a pipeline or any other underground facility where they plan to dig. Third-party damage, caused by digging into an

oil pipeline, results in the largest volume of oil that is accidentally released from pipelines. It accounts for 43 percent of oil spilled. The FCC will give communications carriers two years to implement the 811 number.

PAGE 4

GPSC NEWS

VOLUME 4 ISSUE 3

Commission Goes on the Road for Savannah

Electric Rate Hearings

Commissioners March 2 took the Commission on

the road to Savannah to con-

duct the first hearings in Sa-

vannah Electric and Power

Company's (Company) request

for an increase in its base

rates. Several local public offi-

cials as well a citizens voiced

their opinion on the Company's

proposed rate increase re-

quest. Savannah Electric has

filed a request to increase its

base rates by $23.8 million a

year, an 8.8% increase in a

customer's monthly bill. Chat-

ham County Chairman Pete Liakakis welcomed the Com-

Savannah Mayor Otis Johnson Welcomes the Commission to Savannah

mission to Savannah. The

Commission is grateful to

Chatham County for the

use of their facilities in the

historic Old Chatham

Courthouse. This is the

second hearing in Savan-

nah using the Chatham

County

Commission

Chambers.

Savannah

Mayor Otis Johnson also

welcomed the Commis-

sioners to the city.

Savannah State University

President Dr. Carlton

Brown praised Savannah

Electric for its role as an

effective corporate citizen.

Dr. Brown however ex-

(Continued on page 6)

Commission to Hear Georgia Power Fuel Case

The Commission February 18 approved a schedule of public hearings in Georgia Power Company's request for an increase in its Fuel Cost Recovery Allowance. Under Georgia Law (OCGA 462-26) the Company is allowed to recover dollar for dollar all fuel costs prudently incurred. The Commission will conduct hearings on April 18, 2005 be-

ginning at 10 a.m. and April 19, 2005 beginning at 10:30 a.m. on the Company's request. The public is invited to comment at the beginning of each day's proceedings. The Commission is scheduled to issue its decision in this case at its regular Administrative Session on May 17, 2005 at 10 a.m. The Company's Fuel Rate as proposed would increase the aver-

age residential bill by about $7.92 per month. The hearing will take place at the Commission's offices, 244 Washington Street, Atlanta, Georgia in Room 110. More information on this issue can be found on the Commission's website, www.psc.state.ga.us, by entering Docket Number 19142 in the Docket Search.

Commission Approves Change in Marketer Late Fee

The Commission January 18 approved by a vote of

tomer accounts on which natu- change to ensure that customral gas marketers can assess a ers are treated fairly. Commis-

3-2 a revision of the Commis- late fee from $10.00 to $30.00. sioners Robert Baker and

sion Rule relating to the mini- The late charge fee is $10.00 or David Burgess also voted yes.

mum account balances that 1.5%, whichever is greater.

Commissioner Stan Wise who

natural gas marketers can More information on this issue voted no on the change, said it

charge their customers late can be found under Docket would transfer costs to those

fees on past due bills. The Number 12720.

who pay their bills on time.

revised rule raises the mini- Commission Chair Angela Speir Commissioner Doug Everett

mum past due balance in cus- said she voted for the rule also voted no on the change.

VOLUME 4 ISSUE 3

GPSC NEWS

PAGE 5

Commission Approves USF Funds for LowIncome Assistance

T he Commission November 2 unanimously approved the release of $3 million from the Universal Service Fund (USF) to give qualified low-income citizens and senior citizens in Georgia some relief from this winter's expected high natural gas heating bills. Commissioner David Burgess, who sponsored the proposal, noted, "These funds will enable many Georgia families to keep the heat on this winter and pay those soaring natural gas bills." Commissioner Stan Wise added," The legislature

was correct to give us this authority. We now have the opportunity to grow the system and help our senior citizens." Today's action means a total of $6.1 million is available from the USF this winter to provide relief to eligible low-income families and senior citizens. The Department of Human Resources (DHR) disburses the funds through Community Action Agencies across the state. Eligible households must meet federal poverty guidelines in order to receive the assistance. For the first time, DHR will be able to use these funds to as-

sist people already disconnected with paying deposits to get reconnected and staying connected to the natural gas system. Since 2001, the Commission has disbursed more than $21 million in assistance to lowincome families and senior citizens to help pay winter natural gas bills. In other action, a majority of the Commission voted to reduce the rates charged for Institutional Telephone calls. The proposal calls for a 10 percent reduction in the intrastate long

distance collect call rate but the reduction would be phased-in over a four-year period beginning July 1, 2005. The surcharge would drop 5 cents a year from the current $2.20 to $2.00 while the per minute rate would drop from 24 cents per minute to 19 cents per minute. For more information on this issue, enter Docket Number 18870 in the Commission's docket search function.

Commissioner Wise Completes Term As NARUC President
Commissioner Stan Wise says it was been an eventful year during his 15- month tenure at the head of the National Association of Regulatory Utility Commissioners (NARUC). Wise recently turned over the NARUC Presidency to Marilyn Showalter, Chairman of the Washington State Utilities and Transpor-

tation Commission, during NARUC'S Annual Convention in Nashville, Tennessee. Wise said, "High on the agenda has been new telecommunications technologies, such as Voice Over internet Protocol, new rounds of court battles on telecommunications issues, and rising natural gas prices." Wise noted the recent Federal Communications Commission ruling that states com-

missions have limited jurisdiction over the fast growing internet-based telephone service. Wise is concerned that the FCC failed to address whether VoIP providers must pay fees into the Universal Service Fund for bringing telephone service to rural areas and emergency 911 services. He noted that a federal court ruling this year also limited state commission's authority to

set prices charged by the Baby Bells for competitors' access to their networks. "We're now waiting for the FCC to issue a new set of rules on this issue,' Wise said. In response to soaring natural gas prices, Wise says regulators at the convention approved a resolution urging Congress to expand the boundaries off the West Coast for natural gas ex-
(Continued on page 6)

PAGE 6

GPSC NEWS

VOLUME 4 ISSUE 3

Savannah Electric Rate Hearings

(Continued from page 4)
pressed concern about the cost to the institution of increased utility rates. Sarah Barsack, of the Southern Alliance for Clean Energy, urged Savannah Electric to promote energy efficiency and not spend money on slick billboards. Wallace Bacon told the Commission as a retiree he could not afford higher electric rates. Savannah Electric President Anthony James kicked off the Company's direct testimony. James told the Commission the Company needs the rate increase because of the investment in transmission and distribution, the addition of Plant McIntosh to

Chatham Commission Chairman Pete Liakakis Welcomes Commissioners
the rate base and the inclusion of the PPA of Plant Wansley. he Commission will hold additional

hearings in the Savannah Electric case on March 29, 30 and 31 for Adversary Staff testimony. The Company will present its rebuttal testimony on April 26 and 27. The Commission would issue its decision on the Company's request at its regular Administrative Session on May 17, 2005. More information on the Savannah Electric rate case is found under Commission Docket 19758.

Commissioner Wise Appears on WXIA-TV

Commissioner Stan Wise appeared on the WXIA-TV public affairs program "Week In-Depth" with host Denis O'Hayer on Sunday, January 23, 2005. The key topic of the program was the recently decided Georgia Power rate case. Other guests on the program included Georgia Power Vice President Ron Hinson and Rita Kilpatrick, of the Southern Alli-

ance for Clean Energy.

(Continued from page 5)
ploration. The National Association of Regulatory Utility Commissions (NARUC) members include the governmental agencies that are engaged in the regulation of utilities and carriers in the 50 states, the District of Columbia, Puerto Rico and the Virgin Islands. NARUC's member agencies regulate telecommunica-

tions, energy, and water utilities. Commissioner Wise is serving in his second six-year term on the Georgia Public Service Commission having been reelected in November 2000. Articles on Commissioner Wise's NARUC presidency appeared in the Marietta Daily and the Atlanta Journal Constitution.

(Continued from page 2)
rate case. Georgia Power had filed a rate hike request seeking an annual increase of $328 million in revenues that would have increased residential rates by about 7% per year on average. The Commission last approved a rate increase for the Company in 1991.

VOLUME 4 ISSUE 3

GPSC NEWS
Employee News

PAGE 7

New Employee
W elcome to Tom Newcombe, who joined the Internal Consultants/Facilities Protection Unit as an Analyst on January 4. Tom previously worked as a senior business valuation analyst for the past 5 years before joining the GPSC. He also spent nine

years as a chemical engineer working in process design and participated in several plant commissioning and start-ups overseas. He has a Bachelors in Chemical Engineering from Georgia Tech, a Masters of Science in Business Economics and a Masters of Science in Finance from Georgia State University.

Congratulations
Congratulations to Executive Secretary Reece McAlister and his wife Ellen on the birth of Troy William McAlister. Troy made his appearance at 8:38 a.m. February 8, 2005. He weighed in at 9 lb. 9 oz. and 21 inches long. Troy his four sisters in the McAlister household.

Sympathy

Farewell

C O ondolences to Bill Edge, Public Information Officer,

ur sympathy goes to Phil Smith on the passing of

on the passing of his daughter, his father, James Irvin Smith,

Courtney Lynn Edge, on Janu- on December 6, 2004. Funeral

ary 31, 2005. Funeral Services services were held at Long

were held in Lilburn, Georgia Creek Baptist Church in War-

on February 3,2005 at Trinity renton, Georgia on December

Lutheran Church.

11, 2004.

The Commission bid farewell to two longtime employees. Dayle Perry retired December 31 after 24years with the state. Roberta Brecher retired December 10 after seven years in state government. Both will be missed. We wish them the best in their new endeavors.

Blackshear Helps Apprehend Suspected Thief

C ommission Records Keeper Keith Blackshear on February 22 helped catch a suspected thief after a Commission staff member returned to her office on the 6th floor of 47 Trinity after being away briefly and discovered a woman (5'3'' , African American, hair in bun, blue pullover and jeans) going through her wallet. When confronted the woman gave an implausible story and left.

Keith took the elevator down to the Trinity Avenue exit and

pointed her out to the security guard. Incredibly the woman was speaking on the guard's telephone! Capitol Security took the woman into custody. Thanks to Keith's quick thinking, further thefts were avoided.

PAGE 8

GPSC NEWS

Commission News

Georgia State Holidays For 2005

VOLUME 4 ISSUE 3
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 17 April 25 May 30 July 4 September 5 October 10 November 11 November 24 November 25 December 26 December 27

March 1-Administrative Session
10- Committees 14-15 AGL Hearings 15-Administrative Session 24- Committees 29-31 Savannah Electric Hearings April
5-Administrative Session 11-12 AGL hearings 14- Committees 18-19 Georgia Power Fuel Hear-

Commission Calendar

ings 19-Administrative Session 25- Holiday 28- Committees 28-Special Administrative Session
May 3-Administrative Session 12- Committees 17-Administrative Session 30 Memorial Day Holiday

NARUC Summer Meeting July 24-27, 2005 Austin, Texas
Annual Convention November 13-16, 2005 Palm Springs, CA
Winter Meeting February 12-15, 2006 Washington, D.C.

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

COMMISSIONERS Angela E. Speir, Chair Robert B. Baker, Jr.
David L. Burgess H. Doug Everett
Stan Wise

newsletter should not be construed as legal interpretations of orders or rules issued by the Commission.

SEARUC June 6-8, 2005 Covington, Ky.
GPSC ONLINE: www.psc.state.ga.us