GPSC news, Vol. 5, no. 1 (Summer 2005)

GPSC
GPSC News

Making Business and Safety Decisions Affecting Tomorrow

Volume 5 Issue 1

Summer 2005

Atlanta Gas Light Rate Case * Base Rate Freeze for five years *Pipeline Replacement Rider freeze for three years *Return on Equity 10.90%

In this issue

SEARUC 2005

2

Atlanta Gas Light

2

Decision

North Georgia Gets New 3 Area Code
Commission Cuts Savan- 3 nah Electric Request

SCANA Retained as

4

Regulated Provider

Commission Approves

4

New Natural Gas Mar-

keter

Commission Assumes

5

New Functions

Motor Carrier Fuel Sur-

5

charges Extended

Commission Issues Final Decision in

Atlanta Gas Light Case

T he Commission approved on June 10 an agreement in the Atlanta Gas Light Company rate case, Docket Number 18638-U, that provides for a five-year rate freeze for natural gas customers in the AGLC distribution area. Under the proposal by Commissioner David Burgess, AGLC customers and low-income senior citizens will save $32.5 million over the next five years due to a three-year freeze in charges for the Pipeline Replacement Program and an increase

in the monthly lowincome senior citizen discount. Commissioner Burgess said, "I am offering this settlement because it makes good policy, and if we get the policy right it drives a good decision." Commissioner Burgess said the four guiding principles that shaped his decision were: 1) minimizing the cost and the disruption of the pipe replacement program; 2) achieving rate stability during these times of volatile energy prices; 3) main-

taining a viable utility

company; and 4)

making the best use

of the PSC's limited

staff resources. A

majority of the Com-

mission voted 3-2 to

vacate the Commis-

sion's April 29, 2005

Order and approve

the proposed settle-

ment which

the

Company accepted.

Highlights of the set-

tlement include:

A five-year freeze

in the Company's

rates, from May 1,

2005 through April
(Continued on page 2)

Commission Approves Georgia Power Fuel Cost Rate

Lifeline Assistance and Link-up Programs Baker on WXIA-TV
Employee News
Holiday Calendar
Commission Calendar

T 6

he Commission deci- average ratepayer. The The Commission held sion on May 17 in the Commission decision will hearings in this Docket

Georgia Power request for allow the Company to in April. State law says

6 an increase in its Fuel collect about $508 mil- the Commission must

Cost Recovery (FCR) Al- lion in under-collected allow the Company to

7

lowance means residential electric customers will see

fuel costs incurred since October 1, 2003 as well

recover fuel costs that are prudently incurred.

a lower increase in their as future costs for the The law places the bur-

8 electric bills. A majority of next year. The new rate den of proof on the utilthe Commission voted 3-2 took effect June 1, ity but no intervenor or

to spread the collection of 2005. The average Commission staff of8 the under-collected costs monthly increase in fered any testimony to

over a 48- month period to residential bills will be dispute the utility's re-

reduce the impact on the about $6.39.

(Continued on page 2)

PAGE 2

GPSC NEWS

VOLUME 5 ISSUE 1

SEARUC 2005

Commissioners and staff attended the 2005 SEARUC

Annual Convention held at the

Northern Kentucky Convention

Center in Covington, Kentucky

June 6-8, 2005. The theme was

"Navigating the Waters of

Regulation."

U.S. Senator Jim Bunning of

Kentucky provided the keynote

address to kick off the three-

day meeting. The meeting in-

cluded sessions on the pending

energy bill in Congress, tele-

communications

technology

developments, current issues in

natural gas, electricity and en-

vironmental concerns.

The session ended with a panel

discussion on communications

between state commissioners

and industry represen-

tatives.

Commissioner Doug

Everett was elected

SEARUC Second Vice-

President which means

he would assume the

Presidency in 2008.

Next year's SEARUC

Annual Convention is

scheduled for June

2006 in Gulfport, Mis-

sissippi. Michael Calla-

Commissioners Stan Wise and han, of the Mississippi

David Burgess share conversation PSC, is the newly in-

during the SEARUC Convention

stalled President of SEA-

RUC for 2005-2006. The

If you have a story for the next

First Vice-president is Commis-

GPSC News, please send to Bill

sioner Daryl Bassett of Arkan-

Edge, bille@psc.state.ga.us. Next sas. issue deadline is October 15, 2005.

Atlanta Gas Light Rate Case
(Continued from page 1)
30, 2010. A Return on Equity (ROE) of 10.90%. Extension of the Pipe Replacement Program (PRP) from its current 10-year schedule to 15 years with current rates frozen for the next three years. This will save consumers $25 million. The settlement also in-

creases the monthly discount for low-income senior citizens by $3.50; from the current $10.50 to $14.00 or the amount of the AGL base charge whichever is less, giving those qualified senior citizens a rate decrease of as much as $42 a year. A majority of the Commission approved an increase in the Company's proposed Home and Heart Warming program to $1 million. The monies will be used to buy space heaters for qualified low-income recipients.

The Company's original rate increase request sought an increase in annual revenues of $24 million that would have raised monthly residential bills about $1.39. The Commission's decision follows extensive hearings on the issue this year beginning in January and continuing in March and April.

Georgia Power Fuel Case
(Continued from page 1)
quest. The Company filed for an increase in the FCR on February 15, 2005. The law requires the Commission to issue a decision within 90 days of the Company's filing. A majority of the Commission also voted to:
Disallow $1.3 million in

expenses due to operator and

maintenance error.

Amortize

the

under-

collection over a 48- month pe-

riod.

Establish a $50 million

"dead-band" so that under-

collections or over-collections in

that amount would trigger a

new filing with the Commission.

Begin a new rule- making

process to enhance the fuel cost

recovery process and establish Minimum Filing Requirements (MFR) in fuel cost cases.

VOLUME 5 ISSUE 1

GPSC NEWS

PAGE 3

North and West Georgia Have New Area Code

The Commission June 24 announced the release of "762" as the new overlay area code to provide area code relief in the 706 service area. The Commission issued its order on June 23 calling for the all services distributed overlay as the preferred method of relief for 706, as recommended by the North American Numbering Plan Administrator (NANPA) NeuStar, Incorporated on behalf of the Georgia telecommunications industry. NANPA issued 762 as the new area code assignment.

The 706 area code includes the major Georgia cities of Athens, Augusta, Columbus, Cornelia, Dalton, LaGrange, Rome, and Toccoa. Current phone numbers will not change area codes but all tele-

phone users in the 706 area

code will have to dial ten digits

to complete a telephone call,

whether local or long distance.

All new telephone numbers

will be assigned the new area

code once the new code is

placed into service.

Based on current projections,

NANPA estimates this new

area code means it will be 13

years before another area

code is needed in this service

area.

To introduce the new overlay

area code under the current

proposed

implementation

schedule, a "permissive" dial-

ing period will begin on Sep-

tember 1, 2005, allowing customers to dial either the seven or 10-digit telephone number. During this period customers are encouraged to begin dialing 10 digits on all calls to become accustomed to the new dialing plan. Mandatory 10digit dialing will begin on April 3, 2006. Customers must then use the new 10-digit dialing pattern to complete all local calls.

Commission Approves Cut in Savannah Electric Rate Request

The Commission May 17 approved a settlement in the Savannah Electric and Power Company rate case that saves the Company's customers more than $12.7 million a year. The Commission action cut Savannah Electric's rate request by nearly 60 percent. The settlement means base

rates for Savannah Electric residential customers using 1200 kilowatt hours a month will increase slightly by about $3. The new rates took effect June 1, 2005. The agreement provides for a three-year rate plan that includes:
Increases Senior Citizen

Low-income Discount from $10.50 to $14.00 a month. A typical senior citizen using 840 kilowatt hours will see their av-
erage monthly bill drop by 80 cents. A three-year accounting order that freezes rates for three
years until November 30, 2007. A Return on Equity (ROE) of 10.75% An earnings band of 9.75%

to 11.75%. Any earnings above the band would be split between ratepayers and the Company, with ratepayers
receiving 2/3 and the Company 1/3. Reduces Savannah Electric revenues by $5 million a
year. The Commission decision follows extensive hearings in this docket in March and

April. Savannah Electric filed their request for an increase in the Company's base rates on November 30, 2004. The Commission is required by law to issue a decision on the Company's request within six months.

PAGE 4

GPSC NEWS

VOLUME 5 ISSUE 1

Commission Approves SCANA to Continue

as Regulated Provider

The Commission voted June 23 to retain SCANA Energy as the Regulated Provider of natural gas for a twoyear term beginning September 1, 2005. SCANA has served as the Regulated Provider since the program's inception in September 2002 following legislation enacted by the 2002 Georgia General Assembly. The Regulated Provider provides natural gas service to low-income consumers (Group 1) and to customers who are unable to obtain or maintain natural gas service from other marketers or whose utility payment his-

tory is cited as the reason for transfer from Group 1 to Group 2 (Group 2). The new contract will provide savings for senior citizen Group 1 customers. The low-income senior citizen discount rate will decrease by ten cents per therm, the monthly customer service charge for senior citizen Group 1 customers will drop $1.00 to $3.95 and the $100 deposit will be waived for new senior citizen Group 1 customers. The Regulated Provider serves those customers in the Atlanta Gas Light Company service areas who receive ser-

vice from one of the ten natural

gas marketers.

For more information, use the

Docket Search function on the

Commission

website,

www.psc.state.ga.us , and en-

ter Docket Number 20069.

Commission Approves New Natural Gas Marketer

T he Commission on June 23 approved the application by Commerce Energy, Incorporated for a natural gas marketer certificate of authority, Docket Number 20504. The Commission also approved the transfer of all assets and customers of natural gas marketer ACN Energy, Incorporated (ACN Energy) to Commerce Energy.

The Commission decision requires both Commerce and ACN Energy to refund deposits within six months to all ACN customers who have paid their bill in a timely manner for six billing cycles. This refund must be paid within 60 days once the customer completes the six months of timely bill payments. Commerce Energy, Inc. of Costa Mesa, California is a non-

utility-affiliated retail marketer of electricity and natural gas throughout the United States. Commerce Energy, Inc., which was formerly known as Commonwealth Energy Corporation, is a wholly-owned subsidiary of Commerce Energy Group, Inc., a publicly-traded company.

PSC Road Show
Commission staff recently made presentations to community groups in Macon and Savannah to explain how the Commission works and shed light on consumer's utility bills. Consumer Affairs Director Cynthia Johnson, Assistants Mike Nantz and

Bernard Cameron (seen in photo at left) and Public Information Officer Bill Edge took part. "These presentations are a great way to explain utility bills and how the Commission can help consumers," said Johnson. Other presentations are planned for the future.

VOLUME 5 ISSUE 1

GPSC NEWS

PAGE 5

Commission Assumes New Transportation Functions

On July 1, 2005 the Commission assumed responsibility for the certification and enforcement of regulations for household goods movers, luxury limousine carriers, buses, motor carriers and non-consensual towing. House Bill 501, approved during the 2005 General Assembly, transfers several certification and enforcement functions performed by the current Department of Motor Vehicle Safety (DMVS) to other state agencies including the Public Service Commission. The legislation

creates the Department of Driver's Services to handle the issuance of driver's licenses. Under H.B. 501, the Commission assumes the following regulatory activities in connection with household goods movers, limousine carriers, bus carriers, motor carriers and nonconsensual towing: 1. Issue permits and certificates. 2. Investigate consumer complaints. 3. Conduct audits to ensure compliance and quality. 4.Provide tariff training. 5. Take action against illegal operators. 6. Provide the public with information via telephone or website,

such as the Consumer Service Report Card; and 7. Ensure that carriers maintain proper insurance coverage. Under current state law, all limousine companies are required to be registered and have proof of insurance on file with the Commission. Licensed limousine carriers operate under a maximum tariff and rates are negotiable. Chauffeurs who drive for licensed carriers are required to have permits which the Department of Driver's Services issued only after the successful completion of a criminal history

investigation. The legislation provided that the employees at DMVS currently handling these functions be transferred to the Commission.

Kaiser Permanente Walk Run in September
I t's time to register for the Kaiser Permanente Corporate Walk Run. This year it will be September 15 at Turner Field. To register go to : http:// kpcorporaterunwalk.kintera.org/ faf/search/searchTeamPart.asp? ievent=110901&team=981823. Let's try again for a great turnout. More information will be forthcoming.

Commission Extends Fuel Surcharges for
Movers and Limousines
On July 1 the Commission approved a 90-day extension of the four (4) percent fuel surcharge for household goods movers and the five (5) percent fuel surcharge for luxury limousine carriers. This approval extends two temporary orders

which expired June 30, 2005. The fuel surcharge extensions will expire on September 30, 2005. The Commission's order makes it clear that all luxury limousine carriers and household goods movers must notify customers in writing in advance of the surcharges before they can impose these surcharges. In addition, household goods movers

must notify the Commission within two weeks if the surcharges would cause the carriers to exceed their maximum rate tariffs. Movers must also notify the Commission in writing by July

15, 2005 of their intent to implement the fuel surcharge. Consumers can find helpful information on household goods movers and limousine carriers on the Commission website, www.psc.state.ga.us. Click on the "Transportation" bar to find information on choosing a mover and a list of certificated limousine carriers.

PAGE 6

GPSC NEWS

VOLUME 5 ISSUE 1

Lifeline Assistance and Link-Up Georgia Programs Eligibility Criteria Expanded

T he Commission June 23 approved the expansion of the criteria to participate in the Lifeline Assistance and Link-Up Georgia programs by including participants in the Federal Public Housing Assistance (FPHA) program and the Low-Income Home Energy Assistance Program (LIHEAP). Also, the Commission standardized the eligibility criteria for Lifeline and Link-Up statewide. Lifeline Assistance provides up to a $13.50 credit (a federal credit of $10 and an additional credit of $3.50 from BellSouth) on qualified residential customers' bills in

BellSouth's service area. Customers in other telephone companies' service areas receive the $10 federal credit. Link-Up Georgia reduces the cost of having a telephone installed. Consumers are eligible to receive one-half of the connection charge or $30, whichever is lesser, off the cost of having a telephone installed. BellSouth credits 100% of the connection charges for its eligible Link-Up customers. In order to receive the Lifeline Assistance and/or Link-Up Georgia credit, consumers must provide proof and certify under

penalty of perjury that you are currently participating in one of the following programs: 1. Temporary Assistance to Needy Families (TANF) 2. Supplemental Security Income (SSI) 3. Food Stamps 4. Medicaid 5. Senior citizen low-income discount plan offered by the local gas or power company 6. Federal Public Housing Assistance (FPHA) 7. Low-Income Home Energy Assistance Program (LIHEAP)

Commission Reaches Out to Hispanic Contractors

L isa McKnight, with Pipeline Safety, represented the Commission at the First Annual Family Health and Safety Fair at the Gwinnett County Fairgrounds on June 11. McKnight joined with the Utilities Protection Center mascot "Digger Dog" and friends to distribute safety materials and provide compliance information on safedigging, trenching, and exca-

vation. The Family Health and Safety

Fair, sponsored by the Georgia Department of Labor, Georgia Institute of Technology, Occupational Safety and Health Administration (OSHA), El Constructor Latino, and the Consulate General of Mexico, is an initiative to educate the Hispanic community on all aspects of construction site safety.

Baker Appears on WXIA-TV Program

Commissioner Robert B. Baker, Jr. appeared on the July 24 edition of the WXIA-TV public affairs program "Week In Depth". Reporter and news anchor Denis O'Hayer is the host of the weekly 30- minute broadcast. Baker discussed the recent Atlanta Gas Light

Baker and host Denis O'Hayer

Company rate case, the Georgia Power Company fuel case, the new north Georgia area code and the prospects of additional nuclear power in Georgia. Other guests on the program included Georgia Power Vice President Ron Hinson and Glenn Carroll from Georgians Against Nuclear Energy.

VOLUME 5 ISSUE 1

GPSC NEWS
Employee News

PAGE 7

Employee Recognition Day

The Commission recognized its outstanding employees

Incentive Awards were: Lisa Taylor,

at its annual Employee Recog-

Keith Blackshear,

nition Day May 17. Carolyn

Monique Pringle,

Harrison and Tracey McGoughy

Tressa DeAndrade,

were recognized as the Com-

Tim Franklin, Wil-

mission nominees for the state-

liam Upshaw, Ear-

wide Public Employee Recogni-

nest Whatley, Wini-

tion Award.

fred Gaines, Pat

Those receiving Faithful Service

Welcome, Greg

Awards were: Five Years: Philip

Peacock and Nancy

Bedingfield, Lynn Buffington, and John McCarter; 15 Years: Tyer.

Gigi McGhee, Patrick Reinhardt, Alan Towe and Leon Bowles; 30 Following the awards, eve-

Ruby Robinson and Pat Wel- Years: Bob Ginn. Those receiv- ryone enjoyed a catered

come; Ten Years: Tom Bond ing Extraordinary Achievement lunch.

Welcome Transportation Section

Welcome to William Morgan and Robert West who joined us July 1 as part of the transfer from the Department of Motor Vehicle Safety. They are responsible for regulating household goods movers, luxury limousines and passenger buses. Both have extensive experience in education and management fields.

Montrelle Caldwell joined the Commission July 29 as a Transportation Specialist. She will assist William and Robert.

Sympathy

Congratulations

Welcome

Our sympathy goes to Nora Blair, retired employee, on the death of her father, Raymond Edward Trimble, July 19. Funeral services were held in Fayetteville, Georgia on July 22.
Our condolences to Gigi McGhee on the passing of her mother, Betty McGhee, on May 26. Funeral services were held on June 2 at Cascade United Methodist Church in Atlanta.

To Tony Wackerly on his marriage to Indah Kristiani. The couple were wed July 23 in Indonesia. To Bill Edge on the marriage of his daughter Krystle to Todd Heydel on July 29. The wedding took place in Lilburn, Georgia.
Farewell
Andrea Bacon, Utilities Analyst Natural Gas, resigned July 15 to pursue other opportunities.

Katrina Bond joined the PSC Family August 3 as a Utilities' Analyst in the Natural Gas Section. She brings to the Commission 13 years of operational experience in the gas industry.

PAGE 8

GPSC NEWS

VOLUME 5 ISSUE 1

Commission News
Georgia State Holidays For 2005

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 Christmas President's Day

January 1 January 17 April 25 May 30 July 4 September 5 October 10 November 11 November 24 November 25 December 26 December 27

August 2-Administrative Session
11- Committees 16-Administrative Session 30-Special Administrative Session September
1- Committees 6-Administrative Session 7-9 Atmos Rate Hearings 15- Committees 20-Administrative Session 29 Committees

Commission Calendar

October 4-Administrative Session
10 Holiday 13 Committees 11-13 Atmos Rate Hearings 18--Administrative Session 27 Committees November
1Administrative Session

NARUC Annual Convention November 13-16, 2005 Palm Springs, CA
Winter Meeting 2006 February 13-16, 2006 Washington, D.C.

SEARUC June 5-7, 2006 Gulfport, Miss.
GPSC ONLINE: www.psc.state.ga.us

3-4-Atmos Rate Hearings 10- Committees 15-Admnistrative Session

Summer Meeting 2006 July 30-- August 2, 2006 San Francisco, CA

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