GPSC news, Vol. 6, no. 1 (Fall 2006)

GPSC
GPSC News

Volume 6 Issue 1

Hearings Set for Georgia

Fall 2006

Fuel Case Proceedings
*November 13 case filed

Power Fuel Case

T *January 11 testimony filed

*January 18 rebuttal filed

he

*January 23 hearings

*February 6 decision

Commission

In this issue

October 17 adopted a

Budget Request Submitted

2 revised schedule of

Lower Green Power Premium Set

hearing and 3 filing dates in
the upcoming

AT&T-BellSouth Merger Approved

3 Georgia Power Fuel Cost Recov- Commission approved hearings on the Comery adjustment docket, schedule is as follows: pany's request.

23405-U.

November 13: Georgia January 30, 2007: Par-

Summer NARUC Meeting

4 Georgia Power is ex- Power files its case.

ties must file all briefs

pected to file its latest January 11, 2007: Staff and/or proposed or-

fuel cost recovery figures and intervenors file di- ders.

Hispanic Contractors Fair 4 on or about November rect testimony.

February 6, 2007: The

13, triggering a round of January 18, 2007: Commission issues its

Chairman Testifies Before Congressional Panels

5

filings and hearings be- Georgia Power files its decision. fore the Commission that rebuttal testimony.

will conclude with a deci- January 23-24, 2007:

sion early next year. The The Commission holds

Bonbright Conference
GUCC Fall Conference
Commissioner Speir Speaks at Graduation Commission Hosts International Visitors Employee News
State Holidays
Commission Calendar

5 Commission Rules in ERCO Worldwide Case

6

The Commission Oc- transfer tober 3 approved 2006.

in

August, ERCO, Colquitt EMC and Oglethorpe Power effec-

6

the request of ERCO In approving the trans- tively caused Colquitt Worldwide in Valdosta to fer, the Commission ac- EMC to abandon ERCO

transfer its retail electric cepted a finding that and fail to provide ade-

6 service from Colquitt Colquitt EMC's rates quate and dependable

Electric Membership Co- were discriminatory but service.

7

operative to Georgia Power Company, Docket

only in this docket. The Commission also ac-

2. Georgia

Power

will

23549-U. The Commis- cepted a number of have the right to serve

8

sion held a full hearing on this issue on Septem-

findings recommended by the Commission

the ERCO facility for the life of the facility and

ber 20, 2006. ERCO staff:

the right to serve any

8

Worldwide had applied to 1. The

three

new facilities at that lo-

party

(Continued on page 2)

the Commission for the agreements between

PAGE 2

GPSC NEWS

VOLUME 6 ISSUE 1

Commission Submits Budget Requests

T he Commission submitted its Amended Fiscal Year 2007 Budget and its Fiscal Year 2008 Budget Requests to the Office of Planning and Budget (OPB) on September 1. This year's request seeks more than $1 million in new funding to fill critical vacancies for energy regulation and to beef up enforcement staff in the Pipeline Safety/GUFPA Enforcement Section as well as Transportation. Here are some of the Commission's budget highlights: 1. Base adjustment for Real Estate Rent charged in excess of our budget ($54,500) 2. Transportation Enforcement: Add three Transportation Audi-

tors and one Program Operations Specialist in Utilities Regulation Program including IT programming and database costs. 2. Energy Regulation: Of these four vacancies in Utilities, hiring an economist and a financial analyst/accountant are at the top of our priority list. In addition, we are seeking to fill two Consumer Affairs vacancies. 3. Facilities Protection Program: A. Fill one Pipeline Safety Inspec-
tor vacancy in Facilities Protection Program for $60,812 and add two Pipeline Safety Inspector positions at $60,812
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, 2007.

each to meet federal staffing guidelines for a total cost of $275,453 B. Add four GUFPA Investigator positions to Facilities Protection Program for $267,705. C. Add $25,000 in Contracts enforce GUFPA civil penalties collections in the Facilities Protection Program 4. Administration Program: Fill two vacancies. The Governor and OPB will make their budget recommendations to the legislature which will then pass out its version of the budget during the 2007 General Assembly.

Commission and Marketers Reach Agreement on

Information Requests

T he Commission staff and two natural gas marketers, Georgia Natural Gas (GNG) and SCANA Energy (for both its regulated and deregulated operations) reached an agreement October 17on the staff's motions requesting that the marketers provide information regarding their gas procurement strategy and contracts utilized

to supply the natural gas commodity to their customers in Georgia. GNG and SCANA agreed to provide the requested information and the Staff has agreed to sign an acknowledgement of its existing obligation to preserve the confidentiality of proprietary information under the Commission's Trade Secret Rule.

The agreement means that all of the certificated natural gas marketers in Georgia subject to the staff's request of February 6, 2006 have now agreed to comply with the request and submit the information to the Commission.

(Continued from page 1)
cation.
3. The Commission declares
that opt out clauses such as that contained in the ERCO contract are contrary to public policy and in violation of the Territorial Act. Colquitt EMC is ordered to file all rates, charges, service rules and regulations with the Commission including the three

party contract with ERCO. Commission Chairman Stan Wise said, "This case was difficult but it is about economics and providing an opportunity for a customer to serve and stay in Georgia." Commissioner Doug Everett said he could not support the finding of discriminatory rates but he supported the main decision in order to ensure that

ERCO Worldwide continues to provide an economic benefit for the state of Georgia. ERCO Worldwide manufactures chemicals used in the production of paper products. It employs approximately 80 people and has a payroll of $2 million. The Commission ordered the transfer to take place no later than January 31, 2007.

VOLUME 6 ISSUE 1

GPSC NEWS

PAGE 3

Lower Green Power Premium Set

T he Commission September 5 unanimously approved a reduction in the cost of the Green Power premium to $4.50 for one block (100 kilowatt hours) for customers of Georgia Power and those customers in the former Savannah Electric territory in Docket 16573-U. The Commission had previously set the Green Power premium at $5.50 per block for Georgia Power customers and $6.00 per block for Savannah Electric customers. These lower rates will be consolidated into one rate in Georgia Power Company's next rate case proceeding, which is expected to be filed July 1, 2007. The Green Power pre-

mium is in addition to the regu-

lar charges for electric usage.

The Commission first approved

the Georgia Power and Savan-

nah Electric Green Power pro-

gram on July 15, 2003. The

entirely voluntary programs will

allow electric utility customers

to purchase part of their elec-

tric power generated by renew-

able resources, such as landfill

gas, solar, wind, limited hydro

and limited biomass. Custom-

ers

must

agree to par-

ticipate in the

program for a

minimum 12-

month pe-

riod.

In 2001, the Commission directed Georgia Power and Savannah Electric to file proposed Green Energy Programs that would allow green energy to be purchased by its customers at an established price but would not impact bills of customers who chose not to participate. The Commission also voted to increase the price Georgia Power Company pays for solar photovoltaic energy from 15 to 17.4 per kWh. This helps encourage the development of solar power in the state. The solar power is then sold as part of the Green Power Program.

Commission Accepts BellSouth/AT&T Merger

T he Commission August 18 by a vote of 3-2 accepted the Commission staff recommendation to approve the proposed merger of AT&T, Inc. and BellSouth Corporation in Docket 22682-U. However, the Commission approved the merger subject to the following conditions required by Georgia law.
1. AT&T/BellSouth must con-

tinue to comply with all obligations of an incumbent local exchange carrier under Georgia law and the Telecommunications Act of 1995.
2. AT&T/BellSouth must re-
quest and receive permission before discontinuing any intrastate long distance service.
3. AT&T/BellSouth must re-
port monthly to the Commis-

sion on its progress in developing stand-alone Digital Subscriber Line (DSL) Service.
4. AT&T/Bellsouth must file
documentation to prove that every Central Office in Georgia has been upgraded to be DSL capable. The Commission will examine whether the penalty payments in the performance plan in

Docket 7892-U are adequate to provide the necessary incentives to BellSouth in the face of increased revenues resulting from the merger. In addition, the Commission unanimously approved an amendment offered by Commissioner David Burgess that the Commission will begin a separate proceeding six months after the merger is

completed to examine the effects of the merger on Georgia and determine what, if any, actions should be taken. The Commission, in a 3-2 vote, turned down motions to require the merged companies to offer stand alone DSL service. The Companies filed their notice of merger with the Commission on March 31, 2006.

The Commission accepted briefs and heard oral arguments from all parties on August 8, 2006. The U.S. Department of Justice has already approved the
merger. The Federal Communications Commission is expected to act November 3.

PAGE 4

GPSC NEWS

VOLUME 6 ISSUE 1

Summer NARUC Meetings

T he National Association of Regulatory Utility Commissioners (NARUC) held its annual summer meeting in San Francisco, California July 29 to August 2, 2006. Chairman of AT&T Ed Whitacre delivered the keynote address to a packed meeting room at the San Francisco Marriott. Whitacre, whose company is acquiring BellSouth, told the gathered audience of state regulators, staff and utility representatives that the merger would mean more not less competition. He said AT&T had launched two new services. One is a satellite based broadband ser-

Chairman Wise chats with AT&T CEO Ed Whitacre
vice in areas unable to have DSL. The second is fixed based wi-max. He said the merger would create a "flagship" U.S. company that would be a leader for growth and innovation. He added that

Commissioners Baker and Speir look over the NARUC agenda
state commissions would continue to play an incredibly important role in the process. The summer meeting also featured the roll out of a National Action Plan for Energy Efficiency.

Commission Supports Dig Safely

Commissioner David Burgess was on hand at the recent Georgia Utilities Coordinating Council (GUCC) meeting in Dillard, Georgia. The GUCC receives voluntary support from its members who represent the utility, construction and transportation industries in the state of Georgia. It is made up of local utility coordinating committees which

were created to achieve increased communication between utility companies and the excavation community in the local communities. Each year at the Fall conference, the safety committee recognizes outstanding individuals and companies in Georgia who promote, encourage and demonstrate safe digging practices.

Gary Mason, Commissioner David Burgess, Danny McGriff, and Digger Dog at the GUCC Conference

PSC Participates in Hispanic Safety Fair

The Facilities Protection Unit together general contractors, participated in the 1st annual subcontractors, construction Hispanic Contractors Associa- workers, suppliers, exhibitors, tion of Georgia's 2006 Safety vendors, government and proFair on September 23. The fessional services representaorganizers held the fair to edu- tives with more than 500 people cate the construction commu- in attendance. Exhibitors were nity about safety regulations to on-hand to conduct tool demonhelp reduce construction re- strations, safe excavation praclated accidents and injuries on tices and proper utility locating the job site. The fair brought procedures.

2006 Hispanic Contractors Association Safety Fair

VOLUME 6 ISSUE 1

GPSC NEWS

PAGE 5

Chairman Testifies Before Congressional

c hairman Stan Wise testified September 13 before the House Energy Subcommittee on Energy and Air Quality and urged Congress to support the Nuclear Fuel Management and Disposal Act (H.R. 5360) and end delays in building the Yucca Mountain Nuclear Waste Repository. Wise appeared on behalf of the National Association of Regulatory Utility Commissioners (NARUC). In his testimony, Wise said, "We continue to be concerned with delays in progress on the repository program. In

Panels
the present fiscal year, $750 million in fees are expected to be paid by utilities, from ratepayers, into the Fund, yet Congress appropriated only $99 million for the same period. That means that 87 percent of

the fees collected

are not being used

for their intended

purpose."

Wise also urged the

Committee to op-

pose S. 2099, by

Nevada

Senator

Harry Reid, that

would authorize the

Department of En-

ergy to take title of spent fuel in

dry cask storage and maintain it

at reactor sites for an unspecified

period at a cost that is likely to

be billions of dollars per year.

"Keeping the waste on-site is not

what the utilities and their rate-

payers have paid over $25 billion for. The bill should be rejected," Wise said. Wise called on lawmakers to move cautiously on any interim nuclear waste storage proposals. "We need to know more about the costs and benefits before we consider whether it is appropriate to use the Nuclear Waste Fund to pay for interim storage. Until H.R. 5360, or something like it, reforms the Nuclear Waste Fund appropriations process, a dollar

spent for interim storage is a dollar not available for developing the repository." Chairman Wise also testified before the Energy and Water Appropriations Subcommittee on the future of nuclear energy.
Wise Named to State Energy Advisory Panel
Governor Sonny Perdue named Chairman Wise to the State Energy Advisory Panel which is charged with writing the

Comprehensive State Energy Plan. The group will adopt a plan on December 15 and then present it to the Governor.
Court Upholds Atmos Decision
A Fulton Superior Court judge upheld the Commission's decision in the 2005 Atmos Energy rate case. As of press time, Atmos had not decided whether to appeal the judge's ruling to a higher court.

2006 Bonbright Conference

T he 2006 annual Bonbright Center Electric and Natural

Carolina Commission Chair G. O'Neal Williams, and Florida

Gas Conference took place Oc-

Commissioner Katrina Tew.

tober 5-6 in Atlanta. Commis-

The theme of this year's con-

sion Chairman Stan Wise par-

ference was "Integrating

ticipated as a member of the

Stakeholder Interests for a

State Commissioners Forum on

Brighter Energy Future."

Thursday, October 5. Other

The Bonbright Conference is

state officials on the panel were

sponsored by the University of

Arkansas Commission Chair

Georgia Terry College of Busi-

Sandra Hochstetter, South Chairman Wise on Bonbright Panel ness.

PAGE 6

GPSC NEWS

VOLUME 6 ISSUE 1

GUCC Fall Conference PSC Award Presentations

Pipeline Safety/Facilities Protection Manager Danny McGriff received special recognition at the 2006 GUCC Fall Conference in Dillard, Georgia on October 4. Danny received the "GUCC Outstanding Achievement Award" for his significant contributions in "Keeping Georgia Safe and Connected," and providing leadership in the reduction and prevention of damage through legislative, educational and enforcement efforts. Commission staff made its own presentations to acknowledge the contributions

that people in the industry have made in serving and protecting the people of Georgia as well as preserving our underground infrastructure. The following recipients were presented with the Pipeline/Facilities Safety "Award of Excellence" for their contributions. Neil Porter, BellSouth

Telecommunications, Jeff Baggett, City of Summerville, Mark Monroe, Georgia Power Company, Keith McEntire, STS, Inc. and David Lewis, BellSouth Telecommunications.

Speir Delivers Commencement
Address
Commissioner Angela Speir delivered the commencement address June 25 at the Keller Graduate School of Management of DeVry University/Georgia graduation ceremonies at the Gwinnett Civic Center. Speir spoke to several hundred graduates who received masters and doctorate degrees.

Commission Hosts
International
Visitors
T he Commission recently hosted two delegations of international visitors and briefed them on utility and energy regulation in Georgia. Commissioners David Burgess and Doug Everett on August 17 spoke to a group from Kazakhstan, a former part of the Soviet Union but now an independent republic in Asia.

Chairman

Wise, Execu-

tive Director

Deborah Flan-

nagan

and

Electric Unit

Director

Sheree Kerni-

zan briefed a

group from Ja-

pan August 7

on the Commis-

Commissioners Burgess and Everett speak to group from Kazakhstan

Chairman Wise Greets visitors
sion's regulation of electric utilities.

VOLUME 6 ISSUE 1

GPSC NEWS

Employee News

deLancey Todd retires

L ongtime Commission employee deLancey Todd decided to retire and spend more time with her grandkids and pursue the good life after 34 years in state government. Her fellow employees, friends and family gave deLancey a surprise retirement party August 31 to wish her farewell and good luck. Her co-workers honored her with various "proclamations" and a letter of appreciation from Governor Perdue.

Commissioner Baker joins Dona Cucich in wishing deLancey farewell

PAGE 7
deLancey's daughter and granddaughter joined her
co-workers for the big send off.

The Regulators Run Again

C ommission runners and supporters for the sixth

consecutive year took part

in the annual Kaiser Perma-

nente Promina Corporate

3K Run/Walk on September

21. Special thanks to Com-

missioner Wise for spon-

soring our wonderful

t-shirts again this year. We

also want to thank John

Kaduk for serving as team The "Regulators" pose for the team

captain this year.

picture before heading to Turner Field

Congratulations
Congratulations to Monique Pringle on her marriage September 2 to Abram Andrews. The couple were married at the Forrest Hills Resort in Dahlonega, Georgia and honeymooned in the north Georgia mountains.

Sympathy

Open Enrollment

O T ur sympathy goes out to James Youngs on the

he annual Open Enrollment Period for the 2007 Plan Year ends on

passing of his father-in-law, Thursday, November 9, 2006. This

Vernon Cross. The funeral year, there will be a common website,

was

held

August

31,

2006

in

www.oe2007.ga.gov, for you to make benefit selections for Flexible Benefits

Knoxville, Tennessee.

and the State Health Benefit Plan.

We express our condolences The website will be available from 4:00

to Sheree Kernizan on the a.m. to midnight each day during Open

ing all selections, insure that information is correct and follow the instructions to confirm. You will be issued two confirmation numbers, one for Flexible Benefits and one for health insurance. Print both confirmation pages and keep for your records. As in previous years, you may re-enter the web-

tragic death of her brother- Enrollment. The site shuts down at site any number of times to

in-law, Ricky Greene on Sep- 4:00 p.m. on November 9, 2006.

change options. However, you

tember 13, 2006. The funeral Follow the login instructions, using

was held September 18, 2006 your SSN as your policy number. You

in Atlanta. Burial was in Mr. will be directed to create a pass-

Greene's

hometown

of

Syl-

word. (Please keep a record of your password for future use.) After mak-

vester, Georgia.

must remember to confirm whenever a change is made. (You will receive a new confirmation number.) For more information contact Human Resources.

PAGE 8

GPSC NEWS

Commission News

Georgia State Holidays For 2006

VOLUME 6 ISSUE 1
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 2 January 16 April 24 May 29 July 4 September 4 October 9 November 10 November 23 November 24 December 25 December 26

November 7-Administrative Session 10-Holiday 16-Committees 21-Administrative Session 23-24-Holiday 30-Committees December 5-Administrative Session 14-Committees 19-Administrative Session 25-26 Holiday 28-Committees

Commission Calendar

January 2007 1-Holiday 2-Administrative Session 11-Committees 15-Holiday 16-Administrative Session 23-24-Georgia Power hearings February 1-Committees 6-Administrative Session 15-Committees 20-Administrative Session
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.

NARUC Annual Convention 2006 November 12-15, 2006 Miami, Florida
Winter Meeting 2007 February 18-21, 2007 Washington, D.C.
Summer Meeting 2007 July 15--18, 2007 New York City, New York
COMMISSIONERS Stan Wise, Chairman
David L. Burgess Robert B. Baker, Jr.
H. Doug Everett Angela Elizabeth Speir
EXECUTIVE DIRECTOR Deborah Flannagan
EXECUTIVE SECRETARY Reece McAlister

SEARUC Annual Meeting 2007 June 3-6, 2007 Little Rock, Arkansas
GPSC ONLINE: www.psc.state.ga.us