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