GPSC news, Vol. 8, no. 1 (Winter 2008)

GPSC
GPSC News

Volume 7 Issue 1

Rate Case Decision
*$675 million decrease in Company request $323 million increase in rates *Stable rates for three years

In this issue

2008 Legislature Opens

2

Commission Adopts Open 3 Hearing Rule

Speir Votes No on Rate

3

Increase

Commission Approves

4

Integrated Resource Plan

Wise Supports Program

4

to Save Consumers

Money

Commission Urges Con-

5

sumers to Check Natural

Gas Rates

Commission Issues Georgia Winter 2008

Power Rate Decision

T he Commission

voted 3 to 2

December 18

to approve a

settlement in

the Georgia

Power Com-

pany rate case.

This settlement

reduces the

company's

original increase

rate request

by

over

of Consumer Affairs and $638 million for (which represents resi- 2010. Under the Com-

$675 million and means the average Georgia Power residential monthly bill will rise by $5.24 in 2008 but the rates will remain the same through 2010. The Commission Public Interest Advocacy Staff, the Company, the Governor's Office

dential and small busi- pany's proposal, by

nesses) and other par- 2010, the typical house-

ties had signed the hold would have paid

agreement.

$10.29 more per month.

The Company had re- The approved settlement

quested an increase of will increase Georgia

$406 million in 2008 Power base rates $99.7

with additional increases

(Continued on page 2)

of $597 million for 2009

Commission Approves Hearing Aid Distribution Program Add Numbers to No Call List Cap-Tel Program Begins This year
Employee News
State Holidays

5 Eaton Assumes Duties as Commission Chair

Commissioner Chuck

6

Eaton January 15 be-

statewide Republican candidates in the entire coun-

gan a one-year term as

try to beat an incumbent

6 Chairman of the Commission for 2008. The Com-

during that election year.

Commissioner

Eaton's

mission Chairmanship is

complete biography is on

rotated annually among

the Commission web site,

7 the five Commission mem-

www.psc.state.ga.us.

bers based on Georgia law

Chairman Eaton an-

and Commission rules.

nounced that Commis-

Eaton is in the second year

sioner Doug Everett will

of his first six-year term on

serve as vice-chairman

8 the Commission. He was

and made the following

first elected in December Commissioner Chuck committee assignments:

2006 as one of only two

Eaton

(Continued on page 2)

PAGE 2

GPSC NEWS

VOLUME 7 ISSUE 1

2008 Legislature Underway

T he 2008 Georgia General Assembly opened January 14 under the Gold Dome with water, taxes and transportation the big issues facing the Representatives and Senators. As of this writing, the Commission has appeared before the House Budget Subcommittee on Economic Development on its Amended Fiscal Year 2008 budget request. The Commission is not requesting any new funding at this time in the AFY 2008 budget. The Governor's FY 2009 Budget provides an additional $99,625 to the Commission for consultants and outside experts. The Commission, operating under Office of Planning and Budget

in FY 2009. The Governor's

guidelines, had requested a $200,000 increase for these experts to handle some of the complex proceedings the Commission will handle
recommended

If you have a story for the next GPSC News, please send to Bill Edge, bille@psc.state.ga.us. Next issue deadline is April 16, 2008.

budget for FY 2009 includes a 2.5% pay raise for state employees beginning January 1, 2009 and a 2.5% raise for public school teachers beginning September 1, 2008. The budget also includes an increase in health care premiums of 7.5%. The House and Senate held joint budget hearings the week of January 22 listening to budget requests from the larger state agencies. It is expected that the House will pass the Amended Budget in early February. The session by law can only meet for 40 days. Last year's session ended on April 20, 2007.

Georgia Power Rate Case Decision

(Continued from page 1)
million annually and establish an environmental recovery tariff that would allow the Company to collect another $222 million per year to recover costs of environmental controls required by state and federal regulations. Other terms of the settlement include: 1. Sets the Company's rate of return at 11.25%. If the Company earns in excess of 12.25%,

one-third of the excess earnings (CPP). CPP is a Time-of-Use

will be credited to the Environ- (TOU) rate design with a

mental Recovery Costs with the "floating" critical peak period.

remaining two-thirds used for The pilot program is a first for

rate reductions for all customer Georgia residential customers.

classes.

The Company filed its rate re-

2. A pilot program initially involv- quest with the Commission on

ing about 1,000 Georgia Power June 29, 2007. The Commission

residential customers that will held three rounds of hearings in

allow Georgia Power residential October and November of this

customers to save money and year. The new rates took effect

control their energy costs on January 1, 2008.

through Critical Peak Pricing

Commissioner

Commission Approves New Natural Gas Marketer

Eaton New Chair

The Commission January 2 dustrial customers in Georgia, a p p r o v e d C o n s t e l l a t i o n according to its filing on June

(Continued from page 1)

NewEnergy- Gas Division LLC 20, 2007 with the Commis-

Commissioner Stan Wise will (Constellation), Docket

sion. The Louisville, Kentucky

chair the Telecommunications Number 25425, as a certiCommittee, Commissioner Robert fied natural gas marketer

based company currently serves commercial and indus-

B. Baker, Jr. will chair the Energy in the state of Georgia.

trial customers in 28 states

Committee, and Commissioner Constellation plans to

and two Canadian provinces.

Doug Everett will chair the Trans- serve commercial and inportation

(Continued on page 6)

VOLUME 7 ISSUE 1

GPSC NEWS

PAGE 3

Commission Adopts Open Hearing Rule

T he Commission August 21 adopted an Open Hearing Process rule, also known as "Ex Parte Rule". While the rule the Commission adopted is not as strong as the version originally proposed by Commissioner Angela Elizabeth Speir, she called it "a good first step towards insuring that Commission decisions are made based solely on the evidence in the record, not based on back-room deals or `off the record' conversations." The final rule approved is a result of Commissioner Speir's second attempt to get the Commission to adopt an ex parte rule. She first proposed an ex parte rule two years ago that failed to win

approval. The Open Hearing Process rule as adopted puts limits on ex parte communications once the record in a contested case is closed. An ex parte communication is a communication by one party with a Commissioner about a case without the other parties to the case being present or having the opportunity to respond and without members of the public being able to know what was said. Commissioner Speir added, "Prohibiting these 'off the record' conversations during the critical decision making phase of the process is of crucial importance to the integrity and fair-

ness of the process. This rule isn't perfect, but it is a big step in the right direction for open government. Georgians deserve to have confidence in the decisions of their elected Representatives on the Commission. I am optimistic that this rule will go a long way towards restoring the public's confidence that the Commission's decisions are fairly decided and are based on what was said in the open hearing room--not behind closed doors."

Commissioner Speir Votes No on Georgia Power Case

C ommissioner Angela Elizabeth Speir voted against the increase in Georgia Power rates December 18. In her statement following the vote she said, "the Commission set rates today that are much higher than they should be." Speir noted that these higher rates will remain in effect through 2010. This settlement would increase the average resi-

dential customer's bill by about $5.23 a month. However, she noted that the Commission's Public Interest Advocacy Staff had filed testimony in the case that the Company's current rates should not be increased at all. Instead, the

Staff had testified that the rates should be reduced $20 million per year. "The biggest single factor in this unnecessary rate increase is excess profit," said Speir. "The Company is entitled to a reasonable return on its investment, no more and no less. In today's decision, the Commission approved a return on equity (ROE) of 11.25% for the

Company, and that is simply too high." "During the hearings on the rate case," Speir said, "the Public Interest Advocacy Staff testified that an ROE of 10.25% would allow the Company to earn a reasonable return. Currently, the average ROE's being awarded to electric utilities nationwide are 10.0% to 10.25%, and Georgia Power is a lower risk company

than the average electric utility. The difference between an ROE of 10.25% and 11.25% is $100 million for each of the 3 years of the settlement order that is $300 million! It is simply unreasonable to ask ratepayers to give the Company an extra $300 million more than is necessary for the Company to earn a reasonable return." "Another problem I have with

the settlement order and this one may be small from the standpoint of the Company's revenue requirement, but it is very big from the standpoint of the affected customers is that while it raises the average residential bill by over $5.00 per month (the estimate is $5.23 at 1000 kWh), it does nothing to raise the senior citizen low-
(Continued on page 5)

PAGE 4

GPSC NEWS

VOLUME 7 ISSUE 1

Commission Approves Stipulation on Georgia Power Company's Integrated Resource Plan

T he Commission July 7 unanimously approved a stipulated agreement resolving all contested issues in Georgia Power Company's 2007 Integrated Resource Plan. Eleven of the 18 parties--ranging from groups representing residential and industrial customers to groups representing independent power producers and energy conservation proponents-- agreed that the stipulation fairly balanced the positions of the parties when taken as a whole. This compromise was reached

after extensive negotiations. The two most contentious issues were the Company's request for a waiver from the Commission's competitive bidding process for new power plants and its demand-side management (DSM) programs. Under the agreement Georgia Power will still have to issue a Request For Proposals (RFP) for the base load generating plant needed in 2016 and 2017, but it can use an accelerated schedule. The RFP will be issued in November 2007 and the Commission will make its decision certifying the cost and type of

generating plant in December 2008. Construction can begin in 2009. A variety of new energy efficiency programs were approved through this stipulation. The DSM Working Group will study the methodology used to calculate the savings from the various DSM programs and within 60 days the Company will apply for national certification of its Green Energy Program.

Commissioner Wise Calls for Program to Save Electric Customers Money

Commissioner Stan Wise says Georgia Power consumers will save money and control their energy costs through a pilot program with real-time pricing rates for residential consumers included in the December 18 Georgia Power Company rate case settlement. Commissioner Wise

proposed the pilot program earlier this year. Real- time pricing programs encourage consum-

ers to take advantage of lower rates by shifting energy consumption to periods when rates are lowest. Consumers who enroll in the pilot program use a special meter that records electricity consumption at hourly intervals. Georgia Power alerts consumers to limit usage during hours when electricity rates are

higher by sending price signals Under Commissioner Wise's pro-

via phone or electronic mail the posal, the consumer is rewarded

preceding day.

for shifting consumption, but is

The pilot will begin in the sum- no worse off if they do not re-

mer of 2008 and initially include spond. Consumers would not

as many as 1000 customers. be charged a higher rate for

The $2 per month administra- electricity usage than they pay

tive fee will be waived during now, but would receive a rebate

the pilot program. Once the RTP if electricity is curtailed during

program becomes permanent peak periods.

there will be a $2 per month fee "Consumers are not sensitive to

during the months of June cutting power during peak peri-

through September.

ods because our regulatory system insulates them from what is happening on the power grid," said Wise. "If we encourage even a small percentage of customers to participate in real-time pricing, it will have a significant impact on reducing power spikes during peak demand, which reduces the stress on the entire
(Continued on page 5)

VOLUME 7 ISSUE 1

GPSC NEWS

PAGE 5

Commission Urges Natural Gas Customers to Check

Rates

T he Commission is urging consumers on a variable rate plan to see how their rate compares as many customers are paying unnecessarily high rates and could save as much as $50 or more. The PSC' web site chart has been updated to better show how the rate existing customers are paying compares to other options. Depending on the marketer used, the bill of a typical residential natural gas customer using 141 therms in January 2008 month ranges from $173.16 (Fireside Natural Gas) and

$180.06 (Coweta-Fayette EMC Natural Gas) to $224.81 (Georgia Natural Gas' Market Variable Plan) and $227.80 (SCANA Energy's Standard Variable Plan). That is $50 or more for one month! Some marketer variable rate plans started customers out at a competitive price; but, over time, the prices have increased and the plans have become less and less competitive. So, even consumers who shopped around when they initially signed up for their variable plan need to compare the prices they are being charged today.

Different marketers charge very different prices. In addition, the prices that some marketers charge their long-term customers may be much higher than the prices charged to their newer customers. So, even switching plans within the same marketer can save a consumer money. Marketers that charge existing customers higher per therm rates than the current standard variable rate generally will not switch a consumer to this lower cost plan unless expressly asked to do so.

Commission Approves Hearing Aid Distribution Program

On November 1, 2007, the Commission began funding hearing aids for up to 880 low-income Georgia residents at an annual cost of $504,000. This funding follows the Commission's August 7 approval of a plan to implement the provisions of HB 655 that allow the distribution of hearing aids to lower income Georgians. This bill, sponsored by Rep. Bob Smith (R-Watkinsville), added

"other hearing technology" to the list of acceptable uses of the Telecommunications Relay Fund (TRS), which already includes relay service, reading services for the blind, and distribution of telecommunications equipment. The Commission will be contracting with Georgia Lions Lighthouse Foundation, a nonprofit organization that has provided hearing aids to low-

income Georgians for over 30 years. The Foundation currently partners with two hearing aid manufacturers and maintains a network of over 75 audiologists throughout the state.

Speir Votes No on

Wise on Consumer Pricing Program

Georgia Power

(Continued from page 4)

tion and the Internet can now

system and brings down prices for

(Continued from page 3)
income discount. in rates should

Any increase have been

all of us." The pilot program

would

be

a

first

matched by an increase in the for Georgia residential customers.

senior citizen count."

low- income

dis-

Industrial customers

and large in Georgia

commercial have bene-

fited from real-time pricing since

the mid 1980's.

provide households with the hourly price of power. The consumer will know when power supplies are tight and expensive and when they are plentiful and cheap," said Wise. The state of Illinois initiated a

"Technology has made the meters similar residential pilot early affordable for residential applica- last year.

PAGE 6

GPSC NEWS

VOLUME 7 ISSUE 1

Add New Home and Cell Phone Numbers To The No Call

Registry

To avoid unwanted telemarketing calls, the Commission reminds customers to add their new home and cell phone numbers to the No Call List. In 1999 Georgia established a No Call List but in October 2003 combined the Georgia No Call List with the National Do Not Call Registry maintained by the Federal Communications Commission (FCC) and the Federal Trade Commission (FTC). At that time, all 445,000 phone numbers on Georgia's list were automatically placed on the national registry. The 5-year subscrip-

tion for these numbers will end in June 2008. To prevent your number from being dropped from the list next year, residential and wireless telephone customers can renew or register their phone numbers free of charge by calling toll-free 1-888-382-1222 or going online at www.donotcall.gov. (You must call from the telephone number that will be registered with the list.) The expiration date for customers who registered their numbers directly with the National Do Not Call Registry is 5 years from the date of registration. To verify their expiration date,

customers may log on to www.donotcall.gov and click on the "Verify a Registration" button. Enter the phone number and an e-mail address and a verification e-mail will be sent with the expiration date. Customers may also call 1-888-3821222 and select Option 2 to verify registration. Telemarketers are required to update their solicitation lists using the Do Not Call registry every 31 days. The Do Not Call registry is enforced by the FTC and the FCC.

CapTel Service Starts This Year

The Commission August 21 vice in 12 other states.

supported by a monthly surcharge

approved a plan to imple- Under the plan, no fixed or per of $.05 on all residential and busi-

ment captioned telephone minute charges will apply on lo- ness telephone lines in the state.

(CapTel) service beginning cal calls to users of the service; Similar to a traditional telephone,

this year. This service allows instead, the service will be a CapTel phone allows hard of

individuals with hearing loss to funded through the Telecommu- hearing callers to talk and listen

view word-for-word captions nications Relay Service (TRS) to individuals using a traditional

of their telephone conversa- Fund, which is also used for Re- phone. While listening to the voice

tions. The Commission will lay Service, reading services for of the other party, the CapTel

contract with Hamilton Tele- the blind and the distribution of phone also allows the user to read

communications, Georgia's hearing aids and specialized tele- word-for-word captions of the

current relay service provider, communications equipment. Un- other party's conversation on the

which manages CapTel ser- der Georgia law, the TRS Fund is CapTel phone's built-in screen.

Captions are provided by special voice-recognition technology, converting speech into text that appears almost simultaneously with the spoken word. Phones capable of displaying captions are available through the Georgia Telecommunications Equipment Distribution Program administered by the Commission. The Georgia

Council for the Hearing Impaired is under contract with the Commission to provide financially and medically qualified applicants with specialized telecommunications equipment, training and repair services.

New Marketer Approved
(Continued from page 2)
The Commission also approved the assignment of the telephone prefix 2-1-1 to the United Way of the Coastal Empire in McIntosh County in southeast Georgia. United Way will use the 2-1-1 to provide comprehensive information and referral services at no cost to telephone users.

VOLUME 7 ISSUE 1

GPSC NEWS

PAGE 7

Employee News

New Employees

W elcome to the folks who have joined the Commission over the past few months.
Barbara Wolfe (Assistant to Commissioner Everett) Terry Pritchett (Fiscal Office) Samir Ahmed (IT, former contractor) Daphne Jones (Gas) Tara Surratt (Gas) Robert Trokey (Electric) Yolanda Clay (Consumer Af-

fairs, former TRC temp) Christopher Swann (Consultants) Brenda Hogans (Transportation) Donald (Jeff) Baggett (Pipeline Safety) Joshua Lairsey (Pipeline Safety) Samuel Yarley (Pipeline Safety)

Promotion
Danny McGriff, promoted to Unit Director of the Facilities Protection Section.
Graduate
Congratulations to Amanda Morgan Ellis who received a Doctor of Philosophy in Entomology from the University of Georgia on December 15, 2007. Amanda is the daughter of Bruce Morgan.

Births

Sympathy

Farewell

T O F o Samir Ahmed, IT Department, and his wife

ur sympathy goes to Lillian Johnson on the passing of

arewell to Tracy McGoughy, Operations Analyst in the

Rana, a daughter Zeena her mother, Lillian B. Ector on No- Consumer Affairs Unit who left

Maryum Ahmed, on December vember 18, 2007.

December 19. She had worked at

27.

We mourn the loss of co-worker the PSC for the past five years.

To William Upshaw and his Nakeisha Bowman who passed Best wishes to Ralph Stamp who

wife a daughter, Abigail Olivia away October 22, 2007.

retired November 29 following 18

Upshaw, on December 31.

Nakeisha had worked at the Com- years with the state and the Com-

mission in Consumer Affairs since mission. Ralph was a Utilities Ana-

2002.

lyst who

worked on

many rate

case.

Commissioner Wise Celebrates Birthday
Commissioner Stan Wise treated staff to lunch January 16 to celebrate his birthday.

PIO Returns
B ill Edge, the Commission's Public Information Officer and Legislative Liaison, returned November 1 from active duty in Iraq. Bill is a member of the Navy Reserve.

PAGE 8

GPSC NEWS

VOLUME 7 ISSUE 1

Commission News
Georgia State Holidays For 2008

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 21 April 28 May 26 July 4 September 1 October 13 November 11 November 27 November 28 December 25 December 26

February 5-Administrative Session 14- Committees 19-Administrative Session 28- Committees
March 4-Administrative Session 13- Committees 18-Administrative Session 27- Committees

Commission Calendar

April 1-Administrative Session 10- Committees 15-Administrative Session 31- Committees
May 6-Administrative Session 15- Committees 20-Administrative Session 29- Committees

NARUC Winter Meeting 2008 February 17-20, 2008 Washington, D.C. Summer Meeting 2008 July 20-23, 2008 Portland, OR Annual Convention 2008 November 16-19, 2008 New Orleans, LA

SEARUC Annual Meeting 2008 June 1-4, 2008 Savannah, Georgia
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 Chuck Eaton, Chairman
Robert B. Baker, Jr. H. Doug Everett
Angela Elizabeth Speir Stan Wise
EXECUTIVE DIRECTOR Deborah Flannagan
EXECUTIVE SECRETARY Reece McAlister