GPSC news, Vol. 8, no. 2 (Spring 2008)

GPSC
GPSC News

Volume 7 Issue 2

Marketer Accepts Settlement Spring 2008

GNG Settlement *100,000 customers to receive $25 credit *$2.5 million credit cap *Civil claims not prohibited *GNG will not object to new rulemaking

in Consumer Cases

N atural gas marketer Georgia Natural Gas (GNG) on March 6 ac-

capped at $2.5 million.

In this issue

cepted a settlement to If more

resolve issues stemming t h a n

2008 Legislature Ends

2 from numerous consumer

complaints about the

marketer's variable rate

Georgia Power Files New Fuel Cost Recovery Case
Atmos Files Rate Case
Wise Applauds Approval of Cell Tower Policy
Commission Revises Natural Gas Rules
Staff Visits Nuclear Power Plant Vogtle
UGA students and faculty visit Commission

3 plans. A majority of the

Commission voted to ac- 100,000 customers qual-

cept the settlement pro- ify for the credits, the 2008 cycle to communi-

3 posed by Commission $25 credit will be re- cate to their legacy cus-

Chairman Chuck Eaton.

duced accordingly.

tomers the opportunity

4

The terms of the proposal include:
Affected GNG custom-

Any remaining funds for the credit and that
not credited to custom- they are offering other ers would be disbursed rate plans to which the

4

ers up to the first 100,000 as the Commission de- customers may switch.

will receive a $25 credit if termines.

GNG will not object to

they switched to another All credits will be is- the Commission's issu-

5

GNG plan between December 1, 2006 and July 31, 2008. The total

sued in August 2008.

ance of a Notice of Pro-

GNG will use bill in- p o s e d R u l e m a k i n g

serts for two billing cycles (NOPR) to require that

6 amount of credits will be no later than the May

(Continued on page 2)

Commission Approves Low Income Grants

Commission Holds Hot Weather Disconnection Workshop Employee News
Retirement
State Holidays
Commission Calendar

M 6

ore than 26,000 low- grants will be disbursed over the last several

income

Georgia from the natural gas Uni- years. This increase is

households on the Atlanta versal Service Fund (USF). a substantial problem

7 Gas Light Company (AGLC) Only those customers on for all consumers. But, system will be eligible to the AGLC delivery system it is especially difficult

receive grants up to $250 will be eligible. 7 each to help pay their win- Commissioner

for low income conAngela sumers and senior citi-

ter natural gas heating Speir, who made the mo- zens on fixed incomes.

8

bills following the Com- tion to provide assistance, mission unanimous ap- said, "The

While the increases may be beyond our

proval February 21 of cost

of

control, we do have the

8 more than $6.6 million in natural gas

grant money to the Geor- has

in-

ability to help Georgia families and mitigate

gia Department of Human creased

the problem using the

Resources (DHR). The dramatically

(Continued on page 2)

PAGE 2

GPSC NEWS

VOLUME 7 ISSUE 2

2008 Legislative Report

T he final gavel has fallen on the 2008 session of the Georgia General Assembly. The Legislature adjourned sine die on April 4. The lawmakers did the one thing they had to do in this 2008 session, pass a budget for FY 2009, HB 990. The House passed the conference committee report overwhelmingly 1514 while it sailed through the Senate 51-0. The budget gives the Commission an additional $200,000 for subject matter experts, $100,348 over the Governor' recommendation. While the conference committee cut back the $360,822 the House put in, we managed to get the conference commtte to

agree to this

additional

funding. Total

state funding

for the Com-

mission will be

$10,348,009;

including fed-

eral funds, the

total funds are

$11,018,009.

The

final

budget includes a 2.5% pay raise

for state employees and teachers

and an additional pay package for

law enforcement but the budgets

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

cuts the state's contribution to employees' health insurance premiums, meaning state employees will be paying more for health insurance in 2009. The Governor has 40 days to sign it, use his line item veto or let it become law without his signature. The 40 day deadline is May 14. In other action, lawmakers gave final passage to SB 379, the substitute to SB 408, the telecommunications uniform franchise fee application process. It now goes to the Governor's desk. The session ended without any legislation for tax cuts or funding for transportation and trauma care.

Marketer Settlement
(Continued from page 1)
marketers provide notice to existing customers when they create new pricing plans and when they retire existing plans. Nothing in the settlement prevents consumers from pursuing any civil claims they may have against the Company.

Commission Approves New Gas Marketer

T he Commission April 1 approved the application of Stream Georgia (Stream) for a natural gas marketer certificate of authority, Docket Number 24849. Stream, an affiliate of its Texas based parent company SGE, has said it will rely upon the MultiLevel Marketing program of its affiliate Ignite to promote its

natural gas commodity sales service in Georgia. Stream becomes the 13th currently certificated natural gas mar-
keter in Georgia.

Grants

will be 6.2% of the total grant or citizens on the AGLC system

(Continued from page 1)

$412,315 for a total USF dis- since the advent of natural gas

USF. Assisting low-income resi- bursement of over $7 million. deregulation in 1998. Addition-

dential consumers in times of DHR will continue to be required ally, a total of $117.8 million in

emergency is one of the pri- to file monthly financial reports to total grants and refunds have

mary uses of the fund."

provide a detailed accounting of been approved by the Commis-

The Commission will also pro- all funds used from the USF.

sion to all natural gas customers

vide funds to cover the admin- The Commission has disbursed on the AGL system since 1998.

istrative costs incurred by the more than $59.1 million in re-

local Community Action Agen- funds and grants to assist Geor-

cies in processing the applica- gia's natural gas low-income sen-

tions. The administrative costs ior citizens and other low-income

VOLUME 7 ISSUE 2

GPSC NEWS

PAGE 3

Georgia Power Files New Fuel Case

T he Commission is reviewing the Georgia Power Company request for an increase in its fuel cost recovery rates filed February 29 with the Commission. Following hearings this spring, the Commission will issue a decision on the request in May. Here are some facts about the Georgia Power fuel cost recovery rate case: The Company is seeking an increase of $222 million in rates to recover its increased costs for fuel, primarily coal, used to generate electricity. If approved, this request would increase the average residential customers' monthly bill by an estimated $2.82. Georgia law allows electric utilities to recover their fuel

costs, prudently incurred, on a dollar for dollar basis. The utilities are not allowed to make a profit on their fuel costs. Georgia law requires the Commission to issue a decision on the Company's request within 90 days of the Company's filing. The last time the Company requested a fuel cost rate increase was in January 2007. In that case, Georgia Power sought an annual increase of $416 million in revenues. Ultimately, the Commission accepted a staff recommendation to approve a stipulation with the Company that reduced the Company's request by $44 million. The filing and hearing schedule for this case is:

April 15, 2008 Commission staff and intervenors file testimony April 22, 2008 Company files rebuttal testimony April 29 and 30, 2008 Commission conducts hearings May 9, 2008 All parties file proposed orders May 20, 2008 Commission issues its decision during Regular Administrative Session.

Commission Sets Hearing into SCANA Allegations

The Commission will hold hearings late this spring into allegations by the Commission staff that natural gas marketer SCANA Energy (SCANA) violated state law and Commission rules. A majority of the Commission voted March 6 to hold the hearings into allegations stemming from numerous consumer complaints about the marketer's variable rate plans.

The vote follows the marketer's rejection of a proposed settlement adopted by the Commission on March 4, 2008. The hearings, known as a Rule Nisi proceeding (or show cause hearing) will take place according to the following schedule:
April 22, 2008--Commission
staff pre-files testimony
May 7, 2008--Intervenors

file testimony
May 19, 2008--Rebuttal
testimony filed June 17 through June 18, 2008-- Hearings

Atmos Energy Rate Case Hearing Schedule

The Commission April 1 adopted a procedural and scheduling order for the upcoming Atmos Energy rate case, Docket Number 27163. The Company filed its request to increase its rates on March 20. According to the filing, the Company is seeking an increase in its base rates of

$6.1 million annually or about $4.70 on the average customer's monthly bill. The schedule for hearings and filings is as follows: June 30-July 2 Company direct testimony August 12-13 Staff and intervenor testimony

September 3-4--Company rebuttal testimony
(Continued on page 5)

PAGE 4

GPSC NEWS

VOLUME 7 ISSUE 2

Wise Applauds Approval of Cell Tower Policy

Commissioner Stan Wise applauds the Commission's approval February 5 of the Georgia Power Company (Company) policy to allow telecommunications companies to place communications facilities, such as cellular telephone antennas, on the Company's electric transmission facilities. Commissioner Wise first called for Georgia Power to explore the formation of this policy in December 2006. "I am extremely pleased that the Commission has approved this program that will have societal benefits as well as provide revenue that could be used to benefit ratepayers," said Wise.

The policy establishes procedures that allow Georgia Power to recover costs associated with leasing space for wireless communications facilities on its transmission facilities while at the same time protecting ratepayers' interests. Ratepayers would receive half of any revenues from the co-location of telecommunications facilities. "This policy will ensure that ratepayers are treated equitably and that all Company personnel are properly trained in safety

procedures," added Commissioner Wise. There are currently co-location programs operated by 12 utilities in 11 states: California, Delaware, Florida, Illinois, Maryland, North Carolina, Nevada, New York, Ohio, South Carolina, and Tennessee. Commissioner Wise was first elected to the Georgia Public Service Commission in 1995 and he previously served as Commission Chairman in 1997, 1999 and 2006. He is also a past President of the National Association of Regulatory Utility Commissioners (NARUC).

Commission Revises Natural Gas Rules

The Commission on February 5 on a 4-1 vote, approved a revised Commission rule that prohibits a certificated natural gas marketer from preventing consumers from switching their natural gas service to another marketer or provider. The rule is specifically aimed at ensuring that natural gas customers who live in apartments are not

prevented from switching marketers. (Docket Numbers 8044 and 15651) The rule places restrictions and notification requirements on the natural gas marketers' ability to trade customers; clarifies the administrative procedures for certifying marketers; and expands the financial information each marketer must file

with the Commission on a quarterly basis. The rule will take effect 20 days after being filed with the Georgia Secretary of State.

Commission Issues Limousine Safety Tips

S pring is in the air and with it and comes planning for proms 46-

and graduations. The Commis- 7-

sion is offering some helpful

advice for Georgians who may 85.4) all limousine companies

be hiring limousines for these are required to be registered

events.

and have proof of insurance on

Be aware of illegal limousine file with the Commission. A list

companies. Under current Geor- of the licensed companies can

gia law (O.C.G.A. 46-7-85.3 be found on the Commission's

website:

http://

www.psc.state.ga.us/

transportation/limodata.

Chauffeurs who drive for li-

censed limousine carriers are

required to have permits

which are only issued to driv-

ers that work for limousine

companies approved by the

(Continued on page 5)

VOLUME 7 ISSUE 2

GPSC NEWS

PAGE 5

Staff Visits Plant Vogtle
F ourteen Commission staff members visited the Alvin W. Vogtle Electric Generating Plant March 14 in Waynesboro, Georgia to get a close look at one of the two nuclear power electric generating facilities in Georgia. The plant is operated by Southern Nuclear Services Company and is coowned by Georgia Power, Oglethorpe Electric Generating, Dalton Utilities and the Municipal Electric Authority of Georgia. The staff visited the reactor control room, the turbine generator room and then took a driving tour around the facility. Plant Vogtle has been in operation since 1987 when Unit 1 went on line. Unit 2 went on line in 1989.
Staff in front of a cross section of the reactor containment walls.

Georgia Power is currently evaluating bids for its 2016 power generation needs. Southern Company signed an agreement April 8 with Westinghouse Electric to design and build two new nuclear units at the Plant Vogtle site. Georgia Power will submit the nuclear bid on May 1. The Commission would conduct hearings in late 2008 or early 2009.

The 540 foot tall cooling towers at Plant Vogtle

The two reactor containment buildings at Plant Vogtle

Atmos Energy

Limousine Tips

(Continued from page 3)

(Continued from page 4)

By law the Commission must Commission and who have suc-

issue a decision in this case cessfully completed a criminal his-

within six months of the com- tory investigation from the Georgia

pany's filing.

Department of Driver Services. A

The Commission will issue its carrier operating illegally will not

decision at a Special Administra- have the Commission's required

tive Session on September 17, proof of insurance and a chauffeur

2008.

working for an illegal carrier may

not have passed the mandatory

background investigation.

When making your reservations always get a written confirmation. As a reminder, contact the company a few days prior to the scheduled event to confirm the arrangements. Remember that the Commission no longer regulates the rates charged by limousine companies so shop around for the most competitive price.

PAGE 6

GPSC NEWS

VOLUME 7 ISSUE 2

University of Georgia Faculty and Students Visit

The Commission hosted missioners Chuck Eaton and the Natural Gas Collaborative forty University of Geor- Angela Speir greeted the UGA Team which is spearheading a

gia students and their profes- delegation and explained the natural gas customer education

sors from the University's Col- Commission's operations.

program. Dr. Jorge Atiles, Associ-

lege of Family and Consumer The delegation visit was a result ate Dean of the College, led the

Sciences February 12. Com- of the College's participation in UGA delegation visit.

Georgia Power Inks Contract on Nuclear Power Plant

G eorgia Power Company announced April 9 that it had signed a contract with Westinghouse Electric Company to build two nuclear reactors at its Plant Vogtle site near Augusta, Georgia. The Company will file its bids for the next generation of base load capacity on May 1. Commissioner Stan Wise noted that,"" Given the global

run on fossil fuels and the corresponding high prices, I am pleased that Georgia Power is keeping the option of nuclear generation open through the Westinghouse contract to potentially build two nuclear reactors. If you believe carbon emissions from fossil fuels contribute to global climate change and you recognize the long term limitations of natural gas, you have to

embrace nuclear power as a means of meeting our energy needs and accommodating economic development. Despite our efforts towards renewable and green power, Georgia is a growth state and we have to ensure we have a diverse energy mix that can meet our needs without relying too heavily on one energy source. other alternatives.

Commission Holds Hot Weather Disconnection Workshop
Commission staff and- days of record high temperaknowledgeable industry, tures over 100 degrees. medical and social service ex- Assistant Consumer Affairs perts gathered March 20 to Director Mike Nantz (shown at
take part in a workshop to dis- the podium at right) said, "The cuss the rules for hot weather workshop was successful in electric utility disconnections. gathering information to better The Commission approved advise the Commission on this emergency disconnection rules very important issue."
last summer following several

VOLUME 7 ISSUE 2

GPSC NEWS

PAGE 7

Employee News

New Employees

W elcome to the following new employees who

Monica Girault-Saindon, GUFPA

have joined the Commission: Darren Dickenson, co-op

Nancy Gibson, Attorney

Russell Steen, IT

Kelli Leaf, Attorney

Will Culbreath, promoted

from TRC temp to Operations

Analyst, Consumer Affairs

Michael Power, Consumer

Affairs

William Oquendo, Consumer

Affairs

Get Well
W e wish a speedy recovery to William Morgan, Transportation Unit, as he recovers from heart surgery. William underwent heart surgery in early April at St. Joseph's hospital. He is doing well but there is no date set for his return to the Commission.

Sympathy

Births

Farewell

O C W ur sympathy goes to Sheree Kernizan, Direc-

adence Ann Kaduk was born March 4 at 1:35 pm, weigh-

e bid farewell and good luck to the following folks

tor Electric Unit, on the passing ing 8 lbs. 1oz. She is the daughter who have moved on:

February 24 of her grand- of John Kaduk, Utility Analyst, John Tucker resigned February

mother, Charity King.

Electric Section, and Mom, Katie. 15 to return to private law prac-

Our condolences to Will Cul- Parents and baby are doing fine. tice. John was an administrative

breath, Consumer Affairs, on

attorney in the Transportation

the death of his father March

Unit.

14.

Katrina Bond resigned April 11.

We extend our sympathy to

Katrina was a utility analyst in the

Earnest Whatley, Internal

Natural Gas Section.

Consultants, on the passing of

his father L.A. Whatley on Feb-

ruary 9.

Retirement Celebration
B est wishes to Tim Hopkins who retired March 31 following 30 years service with the Commission. Tim latest position was as Utilities Finance Director. He started his state career at the PSC in 1977.

Tim's family joins him at the Commission celebration of his retirement

Tim's cake for his send off.

PAGE 8

GPSC NEWS

VOLUME 7 ISSUE 2

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

May 6-Administrative Session 15- Committees 20-Administrative Session 29- Committees June 3-Administrative Session 12- Committees 17-Administrative Session 17-18 SCANA hearing 26- Committees 30-Atmos hearing

Commission Calendar

July 1-Administrative Session 10- Committees 15-Administrative Session 31- Committees August 5-Administrative Session 12-13 Atmos hearings 14- Committees 19-Administrative Session 28- Committees

NARUC Summer Meeting 2008 July 20-23, 2008 Portland, OR Annual Convention 2008 November 16-19, 2008 New Orleans, LA Winter Meeting 2009 February 15-18, 2009 Washington, D.C.

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