GPSC news, Vol. 9, no. 2 (Spring 2009)

GPSC
GPSC News

Volume 8 Issue 2

*Commission Certifies Construction and cost of new units *Cost set at $6.4 billion *CWIP approved *Projected completion in 2016/2017

In this issue
Legislature 2009 Wrap-up 2

Commission Offers

2

Limousine Advice

Commission Approves New 3 AGL Economic Program

Commission Staff Appears 3 on WPBA-TV Program

Commissioner Wise Testifies 4 Before Congress

Commission Hosts ARRA 4 Workshop

Commission Retains SCANA 5 as Regulated Provider

Governor Proclaims Dig

5

Safely Month

Commission Approves Pipe- 6 line for West Georgia Plant

Wise on the Lawmakers

6

Employee News

7

State Holidays

8

Commission Calendar

8

Next Issue July 2009

Commission Issues Plant Spring 2009

Vogtle Decision

T he Commission March 17 ap-

proved the Georgia

Power

Company

(Company) request for

certification to build two

new units at its Vogtle

Nuclear Power Plant in

southeast Georgia. This

certification is required Company and the Commis- develop an alternative

under Georgia law sion Public Interest Advo- risk sharing mechanism

(O.C.G.A. 46-3A-3) for cacy Staff. In addition, to provide some protec-

the Company to proceed Commissioner Wise moved tion from significant cost

with construction of these to allow the Company to overruns to ratepayers.

units and seek recovery of recover the cost of financ- Commissioner

Wise

construction and financing ing the plant during con- said, "CWIP will save

costs from ratepayers.

struction, known as Con- customers money and

A majority of the Commis- struction Work in Progress better ensure that the

sion approved a motion by or CWIP, and approve a creditworthiness of the

Commissioner

Stan recommendation for the Company can withstand

Wise to adopt the stipula- company and the PSC the financing of these

tion signed by both the staff to work together to

(Continued on page 3)

Commission Hosts Federal Stimulus Legislation Workshop

T he Commission held a two-day workshop

March 30 and March 31

to hear from utilities,

telecommunications pro-

viders, state agencies

and other interested parties on how the American

Commissioners listen to presentations

Recovery and Reinvest-

ment Act (ARRA) of 2009 affects regulators, regulated companies and

other Over

state agencies. 50 people packed

the Commission hearing room on the first day of
(Continued on page 4)

PAGE 2

GPSC NEWS

VOLUME 8 ISSUE 2

Legislative News

The 2009 Georgia General Assembly ended April 3

failed to pass during the ses-

with both good news and bad

sion. House Bill

news for the Commission. The

52 stalled in the

good news is that the final Fis-

House Energy,

cal Year 2010 budget contains

Utilities and Tele-

an extra $100,000 in funding to

communications

pay for subject matter experts

Committee. The

who testify in various proceed-

bill was sched-

ings before the Commission.

uled for a sub-

Coupled with the $380,000 rec-

committee hear-

ommended in the Governor's ing on March 9 but the Committee

budget plan, the Commission Chairman inexplicably cancelled

will be able to meet its mini- the meeting on the morning of the

mum requirements in present- meeting with no explanation.

ing alternative evidence in con- The bill's author, Representative

tested proceedings.

The bad news is that the Commission backed legislation to provide for funding in rate cases and other proceedings

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 15, 2009.

John Lunsford (R-McDonough) did manage to attach his meas-
ure to another House bill already in a Senate Committee where it received a do pass recommendation. House Bill 244 however failed to pass out of the Senate Rules Committee
and make it on the debate calendar in the final week of the session. Both measures remain alive and can be acted upon during the 2010 General Assembly which will convene on Monday
January 11, 2010. There Commission tracked a number of other measures which concerned the Commission, its budget and state government operations during this

session. They are listed below. tion.

term for PSC Chairman. Passed

Legislation

H.B. 376-Requires telecommuni- House but tabled in Senate.

H.B. 118 -Amended 2009 cation rate parity. Held in House H.B. 569-Provides for district

Budget. Signed by Governor on Committee.

election of Commissioners. Held

March 13, 2009.

H.B. 396-Requires notice of un- in House Committee.

H.B. 119-Fiscal Year 2010 derage alcoholic laws to motor S.B. 31-Provides for Nuclear

Budget. action.

Awaiting

Governor's

carriers. Failed to get passage. H.B. 404-Brings taxi cabs under

power plant financing. Governor's action.

Awaiting

H.B. 168-Eliminates Universal Commission regulation. Held in The Governor has 40 days from

Access Fund. Held in Senate House Motor Vehicle Committee. the end of the session to either

Regulated Utilities Committee. H.B. 440-Exempts government sign or veto legislation or it be-

H.B. 302-Requires notice of rideshare programs from PSC comes law without his signa-

third party telecommunications regulation. Awaiting Governor's ture.

billing. Awaiting Governor's ac- action.

H.B. 568-Provides for three year

Commission Urges Consumer Awareness in Limousine

Rentals

T he Commission offers some and operate within the state are transportation/limodata.asp helpful advice for Georgians required to be registered and (For bus companies) http://

who may be hiring passenger car- have proof of insurance on file www.psc.state.ga.us/

riers for proms, graduations and with the Commission. A list of transportation/

reunions.

the licensed companies can be BusCompanyData.asp

Be aware of illegal companies. found on the Commission's web- Chauffeurs who drive for li-

Under current Georgia law all pas- site:

censed limousine carriers are

senger carrier companies that fall (For limo companies) http:// required to have permits which

under the Commission's authority www.psc.state.ga.us/

(Continued on page 6)

VOLUME 8 ISSUE 2

GPSC NEWS

PAGE 3

Commission Approves Atlanta Gas Light Plan to Promote Economic Growth

The Commission March 3 meet the needs of Georgia busi- 1. Provide customers with the unanimously approved an ness. Georgia SEED is a five year benefit of a new utility service

innovative program that will al- experimental program that al- extension to new plant sites; 2.

low Atlanta Gas Light Company lows AGLC to invest in capital Offer financing for the purchase

(AGLC) to attract new business projects and is available to cus- and installation of new higher

to Georgia while at the same tomers who can show significant efficiency gas equipment; and 3.

time protecting the environ- economic and environmental Discounted utility rates to help

ment. Known as the "Georgia benefits for the state. Customers lower overall energy costs.

Sustainable Environmental Eco- will have little or no upfront costs The Commission approved five

nomic Development" program or and can pay back the costs over conditions proposed by Commis-

SEED, the program allows AGLC the life of the project.

sioner Lauren "Bubba"

to contract with business cus- "I'm not sure we've ever seen an McDonald, Jr. McDonald said his

tomers to help finance new line initiative that's more progressive conditions were aimed at mini-

extensions, new natural gas and innovative to promote job mizing cross subsidization from

equipment and equipment in- growth than what we've seen projects where AGLC might re-

stallations.

today," said Commissioner ceive greater benefits than the

The Commission and AGLC will Stan Wise.

ratepayers.

work together to determine how Georgia SEED will allow for three

SEED should be designed to best potential avenues for contracts:

Commission Approves Vogtle Nuclear Plant

(Continued from page 1)

Requires the Company to file ber 2008 and in January 2009

costs, which again saves custom- semi-annual construction monitor- during which witnesses presented

ers money."

ing and quarterly status reports testimony and parties entered

Key points of the stipulation in- with the Commission

evidence to support their filings.

clude:

The Company will file the first

Plant Vogtle, located near

Sets the Company's portion of monitoring report on August 31, Waynesboro, Georgia, has been

the certified cost of the new units 2009 with the next report to be in operation since 1987 with the

at $6.446 billion

filed on February 28, 2010.

completion of Unit 1. Unit 2 went

The Company will pay up to Georgia Power filed its certification on line in 1989.
$600,000 per year for each year of request on August 1, 2008. The More information on this issue is construction for an independent Commission held three rounds of filed under Docket Number

Construction Monitor

hearings in November and Decem-

(Continued on page 5)

WPBA-TV Interviews Commission Staff

C ommission staff appeared April 12 on the renowned
WPBA-TV public affairs program "Leyes Cotidianas." Consumer Affairs Director Cynthia Johnson and Public Information Officer Bill Edge took to the airwaves to inform
the audience how the Commission affects consumers,

regulates utility rates, enforces underground facilities
protection, regulates household goods movers and passenger carriers. The show is hosted by Atlanta lawyer Ralph Perales. The show's title means "Everyday Law" in Eng-
lish.

PAGE 4

GPSC NEWS

VOLUME 8 ISSUE 2

Commissioner Stan Wise Urges Congress to Move Cautiously on Mandating Renewable Energy

Commissioner Stan Wise testified February 26 before
the House Energy and Commerce Subcommittee in Washington, D.C. that a mandatory renewable energy policy would do more harm that good both to Georgia and Southeastern United States
utility ratepayers. "I am concerned that a `one size fits all' federal Renewable Portfolio Standard (RPS) mandate fails to recognize that there are significant differences among the states and regions in terms of available and
cost-effective renewable energy resources," Wise said, "and that having such a standard in energy legislation will ultimately substan-

tially increase con-
sumers' electricity bills." Wise warned," Forcing
southeastern utilities to comply with arbitrary renewable resource portfolio requirements will harm ratepayers in the region, because of the limited
amount of renewable resources, enormous amounts of money will flow from ratepayers in Georgia and the south-

east to developers or utilities in other parts of the country or to
Washington, D.C." He said if Congress decides to impose mandated renewable energy then it should take into account the following considerations:
States should be allowed to
develop renewable or clean energy standards that take into
account the resources available in the state or region. This will ensure state to state equity while maximizing the benefits of expanding clean energy.
Targets and timetables
should be practical and allow

state or regional variations depending on the resources avail-
able.
The definition of qualifying
resources that would count to-
ward compliance with a federal standard should be expanded from the list in current proposals. In this regard:
Existing hydro should count
towards compliance the same as existing wind and solar.
Nuclear generation should
be included due to the fact that

it emits no carbon.
The definition of biomass
should be expanded to include all recoverable wood material. This would include whole trees
which are currently excluded from credit toward compliance.
Energy efficiency should be
included as a resource that would count toward compliance. This is a resource that is being expanded in Georgia and the southeast and its use should not be limited in any federal stan-

dard.
Utilizing municipal solid
waste for energy production should be included toward compliance. This is a renew-
able resource that is available across the country and its use will reduce other environmental impacts from its disposal. Finally if there are Alternative Compliance Payment provisions
then payments under such a program should remain in the state where the utility rate-
(Continued on page 6 )

Commission Hosts Stimulus Workshop

(Continued from page 1)
the hearings, which was dedi-
cated to discussing grants for energy efficiency, conservation and reducing energy demands. The second day workshop concentrated on the broadband implications of the ARRA.

Chairman Doug Everett (below) welcomes participants to the workshop

Tom Bond moderates discussion

VOLUME 8 ISSUE 2

GPSC NEWS

PAGE 5

Commission Retains SCANA Energy as Natural Gas

Regulated Provider

The Commission March 17 time for six months will see reason for transfer from Group 1

unanimously

approved their monthly customer service to Group 2 (Group 2).

SCANA Energy as the Natural charge decrease to $6.95. They The Regulated Provider serves

Gas Regulated Provider for a will also be eligible to return to those customers in the Atlanta

two year term beginning Sep- the SCANA Energy deregulated Gas Light Company service areas

tember 1, 2009 and ending Au- market.

that are served by one of the

gust 31, 2011.

The Regulated Provider, estab- nine certificated natural gas mar-

The new Regulated Provider lished under O.C.G.A. 46-4- keters.

contract provides savings for 166, provides natural gas ser-

customers in both Group 1 and vice to low-income consumers

Group 2. Group 1 senior cus- (Group 1) and to customers who

tomers will see their monthly are unable to obtain or maintain

customer service charge drop by natural gas

$1, from $2.95 to $1.95 while service from

Group 2 customers will also see other market-

a $1 decrease in their monthly ers or whose

customer service charge from utility pay-

$10.95 to $9.95. In addition, ment history

Group 2 customers who paid on is cited as

Governor Proclaims April Dig Safely Month

Governor Sonny Perdue joined the Commission
and representatives from the Utilities Protection Center, utilities, excavators, local governments and Senator Mitch Seabaugh in proclaiming April as Dig Safely Month.
Commission Chairman Doug Everett said, "The Commission reminds all Georgians that Call Before

You Dig is the law. Failure to obey the law can
have serious consequences. I am pleased that the Governor has proclaimed April as Dig Safely Month to remind everyone of the impor-
tance of Call Before You Dig."

Commission Approves New Nuclear Power Plants

(Continued from page 3)

consistent with the Company's scheduled to be in commercial

27800.

renewable expansion plans, operation for the summer of

In other action, the Commission adds to fuel diversity and maxi- 2012. Under the IRP statute,

approved the Company's request mizes the life and value of the new power generation cannot

to certify the conversion of Unit 3 unit. As part of the 2007 Inte- be added to the system with-

at its Plant Mitchell generation grated Resource Plan (IRP), the out a Certificate of Public Con-

plant from burning coal to bio- Commission found Georgia venience and Necessity issued

mass fuels. Georgia Power has Power's plan to develop cost- by the Commission.

indicated in its filing that conver- effective renewable resources to

sion of the Plant Mitchell Unit 3 is be reasonable. The plant is

PAGE 6

GPSC NEWS

VOLUME 8 ISSUE 2

Commission Approves West Georgia Pipeline for

Kia Motor Company Plant

T he Commission March 3 the same time, we are ensuring struction and economic feasibilapproved a 12.5 mile long that this pipeline will operate in a ity information within 30 days

steel natural gas pipeline in safe and reliable manner."

of a signed final Commission

West Georgia that will deliver The Commission approved the re- order. All parties in this docket

over 14,000 million cubic feet quest by the City of LaGrange must also file a mutually

daily of natural gas to the Kia (Docket Number 28727) to con- agreed upon Countywide

Motor Company automobile struct the pipeline through Coweta Safety Plan for Coweta County

manufacturing plant now under County to connect LaGrange's ex- within 30 days of the order.

construction in Troup County. isting pipeline to the Transconti- The 2.4 million square foot Kia

The plant is scheduled to open nental Gas Pipeline (Transco) in Motor Manufacturing Plant will

in the fall of 2009. The Com- order to provide natural gas ser- employ more than 2,500 work-

mission action will ensure that vice to the Kia plant. The pipeline ers and produce an estimated

the plant has an adequate sup- will run from the Grantville meter 300,000 vehicles a year.

ply of natural gas for its opera- station to the Transco pipeline in

tions.

Coweta County.

"This pipeline will promote eco- The Commission deci-

nomic development in West sion requires that the

Georgia," said Commission City of LaGrange

Chairman Doug Everett. "At must submit con-

Commissioner Wise Testifies Limousine Advice

(Continued from page 4)
payer resides.

This

money

ergy: Complimentary Climate Legislation."

Policies

for

(Continued from page 2)
are only issued

to

drivers

that

should be available for energy Commissioner Wise has served on work for limousine companies

investments and programs clos- the Commission since 1995, and approved by the Commission

est to and that will have the was Commission Chairman in and who have successfully

best chance of benefiting the 1997, 1999 and 2006. He is a completed a criminal history

ratepayer who will be paying the past President of the National As- investigation permit and vehi-

cost.

sociation of Regulatory Utility cle ID stamps. When making

The subcommittee invited Com- Commissioners (NARUC) and cur- your reservations always get a

missioner Wise to testify at the rently is a member of the NARUC written confirmation to confirm

hearing titled "Renewable En- Board of Directors.

the arrangements.

Commissioner Wise Appears on The Lawmakers

Commissioner Stan Wise appeared March 17 on
The Lawmakers, the daily public affairs program which airs on WGTV-TV when the Georgia General Assembly is in session. Reporter Brittany Evans interviewed Commissioner
Wise in his office following the Commission's decision approv-

ing the Georgia Power Company request to certify new two units
at its Plant Vogtle Nuclear Power plant in southeast Georgia. Wise explained that his vote to allow Georgia Power to collect Construction Work in Progress would save consumers money
prior to the plant's actual operation.

VOLUME 8 ISSUE 2

GPSC NEWS

PAGE 7

Employee News

Dennis Sewell Deployed Again
D ennis Sewell left for a one-year tour in Afghani-

Congratulations
Congratulations to: Tony Wackerly and wife Indah

stan on March 19, his third tour

on the birth of their daughter, Neva

of duty in the Global War on

Utaminingtyas Wackerly. She was born

Terrorism since December 2001.

on April 9. Baby Neva weighed in at

Dennis is a Colonel in the U.S.

7.2 pounds and was 19.7 inches long.

Army Reserve and works in the

Bill and Debbie Edge on the birth of a

Army Signal Corps.

second grand-daughter, Addison Eliza-

Dennis stopped by in uniform to

beth Moore in Asheville, N.C on Febru-

say farewell to his way to begin

co-workers on his preparatory

seas.

Dennis

hopes

to

re-

ary 24. Addison weighed 8 pounds ounces and was 20.75 inches long.

13

training before heading over- turn in early 2010.

Commissioner Chuck Eaton celebrated the big 4-

Happy Birthday

0 on April 1. After a spoof e-

mail from unknown parties invit-

ing staffers to a birthday party,

a birthday cake

appeared in the

Commissioner's

office on April 2

along with deco-

rations inside (above) Beverly Franks cuts the

and outside his Commissioner's birthday cake while

chambers.

decorations line his office entrance

(right)

Bernard Cameron Retires

L ong -time Commission Commission and the state of Georgia. Baker and Chuck Eaton prestaff member Bernard Bernard's family, friends and co- sented Bernard with a resoluCameron retired on March 27 workers joined him for his retirement tion honoring his years of after 32 years of service to the party. Commissioners Robert dedication and work.

PAGE 8

GPSC NEWS

VOLUME 8 ISSUE 2

Commission News
Georgia State Holidays For 2009

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's Birthday Washington's Birthday Christmas

January 1 January 19 April 27 May 25 July 3 September 7 October 12 November 11 November 26 November 27 December 24 December 25

April 2009 2-Committees
7-Administrative Session 16-Committees 21-Administrative Session 27-Holiday 30-Committees May 2009
5-Administrative Session 14-Committees 19-Administrative Session 25-Holiday 28-Committees

Commission Calendar

June 2009
2-Administrative Session 11-Committees 16-Administrative Session July 2009 2-Committees 3-Holiday
7-Administrative Session 16-Committees 21-Administrative Session

NARUC Summer Meeting 2009 July 19-22, 2009 Seattle, WA
Annual Convention 2009 November 15-18, 2009 Chicago, IL
Winter Meeting 2010 February 14-17, 2010 Washington, D.C.

SEARUC Annual Meeting 2009 June 21-24, 2009 Charleston, South Carolina
GPSC ONLINE:.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 Doug Everett, Chairman
Lauren McDonald, Jr. Robert B. Baker, Jr.
Chuck Eaton Stan Wise
EXECUTIVE DIRECTOR Deborah Flannagan
EXECUTIVE SECRETARY Reece McAlister