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