GPSC news, Vol. 9, no. 4 (Fall 2009)

GPSC

GPSC News

Volume 8 Issue 4
*STRIDE Program to improve natural gas distribution system *$0.39 increase in October 2009 bills

In this issue

Legislative Update

2

Lifeline Linkup Proclamation 3
Wise Calls for More Aggressive Marketing for 3 Renewable Energy

Commission Fines Illegal

4

Movers

Commission Conducts Rate 4 Training Class

Commission Approves

5

Georgia Power Settlement

Commission Fines Illegal

5

Movers

5

Commission Waives Phone

Book Rules

GUCC Convention

6

Employee News

7

State Holidays

8

Commission Calendar

8

Next Issue January 2010

Fall 2009
Commission Approves Atlanta Gas Light STRIDE Program

T he Commission

October 6 ap-

proved by a 4-1

vote Atlanta Gas

Light Company's

(AGLC) request to

implement a new

program to en-

sure that the

Company's natural gas The Commission approved their bills over the next

distribution system will an agreement in the three years.

be able to handle in- Docket signed by both the The Commission deci-

creased load growth and Commission's Public In- sion means residential,

improve the system's terest Advocacy Staff and commercial and indus-

reliability. The Company AGLC. However the Com- trial customers will pay

has named its proposal mission adopted an an additional $0.39 as

the "Strategic Infrastruc- amendment proposed by part of the monthly

ture Development and Commissioner Lauren AGLC base charge on

Enhancement Program" "Bubba" McDonald, Jr. their natural gas bill be-

or STRIDE (Docket Num- to levelize the increase ginning October 1,

ber 29950.)

that consumers will see in

(Continued on page 2)

Commission Investigates Gwinnett

County Pipeline Cuts

T he Commission is evacuate citizens resulting damage to a four inch investigating two in economic loss and the natural gas line, both

incidents that damaged disruption of traffic and owned by Atlanta Gas

natural gas pipelines in- citizens lives. The first in- Light Company.

side the city of Snellville, cident involved the cutting The Commission is

Georgia on September of a two

charged under Georgia

29, 2009 and Septem- i n c h

law with the enforce-

ber 30, 2009, at U.S. n a t u r a l

ment of Georgia's Util-

Highway 78 and Fountain gas line

ity Facility Protection

Drive.

while the

Act (GUFPA), passed in

These incidents caused s e c o n d

2000 by the Georgia

local authorities to close i n c i d e n t

General Assembly and

several businesses and involved

(Continued on page 2)

PAGE 2

GPSC NEWS

VOLUME 8 ISSUE 4

Legislative News

Budget time is here again and that means the 2010

1. No new hires 2. Georgia Power Fuel Case, 2. E s s e n t i a l decision in March 2010.

Legislative season is fast ap-

travel only

3. Atlanta Gas Light Company

proaching.

3. Controlled ex- rate case, decision late

Since the 2009 General Assem-

penses

2010.

bly adjourned in April, the state

4. Seeking addi- 4. Georgia Power rate case,

budget news has been dismal

ti on al federal decision expected Decem-

as revenues continue their

funds

ber 2010.

downward drop. Revenues for

5. Utility funding 5. Georgia Power Integrated

September 2009 were 16 per-

for selected rate Resources Plan, decision

cent lower compared to Sep-

case.

expected mid-2010.

tember 2008. Revenues for Fis- The Commission faces any number 6. Atlanta Gas Light Company

cal Year 2010 overall were of major rate cases in the 2010 that Capacity Supply Plan, deci-

down more than 14 percent will impact the budget.

sion in Fall 2010.

compared to FY 2009.

1. Atmos Energy, decision ex- All of these proceedings will

The Commission will present its pected March 2010.

require funding for outside con-

FY 2010 Amended Budget and

sultants and subject matter ex-

FY 2011 Budget to the Governor on November 5. The Commission is dealing with the budget cuts in several ways:

If you have a story for the next GPSC News, please send to Bill Edge, bille@psc.state.ga.us. Next issue deadline is October 15, 2009.

perts to assist the Commission and staff in reaching the most beneficial decision in these cases.

Commission Approves AGLC STRIDE Program

(Continued from page 1)

the Commission's decision:

terly progress reports. Every

2009. Rates will increase by an The new STRIDE program would three years the Company must

additional $0.39 on October 1, allow AGLC to invest approxi- file a copy of its STRIDE plan for

2010 and another $0.40 on Oc- mately $400 million over the next the next three years for Com-

tober 1, 2011. The Company's ten years in infrastructure im- mission review and approval.

original proposal would have provements. Those improvements STRIDE would merge into the

increased bills by $0.95 a could include upgrading the util- existing AGLC Pipeline Replace-

month.

ity's distribution system and liq- ment Program (PRP) that began

The Commission held a hearing uefied natural gas (LNG) facilities in 1998. Under the agreement,

in this docket on September 16, to improve system reliability and Commission Staff will conduct

2009 following the Company's create a platform to meet fore- quarterly financial and prudence

filing on June 15, 2009.

casted growth.

of implementation audits of the

Here are some facts related to AGLC will be required to file quar- STRIDE program.

Commission Probes Pipeline Damages

(Continued from page 1)

natural gas systems inside the underground utilities are not

amended in 2005, aimed at pro- state.

damaged.

tecting underground facilities State law and Commission rules The Commission conducts ongo-

from damage and destruction require excavators to contact the ing education programs to en-

during excavation activities. Vio- Utility Protection Center before sure excavators, utility locators

lations of the Act are punishable they excavate near underground and utility employees are famil-

by civil penalties up to $10,000 utilities in order to have the utili- iar with their duties and respon-

for each violation. In addition, ties' locations marked. Once sibilities under GUFPA.

the Commission also enforces work begins, excavators must

federal safety regulations for use reasonable care to ensure

VOLUME 8 ISSUE 4

GPSC NEWS

PAGE 3

Governor Signs Proclamation for Lifeline/

Linkup Week in Georgia

Georgia Governor Sonny Perdue August 31 pro-

services that can improve and possibly save many lives," said

claimed September 14-18, 2009

Everett, "Access to local emer-

as Lifeline/Linkup Week in Geor-

gency services and community re-

gia. Joining the Governor for the

sources is vital to our low-income

proclamation signing ceremony

and elderly residents. The Com-

at the Capitol was Commission

mission wants residents to "stay

Chairman H. Doug Everett,

connected" and is reaching out to

Consumer Affairs Director

those who need phone service but

Mike Nantz and Public Infor-

can't afford it."

mation Officer Bill Edge.

"We know there are many con-

Lifeline provides a monthly credit

sumers who qualify for this credit

of up to $10 off qualified consum-

but who are not participating,"

ers' monthly local service tele-

Everett said. "We want to get the

phone bill (AT&T gives a $13.50 tion costs).

word out about this valuable pro-

monthly credit) while Link-Up as- "I am pleased that the Governor gram."

sists with paying up to 50% of recognizes the importance of all As of June 30, 2009, there are

installation costs, not to exceed Georgians staying connected to 116,728 Georgians who receive

$30 (AT&T pays 100% of installa- local resources and emergency

(Continued on page 7)

Commissioner Wise Calls for More Aggressive

Marketing of Renewable Energy

C ommissioner Stan Wise in a letter sent August 10 to Georgia Power, says aggressive marketing is the key to promoting consumers' use of renewable resources and ensuring the suc-

Number

renewable products." Wise adds

16753, the that the need to advance further

Renewable the sale of solar power genera-

Rate tariff (for tion is vital to the success of

Georgia

this interaction.

Power) I was He adds that the plan should

cess of any renewable energy program. Wise said, "At the Commission's August 4, 2009 Administrative Session in Docket

critical of the include but is not limited to efforts of all those green energy groups who parties in the have spoken in favor of enmarketing in hanced solar energy production.

Commissioner Wise Takes Part in Bonbright Conference

C ommissioner Stan Wise along with North was one of the participants Carolina Public

The need to have a regulatory environment so that utilities

in the annual Bonbright Confer- Utilities Commis-

could earn a fair return. This

ence sponsored by the Terry sion Chairman

would allow the utilities the fi-

School of Business at the Uni- Edward S. Finley,

nancial capability to provide reli-

versity of Georgia October 8-9, Jr. and Federal

able and reasonably price elec-

2009.

Energy Regulatory

tric service.

Wise took part in a panel discus- Commissioner Phillip Moeller. Wise added that Commissions

sion: "State Regulatory Round- Commissioner Wise emphasized: should be proactive, like the

table: How Do We Afford It?"

(Continued on page 7)

PAGE 4

GPSC NEWS

VOLUME 8 ISSUE 4

Commission Fines Illegal Movers and

Approves 3-1-1 for Albany

The Commission August 18 2. Fined Derrick Hairston, doing state moves within Georgia. unanimously levied a total of business as The Moving Com- (Docket Number 29014)

$10,000 in fines against two pany, $5,000 for holding them- "The Georgia Public Service

household goods movers found to selves out to be a legally licensed Commission continues to take

be operating illegally in Georgia. mover and/or for making illegal action against `rogue movers'

The Commission also revoked the moves without proper authority who violate Georgia laws and

interim operating authority of an- from the Commission. (Docket Commission rules. We will pro-

other mover and denied the ap- Number 29576)

tect consumers from unscrupu-

plication of a fourth for intrastate 3. Revoked the interim operat- lous movers who are uninsured

authority to operate in Georgia. The Commission action included:

ing authority of Yoon Sik Yang, doing business as Pro Express,

and unlicensed," said Commission Chairman Doug Everett.

1. Fined Gary B. Luster, doing Inc. for the carrier's failure to In the past year, the Commis-

business as Motivated Movers, provide the Commission with re- sion has levied more than

$5,000 for holding themselves quested documentation and for $181,000 in fines against illegal

out to be a legally licensed mover failure to maintain required in- movers.

and/or for making illegal moves surance. (Docket Number 29580) In other action, the Commission

without proper authority from the 4. Denied application of A Van Commission. (Docket Number Lines, LLC and issued a cease

approved the assignment of the telephone dialing code prefix 3-

29575)

and desist order to stop all intra-

(Continued on page 7)

Commission Conducts Staff Rate Case Training

C ommission Staff gathered Next, Phil Smith for a full day of rate case a n d A l l i s o n

training on October 8 at the M o r r i s p r e -

Commission offices.

sented "The

The session kicked off with a Revenu e Re-

presentation by Utilities Director quirement Equa-

Tom Bond, "Overview of the tion", an over-

Georgia PSC Rate Case Process view of the the-

in Georgia." Tom explained how ory behind rate

the Administrative Procedures case and the for-

Act applies to the rate case mula for deter-

process.

mining revenue Sheree Kernizan presents her case study

requirements.

entation on "Consumer Rate

Tom Newsome presented Case Issues" followed by

"Rate of Return and Return Tony Wackerly's summary

on Equity" issues. Alicia in "Adding it All Up."

McBride followed with Affili- Natural Gas Director Nancy

ate Transactions while Dan Tyer and Electric Director

Cearfoss and Jamie Barber Sheree Kernizan wrapped

presented "Revenue Issues the day's training with case

and Cost Allocation and Rate studies on the last Georgia

Design."

Power, Atlanta Gas Light and

Consumer Affairs Director Atmos Energy rate cases.

Mike Nantz offered his pres-

VOLUME 8 ISSUE 4

GPSC NEWS

PAGE 5

PSC Approves Settlement in Georgia Power

Request; Delays Filing of Fuel Cost Case

The Commission August 27 In 2009, the Company may In other action, the Commission approved a settlement in amortize no more of the fund also accepted a request from the

Georgia Power's request to use than is necessary to bring the Company to delay the filing of a

up to $324 million of ratepayers' Company's return on equity Fuel Cost Recovery Case until no

funds as revenue to delay filing (ROE) to 9.75%.

later than December 15, 2009.

a rate case this year. The Com- The Company will be allowed The Commission has previously

mission unanimously accepted the agreement to resolve the Company's filing of June 30, 2009 in Docket Number 25060.

to amortize two-thirds or $216 million of the account if the Company does not file a rate case prior to July 1, 2010.

approved two earlier the Company's filing Number 28945. The last Commission

delays of in Docket
approved

The terms clude:

of

the

stipulation

in-

In

2010

the

amortization

is

fuel the

cost recovery Company was

increase on May

for 20,

The Company

will

be

allowed

limited to only that amount that would bring the Company's ROE

2008.

to amortize $108 million of the to 10.15%.

regulatory liability account in The Company will not file a rate

2009, provided does not file a year.

the rate

Company case this

case before July 1, 2010 unless its ROE falls below 9.25% in either 2009 or 2010.

PSC Hands Down Fines for Illegal Movers

The Commission September The actions approved by the operating without Commission

1 levied $170,000 in fines Commission are:

authority.

on nine household goods mov- Mars Van Lines, Inc. $5,000 fine USA Movers Atlanta, a/k/a Mov-

ers for violations of state law and cancellation of its certificate ers, Etc. $15,000 fine for failing

and Commission rules. These for failing to respond to Commis- to comply with lawful Commis-

violations include: 1. Conduct- sion information requests.

sion orders.

ing intrastate moves without Yadco Services. $25,000 fine for Beach Boys Moving. $15,000 fine

proper authority from the Com- operating without Commission for failing to comply with lawful

mission; and 2. Failure to com- authority. Ordered to cease and Commission orders.

ply with lawful Commission or- to desist intrastate moves.

Peoples Moving Company.

ders.

Total Home Care. $5,000 fine for

(Continued on page 7)

PSC Approves Waiver of Phone Book Rule
The Commission October 6 customers may request a free copy The Commission also approved approved a one year of either the printed residential a schedule for hearings in the waiver within the metro Atlanta white pages or a CD ROM by call- Atmos Energy request for a calling area for the printing of ing a toll free AT&T number or go- rate increase. Hearings will be 2010 residential telephone di- ing to AT&T's website to order the held January 12-13, February rectories by AT&T Georgia in directories. Additionally, free cop- 18-19 and March 11, 2010. The
Docket Number 30137. AT&T ies of the CD or printed book will Commission will issue its decihad sought a permanent waiver be available at all AT&T stores. sion in this docket during a of the rule but will proceed with AT&T must include the above infor- Special Administration Session a proposed rule making to fur- mation on bill inserts for the next on March 25, 2010. ther clarify the issue. AT&T three months.

PAGE 6

GPSC NEWS

VOLUME 8 ISSUE 4

Commissioners and Staff Take Part in GUCC Convention

C ommission Chairman Doug Everett and Commissioner

Lauren "Bubba" McDonald, Jr.

along with several Commission

staff members attended the an-

nual Georgia Utilities Coordinating

Council meeting in Dillard, Geor-

gia October 7-9, 2009.

About 250 utility representatives,

excavators and contractors repre-

senting all parts of Georgia con-

vened to share the latest informa-

tion on Georgia's Dig Law, receive

updates from federal officials and

be recognized for their hard work.

Steven L. Fischer addresses the GUCC meeting

The Utilities Protection Center

held their annual meeting in con- Office of Pipeline Safety ap- was one of the top five projunction with the GUCC gathering. plauded the Commission's Pipe- grams in the country. Steven L. Fischer with the U.S. line Safety Program, saying it

There were also break out ses-
sions on permitting for Oversize/ Overweight loads, Overhead Safety and Understanding Georgia De-
partment of Transportation Highway Plans.

Lisa McKnight (with Digger Dog) presents PSC Awards; Commissioner McDonald (right) prepares to join the Motorcycle Rally
Lisa McKnight, Pipeline Safety, handed out the Commission's Awards to recognize special achievements in underground safety. One of the fun highlights of the meeting was its annual Motorcycle Rally, a two hour ride from Dillard into North Carolina and back with Commissioners Everett and McDonald and PIO Bill Edge
(right) taking part.
Commissioner Everett and his "hog"

VOLUME 8 ISSUE 4

GPSC NEWS

PAGE 7

Wise takes part in 2009

Employee News

Bonbright Conference

(Continued from page 3)

Wise added, "There would be

Georgia Commission, to ensure upward pressure on rates in

utilities have the financing nec- upcoming years with new con-

essary to build the required in- struction, environmental man-

frastructure, such as Vogtle, for dates and higher fuel cost.

reliable service and support This would force tough deci-

state's economy. Wise, a strong sions on Commissions."

proponent of nuclear power, In 2005, Commissioner Wise

says it is necessary for a grow- was the Bonbright Honoree of

ing state like Georgia.

the Year.

Sympathy
We extend our condolences to Nancy Tyer on the passing
of her brotherin-law Edward J. Swint on September 28. The funeral was held on October
3 at the Sherrick Road Church of God in Canton, Ohio.

T wo longtime Commission employees bid farewell re-
cently. Candes Lesher (right) retired September 29 after 34 years with the Commission. Candes most recently worked in the Executive Secretary's office. We wish Candes the best of luck
as she devotes her full time efforts to her tennis teams!

Farewell
Gigi McGhee (below) resigned from the Commission August 13. She had worked at the Commis-
sion for the past 11 years mostly recently as Administrative Assistant for the Utilities Finance Director. Gigi is leaving to take a
position with the Atlanta School System. Good luck and best wishes!

Lifeline-Linkup

Commission Fines Illegal Movers Fined

(Continued from page 3)

(Continued from page 4)

(Continued from page 5)

this credit but there are thou- 1-1 to Albany and Dougherty $15,000 fine for failing to com-

sands more who could qualify but County to provide non-emergency ply with lawful Commission or-

are not signed up.

government services in Docket ders.

In order to qualify for these pro- Number 29611. This is the sev- Atlanta Moving & Storage Ser-

grams, you must be a participant enth Commission approved 3-1-1 vices. $10,000 fine for illegal

in any one of the following pro- number assignment to local gov- moves.

grams: Temporary Assistance to ernments. The other local govern- Let's Move It. $25,000 fine for

Needy Families (TNAF), Food ments already assigned 3-1-1 are illegal moves.

Stamps, senior citizens discount Cobb County, Dawson County, A Van Lines LLC. $55,000 fine

from power or gas company, SSI, Consolidated Columbus Govern- for 10 illegal moves.

Medicaid, Federal Public Housing ment, DeKalb County, City of Sa- The Commission has levied

Assistance, or Low-Income Home vannah and Columbia County.

more than $475,000 in fines

Energy Assistance Program.

against illegal household goods

movers in the past year.

PAGE 8

GPSC NEWS

Commission News

Georgia State Holidays For 2009

VOLUME 8 ISSUE 4
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

November 2009 3-Administrative Session
10-11Georgia Power Hearings 11-Veteran's Day Holiday 12-Committees 17-Administrative Session 24-Committees 26-Thanksgiving Holiday
27-Holiday 30-Special Administrative
Session December 2009 1-Administrative Session

Commission Calendar

10-Committees 15-Administrative Session
24-Holiday 25-Christmas Holiday 31-Committees January 2010 1-New Year's Day Holiday 5-Administrative Session
14-Committees 18-M.L. King Holiday 19-Administrative Session 28-Committees

NARUC
Annual Convention 2009 November 15-18, 2009 Chicago, Illinois
Winter Meeting 2010 February 14-17, 2010 Washington, D.C.
Summer Meeting 2010 July 18-21, 2010 Sacramento, California

SEARUC
Annual Meeting 2010 June 21-24, 2010 Point Clear, Alabama
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 H. Doug Everett, Chairman Lauren "Bubba" McDonald, Jr.
Robert B. Baker, Jr. Chuck Eaton Stan Wise
EXECUTIVE DIRECTOR Deborah Flannagan
EXECUTIVE SECRETARY Reece McAlister