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96th REPORT of
GEORGIA PUBLIC SERVICE
COMMISSION January 1, 1968 To January 1, 1969

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UNIVERSITY OF GEORGIA

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o T A T E OF -G E O R G I A LESTER MADDOX, GOVERNOR
96th Report of
GEORGIA PUBLIC SERVICE COMMISSION 244- Washington St., S. W*, Atlanta, Georgia 30334-
January 1, 1968 to January 1,1969

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b o u n d by t h e n a t io n a l l ib r a r y BINDERY CO. OF GA.

Crawford L* Pilcher, Chairman Ben T. Wiggins, Vice Chairman Alpha A # Fowler, Jr*, Commissioner William H. Kimbrough, Commissioner Walter R. McDonald, Commissioner
A,, 0* Randall, Secretary

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C O M M ISSIO N ER S

W ILLIAM H. K IM B R O U G H , CHAIRMAN

BEN T. W IG G IN S ,v ic e c h a ir m a n

ALPHA A. FOWLER, JR.

WALTER R. MCDONALD

CRAWFORD L. PILC HER

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November 25, 1969

A .O . RANDALL, s e c r e t a r y

To His Excellency Lester Maddox Governor of Georgia
Dear Governor Maddox:
As provided by law, the Georgia Public Service Commission submits herewith the 96th Annual Report of the regulatory activities of the Commission for the year ending December 31 1968.
Respectfully submitted,
Crawford L. Pilcher, Chairman

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96th A M U A L REPORT
Introduction
The Annual Report of the Georgia Public Ser vice Commission covering the activities for the year ending December 31? 1968* is submitted herewith in compliance with law
On December 23, 1968, Chairman Crawford L* Pilcher submitted his resignation as Chairman of the Commission as follows:
"GEORGIA PUBLIC SERVICE COMMISSION Honorable Ben T. Wiggins, Vice-Chairman Honorable A* A Fowler, Jr, Member Honorable Walter McDonald, Member Honorable William H. Kimbrough, Member
Gentlemen:
Because I have served as Chairman of the Georgia Public Service Commission for approximate ly eight years; Also, since I believe that the members who have not served as Chairman should know at first hand the grave responsibility of serving as Chairman, as well as for other personal reasons, I herewith submit my resignation as Chairman of the Georgia Public Service Commission, ef fective January 1, 1969*
I pledge to the Chairman who we select to serve my unexpired term as Chairman, which term expires on April 3? 1969? my co-operation and as sistance to him in carrying out the duties of this responsible position.
This action is taken because of my belief that the Chairman should be elected to serve on a calendar year basis, and is not made for any poli tical reasons whatsoever - falsehoods to the con trary, notwithstanding.
My appreciation is expressed to the members of the Commission for having honored me by select ing me to serve you as Chairman, and for your co operation and assistance. I thank you.
Sincerely,
(Signed) Crawford L, Pilcher

WHEREUPON the Commission unanimously elect ed Commissioner William H. Kimbrough as Chairman for a term f two years, commencing January 1, 1969# The members, officers and personnel of the Commis sion as of December 31 > 1968, x^ere as follows:
Crawford L. Pilcher, Chairman Ben T. Wiggins, Vice Chairman Alpha A. Fowler, Jr,, Commissioner William H. Kimbrough, Commissioner Walter R, McDonald, Commissioner A, 0, Randall, Executive Secretary and Legal Aide Mrs. Mae A* Montgomery, Reporter
Robert B. Alford, Chief Utilities Engineer IV Douglas N, Smith, Utilities Engineer III Charles W* Worthy, Utilities Engineer II Frank G, Heald, Public Utilities Auditor J. Winford Poitevint, Accountant II Nolan E. Ragsdale, Accountant II David 0. Benson, Transportation Rates Expert^ J. Fred Parker, Transportation Rates Specialist II L. Thomas Doyal, Transportation Rates Specialist II
and Chief Law Enforcement Officer Albert R, Bush, Transportation Rates Specialist 1 Larry L, Carpenter, Registration Supervisor^ Laraine Abercrombie, Accounting Clerk^II (Fiscal) George E, Thurmond, Civil Defense Officer.
All other Commission employees are substan tially the same as the 95th Report.
Mention should be made, however, of the re tirement of Mrs. Emily Martin on July 1, 1968. Mrs. Martin was the efficient and dependable secretary of David 0, Benson, Transportation Rates Expert. She had been continuously in the employ of the Commission since June 1934, The Commission expressed its appreciation and esteem for her services at a beautiful party on June 27, 1968 in her honor.
During the year the following new employees came with the Commission: Mrs. Gayle Arnold, Steno grapher II; Mrs. Carrie B. Hughes, Stenographer II; Mrs. Pauline Lanoch, Stenographer III; Mr. Nolan E, Ragsdale, Accounty II; and Mrs. Mary Lee Walra^ven, Clerk II,
Employees who resigned during the year are as follows: Mrs. Charlene Andrews Chaney,Steno grapher II; Mrs. Geraldine Barrom,Stenographer II; and Berg, F, McLaughlin, Accountant II,

HJBLIC HEARINGS
During the year the Commission conducted three hundred sixty-four public hearings* Public hearings commence on the second and fourth Tuesdays in each month and continue on successive days there after until all current applications and petitions have been disposed of* All matters docketed for public hearing are heard by the entire Commission in open session, a majority of the Commission con stituting a quorum*

MOTOR CARRIER CERTIFICATE AND LICENSE PEES

The Commission is charged with the responsi bility of collecting and accounting for motor carrier certificata and license fees* The total certificate, permit and license fees collected and remitted to the State Treasurer during *8b year 1968 are as follows:

Certificate fees at $5500 each, and certi
ficate transfer fees at $7*50 each - - - - - $ 4,982*50

Registration Permit fees at $25*00 each,and

amendment fees at $500 each

-$ 72,920.00

Regular license fees at $25*00 each - - - - $407^925*00

Identification stamp fees at $25*00 each- -$ 81,675*00

Reciprocal fees at $1.00 each - - - - - - - $132,251*00

T O T A L ---------- > - $699 ,.755 56

In addition to the foregoing certificate and license fees of $699*75350 collected by the Commis sion, the Railroads and Utilities under the juris diction of the Commission were subject to a tax as sessment which produced a sum of $280,000.00, which was collected by the Property and License Tax Unit of the Department of Revenue, making a total of $979*753*50 available for approriation to the Com mission,

COMMISSION DECISIONS

During the year 1968 the following^motor carrier decisions were made by the Commission:

Certificate applications:

Approved - ------ - - - - - - - - - - -

103

Denied - - - - - - - - - - - - - - - - - 12

Withdrawn -- -- - - - - - - - - - - - - - 13

Dismissed

-- 55

Total

163

Certificate transfer applications: Approved - - - - - - - - - - - Denied - - - - - - - - - -- Dismissed - - - - - - - - - - Total - - -

34 12 1?
59

Certificate amendment applications:

Approved - - - - - - - - - - - - - - -

92

Withdrawn - - - - - - - - - - - - - -

1

Denied - - - - - - - - - - - - - - - -

9

T o t a l -------------

102

Certificate control through trans

fer of capital stock - - - - - - - - -

3

Certificates cancelled -- - - - - - - -

48

Certificates suspended - - - - - - - - -

138

Certificates reinstated - - -- --- - --

112

T o t a l ---------------.^

298

Registration Permits cancelled - - - - - -

311

Rules nisi issued - - - - - - - - - - - -

497

Rules nisi dismissed -

21

Insurance rules nisi issued(undertermined)-

Miscellaneous:(Extensions,reconsidr

tions, refunds, etc, - - - - - - -- - - -

108

T O T AL --- 1,564-

Transportation Rates & Service Department:

Railroads & Motor Carriers':

Docket Decisions - - - - - - - - - - -

47

Non-docket decisions - - - - - - - - -

685

T O T A L --------------- 730

Utility Rates & Service Department:

Docket Decisions - - - - - - - - - - -

60

Non-docket decisions - - - - - - - - -

155

TOTAL - - ----------- 215

General Miscellaneous Decisions - - - - - - - - - '102-
0T2X ALL\DECISIOm-- --------------- - 'iV

- 6-

LAWS AND RULES
On April 4, 1968, the Commission issued the following order:
MBY THE COMMISSION :
WHEREAS, the last issue of the Laws and Rules adopted "by the Commission was published in printed
form, and issued January 1, 1963 9 and
WHEREAS, there have been amendments of the laws by the General Assembly of Georgia (which the Commission is charged with enforcing), and exten sive orders of the Commission amending the various rules and safety regulations applicable to the utilities, railroads and motor carriers subject to the jurisdiction of the Commission, the Commission is of the opinion that the Laws and Rules of the Commission should be republished in printed form, effective duly 1, 1968, to include all amendments as of the date of this order
WHEREFORE, IT IS
ORDERED: That the following laws,rules and rgula tions, as amended, which have heretofore been adopt ed and published by the Commission, and which are now in effect, are hereby readopted and ordered published in printed form as the Laws and Rules of THE GEORGIA PUBLIC SERVICE COMMISSION, issued July 1,1968
BY ORDER OF THE GEORGIA PUBLIC SERVICE COMMISSION, this the 4th day of April, 1968
A* Q* RANDALL,SECRETARY CRAWFORD L, PILCHER, CHAIRMAN*
The Laws and Rules were accordingly'published in printed Book Form, effective July 1, 1968, copies of which are available at the offices of the Com mission
For the purpose of brevity orders of the Com mission are seldom reproduced in the Annual Reports. However, the following order dismissing some 28 ap plications of Railway Express Agency, Incorporated, for certificates of Public Convenience and Necessity, is of such general importance in Motor Carrier Re gulations that it is reproduced in full, as follows:

December 23, 1968

Applications of Railway Express Agency, Incorporated, for Limited Class ''A " Certificates for the transportation of General commodities moving in express service on regular express receipts, between points in Georgia and between fixed termini, via the fixed routes as* published in said dockets.

Dockets 3665-M through 3692-M

Application for transfer of Class "A"
Certificates Nos. 1236, 2789* 2870, 2901
and 3528, from The Seacoast Transporta tion Company, 500 Water Street, Jackson ville, Florida 32202, authorizing the
transportation of property between points in Georgia, via the routes described in said certificates.

Docket ^710-M

BY THE COMMISSION: (Commissioner McDonald dissenting)
The above docketed cases (Dockets Nos. 3665-M through 3692-M) contain a
series of applications of the Railway Express Agency, Incorporated, for Class "A" Certificates between various points in Georgia. The application of Seacoast Trans portation Company and the Railway Express Agency, Incorporated, for transfer of certain existing certificates was heard jointly under Docket 3710-M.

During this hearing, the Railway Express Agency sought to change its operation within the State of Georgia from an indirect carrier contracting with the railroads for space in the freight and passenger cars for the carrying of express packages to a direct motor common carrier. The Railway Express Agency seeks in this application to receive these certificates because of the fact that it is an express company.

Under Code Section 68-602, the General Assembly of the State of Georgia stated the exemptions of motor carriers from the provisions of Chapter 68-6, Motor Common Carrier Section. In 68-602, subparagraph (c), the following is found.

"(c) To motor vehicles operated exclusively within a radius not exceeding five miles from some railroad freight or passenger depot or station, when the operation of the same is by a common carrier which is under the jurisdiction of the Interstate Commerce Commission of the United States. (Acts 1931, pp. 199, 212.)"

Under this subsection, only motor vehicles owned by the railroads or owned by the express company, which was indirectly owned by the railroads at that time, when operating five miles from a station or depot, are exempt.
Therefore, when the General Assembly of the State of Georgia adopted
68-609 directing the Commission as to what should be considered in determining the
granting of a Certificate of Public Convenience and Necessity, the Commission is bound by that Code Section and if any relief can be granted to Railway Express Agency from the provisions of Code Section 68-609, it must be the General Assembly of Georgia and not the Georgia Public Service Commission.
The Supreme Court of the State of Georgia has held that the Commission is not a legislative body and has only such powers that the legislature has ex pressly or impliedly conferred upon it: Georgia Appeals Report, Page 539a para graph (2) and 133 Georgia Supreme Court Report/Page 277a paragraph (l). Therefore, the Commission is of the opinion that the motion to dismiss the applications of
Railway Express Agency, Incorporated, in Docket Nos. 3665-M through 3^92~M, as
well as the Joint application of Seacoast Transportation Company and Railway Express Agency, Incorporated, for transfer of certain existing certificates in Docket No. 3710-M, should be granted. Wherefore, it is hereby,
ORDERED, that the applications of Railway Express Agency, Incorporated,
in Docket Nos. 3665-M through 3692-M for limited Class "A" Certificates as above
described, be and the same are, hereby dismissed, and all Certificate fees refunded.
ORDERED FURTHER: that the application of Railway Express Agency, Incor
porated, in Docket No. 3710-M for transfer of Class "A" Certificates Nos. 1236, 2789, 2870, 2901 and 3528 from Seacoast Transportation Company, be, and the same
is, hereby dismissed, and all transfer fees refunded.
BY ORDER OF THE GEORGIA PUBLIC SERVICE COMMISSION, this the 23rd day of
December, 1968.

A. 0. RANDALL, SECRETARY

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CRAWFORD L. PILCHER, CHAIRMAN

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DISSENTING OPINION of
COMMISSIONER WALTER R. MCDONALD
I respectfully dissent with the opinion of the majority that this Commission is without authority to grant to the Railway Express Agency permission to perform via motor vehicle the transportation services it has "been rendering to the State of Georgia for over a century.
My principle basis for this dissent is that the Commission over the years has granted to the Railway Express Agency a number of motor carrier certificates to perform express service of the same basic type and character as here proposed. In fact the Commission, in a number of instances where a last passenger train service was being discontinued, has directed the continu ance of express service by alternative means, which in every instance has proven to be by motor vehicle. We have also required pickup and delivery service to areas outside of city limits -- operations also requiring motor carrier authority.
The opposition to the granting of those certificates was in all instances meager and in some cases nonexistent and in any event the Commission found the public need to outweigh the opposition of protestants. It is signifi cant to note that in none of those cases did there arise any serious question of the authority of this Commission to grant such certificates.
My basic concern is with the public interest here involved. The Railway Express Agency has been serving the public of the State of Georgia for decades providing services not performed by other carriers and handling commodi ties which other modes of transportation have refused to touch. It is very debatable whether the Express Agency can operate effectively in Georgia without the authority here sought and the real loser is going to be the public, in its loss of service which the protestant carriers have not, cannot, and will not provide.

MOTOR CARRIER ENFORCEMENT
During the latter part of 1967 the Commission reor ganized the Motor Carrier Enforcement Division making it a part of the Transportation Division under direction of David 0. Benson, with the duties of Chief Enforcement Officer assigned to L. T. Doyal, Assistant to Director. Commissioner Alpha A. Fowler, Jr. continued in the capacity of Commissioner in change of enforcement. In addition, the enforcement section personnel consists of a supervisor of enforcement officers and seven law enforcement officers who are assigned specific terri tories in the State with the duty of enforcing the laws of Georgia and the rules and regulations of the Commission relating to "for-hire" motor carrier transportation throughout the State.
Effective July 1, 1968 all registration permits issued by the Commission effective prior to such date were cancelled and all motor carriers operating solely in interstate commerce over the highways of Georgia under authority issued by the Interstate Commerce Commission, or operating in inter state commerce specifically exempt from the jurisdiction of the Interstate Commerce Commission, or which held interstate operating authority in Georgia without corresponding intrastate authority were required to file with the Georgia Public Service Commission for a registration permit on the Uniform Application for Registration of Operating Authority, determined by the National Association of Railroad and Utilities Commissioners and promulgated by the Interstate Commerce Commission pursuant to the provisions of Section 202(b)(2) of the Interstate Commerce Act (^9 U.S.C. Sec. 302 (b)(2)), and submit a filing fee of $25.00 for a registration permit. This was required even though carrier may have held a registration permit previously issued by the Commission.
The Commission, in an endeavor to promote uniformity in the registration of interstate motor carriers and to comply with the provisions of Public Law 89-170 and the standards set forth therein, amended its General Motor Carrier Rules and Regulations issued January 1, 1963 to provide for registration of interstate operating authority on a uniform application form (Form A-regulated commodity carrier and Form A-l exempt operation), and providing for the registration of vehicles of interstate "for-hire" carriers operating from, to, through or within Georgia in interstate commerce. The $1.00 blue vehicle identification cab card long used by interstate carriers for registering vehicles with the Commission was replaced by a new Uniform Identification Cab Card. Under the Commission's new rules and regulations, interstate motor carriers (both ICC regulated and ICC exempt) were required to use the new Form D or Form D-l - Uniform Identification Cab Card. While Forms D and D-l are similar in design and content,
11 -

the Form D cab card is used only by carriers holding certifi cated authority from, and regulated by, the Interstate Commerce Commission. Form D-l Cab Card is used only by carriers operating in interstate commerce exempt from economic regulations by the Interstate Commerce Commission under specific provisions of the Interstate Commerce Act.
Interstate motor carriers, both regulated and exempt, who were properly qualified with the Commission were required to apply to the Commission for the issuance of a vehicle identification stamp for the registration and identi fication of each vehicle which they intended to operate within the borders of Georgia during 1969 &ud remit fee for the total number of stamps ordered. Carriers with vehicles licensed in States with which the Commission has a reciprocal agreement^ were required to register their vehicles by making application for the $1.00 registration stamp to be affixed to the Uniform Identification Cab Card by the carrier. Carriers with vehicles licensed in States with which the Commission has no reciprocal agreement, as well as purely interstate carriers with vehicles licensed in Georgia, were required to register their vehicle
for 1969 by making application for the $25.00 registration
stamp to be affixed to the Uniform Identification Cab Card by the carrier.
Georgia was the second State in the Nation to imple ment the new Uniform Registration Procedure prescribed under Public Law 89-170 which resulted in an enormous amount of preparatory work as well as a program of retraining for all of the Commissions enforcement officers. It also necessi tated a major reorientation program with the carriers to familiarize them with the new registration program. The transition, for the most part, was accomplished with a mini mum of inconvenience to the carriers who realized the ultimate benefits to them when the program is fully implemented in all states which must be accomplished by 1971.
During 1968 the seven enforcement officers performed 889 safety inspections, 1322 inspections for authority which
resulted in direct tag sales of $17,701. Of course, this figure is really not representative of the effect of their investigations since many carriers, as result of being appre hended, licensed more than one vehicle which, if credit was given to these, would inflate the above figure considerably. 209 arrests were made throughout the State for varying reasons mainly lack of operating authority and safety violations. These arrests resulted in bonds totaling $25,0Ul being posted in the counties where arrests were made. Our officers also performed
600 rate checks of intrastate carriers and 711 other personal
contacts were made on Commission business.
- 12 -

During 1968 the Chief Law Enforcement Officer
and all enforcement personnel conducted two major road checks
one at Folkston, Ga. and the other at Sylvania, Ga. The
check at Folkston lasted five days and the one at Sylvania
10 days, both operated 2k-hours per day, and resulted in the
apprehension and arrest of many violators operating without
authority as well as collection of several thousand dollars
in vehicle registration fees Summary of each law enforce
ment officers activities for 1968 is shown below:

SUMMARY OF LAW ENFORCEMENT OFFICERS' ACTIVITIES

Miles Safety Authority

Officer Operated Checks Checks

Tag Fees

Daugherty 13,>+57

28

Doolittle 20,M$7

80

Hooks

29,OOU I65

McGinnis 23,166

63

*Meeks

38,1(82 k92

Wheeler 25,512

51

30

$ 575*00

209

$3 ,850.00

131

$ 600.00

229

$3 ,750.00

i+80

$7,326.00

lk3

$1 ,600.00

Arrests Bonds
1 $ 57.00 52 $5350.00 13 $1200.00 37 $2307.00 83 $1^720.00 23 $1^07.00

Rate Personal Checks Contacts

118

I65

kQ

26

87

136

95

298

78

15

17k

39

*White (White and Meeks work together in the Atlanta area).

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UTILITIES DIVISION
Introduction
During the year 1968, the Public Service Commission issued a total of 3U orders after formal proceedings. These involved the rate adjustment
proceedings and the issuance of securities to borrow capital funds. The most important proceeding was the one involving the Georgia Power Company for authority to include an income tax adjustment clause in its rate sche
dules for electric service. This order was issued December U, 1968, and provided for an increase of 2 .172$ on residential general service and
industrial rates. This increase was not applicable for rural electric co-ops. or to the municipalities for resale who purchase energy on a wholesale basis, since these rates are now controlled by the Federal Power Commission.
The Commission has the responsibility of requiring utilities to provide adequate and satisfactory services compatible with the reasonable and just needs of the public at rates that are fair, just and reasonable. Contrary to the beliefs of many citizens, the Commission does not guarantee the utility a fixed rate of return or profit. Further, there is no exercise of power over the management of utilities such as organization, operation, etc.
At the close of the calendar year 1967 there were under the juris
diction of the Commission the following number of public utilities:
ELECTRIC.................... . . 2
NATURAL G A S ...................... b
TELEPHONE (including *+ Co-ops) . . bb
T E L E G R A P H ............ ..........' 1
T R A N S I T ....................... 1
The function of the Utilities Division is to provide the Commission with technical and professional services so that the public responsibilities as required by law can be met. In order to carry out the duties assigned to it by the Commission, a competent technical, professional and adminis trative staff performs specific functions in the Engineering, Rate, Auditing and Accounting Departments. The work of the Engineering Department consists generally of processing and analyzing all utility tariff filings which include rates, rules and regulation changes of the telephone utilities, revision of rules and regulations of electric and gas utilities, as well as tariff revisions filed by Western Union. All applications for Certificates of Public Convenience and Necessity for telephone and gas utilities are processed and docketed for hearing. During the formal proceedings, the
-Ik-

professional staff conducts the cross-examination of the witnesses, and

after the Commission reaches a decision, appropriate orders are prepared and i

issued. Oftentimes, field investigations have to he conducted to obtain

such additional data that may be required to enable the Commission to reach

a fair and equitable decision. One of the most important functions of this

department is the receipt, processing, evaluation, investigation, and final

disposition of all complaints filed with the Commission against the utili

ties. The staff personnel involved in this work have

specific train

ing in order that the public may be given prompt and courteous service in

the solution of their particular problem. For the purpose of obtaining

detailed facts and certain technical data required, many electric, gas

and telephone test instruments are utilized. These expensive and delicate

instruments are sent to the laboratory of the U. S. Bureau of Standards

periodically for calibration and issuance of Certificates which indicate

the tolerances of accuracy. In addition to the foregoing, all Federal

Power Commission and Federal Communications Commission publications on

Certificates, rates, rules and regulations, and orders are reviewed care

fully in order to evaluate same before submission to the Commission for

such action as deemed appropriate.

The Rate, Auditing and Accounting Department has the responsi bility of assigning all rate and security applications for hearing. When exhibits are filed in these proceedings, a detailed analysis is made in order to determine if the rules of the Commission have been met and at the hearing cross-examination of witnesses is conducted for the purpose of bringing out the facts in the case, thus aiding the Commission in reach ing a fair and equitable decision. Subsequent to the hearing, and after the Commission reaches a decision, orders are prepared and issued to implement the decision reached. This department has the tremendous task of auditing all monthly, quarterly and annual reports received from utilities. It is necessary to check for errors in accounting, accuracy of data and conformance with the uniform system of accounts. When dis crepancies are found, these are called to the attention of the appropriate utilities* officials for correction. Rate of return studies are made annually and submitted to the Commission for such action as may be deemed appropriate.

Despite the shortage of one engineer, one accountant, and one stenographer, the Utilities Division was able to perform in a creditable manner. The understrength merely resulted in the decrease in the volume of overall work which should have been accomplished. The Commission*s inability to fill vacant staff positions had been due primarily to the low salary level offered. While the average starting salary for engineer ing graduates with no experience is about $750.00 per month, the Utilities Engineer I is rated in grade level lU at a starting rate of $531. It is expected that some adjustments will be made in the near future. The work load is constantly increasing, brought about by the increase in the number of utilities* customers, plus the fact that the suburban areas around the large municipalities present problems of utility facilities being extended in such areas to meet the demands of the public.

-15-

DECISIONS AND ORDERS
Applications formally heard by the Commission are generally taken under advisement and decisions thereon are issued at a later date. The Commission issued 3^ decisions and orders during the year^ in proceedings involving utilities. A classification of the proceedings in which formal opinions and orders were issued follows:
Applications for Certificates or Cancellation Thereof - - - - - - - - - 1
Applications for Authority to Issue Securities or Borrow Money
Rural Electrification Administration Financing - - - - - - - - - 1
Private Financing - - - - - - - - - - - - - - - - - - - - - - - - 1 3
Rate Adjustment Proceedings - - - - - - - - - - - - - - - - - - " * - - - 6
Applications for Authority to Purchase and Transfer Utility
Properties - - - - - - - - - - - - - - - - - - - - * - - - - - - - - 0
Applications for Amendments of Certificates - - - - - - - - - - - - - - 3
Applications for Amendments of Rules and Regulations - - - - - - - - - 2
Show Cause Proceedings - - - - - - - - - - - - - - - - - - - - - - - - 0
General Orders - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2

APPLICATIONS FOR CERTIFICATES OR CANCELLATION THEREOF

Docket No. 2068-U
July 2 k , 1968

Application of the City of Claxton, Georgia, for a Distribution System Certificate of Public Con venience and Necessity in Effingham and Bryan Counties, Georgia.

APPLICATIONS FOR AUTHORITY TO ISSUE SECURITIES OR BORROW MONEY

Docket No. 2065-U May 17, 1968
Docket No. 2059-U March 27? 1968
Docket No. 206O-U April 15, 1968

Application of Ellijay Telephone Company of Ellijay, Georgia, for authority to borrow the principal amount of $885?000 from the Rural Electrification Administra tion ("REA").
Application of General Telephone Company of Georgia for authority to enter into temporary loans with banks and with its parent, General Telephone & Electronics Corporation, for a period of 12 months, for renewal of outstanding notes payable, and for other purposes.
Application of Quincy Telephone Company, Quincy, Florida
for authority to borrow $1+00,000 principal amount from
Stromberg-Carlson Credit Corporation.

-16-

APPLICATIONS FOR AUTHORITY TO ISSUE SECURITIES OR BORROW MONEY (Cont'd)

Non-Docket April 23, 1968

Application of Interstate Telephone Company, West Point, Georgia, for authority to borrow an additional $^50,000 principal amount from the Stromberg-Carlson Corporation and for authority to revise the principal repayments on its existing loans with Stromberg-Carlson Corporation.

Docket No. 206l-U
May 3, 1968

Application of General Telephone Company of the
Southeast for authority to issue and sell at the par
value of $25 per share, four hundred thousand (^00,000)
shares of its common stock; and to sell Fifteen
Million ($15,000,000) of First Mortgage Bonds bearing
an interest rate not to exceed seven and three-quarters
(7 .75$) per cent, and to apply the proceeds thereof to
repay short term loans, and for other purposes.

Docket No. 206l-U May 17, 1968

Application of General Telephone Company of the
Southeast for authority to issue and sell at the par
value of $25 per share, four hundred thousand (^00,000)
shares of its common stock; and to sell fifteen million
dollars ($15,000,000) of First Mortgage Bonds bearing
an interest rate not to exceed seven and three-quarters
per cent (7 .75$), and to apply the proceeds thereof to
repay short term loans, and for other purposes.
FIRST SUPPLEMENTAL ORDER

Non-Docket
June 26, 1968

Application of Hart County Telephone Company, Hartwell, Georgia, for authority to borrow an additional $55,000 principal amount from the Stromberg-Carlson Credit Corporation.

Non-Docket September 17, 1968

Application of Hart County Telephone Company, Hartwell, Georgia, for authority to borrow an additional $55,000 principal amount from the Stromberg-Carlson Credit Corporation. FIRST AMENDATORY ORDER

Docket No. 2079-U October 11, 1968

Application of Westco Telephone Company for authority to issue and sell to its Parent, Western Carolina Telephone Company, 160,000 shares of its $5 par value per share common stock for the aggregate cash amount
of $800,000.

Docket No. 2082-U November 18, 1968

Application of Cairo Telephone Company for authority
to issue and sell $150,000 principal amount of First
Mortgage Bonds, bearing interest at the rate of 72I0
per annum.

Docket No. 2083-U December k , 1968

Application of Georgia Telephone Corporation, Blakely, Georgia, for authority to borrow $300,000 principal amount from the Stromberg-Carlson Corporation.

Docket No. 2057-U
February 2, 1968

Application of Georgia Power Company for authority to issue and sell $50,000,000 principal amount of First Mortgage Bonds, 100,000 shares of Preferred Stock and 2^0,000 shares of Common Stock.

-17-

APPLICATIONS FOR AUTHORITY TO ISSUE SECURITIES OR BORROW MONEY (Cont'd)

Docket No. 2057-U February 12, 1968

Application of Georgia Power Company for authority to issue and sell $50,000,000 principal amount of First Mortgage Bonds, 100,000 shares of Preferred Stock and
2^0,000 shares of Common Stock. FIRST SUPPLEMENTAL ORDER

Docket No. 2058-U
March 20, 1968

Application of United Cities Gas Company for authority
to issue and sell $2,000,000 principal amount of its
First Mortgage Bonds, Series D, 7 l/8 per cent, due
March 15, 1993* for authority to issue and sell 10,000
shares of its $100 par value per share Cumulative
Preferred Stock, 1968 Series also, for authority to
issue and sell to its employees 25,000 shares of its
Common Stock of the par value of $3`33-1/3 per share, pursuant to the terms and provisions of an Employee's
Stock Purchase Plan.

RATE ADJUSTMENT PROCEEDINGS

Docket No. 20U9-U April 23, 1968

Application of The Utelwico, Inc. for authority to increase its local exchange telephone rates.

Docket No. 2066-U May 17, 1968
Docket No. 2O8I4-U December U, 1968

Application of Ellijay Telephone Company for authority to increase its local exchange telephone rates.
Application of Georgia Telephone Corporation, Blakely, Georgia, for authority to adjust the monthly rates for telephone service rendered from its Blakely exchange.

Docket No. 2051+-U January 25, 1968

Application of The Western Union Telegraph Company for authority to adjust certain of its Georgia intra state message rates.

Docket No. 2085-U December k , 1968

Application of The Western Union Telegraph Company for authority to revise its Georgia intrastate rates for Telegram Service.

Docket N o . 207^-U
December h , 1968

Application of Georgia Power Company for authority to include an income tax adjustment clause in its rate schedules for electric service.

APPLICATIONS FOR AUTHORITY TO PURCHASE AND TRANSFER UTILITY PROPERTY

Docket No. 203-U
April 15, 1968

Application of Continental Telephone Corporation for authority to acquire all of the outstanding Capital Stock of Gray-Haddock Telephone Co., Inc. and for authority to do all things required to effectuate ownership, control and management of that Company, as set forth in the application.

-18-

APPLICATIONS FOR AUTHORITY TO PURCHASE AND TRANSFER UTILITY PROPERTY (Cont'd)

Docket No. 2062-U April 15, 1968

Application of Continental Telephone Corporation for authority to acquire all of the outstanding Capital Stock of Jeffersonville Telephone Company, Incorporated and for authority to do all things required to effectuate ownership, control and management of that Company, as set forth in the application.

Docket No. 2063-U May 3, 1968

Application of Continental Telephone Corporation for authority to acquire all of the outstanding Capital Stock of Gray-Haddock Telephone Co., Inc. and for authority to do all things required to effectuate ownership, control and management of that Company, as set forth in the application. FIRST AMENDATORY ORDER

Docket No. 2062-U May 3, 1968

Application of Continental Telephone Corporation for authority to acquire all of the outstanding Capital Stock of Jeffersonville Telephone Company, Incorporated and for authority to do all things required to effectuate ownership, control and management of that Company, as set forth in the application. FIRST AMENDATORY ORDER

Docket No. 206U-U May 17, 1968

Application of Mid-Continent Telephone Corporation of
Elyria, Ohio, for authority to acquire all of the
outstanding Capital Stock, consisting of 631 shares
of Common Stock of Commerce Telephone Company of
Commerce, Georgia, in exchange for 138,820 shares of
Common Stock of Mid-Continent Telephone Corporation.

Docket No. 2076-U September 25, 1968

Application of Georgia State Telephone Company, GrayHaddock Telephone Co., Inc. and Jeffersonville Telephone Company, Incorporated for authority to merge, with Georgia State Telephone Company to be the surviving Corporation, and for authority to do all things required to effectuate such merger.

APPLICATIONS FOR AMENDMENTS OF CERTIFICATES

Docket No. 2075-U September 17, 1968

Application of Plant Telephone and Power Company, Inc. for Amendment to Certificate of Public Convenience and Necessity.

Docket No. 2088-U December 23, 1968

Application for Certificate of Public Convenience and Necessity for toll facilities in Effingham and Screven Counties.

Docket No. 2067-U
September 26, 1968

Application of Chattanoogs Gas Company for Amendment to its Certificate of Public Convenience and Necessity No. 73, Catoosa County, Georgia.

-19-

APPLICATIONS FOR AMENDMENTS OF RULES AND REGULATIONS

Docket No. 2053-U
June 28, 1968

GEORGIA POWER COMPANY: Application for an amendment of its rules and regulations pertaining to Retail Distribution Line Extension and Service Connection Regulations by adding a new paragraph to Section C, "Retail Distribution Line Extension and Service Connection Regulations," in order to provide specific criteria for the extension of new underground residential distribution facilities.

Docket No. 2053-U
November 18, 1968

GEORGIA POWER COMPANY: Application for an amendment of its rules and regulations pertaining to Retail Distribution Line Extension and Service Connection Regulations by adding a new paragraph to Section C, "Retail Distribution Line Extension and Service Connection Regulations," in order to provide specific criteria for the extension of new underground residential distribution facilities. FIRST AMENDATORY ORDER

GENERAL ORDERS

June 19, 1968

Rules and regulations for employment and use of any
equipment or device which is furnished by a telephone
company authorized by the Georgia Public Service
Commission pursuant to Act 567 HB 6^, adopted by
the General Assembly of Georgia, approved April 19 1967

Non-Docket April 23, 1968

Rules and regulations for the safe installation and operation of natural gas transmission and distribution facilities.

LICENSES ISSUED FOR SERVICE OBSERVING EQUIPMENT PURSUANT TO

ACT 567 ADOPTED BY THE GENERAL ASSEMBLY APRIL 19, 1967

Company

License No.

Date Issued

J. Lee Gregory, Inc.

22

4/30/68

Harper Motor Lines, Inc.

23

Blue Bird Body Company

2k

Albany Telephone Answering Service

25

Savannah News-Press

26

International Harvester Company

27

Trailways Bus Depot of Atlanta, Inc.

28

The Western Union Telegraph Company

29

Nationwide Airlines Southeast, Inc.

30

J. C. Penny Company, Inc.

31

Atlanta Gas Light Company

32

The Citizens & Southern National Bank of Ga 3U

Southern Cooling Company

35

Southern Railway Company

36

Gulf Coast Collection Agency

37

United Service Bureau, Inc.

38

Credit Bureau of Macon

39

Merchants Credit Association

ko

Bonded Credit Bureau

hi

Credit Bureau of Atlanta

k2

Central Adjustment Bureau

k3

5/2U/68
7/19/68 7/19/68 7/19/68 7 /19/68 7 /19/68 7/19/68 7/19/68 7/19/68 7/19/68 7/19/68 10/11/68 10/11/68 1-0/11/68 10/11/68 10/11/68 10/11/68 lO/li/68 10/11/68 12/ k /6 8

- 20-

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Due to the fact that this is a new field of regulation, it is anticipated that modifications will be required in the present method of issuing these licenses in order to give full effect to the intent of the Act.
SOUTHERN BELL TELEPHONE AND TELEGRAPH COMPANY
Reorganization On July 1, 1968, pursuant to a plan of reorganization approved
by Southern Bell Telephone and Telegraph Company and American Telephone and Telegraph Company, of which Southern Bell is a wholly-owned subsidiary, the business and properties of Southern Bell in the states of Alabama, Mississippi, Louisiana, Tennessee, and Kentucky were transferred to the South Central Bell Telephone Company which is also wholly-owned by American Telephone and Telegraph Company. Southern Bell retains operation of their properties in North Carolina, South Carolina, Georgia, and Florida.
Station Activity - General Total telephones in service for Southern Bell in Georgia at the
end of 1968 were 1,769,239. This represents an increase in total telephones
for the year of 131,366. The inward movement was 528,277 and the outward
telephone movement was ^00,^30.
The improvement in service furnished their customers continues,
and as of the end of the year 8l.U percent of residence customers had
individual line service. This is the highest percentage of one-party line service in the four states that Southern Bell serves.
The number of families with telephones in Georgia served by Southern Bell continues to increase and now approximately 80.0 percent of all families have telephone service. New services and equipments are being developed on a continuing basis in order to keep abreast of customer's needs for new and expanded service. This is evident by the fifty-four tariff filings (including the new General Subscriber Services tariff) that were made with the Georgia Public Service Commission during the past year.
Conversions Since the end of 1967 all of the exchanges in Georgia have been
on dial operation. Dial conversions are no longer applicable to this report.
Direct Distance Dialing Of the total number of main services in Southern Bell in Georgia,
78.5 percent now have access to the Direct Distance Dialing network and
plans are proceeding to expand this service. The percent customer-dialed
long distance messages in 1968 was 30*6 percent of the total messages.
Construction During the year 1968, Southern Bell spent approximately one hundred
and seven million dollars in Georgia for new construction to provide facilities needed to serve their customers.
- 21-

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SOUTHERN TVFfr.T. TELEPHONE AND TELEGRAPH COMPANY (Cont'd)

Band Mileage During the year. Southern Bell liberalized the application or^
band mileage charges to the Atlanta Metropolitan Exchanges. The reduction in annual mileage charges to subscribers amounted to $171 >300 As of the end of 1968, 50.7 percent of Atlanta Metropolitan Exchanges were applying mileage charges on a banded basis.
Eight-Party Elimination and Service Improvements in Suburban Areas
During the year 19^8, Southern Bell spent approximately $5,685,000 in gross construction in its program of eliminating eight-party service and for service improvements in the suburban area. During the year, 40,9^1 new customers were served outside the Base Rate Area and 2,U07 eight-party customers were regraded to higher classes of service. At the end of the year, eight-party service represented only 2.8 percent of total customers served.

Extended Area Service No Southern Bell exchanges were added to the extended area net
works in 1968, but cooperation was continued with Connecting Companies in
helping them to expand extended area service arrangements.

Customer Savings On February 1, 1968, a new long distance tariff was filed on
intrastate calls that adopted the interstate hours, holidays and timing allowances. The expected annual savings to customers is $1,178,300-

Expansion of Base Rate Areas and Locality Rate Areas during 1968
should result in annual savings to customers of $10,600.

Employees and Wages Southern Bell employs 16,300 people in Georgia, which is an
increase of 1,200 since January 1, 1968. To obtain this increase they hired nearly 8,800 new people and lost 7,600. This force loss includes about 350 people as a result of the creation of the South Central Bell Telephone Company offices in Birmingham.
During 1968, Southern Bell paid its employees in Georgia an amount in excess of $107,U^0,000 in salaries and wages. This is an average of
$6,591 per employee.

Taxes

During the past year, Southern Bell in Georgia paid in local and

State taxes an amount in excess of $l6,8l*+,000. In addition, Georgia

telephone customers paid over $3,281,000 to the State in sales tax.

- 22-

INDEPENDENT TELEPHONE COMPANIES* OPERATIONS
The State's independent telephone industry continued its record
growth in 1968, as new all-time highs were set in plant investment, annual
gross revenues, and telephones in service. Of the 1,972 independent companies operating throughout the nation, there are 1+3 in Georgia, serving over one-half of the geographical area of the State and operating approximately 1 in every 7 telephones (29*+,000). Plant investment is
approximately $155,000,000, with more than $30,000,000 having been invested in 1968 to improve service and expand plant and facilities.
These 1+3 companies employ over 1,800 persons, pay annual taxes in excess
of $3.9 million, and collect in excise taxes approximately $3-0 million
per year. Operating as they do, in the smaller cities, towns, suburbs and rural areas, which are growing faster in population and disposable income than the large metropolitan areas, their annual rate of growth
(9.1% in 1968) was slightly greater than that of the Gross National Pro duct (8 .9$), or the Bell System in Georgia (7-5$) However, nationwide growth of independent telephone companies is reported to be 11.1 per cent
by the independent telephone companies association thus exceeding the growth rate in Georgia.
During 1968, the Commission's activity with the various inde pendent companies embraced 3 rate proceedings, 7 loan applications, 2 certificates, U stock and bond issues, 6 applications for authority to purchase and transfer utility properties, and 1 general order, and a large
number of requests from the public for additional telephone service. All companies are proceeding with an up-grade program to meet subscriber demand, improve traffic efficiency, and minimize cost of central office and station equipment. For example, the General System has an objective
of offering one-party service to all business customers by 1970, with no
more than four-parties served on any line by 1975 Georgia State Tele phone (Continental System) estimates that within ten years, 90 per cent of its customers will have one-party service. Standard Telephone, Interstate Telephone and other smaller systems are forecasting one-party and two-party service to all customers within the base rate area, and
four-party and five-party service to all rural subscribers by 1970.

ATLANTA GAS LIGHT COMPANY

During 1968 Atlanta Gas Light Company continued its expansion program and extended Initial Natural Gas Service to six (6) incorporated municipalities. A total of 183 towns and cities were being served as of December 31, 1968 and more than 589,000 customers. A monthly average of
20,259 new customers were connected. The following received natural gas
for the first time:

CITY Spring Place Tignali Braselton Hoschton Lula Twin City

DATE
1-2^68 1-31-68 7 -19-68 7-23-68 8-2-68 10-11-68

GENERAL LOCATION IN l North Central East North Central North Central Northeast East

CONSTRUCTION

Total Utility Plant additions (additions less retirements) for twelve months ended December 31, 1966 amounted to $13?466, 249. Construction
Expenditures for the Company's Utility Plant during the 1968 fiscal year ended September 30, 1968, were $13,272,279. Of this amount approximately
84$ was for gas mains, service lines, meters and regulators, while remainder was for general improvements and new equipment.
Construction expenditures for the 1969 fiscal year are estimated to be $15,935,000 of which $10,005,000 will be for new business in areas
now served, $2,425,000 for distribution systems in new areas and the balance for general improvements and new equipment.

SALES AND REVENUES

Total gas revenues amounted to $119,837,449, an increase of 12.4$
over 1967. During this same period Residential revenues increased 12.5$,
small Commercial 18.5$ and large Industrial 10.5$. The 3,495 degree days
during 1968 were 1 7.0$ more than in 1967.

GAS SUPPLY

The Company continues to maintain long-term contracts with three
(3 ) natural gas pipe line suppliers; Southern Natural Gas Company, Trans
continental Gas Pipe Line Corporation and South Georgia Natural Gas Company,
through sixty-nine (69) separate supply points. A total of 204,907,735,000
cubic feet of natural gas was received and distributed through approximately
12,375 miles of 3" equivalent gas mains.

The Company maintains nine peak shaving plants which supply propane air gas during cold weather or in emergencies. Total storage capacity of these plants is 11,744,575 gallons of liquid propane.

PERSONNEL
At the end of 1968 the C o m p a q had 2,358 employees.

GENERAL

The Company opened a new office at Chatsworth during 1968.

-24-

DIRECTORY 0 F
GEORGIA TOWNS AND CITIES SERVED WITH N A T U R A L GAS
PREPARED BY GEORGIA PUBLIC SERVICE COMMISSION
AS OF SEPTEMBER 11, 1969

V T . 0 G Z A A \ M 0 tl -A.

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Acworth Adairsville*
Ailey Alamo Albany Aldor Allenhurst Allentown Alma Alpharetta Alto Americus Arcade Ashburn Athens Atlanta Augusta Austell* Avera Avondale Estates
Bainbridge Baldwin Ball Ground Baraesville Baxley Berkeley Lake Bishop Blackshear Blakely Blythe Bogart Bowdon Bowersville Bowman Braselton Bremen Brunswick Buchanan (Buena Vista) Buford* (Butler) Byron
Cadwell Cairo Calhoun Camak Camilla Canon Canton Carlton

OWNERSHIP OF SYSTEM
Atlanta Gas Light Company Municipal Atlanta Gas Light Company Atlanta Gas Light Company Municipal Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Municipal Atlanta Gas Light Company Municipal Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Municipal Atlanta Gas Light Company Atlanta Gas Light Company
Municipal Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Municipal Atlanta Gas Light Company Atlanta Gas Light Company Municipal Municipal (Toccoa) Manicipal Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Municipal Municipal Municipal Municipal (Warner Robins)
Atlanta Gas Light Company Municipal Atlanta Gas Light Company Atlanta Gas Light Company Municipal Municipal (Toccoa) Atlanta Gas Light Company Atlanta Gas Light Company

SOURCE OF NATURAL GAS
Southern Southern Southern Southern South Georgia Southern Southern Southern Southern Southern Transcontinental South Georgia Southern South Georgia Trans cont inent al Southern Southern Southern Southern Southern
South Georgia Transcontinental Transcont inental Southern Southern Transcontinental Southern Southern South Georgia Southern Transcontinental Southern Transcont inental Transcontinental Transcont inental Southern Southern Southern South Georgia Transcont inent al South Georgia Southern
Southern South Georgia Southern Southern South Georgia Transcont inental Southern
Southern

CITY
Carrollton Cartersville* Cave Spring Cedarto'wn Centerville Chamblee Chatsworth Chester Chickamauga Clarkesville Clarkston Cochran Colbert College Park Columbus Comer Commerce* Conyers Cordele Cornelia Covington Crawford C rawfordville Cumming Cuthbert
Dacula Dallas* Dalton* Danielsville Danville Darien Dawson Dearing Decatur Demorest Dexter Doerun Doraville Douglas Douglasville Dublin* Dry Branch Dudley Duluth
Eastman East Point Eatonton* Elberton (EUaville) Emerson

OWNERSHIP OF SYSTEM
Atlanta Gas Light Company Municipal Atlanta Gas Light Company Atlanta Gas Light Company Municipal (Warner Robins) Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Municipal Atlanta Gas Light Company Atlanta Gas Light Company Gas Light Company of Columbus Atlanta Gas Light Company Municipal Atlanta Gas Light Company Municipal Atlanta Gas Light Company Municipal Municipal (Greensboro-Union Point) Municipal Atlanta Gas Light Company Municipal
Municipal (Buford) Municipal Municipal Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Municipal Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Municipal Atlanta Gas Light Company Municipal Atlanta Gas Light Company Municipal Municipal Atlanta Gas Light Company Atlanta Gas Light Company
Atlanta Gas Light Company Atlanta Gas Light Company
Municipal Municipal Municipal Atlanta Gas Light Company

SOURCE OF NATURAL GAS
Southern Southern Southern Southern Southern Southern Southern Southern Southern Transcont inent al Southern Southern Transcontinental Southern Southern Transcont inental Transcontinental Trans cont inental South Georgia Transcontinental Transcontinental Transcontinent al Transcontinental Transcontinental South Georgia
Transcont inental Southern Southern Transcontinental Southern Southern South Georgia Southern Southern Transcont inental Southern South Georgia Southern South Georgia Southern Southern Southern Southern Southern
Southern Southern Southern Transcontinental South Georgia Southern

cm
Emprire* Euharlee
Fairburn Fairmount Fayetteville Fitzgerald Flemington Flowery Branch Forest Park Forsyth Fort Benning Fort Gaines Fort Oglethorpe Fort Valley* Franklin
Gainesville Garden City Gibson Gillsville Glennville Glenwood Gordon Grantville Gray Grayson Greensboro* Griffin Grovetown Guyton
Haddock (Eatonton) Hahira Hampton Hapeville Harlem Harrison Hartford Hartley Hartwell HawkinsviHe Hazlehurst Helena Hephzibah Hinesville Hogansville Holly Springs Hoschton Hull

OWNERSHIP OF SYSTEM
Minicipal (Cochran) Atlanta Gas Light Company
Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Municipal Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Gas Light Company of Columbus Municipal Chattanooga Gas Company Municipal Atlanta Gas Light Company
United Cities Gas Company Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Municipal Municipal (Eatonton) Municipal (Lawrenceville) Municipal Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company
Municipal Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Municipal (Cochran) Municipal (Warner Robins) Municipal Municipal Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Municipal Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company

SOURCE OF NATURAL GAS
Southern Southern
Southern Trans cont inent al Southern South Georgia Southern Transcontinental Southern Southern Southern South Georgia East Tennessee Southern Trans cont inental
Transcontinent al Southern Southern Transcontinental Southern Southern Southern Southern Southern Trans cont inent al Transcont inental Southern Southern Southern
Southern South Georgia Southern Southern Southern Southern Southern Southern Transcontinental Southern Southern Southern Southern Southern Southern Southern Transcontinental Transcont inental

CITY
Ila Irwinton Jackson* Jasper Jefferson Jeffersonville Jesup Jonesboro
Kennesaw
Lafayette LaGrange Lake City Lavonia Lawrenceville* (Leesburg) Lexington Lilburn Lithia Springs Lithonia Loganville Louisville* Ludowiei Lula Lumber City Lumpkin Lyons
Mableton Macon Madison Manchester* Marietta Martin Maxeys Maysville McDonough McIntyre McRae Meigs Mi H e dge ville Millen Milner Monroe Montezuma Monticello* Montrose Morrow Moultrie Mountain Park

OWNERSHIP OF SYSTEM
Atlanta Gas Light Compary Dublin Gas System, City of Municipal Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company
Atlanta Gas Light Company
Municipal Municipal Atlanta Gas Light Company Municipal (Toceoa) Municipal Municipal Municipal (Greensboro-Union Point) Atlanta Gas Light Company Municipal (Austell) Atlanta Gas LightCompany Municipal (Lawrenceville) Municipal Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Municipal Atlanta Gas Light Company
Municipal (Austell) Atlanta Gas Light Company Municipal Municipal Atlanta Gas Light Company Municipal (Toccoa) Municipal (Grennsboro-Union Point) Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Municipal Atlanta Gas Light Company Municipal Atlanta Gas Light Company Municipal Municipal Municipal Atlanta Gas Light Company Atlanta Gas Light Company Municipal Atlanta Gas Light Company

SOURCE OF NATURAL GAS
Transcontinental Southern Southern Transcontinental Transcontinental Southern Southern Southern
Southern
Southern Southern Southern Transcontinental Transcontinent al South Georgia Transcontinental Transcontinental Southern Transcontinental Trans cont inent al Southern Southern Transcont inental Southern South Georgia Southern
Southern Southern Transcont inental Southern Southern Trans cont inent al Transcontinental Transcont inent al Southern Southern Southern South Georgia Southern Southern Southern Transcontinental South Georgia Southern Southern Southern South Georgia Transcontinental

CITY
Mountain View Mount Airy Mount Vernon Mount Zion
Nashville Nelson Newnan Norcross Norwood (Oehlochnee) Oc ilia Oconee Odum (Omega) Palmetto Patterson Payne City Peachtree City Pelham Pendergrass Perry Pine Lake Plainsville Pooler Forterdale Port Wentworth Powder Springs
Quitman
Ranger Reidsville Remerton Rentz Rest Haven (Reynolds) Richland Richmond Hill Rincon Ringgold Riverdale Roberta Rockmart Rome Roopville Rossville Roswell Royston

OWNERSHIP OF SYSTEM
Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company
Municipal Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Municipal Municipal Atlanta Gas Light Company Atlanta Gas Light Company Municipal Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Manic ipal Atlanta Gas Light Company Municipal Atlanta Gas Light Company Municipal (Dalton) Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Municipal (Austell)
Municipal
Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Municipal (Buford) Municipal Municipal Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Municipal (Fort Valley) Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Chattanooga Gas Company Atlanta Gas Light Company Municipal

SOURCE OF NATURAL GAS
Southern Transcont inental Southern Southern
South Georgia Trans cont inent al Southern Southern Southern South Georgia South Georgia Southern Southern South Georgia Southern Southern Southern Transcontinental South Georgia Transcontinental Southern Southern Southern Southern Transcontinental Southern Southern
Squth Georgia
Southern Southern South Georgia Southern Transcontinental South Georgia South Georgia Southern Southern Southern Southern Southern Southern Southern Southern East Tennessee Southern Transcontinental

mWmmbMSiOEwam

CITY
Sandersville Savannah Screven Sharon Smyrna Snellville Social Circle Soperton Sparta* Springfield Spring Place Stapelton Statesboro* Statham Stilesboro Stockbridge Stone Mountain Sugar Hill Sugar Valley Summerville* Sunnyside Suwanee Swainsboro Sylvania Sylvester
Talbotton Tallapoosa Taimo Taylorsville Temple Tennille Thomaston Thomasville Thomson* Thunderbolt Tifton Tignall Toccoa* Trenton Trion Twin City Tyrone
Union City Union Point* Uvalda
Valdosta Vidalia Villa Rica

OWNERSHIP OF SYSTEM
Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Municipal Atlanta Gas Light Company Municipal Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Municipal Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Municipal Municipal Municipal Atlanta Gas Light Company .Atlanta Gas Light Company Atlanta Gas Light Company Municipal Municipal
Municipal Municipal Atlanta Gas Light Company Atlanta Gas Light Company Municipal Atlanta Gas Light Company Atlanta Gas Light Company Municipal Municipal Atlanta Gas Light Company Municipal Atlanta Gas Light Company Municipal Atlanta Gas Light Company tftinicipal Atlanta Gas Light Company Atlanta Gas Light Company
Atlanta Gas Light Company Municipal Atlanta Gas Light Company
Atlanta Gas Light Company Atlanta Gas Light Company Municipal

SOURCE OF NATURAL GAS
Southern Southern Southern Transcontinental Southern Southern Transcont inental Southern Southern Southern Southern Southern Southern Transcontinental Southern Southern Southern Transcont inental Southern Southern Southern Southern Southern Southern South Georgia
Southern Southern Transcont inental Southern Southern Southern Southern South Georgia Southern Southern South Georgia Southern Transcontinental Southern Southern Southern Southern
Southern Transcontinental Southern
South Georgia Southern Southern

CITY
Waco Walnut Grove Warner Robins Warrenton Washington Watkinsville Waycross Waynesboro West Point Whitehall Whitesburg Winder Winterville Woodland Woodstock Wrens Wrightsville
Zebulon

OWNERSHIP OF SYSTEM
Atlanta Gas Light Company Municipal (Lawrenceville) Municipal Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Municipal Municipal Atlanta Gas Light Company Atlanta Gas Light Company Municipal Atlanta Gas Light Company Municipal Atlanta Gas Light Company Municipal Atlanta Gas Light Company
Atlanta Gas Light Company

SOURCE OF NATURAL GAS
Southern Transcont inental Southern Southern Southern Transcontinental Southern Southern Southern Southern Southern Transcont inental Southern Southern Southern Southern Southern
Southern

*Municipally-owned systems thus marked serve in areas outside the county of which it is the county seat, in which case the Georgia Public Service Commission has jurisdiction over rates and other matters.
The Commission has no jurisidiction whatsoever over municipally-owned systems where service is rendered wholly within the county of which it is the county seat.
CODE: Southern - Southern Natural Gas Company South Georgia - South Georgia Natural Gas Company Transcontinental - Transcontinental Gas Pipeline Co. East Tennessee - 3?ast Tennessee Natrual Gas Company
(Butler): Parenthesis marks indicates proposed systems in the South Georgia Natural Gas Company network. These cities will be served by July, 1971.

GAS LIGHT COMPANY OP COLUMBUS
August, 1968, marked the end of 20 years since the properties of
the Company were acquired by the present owners. During this period the
number of customers increased from 13>300 to b^s8009 sales volume (thou
sands of cubic feet) rose from 3,270,000 to 11,133,000, and revenues went
from $1,31*9,000 to $7,1***+,000.
REVENUES
Weather during the heating season was 2*+ per cent colder than in
the previous year and 12 per cent colder than the latest 20-year average.
Revenues were up $7**3,000 or almost 12 per cent over 1967 Although there were no changes in rates during the year, residential revenues per thou
sand cubic feet declined from $1 .0** to $1.00 because of greater consumption
per customer.
PROPERTY ADDITIONS
Home building activity showed some improvement during 19685 gas
service was extended to 1,1**8 new customers. Mains, service lines, meters and other facilities required to serve these customers accounted for $226,000 out of total property additions of $387,000. The remaining expenditures were for distribution system improvements and replacements, and for automotive and work equipment, office fixtures, and other general plant additions.
OTHER
Refunds amounting to $71,926 were credited to customers* gas
service bills during May and June, 1968. This amount was received from
the Company's pipeline supplier, Southern Natural Gas Company, in August,
1967, and was refunded under a method approved by the Georgia Public
Service Commission.
FINANCIAL SUMMARY
Total operating revenues for the year amounted to $7,1*+*+,257 as
compared with $6,*+01,896 for the previous year-- an increase of $7*+2,36l. Cost of gas purchased ($3,8*+8,95*+) was up $332,793 over 1967 and accounted
for 5*+ cents of each dollar of revenue received. Other operating expenses, including depreciation and taxes, totaled $2,623,69**, up $3**5,751 over the previous year. Net income for the year, after preferred dividends,
was $399,892 or $2.*+2 per common share. Comparable net income for 1967
was $332,896 or $2.0** per share.
GAS PIPELINE SAFETY
Since the Public Service Commission was given responsibility for the safe installation and operation of natural gas transmission and dis tribution facilities in Georgia by Act No. *+70 in 1967, which amended Code Section 93-307 of the 1933 Code of Georgia, a supplemental order was
-25-

issued on April 23, 1968. The purpose of the order was to adopt the re vised American Standard Code for Pressure Piping (ASA B3I.8-I968) which sets
forth the safety rules for "Gas Transmission and Distribution Piping Systems."
April 239 1988
Non-Docket

In He:

Rules and regulations for the safe installation and operation of natural gas transmission and distribution facilities.

SECOND SUPPLEMENTAL ORDER

BY THE COMMISSION:
On July 6, 1967, the Commission issued its first supplemental,
order regarding this subject matter. In the first ordering paragraph of the original non-docket order, the Commission stated:

"ORDERED: That the provisions and definitions, rules and regulations, relating to materials and piping system com ponents; welding procedures; equipment; operating and main tenance procedures; and other miscellaneous provisions and
appendices prescribed in 800 Section 8 of American Standard
Code for Pressure Piping (ASA B31.8-1963)* for the design,
construction, installation, testing, upgrading and uprating, and maintenance of natural gas transmission and distribution systems under the jurisdiction of the Commission, be and the same are hereby adopted."

Since the issuance of the said first supplemental order, adopting
the American Standard Code for Pressure Piping (ASA B3I.8-I967), the 1967 Edition of that code, known as USAS B31.8-1967? another revision has been
made entitled "Gas Transmission and Distribution Piping Systems" USAS
B31.8-1968.

After careful consideration of this matter and since the changes
set forth in the said 1968 code are most desirable from the standpoint of
upgrading the design, fabrication, installation, inspection, testing and the safety aspects of operation and maintenance of gas transmission and distribu
tion systems, gas compressor stations, gas metering and regulating stations, gas mains and service lines up to the outlet of the customers* meter set assembly, the Commission is of the opinion that the said changes should be authorized. Wherefore, it is

ORDERED: that the provisions and definitions, rules and regulations,
relating to materials and piping system components; welding procedures;
equipment; operating and maintenance procedures; and other miscellaneous
provisions and appendices prescribed in 800 Section 8 of American Standard Code for Pressure Piping (USAS B3I.8-I968), for the design, construction,
installation, testing, upgrading or uprating, and maintenance of natural gas
transmission and distribution systems under the jurisdiction of the Commis sion, be, and the same are hereby adopted.

- 26-

ORDERED FURTHER: that all other terms and conditions of the Com
mission's order of July 6, 1967, shall remain in effect without revision.
BY ORDER OF THE GEORGIA PUBLIC SERVICE COMMISSION, this the 23rd
day of April, 1968.

A. 0. RANDALL, SECRETARY

CRAWFORD L. PILCHER, CHAIRMAN

Public Law 90-^81 was signed into law by President Johnson on
August 12, 1968, and it is known as the "Natural Gas Pipeline Safety Act of 1968."
This Act provides an important role for the states in the over-all program for Federal regulation of gas pipeline safety.
The Act requires the Secretary of Transportation to prescribe minimum Federal safety standards applicable to all pipeline facilities and
to all transportation of gas within the fifty states. Section 3(a) requires
the Secretary of Transportation to promulgate minimum standards which were
adopted on November 13, 1968. This Act also permitted state commissions
to submit a certificate under Section 5(a) after the adoption of the interim minim um Federal standards. Pursuant to Section 5(a)j the Public Service Commission issued its certificate as follows:
December U, 1968
Certificate of the Georgia Public Service Com mission submitted to the Secretary of Trans portation under Section 5(a) of the Natural
Gas Pipeline Safety Act of 1968.
Pursuant to Section 5(a) of the Natural Gas Pipeline Safety Act
of 1968 (82 Stat. 720) (hereinafter referred to as "the Act"), the Georgia
Public Service Commission (hereinafter referred to as "the Commission") hereby certifies to the Secretary of Transportation (hereinafter referred to as the "Secretary") that--
1. Except as set forth in Attachment A, under the applicable provisions of the Constitution and laws of Georgia, the Commission has regulatory jurisdiction over the safety standards and practices of all pipeline facilities and the transportation of gas (not subject to the juris diction of the Federal Power Commission under the Natural Gas Act) within Georgia. The terms "pipeline facilities" and "transportation of gas" are used in this certificate as defined in the Act.
2. The Commission has adopted each Federal safety standard established under the Act, in effect as of the date of this certification, that is applicable to the pipeline facilities and transportation of gas under the Commission's jurisdiction as identified in paragraph 1.
3 The Commission is enforcing each standard referenced in paragraph 2.
-27-

4. The Commission has authority to require each person who engages in the transportation of gas or who owns or operates pipeline facilities
covered by the regulations referenced in paragraph 2 to establish and
maintain records, to make reports, and to provide information, and that this authority is substantially the same as the authority provided in Section 12 of the Act.
5* The Commission has authority to require each person who engages in the transportation of gas or who owns or operates pipeline facilities, not subject to the jurisdiction of the Federal Power Commission under the Natural Gas Act, to file with the Commission for approval a plan for inspection and maintenance substantially as described in Section 11 of the Act for each pipeline facility owned or operated by that person.
6 . The laws of Georgia do not provide for the enforcement of the safety standards referenced in paragraph 2 by injunctive and monetary sanctions
substantially the same as Sections 9 and 10 of the Act.
Given under my hand and official seal of the Georgia Public Service
Commission, this the 4th day of December, 1968.
ATTEST:

A. 0. RANDALL, SECRETARY

CRAWFORD L. PILCHER, CHAIRMAN

ATTACHMENT A
According to Article IV, Section I, Paragraph I of the Constitu tion of the State of Georgia, the Georgia Public Service Commission does not have jurisdiction over gas systems in Georgia operated by any munici
pality. However, the Attorney General of Georgia on March 8, 1958 issued
a legal opinion based on Article VII, Section VII, Paragraph V (Code Ann. 2-6005) that where municipalities extend facilities beyond the limits of their home county, such facilities constructed beyond the county line become subject to regulation by the Georgia Public Service Commission in the same manner as privately-owned and operated utilities.

In order to comply with the certificate hereinabove, it was necessary for the Commission to have injunctive powers, and appropriate legislation was prepared and will be submitted to the General Assembly
when it meets in 1969. Section 5(c) of Public Law 90-481 provides for
Grants-in-Aid which will assist the state regulatory agencies in imple menting Public Law 90-481 and to doing a more effective job of gas safety regulation. Grants-in-Aid will be made up to fifty per cent of the budget amount of the state agencies; however, these funds will not be available
before the fiscal year 1970-7 1 *
The Commission proposes to make every effort to obtain the funds from the 1970 General Assembly in order that the staff may be augmented for the purpose of implementing the gas safety Act to the TMHminn degree possible for the safety of the public and the prevention of the loss of
- 28-

property. Very little inspection work could be accomplished during 1968; however, all administrative work was completed on schedule, thus meeting the requirements set forth in Public Law 90-^81 as being administered by the Office of Pipeline Safety of the Department of Transportation. It is hoped that the year 1969 will be more productive in this important field of regulation.

ELECTRIC UTILITIES

Georgia Power Company
New customer growth increased 30,901 in 1968, bringing year-ended total to 931,805. The percentage increase over 1967 was 3*^ per cent. Of the new customers, 27,*+01 were residential and 3, ^ + were commercial and
industrial. Since 1958, Georgia Power Company has added 257,998 customers,
a 38 per cent increase over the period 1958-1968.
Retail electric service is provided to 6h6 cities and towns in
153 of the State*s 159 counties. Wholesale electric service is provided to 50 municipal electric systems and 39 sniral electric cooperatives. This service spans 97 per cent of the State.

Energy Sales
Energy sales for 1968 totaled 2^,265,133,000 kilowatt hours. This represented a gain of 16.0 per cent over 1967.

Operating Revenues

The 1968 revenues of $296,223,000 were $35,739,000 above 1967, an increase of 13.7 per cent. The revenues for 1968 are broken down into the

following classifications :

Percent

Increase
Over 1967

Electricity Sales to Residential Customers $ 9^,758,000

1^.9$

Electricity Sales to Industrial &

Commercial Customers

16^-,016,000

11.7$

Miscellaneous Sales

3^,695,000

21.2$

Sales Other Than Electricity

2,75^,000

9*5$

$296,223,000

13.7$

Securities Issued
During 1968, Georgia Power Company sold 2^0,000 shares of common
stock to The Southern Company for $2^,000,000. Preferred stock carrying a
dividend rate of 6.60 per cent and numbering 100,000 shares was sold for a total cash consideration of $10,052,500.
First Mortgage Bonds with a face value of $50,000,000 and an
interest rate of 6.625 per cent were sold for a total cash consideration of
$^9,765,500. The proceeds totaling $83,818,000 were to be used in financing the Company's construction program.
29-

Application was made to the Atomic Energy Commission for a con
struction permit for the previously announced $150,000,000 nuclear-fueled
electric generating plant on the Altamaha River in Southeast Georgia.

Plans were announced to construct a second 700,000 kilowatt coal-
fired generating unit on the Etowah River in Bartow County near Cartersville,
Georgia. This unit is scheduled to begin operation in 1972. Construction
work continued on the first unit of 700,000 kilowatts, which is scheduled for initial operation in 1971*

Reliability and System Capacity

Since the great "blackout" of electric power in the northeastern
United States in November 1965, the Commission has kept constant vigil over

load growth in Georgia and the Comparer's plans for keeping pace with customer

demands.

,

Tabulated below is the system generation capability at the begin
ning of 1968 and as of the end of the year:

January 1, 1968

December 31, 19^8

Steam Hydro Miscellaneous

3,^24,000 Kw (1)
699,800 Kw (2)
2,000 Kw
*,125,800 Kw

3,91^,000 Kw (1) 699,800 Kw (2) 2,000 Kw
*,615,800 Kw

Increase in system generating capacity

*90,000 Kw

Firm capacity from other utilities Total

832,**7 Kw
5 ,k k 8 ,2 k 7 Kw

In addition, emergency capacity of 585,000 Kw with utilities in adjacent states is available to meet any emergency, should any unit of a plant fail.
System peak of 5,326,100 Kw occurred on August 23, 1968. From the
above, it seems clear that the Company is keeping up its generating capacity to meet customer growth.
Load growth is forecast for future years and generating capacity
increased accordingly. In 1969, a 500,000 Kw unit at Plant Harllee Branch
will be on the line, thus increasing system generating capacity.

(1) Includes 577,600 Kw from Southern Electric Generating Company, one-half of which is owned by Georgia Power Company.
(2) Includes 226,000 Kw of capacity received from Southeastern Electric
Power Administration and delivered to preference customers.
-30-

SAVAHHAH ELECTRIC M D POWER COMPANY

An accelerated growth rate in residential customers , average kilo watt hour usage and increased industrial power requirements have led to a "first of its kind" for Savannah Electric and Power Company.

The "First" is a jet engine driven generator capable of producing
21,600 kilowatts. The new unit will be installed at the Port Wentworth Power
Plant in the spring of 1969. Three additional gas turbine generators have
been ordered for use early in 1970.

Construction has also started on a fourth steam turbine generator at the Port Wentworth Plant. This will add 126,000 kilowatts to the com pany's generating capability in the spring of 1971. Present system capacity is 3^0,000 kilowatts.
In 1968, construction expenditures totaled $*+.6 million. The Company's 1969 construction program m i l require about $15 million of the nearly $60 million programmed for the next five years.

The Savannah area's continuing economic and population growth are requiring greater demands for electric power than at any time in the com pany's history. This expansion program will insure an adequate reserve capacity for the company's customers.

Tn review, 1968 was a growth year. Savannah Electric gained 2,7^0

customers, a l+.2$ increase and one of the highest rates of growth in the

nation. Average annual use per residential customer increased 172$

7>506

KWH as compared to a national average of about 6,000 KWH. The average unit

rate for residential service dropped from 2.070 per KWH in 19&7 1*970.

The national average stands at 2.130.

The volume of residential construction in Savannah Electric's
service area increased by nearly 50$ in 1968. Of the 792 single family units completed, 51$ installed electric heating, 73$ electric water heating and 85$ electric cooking. All of the 693 apartment units completed or under construction in 1968 were all-electric.

A quick look at what's happening in Savannah reveals some of the factors responsible for an increasing economic tempo:

Grumman Aircraft Engineering Corporation increased employment
during 1968 to over 1,000 at its new Savannah plant and is currently underway
with additional expansions.

Oglethorpe Mall, a regional shopping center, opened in the spring
of 1969 with 62 stores . . . the state-sponsored Ocean Science Center of the
Atlantic and Skidaway Institure of Oceanography are developing near Savannah . . . the Army Flight Training Center at the Hunter Field-Fort Stewart
complex reached full operation in 1968 with 19,000 military, dependents and
civilian personnel . . . and industrial employment reached an all time high.
At the close of 1968, Savannah Electric and Power Company was
serving 68,^39 customers in Chatham, Effingham, Bryan, Bulloch and Screven
counties. In September of 1969 customers served had increased to 70,511
which is further evidence of continued growth in the service area.
-31-

OTHER COMMISSION ACTIVITIES
For many years the Public Service Commission has been cooperating with the NARUC in promoting more effective regulation of public utilities. Three members of the Commission have been appointed on important National Committees as well as staff members and have made substantial contribution toward the objectives of their respective committee assignments. One of the most important NAKUC Committees is the "Committee on Communications". Vice Chairman Ben T. Wiggins has been Chairman of this committee for several years and has spent a great deal of his time personally in implementing the com mittee^ assignments. This is indeed a great honor for Georgia since the effort expended in cooperation with the NAKUC and the FCC has resulted in benefits, not only in Georgia, but to the several states. This committee^ work goes on continuously because it has been found necessary to modify the NAKUC-FCC Separations Manual, which manual is used to separate the plant investment and expenses between interstate and intrastate toll. The result ing effect amounts to the transfer of revenue requirements from intrastate to interstate which enables the states to utilize the benefits of the shift ing revenues to reduce intrastate toll rates, miscellaneous charges for service, or improve the rates returned if the respective Bell Company is
found to have the need for additional rates. During 1968, the committee
assisted by the Staff Committee of Experts, continued its activities in the FCC Investigation of American Telephone and Telegraph Company and the
associated Bell System Companies in Dockets 16258 and 17975 In addition
to the. matter of Separations, the Telephone Committee compiled up-to-date local service rates and message toll telephone rates for all the Bell System Companies and same has been published by NARUC. Considerable work was done by the Staff Committee on Telephone Manufacturing and Service Affiliates which, has as its policy, a long established practice of reviewing, compiling and issuing quarterly and annual reports on the operations and fiscal data on the Western Electric Company. This subsidiary of the American Company is the manufacturing arm of all the Bell System operating companies. Investi gation was also conducted on the manufacturing of the Independent Companies, nae^yj the General Telephone and Electronics, Inc..and the service affiliates of that organization. The committee also looked into the manufacturing and service affiliates of other major telephone holding companies such as the Continental Telephone Corporation and the United Utilities, Inc. All of this material is helpful to the state regulatory commissions when rate cases are filed by the operating companies of these holding companies and plans have been made to continue and expand the amount of such information in the future.
The Chief Utilities Engineer has been serving many years as Chairman of the Staff Committee on Education. This committee conducts a two-week Short Course each year for regulatory personnel at some college or university in the United States that has been recognized as a leading university. The 10th such Short Course was held at the University of
Wisconsin during the summer of 1968 and this was the largest class in the history of the training program, there being a total of 6l students from 20
states, the District of Columbia, and Federal Regulatory Agencies. Each year, the Subcommittee Chairman with the aid of other committee members, has the responsibility of redesigning the Short Course incorporating changes in the Course curriculum that appears to be desirable. This is done by a very careful detailed analysis of the reports filed by the Short Course faculty and the completed questionnaires submitted at the end of the school by the students. Complete information on the training program is contained in
-32

the NAKKJC Committee Reports. This is an excellent program for young staff personnel and provides an added fringe benefit that seems to be a necessity in order to attract young men who have recently graduated from college. There has been and still is a critical shortage of engineers and accountants in both State and Federal Regulatory Agencies. These agencies are faced with many problems, but as the utilities implement new engineering system designs, the integration of automatic equipment with computers, the demand of the public for underground utility facilities, the professional staff of the Commissions must be uprated if prestige is to be maintained and an adequate regulatory job be accomplished. The challenge is here and we have responsibility and duty to our citizens to perform in such a manner that the job can be done with the least amount of effort.
-33-

TRANSPORTATION

General
During 1968, the Commission and its Transportation staff
officially disposed of, in addition to the formal proceedings listed
below (most of which were made the subject of written opinions), 69k
transportation rate and service matters, a considerable number of which required lengthy studies and investigations in the field.

FORMAL CASES FOR YEAR 1968

Docket No. Date

Subject

Disposition

6U3-R

1-8-68

Application of Georgia, Southern &

Approved

Florida Railway Company for authority

to discontinue agency service and

handling of less-than-carload shipments

at Sycamore and to dismantle the station

building at that point.

3511-M
650-R

2-7-68

Application of Augusta Coach Company for Approved authority to establish transfer charge of five cents.

2-7-68

Application of Southern Railway Company for authority to discontinue agency service and handling of lessthan-carload traffic at Aragon and to dismantle the station building at that point.

Approved

653-R
659- R 660- R 663-R 66l-R

2-7-68

Application of Southern Railway Company Approved and Central of Georgia Railway Company for authority to discontinue agency service and handling of less-than-car load freight at Lindale and to dismantle the station building at that point.

3- 20-68 Application of Railway Express Agency, Approved Inc., for authority to increase Georgia intrastate class rates and commodity rates.

3-20-68

Application of Georgia Railroad
for authority to discontinue operation
of its passenger trains numbers 3 and h
between Atlanta and Augusta.

Approved

l4.-i1--.68

Application of Central of Georgia Rail- Approved way Company for authority to discontinue agency service and handling of less-thancarload traffic at Sargent and to dismantle the station building at that point.

3^

FORMAL CASES FOR YEAH 1968 (Continued)

Docket N o , Date

Subject

Disposition

35^7-M
3560- M 3561- M 1st Supp.
3560- M 3561- M
655-R 658-R
3603-M 657-R
3623-M
647-R

4-15-68

Applications of Associated Petroleum

Approved

Carriers, Inc., Davis Transport Company,

Fleet Transport Company, Inc., Petroleum

Carrier Corporation and Smith Transfer

Company, Inc., for authority to increase
asphalt rates by 10 percent and to revise

rules and regulations governing the trans

portation of that commodity.

4-15-68

Applications of Gay Trucking Company, Approved Petroleum Carrier Corporation and Schwerman Trucking Company for authority to increase rates on cement.

4-17-68

Applications of Gay Trucking Company, Petroleum Carrier Corporation and Schwerman Trucking Company for advance ment in effective date of increase in motor carrier rates on cement approved in original order.

Approved in part

5-3-68

Application of Central of Georgia Rail Approved way Company for authority to discontinue agency service at Watkinsville, Georgia.

5-17-68

Application of Southern Freight Tariff Approved Bureau on behalf of the Seaboard Coast Line Railroad Company, for authority to increase per car rates on mattresses and/or upholstered box springs from Fulco to Atlanta.

5-17-68 Application of Cheyenne, Inc., for
authority to increase asphalt by
10 percent.

Approved

5-29-68

Application of rail carriers for authority to increase the minimum charge per car on Georgia intrastate traffic and to remove the commodity exceptions to such charge.

Approved with exceptions

6-18-68 Application of J & M Transportation
Company, Inc., for authority to in crease rates on cement.

Approved

6-26-68

Application of Central of Georgia Railway Company for authority to dis continue agency service at Butler and to consolidate the agency stations of Howard and Reynolds by establishment of a dual agency operation under a single agent.

Approved

35

FORMAI CASES FOR YEAR 1968 (Continued)

Docket No. Date

Sub.ject

Disposition

66^-R

6-26-68

Application of Southern Railway Company for authority to discontinue agency service and the handling of less-than-carload traffic at Warm Springs and to dismantle the station building at that point.

Approved

666-R

6-26-68

Application of Southern Railway Company to consolidate the agencies of Helena and McRae.

Denied

672-R

6-26-68

Application of Louisville and Nashville Railroad Company for authority to discontinue agency service and the handling of lessthan-carload traffic at Nelson and to dismantle the station building at that point.

Approved

671-R

9-25-68

Application of the railroad carriers for authority to make effective on Georgia intrastate traffic the same increase in switching charges as approved by Interstate Commerce Com mission to become effective on interstate traffic on August 27, 19^5

Approved with exceptions

6^6-R

10-11-68

Application of Southern Railway Company to discontinue agency service and the handling of less-than-carload traffic at Hiram and to dismantle the station building at that point.

Approved

675- R 676- R 3702-M
361^-M

10-11-68 Application of Seaboard Coast Line Railroad Company to discontinue agency service at Coolidge.

Approved

10-11-68 Application of Seaboard Coast Line Railroad Company to discontinue agency service at Byromville.

Approved

10-11-68 Application of Tamiami Trail Tours, Inc., to make revisions in its bus service.

11-18-68

Application of Class "A" motor v carriers of property for authority to increase class rates and minimum and stop-off charges and to cancel or increase commodity rates.

Approved in part only
Approved in part

36

FORMAL CASES FOR YEAR I968 (Continued)

Docket N o . Date

Subject

Disposition

67^-R
373U-M

11-21-68

Application of railroads for authority to increase freight rates and charges on Georgia intrastate traffic to the same extent authorized on interstate
traffic under Ex Parte 259 order
of June 19, 1968.

Approved with exceptions

11-21-68

Application of Associated Petroleum Carriers, Inc., Fleet Transport Company, Inc., Gay Trucking Company, Petroleum Carrier Corporation and Russell Transfer Company, for author ity to increase rates and charges on petroleum products.

Approved in part and on interim basis pending additional submissions by carriers

1st Supp.
67^-H

11-26-68

Application of railroads for authority to increase freight rates and charges on Georgia intra state traffic to the same extent authorized on interstate traffic
under Ex Parte 259 order of June 19>
1968.

Original order clarified as to exception in sugar rate.

668-R

12-14-68

Application of Central of Georgia

Denied

Railway Company for authority to

discontinue agency service and the

handling of less-than-carload traffic

at Buchanan and to dismantle the station

building at that point.

37

ft

BUS FARES AM) SERVICES
At the end of 1968 there were 33 Uus lines operating under the
jurisdiction of the Commission providing passenger service between points in Georgia - a decline of two from the number so operating at
the end of 1967. The drop in number of bus lines was primarily due
to absorption of small lines by large lines - there having been no reversal of the trend toward larger but fewer intercity carriers. Fortunately the area and route coverage of the State's bus lines has not declined, even in the face of the ever increasing competition from the private automobile.
In spite of the continuing spiraling increase in cost of operations caused by the general economic trend toward inflation in wages and prices, during the year only one carrier sought an increase in regular passenger fares and that was limited to the establishment of a transfer charge of five cents by Augusta Coach Company. The Commission had long been reluctant to approve a transfer for the urban type bus lines of the character of Augusta Coach Company but did establish a precedent therefor in earlier approving for Atlanta Transit Company such a charge. In the Augusta Coach Company case, it was shown that its operating expenses had increased substantially
since the then-existing fares were instituted in 19&1 , that its
revenue from fares was less than it was that year and that the added revenue to be derived from the new transfer charge was badly needed by the company and would work no hardship on the patrons of the petitioner's operation. In view of the lack of protest against the proposed transfer charge and in consideration of the fact that the added revenue therefrom would drop this carrier's operating ratio to
slightly less than 92 and permit its continued operation on a sounder
basis without the necessity of an increase in basic fares, the Com mission in February permitted the establishment of a transfer charge on this line*
While there were many bus schedule changes made during the year, only one schedule revision proposal had such a significant adverse effect on the traveling public intrastate in Georgia that it was necessary to hold public hearing to resolve the need for service. Tamiami Trail Tours, Inc., in September sought to reroute several of its schedules, to totally discontinue other runs and to change the times of operation of much of its remaining service. In consideration of the numerous protests raised against many of the proposed changes, the Commission required the carrier to demonstrate at public hearing the reasons for the changes in service and to justify its proposal. The carrier showed at the hearing that its costs had increased greatly
since 1965 with a 10$ such increase in the last year alone. Some of
the schedules proposed to be eliminated were shown to be operating at less than out-of-pocket cost for much of the prior year and the carrier strongly urged that it be permitted to make the changes pro posed to prevent undue drain on its resources. Following the hearing, the Commission did permit the discontinuance of a number of schedules where they were shown to be economically impossible to operate but denied permission to eliminate several schedules in the southwest Georgia area where the need for the service was shown to outweigh the losses being incurred.
38

TRUCK RATES
The trend of the general economy in Georgia and throughout the nation during the year toward rapid increase in costs of wages and materials forced a wide range of increases in the rates of the motor carriers of property.
By applications filed in January and February, three of the principal common carriers transporters of cement sought substantial increase in their rates for the transportation of that commodity increases which were varying in amount although designed to make the rates of two of the carriers - Schwerman Trucking Company and its newly acquired subsidiary, Petroleum Carriers Corporation - to be the same. There was protest against these proposed increases and for that reason the Commission assigned the matter for public hearing. At the hearing the protestants did not object to the application of the carrier proposing the smallest measure of increase but did object to the proposals of the other two carriers as being too great in amount of increase. The Commission found that the record showed that all three of the applicants needed additional revenues if there were to be expected to provide to the public adequate facilities for the transportation of cement in bulk between points in the State of Georgia and, in consideration of the fact that approval of the appli cations would still result in rates lower for these carriers than earlier approved by the Commission for a competing carrier which transports cement for a shipper competing with the protestants in this proceeding and would also result in rates lower than Schwerman Trucking Company*s interstate rates from the same origins, approved the rates proposed but, in order to mitigate the impact of the in creases on protestants who had outstanding contracts to supply cement to large projects, delayed the effective date of such increase to
June 16. Later in the year another motor common carrier of cement
sought authority to make similar increase in its rates and after proof of the need therefor at public hearing and in the light of no protests being expressed against the proposed increase the Commission authorized the increased rates for this carrier also.
In January and February, applications were received from the State*s motor common carriers of asphalt for authority to increase by 10$ all of the asphalt rates in the State and to make certain changes in the rules and regulations governing the transportation of that commodity. At the hearing on this application, witnesses for the applicant carriers submitted considerable evidence showing the recent substantial increase in costs of transporting this commodity one carrier testifying that the then-current rates on asphalt had resulted in that transportation being so unprofitable that its affiliates had reduced the number of units hauling that commodity
from 80 in 1965 to 37 in 1968, with one having gone into bankruptcy in 1967 due to the large losses being incurred. The principal rule change sought was to increase to $6 per hour (following free time
of three hours) the charge for detaining carrier's equipment in unloading - the carriers complaining strongly that their equipment was being delayed unnecessarily by receivers and that a penalty was needed to force release of that equipment from such use for storage purposes. Several protestants objected to the increase, particularly to it becoming effective on the transportation of asphalt included
39

in contracts already let for construction projects. Included among these objectors was the State Highway Department which indicated that it would incur a substantial increase in costs from its forced absorption of the increase in rates if the increase were permitted to become effective prior to the expiration in April of the Depart
m e n t s asphalt contract of 1967-68. The Commission, in consideration of the fact that the rates on asphalt had been in effect for 17 years
without increase in other than the minimum weight and the demon strated need of the carriers for additional revenues, approved the increase sought but held that the immediate application of the full increase would create an unwarranted burden on the shippers of asphalt which burden could have been largely avoided had the carriers
sought the increase in the latter part of 1967 after the end of the 1967 working season for this commodity and therefore delayed the effectiveness of the increase to June 16 in order that the impact
might not be unreasonably great on the shippers and users of this commodity. In recognition of the need to force prompt release of the carrier's equipment, the Commission also approved the increased detention charge. For many years, the rates on this commodity had been published by the Commission in its own tariff but the order approving the increased rates directed that the carriers themselves publish the asphalt tariff in the future.
By petitions dated various dates in September and later modified during that month and during October, the principal motor carriers of petroleum products sought authority to increase their
rates from 1/2 cent to 2 cents per 100 pounds on the lighter petro
leum products and by XCffo on the heavy oils. In addition, authority was sought to amend their existing C,Q*B. rules to provide for a $2.50 charge per collection. At the hearing, witnesses for the carriers submitted extensive exhibits and testimony showing the sub stantial increase in costs incurred since the then-current rates were
made effective in 1957? with specific showing being made of actual
movements and the revenue returned therefrom as compared with the cost of transportation thereof. Representatives of six major oil companies shipping petroleum products within the State objected to the proposed increase - the principal objection pertaining to the manner of determination and publication of the existing rates rather than any substantive objection to the need of the carriers for additional revenues. The protestants were unanimous in indicating a desire for the use of more up-to-date mileages in computing the point to point rates and the resultant correction of competitive re lationships in supplying petroleum products to individual points from different terminals. Similar desire was expressed for publica tion of the rates on a gallonage basis although it was never shown what practical difference such publication would make when the existing gallon rates were based on estimated weights which, according to the protestants own testimony, no longer represented actual weights. General objection was also raised to the maintenance of the originally prescribed competitive relationship between rail and motor carrier rates on the transportation of these commodities and to the granting here of the same measure of increase in rates as had been previously applied by the railroads. Several of the
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protestants indicated a willingness to work with both the carriers and the Commission in the recomputation of petroleum rates on the new basis sought and it was evident that most of the protests expressed in this proceeding was the result of changing conditions making out moded the basis on which these rates have been previously prescribed. The Commission found that the applicants had demonstrated need for additional revenue but not for the measure of increase sought and to provide for the carriers * need pending the receipt of more evidence on which to prescribe for the future a basis of rates updated as to distance computations, the Commission authorized an interim increase
of 5$ in lieu of the varying cents per 100 pound increase sought and of 72$ on the commodities on which 10$ increase was sought. Per
mission was granted to increase the C.O.D. charges to $2.50 per collection. The applicant carriers were directed to submit to the Commission a revised basis of rates on these commodities for permanent application with such basis to reflect the mileages published in the Commission's Highway Distance Table No. 2 and based on gallons rather than weight Further action will be taken in connection with these rates when the additional information called for has been submitted.
By petition dated May 2, the intrastate motor common carriers
of property party to Georgia Motor Trucking Association Tariff No. 1-B,
sought authority to cancel many commodity rates and to increase other rates and charges as published in that tariff with the increases generally designed to match the interstate level. Bascially, the petition sought increase in charges for stopping-in-transit to partially load and unload, increase in minimum per shipment charge,
increase in class rates on shipments weighing less than 1,000 pounds,
and increase in most commodity rates to the interstate level, the latter either by appropriate adjustment of the specific commodity rates or by cancellation of commodity rates with subsequent applica tion of class rates. At the hearing, a large volume of exhibits and testimony was submitted by the applicant carriers, showing the results of operation of these carriers in handling Georgia intrastate traffic, with particular showing of the characteristics of the traffic developed by analysis of a five-day test period of operations. These exhibits showed a wide range of operating ratios with a number of the carriers
operating at ratios over 100, with a further number operating near
that level. One large intrastate carrier was shown to be particularly in extreme financial difficulty, with another approaching that point. Twenty-one protestants appeared at the hearing to object to the proposed increases. Most of the objection was to the proposed increase in minimum charges and in class rates, with representatives of certain interests protesting against the increases proposed in commodity rates on which the bulk of their traffic moved in Georgia. . Particular objection was expressed to the large percentage increase resulting from many of the proposed commodity rate cancellations. The Com mission found the carriers transported the bulk of Georgia intrastate fixed route truck traffic to be in serious need of additional revenue if they were to be expected to continue to provide the measure of service to the shippers and receivers of the State of Georgia that the Commission has consistently required. The Commission was not convinced, however, that the widely varying and, in many instances, very large increases proposed in the commodity rates had been
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supported by sufficiently specific evidence to permit the Commission to establish as reasonable the particular rates or level of rates proposed or that the sampling of the test period was large enough to conclusively show the lack of movements under the numerous commodity rates proposed to be cancelled and on which many of the large percentage increases would result. Under the circumstances, the Commission granted the increase in class rates sought but limited the increase in minimum charge to $4.10 per shipment instead of the varying $4.00 to $4.90 per shipment sought and limited the increase
in commodity rates to an interim measure of 3$> on articles other than
textile products and 6% on textile products. In the light of the absence of any substantive protests to the proposed increase in stopoff charges to the interstate level, the Commission authorized that increase. The Commission specifically retained jurisdiction in the proceeding for the purpose of further investigation into the commodity rates there involved.
RAILWAY EXPRESS
The financial status of the Railway Express Agency remained critical during the year. The continuing increase in the costs of materials and supplies as well as in the costs of terminal and vehicle equipment, coupled with inclement weather early in the year and interruptions in underlying line haul transportation, again forced the Express Agency to seek an emergency increase in its rates. On December 12 of last year and January 19 of this year, it filed
two applications seeking to increase class rates by 300 in charges stated in 10-pound increments for shipment weights of 1 to 100 pounds and 3% (minimum increase 25 cents per shipment) on shipments weighing over 100 pounds and sought authority to increase, by slightly less
than 4% overall, a number of its intrastate commodity rates. The Agency's regional marketing manager testified at the hearing that the Express Agency's financial condition was of great concern to its management, that its cash position had eroded due to increases in costs and reduction in volume to the point where its continued existence was problematical, that its actual deficit for the fiscal
year ended June 30, 1966, had amounted to 5-6 million dollars and
left the Railway Express Agency management with an almost insoluble problem as it had no equity capital to provide a cushion for hard times. In recognition of the continuing critical financial situa tion of the Agency and in view of the lack of opposition to the proposed increases, the Commission approved the increases sought to become effective not earlier than April 1. Throughout the year, there were other increases in rates in individual tariffs made effective on Railway Express traffic, all for the basic purpose of relieving the continuing financial distress of the Agency.
The status and future of the Railway Express Agency continues of great concern to all in the transportation field. The difficulties it expressed are due in large measure to factors over which it has
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no control - including the increase in size and weight limits of parcel post, the granting of additional operating rights to one of its major competitors (United Parcel Service), increased wage expense and wholesale discontinuance of passenger train service which the Express Agency has historically used for line haul transportation.
During the year, the Express Agency sought authority to close
26 express offices, 13 of such applications for discontinuance being
contingent on the approval by the Commission of concurrent applica tions of the railroads involved to discontinue agency service at the same stations. On the 13 contingent, the Commission approved the discontinuance of both the railroad agency and the express office at Acworth, Adairsville, Aragon, Butler, Byromville, Lindale, Nelson, Sargent, Sycamore, Warm Springs and Watkinsville as not being re quired by the public convenience and necessity but found that the public need did require continuance of both railway express service and the express offices at Buchanan and Helena and accordingly denied the agencies petition to group the offices at those points. Of the 13 other applications, the Commission granted authority to close the express offices at Baconton, Boston, Chamblee, Crawford, Crawfordville, Flowery Branch, Haralson, Lumber City, Mansfield, Reynolds, Shannon and Waverly Hall but denied the application to close the express office at Hamilton.
RAIL PASSENGER SERVICE
There was only one application to the Commission during 1968
for authority to discontinue operation of passenger train service most such applications involving trains operating in Georgia now being filed with the Interstate Commerce Commission as a result of the jurisdiction granted that Commission by the Transportation Act of 1958.
In February, however, the Georgia Railroad did seek authority to discontinue operation of its Passenger Trains Nos. 3 and 4 between Atlanta and Augusta. These two trains were the last two night trains operated by this railroad on this route - Train No. 3 leaving Augusta at 2:20 a.m. daily and Train No. 4 leaving Atlanta at 8:45 p.m. daily. The applicant submitted the usual exhibits showing the route of the trains, the other services available along that route, the revenue from operation of the trains and the costs of operation
thereof - those statistics showing that for the calendar year 1967
Trains 3 and 4 operated a total of 123,633 miles and earned gross
revenues of $356,009 of which $28,633 consisted of passenger revenues, $176,671 mail revenues, $59*296 express revenues, $92,305 freight
(piggyback cars) revenues and $1,004 miscellaneous revenues The out-of-pocket express during the same period amounted to $39^*934,
resulting in a claimed net out-of-pocket loss of $35*925 for this
12 month period. A supplemental exhibit containing a pro forma
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statement showing the estimated revenues and projected expenses of
the two trains for the calendar year 1968 eliminated the piggyback
revenue since such was ao longer handled on these trains, used the
same passenger revenues as 1967, reduced the mail revenues to the
mail then thought to remain on the trains and eliminated all but the nominal amounts of express and miscellaneous revenues expected to be retained. These projections estimated the decline of revenues ex pected following the discontinuance of the connecting Seaboard Coast
Line trains on March 23, 1968, but failed to take into account the
total loss of mail later diverted from the trains by the Post Office Department* The pro forma projection with all adjustments indicated
a total loss for 1968 substantially in excess of $200,000. The Commission in 1961 denied a previous application to discontinue these
trains with a finding that the public convenience and necessity and use of the trains outweighed the losses then being incurred in the operation but the Commission now found that reasonable justification for their continued operation no longer existed in view of the loss of connecting train service and the mail and express revenues. Under the circumstances, the Commission reluctantly authorized the discontinuance of Trains 3 and ^ effective March 31-
RAIL FREIGHT
On June 19* the Interstate Commerce Commission issued its order in Ex Parte No. 259> authorizing the railroads to increase their rates and charges on interstate traffic. Those increased
interstate rates were made effective on June 2k and on June 28
the railroads operating intrastate in Georgia sought authority to increase their freight rates and charges on Georgia intrastate traffic to the same extent as had been increased on interstate traffic. This was the second general increase authorized by the Interstate Commerce Commission in less than a year and, as was the
case in the Ex Parte No. 256 proceeding last year, was based on the
need for additional revenue to meet the railroad's increased costs of doing business. The original selective increase sought by the railroads from the Interstate Commerce Commission would have brought a k.'jQfo increase in overall revenue but the interim increase under
consideration in this proceeding involved only the maximum of 3$
authorized on the emergency basis by the June order of the Interstate Commerce Commission. A large volume of statistics was submitted by representatives of the railroads showing results of operations of the carriers both individually and as a group for prior years and showing the resultant rates of return to have dropped to 3.15$ in
1967. These statistics also showed that the carrier-s' net working
capital (excluding materials and supplies) had declined to a new
low of 31-1 million in 1967 that the ratio of current assets to current liabilities had dropped by 32$ and that their 1967 such
ratio of 115$ was the poorest in the past decade. The total long term debt of the railroads was shown to have continued to climb -
increasing to over 33$ higher than that owed on December 31, 1959.
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In further justification for the emergency interim increase pro posed, the carriers submitted details of additional increases in operating costs which had been incurred since the granting of the
Ex Parte No. 256 increase last year, showing those increases for the Georgia Class I railroads to amount to $5^.2 million - principally
in the areas of wages and related costs. To illustrate the poor financial standing of the Class I railroads of the nation as com pared with the country's other major industries, the carriers sub mitted an exhibit showing graphically the rate of return on the net worth of each, this exhibit ranking the Class I railroads No. 72 among the principal corporations of the nation on that basis, with the rate of return of the railroads being lower than that of all modes of transportation as a group. Representatives of individual carriers all emphasized their need for additional revenues, showing the impact of increased costs on their company's operations and the resultant unfavorable financial conditions of their lines. Shipper protests to the increases sought included representatives of paper mills, a soft drink manufacturer, a cement manufacturer and forest products manufacturer and processors of sand, gravel and crushed stone. Each sought exception from the increase for the commodities shipped by them or to them, with the paper mill representatives disputing the need for any increase and making the specific request that this Commission take no action on the railroads' petition pending the final determination of the interstate level of increase by the Interstate Commerce Commission. The Commission found that the carriers had demonstrated a need for additional revenue and that there was no valid reason for delaying the granting of the needed relief since the interstate increase had already been in effect for over five months and that past experience in similar proceedings indicated little likelihood that any of the interim increases autho rized by the Interstate Commerce Commission would be lowered significantly if at all by the final order of that Commission and that in all probability most of the original increases sought would be granted. Under the circumstances, the Commission approved the increases, making only one exception thereto - that being to limit the increase in the rate on Port Wentworth-Atlanta carload shipments
of sugar subject to 180,000 pound carload minimum weight to preserve
the relationship between that rate and the rates on sugar subject to lower minimum weights - permitting the approved increases to become effective not earlier than December 15 on not less than 10 days' notice, with the provision that where adjustments were made on specific commodities or specific services as a result of the Inter state Commerce Commission's further investigation in Ex Parte No. 259? similar adjustment would be made on Georgia intrastate traffic*
During the year the railroads sought increase in charges in two specific major categories - in minimum charge per car and in switching charges*
In the minimum charge per car proceeding, the railroads
sought authority to increase that charge from $38.76 to $^0^00 (plus Ex Parte 256 increase) and to simultaneously remove the com
modity exception applied in connection with that charge - the result being that the minimum charge per car of $Ul.20 would apply yithout
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general commodity exceptions. The principal such exceptions to the application of this charge were crushed stone, gravel, sand, logs, pulpwood (including chips), shavings and cement. The railroad's basic contention at the hearing was that the existing minimum per car charge failed in most instances to return out-of*pocket costs and that the railroads were thus handling much short haul traffic at an actual deficit. Statistics were introduced showing for such movements revenues and costs and projections of increased earnings from application of the new charge. There was some opposition at the hearing - the principal objection being against the effect of the increase on a specific point to point rate on stone from Nelson to Ball Ground and the carriers agreed to except that rate from the increased charge. The Commission found the record conclusive that a number of movements of low rated commodities were failing to return to the railroads the out-of-pocket costs of handling that traffic and that while the Commission in the past had been reluctant to per mit the application of the minimum per car charge on movements of low rated commodities, it was obvious that the movements, in the absence of compelling reasons otherwise, should at least bear somewhere near the carrier's average out-of-pocket costs of handling the traffic. Under the circumstances, the Commission approved the general appli cation of this minimum per car charge and the elimination of the commodity exceptions thereto but required the exception of the Nelson-Ball Ground stone rate, the continuance of other similar specific exceptions as were then in effect and in addition required that the rate on stone to the Atlanta area from Lithonia, Stockbridge and Tyrone be made not subject to the minimum per car charge in view of the establishment of that rate to meet the specific requirements of the competitive situation existing in the Atlanta area on this traffic.
By petition dated March 22, the railroads sought authority to make effective on Georgia intrastate traffic the same increases in switching charges as were approved by the Interstate Commerce
Commission to become effective on interstate traffic on August 27, 1965. The increase then approved on interstate traffic was 10$ on
switching charges for intra-plant, intra-terminal and inter-terminal movements and on switching charges for movements in connection with line haul transportation when such charges are paid by consignor or consignee. At the hearing, the railroads presented exhibits showing an elaborate development of the costs of these services, such costs being derived in part from recognized formulae widely used for com putation of costs per switch engine minute and previously accepted by this Commission in similar previous rate proceedings - the cost
so developed amounting to $96.52 per engine minute. * Based on such
cost, together with the average costs per car of car ownership, maintenance and depreciation, the applicants computed the average costs of the various switching movements in Georgia. In addition, there were submitted exhibits showing for certain studied switching movements in Savannah and Atlanta, the actual switch engine minutes per car, the switch engine handling costs per car and ownership costs per car - together with comparison of the total cost for each such switching movement with the proposed revenue per car. These studies
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indicated that all the movements except one were being operated at a deficit even at the proposed increased charges. Protest was expressed against the proposed increase by representative of an Atlanta steel mill who cited competition of his company with steel mills in Alabama, contending that charges for comparable services available to those competing mills were less than those proposed for application in Georgia. The Commission found that the need of the carriers for additional revenue in general and the costs being increased in this type of operation in particular justified the
authorization of a 10$> increase generally on charges for intrastate
switching movements in Georgia. It declined to authorize, however, without more complete showing than was made at the hearing in this proceeding, any further increase in the switching charges on scrap iron or steel moving in terminal switching movements in Atlanta or moving on the special switching charge to the steel mill in Atlanta* The Commission further found that it had been determined in a sepa rate proceeding that the railroads had made special arrangements for the handling of pulpwood to mills in Alabama whereby those mills incurred no switching charges to the competitive disadvantage of Georgia paper mills and here held that since this discriminatory situation still existed, it would not either permit any increase in line haul switching charges on pulpwood.
RAIL AGENCY SERVICE
The railroads continue to seek authority to discontinue their agency services at the smaller towns - either due to declin ing revenue from such stations or to change in consist of traffic to and from such stations to such as does not require the services
of an agent. This year, the Commission processed 1*+ such applica
tions and, as is its established custom, adhered to the policy of deciding those applications on the need for and use of the service rendered rather than solely on the statistical showing of revenue versus cost* After finding that the public convenience and necessity no longer demanded the services of an agent at such points, the Commission authorized the discontinuance of agency service at Acworth, Adairsville, Aragon, Butler, Byromville, Coolidge, Hiram, Lindale, Nelson, Sargent, Sycamore, Warm Springs and Watkinsville. The need for agency service at Buchanan was found to outweigh the savings to the railroads from its discontinuance and the Commission denied authority to close the agencies at that point.
During the year there were two more consolidations of agency services sought whereby one agent proposed to provide agency service at two stations. The Southern Railway sought to establish such dual agency service at its stations of Helena and McRae but, following public hearing at which there was substantial objection to the method proposed to operate such combined facilities, the Commission declined to approve the application, but indicated it
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would give further consideration thereto if satisfactory arrange ments could be made to provide for better location of the proposed joint facilities. The Central of Georgia Railway sought to estab lish the dual service at its stations of Howard and Reynolds and following public hearing and finding that the proposed service would be adequate, the Commission approved this dual agency plan, effective
August 1 .
On July 23, the Central of Georgia Railway sought to establish a new type of agency service in the State - that being the creation of a ''mobile agent" who would replace the resident agents at several stations and, by traveling in a carrier-owned station wagon via highway between a base station and the stations to be served, would perform necessary agency functions at those points. The first such mobile agency proposed to be established was to provide agency services for the stations of Statesboro, Metter, Midville and Wadley and would replace the resident agencies at those four points. The proposal was to base the mobile agent at Millen - a main-line station operated 2b hours a day - with telephone service between all the involved stations and the base station to be provided by the carrier and with the base station to be able to contact the mobile agent via radio installed in the station wagon used by the mobile agent. There was substantial opposition from some of the stations involved - principally from Statesboro - to this new concept of agency service. Most of such protests were based on the fear that the proposed service would be inadequate to meet the needs of local interests. Under the circumstances and in order to develop the feasibility of such an arrangement (which offered the benefit of providing potentially adequate agency service to small local stations at a cost more in line with the revenues being obtained thus insuring for a longer period the retention of agency service at those points), the Commission permitted the establishment of this mobile agency service but only on a six months' trial basis. Such approval was subject to the provision that following such trial and such public hearing as may prove to be necessary, the Commission would require the re establishment of resident agency service if the mobile agency service proved inadequate. The Commission's conditional approval also specified that a Commission representative would fully check the mobile agency operation for adequacy of service at intervals during the test period by actually making the rounds of the stations with the agent. The mobile agency operation serving these stations proved upon test to provide an entirely adequate service to all of the stations involved, being found by the Commission's representa tive to satisfactorily replace the resident agents and to meet the needs of all the railroad customers in the area. Not only was the mobile service found to be adequate but a number of shippers indicated their preference for the new procedure under which the mobile agent came to their places of business rather than the shippers going to the railroad depot.
bd

WESTERN & ATLANTIC RAILROAD

The annual report of the lessee of the Western & Atlantic
Railroad for the calendar year 1968 shows for the net expenditures
charged to the accounting classification ''Additions and Betterments"
by classes of railroad property, the following amounts:

Improved Track Material................. $179? 132.81

Superior Ballast ........................

73*51

Grading and Drainage . . . . . . . . . . . 1,626.62

Bridges, Trestles and Culverts . . . . . . 10,306.05

Yard Tracks and Sidings. ................ 58,0^2.12

Station and Office Buildings ............

737.21

Communication Systems...............

2,070.78

Signals and Interlockers . . . . . . . . . 37,682.80

Grade Crossings............

2,396*93

Public Improvements - Construction . . . . 21+0,758.13

The above additions reported are after deduction for value
of property replaced during the year and total $52^,558*68. The net capital expenditures made by the lessee for additions and im provements to the Western & Atlantic Railroad from the beginning
of the lease in 1919 through December 31, 1968, amount to $9,0^+3,137

As pointed out in last year's report, the new lease of the
Western & Atlantic Railroad was put out for competitive bid in
November of 1968. The State Properties Control Commission, following
opening of the bids, formally declared the Louisville and Nashville
Railroad to be the highest responsible bidder and unanimously voted
to forward the bid of that company to t;he General Assembly at its
1968 session for its confirmation or rejection as provided by the
State Properties Control Code. Such was done and the General
Assembly at its 1968 session approved the new lease of the Western
& Atlantic Railroad to the Louisville and Nashville Railroad.

There still remained a number of matters to be handled in the termination of the old lease, including the question of possible State acquisition of facilities built or acquired by the lessee under the old lease. Later in the year, following extensive review of the matter by both its staff and the consulting engineers engaged by it for that purpose, the State Properties Control Commission concluded that it would not be in the best interest of the State to exercise its right under the old lease to acquire the available side track facilities and Tilford Yard - the basic conclusion being that the multimillion dollar cost of such purchase would outweigh the potential benefits of ownership of the properties.

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