98th Report

Of The

a'S;

kf

Georgia Public

Service Commission

January 1, 19 70 To
January 1, 1971

DD ADY RiKmc DY ro OF fi.

June 15 1972

BOUND BY THE NATIONAL LIBRARY BINDERY CO. OF GA.

0 I TO: His Excellency Jimmy Carter

ft I

Governor of Georgia

Dear Governor Carter:
As provided by law, the Georgia Public Service Commission submits herewith the 98th Annual Report of the regulatory activities of the Commission for the year ending December 31, 1970.

Respectfully submitted,

IrO A U ^ J f William H. Kimbrougliy Chairman

Ben T. Wiggins, Vc^Chairman

Crawford/Z. Pilcher, Commissioner

^Alpha A. Fowler, Commissioner

**Walter R. McDonald, Commissioner
*Term ended December 31, 1970 f*Deceased

June 15, 1972
TO: His Excellency Jimmy Carter Governor of Georgia
Dear Governor Carter: As provided by law, the Georgia Public Service Commission
submits herewith the 98th Annual Report of the regulatory activities of the Commission for the year ending December 31, 1970.
Respectfully submitted

Crawford/EK.. Pilcher, Commissioner

*Alpha A. Fowler, Commissioner

`Term ended December 31, 1970 Deceased

^Walter R. McDonald, Commissioner

v-'i

S T A T E OF G E O R G I A JIMMY" CARTER, GOVERNOR
98th Report of
GEORGIA PUBLIC SERVICE COMMISSION 21+lj. Washington Street, S.W. Atlanta, Georgia 3033^-
January 1, 1970 to January 1, 1971
William H. Kimbrough, Chairman Ben T. Wiggins, Vice Chairman Alpha A. Fowler, Jr., Commissioner Walter R. McDonald, Commissioner Crawford L. Pilcher, Commissioner
A. 0. Randall, Secretary

LIST OF CHAIRMEN OF THE COMMISSION

James M. Smith

Nov. 10, 1879 to 1882

Campbell Wallace

1882 to 188U

James M. Smith Campbell Wallace L. N. Trammell T. C. Crenshaw Spencer Atkinson J. P. Brown H. W. Hill S. G. McLendon H. W. Hill C. M. Candler Paul Trammell James A. Perry

188U to 1885
1885 to I890 1890 to 1900 1900 to 1901 1901 to 1903 1903 to 1905 1905 to 1907 1907 to 1909 1909 to 19 11 19 11 to 1922 1922 to 1926 1926 to 1933

Jud P. Wilhoit

1933 to 1937

Walter R. McDonald 1937 to 19^9

Matt L. McWhorter

I9U9 to i960

Crawford L . Pilcher i960 to 1969

William H. Kimbrough 1969 to 1971

- 3 -

98TH a n n u a l r e p o r t
Introduction
The Annual Report of the Georgia Public Service Com mission covering the activities for the year ending December 31?
1970s is submitted herewith in compliance with law.
The personnel of the Commission as of December 31? 1970? are as follows :
William H. Kimbrough, Chairman Ben T. Wiggins, Vice Chairman Alpha A. Fowler, Jr., Commissioner Walter R. McDonald, Commissioner Crawford L. Pilcher, Commissioner
It should be reported, however, that the Commission in Executive Session on December 30? 1970, unanimously elected Vice Chairman Ben T. Wiggins as Chairman of the Commission, and Commissioner Walter R. McDonald as Vice Chairman of the Com mission, for a term of two years, commencing January 1, 1971 It should also be reported that Honorable Robert C. (Bobby) Pafford of Lakeland, Georgia, was elected to succeed Honorable Alpha A. Fowler in the General Election of 1970, for the term commencing January 1, 1971
A list of the Commission staff personnel is as follows:
A. 0. Randall, Executive Secretary and Legal Aide Mrs. Mae A. Montgomery, Reporter
UTILITY ENGINEERING SECTION
Robert B. Alford, Chief Utilities Engineer IV Douglas N. Smith, Senior Utilities Engineer III Charles W. Worthy, Utilities Engineer II
AUDITING SECTION
Frank G. Heald, Public Utilities Auditor J. Winford Poitevint, Accountant II Nolan E. Ragsdale, Accountant II Thomas G. Arnold, Accountant II (Fiscal and Personnel) Mrs. Laraine Abercrombie, Accounting Clerk II (Fiscal)

i-jQt

:^9vco-

0tpj[

icfol alunno



olatifQSfoD

( y*<

>09JLra c i

C 1:;

.
GHB e d Mrjor.
noissi:in <j ':>

'tJt'i. :

dti b a A I # 1 & btjM ix
T Z $ ft .


oiXdi
:}0 tj&

e| *2
trr/i ,, f

TRANSPORTATION SECTION
David 0. Bensons Transportation Rate Expert^ J. Fred Parker, Transportation Rate Specialist II L. Thomas Doyal, Transportation Rate Specialist II?
and Chief Law Enforcement Officer Albert R. Bush, Transportation Rate Specialist I George E. Thurmond, Civil Defense Officer Larry L. Carpenter, Registration Supervisor
All other employees as of December 31> 1970, are listed in alphabetical order as followsi
Mrs. Gayle Arnold, Stenographer II Mrs. Carolyn Baxley, Stenographer III Gilbert Bentley, Clerk II (Temporary) Mrs. Helen Faye Bonham, Clerk II Mrs. Mozelle Colquitt, Stenographer III William S. Craton, Law Enforcement Officer Herbert R. Daugherty, Law Enforcement Officer Mrs. Shirley A. Demarest, Stenographer III Mrs. Ann R. Donehoo, Stenographer IV W. E. Doolittle, Law Enforcement Officer Bobby Edmondson, Utility Clerk Janice M.. Ferst, Clerk II Janice A. Hardy, Stenographer II Mrs. Mary F. Heaton, Clerk II Miss Carrie B. Hughes, Stenographer II Mrs. Linda H. Ingle, Stenographer II Miss Carolyn B. Jenkins, Typist II Nancy J. Lydecker, Stenographer III Mrs. Virginia R. Mann, Stenographer III^ Judson R. McGinnis, Law Enforcement Officer David R. Meeks, Supervisor Law Enforcement Mrs. Patricia A. Moon, Stenographer III Mrs. Rubye D. Otwell, Clerk III
Sandra R. Pace, Clerk II Mrs. Patsy B. Porter, Stenographer IV John R. Price, Stenographer IV Ernest A. Sims, Law Enforcement Officer Mrs. Rosalind B. Walker, Clerk I S. A. Wheeler, Sr., Law Enforcement Officer Floyd A. White, Law Enforcement Officer Mrs. Marian D. Wooten, Stenographer II
During the year, the following former employees resigned:
Miss Marlyn Harnage, Clerk II Mrs. Joan H. Wilson, Stenographer II Mrs. Pauline Lannoch, Stenographer III
- 5 -

Tp' rr; ^il-ftioqa

icijiTcogai

:& aaa^jLCjw * >r*J; 1XA
31:o I ( ?'i ' s i a jj:f >o.'c t c f :.:ri .i $

fbcits

. a'ir.

( T* 'toqui ST i 11 >i-:s I :5 ,,

:is E b a c i l l o

.17. linoXX t tfiBriiae' grn' rtalaH. ,, a iii

> .m9f>,A'c^*;v;' '.Otl. <n o j`.'rO , 3 m s illiV ?

i o IT^O

limi jjgtf'fs '1&@ Jjfefrt&thteH

' .sdq& Tg(. ta

f. " ' . - - v . fli : iX ;

1 ' '.' sd .' ; iicCf H. ;mA ,
`aolTIC tt :mz : ' y. . .f rloct ,S ,:

19

1d<#0@

*;.. U&'r

Q"M I l . Jhrts}

Tf&jT30i*8#3 |9J|i l i ..li tra iti

:-4$|r if 1

.a ti o *is o

* 4 0 ^ 1 I* \;oftsH


.JSrfe

HH1 p n i l o ,#i'

A m.&s JhlS bH.-

I#*#

jbfifcH

tttt r a d M I

^PiSw>Jt*x' flO l

t li

f tx1 j.

sxfi;

.SIM

.H ^ fcvr fis.f< ,Hi a ri" ,! n.(.; .Ztfi
III tfiqe'X^Cifinia ri-dC/ifCuT 3H M JBcI ,3*K

Regretfully, we report that one former employee, Mrs. Lucile A. Tuggle, Stenographer IV and Secretary to Commissioner Walter R. McDonald, was killed in an automobile accident on March 27, 1970. We also must report that one employee of the Commission for thirty- our years, Mrs. Mozelle Colquitt, Stenographer III and Secretary to A. 0. Randall, Secretary of the Commission, retired on December 31> 3*970. During the Christmas season she was honored at a very lovely party given by Commissioner Walter R. McDonald.

rXiT T9J

;'if!?Ov

K

.

XjuisdQ

.J-ait y ?\rcti'Ci
W *261

PUBLIC HEARINGS
During the year, the Commission conducted three hundred forty-five public hearings. Public hearings commence on the second and fourth Tuesdays in each month and continue on successive days thereafter 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 constituting a quorum.

MOTOR CARRIER CERTIFICATE AND LICENSE FEES

The Commission is charged with the responsibility of col lecting and accounting for motor carrier certificate and license fees. The total certificate, permit and license fees collected and remitted to the State Treasurer during the year 1970 are as follows,,

Certificate fees at $35*00 each and certificate

transfer fees at $7*50 each

$ 2 ,885.00

Registration permit fees at $25.00 each and
amendment fees at $5*00 each

29*875*00

Regular license fees at $25*00 each

283*600.00

Regular identification stamp fees at $25.00
each; regular identification stamp fees at
$1.00 each; replacement stamp fees at $1.00
each; and multiple registration stamp fees
at $1.00 each

3 2 1,76^.00

TOTAL

$ 638,12^.00

In addition to the foregoing certificate and license fees
of $638,12J-1-.00 collected by the Commission* the railroads and
utilities under the jurisdiction of the Commission were subject to
a tax assessment 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 $918*12^.00 available for appropriation
to the Commission

- 7 -

COMMISSION DECISIONS

During the year 1970, the following Executive Session decisions were made by the Commission:

Motor Carrier Decisions :

Certificate Applications :

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

82

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

1^

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

y

Dismissed - - - - - - - - - - - - - - - - - - -

Vi

Total

Certificate Transfer Applications :

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

31

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

0

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

3

Total -..... ..... 3^

Certificate Amendment Applications Approved - - - - - - - - - - - - - - - - - - Withdrawn - - - - - - - - - - - - - - - - - Dismissed - - - - - - - - - - - - - - - - - Total

83
1 3

-- --

87

Certificate Control through Transfer of Capital Stock - - - - - - - - - - - - - - - - - -

Certificates Cancelled - - - - - - - - - - - - - -

20

Certificates Suspended - - - - - - - - - - - - - -

79

Certificates Reinstated . - w - - - - - - - - - -

53

T o t a l ---- -- .... 152

Registration Permits Cancelled (Undetermined)

Rules Nisi Issued - - - - - - - - - - - - - - - -

^

Rules Nisi Dismissed - - - - - - - - - - - - - - -

27

Total ----------- 71

Insurance and Permit Rules Nisi Issued (Undetermined) Miscellaneous (Extensions, Reconsiderations, Refunds, etc.) 157

Transportation Rates & Service Department:

Docket Decisions

Railroads - - - - - - - - - - - - - - - - - - -

13

Motor Carriers - - - - - - - - - - - - - - - - -

10

Non-docket Decisions - - - - - - - - - - - - - - - v97__ T o t a l -- -- --- --- 720

Utility Rates & Service Department: Docket Decisions - - - - - - - Non-docket Decisions - - - - - -

----------- 112

------

^

T o t a l ----------- 258

TOTAL, ALL DECISIONS

1,607

me - -
I M m H ............. ~ ~ .. .. .. ..
6JDggA Sts&iaba^A ' so- ' :&&
`-o `'taiai. B'? '.iifrjotdj i:cr.>fnoO e^r TJ t 5k - . -. . - ~ - .. ..................................... ]
t e M raT mluft
aaol

AREA TRANSPORTATION SUPERVISION
Area Transportation Supervision, a part of the Commission's Transpor tation Division under direction of David 0. Benson, is headed by L. T. Doyal, Assistant to Director, with duties as Chief of Area Transportation Supervisors. In addition, this section consists of a supervisor of the area supervisors and eight field personnel, including one hired by the Commission on December 1, 1970* These area supervisors are assigned specific territories in the State ranging from three counties (Atlanta area) to as many as thirty-six counties in the southwest section of the state. The Commission's Area Transportation Supervisors make detailed inspections of the general operations of motor transportation companies under the Commission's jurisdiction to determine if they are conducting operations within the scope of the operating authority granted by the Com mission and in accordance with the Commission's rules and regulations and the laws of Georgia relating to ''for hire" motor carrier operations. This includes conducting sa,fety checks of carriers motor vehicles to ensure safe operations over the highways: performing periodic road checks for both safety and economic performance by motor carriers in accordance with the Commission's rules and regulations; examination of the carriers files, books, etc.; interrogation of carrier's personnel and offering advice to carriers when needed or requested. In addition, the area supervisor per forms other assignments related to the duties of the Public Service Com mission as specifically designated.
The Commission completed its second calendar year of operations under the Uniform Registration Standards of Public Law 89-170 applicable to carriers operating solely in interstate commerce over the highways of Georgia under authority granted by the Interstate Commerce Commission or operating in interstate commerce specifically exempt from the jurisdiction of the Interstate Commerce Commission. These standards were determined by the National Association of Regulatory Utility 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. Section ?02 (b)(2)). While the respective states were allowed five years from enactment to adopt the provisions of Public Law 89-170, Georgia was the second state to ef
fectuate the standards and has pioneered man5r of the procedures for other
states to follow in adopting such standards.
During 1970, the Chief of Area Transportation Supervision and all Area Supervisors conducted several major road checks throughout the state, as well as numerous other short tenure checks spotted in strategic loca tions in the state. The major road checks ranged from three to five days duration and were operated on a twenty-four hour per day schedule. Ifeny lesser checks were operated from several hours duration to one or two days, including a number of specific safety checks of carrier's fleets of vehicles performed at night at carrier's terminal facilities. These road checks
-9 -

resulted in the apprehension and arrest of many violators operating in Georgia without proper authority from the Interstate Commerce Commission or the Georgia Public Service Commission as well as collection of several thousand dollars in GPSC vehicle registration fees. During such checks, many vehicles were discovered with serious mechanical deficiencies which were required to be repaired on the scene, if severe enough., or brought to the attention of the carriers for subsequent repair if less serious. In addition, the Area Transportation Supervision section perfomed a number of joint investigations with the Interstate Commerce Commission and the Department of Transportation under cooperative agreements between the Com-^ mission and these respective Federal Agencies. A number of the Commission s Area Supervisors participated in several safety road checks conducive . j Safety Council of the Georgia Motor Trucking Association to further encourage carriers to maintain their vehicles in safe operating condition for e -ene
fit of the public using our highways.

Processing of all interstate registration of authority applications and amendments thereto, together with issuance of all intrastate and inter state Georgia Public Service Commission motor vehicle registrations were ; handled through the Area Transportation Supervision Section and resulted m collection of fees as summarized on Page 7 of this report.

The Commission's eight Area Transportation Supervisors (one for the
month of December only) performed 756 individual vehicle safety inspections; 1 062 inspections for operating authority and proper vehicle registration resulting in direct collection of $l6,U75 in vehicle registration iees. 380 arrests were made throughout the state stemming mainly^from intrastate

and interstate "for hire" operations without proper authority either from
this Commission or the Interstate Commerce Commission. This represents an increase of 27 percent over the number of arrests made in 1969. These

arrests resulted in bonds totaling

being posted in the counties

where arrests were made. The Commission's Area Supervisors also performed
718 rate checks of intrastate "for hire" carriers and 70o other personal

contacts were made on Commission business.

10 -

TRANSPORTATION General

During 1970, 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), 621 transportation rate and service matters, a considerable number of which required lengthy studies and investigations in the field.

FORMAL CASES FOR YEAR 1970

Docket No. Date

4021-M 4023- M 4024- M

2-19-70

Non-Docket 2-19-70

Subject
Application of motor carriers of cement in bulk for authority to increase rates.
Application of Wrightsville and Tennille Railroad for authority to dualize its agency services at Dublin and Wrightsville.

Disposition Approved
Approved, subject to notice provisions

Non-Docket 2-19-70

Application of Central of Georgia Railx-jay for authority to establish a mobile agency operation serving the stations of Barnesville, Thomaston and Jonesboro.

Approved
on 6 months
test basis

4022-M

3-4-70

Application of Georgia Household Goods Movers Association, Inc. to increase hourly rates for the transportation of household goods.

Approved in part

699-R

3-26-70

Application of Seaboard Coast Line Railroad for authority to discon tinue agency service at Emory University and to place its facil ities and services at that point on a non-agency prepay basis.

Approved

700-R

4-30-70

Application of Central of Georgia Railway for authority to discon tinue operation of its Passenger Trains Nos. 9 and 10 (The "Man 0 * War11) between Columbus and Atlanta.

Approved

Non-Docket 5-28-70

Application of Louisville & Nashville Railroad for authority to discontinue agency service at Ranger, to discontinue handling less-than-carload freight at that point and to remove its depot at
Ranger.

Approved

- 11

FORMAL CASES FOR YEAR 1970 (Cont*d)

Docket N o . Date

Subject

Disposition

698-R

5-28-70

Application of Southern Railway for authority to discontinue agency service at Locust Grove, to discon tinue handling less-than-carload freight at that point, to dismantle the Locust Grove station building and to substitute a non-agency pre pay station for the handling of carload freight only at that point.

Approved

2nd Supp. 3918-M

5-29-70

Application of Class "A" motor common carriers of property for authority to increase their mini mum charge to $4.60 per shipment and to increase rates on shipments
weighing less than 1 , 0 0 0 pounds by
5%.

Expiration date extended for an addi tional 7 months* period

Non-Docket 5-29-70

Application of Atlanta Terminal Company and Central of Georgia Railway for authority to discon tinue use by the "Nancy Hanks" trains of the Atlanta Terminal Station and to provide substitute facilities at the Southern Railxva.y Company building on Spring Street.

Approved, subject to notice provisions

Non-Docket 5-29-70

Application of Southern Railway for authority to discontinue its use of the passenger facilities of the Atlanta Terminal Station and to transfer such service to its Atlanta Peachtree Station.

Approved, subject to renovation of the Peachtree Station facil ities and sub ject to notice provisions

690-R

5-29-70

Application of Southern Railway and the Atlanta & Charlotte Air Line Railway for permission and approval to institute condemna tion proceedings for the purpose of acquiring certain property in DeKalb and Gwinnett Counties, Georgia to be used in construc tion of new yard facilities.

Approved

4098-M

6-10-70 Application of Fort Gordon Bus Company for increase in fares.

Approved

- 12

, Q n o .z'n rx q

''

i

H e il in s iiju o S to

. A ftg o jta u D <* m &

" b m M iJ k M J b m f 9 0 -

- & mbmo

* se o rp iw j ms 10t n o t

;:

em v \

" ` rm j t

r f P K t w io o f i i tetigM igi

<i,^|ip^^^^WI^py^y,y'

' rroxqqA

p i V 1' r-ij ,- i. -'.<f>*1

FORMAL CASES FOR YEAR 1970 (Confc'd)

Docket No . Date

Subject

Disposition

Non-Docket 6-18-70

Application of Seaboard Coast Line Withdrawn Railroad for authority to establish a mobile agency operation serving the stations of Ailey, Glenwood, Alamo, Soperton, Ochwalkee and Tarrytown.

703-R

6-30-70

Application of Railway Express

Approved

Agency, Inc. for authority to close

its express office at Damascus.

708-R

7- 30-70

Application of Louisville & Nashville Railroad for permission and approval to institute condem nation proceedings for the pur pose of acquiring certain proper ties located in Bartow County to be used for construction of a switching track connecting the Seaboard Coast Line Railroad main track and the Western & Atlantic Railroad (leased by the Louisville & Nashville Railroad Company) main track near Cartersville.

Approved

701-R 701-R

8- 17-70

Application of all railroads opera- Approved,

ting intrastate within the State

with excep-

of Georgia for authority to in-

tions

crease their freight rates and

charges on Georgia intrastate traf

fic to the same extent as inter

state rates and charges were in

creased under authority of orders

of the Interstate Commerce Commis

sion in Ex Parte No. 262.

9-1-70

Petition and motion on behalf of certain paper manufacturers for reconsideration of the Commissions order in this proceeding dated August 17, 1970.

Motion and petition as signed for oral argument

Non-Docket 9-15-70

Application of Railway Express Agency, Inc. for authority to close the express office at Belleville.

Approved

702-R

9-25-70

Application of Georgia Railroad for authority to discontinue agency service at Crawford.

Approved

FORMAL CASES FOR YEAR 1970 (Cont'd)

Docket Ho . Date

705-R

9-25-70

Subject
Application of Georgia, Southern & Florida Railway for authority to discontinue the services of its employee at its non-agency station at Warner Robins.

Disposition Approved

Non-Docket 9-28-70

Application of Atlanta and West Point Railroad for authority to discontinue agency service at Hogansville.

4175-M

10-20-70

Application of Class "C" carrier members of Georgia Motor Trucking Association Cartage Tariff No. 4 for authority to increase rates and charges.

Approved
Approved, with excep tions as to carriers and commodities

712-R

10-21-70 Application of Railway Express Agency, Inc. for authority to increase rates.

Withdrawn

Non-Docket

10-29-70

Application of Railway Express Agency, Inc. for authority to close the express office at Gordon.

Approved

704-R

11-6-70

Application of Georgia, Southern & Denied Florida Railway for authority to discontinue agency service at Hahira, to dismantle its station building at that point and to place its facilities and services at Hahira on a non-agency prepay basis.

709-R 4168-M

11-6-70

Application of Railway Express

Denied

Agency, Inc. for authority to close

the express office at Hahira.

11-10-70

Application of National Bus Traffic Association, Inc. on behalf of the principal Georgia bus lines for authority to increase regular bus fares, commutation fares and the basis for round trip fares.

Approved for all applicants except South eastern Stages, Inc.

Non-Docket

11-10-70

Application of Georgia Railroad for Approved authority to combine its agencies at Grovetown and Augusta at the present location of its Augusta agency with provision that the joint agent be authorized to make trips to Grovetown as necessary.
- 14 -

FORMAL CASES FOR THE YEAR 1970 (ContM)

Docket N o . Date

Subject

Disposition

706-R

12-3-70

Application of Southern Railway for authority to discontinue agency service at Trenton, to dis continue handling less-than-carload freight at that point, to dismantle the Trenton station building and to substitute at Trenton a prepay station for the handling of carload freight only.

Denied

711-R

12-3-70

Non-Docket 12-3-70

Application of Railway Express Agency, Inc. for authority to close the express office at Trenton.

Denied

Application of Central of Georgia Approved
Railway for authority to establish on 6 months1
a mobile agency operation serving test basis
the stations of Forsyth, Monticello,
Smarr, Bolingbroke, Shady Dale,
Minetta, Armco and Machen.

Non-Docket 12-4-70

Application of Georgia Railroad for authority to consolidate its agency functions at Social Circle and Monroe by the establishment of a dual agency operation under the services of a single agent.

Approved

4181-H

12-23-70

Application of McKenzie Tank Lines, Inc. for authority to establish specialized, guaranteed-type service to standby users of liquefied petroleum gas.

Approved, with modifications

3rd Supp. 3918-H
and 4186-M

12-30-70

Application of Class "A" motor carriers of property for authority to increase rates and charges and to eliminate expiration date on prior authorization of increase in rates and charges.

Approved in part as to increase in rates and charges and expiration date cancelled

15

ac i

vii

\. ti&>1 i h'IjoS ic 'S'&diqqA

f3y

-sib ( 3 rjtoari Sb "

.

88dl gaiXijri ayaJtaoo

s $ tf3 l3 a d s ftl 0 3 btm s 2 b .tly < i &I3 lot. aolasa ^raqs*

39$ to %il

' ^ W - fd 3803

lgioaO to I'jriaaO *s IqQ ^i}j

noiosa :i : alido fi I

wroiqqA

m m j M aoino

bhoJ H
htifl >g:Bri> ' balIDflO #V

; :.:. ,; . SS l i i 5

H3 y a t o V .:-*ai. *

to noi o2 XtjgA

: ; .

3 : e.tra ,' >

oAoaJbui :.; o'J a :

BUS FARES AND SERVICES
At the end of 1970 there were 36 bus lines operating under the jurisdiction of the Commission providing passenger service between points in Georgia - the decrease of 4 lines in 1970 continuing the declining trend which began at the end of World War IX. While the number of bus lines in the State has followed the national pattern in declining sub stantially, the area and route coverage of the State's bus lines has been reduced only slightly even in the face of the ever increasing competition from the private automobile.
There were several rate adjustments during the year on the individual smaller carriers - all primarily due to declining patronage and the effects of inflation - and one major case involving all of the State's principal bus lines. In September the National Bus Traffic Association, acting on behalf of the principal Georgia bus lines, sought authority to increase Georgia intrastate intercity passenger fares by approximately 107., to increase commutation fares to a uniform level of
2 . 2 cents per mile (with a minimum of 30 cents), to change the basis of
determination of round trip fares from 1807. to 1907. of the one way fares and to increase package express rates by 157. with a minimum per shipment charge of $1.30. In addition, the bus lines sought to cancel the premium rates then applicable on certain floral shipments, making those commodi ties subject to the same rate provisions as other commodities. Following public hearing at which extensive and detailed exhibits were submitted by the bus lines in support of their proposal, the Commission found that the continuing substantial increases in costs of operation demanded that most of the applicants be permitted additional revenue in the form of increased passenger fares and increased express charges - particularly, when the resultant fares and express charges would still be lower than those on interstate traffic and in most of the other Southern states. It was further found, however, that one bus line, Southeastern Stages, because of its prime operating territory and extremely able and efficient management had an operating ratio still in the low 70*s and that such would not justify an increase in passenger fares for its account.
While there were many bus schedule changes made during the year, none had adverse effect on the traveling public intrastate in Georgia sufficient to require formal action by the Commission and such changes as were made reflected largely adjustments in long-haul opera tions
TRUCK RATES AND SERVICES
The continuing trend in Georgia and throughout the nation dur ing the year toward spiraling increase in costs of wages and materials foreed a wide range of adjustments in the rates of the motor carriers of property.
By application filed in December of last year and January of this year, the three principal motor carrier transporters of cement in bulk sought authority to increase their rates on cement and lime by
- 16

ami j *!>/#*

's ifcf' hI
5/19
as Br;fiaui;

'UZ281'
-,T9S >vsl j
u 1

:
fljl jaSr

*

JJfjgjg

rio

Mm Jo Boni

8fdd

D

D &AT'.

>3tg

--ni-I

SfltX X& orb Jtssiwo 03 Srfguo w i l l sud - J:; > a o h : b b a c d
niosccjJticfii Jtaato,

'.OE. I?

b$$lm *u B

I f t l O f M f .I

lo 3

' no. . ;<fqr. a &$ftOd n i 8SS#1

i Aderii i"-."'

jg #. 8> 'I W'j,.

b` .

cm aq d 83n . , .. > f,fra e t .Tflf *

&ffctlJO2 $&i}0 S fb 3tO ,ge; n i 1

aogatfB Rt

' i E'j.'il' and sto attuiit

i n i ;'i baia

bam r^

**

1

' . s ?i :o1 r '; *

? ;

ii m U riblnO'

: : ilduq g a lls ' n j

ne

yf)

I / .3?cJ .:v1 . tf ,:;g :os !j?ff!*j`- :: TtSpH 0 $ Ixxsi .>in e

>? P'ifl&SVttfr*fifi '.-f'

-.laNil' db,

raolaam *ij| iti; rVi*ior-; hn
BBXt&'S&as. btt& @1 lo a3&oo

approximately 13%. At the hearing, it was shown that the operating ratio of one of these carriers last year had varied from S5.1 to *03.9 with another claiming it had suffered a loss on the transportation o these products every year of its operation in Georgia. Following re view of exhibits shotting details of the carriers* operating coses an consideration of letters and telegrams from shippers stating they would not oppose the increase as sought, the Commission approved the adjust
ment of these rates as proposed.
By application filed in January, the Georgia Household Goo s Movers Association sought authority to increase by amounts ranging rora $1.50 to $2.00 per hour the various hourly charges in its tariff. At the hearing, the applicants submitted testimony indicating that t e m creases in these charges in the past seventeen years had amounte to far less than the increase in cost of operation during that perio . Several exhibits were submitted showing increases in specific elements of cost during the past two years - such indicating that labor costs alone had risen almost 30%. Following extensive analysis of carrier cost submissions and comparison with similar rates in other Southern states, the Commission found that the hourly rates for the transporta ^ tion of household goods should bear an increased portion of the carr ers cost of operation, but not, however, to the full extent sought. ccor ingly, the Commission authorized increase in these hourly charges ut to
a considerably lesser extent than sought.
In its orders in Docket 3918-M in 1969 authorizing increases
in charges for Class "A*1 motor common carriers of property, the Commis
sion, to insure that the additional revenue from such increases wou be channelled to the purpose of improvement in services and elimination of service complaints, made such increase subject to two expiration^ ates; first, 90 days from the effective date of the increases and, later in the year, a date reflecting a six-months* extension of the original ex piration date. In May the Commission recognized that, due to transfer of certificates covering a substantial portion of the operations of one of the major intrastate carriers and impending transfer of the authori ties of another substantial intrastate carrier, coupled with labor con tract difficulties then being experienced generally in the industry, the service picture had become confused with complaints then on the rise which might or might not have been due to the transfer of authorities and the accompanying necessity for revision in operations. According y, in order not to penalize those carriers which had definitely effected service improvements but to prevent any permanent approval of the in creased rates until it could be determined that service deficiencies had been eliminated to the extent possible, the Commission extended for an additional seven-month period authority for the increased rates.
By petition received in September, the Class "A" motor common carriers of property sought authority to further increase their rates and charges - the authority sought being basicly as follows: (1) In
crease class rates on shipments weighing less than 1 , 0 0 0 pounds to the interstate basis - an increase of approximately 8%; (2) Add to such^
increase on class-rated shipments weighing less than 500 pounds a dimin ishing scale of arbitraries - that further increase to be^incorporated
into the class rate scales and to return approximately 1 0 ^ increase in revenues in addition to the 8 % increase in the basic scales 5 (3) Can
cel all commodity rates on shipments under 500 pounds and apply in lieu
thereof class rates increased as indicated in (1 ) and (2 ) above;

mm

(4) Increase the minimum charge from the present $4.60 per shipment *-o an amount (varying with distance) from $5.08 to $6.11 per shipment.. t the hearing, the applicants submitted lengthy and detailed testimony and exhibits in support of their application and there appeared 26 protestants expressing opposition to the type, size and method of app ica tion of those increases. Following review of the cost shoxd.ng or the carriers, the Commission found that additional revenue was require promptly if they were to be expected to remain financially able to ren der necessary services to Georgia shippers. However, in consideration of the vigorous opposition to the type of increase sought and t e very large increase which would result in some rates, the Commission, x? l o approving the adjustment as proposed in class rates so far as it con cerned the first class scales, required that the lox*er class scales e so computed as to maintain existing relationships. In addition, e Commission authorized increase of 7% in commodity rates on shipments
weighing less than 1 , 0 0 0 pounds but limited the increased minimum charge
per shipment to $5.10.
By application filed in August, McKenzie Tank Lines, Inc. sought authority to establish a tariff rule which would provi e or a e quate revenues for the transportation under emergency conditions o liquefied petroleum gas to installations which use that fue as a s an by during the interruption of natural gas service. Upon finding _ a the special equipment required to transport this product was cost y ^ that the service involved was used only in emergencies and t at provi sions for the standby service should be made only xjith a guarantee o revenues therefrom adequate to prevent imposition of the cost on t e regular users of the service, the Commission authorized a modirie ru e which xjould provide for the service at adequate rates yet insure t a* the equipment it used would not be diverted from regular shippers.
By application received in August, the Georgia Motor Trucking Association sought authority to substantially increase rates an c arges for account of the Class "C" carriers party to its Cartage Tariff - the increases generally amounting to 15% but in some instances compoun m g recent specific rate increases to amount to an overall increase o up to 34%. Nine applicant witnesses testified at the hearing as to the severe increases in costs of operation experienced by these carriers - particu larly, in the field of labor - all indicating that their operating ratios were already at the high level of 96.3% for the group for t^e first six months of 1970 with some carriers operating at a substantial loss. The Commission found that the Cartage carriers must have addi tional revenues if they x/ere to be expected to maintain the high level of package transportation service so vital to the needs of the Atlanta metropolitan area and in recognition of the substantial increase m costs caused by severe inflation in the nation*s economy approve t e increases sought with only slight modification in ihe rate on can y which had already been subjected to increase prior to the proceeding.
RAILWAY EXPRESS
The Railx?ay Express Agency continues to have its financial problems in spite of its almost total conversion to motor carrier opera tion. The continuing increase in cost of materials and supplies, as well as in the cost of terminal and vehicle equipment, forced the Exprs
- 18 -

Agency to seek further increase in its rates applied nationally and a number of such national increases were effected during the year. Appli cations for similar increases were filed with this Commission earlier in the year, but following refusal of the Commission to authorize su n creased rates without justification therefor at public hearing, tne Express Agency in October withdrew its applications for further stu y.
During the year, the Express Agency sought authority to close five express offices - two of the five being contingent upon the dis continuance of the railroad agency service at the same pome. Commission denied both contingency applications - involving the at Hahira and Trenton - because of the finding that railroad agen Y service should be continued at those points. The Commission fou the need for the express office at Damascus, Belleville and cordon d not warrant the expense being incurred and accordingly approve app cations to discontinue those offices.
RAIL PASSENGER SERVICE
By application received in March, the Central of Georgia Rail way sought authority to discontinue operation of its Passenger Nos. 9 and 10 (The "Man 0* War") between Atlantaand Columbus. The "Man 0* War" trains were the last trains operated between Atlanta ana Columbus, being the remnants of the former two round trip daily "Man 0* War" trains operating between Columbus and Atlanta, whose orig inal equipment consisted of a number of lightweight, streamlined, m o d e m passenger cars which in their day were equal to the finest coach equ pment in the nation. Declining passenger trafficand the total loss of all mail and express traffic had reducedthe consist of the train t one locomotive and one combination baggage car-coach containing t* The applicant submitted testimony and exhibits to the efrect that m e trains were losing in excess of $125,000 per year and that the^average riding had declined to less than twenty-five passengers per trip. Public reaction to the proposed discontinuance of service was mixed. Five representatives of the railway labor unions whose members operate the trains appeared at the hearing in opposition, one public witness likewise appeared in opposition and the file contained thirteen ]ette and resolutions in opposition. On the other hand, four public wimesses appeared at the hearing supporting the discontinuance of service an
there was submitted a resolution by a committee of the Columbus Chamber of Commerce supporting the discontinuance of the trains. T e ommiss found that it was obvious that the traveling public in general had abandoned short-haul rail passenger service, including that provided by the "Man 0* War" trains, and that there was no hope of regaining either the mail or express traffic which left as support of the trains on y revenue from passengers which had dropped to the point where it was less than half of the expense of the crew alone. In recognition of the fact that the cost of operating the service far exceeded the use thereof and that the public convenience and necessity could not justify t e losses being incurred, the Commission approved the discontinuance of these last two trains between Columbus and Atlanta, effective 1 y ,
In May the Atlanta Terminal Company, operator of the passenger station facilities at the Atlanta Terminal Station, sought authority to discontinue use of its Terminal Station building an
- 19 -

provide passenger facilities and services at a new location to be rented by the Atlanta Terminal Company in the Southern Railway building across Mitchell Street from the existing station - the new location to be equipped with waiting room, ticket office and related facilities neces sary for those passengers using the "Nancy Hanks" trains. Concurrentapplication by the Southern Railway Company sought authority to transfer the terminal operations of the Southern Railway*s "Southern Crescent* and "Piedmont" trains to that line*s Peachtree Station - thus leaving the "Nancy Hanks" trains the only trains which would in the future uti lize the facilities of the Atlanta Terminal Station. After finding upon investigation that the substitute facilities proposed would adequately provide for the passengers using the "Nancy Hanks" trains, and in recog nition of the excessive cost of operation of the present Terminal Station of over $1,000,000 per year for only three trains, the Commission approved this transfer of station operations to become effective June 15, 1970, with proper notification in the station, on the trains and in the news papers to the public affected thereby.
As mentioned above, the Southern Railway, concurrently with the application of the Atlanta Terminal Company, sought authority to discon tinue its use of the passenger facilities of the Atlanta Terminal Station and to transfer such service to the Peachtree Station. After similar investigation of the proposed facilities and services, the Commission approved this transfer of passenger operations, subject to the same notice provisions as prescribed for the "Nancy Hanks" facilities.
In June the Commission received from the Louisville & Nashville Railroad notice of the proposal of that railroad to discontinue operation of its Passenger Trains Nos. 3-5 and 4-10 betx^een Atlanta and St. Louis, Missouri, effective July 7, 1970 - that notice being furnished in com pliance with the provisions of Section 13A of the Interstate Commerce Act. The trains involved were the last two trains operating between Atlanta and St. Louis via the important route through Chattanooga and Nashville, Tennessee and were the remnants of the "Georgian*1 which for merly operated between Atlanta and Chicago, with the Evansville, IndianaChicago, Illinois portion of the "Georgian" trains then being the sub ject of court proceedings concerning the restoration of operation between those points. On June 18 the Commission notified the Interstate Commerce Commission that, in view of the importance of these trains to the State of Georgia and the impending legislation in the Federal Congress to establish a national network of intercity railroad passenger service, the Commission opposed the proposed discontinuance of service and urged that the matter of discontinuance of these trains be held in obeyance pending enactment of such legislation by Congress and the absorption of this operation into the national network therein planned.
By the Rail Passenger Service Act of 1970 (Public Law 91-518), the Department of Transportation was required to determine a basic system of intercity rail passenger service which would be operated under the provisions of that law. This law took all authority over passenger train services operated under the Act from the Interstate Commerce Commission and the State Commissions, relieving the federal corporation designated to operate such service of regulatory supervision in operating the passenger trains included in that basic national network. The Department of Transportation on November 30 issued its preliminary designation of the basic rail passenger system and, in accordance with the provisions of the federal law, called for comments on that system to be made by the
20

State Commissions and other designated parties on or before December 30, 1970. The preliminary plan provided for various alternate routes through the State of Georgia of those operations serving the terminal points of New York and Miami, Chicago and Miami and New York and Nex* Orleans. - e Commission advised the Secretary of Transportation that it supporte s conclusions so far as it provided for retention of existing services on those routes through Georgia and for additional services on those routes xtfhere trains were not then operated. It was pointed out to the Secretary of Transportation that his office had left out of its recommendation three additional passenger train operations in the State of Georgia whic the Commission felt were important to the economy of the State and as necessary to the welfare of Georgia and of the South as were some of the proposed operations in the East and Midwest to those areas. Specifical y, the Commission recommended inclusion in the basic system, in addition to the services proposed in the preliminary plan, passenger train operations between Atlanta and Augusta (then provided by the Georgia Railroad), between Atlanta and Savannah (the "Nancy Hanks" then being operated by the Central of Georgia Railway) and between Montgomery, Alabama and Savannah (then being operated by the Seaboard Coast Line Railroad). It was emphasized that each of those operations would connect with routes already chosen to be included in the basic system and would provide for complete coordination with the basic system in linking together impor tant segments of Georgia and the South. It was further pointed out to the Secretary of Transportation that there had also been omitted from his Departments proposed basic system transcontinental service via the long-used southern route through Louisiana, Texas, New Mexico and Arizona to California. The Commission stated that it X7as difficult, to understand why the basic system would propose three transcontinental routes from the North through Chicago and none from the South through New Orleans. The Commission in its letter strongly urged the modixication of the basic national rail system in these respects and in an effort to further the acceptance of those modifications sent its Director of Transportation to Washington to confer for two days with ofricials of other States and of the Department of Transportation seeking the retention of these and other services important to Georgia and the South.
RAIL FREIGHT
By petition dated May 3, the railroads operating xjithin Georgia sought authority to increase their freight rates and charges on Georgia intrastate traffic to the same extent as their interstate raxes and charges had been increased under authority of order of the Interstate Commerce Commission in Ex Parte No. 262. The petition included a motion of the railroads for authority, as emergency relief, to make the re quested increases effective as soon as possible, subject to refund ix the increases finally authorized X7ere lower than those initially per mitted to become effective. At the hearing, the railroads submitted extensive exhibits showing the results of their operations within che State of Georgia, both individually and as a group, for the years between 1955-1969 ? these statistics showing revenues, expenses and rates of re turn in detail. The conclusions of such exhibits were that these rail roads* rate of return as a group x-?as at a low 4.33% and that the increased revenue sought would result in increase of that rate of return to 4.864. The application was opposed by a number of Georgia shippers and receivers of freight, most opposing the proposal as it pertained to the specific
- 21

commodities shipped by them and, in addition, one group of protestants opposing the application of the increase on their shipments of pulpwood and paper products and also on traffic generally. The opposition in cluded protests of increases in rates on movements of stone from Rome, Tate, Adairsville and Cass to the Atlanta area, cement from Rockmart to the Atlanta area, liquefied petroleum gas from Milner to points through out the State, sand, gravel and crushed stone from a number of producing points to Atlanta and points in the nearby area, stone from Postell to central and south Georgia points and pulpwood statewide. In addition to specific protest against the increase in rates on pulpxtfood, the paper mill representatives submitted cost analyses designed to refute the cost statements of the railroads and to show that the Georgia railroads had not proven need for the Georgia intrastate increases here sought. The Commission found that the Georgia railroads were in need of additional revenues if they were to be expected to continue to render adequate transportation services to Georgia shippers - and hopefully to improve those services and to increase their equipment fleets - and, accordingly, approved the application in general but with such exceptions as were deemed necessary to prevent undue harmful effect on Georgia industries. Those exceptions consisted of denial of any increase in line-haul rates on carload shipments of sand from Junction City and Rollo Sand Pit No. 1 to the Atlanta group; on carload shipments of stone from Rome, Tate, Adairsville and Cass to Magnolia; on carload shipments of liquefied petroleum gas from Milner and on carload shipments of agricultural lime stone. The Commission made the further provision that in any instance where the increase on interstate rates xms modified downward, or gener ally waived, similar adjustment would be made on Georgia intrastate traffic.
Shortly following the issuance of the Commission's order in the above proceeding, petition and motion was filed by the pulpwood and paper mill industries seeking reconsideration of that order and post ponement of the effective date of the increases authorized therein. The Commission assigned the petition for reconsideration for oral argument at a date to be later fixed but, in consideration of the circumstances and in view of the fact that the petitioner, although representing shippers in those States, had not sought reconsideration of similar action by the Kentucky and Tennessee Commissions or postponement of the effective dates of the increases granted by those Commissions, denied the motion to postpone the effective date in Georgia of the increases authorized in this proceeding. However, to protect the interest of the protestants, the Commission ordered that the railroads make the increases authorized in this docket subject to the same refund provision as was applicable on interstate traffic, with that refund provision to be contingent upon the final action of the Commission following consideration of the petition for reconsideration after the oral argument and such other fur ther procedural handling as was deemed necessary. At the close of the year, due to congestion in the Commission's calendar, such oral argument had not yet been held.
By order in Dockets 35190 and 35191 dated December 9, 1969, the Interstate Commerce Commission instituted an investigation into ''...the matters and things presented..." in petition filed on November 14, 1969 by the railroads operating in Georgia averring "...that the Georgia Public Service Commission has refused to authorize or to permit increases in rates and charges on sand, gravel, crushed stone, and related commodities moving in intrastate commerce corresponding to those
22

*'-r- s

io yuo'y 'o . .i, H .. y.: ,brrs ;sr y

afilli

'

?qi

' .'

ii io : >J ;.>li*

\. ,f

:*$&QoqQ iiT ,^;.i3,:eri g - .;b*^ rre oelf brr: By.Oi/bq 'rsqaq ;*

sii&voa o ' al s

jxflBf-}# ui- instate boxe bZtt&S/sA 3f?:v o. 8<,'.: Jv,iv dilavar.rar.

y. -Oiy y ,;!o:' L' L::. '.epi.f ,atE

V". TOtiiJi- S

c 'y iii;22Js: !& ..bVy-y

.'.' :

;; ;.,

'-"y

'ZL''< .o 1?. iy'yyr-.L: * o *'

.

[fjq b fm :r..vnloq j^yuo.O f i? o e

'--ic-v.r iasdory.q' oiUosqa off

Olivia b aoe^Ijsi seca ji*5iinicft'8 eavisa:

tls ^B'i ' m w &u^ ii

rri 9 3 ; g b fiO i ' s i y

i ' -- yy b c c u o i jo j gg ta tte d

./.' ry*. .v.::. tSWrST y ; K

oS '' y-:y- S 02 dXSK v : 3ti saiMTVfti

cvoaqfli o \;IX,srfc9qoif b m a*x$qqiia jc^i'O.o; eaaivxfMr aoiiaixqcrawti

- 'v

x o o o 3 <cvg ~ i o o l i

\ /' ,

C 'i ^ js a a a ir i y:: s o a i v x s a o y o r i i

S / .

;i,Ltd ;. *.yy y : m l ... tq jq e OiS 6 S V O T E 'S

o*i* ;-asi rot a $-

xb'": Wb:..

q

b

X w d - s f l iJ n i a a o x a . c l ^i i o i a i n o r i o ! -y. ., y. ve s B r o iS q s o x s s O ii

O .:' 'i:yDllfll ffiOTX >/f. 'y '`y:

h ;o ssnamq:ra fosol 30 n

baiiaupll i; aMSxjijf be 'a a prifcl- a .i$ ^ jS aIlivaa.'/

ti .

O O

' : . '.' '

; Ir - .

.vy.i y y y lo j Q S 'C

:.ti ...a.'::, O tro ;

...y-./ y"'y" to)BV^hTSioO .' ,:'r;!i

""'X3f`03 "o tb^-ixmob bai'ihom w o .so-sa

,cc yy^n^y

jyy .

' - 'y -' ' :

" ' 1y :

2 y b X ) j i o j ;.

'

i ii 5

v :

*,0' EXS

r " -Cby-ro e"riOisaiciaD yy,':' te s>xbareal Bria

;.;.'y'yyy

oo'toqi.i.r; . . yo LvXzL a,^r noiSi &SXB mX$MSq. i&t9& 9'xq evo&

"ioy bna

'Sb..lo .r.;olt,nib3noo9t!: ;:y;.:j..:!'.'vy? a>7.trix,r:' iliria 'roqov.

*0

baaJhlor^''.

ofli; io y. evi3'j9i:y -

-.o

3'-:v'.jy;;;:'y:', Ibio yy;;. noi:ro'sohianoo&% "soi asoi,ii1aq :i

b n i a s Drili a ia to x i o r!3

a o iia x s b anoo

:i/d J5>:



o i 92b-

jgr.ri'" ; inriiidalld aii3`3t`

".

.y' .' y:::: '. y ' '

jbieoox ifigwaa 2t

ssaasuxnoL Luz

b 14oiaal' -D 0 i\IF:yb# '3`90Q&BiotiX ari:'.io

io

y:y ..'i ftt croq

.

1 r31Votier ?y -y s*#

eflt-r

fi ^gh fJOib0fXb':1 j'

; y., y

3-'f ' X<i

#,-# rgf;

.y iy

:'

. r'.ialr

Xf>I' y vS--..

rr.

' ;' 3j yoi

7.n>' >: c:l a

-y,:- t `e .yy 1!o, ,.b&:jxw^o"iq pyy'y.r: ; .bns rrsSy'Bu 9ii:, '

r -- -yyi : ni gni;

a-baoxliax yi y,c y"y.i;

'"yy.-'y-y oy :yyy yoi noBafi3oO eovx s>dix^ BigXO

'yy -y.::' , Xsyyyyy J'o o ra ...,,, yy.v-yyy-,..: oyyy ato o n /..i aosBoxSfliJ:



yyQtee '

authorized by this Commission in Ex Parte No. 259, Increased Freight: Rates. 1968, 332 I.C.C. 590 and 714, and that, even were the full in creases sought to have been allowed, the rates resulting therefrom would be below the interstate level..." By further order dated February 3, 1970, the Interstate Commerce Commission consolidated the two dockets into one proceeding and inadvertently broadened the original investigating order to include rates and charges on sugar in addition to the commodities listed in the original order. It appeared that there were two dockets filed by the railroad initiating the investigation, one (apparently that in Docket 35191) attacking the basic level of intrastate rates on sand, gravel, crushed stone and related articles and the other (apparently that in Docket 35190) attacking the failure to authorize increase in intra state rates on those commodities and other commodities to the extent^ allowed on interstate traffic by the Interstate Commerce Commission in Ex Parte 259. Feeling that the two dockets were improperly joined for consideration and further that the second order broadened the scope of the investigation as announced in the original order, the Commission on February 20 filed petition for clarification of the order, motion to separate the proceedings and motion to change the procedure from the modified type prescribed to that of a full hearing. The Interstate Commerce Commission did issue a further order clarifying its intent but denied the relief sought so far as concerned separation of the proceed ings and the change in procedure. Unfortunately, to further confuse the issue, the docket numbers on the third order were reversed with respect to the issues contained thereunder. The confusion caused by these in correct orders and the consolidation of the two dockets persisted through out the proceeding.
The investigation was finally assigned for hearing on June 22, following the submission on earlier dates of statements by the parties. The hearing lasted two days at xdiich time there was extensive crossexamination of the railroad witnesses by representative of interested shippers and the Commission and cross-examination by the railroads of shippers who had filed statements in the proceeding. The transcript of the record was about as confusing as the procedural handling by the Interstate Commerce Commission and to clarify the participation of this Commission, six pages of suggested corrections to the transcript were filed on August 10. Briefs were filed by the Commission and other parties, the due date for such briefs being extended to August 27 due to delay in receipt of the transcript of the hearing. No further order of the Interstate Commerce Commission concerning these dockets was issued in 1970.
The Commission's intense interest in this investigation pro ceeding stems from the fact that there was there attacked the basic scale of rates on sand, gravel, crushed stone and related articles which has been in effect in Georgia for many years and which in its original form had withstood previous 13th Section attacks and had been upheld by the courts. This scale of rates is very important to Georgia producers and consumers of these products and the merged scale under attack was specif ically designed to permit Georgia producers to meet out-of-state competi tion. The other matters involved in the investigation - the differing amounts of increase authorized on intrastate traffic in Ex Parte 259 are also of importance since the exceptions made by this Commission to the interstate level of increases in X-259 were recognition of local conditions not considered by the Interstate Commerce Commission in its national handling of that increase.
- 23 -

RAIL AGENCY SERVICE
The railroads continue to seek authority to discontinue their agency services at the smaller towns - as in the past, due to declining revenue from such stations and 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 7 such applications 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 service of an agent at such points, the Commission authorized the discontinuance of agency service at Craxdrord, Emory University, Hogansville, Locust Grove and Ranger. Finding that there was need for continuance of agency ser vice at Hahira and Trenton, the Commission denied the railroads* appli cation to discontinue the agencies at those points.
During the year, there were three more consolidations of agency services sought whereby one agent was proposed to provide agency service to two stations. The Wrightsville and Tennille Railroad sought to estab lish such dual agency service at its stations of Dublin and Wrightsville, and the Georgia Railroad sought authority to establish the dual agency service at the towns of Grovetown and Augusta and at its stations of Social Circle and Monroe. After finding that the proposed service would be adequate to the needs of the public, the Commission approved these three dual agency plans.
There was reviewed in detail in the reports of the last two years the new type of agency service established in those years by the Central of Georgia Railway - that being the assignment of a "mobile agent" who would replace the resident agents at several stations and, by traveling via highway in a carrier-owned station wagon between a base station and the stations to be served, would perform necessary agency functions at those points. During this year, the Central of Georgia Railway sought authority to establish two more mobile agency operations those involving:
1. Barnesville, Thomaston and Jonesboro;
2. Forsyth, Monticello, Smarr, Bolingbroke, Shady Dale, Minetta, Armco and Machen.
In addition, another railroad, the Seaboard Coast Line Railroad, adopted the mobile agency concept and sought authority to establish a mobile agency operation serving Ailey, Glenwood, Alamo, Soperton, Ochwallcee and Tarrytown. Due to complications arising concerning its new operation, the Seaboard Coast Line Railroad withdrew its application for further study. As was its action in previous mobile agency cases, the Commission, following finding in the additional two instances proposed by the Central of Georgia Railway that its proposed arrangements appeared to be feasible, authorized the institution of these mobile agency operations on a sixmonths* test basis, subject to the same investigation procedures pre scribed by the Commission in prior mobile agency proceedings. At the close of the year, all of the mobile agencies authorized were operating
- 24

effectively and the Commission had not received a single complaint against the services being rendered.
CONDEMNATION PROCEEDINGS AND ABANDONMENT OF OPERATIONS
In July of last year the Southern Railway and the Atlanta & Charlotte Air Line Railway made application for authority to institute condemnation proceedings to acquire certain property in DeKalb and Gwinnett Counties, said property to be used by those railroads in the construction of new yard facilities. The new yard facilities were needed to furnish services both to existing industry and to those known to be moving into the area, as well as for anticipated expansions. At the hearing the applicants contended that the present yard facilities in the Doraville area were already overcrowded and that one new plant
which x*7as moving into the area would alone need 40 cars handled per day.
There was extensive opposition to the proposed construction of new yard facilities in this area - that opposition concerning the closing of a private crossing, proximity of the proposed yard to large gasoline storage tanks and interference with vehicular traffic over an existing public crossing. After lengthy hearings and investigation, the Commis sion found that the additional yard services were needed, that the pro posed location was practical for serving the industries contemplated, that the fire hazard had been investigated by proper officials of the county and found to meet county and state requirements, that existing tracks were closer to gasoline storage tanks than the proposed construc tion and that the opposition stemmed primarily from dispute as to the measure of damages (both direct and consequential) and fear of possible interference with vehicular traffic movements over railroad crossings. The Commission concluded that the applicants had satisfactorily shown that their application complied with the requirements of the Georgia law and that the line sought was necessary and essential for the purpose of construction of the proposed yard and that such construction x?as required for the safe and essential conduct of the applicant's business as a public carrier and for public purposes and granted the authority sought.
In July the Louisville & Nashville Railroad sought authority to institute condemnation proceedings to acquire certain property located in Bartow County, said property to be used for the purpose of construct ing and operating a switching track connecting the Seaboard Coast Line Railroad main track and the Western & Atlantic Railroad (state-owned railroad leased by the Louisville &. Nashville Railroad) main track near Cartersville in Bartow County. It was shown at the hearing that the new track connecting the two railroads was needed to permit movement of trainloads of coal to a new Georgia Power Company steam generating plant on the Etowah River on the Seaboard Coast Line Railroad. The coal moving to the new plant was to come from eastern and western Kentucky mines and move both through Chattanooga, Tennessee down the Western & Atlantic Railroad and through Knoxville, Tennessee down the Louisville & Nashville Railroad and it was necessary to make more adequate connection at Cartersville with the Seaboard Coast Line Railroad to handle this traffic from both lines. Upon showing at the hearing that the construction was neces sary for public purposes as is required by law and that the route chosen was the most feasible one, the Commission granted the authority sought.
- 25

By application filed with the Interstate Commerce Commission in January, the Georgia Northern Railway sought authority to abandon its operation of that part of its line of railroad beginning at Pavo in Thomas County and extending thirteen miles to Boston in Brookes County. This Commission received complaint from shippers located on the line proposed to be abandoned, and in consideration of the interest expressed by Georgia citizens, sent a representative to the hearing on the appli cation held in June in Thomasville to assist in presenting to that Com mission the objections of the Georgia shippers to the discontinuance of this line. In consideration of the objections expressed, that Commission found that while there was no justification presented for retention of operations between Pavo and Barwick, there was need for continued rail service between Barwick and Boston and it denied authority to abandon that portion of the line.

WESTERN & ATLANTIC RAILROAD

The old lease of the XJestern & Atlantic Railroad expired on December 27, 1969. During the fifty-year period of that lease, the
lessee spent over $9 ,0 0 0 ,0 0 0 for additions and betterments - over
$3,000,000 more than provided by the provisions of the lease. The rail road was in excellent condition at the time of expiration of the old lease and since the new lease calls for greater minimum expenditures for this purpose, there should be no problem in the railroad remaining in first class condition.

The annual report of the lessee of the Western 5c Atlantic Railroad for 1970 shows for the net expenditures charged to the account ing classifications "Additions and Betterments" by classes of railroad properties the following amounts :

Heavier Rail and Improved or Additional

Other Track Material . .......................$640,743.73

Grading and Drainage ................ . . . . .

9,246.34

Bridges, Trestles and Culverts ................ 140,045.98

Yard Tracks and Sidings ..... ................ . 81,615.62

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

5,490.91

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

6,658.10

Signals and Interlockers .............. . . . . 240,283.12

Public Improvements - Construction ........ . . 10,899.94

The amounts shown include not only the entire year of 1970 but also the last three days of 1969 - the new lease placing the accounting functions on a calendar year basis and the additional three days being added for such purpose.

- 26

UTILITIES DIVISION
INTRODUCTION
The Georgia Public Service Commission issued a total of 62 Orders after formal proceedings during the year 1970. These Orders involved Certificates of Public Convenience and Necessity for Gas and Telephone companies, rate adjustments, the issuance of securities relating to capital structure and matters involving the general operation of the utilities subject to the jurisdiction of the Commission. Several Orders issued in 1970 were of vital interest to the consumers of utility services. Copies of these are enclosed herein for such detailed infor mation as may be desired or found appropriate for interested parties.
During the past two or three years, the citizens of Georgia using utilitiesf services have suddenly become cost conscious and have displayed much greater interest in the formal proceedings in the Commission than heretofore. This is indeed gratifying to the Commission inasmuch as its interested citizens are learning more about the operation of the Commission and how rates are changed, so that the effected utilities will be able to earn a fair rate of return based on the value of the utilities f property devoted to public use. They also learn more about why utilities experience increases in labor, materials, taxes, and fuel, as well as the most prdominent cost, that being the cost of capital funds. During the proceedings, the interested parties are given the opportunity of expressing their views for or against the utilities application as well as to inform the Commission about partic ular service deflencies which are divulged at the hearing. These defiencies, of course, are promptly corrected by the utilities to the satisfaction of each complainant. There has been a considerable increase in the filing of complaints because of the increase of the number of utility consumers and the expansion of plant facilities throughout the State and more particularly in the suburban areas adjacent to the metropolitan areas.
From time to time employees of the Commission or Staff have addressed various civic organizations throughout the State for the purpose of aquainting the utility consumers with the services performed by the Commission. They are informed as to the responsibilities of the Commission in requiring utilities to provide adequate and satisfactory utility services that are compatible with reasonable and just needs of the public at rates which are fair, just and reasonable. First, they are advised that the Commission has the capability through its competent engineering and accounting staff to determine the accuracy of any electric or gas meter, the proper gas pressure of the gas service and the proper voltage level of the electric utility, as well as to determine whether or not the same is being billed on the most economical rate schedule.
-27-

dlv S

B

BHF'- I IlsbyO

' r '*''n b i . ; a ~f; b i/ a *o ' rr. - b a '.-o r ^ r s-o$ -.. '--i -.. a e iq o O - < ; j i-vi

1 o m H m H

9 9

i si ;-3-v

aq jba^aatsi'jaE JH

t .oet &ijt f.!:.; arii y &a3rc<

, '

ii/o cte an

SJ* $&&& ;.S %G^BOqXEjq

'. MSS; S ite ' .'6 j8 jbiV<

a itl |t/

^dj-T a fe

& ba 'jpfir'/:-

.ri;t b o a e o .tv ia 's aa^ s b j b o rnoeeaTr.-g , 3^ - o q o o .j

b ia is e s -

reo o cario a I *

,,ifr:r * #'IMI XXaw a#

eteat la lf a o n o o a eoa* -`v m> l i io $ 3 is < a i ssase e tf C o a rto

Many field investigations are made to determine the reason ableness of the extension of facilities that would provide the appli cant with the utility service desired. Contrary to the beliefs of many citizens , the Commission does not guarantee the utility a set rate of return of profit. First, there is the no exercising of power over the management of utilities, such as its organization of salaries or wages, the size of gas mains or electric power lines, or transformers or of rights of way. As to the utilities expanding the facilities and expansion of the number of lines along rights of way, many problems will naturally occur. The affected citizens often appeal to the Commission for assis tance and every assistance is offered that is possible within the juris diction of the Commission.

With the close of the calendar year of 1970, there were under the jurisdiction of the Commission the following number of public utilities :

Electric ............

2

Natural Gas . . . . * ............ ^

Telephone (IncludingU Co-ops) . . ^3

Radio Common C a r r i e r s ........... 20

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 administrative 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 regulations 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 professional staff conducts the cross-examination of the witnesses, and after the Commission reaches a decision, appropriate orders are prepared and issued. Oftentimes, field investigations have to be 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 utilities. The staff personnel involved in this work have specific training 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,

- 28.

fe J

<$& la!:

>ox

tbM
:, 6 sene Ida tt$t f $80
\mmz lxo

&

. TO' " 3*"> n r te.W

tactqx o b a d j U il i a ' ,.>vj t ,n lk m q x e a e i i l i i

<Sot& yB *^aw 'io r.'fi'..-', t* . s* siX l' &uff iii

*iQbfM M Bten#aBpiN ' X:X #'

. isa ..

VX-,i\vtv: VsV. irslt

V ") 4 i

JLT0 ^ * T f 9 0 &

ISO i 3 , h r b ' r i Q n o x 3 3 5 o T q b rw

a i

v sc c

9a@ S a i s ia n o

8floiiaXii$'i bfis a'xflri lo fuXvv -y..: ,1

.vu

Of? vWJQ )iXcfe/

. 11.

eaimraD f

>iotrf

n o i'. `

' ''" M k

Xo ^oniDi

i JL noriqi<
ti dBo iftf

a a iio a s t fesa
vi . 2 . U

9

and orders are reviewed carefully in order to evaluate same before submission to the Commission for such action as deemed appropriate.
The rate, auditing and accounting department has the respon sibility 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 each case, thus aiding the Commission in reaching 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 discrepancies are found, these are called to the
attention of the appropriate utilities1 officials for correction. Rate
of return studies are made annually and submitted to the Commission for such action as may be deemed appropriate.
The Utilities Division staff is authorized fifteen employees such as engineers, accountants, auditors, stenographers and clerks, but during the year we were unable to fill three of the positions because of unwillingness of the qualified employees to accept the position at the salary level. In spite of this shortage, the Commission staff was able to perform in a creditable manner for the State of Georgia. The need for additional personnel is critical and the shortage has been reflected in the delay of preparation of formal proceedings, investigations of complaints as well as the prompt handling of the large volume of correspondence. As a result of a study of staff engineering positions within various agencies as reported in previous years, upgrades in salary levels of the engineering positions as well as accountant positions within the staff of the Commission were recommended. The current members of the Utilities Division staff are given on the job training so as to give them every possible benefit of a promotion and increase in earnings so as to improve themselves. When employees resign to accept more lucrative positions in industry or Federal Government the replacements are inexperienced and much time is involved in retraining to aquaint the employee with the duties for which he has been employed. The information and services rendered are reported to the public and any errors which occur due to new employees not properly trained could be extremely embarrassing to the Commission. The work load is constantly increasing due to the tremenduous growth of the population in the State and expansion of facilities in nearly every county of the State. It is hoped that we will be able to convince the Budget Bureau and Members of the General Assembly to provide the necessary funds to permit the Commission their request for increase, so as to aid the Commission in a more effective manner, thus rendering a much more satisfactory and important service to the general public
29~

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 62 decisions and orders during the year in proceedings involving utilities. A classi fication of the proceedings in which formal opinions and orders were issued follows:

Applications for Certificates or Cancellation Thereof . . . . . . . 0

Applications for Authority to Issue Securities or Borrow Money . .31

Rate Adjustment Proceedings

.................... 18

Applications for Authority to Purchase and Transfer Utility Properties . . . . . . . . . .......... . ............ 0

Applications for Amendments of Certificates ..................... T

Applications for Amendments of Rules and R e g u l a t i o n s .......... . 2

Show Cause P r o c e e d i n g s ........................ ............... . 2

General Orders ................ . . . . . . .................... 2

APPLICATIONS FOR AUTHORITY TO ISSUE SECURITIES OR BORROW MONEY

Docket No. 2169-U June 18, 1970
Docket No. 2195-U December 23, 1970
Docket No. 211+1-U November 10, 1970

Application of United Cities Gas Company for authority to issue and sell $3,300,000 principal amount of its First Mortgage Bonds, Series E , 10-3/8 per cent, due September 1, 1995, for
authority to issue and sell 1 0 ,0 0 0 shares of its
$100 par value per share Cumulative Preferred Stock, 1971 Series also, for authority to issue and sell 75,000 shares of its Common Stock to the public of the par value of $3.33-1/3 per share, and for other relief.
Application of Georgia Power Company for authority to issue and sell $220,000,000 First Mortgage Bonds, 300,000 shares of Preferred Stock and 750,000 shares of Common Stock, and to issue $7,80U,000 principal amount of First Mortgage Bonds, of a series to be designated, for sinking fund purposes.
Application of Savannah Electric and Power Company for authority to issue and sell $3,000,000 in Common Stock and $5,000,000 in Preferred Stock Series C. SECOND SUPPLEMENTAL ORDER.

J E. .

wn K a

t o o a g s 8-1 o$ Ykti*: ,>rf u' i 9 a o iA fto U t

, . ..

.. `V $0OTf

&&&

:?.xr(,onf). ot yxrio&ih roi biot&Uqq

Il- 'P iS . g K tsafoo

O Aff f i-rV -ft' ;

jf
0 8 3bH0 '. e?i .

*o 1 -^Doy&ijraoD w

19gd h td M

(K30#0 >0P 0 $ ^ .X&# &8&" M t

i, n ,t fat jit^cd-P

XcpsoO * x $ tio $ htt'W fa&oto x x r , f l i

Docket No. 2136-U
October 19, 1 9 T0
Docket No. 211+1-U February 5, 1970 Docket No. 2136-U January 30, 1970
Docket No. 2136-U January 20, 1970
Non-Docket December 30, 1970
Docket No. 219^-U December 30, 1970 Docket No. 2185-U December 23, 1970
Non-Docket December 7, 1970
Non-Docket October 29, 1970

Application of Georgia Power Company for authority to issue and sell $135*000,000 First Mortgage Bonds, 250,000 shares of Preferred Stock and 1+55,000 shares of Common Stock, and to issue $6,390,000 principal amount of First Mortgage Bonds, !+-7/8$ Series due 1995, for sinking fund purposes. SECOND AMENDATORY ORDER.
Application of Savannah Electric and Power Company for authority to issue and sell $3,000,000 in Common Stock and $5,000,000 in Preferred Stock, Series C.
Application of Georgia Power Company for authority to issue and sell $135,000,000 First Mortgage Bonds, 250,000 shares of Preferred Stock and 1+55,000 shares of Common Stock, and to issue $6,390,000 principal amount of First Mortgage Bonds, U-7/8$ Series due 1995 , for sinking fund purposes. FIRST AMENDATORY ORDER.
Application of Georgia Power Company for authority to issue and sell $135,000,000 First Mortgage Bonds, 250,000 shares of Preferred Stock and 1+55,000 shares
of Common Stock and to issue $6 ,3 9 0 ,0 0 0 principal
amount of First Mortgage Bonds, l+-7/8$ Series due
1 9 9 5 , for sinking fund purposes.
Application of Byron Telephone Company, Inc. for
authority: (l) to borrow an additional $7 5 7 ,0 0 0 in
principal funds from the Rural Electrification Administration (REA), (2) to issue and sell 3,530 shares of its $100 par value Common Stock to its "Parent", Mid-Continent Telephone Corporation.
Application of Georgia State Telephone Company for
authority to issue a $1,500,000 1 0 -1 /!+$ Promissory
Note due December 1, 1990.
Application of Blue Ridge Telephone Company for
authority to borrow an additional $6 9 5 ,0 0 0 from the
Rural Electrification Administration (REA), Washington, D . C ..
Application of Wilkinson County Telephone Company, Inc., Irwinton, Georgia, for authority to borrow an additional $250,000 principal amount from the Rural Electrification Administration (REA), Washington, D. C. .
Application of Georgia State Telephone Company for authority to issue to its sole stockholder and parent Continental Telephone Corporation, 2,500 shares of
its $ 1 0 0 par value Common Stock.

-31-

Non-Docket September 25,1970

Application of Brantley Telephone Co., Inc., Nahunta, Georgia, for authority to borrow an additional $600,000 from the Rural Electrification Administration (REA), Washington, D. C..

Docket No. 2178-U September 25, 1970

Application of Hawkins vi lie Telephone Company of
Hawkinsville, Georgia, for authority to borrow the
principal amount of $1 0 0 ,0 0 0 from various banks.

Non-Docket July 2h, 1970

Application of General Telephone Company of the Southeast for authority to issue and sell at the par
value of $ 2 5 per share four hundred forty thousand
(1*1*0,000) shares of its Common Stock as well as, for authority to enter into temporary loans with its parent corporation for a period of twelve months, and to apply the proceeds thereof to repay short
term loans and for other purposes.

Non-Docket July 2k, 1970

Application of the Statesboro Telephone Co. for
authority to issue and sell $7 5 0 ,0 0 0 principal
amount of its First Mortgage Bonds, bearing interest
at the rate of 1 0 -1 /2 $ per annum .

Non-Docket July 17, 1970

Application of Coastal Utilities, Inc., Hinesvilie, Georgia, for authority to borrow an additional $1,500,000 principal amount from the Rural Electri fication Administration (REA), Washington, D. C. .

Docket No. 2165-U
June 8 , 1970

Application of Westco Telephone Company for authority to issue $1,000,000 principal amount of Debentures, 5,000 shares of $100 par value per share Preferred Stock and 100,000 shares of its $5 par value per share Common Stock.

Docket No. 2167-U
June 8 , 1970

Application of Citizens Telephone Co., Inc. for authority to borrow $533,000 from the Rural Electri fication Administration,(REA), Washington, D.C..

Docket No. 215^-U
June 8 , 1970

Application of Ringgold Telephone Co. for authority to borrow $821,000 from the Rural Electrification Administration, Washington, D,,C..

Docket No. 2156-U May 6 , 1970

Application of Glenwood Telephone Company for
authority to borrow a total of $5 0 ,0 0 0 principal
amount from Stromberg-Carlson Corporation, with such
final borrowing to bear interest at the rate of nine
and one-quarter per cent (9 -lA$) per annum.

Docket No. 2160-U
May 6 , 1970

Application of Standard Telephone Company for authority to revise the capital structure of that Company by exercising a stock issuance to its present stockholders.

-32

Docket No. 2159-U
May 6 , 19TO
Docket No. 21^2-U
April 8 , 1970
Non-Docket April 2, 1970
Docket No. 2117-U
"March 26 , 1970
Docket No. 2153-U March 26, 1970
Docket No. 21U7-U March 11, 1970
Non-Docket Februaiy 19, 1970
Docket No. 2138-U January 30, 1970 Docket No. 2132-U
January 2 0 , 1970

Application of General Telephone Company of Georgia for authority to issue and sell to its parent and sole stockholder, General Telephone & Electronics Corporation, 80,000 shares of its $25 par value Common Stock for a cash consideration of $2,000,000.
Application of Chickamauga Telephone Corporation for
authority to borrow $1 ,2 2 ^ ,0 0 0 principal amount from
the Rural Electrification Administration.
Application of General Telephone Company of Georgia for consent to enter into temporary loans with banks and with the Parent Corporation for a period of twelve months, for renewal of certain notes out standing, and for other purposes.
Application of General Telephone Company of the Southeast for authority to issue and sell at the par value of $25 per share, One Hundred Twenty Thousand (120,000) shares of its Common Stock; and to sell Fourteen Million Dollars ($1^,000,000) of First Mortgage Bonds at a negotiated public offering and to apply the proceeds thereof to repay short-term loans.
Application of Georgia State Telephone Company for
authority to issue 5 000 shares of its $ 1 0 0 par
value Common Stock to its "Parent" and sole Stock holder, Continental Telephone Corporation.
Application of Standard Telephone Company for
authority to borrow $1 ,3 0 0 ,0 0 0 principal amount from
the Rural Electrification Administration, Washington, D.C..
Application of Mutual Telephone Company, Inc., for consent to enter into temporary loans with the Washovia Bank and Trust Company of North Carolina, for a period of twelve months, for renewal of notes outstanding, and for other purposes.
Application of South Georgia Telephone Company for authority to borrow $812,000 from the Rural Elec trification Administration (REA), Washington, D.C..
Application of Pineland Telephone Corporation, Inc., for authority to borrow from the Rural Electrification Administration the principal amount of $575 000, at the rate of 2% per annum.

-33

RATE ADJUSTMENT PROCEEDINGS

Docket No. 21^5-U February 19, 19TO

Application of Atlanta Gas Light Company for authority to adjust all of its rate schedules by the use of a Purchased Gas Adjustment Rider which increases or decreases the cost to the Company for purchased gas from its suppliers resulting from regulation of the rates by the Federal Power Commission as well as any changes in franchise payments made by the Company.

Docket No. 2lkk-V February 19 19 TO

Application of Gas Light Company of Columbus for authority to adjust all rate schedules to offset the increased cost of gas from Southern Natural Gas Co.

Docket No. 2152-U
May 6 , 19T0

Application of the Western Union Telegraph Company for authority to make effective in the State of Ga. selective intrastate rate adjustments.

Docket No. 2186-U December 23 19T0

Application of Blue Ridge Telephone Company for authority to adjust the local exchange service rates of that Company.

Docket No. 2130-U December 11, 19T0

Application of Southern Bell Telephone & Telegraph Company for authority to adjust its rate schedules and charges for intrastate service furnished in Ga.

Docket No. 21T8-U Application of Hawkinsville Telephone Company for September 25 19T0 authority to adjust its local exchange rates.

Docket No. 210T-U June 18, 19TO

Application of General Telephone Co. of Ga. for authority to increase rates and charges for exchange telephone service at the exchanges of the Company all located within the State of Georgia.

Docket No. 2105-U June 18, 19TO

Application of General Telephone Co. of the Southeast for authority to increase rates and charges for exchange telephone service at the exchanges of the Company located within the State of Georgia.

Docket No. 2106-U
June 1 8 , 19T0

Application of Mutual Telephone Co., Inc., for authority to increase rates and charges for exchange telephone service at the exchanges of the Company all located with in the State of Georgia.

Docket No. 2166-U
June 8 , 19TO

Application of Citizens Telephone Co., Inc. for authority to make certain adjustments in its local service rates for service rendered from the Leslie, Lake Ilackshear, Plains and Vienna Exchanges.

Docket No. 2155-U
June 8 , 19T0

Application of Ringgold Telephone Co. for authority to make an adjustment in its rates for local exchange telephone service.

-3fc-

Io Bario a ac

t|

l V

.5se a to su cf t o i

t o noit'sJjL: - ucrtflt

:" : k : - o r it v;d . .

nc# io?'. ' < m \ * m

i $ * X&

| IS

S U B

M A .oi tfai

;;r aqisO

iiTSittdv nvt

.A t# O&dB

^il^lpl^dhos^s 0 & '&frtQtliltB *$Q*

0Qtt9iL$&ukBa ^j^MpAit^gLa^n,^|fcfcd'fldtg

"WTO oT

g.*vi c `$ifccN* to trr^cssoB 1;c n id*.

o t 1 - 1 n<&oa

toi: ^ctsamo0 a rto i it o oT s i I Iy a n iMvaH 1 o nevi, b 11 q*;>,

fc '<$$ tadfesKfqs U*i

;?Vjf

, j.qtosC' lo a ^jrj

,.XbooI

*0 iXOl

MSfflft Bat

^ tiBf&xS B&at

tx:, lo ao'M' ''` v. fiso

'efrroi'iti/ toi roO anoijkrsXaiT Biotti?! Io aoid'aolXqg

/'tJlBJhPtfO ^r.' '.C^#

IMHHfl

Docket No. 2133-U
January 2 0 , 19 7 0
Docket No. 2157-U
May 6 , 1970 .
Docket No. 21^3-U
April 8 , 1970

Application of PinelancL Telephone Co-op., Inc. for authority to make adjustments in local service rates for all its exchanges.
Application of Glenwood Telephone Company for authority to adjust its rates for local exchange telephone service.
Application of Chcikamauga Telephone Corporation for authority to adjust the local exchange rates for telephone service from its Chickamauga and High Point exchanges.

APPLICATIONS FOR AUTHORITY TO PURCHASE AND TRANSFER UTILITY PROPERTY

Docket No. 2192-U December 23, 1970
Docket No. 2192-U December 28, 1970
Docket N o . 2lU0~U March U, 1970 Docket No. 2139-U March k 9 1970

Application of General Telephone Co. of the Southeast, General Telephone Co. of Ga., and Mutual Telephone C o ., Inc. to merge, with General Telephone C o . of the Southeast to he the surviving Corporation followingsuch merger, for the exchange of outstanding indebt edness under a sixteenth Supplemental Indenture of General Telephone Co. of the Southeast. Also, authority to transfer the Certificates of Public Convenience and Necessity of General Telephone Co. of Ga., and Mutual Telephone Co., Inc., to General Telephone Co. of the Southeast following said merger and for other purposes.
Application of General Telephone Co. of the Southeast General Telephone Co. of Ga. and Mutual Telephone Co. Inc. to merge, with General Telephone C o . of the Southeast to be the surviving Corporation following such merger, for the exchange of outstanding indebt edness under a sixteenth Supplemental Indenture of General Telephone Company of the Southeast. Also, authority to transfer the Certificates of Public Convenience and Necessity of General Telephone Co. of Ga. and Mutual Telephone Co., Inc., to General Telephone Co. of the Southeast following said merger, and for other purposes. FIRST AMENDATORY ORDER.
Application of Mid-Continent Telephone Corporation to acquire all of the outstanding Capital Stock of Cairo Telephone Company.
Application of Mid-Continent Telephone Corporation for authority to acquire all of the outstanding Capital Stock of Byron Telephone Company, Inc.

35-

EXS .0 8 d e
jif f S
U-XS m dojfootf "TCi ,. vbM
-OVi. vS&SOl ,f# Xliqd

'"iC^i :. OBTTJIjS

rsXsT Xbuc/M I>$0 t *&D t.o *p jf sjsoifej ^OrfqeXeT XSTdS fcJ'Xv `Ft9!tk
noXwf a 'io q io D ^ r v lv T if a o d i o d o d
: ignifera dadire t o s^nedoxo cid i o !

< M iX M p a 9 td u o 8 rd t o ,o oortq

t o id l S i.

figetS

,a -`i .oO

TQX ',$ lodaioaetC

rid t o *0
Mmild

X m *m 0 m t nivirw&S

oa . : p

f ' ra?u i J:

'11 lis*' MST:i . !tl t--.-
I 5 `O >'/:.I .;.;pPa `II:" O' ;'a p.J.0$ fltoO

Lot ' :'-..1."...;.'' A

s .,oC t o

.. ' od. 1 :>

. *oi ' -Coi

, lioao-rix/q to d ito *ro`) h-u

no idjetoq jfca*

1 snodereia? d'ffnidaoO-X>iM te oX&daJX-ftA
.cniftO

! sctodq^XoT "s

lo jfedsoIkjqA

o-T ,'^'oe^Ov sto fqov.a'f no^r; AeodO- .-l^c.cq;>C

U~{2XS *

APPLICATIONS FOR AMENDMENTS OF CERTIFICATES

Docket No. 2l6l-U July 1, 1970
Docket No. 2151-U March 26, 1970
Docket No. 2101-U July 17, 1970
Docket No. 2 1 6 2 -U June 8 , 1970
Docket No. 21U9-U March 11, 1970
Docket No. 21H6-U March 11, 1970

Application of Atlanta Gas Light Company for Amendment No. 1 to Distribution System Certificate of Public Convenience and Necessity No. 29 to Authorize Gas Distribution Service to Additional Territory in Bibb County, Georgia.
Application of Atlanta Gas Light Company for Amendment of Certificate of Public Convenience and Necessity No. 31-- Douglas County.
Application of Wilkes Telephone and Electric Co. for an amendment to its Certificate of Public Convenience and Necessity for new and additional telephone facilities in Lincoln County.
Application of Westco Telephone Company for an Amendment to its Certificate of Public Convenience and Necessity No. 626-Toll Lines for new and additional facilities.
Application of Plant Telephone & Power Co., Inc. for Amendment to Certificate of Public Convenience and Necessity.
Application of Standard Telephone Co., Inc., for Amendment to Certificate of Public Convenience and Necessity No. 622-Toll Lines.

APPLICATIONS FOR CERTIFICATES OR CANCELLATION THEREOF

Non-Docket January 30, 1970

Application of Southern Bell Telephone & Telegraph Co. for a Certificate of Public Convenience and Necessity, Nunc Pro Tunc, for the establishment of a new exchange at Clermont, Georgia.

APPLICATIONS FOR AMENDMENTS OF RULES & REGULATIONS

Docket No. 2053-U December 3, 1970

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 resi dential distribution facilities. THIRD AMENDATORY ORDER.

-36-

& . ;V:iN|p
H h H K -riN < TtO
''t'i 1

Docket No. 2053-U May 28, 1970

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 resi dential distribution facilities. SECOND AMENDATORY ORDER.

SHOW CAUSE PROCEEDINGS

Rule Nisi Docket No. 2183-U September 25, 1970

Georgia Public Service Commission verses Atlanta Gas Light Company (In regard to Lakeview Estates Sub division)

Rule Nisi Docket No. 2182-U September 25, 1970

Georgia Public Service Commission verses Mobile Townes Corporation, Lakeview Estates Subdivision, Conyers , Georgia .

GENERAL ORDERS

Non-Docket Septeniber 29, 1970

Rules and regulation for the safe installation and operation of natural gas transmission and distri bution facilities.

Non-Docket July 8, 1970

Application of Georgia Power Company to remove the limitation imposed on its fuel adjustment rider in Docket No. 1323-U.

-37

LICENSES ISSUED FOR SERVICE OBSERVING EQUIPMENT

COMPANY

LICENSE NO.

Tiffany Personnel of Atlanta, Inc.

65

National Data Corporation

66

Southern Credit Counselors (D-2137-U)

67

Winston Services

68

Halcombe Armature Company

69

National Personnel Service of Atlanta,

Inc.

70

SCE Personnel of Atlanta, Inc.

71

A. Gordon Jungkurth, dba Home Readers

Service of S. Ga.

72

Ponce de Leon Infirmary, Inc.

73

Allstate Insurance Companies

7*+

Atlanta Board of Education

75

Cabana Motor Hotel of Atlanta (D-2170-U) 76

Avland Development Company (D-2172-U)

77

Hangar Cab Company, Inc. (D-2173-U

78

D.L.M. Realty Corporation

79

Avis Rent-a-Car System, Inc.

80

Davison's

81

Horizon Land Corporation (D-2171-U)-

Dismissed because of failure to appear at the Hearing.

American Seal & Stamp Co.

82

All American Personnel Serivce

83

First National Bank of Atlanta

Sk

T & A Construction Co., Inc.

85

Fred Astaire Studio's dba World of

Dance, Inc.

86

The B. F. Goodrich Company

87

Theatres Service Company

88

Riviera Hyatt Corporation

89

Bent Tree Corporation

90

Dalton Carpets, Incorporated

91

Payco of Georgia, Inc. (D-218U-U)

92

Ted Morgan, dba Hope City Trading Co.

93

DATE ISSUED
1/22/70 1/22/70 1/22/70 2/20/70
3 /2 7 / 7 0
3 /2 7 / 7 0 5 /1 / 7 0
5 /1 / 7 0 5 /1 / 7 0 5/7/10 5 /2 9 /7 0 5 /2 9 /7 0 5 /2 9 /7 0 5 /2 9 /7 0 5 /2 9 /7 0 5 /2 9 /7 0 5 /2 9 /7 0
7 /9 /7 0 7 /2 0 /7 0 7 /2 7 / 7 0 9 /U/7 0
9A/70
9 /10 / 7 0 9 /1 5 / 7 0
9/29/70 10/21/70 11/2/70 11/12/70 12/11/70

-38-

iQ \ \ I \ ? o t \a ^\5

injLI3'oqrcoD 4b 0 .:anci.&aft
g a aoiv'teS Isi-aa^Te' Jsqol.eW
.onrl ..j'aoJLI:r To loiiCKjartsft 3D3 yTArA.F*aoK -;f& -s:. :v,,,.KTi-'^ tnbioQ A C V*
.jfjeijStl c.



rtc'i^BToeptoO y *

.M .1.<2

'".r3'. 'V:.--. c **10 .
T 00

i-. I o.<f.dc; I:S- ; ! jfc. ' :,00 '

. <V

v'lT "V-J: =XpH SCfc ,,ilSVOL D9

SOUTHERN BELL TELEPHONE AND TELEGRAPH COMPANY
Station Activity-General
Total telephones in service for Southern Bell in Georgia at the end of 1970 were 2,0lj0,l6U. This represents an increase in total telephones for the year of 128,939 The inward movement was 631,910 and the outward telephone movement was 501,021.
The improvement in service furnished to our customers continues, and as of the end of the year 86.^ percent of our residence customers had individual line service. Georgia continues to lead the other three Southern Bell served states in one party residence development.
The number of families with telephones in Georgia served by Southern Bell continues to increase and now approximately 82,2 percent of all families have telephone service. New services and equipments are being developed on a continueing basis in order to keep abreast of customers needs for new and expanded service. During 1970 we made 103 tariff filing involving new or changed service offerings.
Direct Distance Dialing
Of the total number of main services in Southern Bell in Georgia, 77*8 percent now have access to the Direct Distance Dialing newwork and we are proceeding with plans to expand this service. The percent customer-dialed long distance messages in 1970 was kk.2 percent of the total messages.
Construction
During the year 1970, Southern Bell spent approximately one hundred and fifty nine million dollars in Georgia for new construction to provide facilities needed to service our customers .
Eight-Party Elimination and Service Improvements in Suburban Areas
During the year 1970, Southern Bell spent approximately
$5 ,6 0 6 ,0 0 0 in gross construction in its program of eliminating eight-
party service and for service improvements in suburban area. During the year, 5^,871 new customers were served outside the Base Rate Area and 3,222 eight-party customers were regraded to higher classes of service. At the end of the year, eight-party service represented only 2.3 percent of total customers served.
Extended Area Service
During 1970 one Bell exchange was given extended area service with a Connecting Company exchange. Hamilton was connected with Waverly Hall.
39-

... Sj&iot' a i se a ertn ai
OfId m v tnmm*
r JaiecqoIsv

Xk:''8i0&^ `

ffj ' f)r:

im.rj r-,..-, J-0 jbBS'Siii -.`t o ' 8 ( 3 iv ., s a i l Xsi/f> e Jbevns::- XdTS u t

l&btOtqB IBOiGrJ

l o te a s i da g ss

' i-SUlcf `ty&JtMff'tl&i
hjs W j3.n o t sfossa t ' i

Rate and Revenue Activities During 1970 our first major rate adjustment since 1951 was
concluded with the Commission. Although monthly local service and certain connection charges went up, we also made improvements and simplifications in our tariffs that will aid in the administration and understanding of our rates for both customers and business office employees. We extended the Base Rate Areas of 50 exchanges and put into effect the band mileage plan for the remaining 69, or about one half, of our exchanges that did not previously have this method of mileage measurement. Mileage charges were removed for 53,706 customers and an additional 93,526 customers had mileage charges reduced.
We also simplified local private line and extension line mileage measurement and instituted simplified wired music charges. The push buttom package plan for key telephone features is expected to help customers and employees more easily determine total costs for various combinations of equipment. Standard long cord changes were combined into a single rate. In our long distance rates a Direct Distance Dialing schedule was put into effect and the mileage steps were revised to agree with the Inter-state rate steps. Employees and Wages
Southern Bell employs 18,600 people in Georgia, which is an increase of 600 since January 1, 1970. To obtain this increase over 7,500 new people were hired and 6,900 were lost.
During 1970, Southern Bell paid its employees in Georgia an amount in excess of $132,800,000 in salaries and wages. Taxes
During the past year, Southern Bell in Georgia paid in local and State taxes an amount in excess of $22,275,000. In addition, Georgia telephone customers paid over $H,035 ,000 to the State in sales tax on their telephone service.
-1+0 -

CRAWFORD L . PILC HER FORD B. S P IN K S

( S w r g i s `P u b l i c jlcrtncc ^ o m m i s z i a n
2 4 4 W ASHINGTON STREET, S.W .
At l a n t a , G e o r g i a 3 0 3 3 4

A. O. R A N D ALL, secretary

December 11, 1970 File No. 19315 Docket N o . 2130-U
In Re: Application of Southern Bell Telephone and Telegraph Company for authority to adjust its rate schedules and charges for intrastate service furnished in Georgia.
APPEARANCES
For the Company:
Robert E. Hicks, Attorney, Heyman & Sizemore, Atlanta, Georgia Barry Phillips, Attorney, Kilpatrick, Cody, Rogers, McClatchey
and Regenstein, Atlanta, Georgia Drury B. Thompson, Attorney, Atlanta, Georgia N. Knowles Davis, Consultant Jasper Dorsey, Vice President, Southern Bell Telephone and
Telegraph Company - Georgia Operations A. Max Walker, Vice President and Treasurer John E. McClelland, Investment Banker, Bache & Co. William B. Keeling, Economist Charles H. Garity, Assistant Vice President in Operations Staff Robert N. Dean, Manager, License Contract and Regulatory Matters
American Telephone and Telegraph Company Robert E. Fortenberry, General Revenue Supervisor George J. Kamps, Engineer, American Telephone and Telegraph
Company Frederick J. Cofer, Director of Corporate Analysis, Western
Electric Company

For the Opposition:
Peyton Hawes, Jr., Attorney, Jones, Bird & Howell, Representing Georgia Hotel and Motel Association
Captain Richard A. Peterson, Regulatory Law Division, Department of the Army, Washington, D. C., Representing Department of Defense and All Executive Agencies
Roscoe Dean, Jr., State Senator, Sixth District of Georgia Colonel Albert Butler, Attorney, Jesup, Georgia
A. D. Albright, Representing International Union of Operating Engineers
Robert L. Avery, Jr., Atlanta, Georgia E. T. Cahrer, State Chairman, Georgia Democratic Party Forum,
Austell, Georgia

Doc

Docket No. 2130-U

2.

For the Opposition: (Continued)

George Caudelle Mrs. Rose Chart e, Atlanta, Georgia
J. Willis Conger, Representative, 68th District and City
Attorney, Bairibridge, Georgia Jim Cooper, Business Agent, Millwright Local No. 1263 David G. Crockett, Atlanta Legal Aid Society, Inc. J. F. Cross, President, Georgia State Council of Carpenters H. D. Cross, Assistant Business Agent, Carpenters Local No. 225
J. C. Dempsey, Business Agent, Bricklayers Local No. 8
Mrs. Robert Drawdy, Fayetteville, Georgia Austin Ford, Director of Emmaus House
Y. F. Geeslin, Assistant Business Agent, Iron Workers Local N o . 3 8 7
J. W. Giles, Secretary, Georgia State AFL-CIO
H. 0. Gray, Business Manager, Roofers Local No. 1 3 6
W. L. Hall, Assistant Business Agent, Operating Engineers
Local No. 9 26
Robert T. Ingram, Representing the Poor of Hancock County Joe Jones, Jr., Atlanta, Georgia J. B. Lowry, Representing Iron Workers William McKenna, Smyrna, Georgia Phil C. Padget, President, Communications Workers of America
Local No. 3290 Mary C. Ransom, Atlanta, Georgia Mrs. Roger McMillian Reeb, Atlanta, Georgia Julia Shields, Representing Welfare Rights J. B. Stevens, Representing Elevator Constructors Local No. 32 Joy Thompson, Assistant Executive Secretary, Atlanta Branch NAACP Jack H. Usher, City Attorney, Savannah, Georgia Pilcher Walden, Jefferson, Georgia Mrs. Nannie Leah Washburn, Atlanta, Georgia Sam Weldon, Coordinator of Fringe Benefits for Carpenters
Local No. 225 W. L. Worley, Business Agent, Carpenters Local No. 225 John Wright, President, Atlanta Labor Council

For the Commission:
John Hinchey, Deputy Assistant, Attorney General David A. Kosh, Consultant R. B. Alford, Director Utilities Division Frank G. Heald, Chief Utilities Auditor Winford Poitevint, Utilities Auditor

0# T O I ./ :jpS.J

.^S,b: .

3< *is D ito X io ru ro O *<;<$: BOOJ 8^dN$W5ftfl@K:?4T; - 3BSJ
t; JjKJCi B*SS (.J^Jt'S'.S

[fiT; : ^jfQ'SD b z f*tf (B 3 1
f t n * * ht

'tct n o ' l l . .:fr * ' . 2 B>i JEfl 3
0.1 ; . A ' -02 -

'
JBD1 tdflTt: !JIOW 8 rto,:;
: ' < ;j. -i ^DAE -jlftaMft-,&$&&&$& <
,to$C
X^inaO aotX &t&$k t$s&hizs'&l ?'obin
's-iqggO yzsiict&k. .xas-iais? -:'i m

Docket No. 2130-U

3.

BY THE COMMISSION:
On August 5, 1969, Southern Bell Telephone and Telegraphy Company (herein after sometimes referred to as the Company) filed an application with the Commission for an adjustment in the general schedules of rates and charges for intrastate telephone service provided by the Company within the State of Georgia. Attached to the Petition was a detailed schedule of the proposed changes which were designe to produce $29,750,000 in additional annual gross revenues. While the proceeding was pending, the Petition was amended to reduce the additional revenue requirements
by $U,1 8 3 ,0 0 0 primarily due to changes in the federal income tax surcharge rate.
Hence, the additional annual gross revenue requirement was adjusted to the level
of some $2 5 9 5 6 7 ,0 0 0 .
This application was assigned for hearing before the Commission beginning
at 10:00 A.M. on October 29, 1 9 6 9 . The Commission directed the Company to publish
prior to the date set for hearing notice of the time, place and purpose of the hearing in two issues of the official newspaper for each county in which the Company has an exchange. Evidence of such publication was presented at the hearing on October 29> 1989 I*1 addition, the Notice advised the public that a copy of the proposed schedule of changes in rates and charges was on file in the offices of the Commission and in the various local telephone offices of the Company's sub
scribers.
At the hearing held pursuant to Commission assignment, the Company presented its direct testimony and exhibits; and all of the interveners and other members of the public who desired to testify were heard. At the conlcusion of
the hearing on October 30, 1 9 6 9 , the matter was recessed and reassigned for further
hearing on March 17, 1970, for the purpose of cross-examination of Company witnesses and presentation of evidence by all interested parties. Further hearing was held as scheduled on that date, continuing on through March 18, at which time the Company's witnesses were extensively cross-examined. Intervenors and members of the public present were given an opportunity to be heard. The matter was again recessed and reassigned for further hearing on April l6, 1970,for presentation of Staff testimony and receipt of any other evidence. This hearing was held as uled, and testimony on behalf of the Commission Staff was presented by Mr. David A. Kosh, special consultant to the Conmission. The Company presented Mr. Knowles Davis in rebuttal to the Staff testimony, and Mr. Kosh testified in surrebuttal to Mr. Davis. Again other parties and members of the public were given an opportunity to be heard. The record was closed with the exception of receipt of one late-filed Company exhibit and additional Request Items from the Commission's Staff.
The record in this case is voluminous with over 700 pages of transcript and numerous exhibits containing data, charts and analyses relating to the various factors and elements of proof required for the development of a full record in a matter of this kind.
Some 3 8 appearances were entered in opposition to the application. Some
of these were individuals expressing their own views. Others were in representative capacity. Some of those appearing in opposition had service complaints or billing complaints. As to these, the Commission directed the Company to investigate and report back to the Commission in each case. A number of the opponents expressed concern over inflation and rising prices and urged the Commission to give considera tion to the needs of low-income and fixed-income groups. The Federal Government

' fesjrfojir '
finp9*r

Docket No. 2130-U

was represented by the Department of Defense on behalf of all executive agencies. Counsel for the Department cross-examined the Company's witnesses but did not present testimony;

At the conclusion of the testimony in opposition to the application, the Company presented its direct case.

Mr. A. Max Walker, Treasurer and Vice President-Revenue Requirements of the Company, testified on a number of issues including investment, operating revenue expenses and net income of the Company on its Georgia operations. The intrastate portions of such amounts, arrived at by application of prescribed separations procedures, were shown in Exhibit form and explained. Mr. Walker also presented a recommended rate base for use in this proceeding.

RATE BASE

It was alleged that the Company1s proposed rate base followed that adopted by this Commission in the last general rate increase case for the Company in Docket No. 195-U (Order of November 1, 1951) with two exceptions. The Commission in the earlier case had eliminated plant under construction as well as materials and supplies and cash requirements from the rate base and had used net average invest ment rather than end-of-period investment as proposed by the Company. Here the Company made no claim for materials and supplies and cash requirements, undoubtedly in recognition of the offsetting effect of accruals for payment of income taxes which was the basis for the Commission's action in Docket No. 195-U. However, the Company included in its proposed rate base the element of plant under construction and again proposed the use of an end-of-period base.

The Company also included an adjustment to the rate base for the depressini effect of high cost construction calculated in the same manner as that employed by the Commission in Docket No. 195-U. Mr. Walker testified that it was included in order to give the Commission a direct comparison between the return requested in this case and that allowed by the Commission in 1951 Mr. Kosh, testifying on behalf of the Commission Staff, recommended that the Commission adopt an original cost type rate base and that any allowance for inflation should be provided in the rate of return. Company witnesses also developed their conclusions as to rate of return on a generally similar approach.

The components of the rate base and the related amounts as shown by the record are as follows:

Telephone plant in service Telephone plant under construction Property held for future use
Total telephone plant

$6^3,313,018 11,806,176
329.271
$6 5 5 , ^ 8 ,^ 6 5

Less reserve for depreciation Net telephone plant
Adjustment for depressing effect of high cost of construction
Rate Base Including Adjustment for High Cost Construction

iTO.8 7 0 .u96
$52U,577,969 58.860.000
$582,937,969

Included in the above rate base is $5 8 ,3 6 0 ,0 0 0 representing an allowance
claimed by the Company for expected high cost construction estimated to occur within a two-year period succeeding the end-of-year Company test period. Testimony and exhibits presented at the hearing set forth in detail the manner in which this allowar was derived. The Company has urged that consideration be given to this high cost cor struction factor in order to provide an offset to a possible declining rate of return

Docket No. 2130-U

5.

OPERATING REVENUES AND EXPENSES

The record further shows that the Company* s net operating income for
the 12 months ending June 30 9 19^9j was $31?3^-9>852 including $723?617 for interest
capitalized during construction as follows:

OPERATING REVENUES, OPERATING EXPENSES AND

NET OPERATING INCOME
12 MONTHS ENDING JUNE 30 9 1969

Operating Revenues

Intrastate

1. Local Service Revenues

2. Toll Service Revenues

3 . Miscellaneous Revenues

k. Uncollectible Revenues - Dr.

5. Interest Charged Construction

6.

Total Operating Revenues

$1^2,82^,156 Ul,2^7,160 12,360,666 558,073 7233617
$196,597?52o

Operating Expenses

7. Current Maintenance
8 . Depreciation Expenses 9 . Traffic Expenses

10. Commercial Expenses
11. General Expenses (6 6 l thru 6 6 5 )

12. Relief and Pensions
1 3 . General Services and Licenses

lU. Other General and Miscellaneous Expenses

15. Operating Taxes

16 .

Total Operating Expenses

17. Net Operating Income

$ 3 9 ,2 8 2 ,5 3 !* 3 5 ,0 3 6 ,6 3 3 1 8 ,5 3 6 ,9 0 0 lh,7%M
7,269,7^7 6,3^1,272 1,799,380 2,33^,555 39,903,220 $1W W H & f c
$ 3 1 ,3 ^9 ,8 5 2

Pro forma adjustments for known changes affecting the revenues and expenses for the test period as well as a computation of the Company's going rate of return and its increased revenue requirement based on a claimed 755% return on rate base were summarized by the Company and set forth on an exhibit as follows:

Docket No. 2130-U

6.

1. Actual Net Operating Income for 12 Months
Ending June 30, 19 6 9 (Walker Exhibit 2)

$ 31,3^+9,852

2. Adjustments to Test Period (Walker Exhibit 3) Full Effect of 6$ State Income Tax Rate

(110,531)

3- Adjusted Net Operating Income for 12 Months Ending June 30, 19&9 (l+2) (Walker Exhibit 3)
i+. Net Operating Income as of June 30, 19 6 9
($31,239,321 x 1.0280) (Walker Exhibit 3) (End of Year Station Factor)

31,239,321
3 2 ,1 1 ^ , 0 2 2

5. Adjustments to End of Period Net Operating
Income (Walker Exhibit 3 )*
(a) May 19 6 8 Wage Agreement - Effective 19 6 9 (b) To Exclude Effect of 1-1- 6 9 Change in Separations
.6 Adjusted Net Operating Income as of
June 30, 19 6 9 (Walker Exhibit 3 )

(1 ,3 1 1 ,2 9 6 )
(U66,000)
30,336,726

7- Additional Pro Forma Adjustments to Test Period (Walker Exhibit 16) (a) 1970 Reduction in Federal Income Tax Rate to 1+9.2$ (b) 1970 Wage Increase (c) Employee Savings Plan (d) 72I0 Rate for Interest Charged Construction (e) 1970 Separations Changes (f) Annual Effect of Using Accelerated Depreciation for Federal Income Tax
8. Adjusted Net Operating Income as of June 30, 19 6 9 Giving Effect
to Additional Pro Forma Adjustments (6+7)

1,710,735 (1,200,963)
(l55,*+*+3) 130,51+1 370,701+
6 3 ,6 6 7
31,255,967

9- Rate Base (Walker Exhibits 1 & 15)
1 0 . Going Rate of Return Giving Effect to Adjustments on Walker Exhibit 16 (8 ~ 9 )
1 1 . Rate of Return Required (Walker Exhibit 15)

582,938,000
5*36$ 7.55$

12. Deficiency in:

(a) Rate of Return (11-10)

(b) Net Operating Income (2.19$ x Line 9)

(c) Gross Revenues Required (12,766,000

.I+6 9 2 I+5 2 )

13- Less Revenue Requirement Effect of January 19 6 9 Order in FCC
Docket 17195 Over Interim Plan 1970 Effect (Walker Exhibit 15)

2.19$ 12,766,000 27,205,000
1,670,000

lb. Additional Gross Revenue Requirement (12-13)

$ 25,535,000

Docket No. 2130-U

7.

RATE OF RETURN

Four witnesses testified with respect to fair rate of return for the
Company on its Georgia intrastate operations. Mr. A. Max Walker testified that
the fair rate of return in his judgment would be about 8 3,A$ The Company also
presented the testimony of Mr. John McClelland, Resident Vice President of Bache
8 Co., Inc. and formerly President of Hilsman and Company, Inc., an Atlanta investment banking firm until its acquisition in 1 9 6 7 by Bache 8s Co. Mr. McClel
land, on the basis of his experience and knowledge of the current money market,
testified that the Company would require a rate of return between 8 .98$ to 9 36$
in order to be successful in attracting the capital to maintain its quality of
service, fund its growth, and to improve service in keeping with the desire of
the public.

Mr. David A. Kosh, President of Kosh-Glassman Associates, Incorporated, public utility consultant in Washington, D. C., testified as to cost of capital and fair rate of return on behalf of the Commission Staff using the Cash Discount Flow method in his analysis. He was of the opinion that the fair rate of return
for the Company would be some 7 6$.

Mr. N. Knowles Davis, a professional consultant in Houston, Texas, testified on behalf of the Company in rebuttal to Mr. Kosh. Mr. Davis, while not taking issue with the general approach used by Mr. Kosh, criticized his application and implementation of the method. In particular, he disagreed on various judgment factors that were used by Mr. Kosh in arriving at his 7*6$ rate of return. He then applied his own judgment, which he considered to be more realistic and reasonable under current conditions of investor requirements, high interest rates and a high level of inflation. It was his conclusion that a rate of return for the Company in the range of 8.5$ to 9-0$ would be fair and reasonable.

All of the witnesses emphasized the necessity to provide earnings which would attract capital on a sound basis under prevailing conditions of the market for both debt and equity capital. While differing to some degree on the trend in interest costs, they all recognized that current interest rates are at all-time highs. The highest rated corporate bonds now costing in the range of 8.75$ There is nothing in the record that would indicate any very substantial reduction in interest rates in the near term future.

Dr. William B. Keeling, Professor of Economics and Director of Research of the College of Business Administration of the University of Georgia, testified on the economic growth in Georgia and the importance of sound basic utility ser vices, such as telephones, electricity and water, to the functioning of an in dustrial economy. He testified that telephone service along with other basic factors can play a key role, either positive or negative, in the process of eco nomic development. Dr. Keeling stated that if the service is barely adequate, if there is delay in getting service to new or expanding plants, and the service is slow in being introduced, alternative locations in other states or areas may appear more attractive and a potential development may not take place. He further expressed the view that an economically healthy telephone system, capable of at tracting on reasonable terms, the necessary capital to enable it to continue to expand and to remain technologically progressive, is one of the most important prerequisites to maintaining a high rate of economic growth in the years ahead.

Docket No. 2130-U

8.

Mr. Jasper Dorsey., Vice President of the Company with responsibility for all of the Company's operations in Georgia, testified as to the dynamic growth that has taken place in the State and the resulting impact on the demand for telephone service. Mr. Dorsey stated that the Company has constructed a billion dollars in new telephone facilities since the last general rate increase in 1951- About half of this amount has been spent during the last five years.
The Company's construction program for 19 6 9 was $137j6 0 0 ,0 0 0 , and its current
program in the State calls for spending $*+70,000,000 during the three-year period 19^9"1971* The record shows that a large portion of the money needed for expan sion and service improvements must be attracted from investors. Mr. Dorsey fur ther testified that telephone subscribers in Georgia are demanding higher quality service than ever before. As an example, one-party service had increased from
l6% in 1951 to 8 3 % in 1 9 6 9 . Average net investment per main telephone has in creased l*+0$ over the same period.
BY THE COMMISSION
The evidence in this matter has been carefully considered and there appears to be sound reason to adept in a determination of the Company's revenue requirement, methods different from those used by the Company. Moreover, it further appears that the methods used by the Commission are recognized as proper in the field of regulation. Whereas, while the record in this matter shows that the Company has claimed for purposes of this proceeding a net investment in tele phone plant and facilities at the end of the test period, along with its business development at that time in the computation of its increased revenue requirement, the Commission is of the opinion that average net investment should be used along with the Company's business development at the mid-point of the test year (December 31? 1968). The record further shows that the Company's investment includes funds devoted to construction work in progress, property held for future use, as well as an adjustment for the depressing effect of high cost of construc tion. Hence, net average investment and the components to be included therein are derived by the Commission and discussed as follows:

Plant in Service Less - Reserve for Depreciation Net Plant in Service Plus - Property Held for Future Use Balance Less - Unamortized Investment Credit 1/ Average Investment or Rate Base

Average for the
12 Months Ended
June 303 19 6 9
$603,208,23^
122,1 1 9 .2%
$*+01,088,978
37*+3876 $*+81,1+63,85*+
7,565,98*+
$*+7 3 3 8 9 7 ,8 7 0

1/ Average Gross Plant in Service Intrastate

$603,208,23*+

Average Gross Plant in Service Combined

$8 2 1 ,6 7 1,2 6 3

Ratio - Intrastate/Combined

73 M i

Average Combined Investment Credit

io, 306,*+76

Intrastate Investment Credit ($10,306,*+76 x 73-*+1%)

$ 7,565,98*+

Docket No. 213.0-U

9-

Property held for future use is included in the foregoing rate base determination since the evidence in this matter shows that this property has been or will be placed in service in the immediate future. Moreover, plant under construction has been excluded from said rate base for which the earnings requirement is determined and at the same time we have eliminated the interest on the item as a credit to earnings. Since the philosophy of this Commission with regard to the treatment of plant under construction is well stated in Docket No. 195-U, which involved a matter of rates for this Company, there appears to be no need to discuss such treatment further. The evidence further shows that the Company's plant investment includes the effect of expenditures made with funds obtained through normalization in the income statement for the effect of costfree tax investment credits. Such being the case, the Commission has deducted from said rate base an amount applicable to Company's unamortized balance of said investment credits. While the Commission gives recognition to the fact that plant costs today are substantially higher than they were a number of years ago, plant expenditures at whatever level incurred are already included in Company's plant investment. Therefore, the Commission is of the opinion that the Company's claim for an adjustment in the amount of $58,360,000 for the de pressing effect of future high cost construction should be excluded from the rate base and that the effect of such anticipated future cost should be dealt with when that cost is incurred. It is further the opinion that in order to offset to some extent any decline in Company's earnings due to the time that has elapsed since the mid-point of the test year and the date on which rates prescribed herein would become effective, such effect should be handled in the Commission's determination of the Company's revenue requirement. This order will so provide.

It should be observed that this Company, and other regulated public utilities, are experiencing a prolonged period of heavy construction brought about by the demand of the public for substantial service improvements, as well as a substantial demand for the expansion of its service to meet the required needs of the public. Public utilities are, on the other hand, experiencing the effect of inflation on the cost of rendering service, particularly the cost of capital required to be obtained in the money market. Moreover, while the in flationary period under which we are all living continues and it seems will con tinue for some time into the future, public utilities must meet the service demands of the public by building additional plant facilities with proceeds from such high cost capital, which cost under the law is paid by the ratepayers.

HATES

Witness Garity testified as to his Exhibit I consisting of some 18 pages with Attachment I of some Ik pages, all of which dealt with the proposed
rate schedules which would have produced approximately $2 9 ,7 5 0 ,0 0 0 in additional
annual revenues. Approximately $8,573,000 was intrastate message rate increases
and $21,158,000 in Local Exchange and miscellaneous service items. Subsequent
to the hearing, some of the exchange service items were adjusted downward that
would produce $1 9 ,8 8 2 ,0 0 0 after allowing for base rate area extensions in 1 2 0
exchanges and the "banding" of the balance of the Georgia exchanges.

!.

ci' te>.bo

Wrsuf. H:

D 'd

>';`xo ;tiBaTcti.e'v',D.l ' . K.4 fit-aoo ..
1 i
1 ' &OT
... ..

L .'.f ": : r i i . " ' 1 ? :' : 4

: *

B & M ttQ b " & * 0 0 3 8 i fl

V %<$&
"A'.jfe#'ltr T
fmt.
'


.. i 1c ..H .

tSffO

ffoJrjfw

/.^ -.'.i 1 '. ,/CO^.X'

-

?." to . noi:?*'ri o*-t O-I

Docket No. 2130-U

10 .

While his original proposal provided for base rate area expansion and
"banding" amounted to a revenue reduction of $l3l8 9 >6 7 0 , the Commission deter mined 3 following its study of the matter, that further expansions should be made
to make for greater uniformity as well as consistency, and to provide for an
additional reduction of $2 6 ,1 0 0 , making the total reduction in mileage charges
$1,215,800. It should be observed that rates applicable to the aforementioned
exchange service items have remained at the same level over a number of years,
some of which date back to 1951 Since the proposed rates appear reasonable and
appropriate for increasing the Local Exchange Service and miscellaneous service
items by the amount set out hereinabove ($1 9 ,8 8 2 ,0 0 0 ), this order will so provide.

Witness Garity further testified concerning the proposed increase in
intrastate message rates totaling $8 ,8 7 2 ,7 0 0 , and concerning the proposed in crease in exchange service and miscellaneous items of $1 9 j8 8 2 ,0 0 0 , which after downward adjustments aggregates $2 8 ,^5 ^?7 0 0 .

Further testimony by this Witness set forth that the Company* s local
exchanges are presently covered in 1 0 different exchange rate groups, the rates
for which are presently based on total telephones in each such group while the
proposed revision contemplates 1 0 different rate groups to be based on main
stations together with Private Branch Exchange trunks. He went on to say that the phenomenal growth of some exchanges in Georgia has resulted in telephone subscribers in said exchanges of comparable sizes, in many instances, paying different Local Exchange rates. It appears that one purpose of the proposed regrouping is to place each exchange in its proper rate group, thus bringing all exchanges into proper relationship with each other and eliminating inequities in the application of exchange rates, according to this Witness. Moreover, he showed that the Company seeks Commission approval of some method whereby future inequities resulting from exchanges growing out of their respective rate group
may be corrected and systematically adjusted.

After careful consideration of this matter, it is the opinion of the Commission that the Company will require an increase in rates in order that its
revenues will be adequate to meet its overall cost of rendering telephone service
to its subscribers. Hence, rates authorized by this order are estimated to pro
duce some $20,788,000 per annum of increased gross revenues to the Company in
lieu of the amount of $2 9 ,7 5 0 ,0 0 0 originally alleged, which was subsequently amended and reduced to the figure of $2 5 ,5 0 0 ,0 0 0 alleged to be required by the
Company.

Wherefore, it is

ORDERED that Southern Bell Telephone and Telegraph Company shall file
with this Commission revised tariffs for final approval by the Commission which
will produce additional exchange and intrastate message rate revenues not to
exceed $2 0 ,7 8 8 ,0 0 0 per annum, based on a price-out applicable to its business
development of customer services as at the close of business December 31? 1988.

ORDERED FURTHER that the intrastate message rate increase authorized herein be applicable only to operator-handled traffic, and not be in excess of the proposed interstate message rates as filed with Federal Communications Commission on November 20, 1970, by American Telephone and Telegraph Company.

t> '

:-tcri '3d': T : \

.ti

&isq&ubL &m btxB oiinoIS &

s

` d o f* u - d

: ? J .e t n o

f 0 -0 , '

'0 0 3 / 1 0 i

\ i x i U T r j B lU & f

, a s s is a ffe c t B x s s c jt ) . '

to

ftg fi

? * i o M

, a s a c u frJtV / a i

1 in a

' fo D

' *;* ; *r, '

iwtBd 1

' " / 1'tor.jTj?. 9rii s 1 s i : . 3;:: -

0$ M no

no m

Docket No. 2130-U

11.

ORDERED FURTHER that provided the said revised tariffs filed by the Company are, after final review of same by the Commission, found to be appropriate then such tariffs shall become effective with billings made on and after January 1, 1971.

ORDERED FURTHER that the Company's proposal that exchanges be grouped on a main station and Private Branch Exchange trunk basis as set forth in this proceeding be, and the same is hereby approved.

ORDERED FURTHER that the Company shall file with the Commission before January 1, 1971, revised base rate area extensions and maps applicable thereto, which will show a reduction in revenues from exchange line mileage charges of
some $1 ,2 1 5 , 0 0 0 by reason of such base rate area extensions.

ORDERED FURTHER that the savings plan and cost thereof as set forth in the evidence presented by the Company in this matter be, and the same is hereby accepted for purposes of this proceeding only, subject to complaint and further order.

ORDERED FURTHER that jurisdiction over this proceeding is expressly retained for the purpose of entering such further order or orders as to this Commission may seem meet and proper.

BY ORDER OF THE GEORGIA FUBLIC SERVICE COMMISSION, this the 11th day of December, 1970.

A. 0. RANDALL, SECRETARY

W. H. KIMBROUGH, CHAIRMAN

GEORGIA POWER COMPANY

D u rin g the y e a r 1970, the G eorgia Power Company in v e s te d a r e c o r d o f $ 2 3 2 ,0 0 0 ,0 0 0 i n new c o n s t r u c t io n . A m a jo r p o r t io n o f t h a t sum was s p e n t f o r new g e n e r a t in g f a c i l i t i e s t o meet th e g r e a t ly in c re a s e d demands fo r e le c t r i c power th ro u g h o u t the company' s s e r v ic e area. A p o rtio n o f t h is investm ent in clu d e d the second 800,000 k ilo w a t t u n it a t the Edw in I . H atch N u c le a r P la n t lo c a te d on the Altam aha R iv e r near B a x le y . The f i r s t 800,000 k ilo w a t t u n it is sch e d u le d fo r c o m p le tio n in 1973 and the second u n it by 1976. C o n s tru c tio n c o n tin u e d d u rin g the y e a r on P la n t Bowen w h ich i s lo c a te d on the Etowah R iv e r n e a r C a r t e r s v i l l e . The f i r s t u n it o f 700,000 k ilo w a t t c a p a c it y i s sch e d u le d fo r c o m p le tio n in 1971. The second 700,000 k ilo w a t t u n it has been planned fo r 1972 and the p la n t ' s t h ir d and fo u rth u n it s , each w ith a c a p a c ity o f 850,000 k ilo w a t t s , a re sch ed u led to b e g in o p e ra tio n in 1974 and 1975. Upon c o m p le tio n , P la n t Bowen w i l l have a t o t a l c a p a c it y o f 3 ,1 0 0 ,0 0 0 k ilo w a t ts and w i l l be the la r g e s t g e n e ra tin g s ta t io n in the U n ited S ta te s . C o n s tru c tio n was com pleted d u rin g the y e a r on the 500,000 k i l o w a t t f o u r t h u n i t a t P la n t Hammond n e a r Rome. T h is f o u r t h u n i t n e a rly t r ip le d t h is p la n t ' s s iz e and g e n e ra tin g c a p a c ity . D uring the n e xt th re e y e a rs the company w i l l i n s t a l l a t new and e x is t in g p la n ts over $12,000,000 o f p o llu t io n - c o n tr o l d e v ice s fo r the purpose o f im p ro vin g the environm ent and m aking fo r c le a n e r a ir in the a re a s o f the g e n e ra tin g p la n t s . I n o rd e r to p re v e n t warm w a te r floxtfing back in t o the r iv e r , w hich w ater is used fo r condensing steam in th re e c o o lin g tow ers a t P la n t Bowen, an in v e stm e n t o f over $10,000,000 w i l l be re q u ire d . Each o f these tow ers w i l l be t a lle r than a tw enty-tw o s to r y o f f ic e b u ild in g in downtown A t la n t a . The G e o rg ia Power Company system peak c a p a c it y f o r 1970 t o t a lle d 6 ,8 8 7 ,6 4 4 k ilo w a t t s xtfhile the system peak e x p e rie n c e d d u rin g the month o f Septem ber amounted to 6 ,1 9 7 ,0 0 0 k ilo w a t t s . T h is power o r demand d u r in g 1970 was 1370 more th a n was r e c o r d e d i n 1969. To make fo r e le c t r ic r e lia b ilit y , t ie lin e s are connected w ith other u t i li t y com panies in the so u th e a st fo r w hich c o n tra c ts e x is t s e tt in g fo r th th e number o f k ilo w a t t s i n summer and w in t e r t h a t a re a v a i l a b l e .

The number o f cu stom ers se rv e d by the G e o rg ia Power Company

d u rin g 1970 in c re a s e d by 13,856 fo r a t o t a l a t y e a r end o f 977,723.

The t o t a l e l e c t r i c s e r v ic e in k ilo w a t t h o u rs in c r e a s e d by 12.4% to

3 0 .1 4 6 .4 5 1 .0 0 0 . Of t h is t o t a l r e s id e n t ia l cu sto m ers used more than

7 .0 0 0 .

000.000 k ilo w a t t h o u rs o r 12.7% in c r e a s e o v e r 1969. C om m ercial

and I n d u s t r i a l s e r v ic e w ere up 11.4%> to n e a r ly 1 6 .5 b i l l i o n k ilo w a t t

h o u rs. The a d d it io n o f more than 13,000 e l e c t r i c a l l y h e a te d comm ercia

b u ild in g s to the G eorgia Power system helped account fo r the in c re a s e .

The new s t r u c t u r e s b ro u g h t the t o t a l to more tha n 12,000 and r e t a in e d

fo r -Georgia the n a tio n a l le a d in the number o f e le c t r ic a lly - h e a t e d

c o m m e rc ia l b u il d in g s . Some 1 4 ,0 0 0 e l e c t r i c a l l y h e a te d h o u se s and

a p a rtm e n ts w ere added to th e com pany' s sy s te m d u r in g th e y e a r and now

t o t a ls ap p ro xim ately 70,000 such re sid e n ce s. R e s id e n tia l custom ers

d u rin g 1970 used an average o f 3,732 k ilo w a t t hours compared to 7 ,9 4 0 f o r 1969 o r a 107o in c r e a s e . T h is a v e ra g e u sag e r e p r e s e n t s 23% more th a n th e n a t io n a l a v e ra g e . These c u s to m e rs p a id an a v e ra p r ic e o f 1 .5 5 c p e r k ilo w a t t h o u r and t h is re p r e s e n ts 21.1% belo w the n a tio n a l average. O perating revenues in cre a se d by $45,237,000 to a t o t a l o f $ 37 9 ,5 2 9 ,0 0 0 o r a 13.6% g a in . O p e ra tin g e x p e n se s, however, in cre a se d because o f h ig h e r in t e r e s t ra te s and o th e r g e n e ra l in f la t io n a r y c o s ts . O p e ra tin g expenses amounted to . $300,689,000, in c lu d in g the c o sts o f wages, fu e l and p ro v is io n fo r d e p r e c ia tio n and ta x e s . T h is was an in c re a s e o f $35,760,000 o v e r 1969 o r 13.5% in c r e a s e . The com pany' s f u e l c o s t s s e t the r e c o r d s o a r in g to $ 3 2 ,8 7 3 ,0 0 0 w h ich was $ 1 9 ,2 3 1 ,0 0 0 o r 30.2% more than was e xp e rie n ce d in 1969. In clu d e d in these fig u r e s was the co st o f n a tu ra l gas to operate p la n ts A rk w rig h t and A tk in so n fo r a p o r tio n o f the year and the c o s t o f n a tu r a l gas and fu e l o i l to o p e rate the company' s com bustion tu rb in e s . P a rt o f the a d d it io n a l in c re a s e in fu e l c o sts re s u lte d from reduced h y d r o - e le c t r ic p ro d u c tio n d u rin g 1970. A b n o rm a lly low r a i n f a l l r e s t r ic t e d h y d r o - e l e c t r i c p r o d u c t io n by 2 6 9 ,0 0 0 ,0 0 0 k i l o w a t t h o u rs o r 17% below the p r e d ic tio n . Of the t o t a l k ilo w a t t hour o u tp u t d u rin g 1970, 68.5% was p ro d u ce d by f u e l b u r n in g p la n t s , 4.17 by h y d r o e l e c t r i c p la n t s and 27.47o was p u rc h a s e d fro m a s s o c ia t e com pan ies and o th e r U t i l i t i e s in the so u th e a st.
F o r the f i r s t tim e in the company' s h is t o r y , bonds and p r e fe r r e d s to c k were s o ld on two s e p a ra te o c c a s io n s d u rin g the yea In A p r i l , the company s o ld a t c o m p e titiv e b id d in g , $60,000,000 p r i n c ip a l amount o f new 3 0 -y e a r 8 -5 /8 p e rc e n t f i r s t m ortgage bonds and 100,000 shares o f $8.76 p re fe rre d sto c k . Proceeds from the s a le o f a l l s e c u r it ie s ammounted to $ 2 1 2 ,5 0 0 ,0 0 0 and to g e th e r w it h funds generated in t e r n a lly , were used to fin a n ce the company' s 1970 c o n s tr u c tio n program . The company' s in v e stm e n ts in u t i l i t y f a c i l i t i e s , le s s re tire m e n ts , in c re a s e d $223,000,000 d u rin g 1970 to a t o t a l o f over $1.7 b i l l i o n a t the c lo s e o f the y e a r. C a p ita l in vestm en ts fo r a d d itio n s d u rin g the p a st ten y e a rs re p re se n t a lm o st 70 p e rc e n t o f t h is t o t a l in v e s tm e n t. The n e t in v e s tm e n t a t o r ig in a l co st in u t i l i t y p la n t aggregated $1,425,218,000.

J u ly 8, 1970
F ile Ho. 19314 N o n -D o cke t
IN RE: A p p lic a t io n o f G e o rg ia Foxier Company to remove the lim it a t io n im posed on i t s f u e l ad ju stm en t r id e r in D ocket 1323-U.
BY THE COMMISSION:
On J u l y 8 , 1970 G e o rg ia Power Company ( A p p lic a n t ) f i l e d a p e t it io n re q u e s tin g the rem oval o f the lim it a t io n im posed on i t s f u e l adjustm ent r id e r .
Under D ocket No. 466-U , t h is Com m ission on M arch 23, 1953 granted A p p lic a n t the a u th o rity to in c lu d e the F u e l Adjustm ent R id e r in c e r t a in o f i t s ra te sch ed u les pu rsu an t to w hich custom ers" b i l l s are in cre a se d or decreased in p ro p o rtio n to any in c re a s e or decrease to A p p lic a n t above o r below a base p r ic e in the c o s t o f f o s s i l fu e l burned in i t s g e n e ra tin g p la n ts and in o th e r p la n ts from w hich i t p u rc h a s e s c a p a c it y . On A p r i l 18, 1958, i n D o c k e t N o. 1 3 2 3 -U , th e Com m ission e n te re d an o rd e r lim it in g A p p lic a n t 's f u e l ad ju stm en t to a maximum o f t h i r t y - f i v e o n e -th o u s a n d th s o f a c e n t (,0 3 5 c ) p e r kwh.
The a p p lic a t io n re q u e sts the Com m ission to e lim in a te the lim it a tio n and c it e s the fo llo w in g fa c ts :
A p p lic a n t o p e rate s e ig h t la rg e steam g e n e ra tin g s ta t io n s , ra te d i n th e a g g re g a te a t 3 ,5 6 4 ,7 0 0 kw o f c a p a c it y , w it h 3 ,6 0 0 ,0 0 0 lew o f c a p a c it y now u n d e r c o n s t r u c t io n , a l l o f w h ic h b u rn f o s s i l f u e l . I n 1969 A p p l i c a n t ' s p la n t s b u rn e d some 7 ,5 0 0 ,0 0 0 to n s o f c o a l r e p r e s e n t in g some 1 8 5 ,0 0 0 ,0 0 0 m i l l i o n B t u , and some 2 2 ,0 0 0 ,0 0 0 MCF o f n a t u r a l gas r e p r e s e n t in g some 2 3 ,0 0 0 ,0 0 0 m i l l i o n B t u . I t i s e v id e n t t h a t th e t o t a l consum ption o f these fu e ls w i l l in c re a s e s u b s t a n t ia lly each y e a r in the fo re se e a b le fu tu re .
C o a l is o b ta in e d from a number o f d if f e r e n t so u rce s. Each such source has in c u rre d s u b s ta n tia lly in c re a se d la b o r and m a te ria l c o sts s in c e 1958. On A p r i l 1, 1970, th e 1969 F e d e r a l C o a l M in e S a f e t y A c t went in t o e f f e c t , and Ap p lic a n t ' s s u p p lie r s are b e in g fo rc e d to expend s u b s t a n t i a l sums, e s tim a t e d i n some in s t a n c e s t o become e q u iv a le n t to as much as $1.25 p e r to n , on m in in g im provem ents r e o u ir e d f o r c o m p lia n c e w ith th a t A c t. These in cre a se d m ining c o sts have n e c e s s a rily fo rce d the c o s t o f c o a l upward.
The p r ic e o f c o a l s in c e 1968 has a ls o been d r iv e n upward by a s c a r c it y o f c o a l cre a te d by the f a ilu r e o f c o a l pro du cers in the U n ite d S ta te s to open new m ines o r o th e rw is e expand p ro d u c tio n because o f fe a r o f lo s in g m arkets to n u c le a r fu e ls , and by the in c re a se d purchases o f c o a l in the U n ite d S ta te d fo r fo re ig n consum ption.
43-

Non-Docket

2.

S in c e 1967 the r a ilr o a d s w h ich s h ip c o a l to A p p lic a n t ' s f u e l g e n e ra tin g s ta tio n s have f ile d fo u r a p p lic a tio n s to in c re a se c o a l f r e i g h t r a t e s . A l l o f th e s e have b een , to some e x t e n t , g ra n te d by the I n t e r s t a t e Commerce Com m ission d e s p it e the in t e r v e n t io n and a c t iv e o p p o s itio n o f A p p lic a n t and o th e r u t i l i t i e s in the p ro ce e d in g s. These fr e ig h t ra te in cre a se s are re fle c te d in the average fr e ig h t c o s t per ton d e liv e re d w hich has in c re a se d from $2.74 in 1968 to $2.84 i n 1969, and i s e xp e cte d to jump 19-l/27o to a p p ro x im a te ly $3.28 in 1970.

As c o a l requ irem en ts have in c re a s e d , a p p lic a n t has been com pelled to purchase c o a l from m ines a g re a te r d is ta n c e from i t s g e n e ra tin g p la n ts , w hich has a ls o u n a vo id a b ly in c re a se d i t s average f r e ig h t c o st per ton.

F u rth e r, the A p p lic a n t ' s p e t it io n s ta te d th a t every attem pt had been made to re d u c e c o a l f r e i g h t c o s t s , b u t th e f a c t o r s t e n d in g to in cre a se such co sts as h e re to fo re c ite d have caused average co a l cost to in c re a s e frora 28.67b per m illio n B tu in 1967 to 31.24b per m illio n Btu in 1969. P re se n tly a v a ila b le data in d ic a te th a t co a l cost w ill jump by 20% t o 3 6 . lb p e r m i l l i o n B tu i n 1970 and 3 7 .7 4 b p e r m i l l i o n B tu in 1971 due to such fa c t o r s , a l l o f w hich are beyond A p p lic a n t ' s c o n tro l.

In 1968, due to in c r e a s in g c o a l c o s ts and c o a l f r e ig h t c o s ts , i t became e v id e n t th a t A p p lic a n t co u ld reduce i t s fu e l c o s ts by consum ing n a tu r a l gas in i t s g e n e ra tin g p la n t s where and when n a tu r a l gas co u ld be o b tain ed . Even though le s s c o s tly than c o a l, the average c o s t o f n a tu r a l gas, w hich was 26.90b per m illio n B tu in 1968 and 2 6 .8 2 b p e r m i l l i o n B tu i n 1969, i s e x p e c te d t o in c r e a s e b y 12.57 to 30.13b per m illio n B tu in 1970 and 32.24b p e r m illio n B tu in 1971 due to the in c re a s e d p ip e lin e c o s ts o f A p p lic a n t ' s s u p p lie r , A t la n t a Gas L ig h t Company, w hich has been p e rm itte d thro u g h i t s '' P urch a se Gas A djustm ent R id e r" to pass on a p ro p o rtio n a te share o f such in c re a s e s . Such in c re a se s in A p p lic a n t ' s n a tu ra l gas c o s t are co m p le te ly beyond it s c o n tro l.

The purpose o f a fu e l adju stm en t p r o v is io n i s to en a b le a u t i l i t y to recover exce ssive in cre a se s in it s fu e l co sts a ris in g from causes beyond i t s c o n tr o l, as w e ll as to pass on to i t s custom ers sa v in g s due to d e cre a se s in i t s fu e l c o s ts . The im p o s itio n o f a li m i t a tio n on the fu e l adjustm ent p ro v is io n is in c o n s is te n t w ith t h is p u rp o se . P u b lic U t i l i t y Com m issions in a t le a s t 38 s t a t e s o th e r than G e o rg ia and th e F e d e r a l Poitfer C om m ission have ap p ro v e d f u e l a d ju stm e n t p r o v is io n s , and, as fa r as A p p lic a n t can a s c e r t a in , none has imposed a lim it a t io n on the amount o f the a d ju stm e n t. T h is Com m ission in i t s order dated February 19, 1970, in Docket No. 2145-U, w ith re sp e ct to A tla n ta Gas L ig h t Company, a u th o riz e d th a t company to adopt a "P u rch a se Gas A d ju stm e n t R id e r " p e r m it t in g th a t Company, w ith o u t li m i t a t io n , to re co v e r from i t s custom ers i t s in cre a se d p ip e lin e gas c o s ts .

hh-

Non-Docket

3.

A p p lic a n t, because o f the fo re g o in g fa c ts , a n tic ip a te s th a t the fu e l adjustm ent c a lc u la tio n s under form ula e s ta b lis h e d in D ocket No. 4 56-U w i l l soon exce e d ,0 3 5 c p e r KWH, F u r t h e r , t h e r e i s no p ro c e d u re th a t the a p p lic a n t can recover s u b s ta n tia l in cre a se d fu e l co sts except through fu e l adjustm ent charges to i t s custom ers.

A f t e r c a r e fu l c o n s id e ra tio n in t h is m a tte r and g iv in g due w eigh t to the in cre a se d c o sts o f fu e l used in the g e n e ra tin g p la n ts , a l l o f w hich a re beyond the c o n tr o l o f the Company, i t is the o p in io n o f th e C o m m issio n t h a t th e r e s t r i c t i o n o f ,0 3 5 c p e t KjtfiL. im posed upon th e Company in D ocket 1323-U be e lim in a te d fo r t h w it h and t h is o rd e r s h a ll so p ro v id e .

W herefore, i t is

ORDERED t h a t th e f u e l a d ju s tm e n t c h a rg e o f th e G e o rg ia Power Company as a p p lie d to i t s ra te sch e d u le s fo r e le c t r i c s e r v ic e and e ffe c tiv e w ith b i l l s rendered on and a ft e r J u ly 8, 1970, s h a ll be i n a c c o rd a n c e w it h th e F u e l A d ju s tm e n t R id e r , S c h e d u le !,Rn w it h o u t any lim ita tio n ,

ORDERED FURTHER t h a t j u r i s d i c t i o n o v e r t h i s m a t te r i s e x p r e s s ly re ta in e d fo r the purpose o f e n te rin g such fu rth e r o rd e r o r o rd ers as to t h i s C o m m issio n may seem m eet and p r o p e r .

3Y ORDER OF THE GEORGIA PUBLIC SERVICE COMMISSION, t h i s the 8th day o f J u ly , 1970.

A . 0 . RANDALL SECRETARY

W.

KIMBROUGH CHAIRMAN

SAVANNAH ELECTRIC AND POWER COMPANY
The rapidly increasing demand .for electric energy requires that utilities engage in a continuous and unprecedented program of massive construction in order to provide the additional power nec essary to meet the present and the future requirements of its cus tomers. As reported in 1969 Savannah Electric and Power Company continued its work on the kth generating unit at the Port Wentworth
Power Plant that will produce more than 1 2 6 ,0 0 0 kw of capacity for
the fast growing area served by Savannah in Chatham, Effingham, Bryan, Bulloch and Screven counties. The construction program of
the company required an additional investment of some $1 6 ,8 5 5 ,0 0 0
which included the new Port Wentworth Power Plant Unit. Plans are now on the drawing board that will provide an additional generating plant for the company's system which is scheduled for operation in 1975 and will be located in Effingham County,
In 1970 the company was serving 72,090 customers representing an increase of 1,170 over 1969. The average residential customer in
1970 used 9,210 kwh as compared to 8,300 kwh in 1 9 6 9 . This amount is
30$ above the national average. The average revenue decreased to 1.920
per kilowatt hour as compared to 1 . 9 M per kilowatt hour in 1 9 6 9 . The company had a total of 760 new all electric customers which now totals
^,211. The total kilowatt hour sales indicated a 9.3$ increase, while revenues increased some 11.3$ to a total of $2^,183,082. While the revenue increased, so did the operational and maintenance expenses for 1970. There was an increase of hQ.2% of each revenue dollar. The major factors causing the increase in expenses include higher pay scales, fuel costs and larger purchases of energy from Georgia Power Company through interconnections with that system. Further, higher peak demands required the operation of the new standby turbo-jet peaking units , as well as the operation of the less efficient units at the Riverside Plant. The overall cost per million BTU of fuel increased
from 28.80 in 19 6 9 to 32.J+0 in 1970. System peak load amounted to
336,500 kw in 1970 with company generating capability of ^12,000: kw.
In order to raise the necessary additional capital the company made application to the Commission for authority to issue and sell three million dollars in common stock and five million in preferred stock. The cost of additional capital continues to increase causing problems in trying to keep the rates down to a level that are just and reasonable for the consumers.
On June 8 , 1970, the company received approval from the Georgia
Public Service Commission to implement a fuel adjustment rider on its
retail rates, for Residential service schedule A-6 and A-6A; Water
Heating schedule E-l and General Service schedule B-7. The fuel adjust
ment rider was effective with bills rendered on and after July 1 , 1970.
The fuel adjustment rider approved is as follows:

>iIS?

rii io

i*to ''' $& j in u

;.t ^tbto ni
i*- d.;-` 9f!i co ii'so'w s i i

*I I

f& co iii& b is ixs `-.dxv a i r t.sri-'t friso

;xfw |?!9SY2 2*

. y ^ ' oO

ni ho

^ci-vir-U f|$'TW|fl^HWlXC{

. C'dQi i. . rfvX C0F,-;i

YBq

bilioni eaensqx n i or.?-

iSJO&B b
Yiiaqmoo rii Isiiijso

fcfrs

Xisv



.V ICL

io e 5 tanti

"The bill calculated at the above rate schedule shall be
decreased or increased 0 .0 0 0 6 $ per kwh used in that month for each whole half cent (1 /2 $) decrease below 1 5 $ or increase over 2 8 $,
respectively, in the weighted average cost per 1,000,000 BTU of all
fuel used during the next preceding month, including freight, storage
and unloading costs, as kept by the company under the uniform system
of accounts for electric utilities as prescribed by the Georgia Publi Service Commission."

LUvfi '

ATLANTA GAS LIGHT COMPANY

G e o rg ia c it iz e n s c o n tin u e d i t s demand f o r new gas f a c i l i t ie s and in c re a s e d th e usage o f such f a c i l i t i e s w hich as a r e s u lt , th e A t la n t a Gas L ig h t Company f o r th e f i s c a l y e a r 197 0 , t o t a l re v e n u e s re a c h e d a new pea k o f $11+9,007,000 o r a g a in o f $1 8 , 6 8 0
o v e r t h e p r e v io u s y e a r . T h is r e p r e s e n t s an in c r e a s e o f lk% o v e r th e
p ro c e e d in g y e a r. More tha n one h a l f o f th e revenue in c r e a s e was bro u g h t about by in c re a s e d s a le s o f gas. The rem ainder re p re se n ts re c o v e ry th ro u g h th e p u rch a se gas ad ju stm en t r id e r w hich was ap p ro ve d b y th e Com m ission on F e b ru a ry 1 9 , 1970 b e ca u se o f h ig h e r c o s t o f gas pu rch a se d b y th e Company from i t s p ip e lin e s u p p lie r s . F o llo w in g i s th e C om m ission' s o rd e r a p p ro v in g th e P u rch a se Gas A djustm ent R id e r w hich s e ts fo rth in d e t a il th e u n u su al circu m stances and the te c h n ic a l fe a tu re s o f the r id e r .

Fe b ru ary 19, 1970 F ile No. 19367
D o c k e t No. 211+5-U

In Re:

A p p lic a t io n o f A t la n t a Gas L ig h t Company f o r a u th o rity to a d ju st a l l o f it s ra te schedules by th e use o f a P u rch a se d Gas A d ju stm e n t R id e r w hich in c re a s e s o r d ecreases th e c o st t o the Company f o r p u rc h a se d gas from i t s s u p p lie r s re s u ltin g from re g u la tio n o f th e ra te s by the F e d e ra l Power Com m ission as w e ll as any changes i n f r a n c h is e paym ents made b y t h e Company.______

appearances
F o r A t la n t a Gas L ig h t Company:
A lle n P o st, A tto rn e y , A tla n ta , G eorgia A lb e r t G. Norman, J r . , A tto r n e y , A t la n t a , G e o rg ia
F o r the Com mission:
R. B. A lfo rd , D ire c to r, U t ilit ie s D iv is io n Frank G. H eald , C h ie f U t i lit ie s A u d ito r
BY THE COMMISSION:
On J a n u a r y 2 9 , 1 9 7 0 , A t l a n t a Gas L ig h t Company ( h e r e i n a f t e r som etim es r e f e r r e d t o as th e ''Company") a p p lie d t o t h i s Com m ission fo r a u th o rity to a d ju st a l l o f th e Company' s ra te schedules by the use o f a P u rch a se d Gas A d ju stm e n t R id e r ( h e r e in a f t e r som etim es r e f e r r e d t o as th e " R id e r " ) . The Company i s a G e o rg ia c o rp o r a tio n w hich is engaged in the d is t r ib u t io n o f gas in v a rio u s s e c tio n s o f

1+8-

Iv o iq c r^ M l .l fe l:

/ ys

fr& 'itfjto
$ i -J w .; V i :' .

i O '1 * S B ^ M l & ta a b f ^
s -j^ s o # %

, -;f ; -.V r. ;;).&SOSTt<*[

r j j ^ 483X

j j h &5 JE

.iS.SOTQ'fc * : fea&sr:2Kflfjfc tbBfv

MHHhH

HH

' 'rljJ^at S"; .'

li ititXiA to'?
aN m ^Mp|eligl^&>4 wBb ffllB^fratewrit

B8I#*C3
[# i 1'&S*Si?' tai/fJ o Jk*

Docket No. 23J+5-U

2.

th e S ta te o f G e o rg ia under C e r t if ic a t e s o f P u b lic Convenience and N e c e s s ity is s u e d by t h is Com m ission. The ra te s o f th e Company are re g u la te d b y t h is Com m ission. The R id e r w ou ld a d ju s t th e Com pany's ra te sch ed u les from tim e to tim e in o rd e r to r e f le c t in c re a s e s and d e cre a se s in th e c o s t o f p u rch a se d gas t o th e Company r e s u lt in g from re g u la tio n o f the rates o f it s p ip e lin e su p p lie rs by the Fed eral Power Com m ission. The R id e r w ould a ls o p ro v id e an a u to m a tic method w hereby re fu n d s w hich th e Company re c e iv e s from tim e t o tim e from i t s p ip e lin e s u p p lie r s w ou ld be p a sse d on t o th e Com pany's cu sto m e rs.

The Com m ission a ssig n e d th e m a tte r f o r p u b lic h e a rin g , commencing a t 2:00 P.M . on F e b ru a ry 1 1 , 1970, and d ir e c t e d t h a t a p p ro p ria te n o tic e o f the h e a rin g be p u b lis h e d in newspapers h avin g g e n e ra l c ir c u la t io n in th e a reas s e rv e d b y th e Company. N o tic e was a ls o g iv e n to the mayors o f each m u n ic ip a lit y s e rv e d by th e Company.

A t th e h e a r in g , w h ich commenced as s c h e d u le d , th e Company p re se n te d evidence th a t n o tic e o f the h e a rin g had been p u b lis h e d in accordance w ith the C om m ission's d ir e c t io n . The o n ly o p p o s itio n e x p re sse d a t th e h e a rin g was by two r e s id e n t ia l custom ers o f th e Company. The Company p r e s e n t e d t e s t im o n y and e x h i b i t s b y M r. W. L . L e e , The Com pany's p r e s id e n t , M r. N. Know les D a v is , a u t i l i t y ra te c o n s u lt a n t , and M r. M. R. K a y s , a v ic e p r e s id e n t o f th e Company. A b r i e f summary o f th e e v id e n c e f o llo w s :

A l l o f th e n a tu r a l gas w h ich th e Company d is t r ib u t e s is p u rch a se d from th re e p ip e lin e s u p p lie r s : S o u th e rn N a tu r a l Gas Company; South G e o rg ia N a t u r a l Gas Company; and T r a n s c o n t in e n t a l Gas P ip e L in e C o rp o ra tio n . The ra te s under w h ich th e se p ip e lin e s u p p lie r s s e l l t o th e Company are re g u la te d b y th e F e d e r a l Power C om m ission. The Company has th e r ig h t to in te rv e n e in ra te p ro c e e d in g s b ro u g h t by the se s u p p lie rs and seek to p re ve n t o r m in im ize th e ra te in c re a se s w h ich become e f f e c t iv e . Once th e F e d e r a l Power Com m ission has approved in c re a s e d r a t e s , how ever, th e Company must pay th e ra te s and n e it h e r i t n o r t h is Com m ission has any c o n tr o l o v e r th e m a tte r.

Each o f th e p ip e lin e s u p p lie rs have pending ra te in c re a s e p ro ceed in g s b e fo re th e F e d e ra l Power Com m ission. These in c re a s e s have been suspended under the p r o v is io n s o f th e N a tu r a l Gas A c t. How ever, th e in c re a s e s f i l e d by S ou thern N a tu r a l Gas Company w i l l become e f f e c t iv e on March 1 , 1970; th o se f i l e d b y South G e o rg ia N a t u r a l Gas Company w i l l become e f f e c t i v e on May 1 6 , 1970; and an in c re a s e f i l e d by T ra n s c o n tin e n ta l Gas P ip e L in e C o rp o ra tio n became e f f e c t iv e on Ja n u ary 1 , 1970.

The Company p re s e n te d e v id e n c e t o show t h a t i t c o u ld n o t absorb any p o rtio n o f the proposed in c re a s e s from it s p ip e lin e s u p p lie r s . Such e v id e n ce r e la t e d to th e Com pany's bond c o v e ra g e s, th e in c re m e n ta l c o s t o f money t o th e Company, th e e f f e c t o f i n f l a t i o n upon wage r a te s th e Company pays , as w e ll as th e c o s t o f p ip e and o th e r m a te ria ls and s u p p lie s w h ich th e Company p u rc h a s e s. Subsequent t o th e h e a rin g , th e Com mission review ed th e re p o rts on f i l e and i t was found th a t e a rn in g s are a t p re se n t n ot e x c e s s iv e .

_hQ~

- :

-,

:.

y*y .

' > cyJ/'t /"

O'. 2.J

oO

o a 1 p h v * & 6 r s p if ./ f o ia a

t & X & Q f 1 OTC 0 i

" : :



V,,- a s

o r li ... ' n d U q q p t I

: t *0

o v io ;

.0- J&lvoqo 0 8 H lo a *

t m o t'i g v l& 3 (n yrm<
, 8 t m o w o ' xanntfloO 0.: od n*'. 6p.sBq..ad' M jo v sT sX .lqq fcs

w n s

':K' , jDOiiStS 8 8B )0* (T b e id u q rx: c .U?r' ?vii./ rii O ooXiOl
Tino-orX . ne lira/: > s 'Xlois o la i

^'y r ^ t i v y bfta& B& l ; 'i-.vr `jo mbQ9&&

tt l o

,

'./i r Q | i '

.XI ,W . xK .e.iMXfta fcB ^rscsfaiiaai Itoinaifftqt ^ri8*gSo9

*'X<$IB05

e i w O ae...!.Von)5 1 ,xrM' tOnobfeoiq o'^^qiacC et

.^t<$3p0 sdi lo in^trxeooq ooiv $ 4

- .M .oM biu- ticx*ili/ooo

5 s i / / o i i a j .i > 'pipgjflJpD x x 'i toriv Ox.x Xexx -on Pi x "**'

... ' .r;>tr;i - :` JiXOo o ; i iq x s r ioxr a OC 'j won't . x

J&)3^i

Sh Kh 1

tT #'IK>iiogio

MRSI
N iW M PfM -VlN twIlfffl:l .d
BhhN$*Pb

: - i

EpHpjpiBSft

> J JOPfOXS

XXrv

WWN 0fJQlf

rp.p| se i 3

M W8B
;
ib

Docket No. 21^5-U

3.

The evidence showed that some 31 state commissions have authorized purchased gas adjustment clauses for gas distributors under their jurisdiction similar to the Rider involved in this proceeding. Such a provision provides for an adjustment, either upward or downward, in the rates for service to reflect changes which may occur in the cost of gas purchased for resale. Since the rates of pipeline suppliers are regulated by the Federal Power Commission, the Rider does no more than pass on to the ultimate consumer changes in the cost of gas (up or down) which the Federal Power Commission has found to be reasonable after extensive review.

Witness Davis testified that the Rider is patterned after that adopted and prescribed by the Pennsylvania Public Utility Commission on July 31, 1969* The Rider, in the form presented at the hearing, is stated in considerable detail in order to insure exactness in its application and operation. The derivation and operation of the Rider, however, are relatively simple. In ex plaining the Rider, the witness testified that a substantial portion of the total sales of the Company are on an interruptible basis which have a different cost of purchased gas than that for firm gas sales. Consequently, it was necessary to derive two purchased gas cost adjustments, one applicable to firm sales and the other to interruptible sales. The cost of gas for firm sales includes both the demand charge as well as the commodity charge paid to pipeline suppliers, while the gas cost for interruptible sales includes the commodity charge only. The demand charge is what the Company pays for the contract right to demand volumes of gas needed to supply the peak requirements of its firm customers. The commodity charge is the unit charge for all volumes of gas purchased. Since gas sold to interruptible customers is subject to interruption on peak days, no demand charge is associated with such sales. Due to these circumstances, the proposed Rider provides for the determination of a firm gas cost adjustment and an interruptible gas cost adjustment.

In order to derive these adjustments , the increase or decrease in cost of gas is separated into a demand component and a commodity component. The demand component is expressed in cents per
therm and is derived by dividing the increase or the decrease in the current demand cost of gas above, or below, the base demand cost of
gas by the firm gas sales in a 1 2 -month period preceding the change
in the pipeline's rates. The commodity component is derived by
dividing the increase or decrease in the current commodity cost above or below the base commodity cost by the total gas sales in the same
1 2 -month period.

Since the Company makes franchise payments to'numerous muni cipalities, it is necessary to reflect the increase or decrease in fran chise payments which Result from the gas cost adjustment, ana a franchise payment proportion iS' determined to accompolish this. This franchise cost represents the proportion of firm gas sales paid to municipalities or other governmental bodies for franchise rights. The adjustment applicable to firm gas sales is the sum of the demand component and the commodity component increased by the amount of the applicable franchise cost. The adjustment applicable to interruptible sales is simply the commodity component.
-50

5 '. .3-11 '

'

# i b

l d io c d t b ns
OiTtt/XoV f;.."^r
n !*
9< tC

esfu

no-labour xj- y X g m lc I i

^efd-T,'-1 " toi H>o ;

Docket No. 211+5-U

U.

The Rider also provides for a refund credit where refunds are received by the Company from its pipeline suppliers. When a refund is received, it is separated into the amount attributable to the demand charge and the amount related to the commodity charge. The franchise payment portion is also derived in the same manner as is done in the gas cost adjustment-- that is by assigning the sum of the demand refund and the commodity refund, adjusted for franchise payment, to firm sales and assigning only the commodity refund to interruptible sales. The effect of this Purchased Gas Adjustment Rider is to add to, or deduct from, gas bills no more, or no less, than the actual cost change in gas cost, as adjusted for franchise payments.

Witness Kays presented testimony and exhibits which further explained and illustrated the operation of the Rider. The alternative to the adoption of such a Rider would be a series of rate cases by the Company which will necessarily result in a considerable expenditure in time and effort by the Company.

The evidence shows that out of every dollar of revenue the Company receives, it must pay approximately sixty cents to its pipeline suppliers. Any increases or decreases in the cost of gas are therefore of critical and immediate importance to the Company and its customers.

By approving such a Rider, this Commission would not divest itself of any authority with respect to the rates of the Company. If at any time it appeared that the rates were excessive or that any par ticular increase might be absorbed by the Company, the Commission could intervene and require the Company to show why some particular increase should be passed on to its customers.

After full consideration of the evidence, we are of the opinion that the Rider proposed by the Company should be approved with the mod ification referred to below. The Company's net income or return will not be increased or decreased by the operation of the Rider, because any increase or decrease in the rates of the Company's suppliers will be offset by corresponding increases or decreases in the Company's rates. The Rider will also provide for an automatic method of passing on refunds which the Company receives from its suppliers. The operation of the Rider will remain under the continued surveillance of the Commission.

In the judgment of the Commission, the Refund Credit should not be spread over a 12-month period as provided in the Rider as submitted, but applied to the bills of customers in a lump sum. The Rider has been revised to incorporate this modification and a copy of the Rider with such revision is attached to this order.

FINDINGS
After full consideration of all of the evidence in this pro ceeding, the Commission finds as follows:

-51-

U-i^XS O!.' 3T;>1

"O- ab nul OT O--r

.#$ i

!" e>Hf

. ' !J!/ or 0 n-91^ f *?.0 i .Cacti?? :. a2J'. Q. XCf ' C*v X

h n s tn o h di o l I dr

h j 1 r iruo-

r t ICqno Jff fv.: r 0o m q o e ex 2 i. #fco v io s su

j o i n Orioni fT . e ^ i o rio \;1 i &0

tU c.t fes

Rie o d i .fine s& ffio

y n i snob e i y

jgp rr.d i . c b o v i? fi O2JL i n o iix o c f Oro,riye 0;

rri.flni fiannisfi orbi 'to

. : *

/ O f r: " . ; ridoni)

Ol firO 8

v i fiorar c . .:r ; or

. s o la s Iciicr

Vn i

^orr

-. irr ' : roo;

loubfi *to f o S fifir 0

jo. s i i t i l o i o e l l i

0 h 1 'T- ni? ro i eoo i ,

O tid

n e l 1 id sod . rso*tl

: ri"; s i eoo

ffx.j fjj'it'

i ; : n roo 1; ;1i

i OTL' i i fin-. -X

OS& '"OIf\i 1'. n i l ear1er i o.t j j
. ir o tro im o s i l fin
i e s v i f i don fi [no

Xixoo nolein/*oC c Sr itK t o lfrt

dv VO8 o. yn'.o'to oO srtd onijp
0 " t i o i no

ton ><J feXit

ra n oD 0f9T

:S&Xdfc do if 9^
sfi i , <Vi

f feoiilm cfi/B en n o b i^ c n li i t i S o b iv o n g er ficiTtrc; dinoxn ; n i v'scmo&zuo Q e X I id
rt!` lo vtroo .0 .6no noiirolllfion eirfi oi-nnoern

' v .

i o 1 1 b 1 <- r?- i 1 -*n

i i 32 - i

r enjoi `I d e r o r n i l nr i s b r cio 0 orti" g n ib

D ocket No. 21^5-U

5.

1. The Refund C r e d it sh o u ld n o t he sp re a d o ve r a 1 2 -month p e rio d as p ro v id e d in the R id e r as su b m itted at th e h e a rin g , b u t s h o u ld be a p p lie d t o th e b i l l s o f custom ers in a lump sum as s t a t e d in p a ragraph IV o f the P u rch ased Gas A dju stm en t R id e r , a copy o f w hich is a tta ch e d to t h is o rd e r.

2. The P u rch a se d Gas A d ju stm e n t R id e r , a copy o f w h ich i s atta ch ed to t h is o rd e r, c o n s titu te s the most p r a c t ic a l and e q u ita b le method f o r A t la n t a Gas L ig h t Company t o u t i l i z e in p a s s in g on in c r e a s e s o r decreases in i t s s u p p lie r s ' r a t e s , as w e ll as refu n ds re c e iv e d from such s u p p lie rs .

3. A t la n t a Gas L ig h t Company cannot absorb any p a r t o f th e a n tic ip a te d in c re a se s in purchased gas c o st from it s s u p p lie rs .

4 . S a id P u rc h a s e d Gas A d ju s tm e n t R id e r , s h o u ld be made a p a r t o f each o f th e ra te sch e d u le s o f A t la n t a Gas L ig h t Company.

WHEREFORE, IT IS

ORDERED: t h a t th e P u rc h a s e d Gas A d ju s tm e n t R i d e r , a copy o f w h ic h i s a tta c h e d t o t h i s o r d e r , i s h e re b y a p p ro v e d and th e same s h a l l be made a p a r t o f ea ch o f t h e r a t e s c h e d u le s o f A t l a n t a Gas L ig h t Company, e f f e c t iv e f o r m eter re a d in g s b e g in n in g on and a f t e r March 15, 1970.

ORDERED FURTHER: a p p ro p ria te re v ise d sheets evidence the a p p lic a b ilit y each such ra te schedule.

th a t A t la n t a Gas L ig h t Company s h a ll f i l e to each o f it s ra te schedules in o rd e r to o f s a id Purchased Gas A djustm ent R id e r to

ORDERED FURTHER: t h a t A t l a n t a Gas L ig h t Company s h a l l , fro m tim e to tim e , f i l e w ith t h is Com m ission th e com putations and in f o r m ation as p ro v id e d fo r in paragraph V o f such R id e r .

ORDERED FURTHER: t h a t A t l a n t a Gas L ig h t Company s h a l l f i l e w ith th e Com m ission th e amount o f such re fu n d re c e iv e d from i t s s u p p lie r and s h a ll pay such refund to it s custom ers w ith in t h ir t y (30) days o f th e date the re fu n d is re c e iv e d b y th e Company.

ORDERED FURTHER: t h a t A t l a n t a Gas L ig h t Company s h a l l show
on a l l custom ers ' b i l l s th e amount o f th e p u rch a se d gas a d ju stm e n t in cents p er therm .

ORDERED FURTHER: t h a t j u r i s d i c t i o n o v e r t h i s p r o c e e d in g i s e x p re ssly re ta in e d fo r the purpose o f e n te rin g such fu rth e r o rd er or o r d e r s as t o t h i s Com m ission may seem meet and p r o p e r .

BY ORDER OF THE GEORGIA PUBLIC SERVICE COMMISSION, t h i s th e 19 th day o f Fe b ru ary, 1970.

A . 0 . RANDALL, SECRETARY

W. H. KIMBROUGH, CHAIRMAN

f.. (

Sii* ' :

3.1 ':; ii.r;p~

rio ln l'i

!

'

f5E

i 11*3

$ lt >'0

W
|p|j|||^P
^MSPl* Kl
"'.:.WE1 C!H'f?.CHS J>
m g. 3



A I. . A G A S L I G H T C O M P A N Y

PURCHASED GAS ADJUSTMENT RIDER

I.

P ro v is io n fo r Adjustm ent

The ra te s p e r therm (100,000 B tu ) o f g a s, s e t fo r t h in a l l o f th e R ate Sched ules o f A t la n t a Gas L ig h t Company (th e "Company" ) s h a l l be in c r e a s e d o r d e c re a s e d b y an amount h e r e i n a f t e r d e s c r ib e d , w hich amount i s c a lle d th e "P u rch a se d Gas A d ju stm e n t".

II.

D e fin itio n s

" S u p p lie r s " -- the n a tu ra l- gas p ip e lin e com panies li s t e d in P a rt V I o f t h is R id e r , from w h ich th e Company p u rch a se s gas a t ra te s re g u la te d by the F e d e ra l Power Com m ission.

"Com putation P e rio d " -- the p e rio d u t i li z e d to compute th e e f f e c t upon th e Company o f in c r e a s e s o r d e cre a se s i n th e c o s t o f p urchased gas from th e S u p p lie rs , as w e ll as changes in F ra n c h is e Paym ents. Commencing as o f O c to b e r 1 , 197 0 , th e C o m p u ta tio n P e r io d f o r each P u rch ased Gas A d ju stm en t computed p u rs u a n t t o t h is R id e r s h a l l be th e tw e lv e month p e r io d e n d in g on th e la s t day o f a month w h ich i s no more th a n 62 days p r i o r t o th e d a te upon w h ich th e Company b e g in s t o a p p ly such P u rch a se d Gas A d ju stm e n t u n d er th e term s o f t h is R id e r. P r io r to O ctober 1 , 1970 th e Com putation P e rio d s h a l l be th e seven month p e r io d b e g in n in g M arch 1 , 19 6 9 and e n d in g September 3 0 , 19 6 9 .

" B i l l i n g D e te rm in a n ts " -- th e q u a n t it ie s o f gas demand o r o t h e r f i x e d maximums f o r w h ic h th e Company h a s c o n t r a c t e d w it h th e S u p p lie rs as o f th e end o f th e C om putation P e rio d * and th e volum es
o f gas ta k e n b y th e Company from th e S u p p lie r s d u rin g th e C om pu tation P e rio d .

"Demand C o s t" -- th e p ro d u c t r e s u lt in g from m u lt ip ly in g th e su n o f th e demand B i l l i n g D e te rm in a n ts b y th e u n it c o s t f o r such demand as s e t f o r t h in th e S u p p lie r ' s a p p lic a b le r a te s c h e d u le s .
"Commodity C o s t" -- th e p ro d u c t r e s u lt in g from m u lt ip ly in g th e sum o f th e volum es o f gas ta k e n b y th e u n it c o s t f o r su ch gas as s e t fo rth in the S u p p lie r's a p p lic a b le ra te sch ed u les.
" C u rre n t C o s t " -- th e Demand C o s t a n d /o r th e Com modity C o st o f gas p u rc h a se d b y th e Company from th e S u p p lie r s , a s c e r ta in e d by a p p ly in g (a) the B i l l i n g D eterm inants d u rin g th e Com putation P e rio d t o (b) th e ra te s o f each S u p p lie r w hich w i l l be in e f f e c t when the Company b e g in s t o a p p ly th e P u rch a se d Gas A d ju s tm e n t, computed p u r suant to t h is R id e r, to consumers' b i l l s .

II.

(C o n tin u e d )

"Base C o st"---th e Demand C o s t a n d /o r th e Commodity C o s t o f gas^ purchased b y th e Company from th e S u p p lie r s , d u rin g th e Compu ta tio n P e rio d , a sce rta in e d by a p p ly in g (a) the B il li n g D eterm inants d u rin g the Com putation P e rio d to (b) th e ra/tes o f each S u p p lie r in e f f e c t im m e d ia te ly p r i o r t o th e d a te l i s t e d o p p o s it e t h e name o f such S u p p lie r in P a rt VI o f t h is R id e r.

" S u p p lie rs ' Refunds"---the t o t a l o f a l l re fu n d s, in c lu d in g in t e r e s t th e re o n , re c e iv e d by th e Company from th e S u p p lie r s , as a r e s u lt o f the Company' s purchase o f gas d u rin g any p e rio d in w hich th e Company has a p p lie d a P u rch a se d Gas A d ju stm e n t t o b i l l s p u rsu a n t to t h is R id e r. Whenever a S u p p lie r' s ra te change re s u lts in a re d u c tio n in th e P u rch a se d Gas A d ju s tm e n t, b u t a d e la y o ccu rs betw een the e ffe c tiv e date o f the S u p p lie r' s ra te change and the a p p lic a tio n o f th e redu ced P u rch ased Gas A d ju stm e n t t o co n su m ers' b i l l s , th e Company w i l l determ ine th e amount o f th e re d u c tio n a p p lic a b le t o th e p e rio d o f such d e la y , and add i t to th e amount o f th e n e xt re fu n d re c e iv e d from any S u p p lie r.

Firm S a le s "-- the q u a n tity o f gas, expressed in number o f
therm s , b i l l e d t o f ir m cu stom ers o f th e Company d u r in g th e Compu ta tio n P e rio d .

T o t a l S a le s ''-- th e q u a n t it y o f g a s , e x p re s s e d i n number
o f the rm s , b i l l e d t o a l l c u sto m e rs o f t h e Company d u r in g th e Com p u ta tio n P e rio d .

F r a n c h is e Paym ent P r o p o r t io n " -- th e proportion ( e x p re s s e d as a d ecim al) o f th e Company' s revenues from fir m gas s a le s p a id to m u n ic ip a litie s o r o th e r governm ental b od ies fo r fra n c h ise rig h ts .

Com putation and A p p lic a t io n o f P u rch ased Gas A dju stm en t

The P u rch ased Gas A d ju stm en t s h a l l be computed t o th e n e a re st one-hundredth cent p e r therm in th e fo llo w in g manner:

The FIRM GAS SALES ADJUSTMENT s h a l l be t h e sum o f th e Demand Component (A d ju stm en t "A") and th e Commodity Component (A d ju stm en t "B ") m u ltip lie d by the Fran ch ise F a c to r (Adjustm ent "C "):

A: DEMAND COMPONENT-- th e q u o t ie n t o b t a in e d b y d i v i d i n g th e d if fe r e n c e betw een th e C u rre n t Demand C o st and th e Base Demand C o s t b y th e F ir m S a le s i n t h e Com p u ta tio n P e rio d .

B: COMMODITY COMPONENT-- th e q u o t ie n t o b t a in e d b y d i v i d i n g th e d iffe r e n c e betw een th e C u rre n t Commodity C o st and th e Base Com modity C o s t b y th e T o t a l S a le s i n t h e Com p u ta tio n P e rio d .

-5^-

(C ontinued) C: FRANCHISE FACTOR-- th e F r a n c h is e Payment P r o p o r t io n
p lu s one. The INTERRUPTIBLE GAS SALES ADJUSTMENT-- s h a l l b e t h e Com m odity >se t fo rth in "B" above. The above i s s ta te d a lg e b r a ic a lly below :
\ 1.00 + F
)
INTERRUPTIBLE GAS ADJUSTMENT
Where Dc = C u rre n t Demand C o st D^ = Base Demand C o s t C f C u rre n t Commodity C o st = Base Commodity C o st Sf. = F irm S a le s = T o ta l S ales F = F ra n ch ise Payment P ro p o rtio n
The r e s u lt in g P u rch a sed Gas A d ju stm en t so computed ( o r any a d ju s tm e n t w h ic h th e Company may e l e c t ) , i f r e s u l t i n g fro m an e in a S u p p lie r' s ra te s , s h a ll be a p p lie d to the b illin g s n m eter readin gs fo r gas s e rv ic e b e g in n in g no e a r lie r than
a f t e r the e f f e c t iv e date o f such in c re a s e t o th e Company. The r e s u lt in g P u rch a se d Gas A d ju s tm e n t, i f r e s u lt in g from
ase in a S u p p lie r' s ra te s , s h a ll be a p p lie d to b illin g s n m eter read in g s fo r gas s e rv ic e b e g in n in g no la t e r than 15 'te r the e f f e c t iv e date o f such re d u c tio n to th e Company.
-55

IV.

Refund C re d it

U n le s s o t h e r w is e d ir e c t e d "by th e G e o r g ia P u b li c S e r v ic e Com m ission:

W it h in 30 days a f t e r th e Company r e c e iv e s a S u p p l i e r ' s R efund, i t w i l l determ ine a Refund C r e d it by s e p a ra tin g th e refu n d s in t o Demand R efund and Commodity R e fu n d . The Demand R e fu n d and th e Commodity R efund s h a l l be th e change in th e Demand C o st and th e Commodity C o st r e s p e c t iv e ly w h ich e n te re d in t o th e d e te rm in a tio n o f th e Refund. Any refu n d s due t o th e F ra n c h is e F a c to r s h a ll be t r e a te d as a Demand R e fu n d . The R e fu n d C r e d it s h a l l be e q u it a b ly a p p o rtio n e d between firm gas s a le s and in t e r r u p t ib le gas s a le s as d ir e c te d by th e G e o rg ia P u b lic S e rv ic e Com m ission and s h a ll be c a lc u la te d to th e n e a re s t 1/100^ p e r therm .

The r e s u lt in g Refund C r e d it s h a ll be s u b tra c te d from the P u rch ased Gas A djustm ent ( i f such ad ju stm en t produces an in c r e a s e ) o r added to such adjustm ent ( i f such adjustm ent produces a decrease) th e b i l l i n g month a f t e r r e c e ip t o f such S u p p lie r ' s R e fu n d . I f th e t o t a l o f such Refund C re d its thus a p p lie d to custom er' s b i l l s d if fe r s from th e amount o f the S u p p lie r 's R efu n d , th e d iffe r e n c e s h a ll be s u b tra c te d from o r added t o th e re fu n d amounts s e t fo r t h above (acco rd in g to w hether such t o t a l exceeds o r is le s s than the S u p p lie r's Refund) when th e n e x t-e n s u in g R efund C r e d it i s computed under t h is R id e r.

V.

F i lin g w ith G e o rg ia P u b lic S e rv ic e Com m ission

The Company w i l l f i l e as d ir e c t e d b y G e o rg ia P u b lic S e r v ic e Com m ission (a) a copy o f each co m p u ta tio n o f P u rch a se d Gas A d ju stm en t o r Refund C r e d it , and (b) a sh eet show ing the amount o f th e Purchased Gas A djustm ent (n et o f Refund C r e d it s , i f any) t o be a p p lie d t o b i l l s and the date such a p p lic a tio n w i l l b e g in .

Any com putation and sheet re la te d to any change in the P u rch ased Gas A djustm ent o r t o a R efund C r e d it s h a ll be f i l e d w ith th e Com m ission w it h in te n days a f t e r th e com putation is com pleted.

V I.

L is t o f S u p p lie rs , and Rates Used in A s c e rta in in g Base Cost

T r a n s c o n tin e n ta l Gas P ip e L in e C o rp o ra tio n C D - I , GSS & LG -A - Decem ber 3 1 , 19 6 9

S outhern N a tu r a l Gas Company 0CD-3, AO-3 - March 1 , 1970

South G e o rg ia N a tu r a l Gas Company G -2 , 1-2 - March 1 , 1970

-5 6 -

Bi

HBl
,

H b - `iftfiS

c*of[oO i?n '

$Im | H|||hH .

H hB i : :; >* / ri iiw ( t :i ;1. ;j H

S'JI^tO

r v ; , eu. t,bA

t s a r n V ir q l o ^ ii^ tu q m o o ra*o l o vrec .0 U?) n a is e ir a o O

i b o a p i v i l - t Ito .t;;,;'rl.r gaxwor'a

.n :i0 fct?

ray'teH to

HBttfitdi "to

1

HPM



; ili ;.'.

gKiji' jy<jpr

H h - ^k

'

The average number of customers increased from 586,135 to 603,59*+ at the close of the fiscal year 1970. This represents an overall increase of 17,1+59 customers. Of the total customers during
the year, there were 5 5 5 ,2*+8 residential customers who used an average of 121+6 therms costing $12 *+ .8 8 for an average cost per
therm of 100. This is a slight increase over the previous year due principally to the increase cost of gas experienced by the Company.
Operating revenues for the fiscal year 1 9 7 0 were $11+9,007,086.
Of this amount, $11+8,892,579 came from sales of gas, an increase of lh% over the preceding year. Of the total revenues from gas sales,
residential customers accounted for 1+7 %, commercial customers 1 5 %,
industrial customers 37%, and public authorities 1%. Operating expenses
increased and total operation and maintenance expenses for 19 7 0 were $121+,270 ,01+5, for an increase for the previous year of $2 1 ,1+1+8 ,5 7 1 * Of the total expenses , 7 8 % was cost of gas, 19% other operation
expenses and 3% maintenance expenses. The average cost of gas per
therm to the Company was 3.70 in 1 9 7 0 as compared to 3.30 in 1969, or
an increase of more than 12%. Interest expense on long term debts
rose to $1,326,038, reflecting interest on the $2 0 ,0 0 0 ,0 0 0 of 9-1/8% First Mortgage Bonds sold in December, 1 9 6 9 . Net income declined by $2 ,1+7 9 ,0 0 0 , principally because of the rise in interest in borrowed
money and higher operating cost resulting from the inflationary spiral.
Therefore, the net income applicable to common stock was only $1 . 0 1 per share, a decline of $0 .6 0 from the previous year.
Construction expenditures during the 1 9 7 0 fiscal year totaled $1 6 ,9 6 0 , 108. Of this amount, approximately 77% was for gas mains, service lines, meters and regulators, 1 0 % for data processing equip
ment and the balance for general improvements and new equipment. Construction expenditures for the 1971 fiscal year are estimated at $22,320,000 and some $5,600,000 for underground storage and the liquefied natural gas plant to be constructed near Atlanta for the
purpose of assuring an adequate gas supply for the 1 9 7 2 - 7 3 winter.
The total cost of this plant is expected to be approximately $12,000,000. During warm weather, natural gas from Company suppliers will be cooled to a liquid state reducing it to l/600th of its original volume. It will be stored in a cryogenic tank until required during winter weather. When needed it will be vaporized and sent back into the system to meet peak loads.
The Company has long term contracts with its three natural gas suppliers for maximum daily deliveries of 820,739 Mcf. These
consist of firm service from Southern Natural Gas Company of 70*+,539
Mcf per day, from Transcontinental Gas Pipe Line Corporation of 107,600 Mcf per day and from South Georgia Natural Gas Company of 8,500 Mcf*per day. They also have contracts for peak-shaving service from Trans continental underground storage service of up to 5,823,600 Mcf annually at a daily rate of up to 115,800 Mcf, for liquefied natural gas of 26,000 Mcf per day during the period from November through March up to a maximum of 130,000 Mcf for the season and for peaking service of
i+,500 Mcf per d&y for thirty days, and annual total of 'l35 ,000 Mcf.
-57-

%g '
r V f 'L

-

1 M^eC-

I C

!0j5 ;

' 4

gp

:

:*T 0

A. $

al 4

si.'rfs Tsq

MW

The Company maintains eight peak-shaving plants which supply propaneair gas to our system to supplement the gas supply in very cold r a t h e r or in emergencies. Storage capacity of these plants is ^jO^ljOl+O gallons of liquefied propane. The maximum daily gas-making capacity totals 19^,5^0 Mcf of natural gas equivalent but the number of days that full capacity can be maintained without replacement of liquid propane varies from 3 to 9 days, averaging 5.6 days. The rates under which the Company purchases gas from its pipeline suppliers may be changed at any time upon approval of the Federal Power Commission acting under the provisions of the Natural Gas Act. During the past year, a number of applications for increased rates have been filed by the three pipeline suppliers. A significant increase in the cost of gas went into effect on March 1, 1970. In view of this sit uation the Company intervened before the Federal Power Commission and the Georgia Public Service Commission likewise intervened in order to keep the cost of gas at the lowest possible level.
Because of decreased earnings , the Company was forced to make application to the Commission in September, 1970 for permission to make a general revision in the rate schedule. The main feature being
an increase of approximately 1 0 $ in annual revenues based on a test
year ending June 30. According to the application, the new rate
schedule would provide an increase in rates of some $1 ^,9 ^8 ,0 0 0 .
Hearings were scheduled for November 1970 and will probably terminate in January, 1971, where a decision by the Commission subsequent to this date, will be made.
-58-

I a

/ / - I i rjj io n i l o t

oqu a ra li

ii*

c iio ia iv r i'i o u i t^ bnu a a ijp r. no/?

B rto ii o iX g q

.siofcof 9f snpte

iQivi $S *.

;/rn o ; l-

gj-W ^fUB^KoO "

(, ISO -INMBJSCf ltJVl i> ttO
ri o i.I ./o
tos"to J i

GAS LIGHT COMPANY OF COLUMBUS
PROPERTY ADDITIONS
Requirements for facilities to serve 1 ,8 3 ^ new customers were significantly greater than last year when only 1,16h were served. Con
struction expenditures for new customer facilities-main and service lines,
meters, regulators, etc., amounted to $3 6 2 ,9 9 7 or 75 percent of the total
expenditures for new construction. The number of mobile homes served, also
showed a sizable increase over the previous year-5 8 9 as compared to 2 0 0 .
The increase in the number of new dwellings under construction and re quiring gas service appears to be mostly in low-and-moderate-income housing built under the FHA 235 program.
SALES AND REVENUES
The total quantity of gas sold was down slightly from last year. All of the reduction was in industrial sales and resulted principally from curtailment of interruptible sales during the unusually cold weather in January of this year. The quantities of residential and commercial sales showed small increases reflecting the greater average number of customers served during the year.
Total actual revenues from residential, commercial, and indus
trial sales were $7 ,7 1 9 , 5 5 3 in 19 7 0 as compared with $7 ,2 8 U ,0 0 6 in 1 9 6 9 .
STATISTICAL INFORMATION
Total employees1 pay and benefit expenses were $1,357,076 in
1970. This amounted to an increase of 9 percent or $112,189 over the previous year. The total number of employees for 1970 was 197 showing
an increase of slightly more than 2 percent over 1 9 6 9 .
Real and personal property taxes were up $17,252 over last year due to annexation of a large part of Muscogee County by the Citv of Columbus , but a reduction in income tax of 18.2 percent was due to lower taxable income and to the lower surcharge rate applicable to Fed eral income taxes.
Earnings available for common stockholders declined from $2.3^
per share in 19 6 9 to $1 . 9 6 per share in 1 9 7 0 , due to the continued trend
of higher expenses which were not matched by additional revenues during the year.
59

.' '>0

1 sr.i

*l 1


Vd.;0 pifi
affim a v a C O M 'r

AB , I 0*OfflS!O0 , la i



i ) tf-'iw

W IM S!K

' -:

.m m *
W Sm m M

H H ";

* i & X b u o v &$i$ ; 9'iom v;.r*d$ i :r3


tiiXo^ife a i aisXorfX'So8 riD/two-.i loft. &jL&,Ibvb fi^iiicrusS '

RATE ADJUSTMENT
On January 19, 19TO, Gas Light Company of Columbus filed with the Georgia Public Service Commission an application for authority to adjust all rate schedules to offset the increased cost of gas from Sou thern Natural Gas Company. The application was assigned for hearing on February 11, 1970 and following is such order issued by the Commission authorizing increased rates. When the Federal Power Commission issues its order in the rate application of Southern Natural Gas Company, it is anticipated that some reduction will be made in wholesale rates under which Gas Ligiht Company of Columbus purchases its gas supply. Further, there is a possibility that a settlement might be reached between the parties of interest which would bring about a reduction in the cost of gas to the Company, in which case refunds would have to be made to the Company under direction of the Federal Power Commission. When refunds are received, these are reported to the Commission and direction is given to the Company as to the method of making such refunds to its customers.

February 19, 1970 File No. 19^62
Docket No. 21UU-U

In Re:

Application of Gas Light Company of Columbus for authority to adjust all rate schedules to offset the increased cost of gas from Southern Natural Gas Company_____________________________________

APPEARANCES

For the Company:

Howell Hollis, Attorney

Jack A. Bell, President

S.

C. Bishop, Vice President and Treasurer

For the Protestants:

Captain Richard A. Peterson, Attorney for The Judge Advocate General, representing the Executive Agencies of the Federal Government

For the Commission:

R. B. Alford, Director Utilities Division Frank G. Heald, Chief Utilities Auditor

BY THE COMMISSION:

On January 19, 1970, Gas Light Company of Columbus (hereinafter referred to as "Company'') filed an application with the Commission requesting authority to increase its rates for natural gas service by reason of an increase in the cost of natural gas sold to the Company by Southern Natural Gas Company (hereinafter referred to as "Southern"). The application seeks
-60-

5 *10 a n j isjTjj *

. * :> ric u '-i

s d i n o o w io

lo

i a o o c r i s .#i; 1' tjffl

B J f O .t 3. -

m

u



al

,o l i o t p & i O xQ x

'- Q i p f o d i I I j b ; a u t c
a* , . C I v i d *i n d : v n

llP f J

T I > c .* -h k -

lo ' :)V' 1, S O 9 7 s-, j r a f f i o . i '

fvlioj; .ei

jOzYc .,;j sciborio 8 D&rir IX

o.r YtiioilD

ir*rjul

i::l' c-:yii apn , dod ;

e

wH

#E1 IU loch

OiesiiTfoD odi



.

>xlqxp

'00 &0**olDI

i $s #m

gtJQ XB'U

vteo^

al ex e -D

'^fisiod) veLamoO suso

Docket No. 2lkk-U

2.

an increase in rates equal to the increase in cost of gas .purchased from: Southern plus additional cost of increased gross receipts taxes and increased public liability and property damage insurance premiums directly related to the revenues of the Company. The application further shows that the re quested increase in the Company's rates is for interim protection only and that if the increased rates of Southern are changed by order of the Federal Power Commission, then the Company will reduce its rates and will pass on to its customers such amounts of said reduction as the Commission shall direct.

The application was assigned for hearing on February 11, 1970, when it was heard, and at this time, direct testimony and evidence was given by witness for the Company. It appears that Gas Light Company of Columbus pub lished proper notice of the time, place and purpose of the hearing as direc ted by the Commission in The Columbus, Georgia Ledger.

At the hearing, Captain Richard A. Peterson made an appearance and protested the Company's application on behalf of the Executive Agencies of the Federal Government. Subsequent to the introduction of testimony and evidence and cross-examination of witness for the Company, the Commission at the request of the protestants, continued the hearing for February 20,
1 9 7 0 , for the purpose of permitting additional time for the preparation of
evidence and cross-examination ..in this proceeding. However, on February 17 the Commission received a telegram from Curtis L. Wagner, Jr., Chief, Regu latory Law Office of The Judge Advocate General, Department of the Army, wherein protest, as filed on February 10, was withdrawn without prejudice and specifically reserved the right to again protest the involved rates, should such appear necessary, after final decision in Southern's proceeding before the Federal Power Commission.

According to the evidence, Gas Light Company of Columbus purchases its supply of gas for distribution from Southern, a pipeline company having its prinicpal place of business in Birmingham, Alabama. On August 15, 1969, Southern filed new rate schedules with the Federal Power Commission reques ting an increase in the rate at which gas is sold to Gas Light Company of Columbus. The proposed new rate schedules were suspended by the Federal Power Commission for the statutory period and will become operative under bond on March 1, 1970, as provided by Section 717c of the Natural Gas Act. On November 1^+, 1969, Southern filed further proposed rate changes with said Commission based on the filing of proposed increased rates by its supplier, United Gas Pipeline Company, on October 31, 1969, in Federal Power Commission Docket EP70-13. The rate schedules filed by Southern provide for additional increases in the cost of gas to its customers , including Gas Light Company of Columbus. United Gas Pipeline Company's new rate schedules were suspended
by the Federal Power Commission to May 1 6 , 1970, and Southern's new rate
schedules were suspended to the same date. The cost of natural gas purchased by the Company in fiscal year ending August 31, 1969, amounted to $3,950,3^+1
or 7 2 % of total operation and maintenance expenses .
The record shows that the said filed increase- rates of Southern, effective March 1, 1970, will increase the Company's overall cost of gas by
$8 6 9 ,3 0 0 or 2 2 %, and the cost of natural gas purchased will be further increased by $U2,601 or 1% as a result of the increase in Southern's rates
based on United Gas Pipeline Company's increased rates when made effective.
-6 1 -

*x 1 b a m ; *

>J"JLsilJ saro-nl J
'yfcm&lb y f s q & f Q

##''?<

T Q :. !

X S H t O S "T O a i t & l .. '.V ; t l ? 3 l O S U /O fl!

f i l S ' ` X

no :;

.'isjidJ j^i o s O ,.ajcinti{qVj cuitt ni noiko feilet0 aria vy
.iJ H |

*tq ni

qmoo

onil.s

3 .<*\ <**" B

BIIbKIwpHI
: h O e n a i o n i r o o . V' y
r .;
r .& A k l ^ j q a w g l l
jbfsfcSrfriTtiq

ro a :

.'

:-: .

feoo

sd ; ni



D o ck e t No. 2lkk-\J

3.

H*7hen t h e s a id in c r e a s e d c o s t o f gas i s r e f l e c t e d i n th e Com pany' s r a t e sch e d u le s, the annual gross re c e ip ts from s a le o f s a id gas are in c re a s e d , r e s u lt in g in a tte n d a n t in c re a s e s in fra n c h is e ta x e s and in su ra n c e prem ium s, th e co st o f w hich is based upon s a id gro ss r e c e ip t s , and th e proposed ra te sch e d u le s must be amended t o r e f le c t th e se a s s o c ia te d c o s ts .

In support o f the a u th o rity requested in the a p p lic a tio n , the Company p re s e n te d in e v id e n c e e x h ib it s 1 th ro u g h 9 , as f o llo w s , and w itn e s s f o r th e Company t e s t i f i e d in s u p p o rt o f th e d a ta s e t f o r t h on th o s e e x h ib it s .

E x h ib it 1

Increase in O p e ra tin g Expenses R e s u ltin g from Proposed In crease in Cost o f Purchased N a tu ra l Gas, Based on D ata fo r F is c a l Year Ended August 31, 1969

E x h ib it 2

In cre a se in C o st o f P u rch a se d Gas R e s u lt in g from In cre a se P ro
posed by S ou thern N a tu r a l Gas Company to become e f f e c t iv e March 1 , 1970, Based on Purchases fo r F is c a l Year Ended August 31, 1969

E x h ib it 3

S a le s and Revenues, A c tu a l, and as A d ju ste d to R e fle c t Proposed
Rate in c re a s e to become E f f e c t iv e March 1 , 1970, fo r th e F is c a l Year Ended August 31, 1969

E x h ib it H

Com parison o f Propo sed In c re a s e in Revenues w ith P en d in g In cre a se in O p e ra tin g E xp e n se s-- b y M o n th , B ased on D a ta f o r F i s c a l Y e a r Ended August 31, 1969

E x h ib it 5

Income Statem ent f o r th e F is c a l Y e a r Ended A ugust 31, 19&9, A c t u a l, and as A d ju s te d to R e fle c t P ending In cre a se in O p e ra tin g Expenses and Proposed In crease in Revenues

E x h ib it o Proposed R e v isio n s in Rate Schedules

E x h ib it 7 E x h ib it 8

E ffe c t o f Proposed In cre a se in R ates on Average R e s id e n t ia l C u sto m er, F o r th e F i s c a l Y e a r Ended A u g u st 31, 19&9
Balance Sheet as o f August 3 1 , 1969

E x h ib it 9 Statem ent o f Income f o r th e F is c a l Y e a r Ended August 3 1 ,'1 9 6 9

A fte r c a re fu l c o n sid e ra tio n o f t h is m atte r, i t is the o p in io n o f th e Com m ission t h a t th e a u th o r it y re q u e ste d b y th e Company t o a d ju s t a l l o f it s ra te schedules to o ffs e t the in c re a s e d co st o f gas purchased from S o u th e rn N a t u r a l Gas Company, as w e ll as t o o f f s e t o th e r known in c r e a s e d expenses a s so c ia te d to the s a id in c re a s e in c o st o f gas sh o u ld be approved, s in c e th e re c o rd shows t h a t p re s e n t e a rn in g s o f th e Company are n o t s u f f i c ie n t to absorb such in cre a se d c o sts.
W herefore, i t is

ORDERED: t h a t t h e r a t e s f i l e d b y Gas L ig h t Company o f Colum bus i n t h i s m a tte r s h a l l be th e maximum r a t e s f o r th e c la s s e s o f s e r v ic e ind^ -- cated th e re in .

I-..

.
te asg 1eo i - ~r.iqi;
li 'CJ0 , QjStSp

hH

- t5
8:

' " *

o ' o c scf oJ'

HHHh h HG

H H !'
Y-:. . ;Y'*-: `.

H



'

gg ' ^)U|wMm|



HHm H

Y Xe

iifi P illili

H ra

ME

$e,'%u fealfiiSf

4 4 i t i x ,a

>58 01

:ji 'y j oy:l

I tiy ,

o Sj&q.&% di: ' '' 8 J.fc ,`^jjr:

'

Docket No. 21^-U

k.

ORDERED FURTHER: that the revised rate schedules shall become effective on bills based on meter readings made on and after March 3, 19T0.
ORDERED FURTHER; that the rate increases herein authorized shall be subject to refund by Gas Light Company of Columbus to customers from whom the same shall be collected, but only in the amount and to the extent that the increase in rate established by Southern Natural Gas Company may hereafter be set aside, reduced or otherwise modified.
^ORDERED FURTHER: that Gas Light Company of Columbus shall, within thirty (30) days from the effective date of any reduction in cost of gas from its supplier, file revised rate schedules reflecting such decreases.
ORDERED FURTHER: that the Gas Light Company of Columbus shall file with the Commission the amount of such refund received from its supplie and shall pay such refund to its customers within thirty (30) days of the date the refund is received by the Company.
ORDERED FURTHER: that jurisdiction over this matter is expressly retained for the purpose of entering such further order or orders as to this Commission may seem meet and proper.
BY ORDER OF THE GEORGIA PUBLIC SERVICE COMMISSION, this the 19th day of February, 1970.

A. 0. RANDALL, SECRETARY

W. H. KIMBROUGH, CHAIRMAN

scODsd 1 Ciara s u b i ff9s --

1 :v<. . . " *r

?m $ t i b:ari i et oe

/j1riT>u^ ^Qg'ggflt;

XXsra feesJrtorfiyjp l l t s i se

ta lli

! OES3HCI?

r in

..

Xod

,o o u io i t abie^

X a so;tic5r .-f i J t&O i 1. * ^SlfT^. GSH&C

i to icnegmoD jtagJU *t tXarwa .: i s ro il >v s o >i f> .o le i rot/s io njoffin o lii iioXJbsnoO o d i $&
o rf Jo syb (0 6 ) '
V1.8291 erX :' ai i :r fr:t 8 i. :J,r
cord"xtrl rotf a g a i i s t ite

DIRECTORY 0 F
G E O R G IA TOWNS AND C I T I E S s E RV E D WI T H NA T URA L GA S
PREPARED BY GEORGIA PUBLIC SERVICE COMMISSION AS OF MARCH 5 , 1970

.
H T i v; c S V H a 8
7:X 3LT.
HOtaaiMMOo 3 DIVHT8 aij&jq Aioaoao

CITY
Acworth Adairsville* Adel Ailey Alamo Albany Aldor Allenhurst Allentown Alma Alpharetta Alto Americus Arcade Ashburn Athens Atlanta Auburn Augusta Austell* Avera Avondale Estates
Bainbridge Baldwin Ball Ground Barnesville Baxley Bellville 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

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

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

CITY
Canton Carl Carlton Carrollton Cartersville* Cave Spring Cedartown Centerville Chamblee Chatsworth Chester Chickamauga Clarkesville Clarkston Claxton Cochran Colbert College Park Columbus Comer Commerce* Conyers Cordele Cornelia Covington Crawford
Crawfordville Cumming Cuthbert
Dacula Dahlonega Daisy Dallas* Dalton* Danielsville Danville Darien Dawson Dearing Decatur Demorest Dexter Doerun Doraville Douglas Douglasville Dublin* Dry Branch Dudley Duluth

OWNERSHIP OF SYSTEM

SOURCE OF NATURAL GAS

Atlanta Gas Light Company Municipal Atlanta Gas Light Company 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 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

Transcontinental Transcontinental Transcontinental Southern Southern Southern Southern Southern Southern Southern Southern Southern Transcontinental Southern Southern Southern Transcontinental Southern Southern Transcontinental Transcontinental Transcontinental South Georgia Transcontinental Transcontinental
Transcontinental Transcontinental Transcontinental South Georgia

Municipal (Buford) Atlanta Gas Light Company Municipal 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

Transcontinental Transcontinental Southern Southern Southern Transcontinental Southern Southern South Georgia Southern Southern Transcontinental Southern South Georgia Southern South Georgia Southern Southern Southern Southern Southern

CITY
Eastman East Point Eatonton* Elberton (Ellaville) Emerson Empire* Eton 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) Hagan Hahira Hampton Hapeville Harlem Harrison Hartford Hartley Hartwell Hawkinsville

OWNERSHIP OF SYSTEM

SOURCE OF NATURAL GAS

Atlanta Gas Light Company Atlanta Gas Light Company Municipal Municipal Municipal Atlanta Gas Light Company Municipal (Cochran) Atlanta Gas Light Company Atlanta Gas Light Company

Southern Southern Southern Transcontinental South Georgia Southern Southern Southern Southern

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

Southern Southern Southern South Georgia Southern Transcontinental Southern Southern Southern South Georgia East Tennessee Southern Transcontinental

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

Transcontinental Southern Southern Transcontinental Southern Southern Southern Southern Southern Transcontinental Transcontinental Southern Southern Southern

Municipal 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

Southern Southern South Georgia Southern Southern Southern Southern Southern Southern Transcontinental Southern

^' *>;

upp

X&&X...

lqluXWM

#4 M

!

v jirsuc,?, l3fioo&iienT

a0 '3m * yojtqfBoO le n it i

IKMI affili ; aite^ilS
r;A ;?.f,)3` 3jf'C

sHhUIlMB%

. :li V

H H H w H p t d '3 >y/ ; Ih}1 i'te 'i

i s i i i 4^(p^a0!s*iiX >.t*1>ii\;) h"<5

^l|qinoCf

} s i itili 2A ,

in vq!:;nO l.d:i I

... il

* ^jb<>3 lila W

' .

XttBqsno'C

I) f tiq i: `j nu% EB0 nrO ni n?

( irin o i ; > ,>i;johb&.H

in&fit3aQ&tt&"tT

Xtt&qtttoD yfrfqiaK&* 3tifisiXJ

@.s ' MMH09R4t!i

CITY
Hazlehurst Helena Hephzibah Hinesville Hogansville Holly Springs Hoschton Hull
Ila Irwinton
Jackson Jasper Jefferson Jeffersonville Jesup Jeonsboro
Kennesaw
LaFayette LaGrange Lake City Lavonia Lawrencevilie* (Leesburg) Lexington
Lilburn Lithia Springs Lithonia Loganville Louisville* Ludowici Lula Lumber City Lumpkin Lyons
Mableton Macon Madison Manchester* Marietta Martin Maxeys
Maysville McDonough McIntyre McRae

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 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 (Toccoa) Municipal Municipal Municipal (Greensboro-Union
Point) Atlanta Gas Light Company Municipal (Austell) Atlanta Gas Light Company 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 (Greensboro-Union
Point) Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company Atlanta Gas Light Company

SOURCE OF NATURAL GAS
Southern Southern Southern Southern Southern Southern Transcontinental Transcontinental
Trans con tinenta1 Southern
Southern Transcontinental Transcontinental Southern Southern Southern
Southern
Southern Southern Southern Transcontinental Transcontinental South Georgia
Transcontinental Transcontinental Southern Transcontinental Transcontinental Southern Southern Transcontinental Southern South Georgia Southern
Southern Southern Transcontinental Southern Southern Transcontinental
Transcontinental Transcontinental Southern Southern Southern

CITY
Meigs Milledgeville Mi lien ****Milner Monroe Montezuma Monticello* Montrose Morrow Moultrie Mountain Park Mountain View Mount Airy Mount Vernon Mount Zion
Nashville Nelson Newnan Norcross Norwood (Ochlochnee) Ocilla Oconee Odum (Omega)
Palmetto Patterson Payne City Peachtree City Pelham Pembroke Pendergrass Perry Pine Lake Plainsville Pooler Porterdale Port Wentworth Powder Springs
Quitman
Ranger Reidsville Reme rton Rentz Rest Haven (Reynolds) Richland Richmond Hill
****Molena

OWNERSHIP OF SYSTEM
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 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 Municipal Municipal 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

SOURCE OF NATURAL GAS
South Georgia Southern Southern Southern Transcontinental South Georgia Southern Southern Southern South Georgia Transcontinental Southern Transcontinental Southern Southern
South Georgia Transcontinental Southern Southern Southern South Georgia South Georgia Southern Southern South Georgia
Southern Southern Southern Transcontinental South Georgia Southern Transcontinental Southern Southern Southern Southern Transcontinental Southern Southern
South Georgia
Southern Southern South Georgia Southern Transcontinental South Georgia South Georgia Sou them
Southern

CITY
Rincon Ringgold Riverdale Roberta Rockraart Rome Roopville Rossville Roswell Royston
Sandersville Savannah Screven Sharon Sheliman 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 Ta lmo Taylorsville Temple Tennille Thomaston Thomasville Thomson* Thunderbolt Tifton Tignall Toccoa* Trenton

OWNERSHIP OF SYSTEM
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
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 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

SOURCE OF NATURAL GAS
Southern Southern Southern Southern Southern Southern Southern East Tennessee Southern Transcontinental
Southern Southern Southern Southern South Georgia Southern Southern Transcontinental Southern Southern Southern Southern Southern Southern Transcontinental Southern Southern Southern Transcontinental Southern Southern Southern Southern Southern Southern South Georgia
Southern Southern Transcontinental Southern Southern Southern Southern South Georgia Southern Southern South Georgia Southern Transcontinental Southern

CITY

OWNERSHIP OF SYSTEM

SOURCE OF NATURAL GAS

Trion Twin City Tyrone

Municipal Atlanta Gas Light Company Atlanta Gas Light Company

Southern Sou the rn Transcontinental

Unadilla Union City Union Point* Uvalda

Municipal Atlanta Gas Light Company Municipal Atlanta Gas Light Company

South Georgia Southern Transcontinental Sou t h e m

Valdosta Vidalia Vienna Villa Rica

Atlanta Gas Light Company Atlanta Gas Light Company Municipal Municipal

South Georgia Southern South Georgia Southern

Waco Walnut Grove Warner Robin Warrenton Washington Watkinsville Waycross Waynesboro West Point Whitehall Whitesburg Winder Winterville Woodbury Woodland Woodstock Woodville Wrens Wrightsville

Atlanta Gas Light Company Municipal (Lawrencevilie) 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 Municipal Atlanta Gas Light Company Municipal Municipal Atlanta Gas Light Company

Southern Transcontinental Southern Southern Southern Transcontinental Southern Southern Southern Southern Southern Transcontinental Transcontinental Southern Southern Southern Transcontinental Southern Southern

Zebu Ion

Atlanta Gas Light Company

Southern

Municipally-owned systems thus marked served 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 jurisdiction 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 - East Tennessee Natural Gas Company

(Butler): Parenthesis marks indicate proposed systems in the South Georgia Natural Gas Company network. These cities will be served by July, 1971.

i.:''

UOE

;

4n! | M a 3 ' a i A

Vi *

? r'D i.J "-".O B i f f " ! . 1, '

>)"tOOJl ft J . ^'SMI J io t '
n T M ! t u o ci

. r S U 8f? iiiX-n-fiXi A
HHBBH t M ta tta M M W fe a iJ 0 ^ f J

11



IRRE . m h U i

JKfP ftd'B ldfift . X q i o i *: M C 1 -il

lm :i i ;0 il io i0 ii T ( ? X $ o t a o a g a a i T <

X iqfi a X iii tM m m o S ' ffllJ et'JttaXtA

; J-n i :>n o o a r t f n T

y fi q m o D ir f g - t J :: . pJ - '. : '

iio a li O '?

' q fioD ;; r iq i I " :;C ;

'.

^ g tsted lu o

x n q i& o Q .I fe iJ U f

j s e ^

e u Q i n i b vi0 8 i
fio i ti ' : .; ;>fj ' y ' .;

, :v

!:c i i Too onf;

iJjijpfo ifw

r; i ;.H vatf<M jjw #i^X t & ir f H M u o o

7-.-f i 0 a i . i '.' stirt'^ '
0 -;"i ft fctt * ;`n.!o::ri r -o in U
a JtX ab iV >1V
Im B b gggpJhBW U f- qjkdefeW
j| [ f| | | p H iin T f
' rfH & M
t i v &o oyi

, l f - f O

g a J

.

M M iK!
* M

t fS O ^ C ' t v ;

GAS PIPELINE SAFETY
As in 1969, the Office of Pipeline Safety, on March 17, 1970, accepted the Section 5 (a) certificate submitted by the Commission for the annual period ending December 31, 1970. In addition, an agree ment with OPS was reached which provides a means for having all intra state gas pipeline operators file inspection and maintenance plans directly with the Commission. This precludes a Federal Agency's bypassing the Commission while enforcing safety regulations with gas operators not under the Commission's jurisdiction. As a result, a separate file has been ini tiated for the purpose of maintaining these maintenance and inspection plans.
Only one natural gas explosion occurred in 1970, but an additional explosion due to liquified petroleum also occurred. On May 8, 1970 a natural gas explosion considerably damaged the residence of J. M. Fiveash at 55 N. Muscogee Ave., N. W . , in Atlanta. A gas company crew was making a routine meter service change when the shut-off valve core blew out. Approximately 35 minutes later the key box valve at the street was closed and the house was allowed to ventilate naturally for approximately 15 minutes. After instructions to the contrary the owner entered the house and turned on the attic fan, causing the explosion at 3:08 P. M. He suffered appreciable third degree burns, and a gas distribution crew fore man shock.
The LP gas explosion was investigated by Commission personnel at the request of OPS officials, although the Commission's jurisdiction does not include these facilities. This explosion occurred on January 27, 1970 in Blakely, Georgia at approximately 7:45 A. M. and was caused by a leaking LP truck housed in a garage overnight. Two men were killed and several others injured. The garage was totally destroyed, and damage to surrounding structures was extensive.
During calendar year 1970 the Commission adopted USAS B31.8-1968, "Gas Transmission and Distribution Piping Systems", as the official safety code for natural gas distribution systems. After August 19, 1970 the Commission adopted as its safety code "Transportation of Natural and Other Gas by Pipeline; Minimum Safety Standards" under CFR Part 49Transportation, commonly known as the Minumum Federal Safety Standards.
In June, 1970 the Chief Utilities Engineer of the Commission par ticipated in the annual Gas Association Convention of the Georgia Municipal Association for the purpose of acquainting municipal officials X\rith the Minimum Federal Safety Standards. The presentation was both well-attended and well-received, and the GMA was very appreciative of the Commission's effort on their behalf.
The Commission has proposed in the budget for the next fiscal year additional funds to augment the technical staff in ordex to perform an adequate job in the enforcement of the Natural Gas Safety Act of 1968. Funds have been requested also as authorized in Public Law 90-481, although these funds cannot be advanced until Congressional appropriations through the OPS and DOT.

December 30, 1970

Certificate of the Georgia Public Service Commission submitted to the Secretary of Transportation under Section 5 (a) of the Natural Gas Pipeline Safety Act of 1968.
Pursuant to Section 5 (a) of the Natural ^as Pipeline Safety Act of 1968 (82 Stat. 72.0) (hereinafter referred to as "The Act"), the Georgia Public Service Commission (hereinafter referred to as "The Commission"), hereby certifies to the Secretary of Transportation (herein after referred to as the "Secretary") that --
1. Except as set forth in Attachment A, under the applicable pro isions 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 the State of 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.
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 pro vided in Section 12 of the Act.
5. The Commission has authority to acquire 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 provide for the enforcement of the Safety Standards referenced in paragraph 2 by injunctive and monetary sanctions sub stantially 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 30th day of December, 1970.
ATTEST:

65A. 0. Randall, Secretary

W. E. Kimbrough, Chairman

WESTERN UNION
As re p o rte d in 19 6 9 , W estern U nion was in th e p ro ce ss o f a c q u irin g the t e le t y p e w r it e r system o f th e Am erican Telephone and T e le g ra p h Company and t h a t n e g o t ia t io n s w ere a n t ic ip a t e d so t h a t th e t r a n s it io n c o u ld ta k e p la c e in A p r i l 1971 A f t e r c o n s id e ra b le e f f o r t on th e p a r t o f th e o f f i c i a l s r e s p o n s ib le f o r th e t r a n s i t i o n , th e c o n tr a c ts were p re p a re d so t h a t W estern U n io n c o u ld assume com plete r e s p o n s ib ilit y o f th e t e le t y p e w r it e r system fo rm e rly owned and o p e ra te d by th e A m erican Telephone and T e le g ra p h Company in accordance w ith p la n s as sch e d u le d .
The rates for teletypewriter services were not changed and customers for such service had no interruption of service with the advantage that improved services would be experienced by such customers.
On February 26, 1970, Western Union Telegraph Company filed with the Georgia Public Service Commission an application for authority to amend its intrastate rates for basic telegrams, money orders , and an increase in Tel(T)ex terminal handling charges. Following this is the Commission's Order authorizing such changes together with the summary of intrastate operating results to support the increase sought.

9-tf
i'or^u ie

.

1 ' n A . VP1 { h q A t O&iil '' ' /OO

H

slcfiecscxie

b !: wo v i : s o n o 1 . : : -?"r ?. r w ; o v

f i j a &i*5\nfifo i o n -.':i t.;v; rs#'j3i?*jo b w:o;t i o wo,j

i ; t i v " ' '. !j 2 i - : : '... t :i : b-s, ; o r.

( f'-OV rr.

\w M f O t 5 6 0 r v T E fe fir 0 'tQ iK l B f Sa# $V> :

mmH

sQioa*,

sTTTi

3 210fl 05631 HfifiH Zoj^y

&JVOOCf*t*J' AfAvs*i<i; Voxoi^r

\^j5gg,**o&

>^tORG7 ^nTTo;

Tu
'o0v'
^ avv*<^

R S f

^g^)oilcWi^

/ZsSS2*

f '

<^AV5*<V

s^jTsTS^

v*J300'*x wwl

Ajiiv-v

\nrrst>,

/'oq'^x

j^ZOIgT

sazi

^Tu;

^>><rt*vji>:

l/V

A

^\LlE?

XN7TSt>X
Sr.__* .
s* O Q ^
*4Tn

'P*x*I> ^AVOj*XV

'VOOCf^' ^VV**<V

I/^Trg> ^TT^

ot.R si r^

''ov'