Report of the Georgia public service commission. One hundredth report, 1972

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100th
Of The

UNIVERSITY OF GEORGIA I
APR 3 0 1974
LIBRARIES

Georgia Public

Service Commission

January 1, 1972

January 1973

a M H M

The Railroad Commission of the State of Georgia*
FIRST SEMI-ANNUAL REPORT.

OFFICE OF TEE RAILROAD COMMISSION, A tlanta, M ay 1st,1S80.

ful hold, so that even litigation to test them is dangerous. For this reason our sense of responsibility has often been oppressive. After the study of the law, our first action was to send_ a circular to each of the

To hi Excellency A lfred H . Colquitt, Governor o f G eorgia :

railroad companies requesting copies of existing tariffs of rates--passen ger and freight--also of the reports for last year, and for former reports as

Sir--In compliance with law, we respectfully submit this our first far as convenient, and for schedules of time, etc.

semi-annual report.

The railroads, without exception, and very cheerfully, responded to

Appointed on the 15th of October, 1879, our meeting was unavoida bly delayed by reason of the serious illness of a member of the board, till

our circular--(except that some special rates were not received) and many of them g ive assurances of their cordial co-operation with the work of

the 10th of November, on which day we organized by the election of

James M. Smith Chairman, and Robert A. Bacon Secretary of the Com

mission. We take occasion here to bear testimony to the value and effi

ciency of the latter, in the discharge of the duties, for which his large

previous railroad experience and familiarity with all the technical details

of railroad management eminently qualified him.

Our first business was to determine carefully the exact extent and

nature of our duties. Of the three Commissioners only one was, by the

act supposed to be jiossessed of previous railroad experience, and m>to

the*majority of the board, the problems presented were not only difficult

and delicate, but also new.

. .

We divided out the field of labor as the law suggests--assigning to

one member the legal and constitutional p unis involved, and the ques

tion* of chartered rights; to another the study of general principles and

the Commission. The tariffs presented for our study, as actually of force, presented a
diversity of rates wider than we were prepared to expect, reaching in ex treme cases a ratio of 9 to 1, for the same class of articles over the same distance. But the diversity of any whole tariff as compared with any other as a whole, was by no me ins so great--say, probably, 2 to 1. _Al though the material called for was promptly given, it was insufficient. We soon saw that in a business so large and complex, correct and wellordered book-keeping lies at the bottom of all correct knowledge. Ttie most experienced railroad meij--when they have kept some special book for a time--have b.-en surprised at the comparison of their own con
jectures with the results of actual experience. In addition to the study of the facts of our own railroads, we have
studied much the principles which ought to control :n fixing rates.

the appreciation of economical and business laws; and to the third that

W hat are just and reason ible rates?

part of our duties requiring previous practical railroad experience. The o bjects of the law were obvious, viz: The prevention of extor ion
and unjust discrimination. The powers bestowed to accomplish these objects were very grea*--so
large, indeed, as to fill us with a profound sense of reap jnsibility in their exercise. These powers are enumerated chiefly in sections 5, (i, 7, 8 and 15 of the act of October 14, 1879, which, when boiled down and stated

Bv what standard are they to be measured ? In answering these questions, we have studied the reports of various
railroad companies, the analysis of the cost of operating--the principles as set forth by the Railroail Commissioners of different States--by the experts examined before the State Legislatures and the Congressional committees, and the rate* as fixed by the Commissioners of other States.
The scale ns to distance, the scale as to class, has been determined by

untechnically, make it the duty of the Commission to prevent extortion and unnist.discrimiuation, by making just and reasonable rates for frei ht

the best lights before us. After all all our efforts, we fall back with great satisfaction upon that



1 '

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.I.** * " ' i it %viinsaioo nn woft mthee IlUaWw wn ihmic. ihi give* *us the p-rivileg- e, from time to time, of

e Kiiiie ni'cuiiil nilu

li; iiitii m H H I | ........ ,.......... ........I . . . o our own honest error-. T iosc who know m*Mt of the problem

TTheTaUix^^wmpa'n^wTpen y'^nT^ddiout "partiality--without secret Jwill bestappreciate its difficulties^1concur Sl* Iness to accept of new light derived from di*qti*eion and experience.

lit | The-chief results of our labors are seen in the "Schedule of Rate,"

the law must virtually codify our first action ns the basis of future mo lification. The rates were to be a system entire and complete in itself, ap plied to the facts of our own railroad system. The right to revise our

publish a standard tariff and issue a circular to the railr ads and public to show cause for any modification, presenting their wishes and plans in writing, accompanied by exact information exhibiting the effect of the

action from time to time was liestowcd. In all tins, right to obtain^exact

imormation as the basis of our original action and subsequent revisions,

was necessarily involved.

,,

This, ourgreatest and most difficult work, was to be accomplished

the first thing of all, and " as soon as practicable." When prepared, it

was to be published for four consecutive weeks in seven newspapers in as

many cities. Of this publication (which included, of course,some weeks

of delay and much correspondence and careful proof-reading) we hsve

endeavored to make the very utmost. It has been the object of the Com

mission to furnish every private citizen the means of understanding his

own railroad business as fully and as clearly as do the railroad officials

themselves. There is no other safeguard equal to our exact understand

ing on both sides, of the real rights of boih.

.

The limitations of our jHiwers needed also careful consideration.

These limitations are found in the constitution of the United States and

of this State; in the charters of the railroad companies and in the act

changes on their business. In efleet, Circular No. 1 places the onus of complaint where it prop^dy
belongs, not on the public, who nre not organized and have small means of information, but on the railroads, who are organized and h ive the data for exhibiting results. In a word, this action was a loud call for light
and information, and it has been promptly responded to. It ha* been ob
jected to bv some as too strong a step forward, but it was regarded by the Commission as necessary to prompt action and capable of such treatment as to avoid any great hardship. To prevent this, the operation of the
taritV, which would have gone into effect Vpril 6, 1880, has been postponed til the 1st of May, 1880, the roails agreeing to waive the four (4) weeks publication, and put the Commissioners' tariffs into operation on that day,
whether the notice had then been fulfilled or not. One good result is that the railroads will perceive the advantages, and
more fullv and readily appreciate the necessity of such bookkeeping as really throws most light on their own operations. We are now earnestly

itself. Boththe constitutionsinhibit anyinteiference withthe chartered 1engaged in this difficult work on which really the whole railroad problem

rights ofrailroads " Freight whichcomes from or goes beyond the j hinges. A Circular will be shortly issued for temporairv use--and there-

boundaries of the State" is by the act itself in express terms excepted after a more carefully prepared mebfod be recommended, from the control of the Commissioners. Thus extra-Ktate commerce is T h e most important rule adopted by the Commission and the most far-

excluded from our jurisdiction, except that jig rates shall not exceed the | reaching in its consequences in tig prevention of unjust discrimination is

local freights fixed by the Commission. This exception is very large, in- Rule No. , by which discrimination is prevented as between communities

cltiding at one stroke all imports and all exports. It does not, however, apply to passenger rates, nor affect the power of the board over joint rates
within the State. The regulations established by the Commission, under the law, are enforced by ample penalties to the State and damages to in dividuals--so stringent that the board feels a deep sense of responsibility

as well as between individual customers. We have as yet scarcely assailed those parts of our duty which em
brace joint rates, contracts between railroads, the condition of the railroads themselves, needed legislation, and the like. All these duties we will
enter upon as soon as the first and chief duty is done, and embrace results

and anxiety for tl|e just exercise of powers so large and enforced by such in our next report, penalties. In the rei>ort of the Wisconsin Commissioner, we observe that | We have tbflk-'iijor to be very respectfully yours,

his powers are felt to be inadequate to his duties; he^ is to make brick without straw ; quite the reverse in many particulars in our case. There
is no sense of weakness, but rather of anxiety in the use of large (towers --positive; not merely negative, which, like thumbscrews, take a power-

JAMES M. SMITH, CAMPBELL WALLACE, SAMUEL BARNETT, linueontl Commissioners of Georgia.

II

LIST OF CHAIRMEN OF TEE COMMISSION

James M. Smith Campbell Wallace 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 Jud P. Wilhoit W. R. McDonald Matt L. McWhorter Crawford L. Pilcher William H. Kimbrough Ben T. Wiggins

1879 to 1882
1882 to 1884
1884 to 1885
1885 to 1890 1890 to 1900 1900 to 1901 19OI to 1903 1903 to 1905 1905 to 1907 1907 to 1909 I909 to I9II 1911 to 1922 1922 to 1926 1926 to 1933 1933 to 1937 1937 to 1949 1949 to i960 i960 to 1969 1969 to 1971 1971 to ---

III

S T A T E OF G E O R G I A JIMMY CARTER, GOVERNOR
100th Report of
GEORGIA PUBLIC SERVICE COMMISSION 2bk Washington St., S . W . Atlanta, Georgia 3033^
January 1, 1972 to January 1, 1973
Ben T. Wiggins, Chairman William H. Kimbrough, Vice Chairman Robert C. (Bobby) Pafford, Commissioner Crawford L. Pilcher, Commissioner Ford B. Spinks, Commissioner A. 0. Randall, Secretary
-1 -

C O M M IS S IO N E R S

BEN T. W IGGINS.c h a i r m a n

WILLIAM H . KIMBROUGH, v i c e C H A IR M A N

MAC BARBER

ROBERT C.(BOBBY) PAFFORD

FORD B. SPIN KS

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244 W ASHINGTON S TR E E T , S.W .
At l a n t a ,Ge o r g i a 30334

A. O. RANDALL, S E C R E T A R Y

To His Excellency Jimrry Carter Governor of Georgia
Dear Governor Carter:
As provided by law, the Georgia Public Service Commission submits herewith the 100th Annual Report of the regulatory activities of the Commission for the year ending December 31 19

* Commissioner Crawford L. Pilcher's term expired on December 31, 1972, when he retired,not having sought re-election.
- 2-

lOOTH ANNUAL REPORT
Introduction
The Annual Report of the Georgia Public Service Commission covering the activities for the year ending December 31, 1972, is submitted here with in compliance with the law.
Reproduced herein is a list of the Chairmen of the Commission from its creation in 1879 and also a reproduction of the first semi-annual report of the first appointed Commission consisting of three members. Attention is directed to this first report for the purpose of pointing out that semi-annual reports were issued for the first seven years of the life of the Commission through the year 1886, the first annual report
having been issued for the year 1887, which was the 15th consecutive
report. Thereafter, reports were issued annually, by the Railroad Commis sion through the year 1921, and thereafter by the Georgia Public Service Commission, the name of the Commission having been changed in 1922. Although this is the 100th report of the Commission, the Centennial of the Commission will not occur until 1979
The personnel of the Commission as of December 31, 1972 ware as follows:
Ben T. Wiggins, Chairman William H, Kimbrough, Vice-Chairman Robert C. (Bobby) Pafford, Commissioner Crawford L. Pilcher, Commissioner Ford B. Spinks, Commissioner
Commissioner Crawford L. Pilcher^ term expired on December 31, 1972. He did not seek election for an additional term. He was appointed by Governor Herman Talmadge as Public Service Commissioner on March 31, 1953 to fill the unexpired term of Perry Thomas Knight, resigned, which term expired December 31, 195*+. He was elected and served three succeeding six year terns. He served as Chairman of the Commission from April 3, 19^1 to
January 1, 1969, a period of eight years. Prior to his service with the
Commission he served as Assistant Attorney General 19*+3~*+5; Member of the House of Representatives 1937, 37-38 Ex; 1938-395 19^1, Senator 19th Dis trict, 19*+9-*+9, Ex-50.
A list of the Commission staff personnel during the year 1972 is as follows :
A. 0. Randall, Executive Secretary John R. Price, Reporter Robert F. Coheleach, Administrative Aide,
(Resigned December 31, 1972)
-3-

Utility Engineering Section
Robert B. Alford, Chief Utilities Engineer Douglas N. Smith, Senior Utilities Engineer
(Resigned June 6, 1972) Truman E. Holland, Utilities Engineer II James J. Crudup, Utilities Engineer III Billy Glenn Collier, Utilities Engineer II
Auditing Section
Frank G. Heald, Chief Utility Financial Analyst Nolan E. Ragsdale, Utilities Analyst John W. Buckingham, Utilities Analyst III B. B. Knowles, Utility Analyst Irvin G. Bentley, Utility Analyst Thomas G. Arnold, Accountant II and Personnel Officer Mrs. Jean B. Trisch, Accounting Clerk II Mrs. Jackie B. Mercer, Accounting Clerk I
Transportation Section
David 0. Benson, Transportation Rates Expert J. Fred Parker, Senior Transportation Rate Specialist III
(Deceased July 19, 1972) L. Thomas Doyal, Sr., Senior Transportation Rate Specialist
III and Chief Law Enforcement Officer Horace F. Hartley, Senior Transportation Rate Specialist III Albert R. Bush, Transportation Rate Specialist I George E. Thurmond, Transportation Rate Specialist II Larry L. Carpenter, Registration Supervisor David R. Meeks, Supervisor, Law Enforcement Officers
All other employees during the year 1972 are listed in alphabetical order as follows:
Mrs. Gayle Arnold, Stenographer III - Resigned August 20, 1972 Mrs. Carolyn Baxley, Legal Stenographer Henry S. Brooks, Law Enforcement Officer Miss Carol Bruce, Clerk II Mrs. Helen A. Callaway, Stenographer III - Resigned
September 8, 1972 William T. Carden, Law Enforcement Officer Mrs. Jude Love Coheleach, Clerk II - Resigned April 30, 1972 Mrs. Charlotte E. Carlson, Stenographer II William S. Craton, Law Enforcement Officer Orin S. Culver, Law Enforcement Officer Mrs. Shirley G. Demarest, Stenographer TV
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Mrs. Ann R. Donehoo, Stenographer IV Bobby Edmondson, Clerk II Mrs. Thelma P. Glover, Stenographer III Mrs. Geraldine B. Bossett, Stenographer III Mrs. Martha Diane Green, Stenographer IV Miss Janice A. Hardy, Stenographer II - Resigned May 31* 1972 Mrs. Mildred M. Head, Typist II Miss Donna Marie Heath, Stenographer III Mrs. Mary F. Heaton, Clerk III Miss Carrie B. Hughes, Stenographer III - Resigned
March 31, 1972 Mrs. Linda H. Ingle, Stenographer III Miss Carolyn B. Jenkins, Typist II Mrs. Gladys Lenox, Stenographer IV Miss Margaret E. Maner, Clerk II Mrs. Mildred Mangum, Legal Stenographer Mrs. Virginia Mann, Stenographer IV JUdson L. McGinnis, Law Enforcement Officer Mrs. Allowee E. Meyers, Legal Stenographer Mrs. Virginia P. Norvell, Stenographer III - Resigned
August 25, 1972 Mrs. Rubye D. Otwell, Clerk III Miss Sandra R. Pace, Clerk II Mrs. Sonja M. Parr, Stenographer II Mrs. Sally G. Perkins, Stenographer II - Resigned
August 15, 1972 Miss Catherine L. Rakestraw, Typist II Ernest A. Sims, Law Enforcement Officer Milton R. Thorne, Law Enforcement Officer Charles W. Walker, Law Enforcement Officer S. A. Wheeler, Law Enforcement Officer Floyd L. White, Law Enforcement Officer Chester A. Whitley, Law Enforcement Officer Mrs. Marjorie Ann Winnings, Typist III
Temporary or emergency employees during the year were as follows:
Miss Boss, Mrs. Fowler, Miss Hoppe, Miss Ponatoski, Mrs. Curington and Buford Cox, Jr.
Special mention should be made of the untimely death of Mr. J. Fred Parker, Age fifty-six, from a heart attach while on vacation, July 19, 1972. He came to the Commission from the Atlanta Freight Bureau in August, 1952. In addition to his duties as a Transportation Rate Specialist, he was the most active I.C.C. Joint Board Member assigned to hear and make recommended decisions on Motor Carrier applications before the Interstate Commerce Com mission.
-5-

PUBLIC HEARINGS

During the year the Commission conducted five hundred forty-nine (5^9) 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 cinstituting a quorum.

MOTOR CARRIER CERTIFICATE AND LICENSE FEES

The Commission is charged with the responsibility of collecting and accounting for motor carrier certificate and license fees. The total certificate, permit and license fees collected and remitted to the State Treasurer and Fiscal Division, Department of Administrative Services, during the year 1972 are as follows :

January 1 9 1972 to January 1, 1973
Certificate Fees at $35.00 each, and certificate
transfer fees at $7 50 each ..................... $

9* 965 00

Registration Permit Fees at $25.00 each and

amendment fees at $5.00 each

.................. .. ^-5?815.00

Regular License Fees at $25.00 each . . . . . . ........ 321,875*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 e a c h ................ ..

351^^62.00

TOTAL . . . . . $729,117.00

In addition to the foregoing certificate and license fees of $729,117.00 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 $1,009,117.00 available for appropriation to the Commission.

6- -

COMMISSION DECISIONS

During the year 1972 the following Executive Session decisions were made by the Commission:

Motor Carrier Decisions:

Certificate applications :
Approved-- ---- --- -- -- ----------- -- --------- 270

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

8

Withdrawn-------------- -- *----------- -------

5

Dismissed-- ----- ----------- --- -- --- -- -- 20

Total------------------- 303

Certificate transfer applications : Approved------ -------- --- -- ------- --------- M j-

Denied---------- -- .-- ------------- ----------- 0

Dismissed--------

0

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

Certificate amendment applications:

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

6k

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

3

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

9

Total----------- *------ - l6

Certificate control through transfer

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

15

Certificates cancelled--------- -------------- -- 2k

Certificates suspended-- -- ------

80

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

5k

Total--- ------

158

Registration Permits Issued (undetermined) Registration Permits cancelled (undetermined) -

Rules Nisi issued (other than insurance)------------------

95

Rules Nisi dismissed (otherthan insurance)-----------

77

Insurance and Permit rules nisi issued (undetermined)------

Miscellaneous: (Personnel, forfeitures, Commission Rules adopted and amended, extensions, reconsi derations, refunds, etc.)------------------ 250

Transportation Rates & Service Department:

Railroads & Motor Carriers:

Docket Decisions------

27

Non-docket Decisions---- --- -- ----------- ---- 709

Total------ ------

736

-7-

Utility Hates & Service Department: Docket Decisions---------- ---- ---- ----------- 99 Non-docket Decisions------------ ------- ------- 89 Total----------------- 188

TOTAL ALL DECISIONS----- -------19^2

LAWS AND RULES OF THE
GEORGIA PUBLIC SERVICE COMMISSION
The Commission, on December 5? 1972, approved the issuance of the following Order republishing the Laws and Rules of the Commission, as amended prior to that date, effective, January 1, 1973? in printed book form, a copy of which may be obtained, without charge, at the office of the Commission:
BY THE COMMISSION:
WHEREAS, the last issue of the Laws and Rules adopted by the
Commission was published in printed form, and issued July 1, 1968, and
WHEREAS, there have been amendments of the laws by the General Assembly of Georgia (which the Commission is charged with enforcing), and extensive orders of the Commission amending the various rules and safety regulations applicable to the utilities, railroads and motor carriers subject to the jurisdiction of the Commission, the Commission is of the opinion that the Laws and Rules of the Commission should be republished in printed form, effective January 1, 1973? to include all amendments as of the date of publication.
WHEREFORE, IT IS
ORDERED: That the following laws, rules and regulations, as amended, which have heretofore been adopted and published by the Commission, and which are now in effect, are hereby readopted and ordered published in printed form as the Laws and Rules of THE GEORGIA PUBLIC SERVICE COMMISSION, issued January 1, 1973.
BY ORDER OF THE GEORGIA PUBLIC SERVICE COMMISSION, this the 5th day of December, 1972.

A 0. RANDALL, SECRETARY

BEN T. WIGGINS, CHAIRMAN

8 - -

AREA TRANSPORTATION SUPERVISION
Area Transportation Supervision, a part of the Connaission1s Transportation
Division under direction of David 0. Benson, is headed by L. T. Doyal, Assis tant Director, whose duties include those of acting as Chief of Area Transpor tation Supervision, In addition, this section consists of a supervisor of the area supervisors and ten field personnel. The area supervisors are assigned specific territories in the State ranging from three counties (Atlanta area) to as many as nineteen counties in the southwest section of the State, m e 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 performing transportation service wi m the scope of the operating authority granted by the Georgia Public Service ommission and the Interstate Commerce Commission, and in accordance with the ^ ommission's rules and regulations and the laws of Georgia relating to for hire motor carrier operations. This includes the day-to-day examination of the re gulated carriers' activities throughout their respective territory; conducting investigations relating to carriers' service; examination of the carriers^ files, books, etc,; interrogation of carriers' personnel and offering advice to the carriers when needed or requested; conducting periodic road checks. n addition, the area supervisors perform other specifically designated assign ments related to the functions of the Public Service Commission.
During 1972, several concentrated road checks were conducted throughout the state, in addition to many other lessor checks made in strategic locations. The major road checks ranged from three to five days duration, while the lessor checks lasted from several hours to one or two days. All of the area super visors operate continuously in their assigned territories, seeking to ferret out and eliminate illegal transportation operations. The nature of the illegal operator precludes the establishment of permanent inspection points since Georgia's maze of highways enables the illegal operator to easily circumvent any permanently established check point. Our Area Supervisors patrol the highways, investigate industrial sites and all other locations where the illegal trucker is possibly operating.
The Commission, who helped pioneer the development of the Uniform Regis tration Standards of Public Law 89-170 applicable to carriers operating solely in interstate commerce under authority granted by the Interstate Commerce Com mission, or carriers operating in interstate commerce specifically exempt from the jurisdiction of the Interstate Commerce Commission, continues in its fourth year of operation subject to the above standards. These standards were pro mulgated by the Interstate Commerce Commission pursuant to the provisions of Section 202(b)(2) of the Interstate Commerce Act (^9 U.S.C. Section 302(b)(2)) and all of the states were allowed five years from the enactment thereof to adopt these standards. Georgia was one of the first states to adopt the stand ards and has actively engaged in assisting other states in effectuating these procedures.
The Area Transportation Supervision Section, under a cooperative agree ment between the Commission and the Interstate Commerce Commission, conducted several joint investigations with personnel of that Commission for the purpose of eliminating illegal transportation practices of certain carriers and shippers.
- 9 -

Pursuant to recommendations of the Governor's reorganization team, legis
lation was enacted in 1972 transferring the responsibility for enforcing the
Commission's motor carrier safety rules and regulations to the Departmen o Public Safety. This law became effective July 1, 1972 and prior to that line the Commission's area supervisors assisted in many training sessions wi per sonnel of the newly created division of the Department of Public Safety w o was assigned these vehicle safety inspection functions. The Commission re tained the responsibility for the promulgation of motor vehicle safety ru es and regulations. Between January 1 and June 30j 1972, the Commission s area
supervisors performed 764 individual vehicle safety inspections resulting m
detection of numerous minor safety infractions which were^reported to the carrier with directions to perform repairs. The more serious infractions necessitated the carrier make repairs before the vehicle was permit e o con tinue operating.
Our Area Transportation Supervisors continued in 1972 a new program in
stituted in 1971 designed to assist in the protection of the public using zne
highways of Georgia and the apprise the carriers of the operating^ s o their drivers. Our area supervisors are provided with an appropria e o serya tion form and a tape recorder to enable them to observe motor carrier ve ic es while in operation, recording their description, location of inspec ion, ac tivities and operational violations. Each officer is responsible y iin^ an assigned number of these observation reports daily and copies of the iepor s are sent to the carriers for their information and appropriate corrective action where they deem it necessary.
The Area Transportation Supervision Section, in addition to the respon sibility of processing all motor carrier insurance filings as well as main taining all motor carrier files, was responsible for processing all interstate registration of authority applications and amendments thereto and the issuance of all intrastate and interstate Georgia Public Service Commission motor ve hicle registrations which resulted in the collection of fees summarized on
Page 6 of this report.
During 1972 the ten area supervisors performed 1735 inspections for opera ting authority and proper vehicle registration and identification, resulting
in direct collection of $26,879 1 vehicle registration fees where vehicles
had not been properly registered with the Commission by the carriers. 577 arrests were made throughout the state stemming solely from intrastate and interstate "for hire" operations without proper authority either from the Georgia Public Service Commission or the Interstate Commerce Commission.^ This represents a sixty-two percent increase in cases over 1971 and resulted in
bonds totaling $98,784 being posted in the counties where the arrests were
made. The area supervisors also performed 893 rate checks of intrastate for hire" carriers to ensure that the certificated carriers were adhering to the rates and charges published in their tariffs lawfully on file with the Com mission and, in addition, performed 4,744 other miscellaneous functions in the pursuit of the Commission's business, including personal contacts, special investigations, vehicle observation reports, etcetera.
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TRANSPORTATION General

During 1972, 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), 724 transportation rates and service matters, a considerable number of which required lengthy studies and investigations in the field.

Docket No. Date 2nd Supp. 1-6-72

4335-M

>
1-6-72

4452-M

1-6-72

FORMAL CASES FOR YEAR 1972

Subject

Disposition

Petition of Association of Geor
gia Class "B" Carriers, Inc., and
M & M Tank Lines, Inc., seeking
authority to increase by 10%
rates on commodities in Appendix
to Commission's Motor Carrier
Rule 8.

Commission find ings and conclu sions of original and first supple mental order re affirmed under wage-price guide lines .

Application of Georgia Household Goods Movers Association, Inc., on behalf of the carriers party to its Georgia intrastate Tariff GPSCMF 7, seeking authority to increase rates and charges and to increase range of hourly charges to 30 miles.

Approved for all applicants except those delinquent in filing financial reports.

Application of Tennessee Trailways, Inc., to discontinue cer tain service between Chattanooga and Chatsworth.

Approved, contin gent upon rerouting of other schedules to provide needed service between af fected points.

728-R

1-26-72

Application of Southern Railway to discontinue agency service at Wa ver ly Hall, to discontinue handling less carload freight at that point, to dismantle the Waverly Hall sta tion building, and to substitute a prepay station for handling carload freight only at that point.

Approved.

11

Docket No, Date Non-Docket 3-9-72

FORMAL CASES FOR YEAR 1972 (Cont'd)
Subject
Application of Georgia Railroad to relocate its Atlanta passenger facility from 4 Hunter Street to a point on DeKalb Avenue at Hurt Street.

Disposition
Approved, subj ect to provision for parking and provi sion of employee assistance to pas sengers loading and unloading at the nei* facility.

4535-M 4519-M

3-9-72 Application of Peacock Transfer

thru

Co,, Phenix Moving and Storage,

3-22-72 American Warehouse and Moving

Service, Inc., Macon Transfer

Company, Marietta Transfer and

Storage Company, Arrow Transfer

and Storage Co., Hill Street Ex

tension, P. B. McCurley Transfer

and Storage Co., Statesboro Trans

fer and Storage Co., University

Moving and Storage Co., and New

ton Transfer, Inc., for inclusion

in increased rates on household

/ goods authorized by original or

der in Docket 4519-M, and dismis

sal of Rules Nisi for failure to

file financial reports when due.

Non-Docket 3-22-72

Complaints against increased ratings on live insect bait cages as published in Supplement No. 1 to National Motor Freight Classi fication A-12, GPSC-9.

Inclusion in in creased rates ap proved and Rules Nisi dismissed.
Conditional ap proval of supple ment withdrawn and previous rat ings required to be restored pend ing public hearing.

Non-Docket 4-4-72

Application of Specialized Fur niture Carriers, Inc., Wingate Trucking Company, Inc., Port Terminal Warehouse and Trucking Company, Complete Auto Transit, Inc., and American Courier Corp., for authority to make certain in creases in rates and charges pub lished in their tariffs.

Effective date of said tariffs post poned to permit Commission to ob tain guidelines from Federal Price Commission by which to process such increases.

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FORMAL CASES FOR YEAR 1972 (Cont'd)

Docket No Date

713-R 730- R 731- R 4366-M 4517- M 4518- M

4-4-72

Subject
Application of Southern Freight Tariff Bureau, Southern Railway System, and Georgia Motor Truck ing Association for authority to make effective certain increases in rates and charges contained in tariffs filed with the Com mission.

Disposition
Effective date of said tariffs post poned to permit Commission to ob tain guidelines from Federal Price Commission by which to process such in creases .

Non-Docket 4-18-72

Interstate Commerce Commission order in ICC Dockets Nos. 35190 and 35191 involving two Thirteenth Section proceedings against Georgia intrastate rail rates.

Since this Commis sion's position was upheld in Docket 35191 and most shippers involved in Docket 35190 did not desire to pursue further that pro ceeding, this Com mission concluded not to file petition for reconsideration.

Non-Docket 4-18-72

Application of Southern Railway System for authority to discon tinue as conditional stops Cor nelia, Lula, Flowery Branch, Buford, and Duluth, for its passenger train No. 5.

Approved, except as to stop at Cornelia.

Non-Docket 4-18-72

Application of REA Express for authority to change the method of handling traffic at Clayton, Cor nelia, and Toccoa.

Denied.

733-R

5-2-72

Application of Seaboard Coast Line Railroad Company to discon tinue agency service at Boston.

Approved.

734-R

5-16-72

Application of Southern Railway Company to establish a mobile agency operation serving the towns of Flowery Branch, Buford, Duluth, Norcross, Suwanee, and Sugar Hill.

Approved for six months' test.

13

Docket No. Date Non-Docket 5-16-72

FORMAL GASES FOR YEAR 1972 (Cont'd)
Subject
Application of Greyhound Lines East to establish rates and charges applying to the transportation of package express shipments in a new, guaranteed "next-bus-out" service.

Disposition
Approved on trial basis, subject to provision that any express shipment so handled would not take precedence over passenger lug gage or other ex press shipments nor mally handled on the same bus.

727-R

6-6-72

Application of Southern Railway Company to discontinue agency ser vice at Trenton.

Denied, with pro vision for review in six months.

Non-Docket 6-6-72

Application of Seaboard Coast Line Railroad Company to establish a mobile agency operation serving the towns of Vienna, Montezuma, Ogle thorpe, Ideal, Leslie-DeSoto, Lilly, Fields and Byromville, with the base station at Cordele.

Approved for six months' test.

735-R

6-20-72

Application of Georgia Railroad for authority to consolidate its agencies at Lithonia and Conyers.

Approved for six months' test.

4338-M

6-20-72

Petition of Association of Georgia Class "B" Carriers, Inc., seeking
change in the commodity descriptions
of Item 11 of the Commission's Gen
eral Motor Carrier Rule 8 to include
additional iron and steel articles.

Approved with modification of articles listed.

Non-Docket 6-20-72

Application of Southern Railway Company to discontinue operations over the outer one mile of track formerly operated by the Tallulah Falls Railway at Cornelia purchased by Southern Railway in June, 1961.

Approved.

4645-M

6-20-72

Application of Georgia Motor Trucking Association to increase rates on certain textile articles as published in Items 9240-A and 100680-A of its Tariff GPSC-MF 12.

Suspended for five months in consider ation of protests from textile inter ests .

14

FORMAL CASES FOR YEAR 1972 (Cont'd)

Docket No. Date

Subject

Non-Docket 6-20-72

Consideration of requirement of the Interstate Commerce Commission that tariffs and supplements be mailed to shippers at the same time as the filing of official copies with the Commis sion (with certification of such action).

736-R

7- 5-72

Application of Georgia Railroad to increase rates on carload ship ments of shale from Belair to Campania,

Non-Docket 7-18-72

Amendment of the Commission's Gen eral Rule 15 to provide that all railroads and all motor carriers file with the Commission ten days prior to the assigned date of hear ing ten copies of all exhibits and written testimony to be introduced at the hearing as evidence in rate and security issue cases.

Non-Docket 7-18-72

Consideration of requirement of the Interstate Commerce Commission that tariffs and supplements be mailed to shippers at the same time of the filing of official copies with the Commission (with certification of such action).

Non-Docket 7-18-72

Proposed amendment of Motor Carrier Rule 89 to provide that in the future new Class "B" or Class "C" carriers would not be authorized to transport certain valuable articles.

713-R

8-15-72

Application of the railroads operating intrastate in Georgia for authority to revise the min imum loading requirements on wooden cores and pulpwood.

Disposition Same provision incorporated into this Commission's Rule 14.1.
Approved.
Approved.
Application of this provision in Geor gia postponed pend ing final disposi tion of the inter state provision. Approved, with modifications.
Denied.

15

FORMAL CASES FOR YEAR 1972 (Cont'd)

Pocket No. Date

Subject

730-R

8-15-72

Application of the railroads operating intrastate in Georgia for authority to increase their freight rates and charges on Georgia intrastate traffic to the same extent as their inter state rates and charges x^ere in creased under order of the Inter state Commerce Commission dated March 4, 1971, in Ex Parte 267,

Disposition
Approved, with ex ception of carload rates on sand, gravel, crushed stone, road aggre gates and related commodities.

731-R

8-15-72

Application of railroads operating intrastate in Georgia for permis sion to withdraw application pro posing per car rates on pulpwood moving in woodraclc cars intrastate in Georgia.

Withdrax^al ap proved.

4517- M 4518- M

8-15-72

Application of National Bus Traffic Association, Inc., seeking author ity to increase bus fares and bus express rates betx/een points within the State of Georgia.

Denied.

Non-Docket 8-28-72

Application of Southern Railway System to establish per car rates on pulpwood to Cedar Springs from stations on its line in Georgia.

Approved, with pro vision for alterna tion of the new per car rates with existing per cord rates.

4601-M

9-5-72

Application of Howard Sheppard, Inc., and M & M Tank Lines, Inc., for authority to increase rates on cement and lime.

Approved.

4517- M 4518- M

Petition of National Bus Traffic Association, Inc., seeking re hearing, reconsideration, further hearing, separate consideration and oral argument on Commissions order of August 15, 1972.

Further hearing directed.

4366-M

9-5-72

Application of the Class MA" motor carriers of property to increase rates and charges.

Approved, in part.

16

FORMAL CASES FOR YEAR 1972 (Cont'd)

Docket No. Date

Subject

Disposition

4643-M

9-5-72

Increase in motor carrier rates on less truckload shipments of live insect bait cages.

Approved.

738-R

9-5-72

Application of Seaboard Coast Line Railroad for permission and approval to institute condemnation proceed ings for the purpose of acquiring certain property in Early County, Georgia.

Approved.

4601-M

9-19-72

Request of Gay Trucking Company
for authority to substitute its
company in lieu of M 6c M Tank
Lines, Inc., as the motor carrier entitled to apply increased rates on cement and lime authorized in
Docket 4601-M.

Approved, in view of transfer of H & M Tank Lines, Inc., certificate to Gay Trucking Company.

Non-Docket 10-3-72

Request of United Transportation Union that the Seaboard Coast Line Railroad be required to discontinue using a particular wrench for certain operational functions on the ground that such use is unsafe.

Denied, in view of opinion of Attorney General that the Commission lacked necessary authority.

737-R

10-3-72

Application of the railroads operating intrastate in Georgia for authority to increase their freight rates and charges on Georgia intrastate traffic to the same extent as their inter state rates and charges were in creased under authority of order of the Interstate Commerce Com mission dated December 21, 1971, in Ex Parte 281, and to the level that may be finally approved by the Interstate Commerce Commis sion in Ex Parte 281-A.

Ex Parte 281 in creases approved with exception of rates on carload shipments of lique fied petroleum gas from Milner, Geor gia. Ex Parte 291-A increases denied, subject to refiling when measure of increase is finally deter mined by the Inter state Commerce Com mission.

17

FORMAL CASES FOR YEAR 1972 (Cont'd)

Docket No, Date

Subject

D isposition

732-R

10-8-72

Application of railroads operat ing intrastate in Georgia to im pose an additional charge of 500 per ton over the closed car rate on shipments of slate, broken, crushed, ground, pulverized, or dust moving in covered hopper cars.

Approved.

Non-Docket 11-8-72

Application of Georgia Motor Trucking Association for amend ment of Commission rules increas ing from $250 to $2,000 the damage criteria for motor carriers to report accidents.

Approved.

Non-Docket

11-21-72

Application of Seaboard Coast Line Railroad for authority to establish a mobile agency service serving the towns of Warm Springs, Woodbury, Haralson, Woodland, Talbotton and Junction City (and the nonagency stations of Carroll, Imlac, Edman, Gay, Alvaton and Mauk), with the control or base station of the operation being at Manchester.

Approved for six months' test.

732-R

12-5-72

Application of Southern Freight Tariff Bureau to publish addi tional charge of 50$ per ton on carload shipments of slate, ground or pulverized, in covered hopper cars, from Bolivar to Port Went worth.

Postponement of ef fective date of De cember 12, 1972, until such charge is made applicable on competitive in terstate traffic.

1st Supp. 4517-M 4518-M

12-5-72

Application of the principal Georgia motor carriers of passengers for authority to increase intercity bus passenger fares and bus express rates.

Approved, with limitation as to increase for ac count of Southeast ern Stages, Inc.

Non-Docket 12-5-72

Application of Southern Railway System to establish per car rates on pulpwood to Rosser from points on its line in Georgia.

Approved, subject to the provision that the new per car rates alternate with existing per cord rates.

18

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FORMAL CASES FOR YEAR 1972 (Coni'd)

Docket No. Date

Subject

Non-Docket

12-19-72

Consideration of requirement of U. S. Public Law 89-170 that the States could charge no more than $5 for the registration of inter state motor vehicles.

Disposition
Approved proposed amendment of Geor gia Code Chapters
68-5 and 68-6 to
change the present $25 registration fees to $5 and to increase the pres ent $1 fees to $5 (except multiple registration fee
remain at $1), all
subject to provision that a fee of $25 be charged where a motor vehicle is operated in the State without first having obtained the required annual li cense or identifi cation stamp.

19



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BUS FARES AND SERVICES
At the end of 1972, there were still 36 bus lines operating under the jurisdiction of the Commission providing passenger and package express ser vice between points in Georgia -- an apparent end to the declining trend in number of such carriers which began at the end of World War II. Consequently, the area and route coverage of the State's bus lines continue the same.
By application in November of last year, the principal bus lines operat ing within the State sought authority to increase intercity passenger fares
by 10%, to increase commutation fares to 2.5$ per mile, with a minimum com mutation fare of 35c, and to increase package express rates in excess of 20/.
Public hearing was held on the proposed increases by the Commission in March, but processing of the applications was delayed for many months due to the national wage-price freeze and to uncertainty as to Price Board regulations governing such increases.
During the delay the Commission had the opportunity to review the record in the proceeding in the light of subsequent financial statistics filed by the bus lines and to compare those filings with the operations forecast by the carriers. It was found that the earnings of the bus lines as a group had improved during the first half of 1972 as compared to 1971, and under the circumstances, the Commission did not feel that observance of the purpose of the economic stabilization program would permit at that time an increase in charges by the bus lines as a group or by some of the individual carriers in volved and accordingly, denied the applications. The Commission recognized, however, that some of the Georgia bus lines individually would have inadequate returns and that their condition did not reflect that of the applicants as a group but pointed out that the record was not sufficient to permit determina tion of how increases could be granted to only those carriers -- either as to the extent of increase or method of application thereof. The Commission's decision held that while the instant applications were denied, it would, upon proper application, give consideration to reopening the record for the purpose of consideration of individual carrier revenue needs and method of application thereof and/or further developments in wage (and other costs)price relationships indicating on a more current basis the trend of the appli cant's earnings expectations in the light of normal regulatory principles and economic stabilization program goals. In September the bus lines filed peti tion for rehearing, reconsideration, further hearing, separate consideration, and oral argument on the proposed increases and the Commission assigned the matter for further hearing in October. At the hearing the applicants submit ted additional testimony and exhibits designed both to bring up to date the statistical showing made at the original hearing in these proceedings and to further justify the increases proposed in light of Commission requirements and the requirements of the Federal Price Commission.
Following such further hearing, the Commission found that most of the applicants were then operating intrastate in Georgia at a loss and that the fare and rate levels in other States in the South were all higher than those
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in Georgia, and under the circumstances, approved the increases proposed with the exception that increase in express rates was limited to a maximum of 20i4 and the fare increase for Southeastern Stages was limited to 10%.
During the year Greyhound sought authority to institute a new package express service offering the transportation of such shipments on a guaranteed "next-bus-out" basis, thereby still further expediting this category of bus express shipments. The Commission at first declined to permit such new ser vice because of fear of prejudice against package express shipments not moving under the higher rates for this service, but upon reconsideration and follow ing investigation of the manner in which such service was provided in inter state traffic, agreed to approve the "next-bus-out" service on a trial basis subject to the requirement that any express shipments accepted under the nextbus-out" tariff would not take precedence over passenger luggage or over another express shipment which, in the normal course of operations, would have been placed on the same bus for which the "next-bus-out" shipment was intended.
There were many bus schedule changes made during the year, but only one had sufficient impact in Georgia to require formal hearing by the Commission. That requiring such action was an application of Tennessee Trailways, Inc., to discontinue certain schedules between Chattanooga, Tennessee, and Chatsworth, Georgia, resulting in total elimination of bus service via this line to four intermediate Georgia points. At the hearing the bus line, in consideration of the protests made against its proposal, offered, if its application were approved, to reroute other schedules to provide service to the affected points, and in consideration of such rerouting, the Commission authorized the discontinuance of schedules sought.
TRUCK SATES AND SERVICES
In July and August of last year, the Commission authorized the Associa tion of Georgia Class "B" Carriers, Inc., on behalf of member carriers and carriers participating in its Tariff 1-A, to increase by varying amounts rang ing up to 10%, rates on articles listed in the appendix to the Commission's
Motor Carrier Rule 8, Such rate increases were caught in the wage-price freeze
made effective on August 15 last year and held in abeyance until January of this year when, upon review of the record, the Commission certified such in creases to then be put into effect.
In May of last year the Georgia Household Goods Movers Association sought increase in rates for the movement of household goods, and following public hearing, the Commission in January found a portion of the increases to be con sistent with the purposes of the Economic Stabilization Act and required by the carriers for effective intrastate operations and authorized an increase of ap proximately one-half of that sought. A number of the carriers party to the ap plication had not filed adequate financial statistics to permit determination of the need for increase for their account, and the application of that increase for such carriers was withheld until such filings were made and review by the Commis sion demonstrated the specific need of the individual carrier for such increase.
- 21

In August of last year, the Commission accepted for filing, subject to^ complaint and further order, supplement to the National Motor Freight Classi fication which contained increase in ratings on live insect bait cages from^ Class 100 to Class 200. Upon receipt this year of complaints against that in crease, the Commission withdrew its conditional approval of that supplement and assigned the matter for public hearing. At the hearing it was developed that these articles were of extremely low density and occupied space in the vehicle at transportation charges x^hich x^ere not realistically related to that space. The Commission found the proposed rating of 200 to accurately reflect the trans portation characteristics of these bait cages and to place them in the same rating category as a number of other articles of like density and similar trans portation characteristics and concluded that, in justice to other shippers Pay ing transportation charges reflecting such characteristics, the rating sought should be authorized.
By petition in June of last year, the Class "A" Motor Common Carriers of property sought increase of 7% in less truckload or any-quantity rates, 34 in volume or truckload rates, and increase in the minimum charge from a flat $5.10 per shipment to $6.29 to $7.34 per shipment, dependent upon mileage. The mat ter was assigned for hearing in July of 1971 but was not completed on that date and was reassigned for further hearing in September. Before such further hear ing could be held, the wage-price freeze was imposed and the applicants re quested cancellation of the September 19, 1971, hearing and continuation of the application " . . . until such time as it may be more appropriate to resume the hearing". Upon later petition that the application be reinstated and the neces sary further hearings scheduled, the Commission assigned the matter for such further hearing on April 13 of this year, at which time the hearings were com pleted. There were a number of protestants to the proposed increase, including those representing textile and food processing industries and a Freight Bureau and a representative of those concerned principally with small shipments. By petition in June, the applicants requested that the proceeding be reopened for the purpose of offering new evidence which they believed to be pertinent and im portant for the Commission to have before it in considering the merits of the increase. Such further hearing x?as held in July. Following review of the many exhibits and the large volume of testimony presented by both the applicants and protestants, the Commission decided that the showing by the applicants was not adequate either in measure or in type to justify the increase sought and con cluded that it would grant only such amount of increase as would permit the offsetting to a reasonable degree of the large wage cost increases incurred dur ing the period covered by this proceeding. The increase granted amounted to 34 on both less truckload and truckload traffic, and an increase in the minimum
charge to a flat amount of $6 per shipment.
There were a number of rule changes made during the year which relate to motor carrier operations. In June the Commission ruled on an application filed last year by the Class "B" Carriers of property seeking expansion of the list of iron and steel articles included in the authority of many of those carriers. Following hearing in October of last year and lengthy examination of the trans portation characteristics of individual articles and the effect of amendment of the rule on other carriers, the Commission found that the description of the articles in this list needed revising. The Commission did not, however, expand
22

this commodity description to include the full list of articles sought or the broadening of the item to include such articles made of all types of metal. In July the Commission amended its Motor Carrier Rule 89 to provide that in the future new Class "Bn or Class nCn Motor Carriers of property would not be authorized to transport certain valuable commodities -- this being done in rec ognition of the specialized service involved in such transportation and the lack of necessary equipment, facilities and security arrangements by the typical Class "B" and Class "C" carriers. Also in July the Commission amended its Gen eral Rule 15 to include all railroads and all motor carriers in the provision of that rule that applicants must file with the Commission at least ten days prior to the date of hearing, ten copies of all exhibits and written testimony to be introduced at such hearing as evidence in rate and security issue cases. Finally, in November, the Commission, at the request of the Class "A" Motor Carriers of property followed the example of the Interstate Commerce Commission
in increasing from $250 to $2,000 the criteria for such motor carriers to re
port accidents. This rule amendment was with the understanding that no change was being made in the requirement that all accidents resulting in injury or death would still be reported, regardless of the monetary amount of damage.
RAILWAY EXPRESS
The Railway Express Agency, now known as REA Express, has converted its operations almost entirely to motor carrier and is making every effort to continue the type of service offered by it for many years. This Commission has cooperated with the Agency in the conversion of its operations but has not been able to permit some of the changes the Agency desired to make. In April the Agency began a program of elimination of local offices with the services to the affected towns to be performed in a peddler-truck type operation from nearby larger express bases. Specific authority was sought to eliminate the local offices at Clayton, Cornelia, and Toccoa, and in consideration of objec tions expressed by the public to the proposed change in operations, the Commis sion declined to grant authority to close these local express offices.
RAIL PASSENGER SERVICE
Although most railroad passenger service in the State has been taken over by Amtrak and thus removed from the jurisdiction ot his Commission, there is still non-Amtrak passenger service provided by the Southern Railway between Washington, D. C., and New Orleans, Louisiana, via Atlanta and by the Georgia Railroad between Atlanta and Augusta and on the three branches of that line. During the year the Southern Railway sought authority to remove from the sched ule of its passenger train No. 5 the conditional stops at Cornelia, Lula, Flow ery Branch, Buford, and Duluth. Following the posting of public notice and consideration by the Commission, authority was granted to remove the stops at Lula, Flowery Branch, Buford, and Duluth, but denied as to Cornelia.
The Georgia Railroad several years ago moved its Atlanta passenger depot facilities from the Atlanta Union Station to its office building on Hunter
- 23

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Street due to the heavy cost of its share of Atlanta Union Station expenses and the impending abandonment of that station by the Louisville and Nashville Rail road upon the institution of Amtrak. In February the Georgia Railroad sought authority to again move its Atlanta passenger facilities -- this time from Hunter Street to a point in its yard on DeKalb Avenue at Hurt Street, approx imately 2.2 miles from its Hunter Street location. The Georgia Railroad pro posed to pave an adequate space at the new location for passenger use in board ing and leaving the trains and for parking for a minimum of twelve vehicles (with access to such parking space from DeKalb Avenue). The railroad also agreed to provide a railroad employee at the location for fifteen minutes ahead of departure time of the eastbound train until after the train had left and to meet the westbound train upon arrival where there were any passengers to detrain at Atlanta with such employee to assist such detraining passengers to the extent necessary in securing transportation from the unloading point. After on-theground survey of the location of the proposed new facility and in consideration of the fact that an average of less than two passengers per day used the Georgia Railroad passenger trains to and from Atlanta, the Commission authorized the move to the new facility.
RAIL FREIGHT
During the year there were two general increase proceedings involving rail road freight rates -- these involving the increases authorized on interstate traffic by the Interstate Commerce Commission in Ex Parte 267 and Ex Parte 281 and 281-A. In April of last year the railroads sought the Ex Parte 267 in creases in Georgia but due to the imposition of the price freeze and the sub sequent inability of this Commission to obtain from the Federal Price Commission guidelines adequate to permit handling of matters of this nature, hearing was delayed until February of this year. At the hearing it was developed that the rate of return of the six Georgia Class I railroads was still below 57 and that the cost increases incurred by these railroads since the last increase in rates was approved had amounted to over 145 million dollars annually, or 11.4% of the annual freight revenues of those carriers. Opposition was expressed by several Georgia shippers or receivers of freight -- principally representatives of shippers of cement, sand, and crushed stone, each opposing particular aspects of the proposal as it pertained to specific commodities shipped or received by them. In addition, two representatives of paper mills requested the Commission to hold in abeyance any action on the increase sought to the extent it was pro posed to apply to pulpwood and woodchips until such time final disposition was made concerning adjustment in rates and minimum weights on those commodities then at issue in two separate dockets. The Commission found that there was need for additional revenue for these carriers and that the approval of the in crease would result in the same measure of increased rates as already made ap plicable in Alabama, Florida, Kentucky, Louisiana, South Carolina, and Virginia, and approved the increases sought with one exception. That exception was to the proposal to increase rates on sand, gravel, crushed stone, and related articles on all movements except those single-line over the Southern Railway System. The Commission concluded that such was impossible without unjust discrimination and without destroying the Commission's long-established merged scale
24 -

for the movement of this traffic which is applicable regardless of the number of railroads involved. Accordingly, the Commission did not authorize any in crease in rates on these commodities -- this exception reducing the increase sought by some $255,000 annually.
By petition dated April 3, the railroads sought still further increase in rates -- this increase the same as already made effective on interstate tra re in Ex Parte 281 and to include whatever might be authorized by the Interstate Commerce Commission in Ex Parte 281-A. Once again, processing of the petition was delayed by the inability to obtain from the Federal Price Commission gui e lines adequate to permit handling matters of this nature. The matter was inally set for hearing in July, at which time the protestantsstrongly objecte to proceeding with the Ex Parte 281-A phase of the petition when it was not yet known what measure of increase would be authorized by the Interstate uom merce Commission in that proceeding. In consideration of that protest, t e Commission limited the hearing to the increases sought in Ex Parte 28 wit t e stipulation that the Ex Parte 281-A petition would be considered when the extent and measure of increases sought in that docket was finally determined. Upon such ruling, all except two of the protestants withdrew. The most signi icant showing made by the applicants at this hearing was that while the rate of return of the six Georgia Class I carriers had climbed to 5.14%, cost escalations re cently incurred over and above those upon which the rate relief was based in Ex Parte 267 amounted to $173,292,969 annually, or 12% of the actual 1971 freight revenues of these carriers. The only protestants not withdrawing their objec^ tions were one representing the Atlanta Freight Bureau and another, representing a national oil company. Although tendering no evidence in opposition, the Freight Bureau cross-examined applicant witnesses and indicated opposition to any increase in rates and charges as not being required by the railroads earn ings position. The representative of the national oil company sought exception from any increase in rates on carload shipments of liquefied petroleum gas mov ing from Milner to destinations in the State of Georgia -- those cars being shipped to strategic points as "standby" or reserve cars, to be unloaded only^ under emergency conditions, when the weather was extreme and/or the pipelines pumping pressure dropped. The Commission, in recognition of the severe cost increases incurred by the applicants in spite of the wage-price freeze, and of the fact that the increases sought would return less than one-third of such annual cost increases incurred, approved the rate increases sought with the ex ception of that on the movement of liquefied petroleum gas in tank cars from Milner.
By application filed in early 1970, the railroads sought authority to in crease substantially the minimum weights to be applied on carload movements of pulpwood. The matter was not assigned for hearing until January of last year, at which time a large number of pulpwood loaders appeared in opposition. The principal justification advanced for the increase in minimum weights was that there was a shortage of woodrack cars and that the proposed pulpwood minima would substantially increase the pulpwood handling ability of the railroads. It was estimated that the new minima would allow the Southern Railway to handle 29,022 more cords per single round-trip of its fleet -- equivalent to adding^ approximately 1,000 remanufactured cars to that railroad's existing fleet, ihe overall effect of the new minima was stated to add the equivalent of 2,121 cars
25

of 29-cord capacity to the combined fleets of the three principal railroad systems at a saving of approximately 26.5 million dollars to the carriers. Statistics were submitted by the railroads showing results of a study of pulpwood loadings in Georgia to demonstrate that the proposed minima could be loaded. Additional exhibit was submitted c l a i m i n g that at the present level of rates and current load minima, the single-line scale of rates on pulpwood were non-compensatory. A large number of loaders of pulpwood vigorously objected to the proposed changes in loading provisions, contending that they could not load the new minimum weights in many instances, particularly on the Southern Railway System, since that railroad would not permit '`crowning" -- loading the cars where the middle of the load extended above the bulkhead loading mark. The Commission concluded that it looked with favor upon reasonable loading pro visions which would require the shipper to utilize existing equipment to its maximum potential but only such provisions which could be complied with under reasonable conditions. It was found to be readily apparent that the railroads proposal would result in severe adverse impact upon the ones least able to with stand that impact -- the independent pulpwood loaders. Under the circumstances, the Commission denied the application but urged the parties -- particularly the mills and the loaders who really control the methods of loading -- to seek agreement on loading provisions which would permit the loaders to load as high minima as possible without undue hardship and permit safe transportation by the railroads at a reasonable return.
Concurrently with their application to adjust carload minimum weights on pulpwood, the railroads had pending proposed per-car rates on pulpwood to be established in lieu of the existing per-cord rates. The proposed per-car rates were based to a large degree on modification of loading standards involved in the previously discussed proceeding and the railroads withdrew their proposal to establish such rates in order to attempt to eliminate the substantial objec tions to revision of the loading practices. Later in the year, however, the Southern Railway did seek authority to establish per-car rates on pulpwood to Cedar Springs and to Rosser from points on its system lines in Georgia. Inas much as these proposals contemplated no change in loading requirements, the Commission authorized the establishment of these per-car rates subject to the provision that those rates alternate with the long-established per-cord rates with the shipper to be given the benefit of the lowest charges.
In June of 1971, the railroads sought authority to publish rates on granite, limestone, marble, broken, crushed, ground, pulverized, or dust, and related articles, 50$ per 2,000 pounds higher when shipments were made in covered hop per cars than the rates applying on shipments in closed cars. The Commission received three protests against the proposed surcharge- - one of which (that of a limestone shipper) being subsequently withdrawn. In recognition of the fact that the Commission-prescribed scales on these commodities and the voluntarily established rates thereon were never intended to apply on movements in covered hopper cars, the Commission approved the proposed 50$ per ton surcharge with the exception that such surcharge would not be authorized on rates on crushed slate and slate dust from Bolivar to Port Wentworth (which were the subject of protests by two shippers utilizing such rates) pending public hearing on those protests. At the hearing the railroads showed the substantially higher cost of
- 26

the hopper-type equipment with the claim that the revenue earned on this traffic was less than the cost of operations. The protestants claimed that the movement was compensatory, that the railroad showing was based on out-of-route operations at longer-than-justifiable transit times. The Commission found that even if the line-haul costs shown by the railroads were reduced to reflect the reduction in mileage to that claimed applicable by the protestants, the resultant cost of transporting slate from Bolivar to Port Wentworth would still be greater than either the existing rate or the proposed increased rate. It was pointed out that the Commission had finally only recently been able to defeat a Thirteenth Section attack on its crushed stone rate scale and that such success could never have been obtained had there been any indication that the movements of such com modities at those rates could be made in the expensive, covered hopper car equipment here involved. Under the circumstances, the Commission authorized the imposition on these rates of the additional 500 per ton when moving in covered hopper cars, pointing out that the shipper still had the privilege of utilizing boxcars, which would not be subject to such additional charge (the shipper hav ing stated that it was equipped to handle both boxcars and hopper cars in its operation).
RAIL AGENCY SERVICE
The railroads continue to seek authority to modify their agency services at the smaller towns -- continuing their contention that the revenues from such sta tions and the type of traffic moving to and from such stations no longer require the services of a full-time agent. This year the Commission processed 7 such applications involving 32 stations, and, as is its established custom, adhered to the policy of deciding those applications on the need for and use of the services rendered rather than fully on the statistical showing of revenue versus cost. After finding that the public convenience and necessity no longer re quired the service of an agent at such points, the Commission authorized the discontinuance of agency service at Boston and Waverly Hall. Finding that there was need for continuance of agency service at Trenton, the Commission denied the railroad's application to discontinue the agency at that point.
During the year there was another consolidation of agency service sought whereby one agent was proposed to provide agency service at two stations. The Georgia Railroad sought to establish such dual agency service at Lithonia and Conyers -- this application being approved after finding that the proposed ser vice would be adequate to the needs of the public.
There has been reviewed in detail in the reports of the last several years the mobile agency concept of providing agency service to a number of stations under which one agent can perform the needed services at a saving to the rail roads while adequately handling the needs of the public at the involved point. During the year three more such operations were authorized -- one on the South ern Railway and two on the Seaboard Coast Line Railroad, The Southern Railway mobile agent serves the towns of Flowery Branch, Buford, Duluth, Suwanee, and Sugar Hill. One Seaboard Coast Line mobile agent serves the towns of Vienna,
27

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Montezuma, Oglethorpe, Ideal, Leslie-Desoto, Lilly, Fields, Byromville, and Cordele; and the other serves the towns of Warm Springs, Woodbury, Haralson, Woodland, Talbotton, Junction City, Carroll, Imlac, Edman, Gay, Alvaton, Mau , and Manchester. As in all previously approved mobile agency operations aie
Commission conditioned authorization to institute these three mo 1 e a0encie
to be only a six-months' test period and to be subject to the same m v e s ig tion procedures during that period as has been observed by the Commission m
such prior proceedings.
It should be here pointed out that at the close of the year all of the mobile agencies previously authorized on either a trial or permanent asis were operating effectively and that the Commission has not receive a sing e su stantive complaint against the services so being rendered.

CONDEMNATION PROCEEDINGS AND ABANDONMENT OF OPERATIONS

In June the Southern Railway sought authority to discontinue opera. n

over the outer one mile of track formerly operated by the Ta u - a S_, .

way in Cornelia and purchased by the Southern Railway in June o

*

,

track was purchased by the Southern Railway at the time of aban onmen o e

Tallulah Falls Railway and was bought for the purposeof connecting the ^racic

to the Southern Railway facilities and thereby to serve industries ^

-V

have otherwise been adversely affected by the abandonment of the Tallulah t a n s

Railway. Since that time, the industrial use of thetracsc had ec m e o w er there was only one industry left concerned therewith. That industry a v se the Commission that it no longer was receiving shipments by rail at its location

and had no objection to the proposed discontinuance of operation. Accordingly, the Commission authorized the discontinuance of operations sought to ecome

effective not earlier than July 1.

In July the Seaboard Coast Line Railroad sought authority to institute condemnation proceedings to acquire certain property in Early County to e use for the construction of a new railroad bridge over the Chattahoochee River in that county and for the necessary revision in approach trackage. Following hearing, the Commission found that there would be no station elimination result ing from the construction of the new bridge and approach tracks, that the new bridge was required to remove a navigational obstruction in the Chattahoochee River (that requirement being from the Secretary of the Army who had ordered re moval of the old bridge), and that the location chosen was necessitated by valid navigational considerations, and approved the institution of the condemnation
proceedings for the purpose sought.

RAILROAD SAFETY

In July the United Transportation Union requested that the Commission or der the Seaboard Coast Line Railroad to discontinue a requirement that its em ployees use a particular wrench for certain operational functions -- the request

28

being based on the contention that such use was unsafe. The Commission fur nished the State Attorney General with copy of the request, with its request that formal opinion be rendered as to the degree of the Commissions authority not only in this specific instance, but also in the entire field of safety of railroad employees. By opinion dated September 25, the Attorney General ad vised that the Commission should not attempt to assert jurisdiction over the safety of railroad employees. Under the circumstances, the request of the United Transportation Union was denied.
PARTICIPATION IN INTERSTATE PROCEEDINGS
There was reviewed in detail in the Commission*s 1970 report the proceed ings before the Interstate Commerce Commission in Dockets 35190 and 35191 in volving a Thirteenth Section investigation into the alleged unfair burden placed on interstate commerce by the Georgia intrastate rail rates on sand, gravel, crushed stone, and related commodities and by the failure of this Commission to authorize the same increases in rates as did the Interstate Commerce Commission in Ex Parte 259. As pointed out in the 1970 report, the Commission representa tives actively participated at the public hearings in these dockets and filed briefs in the proceedings. On March 20 of this year, the Interstate Commerce Commission issued its order in the two dockets, upholding the intrastate rates on sand, gravel, crushed stone, and related articles, but requiring removal of the exceptions which this Commission specified to the general increases in Ex Parte 259. In view of the fact that the Interstate Commerce Commission had held for this Commission in Docket 35191 (the proceeding involving rates on sand, gravel, crushed stone, and related articles) which was by far the more important in its impact on Georgia shippers, and the fact that most of the shippers involved in the Ex Parte 259 considerations involved in Docket 35190 had advised this Commission that they did not desire to pursue further the mat ters involved in that docket, the Commission concluded not to file petition for reconsideration of the Interstate Commerce Commission's decision.
In September it came to the attention of the Commission that a motor car rier based in Alabama had filed with the Interstate Commerce Commission pro posal to unilaterally cancel all of its thru routes, joint rates and interchange agreements with connecting carriers on shipments of textile products moving to points served by it and originating at the Georgia towns of Barnesville, Grif fin, Hampton, Thomaston, and Zebulon. The carrier did not propose such cancel lation on any other commodities or on any commodity from any other Georgia points or on any commodity to any other Georgia point. It was evident that tex tiles and textile products only and from these five Georgia points only, were singled out for such a restriction. The Commission filed protest with the In terstate Commerce Commission, pointing out that the textile industry was very important to the economy of the State of Georgia, that the free, unrestricted movement of its products was vital to its wellbeing, and that no unilateral, one-way restriction as was proposed by this carrier should be permitted tihere there had been no demonstration of carrier need therefor or any indication of deficiency in the long-established and well-patronized joint services. At the close of the year, there had been no decision rendered on this proposal.
29

UTILITIES DIVISION
INTRODUCTION
The Georgia Public Service Commission issued a total of 54 Orders after formal proceedings during the year 1972. These Orders in volved Certificates of Public Convenience and Necessity for Gas and Telephone Companies, rate adjustments, the issuance of securities re lating to capital structure and matters involving the general operation of the utilities subject to the jurisdiction of the Commission. Several Orders issued in 1972 were of vital interest to the consumers of uti lity services. Copies of these are enclosed herein for such detailed information as may be desired or found appropriate for interested parties.
Over the past few years, the citizens of Georgia using uti lities1 services have become more cost conscious and have displayed much greater interest in the formal proceedings in the Commission. This is indeed gratifying to the Commission inasmuch as its interested citi zens are learning more about the operation of the Commission and how rates are changed, so that effected utilities will be able to earn a fair rate of return based on the value of the utilities* property de voted to public use. They also learn more about why utilities experience increases in taxes, materials, fuel, and labor, as well as the most pr dominent cost, that being the cost of capital funds. The interested parties are given the opportunity of expressing their views, pro or con, toward the utilities application, at the hearings, as well as to inform the Commission of service deficiencies. The utility companies promptly correct these deficiencies to the satisfaction of each complainant.
Because of the rapidly increasing number of utility consumers throughout the State, there has been a considerable increase in the filing of formal complaints and the Commission, as well as the utilities, strive toward resolving these complaints to the consumers* satisfaction as rapidly as possible.
Various civic organizations throughout the State have been addressed by the Commissioners and/or the Commission Staff for the pur pose of acquainting the consumers with the services performed by this Commission. These organizations are informed as to the responsibilities of the Commission in requiring utilities to provide adequate and satis factory services that are compatible with reasonable and just needs of the public at rates which are fair and reasonable. The Commission, through its competent engineering and accounting staff can determine the accuracy of any electric and 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 a customer is being billed on the most economical rate applicable to the individual's service.
30

_

This Division must make many field investigations to de termine the reasonableness of the extension of facilities that would provide the utility consumers with the service desired. Contrary to the beliefs of many Georgia citizens, this Commission does not guaran tee any 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 its distribution faci lities, or rights of way. When any utility expands its facilities along rights of way, many problems will naturally occur, and the affected citizens often appeal to the Commission for assistance and every assist ance is offered within the jurisdiction of the Commission.
The function of the Utilities Division is to provide the Commission with professional and technical services in order that the public responsibilities as required by law can be met. A competent technical, professional and administrative staff performs specific functions in the engineering, rate , auditing and accounting departments, in order to carry out the duties assigned to it by this Commission. The work of the engineering department consists generally of processing and analyzing all utility tariff filings which include rates, rules, and regulations of electric and gas companies, as well as tariff revisions filed by Western Union. All applications for Certi ficates of Public Convenience and Necessity for telephone and gas uti lities are processed and docketed for hearing. During the formal hear ings , the professional staff conducts the cross-examination of the witnesses, and after the Commission reached a decision, appropriate or ders 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 just decision. The receipt, processing, evaluation, investigation, and final disposition of all complaints filed with the Commission against the utilities is one of the most important functions of this department. It is necessary that the staff 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 problems. Many electric, gas and telephone test in struments are utilized, for the purpose of obtaining detailed facts and certain technical data required. These expensive and delicate instru ments are sent to the Laboratory of the U.S. Bureau of Standards peri odically for calibration and issuance of certificates which indicate the tolerances of accuracy. All Federal Power Commission and Federal Com munications Commission publications on certificates, rates, rules and regulations, and orders are reviewed carefully in order to evaluate same before submission to the Commission for such action as deemed appro priate.
The responsibility of assigning all rate and security appli cations for hearings, rests with the rate, auditing and accounting de partment. When esthibits 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 con ducted for the purpose of bringing out the facts in each case, thus aiding the Commission is reaching a fair and equitable decision.
31

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 tremenduous task of auditing all monthly, quarterly, and annual reports received from the utility companies. It is necessary to check for errors in accounting, accuracy of data and conformance with the Uniform System of Accounts. When discrepancies are found, they are called to the attention of the appropriate utilities* officials for correction. Rate of return studies are made annually and submitted to the Commission for such action as may be deemed appropriate.
With the close of the calendar year of 1972, there were under the jurisdiction of this Commission the following number of public utilities :
Electric ............. 2 Natural Gas ........... 4 Telephone* ............ 45 Radio Common Carriers 20 Telegraph ............. 1
* Includes 4 Co-ops.
The Utilities Division staff is authorized twenty-one employees, such as engineers, accountants, auditors, stenographers and clerks, but during the year three of these positions was vacant. This de partment experienced over 30% turnover during the year, because of the unwillingness of qualified personnel to accept and hold the positions at the low salary level. The need for additional per sonnel 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 reported in previous years, resulting from a study of staff engineering positions within various agencies, upgrades in salary levels of the engineering positions as well as the 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 salaries so as to improve themselves. Much time is involved in training an employee with the duties for which he has been employed, when employees resign to accept more lucrative positions in industry and/or Federal Government and other State Agencies. The information and service rendered are reported to the public and any errors which occur due to new employees not properly trained could be extremely enibarassing to the Commission. The constantly increasing work load due to the tremenduous growth of the
32

population in the State and expansion of facilities in nearly every county of the State is indeed placing added burdens on the employees of this Division. 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.
33

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DECISIONS M D ORDERS

Applications formally heard by the Commission are generally taken under advisement and decisions thereon are issued at a later date. The Commission issued 54 decisions and orders during the year in proceedings involving utilities. A classification of the proceed ings in which formal opinions and orders were issued follows:

Applications for Certificates or Cancellation Thereof ............ 9

Applications for Authority to Issue Securities or Borrow Money . . 26

Rate Adjustment Proceedings........ ..............................12

Applications for Authority to Purchase and Transfer Utility P r o p e r t i e s ................. .............................1

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

3

Applications for Amendments of Rules andRegulations ............... 0

Show Cause Proceedings ............................................ 0

General O r d e r s .................................................... 3

APPLICATIONS FOR CERTIFICATES OR CMCELLATION THEREOF

Docket No. 2234-U February 23, 1972 First Supplemental Order

Petition of Citizens in the Schlatterville Community, Brantley County, requesting reestablishment of telephone service by Southern Bell Telephone and Telegraph Company.

D-NON June 6, 1972 Certificate No. 699

Application of Southern Bell Telephone and Telegraph Company for a Certificate of Public Convenience and Necessity to es tablish a new exchange at Appling, Georgia.

Docket No. 2457-U June 6, 1972 Certificate No. 701

Application of Bulloch County Rural Tl phon Cooperative, Inc., Statesboro, Georgia for a certificate of Public Convenience and Necessity to establish a new exchange in the South register area of Bulloch County Georgia.

D-NON June 22, 1972 Certificate No. 700

Application of The Utelwico, Inc. for a Certificate of Public Convenience and Neces sity, Nunc Pro Tunc, for the establishment of a new exchange at Geneva, Georgia.

34

Docket No. 2473-U September 19, 1972 Certificate No. 702
Docket No. 2239-U January 26, 1972 Certificate No. 129
Docket No. 2238-U February 23, 1972 Certificate No. 130
Docket No. 2164-U April 4, 1972 Certificate No. 128 First Amendatory Order Docket No. 2459-U June 20, 1972 Certificate No. 93

Application of Hawkinsville Telephone Co., P. 0. Box 607, Hawkinsville, Georgia for a certificate of Public Convenience and Neces sity for authority to construct new facili ties in Pulaski County, Georgia in order to provide new toll facilities between the Hawkinsville, Ga. Exchange and the Certifi cated Exchange Area Boundary Line, via highway, U. S. 129.
Application of Atlanta Gas Light Company for Distribution System Certificate of Public Convenience and Necessity covering portion of Troup County, Georgia.
Application of Atlanta Gas Light Company for Distribution System Certificate of Public Convenience and Necessity covering portion of Crawford County, Georgia.
Application of Atlanta Gas Light Company for a Distribution System Certificate of Public Convenience and Necessity to authorize gas distribution service to Fannin County, Ga.
Application of Atlanta Gas Light Company for Amendment No. 1 to existing Distribution System Certificate of Public Convenience and Necessity No. 93 to authorize Gas Distribu tion Service to Additional Area in Walker County, Georgia.

APPLICATION FOR AUTHORITY TO ISSUE SECURITIES OR BORROW MONEY

D-NON January 13, 1972

Application of Standard Telephone Co. for authority to borrow an additional $850,000 principal amount from Rural Electrification Adminis tration (REA) , Washington, D .C .

D-NON February 23, 1972

Application of Planters Rural Telephone Co operative, Inc. for authority to borrow an additional $471,000 principal amount from Rural Electrification Administration (REA), Washington, D.C.

Docket No. 2452-U April 18, 1972

Application of Progressive Rural Telephone Cooperative, Inc. for authority to borrow an additional $650,000 principal amount from the REA, Washington, D.C.

35

D-NON May 16, 1972 Docket No. 2458-U May 16, 1972
Docket No. 2456-U June 6, 1972
Docket No. 2460-U July 5, 1972
Docket No. 2466-U July 18, 1972
Docket No. 2471-U August 1, 1972
Docket No. 2474-U August 1, 1972
Docket No. 2463-U August 15, 1972
D-NON September 5, 1972

Application of The Utelwico, Inc. for author ity to borrow an additional $190,000 princi pal amount from the REA, Washington, D.C.
Application of Plant Telephone and Power Co., Inc. for authority to borrow an additional $577,500 principal amount from the Rural Telephone Bank, an agency of the United States, Washington, D.C.
Application of Bulloch County Rural Telephone Cooperative, Inc. for authority to borrow an additional $550,000 from the REA to cover a deficiency in a prior loan made by this Company.
Application of General Telephone Company of the Southeast for authority to issue and sell at the par value of $25 per share, 200,000 shares of its Common Stock, and to sell $25, 000,000 of First Mortgage Bonds at competi tive bidding and to apply the proceeds there of to repay short term loans, and for other purposes.
Application of Cairo Telephone Company for authority to issue and sell $1,000,000 prin cipal amount of First Mortgage Bonds, bearing interest at the rate of 8% per annum.
Application of Hawkinsvilie Telephone Company for authority to borrow from Stromberg-Carlson Corporation $1,000,000 principal amount, with same to bear interest at not more than 8 3/4% per annum.
Application of Coastal Utilities, Inc. for authority to borrow an additional $775,950 principal amount from the Rural Telephone Bank, an agency of the United States, Wash ington, D.C.
Application of Quincy Telephone Company for authority to borrow $1,575,000 principal amount from the Rural Telephone Bank, an agency of United States Government, bearing interest at the rate of 5.0% per annum from the date of the Mortgage Note or Notes.
Application of Nelson Ball Ground Telephone Co. for authority to borrow $390,000 from the REA, Washington, D.C.
36

D-NON September 19, 1972
Docket No. 2482-U December 5, 1972
Docket No. 2244-U March 22, 1972
Docket No. 2244-U April 4, 1972 First Amendatory Order Docket No. 2468-U August 1, 1972
Docket No. 2484-U November 8, 1972
Docket No. 2243-U February 23, 1972
Docket No. 2243-U June 6, 1972 First Amendatory Order

Application of Georgia Telephone Corporation for authority to obtain an additional loan in the principal amount of $125,000 from Stromberg-Carlson Company.
Application of South Georgia Telephone Com pany for authority to borrow $1,260,000 from the Rural Telephone Bank, an agency of the United States, Washington, D.C.
Application of Atlanta Gas Light Company for authority to issue and sell 412,342 additional shares of its $5 par value per share Common Stock.
Application of Atlanta Gas Li^it Company for authority to issue and sell 412,342 additional shares of its $5 par value per share Common Stock.
Application of United Cities Gas Company for authority to issue and sell $2,000,000 prin cipal amount of its First Mortgage Bonds, Series F, 8 1/2 per cent, due September 1, 1995.
Application of Jupiter Industries, Inc., doing business as Chattanooga Gas Company, for authority to issue and sell $11,500,000 principal amount of its First Mortgage Sinking Fund Bonds, 8 5/8%, Series E, due September 1, 1992 and $3,000,000 principal amount of its 8.9% Registered Notes due September 1, 1992.
Application of Georgia Power Company for authority to issue and sell $2Q0,000,000 principal amount of First Mortgage Bonds and 500,000 shares of Preferred Stock and to is sue $9,754,000 principal amount of First Mort gage Bonds for sinking fund purposes.
Application of Georgia Power Company for authority to issue and sell $200,000,000 principal amount of First Mortgage Bonds and 500,000 shares of Preferred Stock and to issue $9,754,000 principal amount of First Mortgage Bonds for sinking fund purposes.

37
Hi HH

D-NON August 1, 1972 First Supplemental Order

Application of Savannah Electric and Power Company for authority to issue and privately sell through Investment Bankers $15,000,000 Principal Amount of Promissory Notes on a Unit Basis, consisting of 33 1/3% Thereof in Fifteen-Month Notes and 66 2/3% Thereof in Nine-Month Notes.

Docket No. 2243-U August 15, 1972 Second Amendatory Order

Application of Georgia Power Company for authority to issue and sell $200,000,000 prin cipal amount of First Mortgage Bonds and 500, 000 shares of Preferred Stock and to issue $9,754,000 principal amount of First Mortgage Bonds for sinking fund purposes.

Docket No. 2483-U October 5, 1972

Application of Savannah Electric and Power Company for authority to issue and sell 500, 000 Shares (approximately $9,000,000) of Class A Convertible Stock.

Docket No. 2483-U October 17, 1972 First Supplemental Order

Application of Savannah Electric and Power Company for authority to issue and sell 500, 000 Shares (approximately $9,000,000) of Class A Convertible Stock.

Docket No. 2483-U October 23, 1972 Second Supplemental Order

Application of Savannah Electric and Power Company for authority to issue and sell 500, 000 Shares (approximately $9,000,000) of Class A Convertible Stock.

Docket No. 2243-U November 1, 1972 Third Amendatory Order

Application of Georgia Power Company for authority to issue and sell $200,000,000 prin cipal amount of First Mortgage Bonds and 500,000 shares of Preferred Stock and to is sue $9,754,000 principal amount of First Mortgage Bonds for sinking fund purposes.

RATE ADJUSTMENT PROCEEDINGS

Docket No. 2453-U April 4, 1972

Petition of General Telephone Company of the Southeast for authority to increase rates and charges for Exchange Telephone Service in all the Exchanges of the Company located within the State of Georgia.

Docket No. 2202-U April 18, 1972 Second Supplemental Order

Application of Georgia State Telephone Com pany for adjustment in its rates for local exchange service.

38

Docket No. 2455-U June 20, 1972
Docket No. 2453-U August 15, 1972
Docket No. 2233-U August 28, 1972
Docket No. 2232-U September 5, 1972
Docket No. 2233-U September 19, 1972 First Supplemental Order Docket No. 2464-U November 21, 1972
Docket No. 2469-U November 21, 1972
Docket No. 2472-U December 27, 1972 Docket No. 2454-U October 11, 1972
Docket No. 2465-U December 14, 1972

Application of Bulloch County Rural Telephone Cooperative, Inc. for authority to establish new rates for telephone service rendered by the cooperative.
Petition of General Telephone Company of the Southeast for authority to increase rates and charges for exchange telephone service in all the Exchanges of the Company located within the State of Georgia, together with Petition for Reconsideration and a motion for Interim Relief.
Application of Byron Telephone Company for authority to adjust its rates for local ex changes telephone service and service con nection charges.
Application for an adjustment in the schedules of rates and charges for the intrastate ser vice furnished by Southern Bell Telephone and Telegraph Company in Georgia.
Application of Byron Telephone Company for authority to adjust its rates for local ex change telephone service and service connec tion charges.
Application of Quincy Telephone Company, Quincy, Florida, for authority to estab lish new rates for local telephone service and service connection charges for service rendered to subscribers from the Attapulgus , Georgia Exchange of that Company.
Application of Thomaston Telephone Company for authority to adjust its rates for local exchange telephone service , service connec tion charges, and charges for exchange ser vice in each of the Company's exchanges.
Application of Atlanta Gas Light Company for authority to increase its rates for gas service.
Application of Savannah Electric and Power Company for authority to increase rates for Residential, Commercial, and Industrial electric service.
Application of Georgia Power Company for authority to increase its rates for Resi dential, Commercial, and Industrial elec trical service.
39

APPLICATIONS FOR AUTHORITY TO PURCHASE AND TRANSFER UTILITY PROPERTIES

Docket No. 2247-U May 16, 1972

Application of General Telephone Company of the Southeast for authority to merge General Telephone Company of Alabama into General Telephone Company of the Southeast; as well as authority to issue $3,169,000 of outstand ing securities of General Telephone Con^any of Alabama.

APPLICATIONS FOR AMENDMENTS OF CERTIFICATES

Docket No. 2237-U January 13, 1972 Certificate 279 Amendment IV

Application of Southern Bell Telephone and Telegraph Company for an amendment of its Certificate of Public Convenience and Neces sity-Toll Lines, No. 279 for the construc tion and operation of new toll line facili ties between the Company's Pine Mountain, Georgia Exchange and the West Point Exchange of the Interstate Telephone Company.

Docket No. 2240-U January 26, 1972 Amendment No. 2 Certificate No. 12

Application of Atlanta Gas Light Company for Amendment No. 2 to Distribution System Certi ficate of Public Convenience and Necessity No. 12 to include additional territory in Carroll County, Georgia.

Docket No. 2241-U January 26, 1972 Amendment No. 1 Certificate No. 127

Application of Atlanta Gas Light Company for Amendment No. 1 to existing distribution system certificate of Public Convenience and Necessity No. 127 to authorize Gas Distribu tion Service to Additional Area in Meriwether County, Georgia.

D-NON August 1, 1972
D-NON August 1, 1972

GENERAL ORDERS
IN RE: Amendment to Rule 11 of the General Rules
RE: Amendment of the General rules of the Commission by adding a new Rule 17, so as to set forth the Commission's Standards for Evaluating Filings for Rate Increases in Re lation to the Regulations of the Federal Price Commission Issued Under the Authority of the Economic Stabilization Act of 1970.

D-NON January 13, 1972

RE; Consistency of Fuel Adjustment Clauses of Savannah Electric and Power Company with the purpose of the Economic Stabilization Act of 1970, as amended.

41

LICENSES ISSUE}) FOR SERVICE OBSERVING EQUIPMENT

COMPANY
Publishers Associated Services of Savannah, Ga. Crawford W. Long Memorial Hospital Benson1s , Incorporated Lumiside of the South, Inc. Tucker Answering Service, Inc. The Sawyer School The Fulton National Bank of Atlanta Rollins'Protective Services Co. Store Realty Corporation Hilton Reservations Service Marvin L. Walker & Associates, Inc. Transworld India Rubber Ent., Inc. Medical Society Services, Inc. Gulf Oil Co. - U.S.

LICENSE N O .
114 115 116 117 113 119 120 121 122 123 124 125 126 127

DATE ISSUED
1-6-72 2-15-72 4-18-73 4-18-72 4-18-72 4-18-72 8-28-72 9-19-72 10-3-72 10-17-72 10-17-72 12-5-72 12-5-72 12-20-72

42

SOUTHERN BELL TELEPHONE AND TELEGRAPH COMPANY Achievements and 1972 Accomplishments
Station Activity-General
Total Telephones in service for Southern Bell in Georgia at the end of 1972 were 2,413,882. This represents an increase in total telephones for the year of 221,330. The inward movement was 866,917 and the outward telephone movement was 642,360.
The improvement in service furnished to our customers con tinues, and as of the end of the year 89.8 percent of our residence customers had individual line service. Georgia continues to lead the other three Southern Bell served states in one party residence de velopment .
The number of families with telephones in Georgia served by Southern Bell has increased to about 86%. Second line usage in homes has also increased and 2.4 percent of our users now have a second line. New' services and equipment are being developed on a continuing basis in order to keep abreast of customer's needs for new and expanded ser vice. During 1972 we made 322 tariff filings involving new or changed service offerings.
Direct Distance Dialing
Of the total number of main services in Southern Bell in Georgia, 95.9 percent now have access to the Direct Dialing network and we are proceeding with plans to expand this service. The percent cus tomer dialed long distance messages in 1972 was 57.7 percent of the to tal messages.
Construction
During the year 1972, Southern Bell spent approximately $207,241,000 in Georgia for new construction to provide facilities needed to serve our customers.
Rural Service Improvement Program
During the year 1972, Southern Bell spent approximately $7,626,000 on its Rural Service Improvement Program. During the year over one half of the existing eight party customers were regraded to higher classes of service. At the end of 1972 eight party service re presented only 0.6 percent of our residence customers served and busi ness eight party is nearing full elimination.
Extended Area Service
In 1972 there were no major changes in Bell exchange calling
43

areas under the non-optional plan. However, there were alterations in Northeast Georgia when the Appling Exchange was created from portions of exchanges that had non-optional calling plans around Augusta. Rate and Revenue Activities
Among our tariff filings for 1972 were included a provision for Improved Mobile Telephone Service. A large number of inter-connec tion arrangements were provided in the tariff which allowed customers to attach their own equipment for use with the telephone network. The amount and variety of customer provided equipment for use with the tele phone network is steadily increasing.
During 1972 we created the new exchange of Appling and made numerous revisions in our exchange serving area boundaries and the associated maps on file with the Commission. These revisions are made necessary by the changing conditions of service availability and im provements in order to meet the growth needs of Georgia people in both Bell and non--Bell reas. Employees and Wages
Southern Bell employs 19,305 people in Georgia, which is an increase of 905 from January 1, 1972.
During 1972, Southern Bell paid its employees in Georgia an amount in excess of $209,558,000 in salaries and wages. Taxes
During the past year, Southern Bell in Georgia paid in lo cal and state taxes an amount in excess of $24,402,000. In addition, Georgia telephone customers paid over $6,075,000 to the State in sales tax on their telephone service.
44

GENERAL TELEPHONE COMPANY OF THE SOUTHEAST
STATION ACTIVITY-GENERAL
Total telephones in service for General Telephone in Georgia, at the end of 1972, was 178,525. This represents an increase of total telephones for the year of 14,806. The inward movement was 48,459, and the outward telephone movement was 33,653.
The improvement in service continues. As of the end of the year, the total one-party stations were slightly over 68,000 and represents 60% of the total main stations. The customers desire for a better grade of service is clearly shown by the growth in the number of one-party customers.
The number of families with telephones in Georgia, served by General Telephone, continues to increase. Now, approximately 86.3 per cent of aLl families have telephone service. New services and equipment are being developed continuously in order to keep abreast of customers needs for new and expanded service.
DIRECT DISTANCE DIALING
Barwick, Boston, Broxton, Canton, Camesville, Douglas, Eastanollee, Jasper, Lavonia, Milledgeville, Monroe, Perry, Toccoa, and Winder had access to the direct distance dialing network at the end of 1972, and the Company has a planned program for implementing direct distance dialing in all exchanges. Customers in non-DDD exchanges receive the dial rate until DDD is established.
CONSTRUCTION
During the year 1972, General Telephone spent in excess of $23 million to provide the facilities needed to serve its customers.
MULTI-PARTY ELIMINATION
General Telephone spent approximately $5 million in gross construction in our program of eliminating multi-party service, and for service improve ment in the suburban areas. At the end of 1972, 45 exchanges or 67% of our total exchanges no longer have multi-party service. The Company recognizes that multi-party service no longer meets the needs of its customers and has a program for eliminating all multi-party service.
RATE ACTIVITY
A request for rate relief to produce an additional $4.5 million in gross annual revenues was filed x*ith the Commission on January 21, 1972. On April 4, 1972, the Commission denied the petition and a petition for reconsideration was filed by the company on April 14, 1972. On August 2, 1972, with the petition for reconsideration pending, the company filed a Motion for Interim Relief. The Commission on August 15, 1972, declined
45

the petition for reconsideration and denied the motion for interim relief. As a result of that action, the Company appealed to the courts and the outcome was pending as 1972 ended. EMPLOYEES
General Telephone employs 1,468 people in Georgia, which is an increase of 120 since January 1, 1972. To obtain this increase, the Company hired 562 new employees and lost 442.
We continually evaluate our personnel requirements, with respect to service requirements, and make adjustments to our force as required.
46

GEORGIA POWER COMPANY
Georgia Power Company serves a 57,000 square-mile area of the state that encompasses 153 of the state's 159 counties. At the end of 1972, the company's customers totaled 1,018,684. Its residential customers averaged using 9,395 kilowatt-hours of electricity and averaged paying 1.90 cents for each kilowatt-hour of electricity used. In 1971, residential customers used an average of 9,146 kilowatt-hours and paid an average of 1.73 cents for each kilowatt-hour.
The maximum system demand for electricity occurred in 1972 on July 24 at 3 p.m., when a peak hour demand of 7,410,900 kilowatts was recorded. At the same time of the demand, the company was generating 5,894,300 kilowatts and receiving 609,000 from associated companies and 1,157,600 kilowatts from non-associated companies. The rated capability of Georgia Power's generating plants was 7,299,900 kilowatts. Projected reserves for the summer of 1973 for Georgia Power and its associated companies are adequate, standing at approximately 13.5 percent.
Georgia Power's investment for 1972 in construction of new facilities totaled $474.3 million and is estimated to expand to $535 million in 1973. The Company's total requirement for funding new construction scheduled for 1972-1974 will be approximately $1.5 billion. During this same period, the Company's total expenditures for enviromental purposes is expected to total $161.3 million.
Construction activities during the year included work at Plant Bowen near Cartersville, on Units 2, 3, and 4. Unit 2 first went into operation on June 23 and after a three-month period of testing, it was accepted for commercial operation on September 26. The nameplate rating is 700,000 kilowatts. Units 3 and 4 are scheduled to go into operation in 1974 and 1975 respectively. At the Edwin I. Hatch Nuclear Plant near Baxley, construction continued on Units 1 and 2. Unit 1 is scheduled to to into service in 1974. Excavation work began in 1972 on Wallace Dam near Eatonton, but work was suspended due to unfavorable outlook for obtaining sufficient capital funds. At Plant Wansley near Franklin, site clearing was substantially completed in 1972. The first unit is scheduled to go on line in early 1976. Units A, B. and C of Plant Vogtle's combustion turbines near Waynesboro were completed and placed in commercial operation during the year.
In 1972, Georgia Power spent $138 million for new transmission and distribution facilities. This included some 471 miles of trans mission lines and 721 miles of overhead distribution lines and 584 miles of underground distribution lines.
47

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The Company's 1972 financing required raising capital of $400,000,000 from external sources. During the year, The Southern Company paid into the company as common equity $100,000,000 and the sale of first mortgage bonds and preferred stock raised an additional $300,000,000. Proceeds from the sale of all securities, together with funds generated internally, were used to finance the company's 1972 construction program and to reduce interim loans.
In June of 1972, Georgia Power filed with the Georgia Public Service Commission a request for a rate increase that would yield $47.9 million in additional annual revenue. Hearings on the request began in August and continued intermittently through November 13. On December 14, the Commission granted an increase of $17.8 million.
At the close of 1972, the company's request before the Federal Power Commission seeking an increase in rates charged to rural electric cooperatives and municipal systems was still pending. The requested increse was being billed to these customers, subject to existing contracts and to refund in accordance with the Federal Power Commission's decision when rendered.
48

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SAVANNAH ELECTRIC AND POWER COMPANY
Savannah Electric and Power Company x^as serving 74,595 customers in Chatham, Effingham, Bryan, Bulloch and Screven Counties at the end of 1972. This was an increase of 1,317 customers during the year and indica tive of continuing growth in the company's 2,000 square-mile service area.
To accommodate the growth patterns established by existing and new energy consumers, Savannah Electric's 1972 construction program amount ed to $19.2 million; more than six times its net income for the same period. Major projects were: site development and initial construction on Unit One at the Effingham Power Plant on the Savannah River and three 230,000 volt transmission lines, one of which is an additional interconnection with Georgia Power Company.
Because of inadequate earnings, the company has been forced to delay by one year the completion date of the Effingham Plant and two of the new transmission lines. It is now anticipated that the 175,000 kilowatt generator at Effingham will be in service during 1976.
A major effort in 1972 was directed toward seeking adequate rate relief. On March 23, Savannah Electric petitioned the Georgia Public Service Commission for a 14 percent rate increase amounting to $3.5 million. An annual increase of $787,000, or only 3 percent, was approved and made effective November 1, 1972. The company has filed a civil action suit in Fulton County Superior Court against the Commission in an effort to obtain the remainder of its original rate request. The Court has not yet ruled on this case.
Faced with declining revenues and reserve capacity, Savannah Electric's marketing program is directed at a more economical utilization of equipment used to generate and deliver electricity and a more economical use of electric energy by the consumer. This is being accomplished by promoting off-peak uses of electricity for heating and lighting, and by showing customers how they can reduce waste and get the most for their electric dollar.
New business results during 1972 indicate a sustained preference for electric energy. A record 1,184 new homes were completed on the com pany's lines with 68 percent using electric heating, 80 percent electric water heating and 94 percent electric cooking.
Construction of all kinds nearly doubled in value over 1972 in Savannah and Chatham County. Even though city building permits were down approximately $2 million, total construction dollars invested in Chatham County topped $43 million, an increase of $20 million.
49

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ATLANTA GAS LIGHT COMPANY
Atlanta Gas Light Company served 195 municipalities and 83 in Georgia with natural gas on December 31, 1972. Number of gas customers on that date was 655,614, an increase of 17,928 over the previous year-end figure. Of the increase, 14,378 were residential customers, 3,546 commer cial, four fewer industrial due to reclassifications and eight public authorities.
OPERATING REVENUES
During the twelve-month period ended December 31, 1972 Operating Revenues decreased $5,209,289 to $182,629,806. Net income decreased $2,898,052 to $6,641,621 and earnings available for common stock amounted to $1.21 per share as compared with $2.11 for the previous corresponding period. The decline in revenues and earnings resulted principally from a winter substantially warmer than the previous winter and not favorable for the sale of heating gas, from the curtailment programs of pipeline suppliers and from Increased operating costs.
AGL RATE CASE Docket No. 2472
On June 30, 1972 a petition was filed with the Georgia Public Service Commission asking for a general increase in gas rates. The proposed rates would have provided an annual increase in revenue of about $15,700,000, based on a test year ended September 30, 1972 ^ and would have been spread approximately equally on a percentage basis among the various classes of customers. Due to continually rising operating costs and the decline in earnings, a substantial increase in rates was considered necessary. On December 27, 1972, after hearings, the Commission granted an increase in annual revenues of approximately $9,351,809, based on a test year ended September 30, 1972.
EXPENSES
Operating expenses for 1972 totalled $169,874,873 a decrease of $2,347,599. Of total operating expenses, cost of gas accounted for $120,375,910 (or more than 70 percent), compared with $120,745,811 in 1971. Construction expenditures amounted to $27,303,124 for the year.
GAS SUPPLY FROM PIPELINE COMPANIES
The Company has long-term contracts with its three natural gas pipeline suppliers for maximum daily deliveries aggregating 854,600 Mcf. These consist of firm service from Southern Natural Gas Company of 737,500 Mcf per day, from Transcontinental Gas Pipe Line Corporation (Transco) of 107,600 Mcf per day and from South Georgia Natural Gas Company of 9,500 Mcf per day.
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We also have contracts with Transcontinental for underground storage service of up to 6,314,670 Mcf at any one time and delivery there from at a daily rate of up to 124,935 Mcf; for liquefied natural gas of an aggregate of 130,000 Mcf during each winter season at a daily rate of 26,000 Mcf; and for peaking service at 4,500 Mcf per day for an annual total of 135,000 Mcf.
Because of increased consumption of natural gas and a decline in proved reserves, annual sales nationally continued to exceed additions to proved reserves in the continental United States. Environmental considera tions and economic factors have delayed development of potential gas sources. Because of nationwide gas supply conditions, the FPC has directed inter state gas pipeline companies to file curtailment plans. Such plans have been filed by the Company's suppliers for the stated purpose of protecting sales to residential and commercial customers. The implementation of these plans has adversely affected the Company's sales of interruptible gas to certain of its industrial customers. Recently the FPC has stated that as a matter of general policy certain priority of service categories should be used during periods of curtailment by interstate pipeline companies. These categories provide that residential and small commercial service are en titled to the highest priority and that large volume industrial users that can use other fuels are accorded the lowest priority. Under this policy it is likely that all the Company's pipeline suppliers will eventually have plans which conform substantially to these priorities. There can be no assurance that limitations on interruptible service will not continue or even increase or that restrictions will not be imposed limiting the addition of interruptible or firm customers.
The Company's pipeline suppliers have indicated that the Company may expect no additional firm pipeline gas supplies for the next three or four years and that increases in peak requirements must be met by other means. The suppliers are engaged in efforts to secure additional quantities of gas, and while they have not indicated that any new supplies will be available, they have indicated that any new supplies of gas will cost considerably more than at present. These increased costs would flow through to the Company and, in accordance with the purchased gas adjust ment rider approved by the Georgia Public Service Commission on February 19, 1970, to the Company's customers.
The Company's existing gas supply contractual arrangements and existing peak-shaving facilities are sufficient under normal winter condi tions to take care of existing residential and firm commercial customer requirements, and, by further expansion of its peak-shaving facilities, the Company believes that it will be able to take care of anticipated growth of residential and firm commercial customers.
51

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PEAK SHAVING
To supplement existing sources of gas supply to meet peak demands, the Company has constructed a liquefied natural gas plant adjacent to its propane plant at Riverdale, just south of Atlanta. During warm weather, natural gas from pipeline suppliers is cooled to a liquid state, reducing it to l/600th of its original volume, then stored in two cryogenic tanks until required during cold weather. When needed to meet peak loads, it will be vaporized and fed back into the system. This plant adds 200,000 Mcf per day peak-shaving capacity to the company's system.
The Company also maintains eight peak-shaving plants which supply propane-air gas to its system to supplement the gas supply in very cold weather or in emergencies. Storage capacity of these plants is 13,456,140 gallons of liquid propane. The rated daily gas-making capacity based on a twenty hour day totals 194,340 MCF of natural gas equivalent and the number of days that full capacity can be maintained without replacement of liquid propane varies from three to ten days, averaging six days.
FINANCING
The public offerings of $15-million of 8 1/8 per cent first mortgage bonds, due July 1, 1968, and 75,000 shares of 7.84 per cent cumulative preferred stock were announced in July.
The bonds were offered at 100.00 per cent and accrued interest, to yield 8.125 per cent, while the preferred stock is priced at $100 per share, to yield 7.84 per cent, plus accrued dividends from July 18, 1973.
LITIGATION
Southern has implemented a curtailment plan which it has filed with the FPC. The plan has the effect of reducing the volumes of natural gas supplied by Southern to the Company for resale on an interruptible basis, including interruptible sales to Georgia Power Company and to Savannah Electric and Power Company for electric generation. The Company as well as other interested parties, has objected to the plan on various legal grounds before the FPC and in a suit against Southern and the FPC filed on January 10, 1972 in the Federal District Court for the Northern District of Georgia. The suit seeks injunctive relief against both defendants and includes a damage claim by the Company against Southern for breach of contract. Rulings adverse to the Company were entered in the FPC proceeding and in the District Court and appeals from both rulings were filed in the United States Court of Appeals for the Fifth Circuit. On February 7, 1973 the Court of Appeals affirmed the FPC order, and part of the District Court order, but remanded the proceedings to the District Court to determine issues relating to Southern's liability to the Company for damages. Motions for rehearing filed by the Company and other parties are now pending before the Court of Appeals.
52

-- I --.-- -- .1

During 1971 DeKalb County, Georgia, adopted an ordinance which has the effect of imposing charges upon the Company and other utilities for the privilege of using the rights-of-way of public roads for their facilities. In 1972, following the institution of legal proceedings concerning the 1971 ordinance referred to above, the County adopted a second ordinance which has substantially the same effect. The Company has filed separate suits to enjoin the enforcement of the two ordinances in the Superior Court of DeKalb County Georgia. The County contends that $1,820,000 was due under the 1972 ordinance as of September 1972. A final judgment in favor of the Company on all issues respecting the 1971 ordinance was affirmed by the Supreme Court of Georgia and certiorari was denied by the United States Supreme Court.
In the Company's suit respecting the 1972 ordinance, the trial court granted an interlocutory injunction in favor of the Company. In the opinion of counsel, the decision by the Supreme Court of Georgia concerning the 1971 ordinance should be controlling with respect to the second ordinance enacted by the County in 1972.
53

GAS PIPELINE SAFETY
Calendar year 1972 completes the fourth year of the certification of the Gas Safety Office of the Georgia Public Service Commission with the Office of Pipeline Safety (OPS). During this period the Commission regulated the safety standards of all privately-owned and portions of 26 municipally-owned gas distribution systems. A gas safety engineer and secretary were assigned full-time to this program for the purpose of inspecting gas systems, monitoring safety programs of the gas operators, and conducting the necessary administrative business of the office.
The following milestones were accomplished during the aforementioned period:
1. The gas safety engineer attended the Appalachian Underground Corrosion Short Course at Morgantown, West Virginia, from May 16 through May 18, 1972.
2. A total of 11 municipally-owned systems were visited to further the cause of gas safety in Georgia.
3. On March 1, 2, and 3, 1972, the gas safety engineer attended the Ford, Bacon and Davis Gas Pipeline Safety Seminar in Monroe, Louisiana.
4. A new, quick-reference, card filing system was established in the gas safety office for municipally-owned systems under the partial jurisdiction of this Commission. This card file contains the following basic information:
*Name of gas superintendent *Areas served under Commission jurisdiction *Number of customers *Size of crew *System installation date *Gas supplier *Extent of plastic pipe use *Contract demand ^Maximum load *Peak shaving data, if any *Number and type of transmission lines *Nuniber of border stations *Name of consulting engineer *Visit dates *Additional remarks
5. Local legislation in Georgia for the past twelve years was reviewed in order to verify Commission jurisdiction over portions of certain municipally-owned gas systems. As a result of this study, two gas systems, Austell and Manchester, were eliminated from the jurisdictional authority of the Commission. This reduces the total number of municipally-owned gas systems under partial jurisdiction from 28 (previously reported) to 26.
54

6. Mr. Cesar DeLeon, OPS, visited this office on May 11 and 12, 1972, for the purpose of monitoring the gas safety program of this office.

7. On June 26, 1972, the gas safety engineer represented the Commission at the Gas Section Conference of the Georgia Municipal Association at Jekyll Island, Georgia.

8. Summarized below are the visits made by the gas safety engineer to gas operators in Georgia.

DATE

LOCATION

SYSTEM

PURPOSE

2/23/72

Norcross, Ga.

Atlanta Gas Light

Low pressure investigation

3/21/72 3/21/72 3/21/72 3/23/72

Buford, Ga.

Municipal

Gainesville, Ga.

United Cities

Lawrenceville, Ga. Municipal

Jackson, Ga.

Municipal

Inspection Inspection Inspection Inspection

3/23/72

Monticello, Ga.

Municipal

Inspection

3/31/72

Marietta, Ga.

Atlanta Gas Light

Accident investigation

4/4/72

Cartersville, Ga. Municipal

Inspection

4/4/72

Summerville, Ga.

Municipal

Inspection

4/4/72

Adairsville, Ga.

Municipal

Inspection

4/4/72

Rome, Ga.

Atlanta Gas Light

Inspection

4/7/72

Covington, Ga.

Municipal

Inspection

4/25/72

Panthersville, Ga. Atlanta Gas Light

Accident investigation

5/23/72

Dallas, Ga.

Municipal

Inspection

5/25/72

Winder, Ga.

Municipal

Inspection

5/26/72

Commerce, Ga.

Municipal

Inspection

5/31/72

Columbus, Ga.

Gas Light Company of Columbus

Inspection

55

9. Two gas ignition accidents, neither having been major explosions, were investigated by the gas safety engineer during the first half of CY72. One resulted from third party damage; the other from lightning damage. The third party damage occurred on April 24, 1972, when a boring machine operated by an out-of-state contractor penetrated a 6-inch, 30 psig main owned by the Atlanta Gas Light Company. The main had been located and marked for the contractor prior to boring, but the contractor did not utilize manual digging to pinpoint the exact depth of pipe. The escaping gas ignited and burned an electric utility pole nearby. This accident was reported to OPS on Form DOT F 7100.1 by Atlanta Gas Light on April 25, 1972.
The other accident involving gas ignition occurred on March 29, 1972, when lightning struck a 7200 volt power line, causing the line to fall across a chain link fence near a residential gas meter set. Current from the fallen power line traveled along the fence to the fuel line, causing a break in the line and igniting the escaping gas. Considerable fire damage resulted to the frame dwelling adjacent to the meter installation. This incident also was reported to OPS on March 31, 1972.
10. On April 18, 1972, the gas safety engineer attended the NTSB symposium on third party damage, held in Washington, D. C.
11. The gas safety engineer represented the Commission at the OPS/State Agency regional work session in Atlanta on April 13 and 14, 1972.
Three (3) serious natural gas explosions occurred in Georgia during the last half of CY 1972. The first occurred as the result of third-party damage on July 17, 1972, when a bulldozer uprooted a tree under which a gas service line was installed. The roots of the tree pulled the service line open beneath an old home being remodeled for use as a restaurant in Atlanta. The leaking gas was ignited, and the resulting explosion destroyed the structure. The source of ignition is thought to have been the water heater pilot lights, and extensive fire followed the explosion. Five (5) construction workers were hospitalized with b u m s , but there were no fatalities. A complete investigation, including photographs, was made by the gas safety engineer.
The second explosion occurred in an annex building of Grady High School, Atlanta, when a six-inch main broke and allowed leaking gas to seep into the building. The gas safety engineer assisted Mr. H. M. Shepherd, Deputy Chief, Pipeline Safety Division of NTSB, in an extensive investigation of this accident. One person died, seven others were injured, and damage to the building was in excess of $200,000.
In addition, the gas safety engineer forwarded photographs of the site to NTSB and supervised submittal of the failed section of pipe to the National Bureau of Standards. Neither the cause of the pipe failure nor the source of ignition could be determined readily, but there were indi cations of soil erosion beneath the cast iron pipe.
56

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The third, and most severe, explosion occurred in Claxton, Georgia, on Thanksgiving Day, November 23, 1972. The Claston Poultry Company sustained approximately $1 million damage by an explosion which killed two people and injured five others. Because this facility x^as supplied natural gas by a municipally-owned system, this Commission had no legal authority to conduct an accident investigation. Nonetheless, the gas safety engineer coordinated information available at that time to OPS and assisted various parties involved in clarifying the situation surrounding the accident.
During the last half of CY 72 this office took action against Atlanta Gas Light Company to enforce compliance to the requirements of 49 CFR 192.165. Compliance is in process at this time. No additional require ments, however, have been added to the basic Minimum Standards.
Attendance by the gas safety engineer to seminar and training programs occurred during the first half of CY 72 and were reported at that time.
57

WESTERN UNION
The benefit and convenience of 24-hours per day telegraph service was made available to all residents and businesses in the state of Georgia effective December 10, 1972, via toll-free telephone to our Hoorestown, New Jersey Centralized Telephone Bureau (one of three such centers in the United States. The other two, serving separate geographic areas, are located at St. Louis and Reno).
Further expansion of Western Union mailgram service resulted in an increase of 100% in volume, 1972 vs. 1971.
Western Union's telex and TWX population 1972 vs. 1971, increased nationally by 9%^ and 8% respectively, and within the state of Georgia by approximately the same percentages, respectively. We acquired the TWX system from AT & T in April, 1971.
Western Union has announced plans for launching the first private enterprise domestic satelite in April, 1974, and incident to this forthcoming event, land was acquired and plans were outlined during 1972 for construction of one of five earth stations in the geographic area served by our Company's Atlanta Area Headquarters Office.
There were no rate Increases for any type of intrastate service in the state of Georgia during 1972.
We concluded during 1972 our long-range program of converting to agency operation the remaining unprofitable and un-needed offices in Georgia, and no further such conversions are contemplated for 1973, or the near foreseeable future.
Plans were formulated during 1972 to lay the ground-work for a totally Mechanized Billing System that will produce "one bill for all services" (except TWX, PWS and Broad Band/Hot Line) to our customers in lieu of several different bills now manually produced. We expect to implement this improvement on or about December 1, 1973,
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