NiVERSITY OF GEORGIA OCT 2 2 1974 LIST OF CHAIRMEN OF THE COMMISSION M 4J9 BOUND B Y THE N AT IO N A L LIBRA RY BINDERY CO. OF GA. 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 *1 on o LQO to 1884 1184 to 1885 1385 to 1890 1890 to 1900 1900 to 1901 1901 to 1903 1903 to 1905 1905 to 1907 1907 to 1909 1909 to 1911 1911 to 1922 1922 to 1926 1926 to 1933 1933 to 1937 1937 to 1949 1949 to 1960 1960 to 1969 1969 to 1971 1971 to ---- LIST OF CHAIRMEN OF THE COMMISSION James M. Smith Campbell Wallace James M. Smith Campbell Wallace L.N. Trammell T.C. Crenshaw Spencer Atkinson J.P. Brown H.T7. Hill S .G . McLendon H.W. Hill C.M. Candler Paul Trammell James A . Perry Jud ?. Wilhoit W.R. McDonald lia11 L . McWhor ter Crawford L. Pilcher William H. Kimbrough Ben T. Wiggins 1879 to 1882 1 o n o to 1384 1184 to 1385 1885 to 1890 1890 to 1900 1900 to 1901 1901 to 1903 1903 to 1905 1905 to 1907 1907 to 1909 1909 to 1911 1911 to 1922 1922 to 1926 1926 to 1933 1933 to 1937 Q 7 to 1949 1949 to 1960 1960 to 1969 1969 to 1971 1971 to S T A T E OF G E O R G I A JIMMY CARTER, GOVERNOR 101st Report of GEORGIA PUBLIC SERVICE COMMISSION 244 Washington St., S. W. Atlanta, Georgia 30334 January 1, 1973 to January 1, 1974 Ben T. Wiggins, Chairman William H. Kimbrough, Vice Chairman Mac Barber, Commissioner Robert C. (Bobby) Pafford, Commissioner Ford B. Spinks, Commissioner A. 0. Randall, Secretary -1- - \V pipi"; ' ' i' 7.. >S?5ELF COMMISSIONERS BEN T. W IG G iN S.chairman WILLIAM H. KIMBROUGH, VICE CHAIRMAN MAC BARBER ROBERT C (BOBBY) PAFFORD FORD B. SPINKS (Icargia `Public JwUirc (Jumutiesiou 2 4 4 W A SH IN G TO N S TR E ET, S-W . At l a n t a ,G e o r g ia 3 0 3 3 4 A. O. R ANDALL,secretary To His Excellency Jimmy Carter Governor of Georgia Dear Governor Carter: As provided by law, the Georgia Public Service Commission submits herewith the 101st Annual Report of the regulatory activities of the Commission for the year ending December 31, 1973. Respectfully submitted, 2 - - 101ST MUTUAL RE.POKE Introduction The Annual Report of the Georgia Public Service Commission covering the activities for the year ending December 31, 1973 is submitted herewith in compliance with the law. The personnel of the Commission as of December 31, 1973 were as Ben T. Higgins, Chairman ITilliam H. Kimbrough, Vice-Chairman Mac Barber, Commissioner Robert C. (Bobby) Pafford, Commissioner Ford B. Spinks, Commissioner A list of the Commission staff personnel at the end or the year 197 is as follows: Administrative Section David 0. Benson, Executive Director A.O. Randall, Executive Secretary John R. Price, Reporter Thomas G. Arnold, Administrative Officer Mrs. Jean B. Trisch, Accounting Assistant Mrs. Jackie B. Mercer, Personnel Assistant I Utility Engineering; Section Robert B. Alford, Chief Utilities Engineer James J. Crudup, Utilities Engineer III Truman E. Holland, Utilities Engineer III Billy Glenn Collier, Utilities Engineer III Robert C. Evans, Utilities Engineer III Jackson A. Dodd, Utilities Engineer II George Thomas Fortner, Utilities Engineer II Ned Guillebeau, Utilities Engineer II Palmer B. Lester, Utilities Engineer II Donald E. McCoy, Utilities Engineer II Douglas N. Moski, Utilities Engineer II Auditing Section Frank G. Heald, Chief Utilities Financial Analyst John T7. Buckingham, Utilities Analyst III B.B. Knowles, Utilities Analyst III Irvin G. Bentley, Utilities Analyst II James H. Cole, Utilities Analyst II Leonard C. Gonsalves, Utilities Analyst II Donald H. Craig, Utilities Analyst II Nolan E. Ragsdale, Utilities Analyst II Gas Inspection Mitchell Ingram, Gas Safety Inspector II Charles F. Spencer, Gas Safety Inspector II Transportation Section L. Thomas Doyal, Sr., Senior Transportatation Rate Specialist III and Chief Law Enforcement Officer Horace F, Hartley, Senior Transportation Rate Specialist III Gordon E. Ganka, Transportation Rate Specialist III Albert R. Bush, Transportation Rate Specialist II George E. Thurmond, Transportation Rate Specialist II Larry L. Carpenter, Registration Officer Davis R, Meeks, Supervisor,Law Enforcement Officers Special mention should be made of the retirement on December 31st of Mr. Frank G, Heald, Chief Utilities Financial Analyst, who was approach ing his 70th birthday and xtfho, with his family, had moved to Athens,Georgia. Mr. Heald had ably served in the Utility Rate Division since his employment in April of 1951. PUBLIC HEARINGS During the year the Commission conducted seven hundred thirty (730) public hearings. Public hearings commence on the second and fourth Tues days in each month and continue on successive days thereafter until all current applications and petitions have been disposed of. All matters docketed for public hearing are heard by the entire Commission in open session, a majority of the Commission constituting a quorum. MOTOR CARRIER CERTIFICATE AND LICENSE FEES The Commission is charged X7ith the responsibility of collecting and accounting for motor carrier certificate and license fees. The total cer tificate, permit and license fees collected and remitted to the State Treasurer and Fiscal Division, Department of Administrative Services, during the year 1973 are as follows : January 1. 1973 to January 1. 1974 Certificate Fees at $35.00 each, and certificate transfer fees at $7.50 each ........ 13,057.50 Registration Permit Fees at $25.00 each and amendment fees at $5.00 each ............... . 53,460.00 Regular License Fees at $25.00 each and $5.00 each ... 214,155.00 Regular Identification Stamp fees at $25.00 each; Regular Identification Stamp fees at $1.00 each; Replacement stamp fees at $5.00 each; Replacement stamp fees at $1.00 each; and Multiple Registration stamp fees at $1.00 each....... 711,449.00 TOTAL $992,121.50 -4- In addition to the foregoing,certificate and license fees or $992,121.50 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 $560,000.00, which was collected by the Property and License Tax Unit of the Department of Revenue, making a total of' $1,552,121.50 avail able for appropriation to the Commission. COMMISSION DECISIONS During the year 1973 the following Executive Session decisions were made by the Commission: Certificate applications: Approved . 410 Denied ...................... 16 Withdrawn . 124 Dismissed ....... 16 Total 566 Certificate transfer applications: Approved .. 43 Denied ................................ 1 Dismissed .......................... ......._____ L- Total 46 Certificate amendment applications: Approved ........... 109 Withdrawn .... 6 Denied ........................ 12 Total 129 Certificate control through transfer of capital stock ................. 11 Certificates cancelled .............. 48 Certificates suspended ................... 116 Certificates reinstated..... ................... 103 Total 283 Registration Permits Issued (undetermined) Registration Permits cancelled (undetermined) Rules Nisi issued (other than for insurance) ..... 41 Rules Nisi dismissed (other than insurance) .... . 30 Total 71 Insurance and Permit Rules Nisi issued (undetermined) Miscellaneous ...... ........................ 115 Total 115 Transportation Rates & Service Department: Railroads & Motor Carriers: Docket Decisions ......................... Non-Docket decisions ............... Total 16 1039 (Continued next Page) -5- 1,105 Utility Rates & Service Department: Docket Decisions Non-Docket decisions TOTAL ALL DECISIONS Total 142 171 *,*** 2,628 AMENDMENTS To LANS and RULES of the GEORGIA PUBLIC SERVICE COMMISSION Issued January 1, 1973 Following the re-publication of the Laws and Rules of the Commission on January 1, 1973, which were in effect at that time, the 1973 Session of the General Assembly of Georgia enacted laws which necessitated amendments to certain of theCoramission's Rules and the adoption of nex7 rules under the Georgia Territorial Service Act No. 94, approved on March 29, 1973, applicable to Electric Membership Corporations. The amended rules and new rules were duly published as required by law, by mailing copies thereof to each and every utility affected that is subject to the jurisdiction of the Commission. By reason of the length of some of the Orders issued, they are not reproduced herein, but copies thereof can be obtained by any one desiring same on request. The following General Motor Carrier Rules were amended: Rule 16 was amended by adding sub-paragraph (g) thereto relating to amendment of Chapter 68-6 of the Code of Georgia of 1933 by adding a new Code Section, to-wit: Code Section 68-611.1, titled Temporary Emergency Authority. Rule 25 was amended to conform to approval of Act No. 331, re lating principally to registration of motor vehicles and fees therefor. Service Observing Equipment License Rules: The Rules and Regulations for employment and use of any equipment or device, which is furnished by a telephone company, were amended by Order issued July 17, 1973, by adding thereto Rule 5* Rules 1-3 were adopted by Order of May 10, 1967 and Rule 4 was adopted by Order of June 19, 1968. Rule 5, being relatively short, is repro duced below. RULE 5 It shall be the duty and obligation of any licensed user of Service Observing Equipment to prominently display on every telephone instrument subject to service observing a notification to such effect. Said notifi cation shall be in the form of official gummed labels which will be issued by the Commission at the time a license is issued. Failure to prominently display the notification at all times shall be cause for revocation of the license. Holders of licenses for Service Observing Equipment issued prior to the effective date of this Rule shall 6 - - within thirty (30) days from said effective date obtain the requisite number of labels from the Commission and affix the same to those in~ struments which are subject to service observing. It shall be in cumbent upon the telephone company to supply the Commission with a sufficient quantity of labels in the form required. Further, the Telephone Company shall, with future issuances of telephone directories published 30 days from the effective date of this Order, affix an asterisk (*) in the margin adjacent to said firm or com pany telephone number listing licensed to have service observing equip ment. This asterisk shall make reference to the following paragraph contained in the general information section of said directory: 'This Company or Firm has been licensed by the Georgia Public Service Commission to use service observing equipment pursuant to Georgia Code Annotated Section 26-3005". Any person violating any of the provisions of this Rule shall be guilty of a felony and upon conviction thereof, shall be punished by imprisonment in the penitentiary for not less than one nor more than five years, or a fine not to exceed $10,000, or both, pursuant to Georgia Code Annotated Section 26-3010 (Georgia Laws 1968) GEORGIA TERRITORIAL ELECTRIC SERVICE ACT RULES and REGULATIONS The following is a list of the Rule Number and Caption Title of 8 Rules and Regulations on assignment procedures, pursuant to the Georgia Territorial Electric Service Act No, 94, approved March 29, 1973. These Rules and Exhibits attached thereto consume about ten pages and, as stated above, are abbreviated here as copies thereof may be obtained from the Commission on request: Rule 1 Rule 2 Rule 3 Rule 4 Rule 5 Rule 6 Rule 7 Rule 8 m General Applications Maps Specific Procedures - Line Maps Specific Procedures - Area Maps Service & Notice of Application - Notice of Hearing Intervention Agreements on negotiations Exhibits "A", ,iB",t,Cu and "D" -7- AREA TRANSPORTATION SUPERVISION Area Transportation Supervisions a part of the Commission1s Transportation Division under direction of David 0. Benson, is headed by L. T. Doyal, Assistant Director, whose duties include those of acting as Chief of Area Transportation Supervision. In addition, this section is composed of a supervisor of area super visors and eleven Area Transportation Representatives. The Area Transportation Representatives 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. The Commission*s Area Transportation Representatives make detailed inspections of the general operations of motor transportation companies under the Commission*s jurisdiction to determine if they are performing operations within the scope of authority granted by the Georgia Public Service Commission and the Interstate Commerce Commission, and in accordance with the Commission*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 regulated 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 and conducting periodic road checks. In addition, the Area Transportation Repre sentatives perform other specifically designated assignments related to the functions of the Public Service Commission. During 1973, a number of 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 Transporta tion Representatives operate continuously in their assigned territories and con tinue vigorously 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 Transpor tation Representatives patrol the highways, investigate industrial sites and examine all other locations where the illegal trucker is possibly operating. Illegal trucking operations throughout the United States siphons off millions of dollars annually from legitimate motor carrier operations with whom the public depends oh to ship or receive their wares. The Commission*s Area Transportation Representatives are highly trained in detecting the illegal operator and filtering through the quagmire of fictitious leases, freight bills, logs, etc. which usually accompany such operations. During 1973, the Commission's enforcement section was responsible for 657 arrests made throughout the State stemming solely from intra state and interstate "for hire" operations without proper authority from either the Georgia Public Service Commission or the Interstate Commerce Commission. These cases resulted in bonds totaling $140,369.00, being posted in the counties where arrests were made, and represents an eleven percent increase in the number of cases made in 1972. The Commission, who helped pioneer the development of the Uniform Registration Standards of Public Law 89-170 applicable to carriers operating solely in inter state commerce under authority granted by the Interstate Commerce Commission, or carriers operating in interstate commerce specifically exempt from the jurisdiction of the Interstate Commerce Commission, continues in its fifth year of operation 8 - - subject to the above standards. These standards were promulgated by the Interstate Commerce Commission pursuant to the provisions of Section 202(b)(2) of the Inter state Commerce Act (49 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 standards and has actively engaged in assisting other states in effectuating these procedures. In 1971 the Interstate Commerce Commission promulgated certain changes in the standards to provide for a uniform $5.00 maximum vehicle identification fee. This amendment resulted in certain Georgia laws pertaining to registration of interstate vehicles being in conflict with the federal law. The Commission, in its desire to comply fully with the P.L. 89-170 Standards, suggested certain changes in the law whereby the registration for all vehicles, both intrastate and interstate, would be $5,00 per vehicle per year. The 1973 Legislature enacted a bill resulting in vehi cle registration and identification fees for all vehicles domiciled in Georgia and vehicles domiciled in states where no reciprocity existed with Georgia, being reduced from $25.00 to $5.00 annually. All other motor carrier vehicle registra tion and identification fees were increased from $1.00 to $5.00 annually. This law became effective for the Commissions 1974 vehicle registration period and places the Commission in complete compliance with P.L. 89-170 Federal Standards. The Area Transportation Supervision Section continued under the cooperative agreement between the Commission and the Interstate Commerce Commission and con ducted several joint investigations with personnel of that Commission for the pur pose of eliminating illegal transportation practices of certain carriers and shippers. As a result of these investigations, federal suits were brought by the I.C.C. against certain large shippers for aiding and abetting illegal transportation resulting in substantial fines being assessed against those shippers. Our Area Transportation Representatives continued in 1973 the Commission*s new program designed to assist in the protection of the public using the highways of Georgia and to apprise the carriers of the operating habits of their drivers. Our Area Transportation Representatives are provided with an appropriate observation fora and a tape recorder to enable them to observe motor carrier vehicles while in operation, recording their description, location of inspection, activities and ope rational violations. Each representative is responsible for making an assigned, number of these observation reports daily and copies of the reports 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 responsibility of processing all motor carrier insurance filings as well as maintaining all motor carrier files, was responsible for processing all interstate registration of autho rity applications and amendments thereto and the issuance of all intrastate and interstate Georgia Public Service Commission motor vehicle registrations which resulted in the collection of fees summarized on Page 4 of this report. During 1973 the eleven Area Transportation Representatives performed 2S230 inspections for operating authority and proper vehicle registration and identifica tion, resulting in direct collection of $31,750.00 in vehicle registration fees where vehicles had not been properly registered with the Commission by the carriers. They also performed 1,594 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 Commission and, in addition, performed 3,483 other miscellaneous functions in the pursuit of the Commission*s business, including personal contacts, special investigations, vehicle observation reports, etcetera. -9 - TRANSPORTATION General During 1973, the Commission and its Transportation staff officially disposed of, in addition to the formal proceedings listed belox? (most of which were made the subject of written opinions), 1,097 transportation rates and services matters, a considerable number of which required lengthy studies and investigations in the field. Docket No. Date 727-R 3/30/73 1st Supp. 737-R 741 -R 3/20/73 FORMAL CASES FOR YEAR 1973 Subject Application of Southern Railway Company for authority to discon tinue agency service at Trenton, to discontinue handling LCL freight at that point, to dismantle the station building at Trenton, and to substitute a prepay station for the handling of carload freight only. Application of railroads operat ing intrastate in Georgia for au thority to increase their intra state rates and charges to the level authorized by the Interstate Commerce Commission in Ex Parte 281, 281-A, and 281-B. Disposition Approved. Approved, to 281-B level, with exceptions as to rates on carload shipments of LP gas from Milner and as to those rates under sus pension by the ICC. 742-R 4/25/73 Application of Atlanta and West Point Railroad Company for au thority to consolidate the agency facilities of its LaGrange and West Point agencies at LaGrange and to permit the LaGrange agency to serve in a dual capacity as agent of LaGrange and West Point. Approved. 4928-M 5/1/73 Application of Greyhound Lines, Inc. (East Division) for au thority to change schedules be tween Elberton and Atlanta, be tween Savannah and Jacksonville, Florida, and between Lawrenceville and Atlanta. Denied. - 10 Docket Ho. Date 4993-M 5/15/73 744-R 5/15/73 FORMAL CASES FOR YEAR 1973 (Cont'd) Subject Application of Georgia Motor Trucking Association, Inc., to establish provision restricting application of certain textile rates when via MR&R Trucking Co., Inc., to apply on joint-line traffic only inhere no direct service is available. Application of Seaboard Coast Line Railroad Company for author ity to establish a mobile agency operation serving the agency sta tions of Folkston, Woodbine, Nahunta, Blackshear, and PattersonHoboken, and the nonagency sta tions of Waverly, White Oak, Seals, Homestead, and Offerman, with the control or base station at Waycross. Disposition Approved, subject to expiration date of six months within which in vestigation to be made for possible service defi ciencies . Approved for six months* test period. 657-R 7/3/73 Application of Louisville & Nash ville Railroad Company for correc tion of the Commission's previous order in this docket to include reference to movements from Tate to Nelson in lieu of movements from Nelson to Ball Ground, to amend the tariff accordingly, and to waive out standing undercharges on movements from Tate to Nelson. Approved. 743-R 4992-M 7/17/73 7/31/73 Application of Seaboard Coast Line Railroad Company for authority to condemn certain property in South Fulton County for sidetracks and switching facilities. Application of Georgia Highway Express, Inc,, and the other Class "A" motor carriers of prop erty for increases in intrastate rates and charges. Withdrawn by applicant. Application of Georgia Highway Express, Inc., denied, but it and the other Class "A" carriers au thorized interim increase of 10% on minimum charge LTL shipments and 5% (Continued,' next page) *> 11 FORMAL GASES FOR YEAR 1973 (Gont'd) Docket No. Date Subject 4992-M 7/31/73 (Continued) 4992-M 8/7/73 Application of Georgia Highway Express, Inc., and the other Class "A" motor carriers of prop erty for increases in intrastate rates and charges. 6153-M 746-R 8/21/73 8/21/73 Application of Associated Petroleum Carriers, Inc., Fleet Transport Corp., Inc., and Schwerman Trucking Company to increase intrastate rates on petroleum and petroleum products by 15%, subject to a minimum increase of .l per mile, and to establish higher or new charges for several accessorial services. Application of Seaboard Coast Line Railroad Company for authority to establish a mobile agency opera tion serving its agency stations at Pitts, Rochelle, Abbeville, Rhine, Milan, and Rebecca, and its nonagency stations at Seville and Copeland, with the base station at Cordele. Disposition (Continued from presiding page) on TL or volume shipments with no increase in acces sorial charges or in rates under which no increase sought. Receipt from appli cants of petition for rehearing, reconsideration, and oral argument and General Rule 15 waived so that said petition would not operate as supersedeas. Approved, with modifications as to minimum increase and accessorial service charges. Approved for 12months' test, sub ject to the provi sion that the Agent be permitted to reside at Rochelle and to begin and end his tour of duty at that point, wih the mobile agency vehicle also to be quartered at Rochelle. 12 IHHI / li". S'' ^ Docket No, Date 6151-M 9/4/73 FORMAL CASES FOR YEAR 1973 (Cont'd) Subject Application of McKenzie Tank Lines, Inc., Matlack, Inc., Fleet Trans port Corp., Inc., and Schwerman Trucking Co. for authority to in crease intrastate rates on lique fied petroleum gas by amounts ranging from 5% to 20%. 745-R 747-R 745-R Supp. 4992-14 9/25/73 10/2/73 10/4/73 Application of railroads oper ating intrastate in Georgia for authority to increase rates on pulpwood and woodchips. Application of all railroads operating intrastate in Georgia to increase rates and charges on Georgia intrastate traffic pursuant to Public Law 93-69, 93rd Congress, to the same extent as authorized by the Interstate Commerce Commission in Ex Parte 299. Application of railroads oper ating intrastate in Georgia for authority to increase rates on pulpwood and woodchips by 11% as agreed to between the railroads and the paper companies throughout the South. 10/10/73 Application of Georgia Highway Express, Inc., and other Class "An motor carriers for authority to increase rates and charges. Disposition Application with drawn by Fleet and Schwerman. Increase of 5% and 10% approved for McKenzie. In creases proposed by Matlack denied for want of prose cution. Application with drawn by appli cants and proceed ing discontinued. Approved. Tariff reflecting such increase ac cepted for filing, subject to com plaint and further order. Increases author ized in minimum charge to $6.60, in LTL and AQ rates of 157, in TL or volume rates of 7%%, provided no increase ex ceeded that orig inally sought. - 13 - FORMAL CASES FOR YEAR 1973 (Cont'd) Docket No. Date Subject Supp. 4992-M 10/11/73 Application of Georgia Highway Express, Inc., and other Class "A " motor carriers for authority to increase rates and charges. Disposition Receipt acknow ledged of petition of Georgia Highway Express, Inc., and the other Class "A" motor carriers, for rehearing, re consideration, and oral argument of order of October 10 in this proceed ing and General Rule 15 waived so that said petition would not operate as supersedeas. 746-R 10/16/73 Non-Docket 11/6/73 Non-Docket 11/6/73 Application of Seaboard Coast Line Railroad Company for authority to establish mobile agency operation serving its agency stations at Pitts, Rochelle, Abbeville, Rhine, Milan, and Rebecca, and its non agency stations at Seville and Copeland, with the base station at Cordele, modified to eliminate Milan from such operation. Approved. Application of Seaboard Coast Line Railroad Company for authority to establish mobile agency serving Tyrone, Union City, Ackerman, Ben Hill, Stratford, Peachtree City, and Senoia. Approved for sixmonths' test. Application of Seaboard Coast Line Approved for six- Railroad Company for authority to months' test, establish mobile agency serving Ocilla, Pearson, Alapaha-Willacoochee, Nicholls, and Alma, and the nonagency stations at Wiggins, Axson, Guysie, Shoptaw, Ambrose, and Osierfield, with the control or base station at Fitz gerald . 14 FORMAL GASES FOR YEAR 1973 (Cont'd) Docket Ho Date Subject Disposition 6190-M 12/4/73 Application of National Bus Traf fic Associations Inc., on behalf of eleven principal Georgia bus lines, to increase intercity passenger fares by 10%, with minimum one-way fare of 55, and to increase com mutation fare of 40$, and, for ac count of the same carriers, to in crease express rates and charter coach charges. Approved. 748-R 12/18/73 Application of railroads operating intrastate in Georgia for authority to increase rates and charges to the same extent as authorized by the Interstate Commerce Commission in its order of November 16, 1973, in Ex Parte 295-A. Approved. 15 : fc . ; s - :;'--...; , -i - o t o i^ lq q A fl-O: . |jf 4l.^tO0 i Dr:';.-\ k f s i " X o ' ' n :''nsdv*tt t i l z ^ m *o '" ?.!>''ryoD'- a iN W f i t t i s i ' ,&-$: frSTta *S \Z f\ BUS FARES AND SERVICES At the end of 1973 there were 36 bus lines operating under the juris diction of the Commission providing passenger and package express service between substantially all municipalities in the State. The number of lines has remained stable for the past number of years, bringing an end to the declining trend in number of such carriers which began at the end of World War II. As result, the area and route coverage of the State's bus lines con tinues substantially unchanged. By application filed in July, the principal bus lines operating within the State sought authority to increase intercity passenger fares by 10/., with a minimum one-way fare of 55q and to increase commutation fares to 2.75q per mile with a minimum commutation fare of 40<:. By a concurrent application, the same carriers sought authority to effect increase in their package express rates by approximately 10% and to effect still further increases by changing the format of the weight brackets and mileage blocks. In the same application, authority was also sought to increase charter coach charges by approximately 5%. Inasmuch as both applications involved the same carriers and required con sideration of overall carrier revenues, the Commission consolidated the two ap plications and conducted a public hearing on a joint record. The only objection to the proposal was that expressed in three written protests to the Commission, most of which involved complaints of service inadequacies. The applicants offered extensive exhibits indicating system costs of operations, Georgia in trastate costs of operations, and corresponding revenues and operating ratios. It was shown that the operating ratios for Georgia intrastate traffic ranged from a low of 78.85% for Southeastern Stages to a high of 184% for Southern Transit. Pro-forma statements adjusting costs to reflect additional known cost increases effective after June 30, 1973, increased Greyhound's operating ratios to 98.76% and that of Continental Trailways group to 119.3%. In addi tion to the cost increase testimony and evidence concerning passenger fares, the applicants submitted exhibits and testimony concerning the currently au thorized minimum express charges both interstate and within surrounding States in which these carriers operate -- there showing the interstate charge to be $1.85 per shipment, that in three states, $1.75 per shipment, with application pending or recently approved to raise charges in three other States to the interstate level. The Commission found the intrastate passenger fares, charter coach charges, and express rates to be unduly low in comparison with those in surrounding States and interstate, and the proposed level justified by the presentations made at the hearing and approved the increases as proposed. 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 x?as an application of Greyhound Lines to adjust its ser vices between Atlanta and Columbia, South Carolina, via Athens and Elberton, between Atlanta and Lawrenceville and between Atlanta and Jacksonville via Jesup. The application involved not only changes in times of operation but discontinu ance of certain service through Elberton and between Atlanta and Lawrenceville and the rerouting of the Savannah-Jesup-Jacksonville run to operate via Brunswick. The Commission found, following the hearing, that the public convenience and necessity would not be adequately served by the remaining services and denied authority to make the proposed changes. - 16 BMj|V7 ... 7'. 7>> 777.7UJa lfi , -: 7... : :7' > b a s r- ;:u77 PilifS r c:i L - : : S i| ; 3qO -pi '] ' , . fj , 7.. . . . V : : ! & 0O3lpil 7 >-V f e l i n i | g $#&. t # rndffcxo XO$ A81 i O ' .:' c..; ..: >&: .7 7 [fioiifebt Sa sliftx o '. '.5 ? .7 BCU r O&jOS ftJVf X Bratto f i l ifc.i;, m iara jjjes*/ :;., :c :' '<:u 7; , c \ 2-0 vn.- * -7 ' o /- -1 /r:-'.'-. 9$ * 3li G3 qup'Xg ' 'il. 7' ' 7!v" 77 oO O -'7 :,7;.r;./7 .:;7 g .a ir K a ? b iu \ . . . . sa. &t o e i& g x ft ; - 7 goqoiq .7 .. :. I xdp fea onjq bn; pzJixaad orh 7 '7 . :. ' " r| > . basa tu ; j . t . . ' 7 a S x C U i7 !';.7 Ol E H ! . >| ^ ^ : I X 'i S ':j B E 0 f 37 .:1 ^ | 5 7 7.* , }, i 0 : i 7 . : .. : .;o i :; 7 Ti u 7 ., . x ;:, i . S B i c J n w i p Q b a s . 7 .7 c : a >7 0 :... .*c i . . 7 Oft irs a l: : '-u "T-| ' jjKj 1 /J.4.OS rsa^,::.'. TRUCK RATES AND SERVICES By the filing with the Commission on January 19 of a supplement to the Class "A" Motor Carrier Tariff, Georgia Highway Express, Inc. (Georgia Highway) sought authority to place into effect on Georgia intrastate traffic increases in singleline rates and charges to the level then applicable on interstate traffic. The Commission declined to authorize such increases without justification at public hearing and suspended the proposed increases for the full five months authorized by law, and assigned the matter for hearing on April 12. Subsequent to the issuance of notice of assignment of such hearing, but prior to the hearing date, two additional supplements were filed to the affected tariff proposing increases in rates and charges for the other Class "A" carriers and a further increase for account of Georgia Highway. The effect of the subsequent filing was to seek the interstate level of rates for account of all Class "A" carriers on both singleand joint-line traffic. The hearings on the matter were consolidated, and fol lowing extensive hearings at which voluminous evidence was submitted by both the applicants and some eleven protestants, the Commission on July 31, ordered cancelled the supplements containing the proposed increased rates but authorized on an interim basis pending further consideration, an increase on minimum charge and other less-truckload shipments of 10% and on volume or truckload shipments of 5%, except that no increase was authorized on accessorial charges or ship ments moving under rates on which no increases had been sought. Motion for re consideration was filed by both Georgia Highway individually and the other car riers as a group, but both such petitions were denied and the Commission proceeded with its consideration of the increases sought. By order dated October 10, 1973, the Commission found that there was no justification for as wide a gap as existed between Georgia intrastate rates and those on interstate traffic to and from the State and recognized the continued rapid and massive increases in costs of opera tion and the failure of depreciation accounts to cover the rising cost of renewal of equipment. Under the circumstances, the Commission approved an additional in crease to be applied in lieu of the interim increase, with the new authorization providing for an increase in the minimum charge to $6.60 per shipment and in crease on other less-truckload and any-quantity traffic of 15%, and an increase on truckload traffic of 7%%, provided that in no instance should any such increase exceed that originally sought. Immediately following the issuance of this order, both Georgia Highway individually and the Georgia Motor Trucking Association, on behalf of the other carriers, filed motion for rehearing, reconsideration, and oral argument. Such motions were subsequently denied. Hearing was held on March 15 concerning the proposal of MR&R Trucking Company to establish a restriction for its account providing that on the transportation of cloth, dry goods, or fabrics, or certain types of fiber, the rates published in Items 9240 and 10680 of the Class "A" Tariff would apply on joint-line traffic only where there was no direct service authorized via Class "A" carriers between the points involved. The Commission approved the proposed restriction, subject to an expiration date of six months from the effective date thereof, during which period the Commission would investigate the movements under those items to determine if the restrictions had resulted in any service deficiencies. As X7as feared by protestants to this proposal, other carriers later sought the same type of restriction for their account. In consideration of renewed protest, the Commission again suspended the proposed restriction for account of all carriers, and final determination of the matter is still pending. - 17 By a filing on June 9, 1973, of supplement to their tariff, the principal motor carriers of petroleum products sought to increase intrastate rates by 15%, sub" ject to a minimum increase of one cent per gallon. The Commission declined to approve such increase without justification therefor at public hearing, and such public hearing was assigned for July 19. At the hearing it was developed that the principal need for increase in rates was the broadening of the scope of State enforcement of highway weight laws and a new method of assessing penalties for overloading. This change had required a drop in average load of slightly over 15%, and this, coupled with driver demands for the same pay regardless of reduced load, and the increases in costs of operation common throughout the motor carrier industry, was contended to require the increase in revenues sought. Eleven representatives of various petroleum companies objected both to the percentage increases sought and to the minimum increase, as well as to certain pro posed adjustments in accessorial charges, several contending that approval would divert much traffic to private transportation. The Commission found it had an affirmative duty to permit all transportation agencies to apply rates which would result in a reasonable return on their in vestment devoted to public use, and that the basic assumption in carrier opera tions under such rates was compliance with local, State, and Federal laws in all respects. The Commission emphasized that it would not condone intentional over loading of equipment by these carriers and assumed that the carriers would comply with the weight laws in the future, particularly since more effective enforcement was in prospect. Under the circumstances, the Commission found it necessary to allow an increase in rates and charges sufficient to offset the necessary reduc tion in payload and to reflect other increases in costs of operations of this category of carrier. The increase authorized x^as 15% on base rates, subject to 20-mile haul as minimum, with increase in the incentive rates to the extent neces sary to maintain existing relationships with the increased base rates. In addition, authority was granted to increase minimum weights to the legal maximum, to pro vide a surcharge of 25% for service on Sundays or holidays where requested by shipper on other than incentive rates, and a surcharge of 10% on all deliveries to destinations outside of corporate limits not immediately accessible by paved roads. By tariff filings in May, the principal transporters of liquefied petroleum gas sought authority to increase their rates by amounts ranging from 5% to 20%. Following hearing, the Commission authorized increase of 5% from Alma and Albany and 107o from Milner for account of McKenzie Tank Lines, Inc., but dismissed the proposals of the other carriers because they had either cancelled their proposed increased rates or did not appear at the hearing. During the year the Interstate Commerce Commission prescribed for the larger motor carriers of property a new Uniform System of Accounts. In September the Georgia Motor Trucking Association sought for its members approval by the Commis sion of the use of that new Uniform System of Accounts in connection with filing with this Commission and, with such adoption, the waiver of all cumulative data reporting requirements and the acceptance of computer printouts, with the main tenance of exempt status for the smaller carriers already exempted from the re porting requirements. The Commission approved the use in Georgia of that new Uniform System of Accounts and agreed to the other changes proposed, subject to the provision that cumulative data reporting requirements were waived only inso far as concerned comparisons with previous years, and that only until 1975, and subject to the provision that computer printouts contain all the information in accessible form that is provided for in the regular report forms promulgated by the Commission. 18 RAIL FREIGHT During the year there were three general increase proceedings involving rail road freight rates -- those involving the increases authorized on interstate traf fic by the Interstate Commerce Commission in Ex Parte 281-B, 295-A, and 299. By order dated October 3 of last year, the Commission authorized increase in rail rates to the same extent as authorized by the Interstate Commerce Commission in Ex Parte 281. On November 14, the carriers sought further increase to the extent authorized by that Commission in Ex Parte 281-B. Following hearing on February 15, at which time the railroads presented their testimony showing the rapidly increas ing costs of operation, and three protestants indicated opposition to the increases on stone, sugar, and liquefied petroleum gas, and one protestant indicated general opposition, the Commission on March 20 authorized the increases sought with excep tion of increases on carload shipments of liquefied petroleum gas from Milner. In August the railroads sought authority to increase rates by 1.9% effective Oc tober 1, to be replaced by a 2.6% increase effective January 1, 1974, to recover increased costs incurred as result of change in railroad retirement fund provisions as authorized by Congress earlier in the year, and following public hearing at which no objection was expressed, the Commission approved the two-step increase. By supplement filing on September 7, the railroads sought authority to increase intrastate rates to the same extent as authorized by the Interstate Commerce Com mission in Ex Parte 295-A. The Commission declined to approve such increases without justification at public hearing, and such public hearing was held on Novem ber 29. The railroads presented their usual extensive statistics showing still further increases in costs of operation, and their anticipated expenditures for additional investment in plant and equipment. The only objection was to increase in rates on sugar, and that was limited to a statement of position forecasting di version of movements of that commodity if rail rates continued to increase. In recognition of the demonstrated need for the additional revenues sought, the Com mission on December 18 approved the increases proposed effective not earlier than January 1, 1974. During the year the railroads sought substantial increases in rates and charges on shipments of pulpwood and x^oodchips. This increase was sought simultaneously on interstate traffic and on intrastate traffic in all States in the Southeast, except that one railroad sought a lesser measure of increase in the State of Mississippi. An unusual feature of the carriers' proposal was that they filed with the Interstate Commerce Commission prior to determination by that Commission of the reasonableness of the proposed increased rates a Thirteenth Section Peti tion requesting that Commission to require adjustment of intrastate rates within the South to the same level as might be found reasonable on interstate traffic. Georgia, together with the other Southern State Commissions, violently opposed such a procedure and filed necessary petitions in objection. Negotiations between the carriers and the pulpwood-using industry resulted in a compromise whereby the industry agreed to a measure of increase in rates provided the carriers obtained additional equipment for the movement of these commodities, and in the light of such agreement, the carriers withdrew their original proposal on both interstate and intrastate traffic and their request for a Thirteenth Section investigation. Under the circumstances, the Commission authorized the application on Georgia in trastate traffic of the increased rates as agreed to by the parties. - 19 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 stations 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 appli cations involving 39 stations, and as is its established custom, adhered to the policy of deciding those applications on the use of and need for such services rather than fully on the statistical showing of revenue versus costs. After find ing that the public convenience and necessity no longer required the services of an agent at such points, the Commission authorised the discontinuance of agency service at Colbert and Trenton. During the year there was another consolidation of agency service sought whereby one agent \\ras proposed to provide agency service at two stations. The Atlanta and West Point Railroad sought to establish such dual agency service at LaGrange and West Point -- this application being approved after finding that the proposed service would be adequate to the needs of the public. There was reviewed in detail in the 1970 and 1971 reports 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 railroads while adequately handling the needs of the public at the involved points. During the year there were four such operations authorized -- all on the Seaboard Coast Line Railroad. One such operation serves the agency stations of Qcilla, Fearson, AlapahaWillacoochee, Nicholls, and Alma, and the nonagency stations at Wiggins, Axson, Guysie, Shoptaw, Ambrose, and Osierfield, with the control or base station for the operation at Fitzgerald. The second such mobile agent serves Tyrone, Union City, Ackerman, Ben Hill, Stratford, Peachtree City, and Senoia. This mobile agency was later changed to establish the base station for such operation at Fulco, instead of Atlanta. The third Seaboard Coast Line Railroad mobile agency was pro posed to serve the agency stations at Pitts, Rochelle, Abbeville, Rhine, Milan, and Rebecca, and its nonagency stations at Seville and Copeland, with the control or base station for the operation at Cordele. This operation was later modified to exclude Milan. The last such mobile agency operation serves the agency stations of Folkston, Woodbine, Nahunta, Blackshear, and Patterson-Hoboken, and the non agency stations of Waverly, White Oak, Seals, Homestead and Offerman, with the con*? trol or base station of the operation at Waycross. As in all previously approved mobile agency operations, the Commission conditioned its authorization to insti tute these four mobile agencies to be only a six-months' test period, and thereby subject to the same investigation procedures during that period as have been ob served by the Commission in such prior proceedings. CONDEMNATION PROCEEDINGS Earlier in the year, the Seaboard Coast Line Railroad sought authority to institute proceedings to acquire certain property in the southern part of Fulton County to be used for the construction of sidetracks and switching facilities to permit it to more adequately serve the growing number of industries located in a new industrial park in that area. Hearing was held on this application in - 20 May, at which there was extensive opposition both to the proposed taking of prop erty and to the establishment of the additional facilities in the area. Follow ing extensive surveys by the Commission of the need for and proposed use of the property, and after conferences with the railroad concerning alternate methods of providing the needed additional facilities, the railroad, in July, withdrew its application without prejudice to the reinstitution of the same or a different ap plication for authority to condemn for such purposes should circumstances require. - 21 : - ; -Oj ' V V |Sj(B l'p -- fegNjfj -iriw t.Q 03 i V^filw fi -ri !" I> to * .fry C :i- . '.. . I s o d . totoJ h * m m m M % i o 0 r mUi iwaa ib m o l Yj. s*ai5.-,' sag j r;ii V."xiJt'J & a X .jC|i/.fi UTILITIES DIVISION INTRODUCTION The function of the Utilities Division is to provide the Commission with professional and technical services in order that the public responsibil ities 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. Because of the rapidly increasing number of utility consumers through out the State, there has been a considerable increase in the filing of formal complaints. Another reason for the rise in the number of complaints is that the citizens of Georgia using utilities' servies have become more cost conscious For these reasons the public has displayed much greater interest in the formal proceedings of the Commission. This is indeed gratifying to the Commission and its Staff, inasmuch as the citizens of our great State are learning more about the operations of this regulatory body. Many are amazed that anyone can express their views, pro or con, toward the utility's application, at the hearings. During these hearings the consumer learns why utility companies petition the Commission for rate relief. Knowledge is gained as to the opera tions of said companies and their increasing cost and expansion or improvement programs. EXPANSION OF STAFF As the result of additional consideration by the Governor, the Budget Bureau and Members of the General Assembly, the Commission was given a substan tially larger budget for the fiscal year 1974. This has enabled the Commission to practically double the size of its Utility Division Staff. Without this additional budget, the Commission's ability to serve the citizens of Georgia in the manner needed would be woefully lacking. A Consumer Relations Section has been established to aide the Engineering Staff mediation of all utility complaints registered with the Commission. ENGINEERING DIVISION The size of the Engineering Staff was increased, allowing for more detailed analysis of technical problems, as well as more field investigations. The Engineering Staff is responsible, among other functions, for the processing and analysis of all utility tariff filings which include rates, rules and regulations of electric, gas, telephone and telegraph companies. Applications for Certificates of Public Convenience and Necessity must be processed, docketed, examined, and accepted or disapproved. One of the most important functions of this section is the receipt, processing, evaluation, investigation and final disposition of all complaints filed with the Commission and the determination of qualities of service. These investigations may require extensive field work, and many types of sophisticated test equipment are often utilized. 22 ACCOUNTING AND FINANCE DIVISION The Audit and Accounting Staff has the responsibility of receiving, docketing, and examining all rate and security applications. Numerous exhibits and large volumes of testimony must be analyzed as well as cross-examining witnesses for the purpose of bringing out the facts in each case, thus enabling the Commission to reach a fair and equitable decision. This section must also audit all monthly, quarterly and annual reports filed by the utility companies. The increased budget enabled the Commission to increase the size and capability of this important segment of utilities regulation. This increase could not have been more opportune since the inflationary spiral that the economy is experiencing has caused the work load or number of rate and security applica tions to reach an all time high. ACTIVITIES The Commission issued a total of 96 Orders after formal proceedings during the year 1973 involving Utility Companies. The Orders entailed Certificates, Rate Adjustments and the issuance of securities relating to capital structures and matters involving the general operation of the utilities subject to the jurisdiction of the Commission. At the close of the calendar year 1973, there were under the juris diction of the Commission the following number of public utilities : Electric 2 Natural Gas 4 Telephone* 44 Radio Common Carriers 20 Telegraph 1 * Includes four Cooperatives. 23 d DECISIONS AND ORDERS Applications formally heard by the Commission are generally taken under advisement and decisions thereon are issued at a later date. The Commission issued 93 decisions and orders during the year in pro ceedings involving utilities. A classification of the proceedings in which formal opinions and orders were issued follows: Applications for Certificates or Cancellation Thereof ........................ 7 Applications for Authority to Issue Securities or Borrow Money . 49 Rate Adjustment Proceedings ..............................................................................16 Applications for Authority to Purchase and Transfer Utility P r o p e r t i e s ........................... ..............................................................5 Applications for Amendments ofCertificates ..................... ........................ 6 Applications for Amendments of Rules and Regulations ........................... 6 Show C a u s e Proceedings . . . . . . . . . ....................................................... 2 General Orders ..................... . . . . . ....................................................................... 2 APPLICATIONS FOR CERTIFICATES OR CANCELLATION THEREOF Docket No. 2499-U March 6, 1973 Certificate No. 40 Docket No. 2489-U March 6, 1973 Docket No. 2507-U April 17, 1973 Certificate No. 703 Application of ADVANCED TELCOM for a Certificate of Public Convenience and Necessity to Provide a Radio Utility Service in the Warner Robins, Perry and Fort Valley, Georgia area. Application of Airfone, Inc., for a Certificate of Public Convenience and Necessity to operate a one-way signaling service and a two-way radio communications service in the Bonaire, Warner Robins, Perry, Georgia area. Application of EH i jay Telephone Company, Ellijay, Georgia for a Certificate of Public Convenience and Necessity to establish a new exchange in the Cartecay Community of Gilmer County, Georgia. 24 Docket No, 2515-U May 1, 1973 Certificate No. 41 Non-Docket June 25, 1973 Non-Docket June 25, 1973 Docket No. 2533-U August 7, 1973 Certificate No. 704 Docket No. 2568-U December 4, 1973 Certificate No. 705 Application of Mobile Tel. & Pager, Inc. for a Certificate of Public Con venience and Necessity to provide a radio utility system service and to operate a one-way signaling and a twoway communication service in the Griffin, Georgia area. Distribution System Certificate of Public Convenience and Necessity No. 43 for the City of Austell, Cobb County, Georgia, File No. 19587, Docket No. 1088-U Distribution System Certificate of Public Convenience and Necessity No. 52 for the City of Manchester, Meriwether County, Georgia, File No. 19603, Docket No. 1147-U. Application of Pembroke Telephone Company, Inc., Pembroke, Georgia for a Certificate of Public Convenience and Necessity to establish a new exchange in the Ellabelle Community of Bryan County, Georgia. Application of Coastal Utilities, Inc., Hinesville, Georgia for a Certificate of Public Convenience and Necessity to establish a New Exchange in the Keller Area of Bryan County, Georgia. APPLICATIONS FOR AUTHORITY TO ISSUE SECURITIES OR BORROW MONEY Docket No. 2491-U January 16, 1973 Docket No. 2491-U February 6, 1973 First Amendatory Order Docket No. 2478-U February 6, 1973 Application of Gas Light Company of Columbus for authority to obtain loans from banks and to issue and sell First Mortgage Bonds. Application of Gas Light Company of Columbus for authority to obtain loans from banks and to issue and sell First Mortgage Bonds. Application of Standard Telephone Company for authority to borrow $3,517,500 from the Rural Telephone Bank. 25 ..JO. '*ov f t m l - ' /tti MiaQL .. :^1 4 -V '; ca Sfrilj; M i \ ..oH ^ SiS'1' : fc# f ./'.f;>*', '//.i Docket N o . 2496-U February 20, 1973 Docket No. 2502-U March 6, 1973 Docket No. 2503-U March 20, 1973 Docket No. 2501-U March 20, 1973 Docket No. 2504-U March 20, 1973 Docket No. 2517-U April 17, 1973 Application of General Telephone Company of the Southeast for authority to issue and to sell at par value of $25 per share three hundred forty-two thousand (342,000) shares of its Common Stock and to sell Twenty-five Million Dollars ($25,000,000) of First Mortgage Bonds at competitive bidding and to apply the proceeds thereof to repay short-term loans and for other purposes. Application of Georgia Power Company for authority to issue and sell $300,000,000 principal amount of First Mortgage Bonds and 250,000 shares of Preferred Stock and to issue $11,797,000 principal amount of First Mortgage Bonds for sinking fund purposes. Application of Walker County Telephone ' Company for authority to issue and sell First Mortgage Bonds, due December 1, 2002, in the principal amount of $2,500,000, to bear interest at the rate of 8% per annum. Application of Georgia State Telephone Company for authority to issue a $1,000,000 8 3/8% Promissory Note due February 1, 1993, to Home Life Insurance Company, and 5,000 shares of 8 3/8% Cumulative Preferred Stock to Nationwide Mutual Insurance Company, at a price of $100 per share, and to receive a capital contribution of $500,000 from Continental Telephone Corporation. Application of Westco Telephone Company for authority to borrow $1,008,000 prin cipal amount from the Rural Telephone Bank as well as authority to issue and sell 48,000 shares of its $5 par value per share Common Stock to its parent, Western Carolina Telephone Company. Application of Statesboro Telephone Company for authority to issue and sell $1,500,000 principal amount of First Mortgage Bonds, to bear interest at the rate of 8.15% per annum. 26 Docket No. 2505~U April 17, 1973 Docket No. 2510-U April 17, 1973 Docket No. 2525-U May 15, 1973 Docket No. 2521-U June 5, 1973 Docket No. 2538-U July 31, 1973 Docket No. 2526-U June 5, 1973 Non-Docket July 31, 1973 Application of Ellijay Telephone Company for authority to borrow $1,090,950 from the Rural Telephone Bank as well as authority to issue 900 additional shares of the Company's $100 par value per share Common Stock. Application of Glenwood Telephone Company for authority to borrow $180,000 principal amount from Stromberg-Carlson Corporation at 8 7/8% per annum for not more than twenty (20) years. Application of Atlanta Gas Light Company for authority to issue and sell at negotiated public sale not more than $15,000,000 aggregate principal amount of First Mortgage Bonds, % series due ; and 75,000 shares of $100 par value per share Cumulative Preferred Stock. Application of Alma Telephone Company, Inc for authority to borrow $525,000 from the Rural Telephone Bank, an agency of the United States. Application of Commerce Telephone Company for authority to issue $1,500,000 princi pal amount of 8% Sinking Fund Debentures to be purchased by Lutheran Brotherhood. Application of Savannah Electric and Power Company for authority to issue up to $25,000,000 principal amount of additional debt securities pursuant to Bank Credit Agreement. Application of Habersham Electric Member ship Corporation for approval of Notes of $469,000 to be executed in the favor of the United States of America, acting through the Rural Electrification Adminis tration and of $201,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage. 27 Docket No. 2534-U August 7, 1973 Docket No. 2518~U August 21, 1973 Non-Docket August 21, 1973 Non-Docket August 21, 1973 Non-Docket August 21, 1973 Application of Pembroke Telephone Company, Inc., for authority to borrow $840,000 from the Rural Telephone Bank at an interest rate of 4.5% per annum. Application of Planters Rural Telephone Cooperative, nc. for authority to borrow an additional $2,650,000 principal amount from the United States Government through the Administrator of the Rural Electrifi cation Administration. Application of Douglas County & Electric Membership Corporation for approval of Notes of $1,096,000 to be executed in the favor of the United States of America, acting through the Rural Electrification Administration and of $470,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage. Application of The Central Georgia Electric Membership Corporation for approval of Notes of $1,064,000 to be executed in the favor of the United States of America, acting through the Rural Electrification Administration and of $456,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage. Application of Excelsior Electric Member ship Corporation for approval of Notes p f $379,000 to be executed in the favor of the United States of America, acting through the Rural Electrification Adminis tration and of $162,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation witha separate Note to each of said lenders to be secured by a common Mortgage. 28 Non-Docket August 21, 1973 Non-Docket August 21, 1973 Non-Docket August 21, 1973 Non-Docket September 4, 1973 First Supplemental Order Non-Docket August 21, 1973 Application of Jackson Electric Membership Corporation for approval of Notes of $888,000 to be executed in the favor of the United States of America, acting through the Rural Electrification Adminis tration and of $380,000 to be executed in favor of the National Rural Utilities Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage. Application of Walton Electric Membership Corporation for approval of Notes of $2,338,000 to be executed in the favor of the United States of America, acting through the Rural Electrification Adminis tration and of $1,002,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage. Application of Jefferson Electric Member ship Corporation for approval of Notes of $620,000 to be executed in the favor of the United States of America, acting through the Rural Electrification Adminis tration and of $266,000 to be executed in favor of the National Rural utilities Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage. Application of Jackson Electric Membership Corporation for approval of Notes of $888,000 to be executed in the favor of the United States of America, acting through the Rural Electrification Adminis tration and of $380,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage. Application of Three Notch Electric Member ship Corporation for approval of Notes of $338,000 to be executed in the favor of the United States of America, acting through the Rural Electrification Adminis tration and of $145,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage. 29 Non-Docket August 21, 1973 Non-Docket August 21, 1973 Non-Docket August 21, 1973 Non-Docket September 4, 1973 Non-Docket September 4, 1973 Application of Snapping Shoals Electric Membership Corporation for approval of Notes of $1,120,000 to be executed in the favor of the United States of America, acting through the Rural Electrification Administration and of $480,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage. Application of Coweta-Fayette Electric Membership Corporation for approval of Notes of $695,000 to be executed in the favor of the United States of America, acting through the Rural Electrification Administration and of $298,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage. Application of Troup County Electric Member ship Corporation for approval of Notes of $367,000 to be executed in the favor of the United States of America, acting through the Rural Electrification Adminis tration and of $157,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage. Application of Slash Pine Electric Member ship Corporation for approval of Notes of $252,000.00 to be executed in the favor of the United States of America, acting through the Rural Electrification Adminis tration and of $108,000.00 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage. Application of Haywood Electric Membership Corporation for approval of Notes of $386,000 to be executed in the favor of the United States of America, acting through the Rural Electrification Administration and of $97,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage. 30 Docket No. 2550-U September 10, 1973 Non-Docket September 10, 1973 Non-Docket September 10, 1973 Docket No. 2508-U September 10, 1973 Docket No. 2549-U September 25, 1973 Application of Georgia Power Company for authority to issue and deliver $41,000,000 principal amount of First Mortgage Bonds to secure Revenue Bonds of the Development Authority of Bartow County, Georgia to be issued in order to finance air and water polution control facilities. Application of Stailla Rural Electric Member ship Corporation for approval of Notes of $1,206,000.00 to be executed in the favor of the United States of America, acting through the Rural Electrification Administration and of $517,000.00 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage. Application of Carroll Electric Membership Corporation for approval of Notes of $374,000.00 to be executed in the favor of the United States of America, acting through the Rural Electrification Administration (REA) and of $160,000.00 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage. Savannah Electric and Power Company: Application for an addition to its rules and regulations pertaining to Retail Distribu tion Line Extension and Service Connection Regulations by adding a new paragraph to Section E, "Retail Distribution Line Exten sion and Service Connection Regulations", in order to provide specific criteria for the extension of new underground residential distribution facilities. Application of United Cities Gas Company for authority to issue and sell $3,500,000 prin cipal amount of its First Mortgage Bonds, Series G, 8.45 per cent, due September 1, 1995, and for authority to issue and sell 100,000 shares of its Common Stock to the public of the par value of $3.33-1/3 per share, and for other relief. 31 Non-Docket September 27, 1973 Non-Docket September 27, 1973 Non-Docket September 27, 1973 Non-Docket September 27, 1973 Non-Docket September 27, 1973 Application of Coastal Utilities, Inc. Hinesville, Georgia, for authority to borrow an additional $2,513,700 bearing interest at the rate of 6 1/2% per annum from the Rural Telephone Bank and to secure the payment thereof by First Mortgage on Petitioner's entire plant and facilities. Application of Sumter Electric Membership Corporation for approval of Notes of $900,000 to be executed in the favor of the United States of America, acting through the Rural Electrification Administration and of $386,000 to be executed in favor of the National Rural utilities Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage. Application of Lamar Electric Membership Corporation for approval of Notes of $474,000 to be executed in the favor of the United States of America, acting through the Rural Electrification Administration of $203,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage. Application of Cobb County Rural Electric Membership Corporation for approval of Notes of $1,814,000 to be executed in the favor of the United States of America, acting through the Rural Electrification Adminis tration and of $777,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage. Application of Canoochee Electric Membership Corporation for approval of Notes of $520,000 to be executed in the favor of the United States of America, acting through the Rural Electrification Administration and of $223,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage. 32 Non-Docket October 16, 1973 Non-Docket November 20, 1973 Non-Docket November 20, 1973 Docket No. 2561-U November 20, 1973 Non-Docket December 4, 1973 Application of Hart County Electric Member ship Corporation for approval of Notes of $376,000 to be executed in the favor of the United States of America, acting through the Rural Electrification Administration and of $162,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage. Application of Tri-County Electric Member ship Corporation for approval of Notes of $414,000 to be executed in the favor of the Rural Electrification Administration and of $178,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage. Application of Blue Ridge Mountain Electric Membership Corporation for approval of Notes of $760,000 to be executed in the favor of the United States of America, acting through the Rural Electrification Administration and of $190,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage. Application of Wilkinson County Telephone Company, Inc. for authority to borrow $800,000 from the Rural Electrification Administration. Application of Amicalola Electric Membership Corporation for approval of Notes of $872, 000 to be executed in the favor of the United States of America, acting through the Rural Electrification Administration and of $374,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage. 33 Non-Docket December 4, 1973 Docket No. 2559-U December 4, 1973 Docket No. 2566-U December 4, 1973 Non-Docket December 19, 1973 Application of Middle Georgia Electric Membership Corporation for approval of Notes of $318,000 to be executed in the favor of the United States of America, acting through the Rural Electrification Administration and of $136,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage. Application of Byron Telephone Company, Inc. (the "Company") for authority to issue 4,250 shares of $100 par value per share common stock to its Parent Mid-Continent Telephone Company. Application of Hart County Telephone Com pany for authority to borrow $150,000 principal amount from Stromberg-Carlson Corporation. Application of Irwin County Electric Member ship Corporation for approval of Notes of $284,000 to be executed in the favor of the United States of America, acting through the Rural Electrification Administration and of $122,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation with a separate Note of each of said lenders to be secured by a common Mortgage. RATE ADJUSTI4ENT PROCEEDINGS Docket No. 2232-U January 16, 1973 First Supplemental Order Docket No. 2481-U January 16, 1973 Docket No. 2485-U January 16, 1973 Application of Southern Bell Telephone and Telegraph Company for authority to adjust its intrastate schedule of rates and charges for telephone service rendered in the State of Georgia. Application of South Georgia Telephone Com pany for authority to adjust the exchange rates and service connection charges for all exchanges of the Company. Application of Hawkinsville Telephone Com pany of Hawkinsville, Georgia, for authority to adjust its local exchange telephone rates 34 Docket No. 2479-U February 6, 1973 Docket No. 2477-U January 16, 1973 Docket No. 2506-U April 17, 1973 Docket No. 2511-11 April 17, 1973 Docket No. 2522-U June 5, 1973 Docket No. 2532-U August 7, 1973 Docket No. 2535-U August 7 , 1973 Docket No. 2528-U September 4, 1973 Docket No. 2519-U November 6, 1973 Docket No. 2560-U November 20, 1973 Application of Standard Telephone Company for authority to adjust its rates for tele phone service rendered from all exchanges of the Company. Application of United Cities Gas Company for authority to increase its rates for gas service within its service area in Georgia. Application of EH i jay Telephone Company for authority to adjust its rates for telephone service rendered from its existing exchanges as well as establish rates for a new exchange Application of Glenwood Telephone Company for authority to adjust its rates for local exchange telephone service and service connection charges. Application of Alma Telephone Company, Inc. for authority to adjust its rates for tele phone services rendered from each exchange of the Company. Application of Georgia Power Company for an emergency increase in rates effective immediately. Application of Pembroke Telephone Company, Inc., for authority to adjust its rates for local exchange telephone service and service connection charges. Application of Quincy Telephone Company, Quincy, Florida, for authority to establish new rates for local telephone service and service connection charges for service rendered to subscribers at the Attapulgus, Georgia, exchange of that Company. Application of Planters Rural Telephone Cooperative, Inc. for authority to adjust the exchange telephone rates and service connection charges of that cooperative. Application of Wilkinson County Telephone Company, I nc. for authority to increase its rates for local exchange service. 35 Docket N o . 2552-U November 20, 1973 Docket No. 2542-U December 6, 1973 Docket No. 2536-U December 13, 1973 Application of The Western Union Telegraph Company for authority to make effective in the State of Georgia selective rate adjust ments. Application of Cairo Telephone Company for authority to increase rates. Application of Georgia Power Company for authority to increase its rates for retail electric service approximately $86 million. APPLICATIONS FOR AUTHORITY TO PURCHASE AND TRANSFER UTILITY PROPERTIES Docket No. 2490-U January 16, 1973 Docket No. 2500-U March 6, 1973 Docket No. 2524-U May 1, 1973 Docket No. 2529-U July 17, 1973 Certificate No. 42 Application of A. Herbert Turpin and Douglas G. Gentry for authority to acquire con trolling capital stock of Anserfone, Inc. (Macon, Georgia) and for authority to do all things required to effectuate ownership, control stnd management of that company. Application of Deaderick and Sanford, Inc. for authority to acquire control of a radio utilities system in Dalton, Georgia, and for authority to do all things required to effectuate ownership, control and manage ment of that system. ______ _ Application of Communications Industries, Inc. for authority to acquire controlling capital stock of General Communications Services, Inc., and for authority to do all things required to effectuate ownership, control and management of that company as set forth in the application. Application of Savannah Radio Mobile-Tele phone, Inc. for authority to acquire control of the Radio Utility System in Savannah, Georgia and for authority to do all things to effectuate ownership, control and manage ment of that system, said system presently being operated by Beasley and Carlson, Inc. 36 Docket No, 2570-17 December 4, 1973 Certificate No, 706 Application of Darien Telephone Company for authority to acquire the capital stock and surplus of Atlas Utilities upon merger of the assets of Atlas Utilities, with Darien Telephone Company to be the surviving corporation, as well as for the issuance of a Certificate of Public Convenience and Necessity required for the operation of the Local Exchange facilities of Atlas Utilities. APPLICATIONS FOR AMENDMENTS OF CERTIFICATES Docket No, 2493-U February 20, 1973 Distribution System Certificate No. 31 Application of Atlanta Gas Light Company for Amendment No. 2 to Distribution System Certificate of Public Convenience and Neces sity No. 31 to Authorize Gas Distribution Service to Additional Area in Douglas County, Georgia. Docket No. 2246-U April 17, 1973 Certificate No. 373 Application of Standard Telephone Company for amendment to its Certificate of Public Convenience and Necessity Number 373, Dawson-- ville, Georgia, Exchange. Docket N o . 2551-U November 6, 1973 Certificate No. 36 Docket No. 2563-U Certificate No. 22 Amendment No. 2 November 20, 1973 Docket No. 2562-U November 20, 1973 Certificate No. 35 Amendment Number 1 Docket No. 2569-U December 4, 1973 Certificate No. 395 Docket No. 2571-U December 4, 1973 Certificate No. 593 Application of South Georgia Telephone Com pany, Inc. for an Amendment to its Certifi cate of Public Convenience and Necessity. Application of RACO, Inc. for authority to Amend its Certificate of Public Convenience and Necessity to Provide Radio Common Carrier Service in the Rome, Georgia area. Application of Airvoice, Inc. for authority to Amend its Certificate of Public Conven ience and Necessity to Provide Radio Common Carrier Service in the Americus, Georgia area Application of Coastal Utilities, Inc. for an Amendment to its Certificate of Public Convenience and Necessity. Application of Darien Telephone Company, Inc. for an Amendment to its Certificate of Public Convenience and Necessity, Toll Lines. 37 APPLICATIONS FOR AMENDMENTS OF RULES AND REGULATIONS Non-Docket March 6, 1973 Non-Docket July 17, 1973 Second Supplemental Order Non-Docket August 21, 1973 Third Supplemental Order Non-Docket October 2, 1973 Docket No, 2509-U November 6, 1973 Docket No, 2465-U December 13, 1973 First Supplemental Order Application of Airsignal International, Inc,, Atlanta, Georgia, for authority to amend Tariff P, S. C. No, 1 to include a 1st revised Page 1, a 1st revised Page 7, and a 1st revised Page 10, Rules and regulations for employment and use of any equipment or device which is furnished by a telephone company authorized by the Georgia Public Service Commission pursuant to Act 567, HB 64, adopted by the General Assembly of Georgia, approved April 19, 1967, Rules and regulations for employment and use of any equipment or device which is furnished by a telephone company authorized by the Georgia Public Service Commission pursuant to Act 567, HB 64, adopted by the General Assembly of Georgia, approved April 19, 1967, Rules and regulations on assignment proce dures, pursuant to the Georgia Territorial Electric Service Act No, 94, adopted by the General Assembly of Georgia approved March 29 1973, ' Application of Georgia Power Company for Revision of Residential Wiring Plan by Replacement of Paragraph "G", Pages 1,13 through 1,18 of the Company's Rules and Regulations and Rate Schedules for Electric Service, Georgia Power Company - Motion for hearing in nature of adversary proceeding to deter mine rate schedule in the event any portion of said rate increase application is approved Docket No, 2497-U January 30, 1973 SHOW CAUSE PROCEEDINGS General Telephone Company of the Southeast RULE NISI Appear and show cause that the rates and charges filed by General on January 12, 1973, are just and reasonable. 38 Docket No. 2497-U March 20, 1973 Non-Docket August 21, 1973 Docket No. 2531- October 16, 1973 Rule Nisi of Georgia Public Service Com mission to General Telephone Company of the Southeast to appear and show cause that the rates and charges filed by General on January 12, 1973, are just and reasonable. GENERAL ORDERS Minimum filing requirements for telephone rate cases. Complaints of subscribers on increase in rates for miscellaneous signalling channels granted by the Commission in Southern Bell Telephone and Telegraph Company 's Docket No 2232-U. 39 LICENSES ISSUED FOR SERVICE OBSERVING EQUIPMENT COMPANY LICENSE NO. Uniroyal, Inc. 128 Doctors & Merchants Credit Bureau, 129 Inc. Days Inns of America, Inc. 130 Pacific & Southern Co., Inc., dba 131 WQXI-TV Gordons Transports, Inc. 132 Diamondhead Corporation, Lake Arrow 133 head Division Burke Marketing Research 134 DeKalb County Police Department 135 United Consultants of Atlanta, Inc. 136 KASUM COMMUNICATIONS (KAS-COM) INC. 137 Atlanta Newspapers, Div. of Cox 138 Enterprises, Inc. Veterans Administration 139 DATE ISSUED February 7, 1973 June 12, 1973 June 12, 1973 June 12, 1973 June 12, 1973 July 17, 1973 October 2, 1973 October 2, 1973 October 16, 1973 October 16, 1973 November 20, 1973 November 20, 1973 40 ; 'J G m ' ' ,40'; '^a^tO^lOL H%lLr v&sS&0;:-&Si&?& ,%0X!t , ' VlV*'?,,p')l .:. -, ;v - - ..ts ilo s $j& wplS'ftidtfSf SOUTHERN BELL TELEPHONE AND TELEGRAPH COMPANY Achievements and 1973 Accomplishments Station Activity-General Total telephones in service for Southern Bell in Georgia at the end of 1973 were 2,620,520. This represents an increase in total telephones for the year of 206,638. The inward movement was 925,345 and the outward movement was 717,968. This represents increases of 58,428 and 75,608 respectively. The improvement in service furnished to its customers continues, and as of the end of the year 91.1 percent of its residence customers had individual line service. The number of families with telephones in Georgia served by Southern Bell has increased to about 89.3 percent. Second line usage in homes has also increased and 2.7 percent of its u s e r s now have a second line. New services and equipment are being developed on a continuing basis in order to keep abreast of customers' needs for expanded service. Direct Distance Dialing Of the total number of main services in Southern Bell in Georgia, 100 percent now have access to the Direct Distance Dialing network. The percent customer dialed long distance messages in 1973 was 67.2 percent. The percent WATS customer dialed messages was 97.1 percent. Construction During the year 1973 Southern Bell spent approximately $290,322,000 in Georgia for new construction to provide facilities needed to serve its customers. Rural Service Improvement Program During the year 1973 Southern Bell spent approximately $9,242,000 on its Rural Service Improvement Program. During the year 5,479 eight party customers were regraded to higher classes of service. At the end of 1973 eight party service represented only 0.1 percent of its residence customers served and business eight party is negligible. Extended Area Service In 1973 there were no major changes in Southern Bell exchange calling areas under the non-optional plan. 41 Rate and Revenue Activities During 1973 they made 242 tariff filings involving new or changed service offerings . Through rate case activity, 1973 revenues were increased by $10,4 million annually. Service charges represented about $6.6 million of the total. Service charges were separated into elements of cost for easier administra tion and to insure the recovery of cost for each individual element of cost required to provide service. As a companion effect residence move and change activity was reduced by 50 percent thereby incurring considerable savings. During 1973 they made numerous revisions in their exchange serving area boundaries and the associated maps on file with the Commission. These revisions were necessary because of changing conditions of service avail ability and improvements in order to meet the growth needs of Georgia people in both Bell and non-Be11 areas. Employees and Wages At the end of 1973 Southern Bell employed 20,328 people in Georgia which is an increase of 2,093 during the year. In 1973 Southern Bell paid its employees in Georgia an amount in excess of $236,000,000 in total salaries and wages. Taxes During the past year Southern Bell in Georgia paid in local and state taxes an amount of $27,749,493. In addition, Georgia telephone customers paid $6,343,149 and $926,942 to the State in sales tax and to MARTA respectively. 42 GENERAL TELEPHONE COMPANY OF THE SOUTHEAST Achievements and 1973 Accomplishments Station Activity `General Total telephones in service for General Telephone in Georgia, at the end of 1973, was 186,199. This represents an increase of total telephones for the year of 8,433. The inward movement was 53,145, and the outward movement was 44,712. The improvement in service continues. As of the end of the year, the total one--party stations were 73,160 and represents 60% of the total main stations. The customer's desire for a better grade of service is clearly shown by the growth in the number of one-party customers. The number of one-party customers has increased over 62% since 1969, which is in excess of the average growth rate. Direct Distance Dialing In 1973, they established direct distance dialing for twenty five (25) ex changes, sixteen (16) in the South Georgia Division and nine (9) in the North Georgia Division. Thirty nine (39) exchanges had access to the direct distance dialing network at the end of 1973, 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 1973, General Telephone spent in excess of $22 million to provide and improve the facilities needed to serve its customers. Multi-Party Elimination Multi-party service was eliminated in ten (10) exchanges during 1973. At the end of 1973, 55 exchanges or 80% of their total exchanges no longer had multi party service. The Company recognizes that multi-party service no longer meets the needs of its customers and has a program for eliminating multi-party service that exists in 14 exchanges. Rate Activity A proposed change in rates for General Exchange Tariff Items and Nonrecurring Service Order Charges for additional annual revenue of $572,028 was approved by the Commission and became effective February 1, 1974 which enabled the Company to maintain the present local monthly service rates. 43 Employees General Telephone employs 1,313 people in Georgia and they continually evaluate their personnel requirements, with respect to service requirements, and make adjustments to their force as required. 44 . . v. ; ;"- &V % \ t3- i^ * srai^r m ' : * * i : $te s .m ?? .'W T ilspayA &. .*>:;>> '`ItidHi o'? 4H3A#^*W? 'I & sr.iMbll ><'-V' I tt ' GEORGIA POWER COMPANY Georgia Power Company serves a 57,000 square-mile area of the state encompassing 153 of the 159 counties. At the end of 1973, 1,051,842 customers were served by the company. Industrial customers consumed 31.9 per cent of the 38,415,000,000 kilowatt-hours used by GPC customers. Residential and commercial usage amounted to 23.8 and 22.1 per cent respectively with sales to v/holesale customers accounting for 22.2 per cent of total sales. Residential customers' average consumption increased 8.0 per cent during the year to 10,142 kilowatt-hours while the average price rose 6.3 percent to 2.02 cents per kilowatt-hour. Since 1963 average residential usage has increased 105 per cent from 4,926 kilowatthours. During the same time the average price rose 9.7 per cent from 1.84 cents per kilowatt-hour. The maximum system demand for electricity occured at 4 p.m. on July 23,1973 when a ]&ak hour demand of 7,940,200 kilowatts was recorded. At that time, the company was generating 6,205,300 kilowatts and receiving 406,000 from associated companies and 1,328,900 kilowatts from non-associated companies. The rated capability of Georgia Power's generating plants was 7,932,400 kilowatts. During 1973 Georgia Power invested a record $524,397,000 in con struction of new facilities. The 1974 construction budget is expected to exceed $550 million. The 800,000-kilowatt unit 1 of the Edwin I. Hatch Nuclear Plant was 93 per cent complete at the end of 1973. Construction continued on a second unit which is scheduled for operation in 1978. At Plant Bowen construction work concentrated on units 3 and 4 while earth work activities continued at Plant Wansley. Work on two 350,000kilowatt additions at Plant Yates moved towards completion of the units in 1974. No work was done at the Wallace Dam or Rocky Moun tain pumped storage sites. Poor earnings had forced suspension of the two projects in December, 1972. In January, 1974, the company announced plans to resume work on the hydro projects. Three com bustion turbines at Plant Vogtle were placed in operation to provide power during peak demand periods. The Atlanta Steam Heating Plant also went on line in 1973 replacing two older downtoitn plants. During 1973-1975 the company will spend an estimated $247 mil lion for environmental protection and enhancement. To comply with Georgia air quality control standards, projects to upgrade pollution control facilities were undertaken at Plants Arkwright, Branch, Hammond, McDonough and Mitchell. More efficient precipitators and 45 , ;'tO E , l ; ;:-i i H ,: t.... :3'?-, UISM9n& ' 1-wcft f V ' C - '5O 3ft :1V;.'''. I c i ' . t ' I .., ini.C'&S.mcI . , fSV.s l^TS na {;'/. * \% m si^O lX. ^.VjO Si-Qita'^- Lir N&X* l&Vw 4. ir - 'I h n ^ . $ * & '., ; ',1, *: . . r'vityjQRfjt., o..- .;c'c -lii i ! # i l .- B . \ V V -'4- :, ' . ; - 1 5 /'- i ' X:y % % a ; t i . :y: v :- . f r : j tic o .: v * 1 . 1 ! o o & i t c i smsI S m , . ' , 1 ' ; . " '' I. , i. - . S^n * J aVOIX . l'C.^ ' ` t \ t '' 'A'-. '" '1; .TLt.C'i 'S& ' '<&!** ' O ../.. ' $ ... ' : ' jatbew ,o ,it:'; 1 1 'i r;..;^2;';i h - i r - i * ; * , ..';VI -, $ # P ype o e`J f.vin^w&*"W0si :i$% $ % 1 f r : . 3WIdfa ^ f c o ...ni CA . . I I " . i : ^ m 'O i :I',.-V!..o EyOp M Vi. : ....... V.'..; i;' ' V `, .' .' . t i v : * s ' ' tCC fe!f3 '.' ;`:C-t drl&Wl xa- X V 1-. X t.%!$,. f i l . fM &untnao n o i o ^ t i u r s ^ ,, i A e i i o - i ^ . - n^t i ^ cffe$*| ': >:i ,x q o - i o . -.t*i :i.i w ? - 0 0 0 * $ & o v tt u o .xnoV. w s & % $ f ; ' ' E -,tr ai * .,rec<> fi-iwoE ' ' i '> ^toiw oft yi&rsi %o p s e s a lila .1 ': . -*: u* V ''''. ? * " 1; ' X: ' *'O 1 #%1 * ' . /,...; _ .' se <; ' .;f . v. . ; S, 3u5 &"X%CJfO iVL /i t t v'St - .. ' i ' 0313 i a tfit , ' ,li ' `" ' fe t1 dS r ! ^ taller stacks were part of the modifications to be completed in 1975. Again to meet state air quality standards, four units at Plant Atkinson were converted from coal fired to oil burning. The variety of types of generating facilities in operation and under construction by Georgia Power contributes to the company's goal of providing adequate reliable elctric service using economical, available fuels. In 1973 coal was used to generate 30.3 per cent of the electricity; hydro power, 6.9 per cent; natural gas, 6.8 per cent and oil, 6.0 per cent. Because of this generation mix, Georgia Power customers were not faced with the hardships many customers of northern utilities confronted in the fall of 1973. The company's relatively slight use of oil for generation and its heavy reliance on coal allowed it to continue supplying customers' demands while cooperating fully with federal and state energy allocation programs. Though generating fuels were available in necessary amounts costs escalated significantly. By late 1973 a gallon of No. 2 fuel oil cost 37 cents and a gallon of No. 6 oil was 17 cents compared to prices earlier in the year of 19.5 cents per gallon for No. 2 and 7 cents for No. 6. Due in part to the rising cost of fuels and the increased generation necessary to meet demand, total fuel expenses increased 18.73 per cent to $157.8 million. The company constructed 228 miles of transmission lines and 759 miles of overhead distribution lines. More than 70 per cent of the 33,158 new customers served in 1973 w e re provided underground distribution facilities. Four hundred trench miles of underground conduit and more than 700 miles of underground cable were installed, a 35 per cent increase over 1972. Georgia Power net income after dividends on preferred stock amounted to $70,871,000 on revenues of $603,116,000. Operating ex penses totalled $471,469,000 and interest charges rose to $91,525,000. City, county, state and federal tax liabilities of $63,951,000 were incurred. The company's record $524 million construction program required raising $420 million of capital from external sources. The Southern Company contributed $124 million in common equity during 1973. Georgia Power issued $115 million principal amount 30-year bonds. An additional $39 million was received from the sale of pollution control bonds by the Development Authority of Bartow County. Short term loans accounted for the remaining $148 million of construction capital. In June, 1973 the company petitioned the Georgia Public Service 46 Commission for a temporary rate increase to yield $11,1 million in revenue prior to September 30, 1973, The increase was granted but the price freeze effected as part of the national economic stabilization program delayed its implementation to August 13 and forced a postponement of the planned December bond issue due to in adequate earnings. The company had also filed for an $86 million increase in rates which included the emergency increase. In December the PSC granted $67,8 million recognizing the need for earnings sufficient to support financing of the vital construction program. Additional financing in early 1974 made possible by the rate increase permitted resumption of work on the four projects halted in 1972, A request for an increase in rates charged municipal power systems and rural electric cooperatives was filed with the Federal Power Commission in April, An FPC agreement allowed the company to bill these customers subject to refund. At that time a preliminary decision on a case filed three years earlier was being appealed to the full commission. 47 >$% 1 : I k: : " & i t i i q B o & q ft o& os . - J.; f X M K l - * 3 fi: i j t t i - o tf* . >3i :.,i . o '- W H f m '. Jfe q M * E* -.Kl 4--ili'ic ATLANTA GAS LIGHT COMPANY Atlanta Gas Light Company served 195 municipalities and 83 counties in Georgia with natural gas on December 31, 1973. Number of gas customers on that date was 673,092, an increase of 17,478 over the previous year-end figure. Of the increase, 15,702 were residential customers, 1,797 commercial, 26 fewer industrial due to reclassifications and five public authorities. OPERATING REVENUES During the twelve-month period ended December 31, 1973 Operating Revenues increased $22,462,436 to $205,092,242. Net income increased $5,057,162 to $11,698,783 and earnings available for common stock amounted to $2.27 per share as compared with $1.25 for the previous corresponding period. The increase in revenues and earnings was principally due to a general increase in gas rates effective January 15, 1973 and greater sales of gas for heating because of colder weather in January and February 1973. EXPENSES Operating expenses for 1973 totalled $186,044,913, an increase of $16,170,040. Of total operating expenses, cost of gas accounted for $125,566,198 (or more than 67 percent), compared v/ith $120,783,328 in 1972. Construction expenditures amounted to $25,303,881 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. They 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 comsuption 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 considerations 48 and economic factors have delayed development of potential gas sources Because of nationwide gas supply conditions, the FPC has directed interstate 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 entitled to the highest priority and that large volume industrial users that can use other fuels are accoreded the lowest priority. Under this policy it is likely that all of the Company 's pipeline suppliers v/ill 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 restric tions 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 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 adjustment 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 conditions 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. 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 1/600th 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 49 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. 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. 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, a Summary Judgment in favor of the Company and other utilities was entered by the trial court with the consent of DeKalb County. This disposes of the case. FPC MATTERS During 1973 Atlanta Gas Light Company took an active part in rate, gas supply and curtailment proceedings before the Federal Power Commission. The three pipeline suppliers for the State of Georgia; Southern Natural Gas Company, Transcontinental Gas Pipe Line Corporation and South Georgia Natural Gas Company, made numerous requests in concerted efforts to obtain additional natural gas supplies and sufficient increase in rates to off-set rising costs 50 in the production and transportation of natural gas from onshore and offshore Texas and Louisiana, In several rule making procedures, plans for curtailing various types of services were developed in an effort to uniformly allocate the natural gas supply from each pipeline. Two of the gas suppliers for the State of Georgia; Southern Natural Gas Company and South Georgia Natural Gas Company, its wholly owned subsidiary, supplied the daily contract volumes of gas at each delivery point throughout the year. The operation of an underground storage field in northeastern Mississippi along with additional supplies from natural gas producers made it possible for Southern Natural to increase its deliveries throughout its system, more than 10,800,000 Mcf over 1972 of which 7,700,000 Mcf was delivered in the State of Georgia. Transcontinental Gas Pipe Line Corporation's monthly curtailments to each of its customers ranged from 4.1% to 19.6% below daily contract volumes. In Docket No. RP74-48, Transcontinental requested, not only a change in the level of their rates, but also includes important rate design and con junctive billing issues. This proceeding has not been completed and is most important, since the Federal Power Commission Staff is recommending a modification of the type of billing procedure Transcontinental has followed for more than fifteen years. These proceedings will, no doubt, be concluded in the coming year. The energy crisis not only applies to the supply of natural gas but also other forms of energy. The Federal Power Commission conducted meetings of natural gas distribution companies during the early part of the year in an effort to determine the type of uniform information that could be obtained from each distribution company. Various rule-making orders were then issued out lining priorities of service along with guide lines for each supplier. Our suppliers then filed revised curtailment plans in an effort to comply with the rule-making orders. Only one of our suppliers. South Georgia Natural Gas Company, has been permitted to place this type of curtailment plan into effect. Transcontinental is operating under a plan approved over two years ago which curtails each customer's daily contract volumes equally. Southern Natural Gas Company is operating under a plan placed into effect January 12, 1971 which, so far, has curtailed the supply of natural gas for power plant, and other industrial use, in excess of the daily contract demand for each delivery point. Through the efforts of the customers of Transcontinental and Southern Natural Gas Company, the application of the curtailment plans has been delayed until further data is obtained. 51 GAS PIPELINE SAFETY Calendar year 1973 completes the fifth year of the grant-in-aid certification agreement, under the Natural Gas Pipeline Safety Act of 1968, of the Gas Safety Office of the Georgia Public Service Commission with the Office of Pipeline Safety of the Federal Department of Transportation. During the year the Commission continued to regulate the safety standards of the four privately-owned natural gas distribution companies operating in Georgia, as well as portions of those municipally-owned gas systems which have facilities outside the boundaries of the county or counties wherein the municipality is situated. This regulation by the Commission consists of compliance by these gas companies to Title 49, Code of Federal Regulations, Part 192, "Transporta tion of Natural and Other Gas by Pipeline: Minimum Federal Safety Standards The following items were accomplished during the calendar year 1 . An extensive hiring effort resulted in the employment of additional personnel such that the staff at year's end was as follows: (a) One Engineer III, working approximately half-time on gas safety matters. (b) Two Engineers II, one full-time and one half-time regarding gas safety. (c) Two Gas Safety Inspectors. (d) One Secretary, working approximately half-time on gas safety. 2, A total of 46 separate gas safety inspections on 31 offices of gas distribution systems resulted in the disc o v e r of 50 items of noncompli ance to the Minimum Federal Safety Standards, These items were scheduled to be cleared during calendar year 1974, 3, In cooperation with the Office of Pipeline Safety, the Gas Safety Office sponsored an Industry Seminar on Natural Gas Safety in Atlanta on November 12 and 13. This seminar, the first of its type in the Southeast, attracted 55 attendees. A second seminar is scheduled for June 18 and 19, 1974. 4. Additional technical equipment was purchased for use by new personnel in their safety inspections of intrastate gas facilities. 5 . A thorough review of existing gas pipeline and distribution certificate files revealed the need for several revisions. This is anticipated to be completed in 1974. At the end of 1973, it was determined that the Com mission had partial jurisdiction over 28 of the 89 municipal gas distribution systems operating in the state. 52 6, A total of three natural gas explosions occurred during the yearone each in Atlanta, Macon, and LaFayette. Personnel from the Gas Safety Office investigated the accidents in Atlanta and Macon, both of which involved properties of the Atlanta Gas Light Company, The explosion in Atlanta was the result of third-party damage, and that in Macon was instigated with criminal intent, The gas property in LaFayette is not subject to the regulatory jurisidiction of the Commission, 7, Personnel from the Gas Safety Office assisted the National Transportation Safety Board in the final investigation of the natural gas explosion which occurred at the Grady High School in Atlanta in 1972, 8, An engineer from the Gas Safety Office was appointed to formulate the Natural Gas Emergency Plan for Georgia under the Civil Defense Act of 1951, 9, Personnel from the Gas Safety Office attended the following meetings and conferences: (a) National Association of Regulatory Utility Commission Engineers 51st Conference, Salt Lake City, Utah, (b) Georgia Business and Industry Association, Governors Conference on Energy, Atlanta, Georgia, (c) Federal Power Commission Proceedings on Natural Gas Supply, Washington, D, C, (d) Safety Evaluation of Gas Pipeline Systems Course, Transportation Safety Institute, Oklahoma City, Oklahoma, (e) Southeastern Gas Distribution Short Course, Tuscaloosa, Alabama, 10, Grant-in-aid reimbursement for the 1973 Gas Safety Program in the amount of $26,273 was applied for and subsequently approved by the Office of Pipeline Safety, pursuant to Section 5(c) of the Natural Gas Pipeline Safety Act of 1968, 53 !$U? / 0oV S^fAyiJ> ^*OOO'J^ t; 7U*V\, Trg7 tc*v*A, ^*00^