Report of the Georgia public service commission. One hundred and second report, 1974

January

DOCUMENTS UGft LIBRARIES
1, 1974

To January 1, 1975

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. W. Hill S. G . McLendon H. \h 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
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 ---

S T A T E OF G E O R G I A GEORGE D. BUSBEE, GOVERNOR 102nd Report of
GEORGIA PUBLIC SERVICE COMMISSION ?44 Washington St, S,W. Atlante,Georgia 30334
January 1, 1974 to January 1, 1975
Ben T. Wiggins, Chairman William H. Kimbrough, Vice Chairman Mac Barber, Commissioner Robert C. (Bobby) Pafford, Commissioner Ford B. Spinks, Commissioner A0. Randall, Secretary
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COM MISSIONERS BEN T. W IG G INS.c h a i r m a n WILLIAM H. KIMBROUGH. V IC E C H A IR M A N MAC BARBER ROBERT C.(BOBBY)PAFFORD FORD B. SPINKS
(Is u r g i s p u b l i c irritier (rnttissiutt
2 4 4 WASHINGTON STREET, S.W.
At l a n t a ,Ge o r g i a 30334

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

To His Excellency George D. Busbee Governor of Georgia
Dear Governor Busbee:
As provided by law, the Georgia Public Service Commission submits herewith the 102nd Annual Report of the regulatory activities of the Commission for the year ending December 31, 1974
Respectfully submitted,

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102nd ANNUAL REPORT
Introduction
The Annual Report of the Georgia Public Service Commission covering the activities for the year ending December 31, 1974 is submitted herewith in com pliance with the law.
The personnel of the Commission as of December 31, 1974 were as follows:
Ben T. Wiggins, Chairman William 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 of the year 1974 is as follows
Administrative Section
David 0. Benson, Executive Director A. O. Randall, Executive Secretary C. Heath Armfield, Assistant to the Executive Director Thomas G. Arnold, Administrative Officer John R. Price, Reporter Katherine J.Anderson, Assistant Reporter Mrs. Jean B. Trisch, Accountant II Mrs. Jackie B. Mercer, Personnel Assistant II
Utility Engineering Section
James J. Crudup, Director Utilities Engineering 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 W. Moski, Utilities Engineer II
Auditing Section
Ralph S. MeLemore, Jr. Director Utilities Financial Analysts John W. Buckingham, Utilities Financial Specialist B. B. Knowles, Utilities Financial Specialist Irvin G. Bentley, Utilities Analyst II James H. Cole, Utilities Analyst II Leonard C. Gonsalves, Utilities Analyst II Donald H. Craig, Utilities Analyst II Nclan E. Ragsdale, Utilities Analyst II Bernard Goss, Economist S.D. Weaver, Utilities Analyst I Mrs. Caroline Williamson, Utilities Financial Analyst
Gas Inspection
Mitchell Ingram, Gas Safety Inspector II Charles F. Spencer, Gas Safety Inspector II Benny H. Andrews, Gas Safety Inspector II

%

Transportation Section

L. Thomas Doyal, Sr., Director Certification and Enforcement Horace F. Hartley, Director Transportation Rates and Services Gordon E. Ganka, Transportation Rates Specialist III Robert Richard Ginn, Transportation Rates Specialist III James D. McGouirk, Transportation Rates Specialist II Albert R. Bush, Transportation Rates Specialist II George E. Thurmond, Transportation Rates Specialist II M. C. Dalton, Jr., Registration Officer David R. Meeks, Supervisor, Law Enforcement Officers

Special mention should be made of the retirement on July 1, 1974 of Colonel Robert B. Alford, Chief Utilities Engineer of the Commission, who had been an employee of the Commission since 1934 except for the time he served in the armed forces during World War II. His frequent contact with the managerial personnel of the telephone, electric and gas utilities of the state enabled him to provide the Commission and its staff with instant financial and: service information on the status of these companies. His commanding personality and friendly disposition were instrumental in satisfactory conclusions of many complaints against, and conflicts between, these companies. They also engendered harmony and cooperation among the employee personnel of the Commission.

During the year the Commission conducted six hundred aighty--five public hear
ings. Public hearings commence on the second and fourth Tuesdays in each month and continue on successive days thereafter until all current applications and petitions have been disposed of. All matters docketed for public hearing are heard by the entire Commission in open session, a majority of the Com mission constituting a quorum.

MOTOR CARRIER CERTIFICATE AND LICENSE FEES

The Commission is charged with the responsibility of collecting and account ing for motor carrier certificate and license fees. The total certificate, permit and license fees collected and remitted to the Fiscal Division, De partment of Administrative Services, during the year 1974, are as follows:

January 1, 1974 to January 1, 1975

Certificate fees at $35*00 each, and certificate transfer

fees at $7*50 each

-$

9,#40.00

Registration Permit Fees at $25*00 each and amendment fees at $5*00 each

537oO.O~~O

Regular License Fees at $5.00 each and $25.00 penalty each 85,&&5.00

Regular Identification Stamp fees at $5.00 each; Regular multiple registration Stamp fees at $1.00 each and penalty stamp fees at $25.00 each

9^,094*00

TOTAL

$1,137,579.00

In addition to the foregoing certificate and license fees of $1,137579.00 collected by the Commission, the Railroads and Utilities under the jurisdiction of the Commission were subject to a tax assessment which produced a sum $560,000.00 which was collected by the Property and License Tax Unit o e Department of Revenue, making a total of $1,697,579.00.

COMMISSION DECISIONS

During the year 1974 the following Executive Session decisions were made by

the Commissions Motor Carrier Certificate applications:

Approved................... ...............317

Denied

.... ...... ....... 12

Withdrawn. ..... ............... .......... 25

D i s m i s s e d . ^ 12_____

Total

366

Certificate transfer applications:

Approved ............................. . 44

Withdrawn ........................ ..... 1

Dismissed...... .

_ ._4_

Total

49

Certificate amendment applications: Approved ......... Withdrawn ....... Denied ......... .
Dismissed ...........

Total

97

Certificate control through transfer of

capital stock

1-5.

Total

15

Certificates cancelled .............. *....... 20 Certificates suspended ............. ....... 12 Certificates reinstated ....... ......... H 9 ---
Total

Motor Carrier Emergency Permits

Registration Permits Issued !

.

Registration Permits cancelled (Undetermined),

301
28 1,998

Rules Nisi issued (other than for insurance) Q Rules Nisi dismissed (other than insurance) 2

Total

10

Certificate and.Permit Insurance Rules Nisi Issued (Undertebmined)

Miscellaneous ............?........ ....... ..345

Total -5~-

3 ,204

Total brought forward from Pp rre 5

3 204

Transportation Rates & Service Department: Railroads & Motor Carriers: Docket Decisions..............lo Non-Docket Decisions ............ . It 197
Total

1,213

Utility Rates & Service Department

Docket Decisions

.......... .

172

Non Docket Decisions

15.8_

Total

330

TOTAL ALL DECISIONS...... * ,4747 J

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TRANSPORTATION General

During 1974, the Commission and its Transportation staff officially disposed of, in addition to the formal proceedings listed below (most o which were made the subject of written opinions), 1,286 transportation r<*te and service matters, a considerable number of which required lengthy stud es
and investigations in the field.

FORMAL CASES FOR YEAR 1974

Docket No. Date

Subject

Disposition

6353-M

1-15-74

Application of the Georgia Household Movers Assoc., Inc., on behalf of the carriers party to its Georgia Intrastate Tariff, GPSC-MF 7, for authority to increase their intrastate household goods rates to same level as In effect on interstate commerce.

Approved in
part only

6377-M

1-15-74

Application of Manufacturers Transport Corp. for authority to reduce the rate on Commodi ties All Kinds as published in Item 13205 series of its Tariff 2, GPSC-MF 4, applicable from Atlanta, Georgia to Savannah, Georgia.

Approved

6388-M

3-5-74

Application of Greyhound Lines - East, to

Denied

discontinue passenger service between Atlanta

and Lawrenceville, Georgia (trips 6970 & 6971).

6471-M

4-2-74

Application of Georgia Motor Trucking Assoc., Approved

Inc. for authority to increase rates and

with

charges sought in Supplement 28 to GMTA

exceptions

Tariff 5, GPSC-MF 13.

6438-M 6491-M

4-16-74

Rule Nisi against Fleet Transport Company,

Approved

Inc. (a Georgia Corp.) to show cause why

Class "Bn Certificate 2583 authorizing the

transportation of petroleum products in bulk,

in tank trucks, between all points in Georgia,

over no fixed route, should not be cancelled

and revoked for failure to provide service as

a motor carrier for the transportation of

liquefied petroleum gas.

5-.i7-.74 Application of Greyhound Lines - East, for authority to discontinue Run 5951 and Run 1926.

Approved with
exceptions

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FORMAL CASES FOR YEAR 1974 (Cont'd)

Docket No. Date

Subject

6504-M

5-20-74 Application of Tennessee Trailways, Inc. to discontinue Run 115 and Run 126.

750- R

6- 18-74 Application of Southern Freight Tariff Bureau for authority to increase railroad freight rates and charges - Ex Parte 303-A

751- R

7-9-74

Application of Seaboard Coast Line Rail road Company for permission and approval to institute condemnation proceedings for the purpose of acquiring certain property located in Ware County, Georgia.

Disposition
Approved in
part only
Approved with
exceptions
Approved

740-R

7-9-74

Application of Southern Railway for authority to implement a mobile agency serving the towns of Eastman, Helena, McRae, Lumber City, Hawkinsville, Empire, 8.8 Mile Post, Woodyard, Gresston, 296 Woodyard, Godwinsville, Chauncey, Scotland, Towns, Walker Siding, with base station at Cochran, Georgia.

Approved

6622-M

7-23-74 Proposal of Southern Motor Carriers Rate Conference for interim intrastate rate increase for Class nA" carriers

Approved in
part

6586-M

7-23-74 Application of Continental Atlantic Lines, Inc. to provide changes in Runs 30, 8 and 10 from Columbus, to Augusta, Georgia.

Approved

752-R

8-6-74

Application of Seaboard Coast Line Railroad

for authority to implement a mobile agency

Approved

serving its agency stations at Winder, Comer, with

Elberton, and Jefferson and its non-agency exceptions

stations of Colbert, Statham, Oconee Heights,

Stoneham, Norman, Ethridge, Granite Spur,

Berkeley, Hull and Bogart with base station

at Athens, Georgia.

6647-M

8-6-74

Application of Continental Atlantic Lines to eliminate Run No. 13 operating from Augusta, Georgia to Columbus, Georgia.

Approved

6623-M

8-6-74

Application of Mike Goldgar, d/b/a Northside Approved Air Terminal Transportation Company, for authority to establish rates and provisions as outlined in their proposed Tariff, GPSC-MF 2.

FORMAL CASES FOR YEAR 1974 (Cont'd)

Docket No. Date

Subject

Disposition

749-R

9-16-74

Application of Louisville and Nashville Railroad for authority to implement a mobile agency serving its agency stations at Blue Ridge, Ellijay, Whitestone, Tate, Ball Ground, Canton and non-agency stations at Mineral Bluff, Kiker, Gennett, West brook, Ruden, Jasper, Nelson, Teague, Keithsburg, Holly Springs, Woodstock, Blackwell, with the base station at Tate, Georgia.

Approved

753-R

10-3-74

Applications of the Louisville and Nashville Railroad requesting authority for the can cellation of rates and provisions between Tate, Georgia and various points in Georgia as published in SFTB Tariff 913-L, Supple ment 74; also requesting authority for the cancellation of rate basis and commodity column rates between Tate, Georgia and points in Georgia as published in SFTB 978-D,
Supplement 23.

Approved

754-R

10-29-74 Application of Southern Freight Tariff Bureau Approved

for authority to increase railroad freight

with

rates - Ex Parte 305-A.

exceptions

6800-M

10-29-74

Application of Tennessee Trailways, Inc. for authority to discontinue Run 126 departing from Atlanta, Georgia arriving in Chattanooga, Tenn.

Approved

6188-M

11-26-74

Petition of Schwerman Trucking Company for

Denied

rehearing, reconsideration and oral argument

of the decision of the Commission of November 20,

1973, in approving the application of Fetz, Inc.

for Class "B" Certificate for the transportation

of petroleum and petroleum products, in package

and in bulk, in tank vehicles, between all points

in Georgia, over no fixed route, and the subse

quent issuance of Class "Bn Certificate No. 4790

after proper compliance on November 21, 1974; a

petition filed on behalf of Fleet Transport Com

pany, Inc., White Truck Line, Inc., and Chemical

Leaman Tank Lines, Inc., having been denied on

December 4, 1973.

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TRUCK RATES AND SERVICES
In November of last year, the Georgia Household Goods Movers Asso ciation sought authority to increase their intrastate household goods rates to the same level as in effect on interstate commerce. At the public hearing on December 13, 1973, applicants presented exhibits and testimony of several witnesses. There were no protestants to the appli cation. By order dated January 15, 1974, the Commission found that expenses incurred by these carriers had increased substantially since the last adjustment in household goods rates, particularly in the area of wage and packing material costs for both hourly and mileage movements. Accordingly, in recognition of such added costs, the Commission approved the increase in hourly rates to the level sought and approved an increase in the mileage rates but only to the level in effect in Alabama and North Carolina. The Commission authorized an increase in packing charges but for a lesser amount than proposed and ordered that charges for con tainers, packing and unpacking be separately stated so that a shipper would be charged only for the specific services actually performed. Storage-in-transit charges and warehouse handling charges were authorized to be increased to the levels sought.
By tariff filing in November of last year, the Manufacturers Transport Corporation sought authority to reduce the rate on Commodities All Kinds from the present rate of 68 cents per mile to 52 cents per mile on ship ments moving from Atlanta to Savannah under applicant's contract carrier authority. In consideration of a protest filed by Brown Transport Corp oration, the proposal was suspended and assigned for hearing on Decem ber 4, 1973, at which time exhibits and testimony were presented by appli cant and protestant. At the hearing it was developed that the traffic in issue was to be handled as a back haul movement and that the proposed rate would avoid loss of the traffic to private carriage. By order dated January 15, 1974, the Commission approved the proposed reduced rate.
In December of last year, motor carriers participating in the Georgia Motor Trucking Association, Inc., Class "B" tariff, sought autho rity to increase their less-truckload and any-quantity rates by 15% and their volume or truckload rates by 10%. At the hearing on March 14, applicant carriers presented exhibits and testimony in support of the increased rates. There were no protestants to the application. By order dated April 2, 1974, the Commission found that the costs of the Class "B" carriers had risen considerably since the last general increase in their rates in December of 1972 and authorized the effectiveness of the pro posed rates, provided that the proposed class rates were not to exceed class rates presently in effect for Class "A" carriers. The order also provided that the surcharge on fuel of 4% which had been approved by the Commission on March 4 be made subject to an expiration date of six months from the effective date of the proposed increases.
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In February, a Rule Nisi was Issued against Fleet Transport Company, Inc., to show cause why Class "B" Certificate No. 2583 authorizing the transportation of petroleum products, in bulk, in tank trucks, between all points in Georgia, over no fixed route, should not be cancelled and revoked for failure to provide service as a motor carrier for the trans portation of liquefied petroleum gas. This matter came on for hearing on February 26, at which time it was determined that the respondent carrier was not handling any liquefied petroleum gas and that its trailers formerly used for the transportation of this commodity had been obtained by another carrier that specialized in its movement in Georgia. By order of April 16, the Commission amended the certificate in issue so as to exclude from it the authority to transport liquefied petroleum gas.
By the filing with the Commission on April 16, of a supplement to the Class ''A" Motor Carrier Tariff, all Class "A" carriers parties to that Tariff sought authority to place into effect on Georgia intrastate traffic increases in rates and minimum charges to the level applicable on interstate traffic as of February 11, and such increased rates and minimum charges would also be subject to a 3% emergency fuel surcharge authorized by the Commission on February 25. 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. Prior to assignment of hearing on the proposed increases, appli cant carriers filed on June 17, a petition seeking immediate revenue relief to apply during the interim period pending final decision in the proceeding. The application for interim relief, which sought either the full measure of the proposed increase or such portion as the Commis sion would permit pending final disposition, was assigned for hearing on July 2. Following hearings and the submission of evidnece by both the applicants and six protestants, the Commission authorized on July 25, an interim increase in the minimum charge to $7.50 per shipment and an increase in less-truckload, any-quantity and volume or truckload rates of 8% on shipments moving between points taking rate basis distance of 120 or less and 4.5% on shipments moving between points taking rate basis distance over 120. The increases were allowed to become effective on August 1 provided that in no instance should any such increase exceed that originally sought. The special emergency fuel surcharge of 3% was to continue in effect in addition to the authorized interim increases. Thereafter, the Commission assigned the application containing the full measure of increases originally proposed for hearing on September 12. By order dated October 15, 1974, the Commission found that carrier operating costs had increased significantly since the last permanent rate increase and that this would have a detrimental affect on motor carrier service provided to shippers of Georgia intrastate traffic by these carriers unless they received additional revenue. Under the circumstances, the Commission ordered the proposed increased rates and m~fr>imttm charges to be cancelled but authorized that the interim increases which became effective on August 1, be made permanent, that an additional increase of 4% be applied to less-truckload and any-quantity rates, and that the 3% fuel surcharge become permanent and be reflected into the rates and minimum charges. With the 3% surcharge applied, the minimum
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charge per shipment became $7.73. The order provided that such authorized increases could become effective not earlier than November 1, but should in no instance exceed the amount of increase originally sought.
By the filing of a petition with the Commission, Schwerman Trucking Company requested rehearing, reconsideration and oral argument of the decision of the Commission of November 20, 1973, in approving the appli cation of Fetz Incorporated for a Class "B" Certificate for the trans portation of petroleum and petroleum products, in package and in bulk, in tank vehicles, between all points in Georgia, over no fixed route, and the subsequent issuance of Class "B" Certificate No. 4790 after proper compliance on November 21, 1973. Another petition filed on behalf of Fleet Transport Company, Inc., White Truck Line, Inc., Atlanta Motor Lines, Inc., Atlanta-Asheville Motor Express, Inc., and Chemical Leaman Tank Lines, Inc., was denied on December 4, 1973. In its order dated November 26, 1974, the Commission considered in detail each of the alleged reasons supporting the request, and after finding no validity in any of such reasons, denied the petition.
RAIL PASSENGER SERVICE
Railroad passenger service in the state continues to operate independent of Amtrak, although on or after December 31, 1974, the termination date for the Georgia railroads to either join Amtrak or continue independently, service may be re-evalutated to determine if continued passenger service is contributing to its fair share of the revenue needs of the railroads. Passenger revenues continue to decline while the costs for repair and replacement continue to escalate.
RAIL FREIGHT
During the year there were two general revenue increase proceedings involving railroad freight rates related to the increases authorized on interstate traffic by the Interstate Commerce Commission in Ex Parte 303-A and Ex Parte 305-A.
By petition dated March 4th, the railroads sought the Ex Parte 303-A increases in Georgia. At the hearings it was developed that the rate of return of the six Georgia Class 1 railroads had risen to 5.42% which is considered reasonably stable but would not remain at this level unless Ex Parte 303-A increase of 4% was granted by the Commission. It was further developed that the cost increase incurred by these rail roads since the last increase in rates was approved would exceed the revenue to be gained by the grant of Ex Parte 303-A by 52% indicating the railroads have held their revenue needs to a bare minimum. There were no protestants to the railroads' application as the carriers* evidence convinced the Interstate Commerce Commission and shipping public that without additional revenue a decided curtailment of services and replacement equipment would be the end results. The Commission found that there was a need for additional revenue and the approval of the increase would result in the same measure of increased rates made applicable in other adjoining states in the south, and therefore, approved the increases as sought.
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By petition dated July 19, the railroads sought still further increases in freight rates -- this increase the same as presently granted by the Interstate Commerce Commission in Ex Parte 305-A of 10%. The matter was set for hearing in September at which time one protestant appeared in opposition to increasing the intrastate rates on sand and gravel by 10% when this increase had not been applied to his interstate competition located at Shorters and Tysonville, Alabama, on shipments of sand destined to Atlanta, Georgia.
At the hearing it was developed that the six Georgia Class I rail roads* rate of return dropped from 5.42% to 5.34% in the six-month period since the last increase in rates had been granted. The principal factor attributable to the increased costs of operations was the fuel shortage that increased fuel prices rapidly affecting all raw and finished material costs used by the railroads. It was further developed that equipment costs had tripled in the last two years with no firm price being quoted by the car manufacturing companies. The Interstate Commerce Commission recognized the railroads* revenue needs and in their order granting the Ex Parte 305-A increases specifically designated that 7% of the revenue collected must be used for improvement of plant and facilities with the remaining 3% for administration purposes.
The Commission, after review, found there was an urgent need for the railroads to obtain additional revenue and the approval of the increase would be consistent with other adjoining states in the south. Therefore, they approved the increase as sought with the one exception that such increase not be made applicable to carload shipments of sand and gravel within Georgia prior to the date the interstate rates on sand and gravel from Shorters and Tysonville, Alabama, to Atlanta, Georgia, are increased.
By application filed May 6th, the Louisville and Nashville Railroad sought authority to cancel Trailer-on-Flat-Car service from and to Tate, Georgia under Plans II and II 1/2 service that was suspended and set for hearing. At the hearing held on September 12, 1974, it was developed that the only shipper using this type of service at Tate, Georgia, was Georgia Marble Company in the shipment of marble slabs and that the intrastate shipments were few and sporadic. There were no protestants appearing at the hearing. The Commission*s concern in these proceedings related to the removal of a service to Georgia shippers and ordered the carriers to justify their actions.
The Commission, in review of the evidence presented by the appli cant and the prior cancellation of interstate service, found there was no need for this type service and, therefore, granted cancellation of the rates and routes.
CONDEMNATION PROCEEDINGS
In June the Seaboard Coast Line Railroad Company sought authority to institute condemnation proceedings to acquire certain property in Ware County, Georgia to be used to expand the yards for the purpose of
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facilitating its railroad operation at Waycross, Georgia. Following hearing, the Commission found that there would be no station elimination resulting from the construction and that it was clear that such enlarged facilities would enable the railroad to provide more economic and expe ditious handling of railroad traffic, and approved the institution of the condemnation proceedings of the purpose sought.
MOBILE RAIL AGENCY SERVICE
There has been reviewed in detail in the reports of the last several years the mobile agency concept of providing agency service to a number of stations under which one agent can perform the needed services at a savings to the railroad while adequately handling the needs of the public at the involved points. During the year, eleven additional operations were authorized on a permanent basis, five for the Central of Georgia Railroad Company, four for the Seaboard Coast Line Railroad Company and two for the Southern Railway Company. As in all previously approved mobile agency operations, the Commission considered authorization to institute these eleven mobile agencies to be only a six-months* test period and to be subject to the same investigation proceedings during that period as had been observed by the Commission in such prior proceedings.
It should be here pointed out, that at the close of the year all of the mobile agencies previously authorized on either a trial or permanent basis were operating effectively and that the Commission had not received a single complaint against the services so rendered.
PARTICIPATION IN INTERSTATE PROCEEDINGS
The Commission became involved in Interstate Commerce Commission proceedings as filed by the Georgia railroads to abandon rail trackage and eliminate Trailer-on-Flat-Car rates and services affecting numerous shippers and towns in the State of Georgia as set forth below:
By petition filed by the Georgia Northern Railway Company dated May 31, 1974, requesting authority for the abandonment of its line of railroad between Albany and Cordele, Georgia, consisting of 33 miles of track.
ICC Docket No. AB 2, Sub No. 5 PRESENT STATUS: Pending
By petition filed by the Southern Railway Company dated August 30, 1974, requesting authority for the abandonment of its line of railroad between Williamson and Roberta, Georgia, consisting of 40 miles of track.
ICC Docket No. AB 26, Sub No. 4 PRESENT STATUS: Pending
By supplement filing before the Interstate Commerce Commission, the Louisville and Nashville Railroad Company published cancellation of rates,
-14-

routes and facilities for Tariler-on-Flat-Car service at Ringgold, Georgia. Petitions were filed by shippers, Senators, City Counsel and the Commission requesting suspension of the supplements scheduled to become effective October 15, 1974.
PRESENT STATUS: The Interstate Commerce Commission denied suspension and rates were cancelled on interstate commerce.
BUS FARES AND SERVICES
By the end of 1974, there were 49 certificated carriers operating under the jurisdiction of the Commission providing passenger and package express service between substantially all areas of the State. The number of carriers were increased by 13 over last year's total. The route coverage and area remains substantially the same.
During the year several of the intrastate carriers requested authority to make changes in their tariffs, none requiring a formal hearing before the Commission. In addition, there were adjustments in accessorial services however, none involved increases in passenger fares.
There were numerous complaints registered with the Commission against the bus lines and handling was given each incident to the complete satis faction of all concerned.
Many schedule changes were made during the year. Formal hearings were required on 6 of the applications. In November and December of 1973, Greyhound Lines, Inc. filed applications to make adjustment in schedules not only in time of operation, but elimination of service. The routes affected were Atlanta to Lawrenceville, Atlanta to Columbia, S. C., Chattanooga to Atlanta and Macon to Savannah. Protests were filed necessitating a hearing. Following the hearings, the Commission found in some instances that the public convenience and necessity would not be served and denied portions of the applications while granting authority in others.
In December of 1973, Tennessee Trailways, Inc. filed an application to make adjustment in schedules to conform with the mandatory maximum speed limit of 55 miles per hour. This filing was made not only to adjust the operating time but to eliminate service between Atlanta and Chattanooga and return. After the hearing in March of 1974, the Commission felt that inadequate service remained and denied the application. Later in 1974, this bus line again filed an application for elimination of service between Atlanta and Chattanooga, Tennessee and with additional information furnished which removed all protests, was granted permission to cease operation over this route after proper notice to the public.
-15-

During the year, Continental Atlantic Lines filed applications to make necessary adjustments in shcedules affecting Augusta to Columbus, Columbus to Macon, Macon to Americus and Americas to Macon. There were many protests received to the proposed changes which necessitated a hearing. The Commission granted authority to make the changes after complaints had been withdrawn by the protestants. There were adjust ments made in other schedules that answered the needs of the riding public. Still later in the year Continental Atlantic again filed an application to eliminate a schedule operating between Augusta and Columbus, Georgia. There were no protests to this application and the Commission granted the bus line permission to cease operation of this schedule upon notice to the public.
- 16-

CERTIFICATION AND ENFORCEMENT DIVISION

Effective March 1, 1974 the Commission's Transportation Division was reorga nized into two divisions - the Certification and Enforcement Division under the direction of L. T, Doyal, and the Rates and Services Division under the direction of Horace F. Hartley.

The Certification and Enforcement Division is responsible for receiving and processing all motor carrier applications for Certificates of Public Convenience and Necessity? all applications to register Interstate operating authority in Georgia; maintaining the Commission's Motor Carrier files; issuance of GPSC vehi cle registration tags or identification stamps; and enforcing the laws of Georgia and rules and regulations of the Commission relative to "for hire" motor transpor tation. Page 5 of this report contains a summary of Certificate and Registration Permit transactions handled by this division as well as other miscellaneous matters. The enforcement section of this division is composed of a Chief Enforcement Officer, two District Supervisors and thirteen 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 coun ties in the southwest section of the State. The Commission's Area Transportation Representatives make detailed inspections of the general operations of motor trans portation 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 car riers when needed or requested and conducting periodic road checks. In addition, the Area Transportation Representatives perform other specifically designated assignments related to the functions of the Public Service Commission.

During 1974, a number of concentrated road checks were conducted throughout the State, in addition to many other lesser checks made at strategic locations. The major road checks ranged from three to five days duration, while the lesser 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 cir cumvent any permanently established check point. Our Area Transportation Repre sentatives 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 upon whom the public

depends to ship or receive their wares. The Commission's Area Transportation Re

presentatives are highly t-ained in detecting the illegal operator and filtering

through the quagmire of fictitious leases, freight bills, logs, etc. which usually

accompany such operations. During 1974, the Commission's enforcement section was

responsible for 803 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 $169,313.00 being posted in the counties where

arrests were made, and represents a twenty percent increase in the number of cases

made in 1973.

-1 1 -

The Commission, who helped pioneer the development of the Uniform Registra tion Standards of Public Law 89-170 applicable to carriers operating solely in interstate commerce under authority granted by the Interstate Commerce Commission, or carriers operating in interstate commerce specifically exempt from the juris diction of the Interstate Commerce Commission, continues to operate 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 Interstate 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 en acted a bill resulting in vehicle registration and identification fees for all vehicles domiciled in Georgia and vehicles domiciled in states where no reci procity existed with Georgia, being reduced from $25.00 to $5.00 annually. All other motor carrier vehicle registration and identification fees were increased from $1.00 to $5.00 annually. This law became effective for the Commission's 1974 vehicle registration period and places the Commission in complete compli ance 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 trans portation resulting in substantial fines being assessed against those shippers.
Our Area Transportation Representatives continued in 1974 the Commission's 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 form and a tape recorder to enable them to observe motor carrier vehicles while in operation, recording their description, location of inspection, activities and operational 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 (which numbers over 50,000 per year) as well as maintaining all motor carrier files, was responsible for pro cessing 2,295 interstate registration of authority 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 1974 the thirteen Area Transportation Representatives performed thousands of vehicle inspections for operating authority and proper vehicle registration and identification, resulting in detection of 2,327 violations and
-18-

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collection of $35,775.00 in vehicle registration fees where vehicles had not been properly registered with the Commission by the carriers. They also per formed 1,133 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 1,642 other miscellaneous functions in the pursuit of the Commission's business, including personal contacts, special investigatiohs, vehicle observations reports, etcetera.
-19-

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DIVISION
INTRODUCTION
The function of the Utilities Division is to provide the Commission with professional and technical services in order that responsibilities to the public 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.
There has been a considerable increase in the filing of formal complaints, because of the increasing number of utility consumers throughout the State, and because the citizens of Georgia using utilities* services have become more cost-conscious. Thus the public has displayed much greater interest in the formal proceedings of the Commission, and 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. During these hear ings, the consumer learns why utility companies petition the Commission for rate releif, and many express their views, pro or con, toward the utilityrs application. Public knowledge is gained as to the operations of said companies and their cost and expansion or improvement programs.
ENGINEERING DIVISION
The Engineering Staff is responsible, among other functions, for insuring quality of service and equitable treatment to utilities customers. The processing and analyses of all utility tariff filings which include rates, rules and regulations of electric, gas, telephone and telegraph companies con stitute other important functions. Applications for Certificates of Public Convenience and Necessity must be processed, docketed, examined, and accepted or disapproved. One of the most important and time-consuming 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. Many times these investigations require extensive field work, and many type of sophisticated test equipment are often utilized.
ACCOUNTING AND FINANCE DIVISION
The Audit and Financial 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 work load or number of rate and security applications has continued at last year's record setting pace and the size of the staff had to be increased since the inflationary spiral of our economy continues.
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ACTIVITIES

The Commission issued a total of 97 Orders after formal proceedings during the year 1974 involving Utility Companies. The Orders entailed certif icates, 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 this Commission.

At the close of the calendar year 1974, there were under the jurisdiction of this Commission the following number of public utilities:

Electric

2

Natural Gas

4

Telephone*

43

Radio Common Carriers 26

Telegraph

1

*Includes 4 Cooperatives

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DECISIONS AND ORDERS

Applications form ally heard by the Commission are generally taken under advisement and decisions thereon are issued a t a la t e r date. The Commission issued 97 decisions and/or orders during the year in docketed proceedings involving u t i l i t i e s . A c la s s ific a tio n of the proceedings in which formal
opinions and orders were issued follows:

Applications fo r C e rtific a te s or C ancellation Thereof ................. 10

Applications fo r A uthority to Issue S e c u ritie s or Borrow Money . 50

Rate Adjustment Proceedings

..................... 13

Applications fo r Authority to Purchase and Transfer U t i l i t y . . . 6 Properties

A pplications fo r Amendments o f C e r tific a te s .......................................... 15

Applications fo r Amendments of Rules and Regulations ..................... 0

Show Cause Proceedings . . . . General Orders .........................

.................1 .... 2

APPLICATIONS FOR CERTIFICATES OR CANCELLATION THEREOF

Docket No. 2592-U March 5, 1974 C e r tific a te No. 707 Y a te s v ille Exchange

A pplication of Thomaston Telephone Company, Thomaston, Georgia, fo r a C e r tific a te o f Public Convenience and Necessity to e s ta b lis h a new Exchange in the Y a te s v ille area o f Upson County.

Docket No.2539-U A p ril IS , 1974 C e r tific a te No. 708 T o ll Lines

A pplication of Bulloch County Rural Telephone Cooperative, In c ., fo r authority to construct new t o l l f a c i l i t i e s between a l l e x is tin g ex changes w ith d ire c t connection to Southern B e ll's existing to ll fa c ilitie s .

Docket No. 2322-U July 23, 1974 C e r tific a te No. 709 Big Canoe Exchange

A pplication of Nelson-B all Ground Telephone Company, Nelson, Georgia, fo r a C e r tific a te of Public Convenience and Necessity to e s ta b lis h a new exchange in the Big Canoe Community of Pickens County, Georgia.

Docket No. 2513-U October 15, 1974 C e r tific a te No. 710 T o ll Lines

A pplication of Plant Telephone & Power Company, Inc. T ifto n , Georgia, for a C e rtific a te of Public Convenience and Necessity fo r a u th o rity to construct and operate a t o l l lin e from the Warwick Central O ffice Building in Warwick, Georgia, to the c e r tific a te d boundaries between the Warwick Exchange and the Albany Exchange of Southern B e ll Telephone & Telegraph Company on Georgia Highway No. 257.

- 22-

Docket No. 2853-U December 17, 1974 C e r tific a te No. 711 T o ll Lines
Non-Docket Augus t 6, 1974 C e r tific a te No. 131 Gas D is trib u tio n
Docket No. 2589-U A p ril 2, 1974 C e r tific a te No. 43
Docket No. 2588-U May 7, 1974 C e r tific a te No. 44
Docket No. 2601-U (c) October 1, 1974 C e r tific a te No. 45
Docket No. 2641-U November 19, 1974 C e r tific a te No. 46

A pplication of Georgia State Telephone Company and Western Carolina Telephone fo r a u th o rity fo r Western Carolina Telephone Company to acquire a t o l l lin e in Rabun County, Georgia, from Georgia State Telephone Company.
A pplication o f the C ity of Madison fo r C e r tific a te of Public Convenience and Necessity.
A pplication of Radio Telephone, In c ., to acquire owner ship and control o f a Radio U t i l i t y System in A tla n ta , Georgia, said system being operated by Joseph D. Nix, dba Radio Telephone Service.
Application of R adiocall, Inc. fo r authority to acquire the assets and operations o f Answerfone, In c ., a radio u t i l i t y operating in Macon, Georgia.
A pplication of Radiofone of Georgia, Inc. fo r Amendment to it s C e r tific a te o f Public Convenience and Necessity.
Appliation of Porta-Phone, Inc. fo r a C e rtific a te of Public Convenience and Necessity to provide radio u t i l i t y service in the Thomasvil i e -Eiain b rid g e , Georgia area.

APPLICATIONS FOR AUTHORITY TO ISSUE SECURITIES OR BORROW MONEY

Docket No. 2580-U January 24, 1974

A pplication of General Telephone Company o f the Southeast fo r autho rity to s e ll th ir ty m illio n do l lars ($30,000,000) of F ir s t Mortgage Bonds at competi tiv e bidding and to apply the proceeds thereof to repay short-term loans and fo r other purposes.

Docket No. 2579-U January 29, 1974

A pplication of Brantley Telephone Company fo r a u th o rit to issue c e rta in classes of stock re s u ltin g in a reorganization of its c a p ita l structure.

NNon-Docket January 15, 1974

A pplication of Quincy Telephone Company to borrow an a d d itio n al $2,467,500 a t the rate of 7% per annum fo r t h ir t y - f iv e (35) years from the Rural Telephone Bank.

Docket No. 2590-\U February 19, 1974

A pplication of Standard Telephone Company fo r a u th o rit to borrow $4,387,950 a t 7% per annum from the Rural Telephone Bank.

Non-Docket March 19, 1974

A pplication of Nelson-Ball Ground Telephone Company fo auth o rity to borrow $241,071 from Big Canoe Corp. in te re s t free to be repaid on a p ro -ra te basis as customers are connected to the Big Canoe D is trib u tio n System and in terim financing from C itizens Bank, B all Ground, Georgia, by unsecured short-term promis
sory notes bearing in te re s t at the rate o f 8% per
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Docket No. 2602-U June 18, 1974

A pplication of Pineland Telephone Cooperative, In c ., to borrow $3,300,000 from the Rural E le c t r if ic a t io n Adm inistration bearing in te re s t at the rate o f fiv e (5%) per annum fo r a period of 35 years.

Docket No. 2612-U June 4, 1974

Application of Coastal U t ili t ie s , In c ., fo r authority to increase the C ap ital Stock o f the Company from $88,100 to $792,900 by issuing Class B Common and
Preferred Stock.

Docket No. 2624-U July 23, 1974

A pplication of Nelson-Ball Ground Telephone Company to borrow $1,018,000 from the Rural E le c t r if ic a t io n A dm inistration, at the rate of 5% per annum fo r a period of 30 years.

Docket No. 2613-U August 6, 1974 F ir s t Amendatory Order

Applica tio n of Commerce Telephone Company to borrow $2,230,200 from theRural Telephone Bank a t the rate of 7% per annum fo r a period o f 35 years.

Docket No. 2620-U August 3, 1974

A pplication o f Public Service Telephone Company fo r a u th o rity to borrow an a d d itio n a l $1,263,150 from the Rural Telephone Bank a t the ra te of 6.5% per annum fo r a period o f 35 years.

Docket No. 2625-U August 6, 1974

A pplication o f Bulloch County Rural Telephone Coopera tiv e , In c ., to borrow $1,800,000 from the Rural E le c tr ific a tio n A dm inistration at the rate of 2% per annum fo r a period of 35 years.

Docket No. 2634-U September 16, 1974

A pplication of Walker County Telephone Company fo r a u th o rity to issue and s e ll F ir s t Mortgage Bonds, due December 1, 2004, in the p rin c ip a l amount of $1,000,000 to bear in te re s t a t the ra te of 10% per annum.

Docket No. 2655-U December 17, 1974

A pplication o f Progressive Rural Telephone Coop., In c ., to borrow $1,675,000 from the Rural E le c t r if ic a t io n A dm inistration, bearing in te re s t a t the rate of 2% per annum fo r a period o f 35 years.

Docket No. 2579-U December 9, 1974 F ir s t Amendatory Order

A pplication of Brantley Telephone Company fo r a u th o rity to issue c e rta in classes of stock re s u ltin g in a re organization of its cap ital structure.

Docket No. 2644-U December 17, 1974

A pplication of Darien Telephone Company, Inc. fo r a u th o rity to borrow an a d d itio n a l $2,061,150 from the Rural Telephone Bank, bearing in te re s t a t the rate of 7^% per annum fo r a period of 35 years.

Docket No. 2578-U January 2, 1974

A pplication of Georgia Power Company fo r a u th o rity to issue and s e ll $410,000,000 p rin c ip a l amount of F ir s t Mortgage Bonds and 600,000 shares of Preferred Stock and to issue $13,475,000 p rin c ip a l amount of F ir s t Mortgage Bonds fo r sinking fund purposes.

-24-

N o n -D o c k et January 15, 1974

A p p lic a tio n o f W alton E le c t r ic Membership C o rp .fo r ap p ro v a l o f Notes o f $ 1 ,1 4 4 ,0 0 0 to be executed in fa v o r o f the U n ited S ta te s o f A m erica, a c tin g through the R ural E le c t r if ic a t io n A d m in is tra tio n and o f $ 4 9 1 ,0 0 0 to be e x e c u te d in fa v o r o f th e N a tio n a l R ural U t i l i t i e s C o o p erative Finance C or p o ra tio n w ith a s e p a ra te Note o f each o f said le n d e r s to be s e c u re d by a common m o rtg a g e .

N o n -D o c k et January 15, 1974

A p p lic a tio n o f W ashington County E le c t r ic Member ship C o rp o ra tio n fo r a p p ro v a l o f Notes o f $372,000 to be e x e c u te d in f a v o r o f th e U n ite d S t a t e s o f Am erica a c tin g th ro u g h th e R u ral E le c t r i f i c a t i o n A d m in is tr a tio n , and $ 9 3 ,0 0 0 to be executed in f a vor o f the N a tio n a l R ural U t i l i t i e s C ooperative Finance C o rp o ra tio n w ith a s e p a ra te Note o f each o f s a id le n d e r s to be s e c u re d by a common m o r t gage .

N o n -D o c k et January 29, 1974 F ir s t Supplem ental O rd er
N o n -D o c k et January 29, 1974

A p p lic a tio n o f T ri-C o u n ty E le c t r ic Membership Corp f o r a p p ro v a l o f Notes o f $ 4 1 4 ,0 0 0 to be e x ecu ted in fa v o r o f the U n ited S ta te s o f A m erica, a c tin g through the R ural E le c t r if ic a t io n A d m in is tra tio n , and $ 1 7 8 ,0 0 0 to be e x e c u te d in fa v o r o f th e Na tio n a l R ural U t i l i t i e s C o o p erative Finance C or p o ra tio n w ith a s e p a ra te Note o f each o f said le n d e r s to be s e c u re d by a common m o rtg a g e .
A p p lic a tio n o f Douglas County E le c t r ic Membership C orp. fo r a p p ro v a l o f N otes o f $ 1 ,2 7 9 ,0 0 0 to be executed in fa v o r o f th e U n ite d S ta te s o f Am erica a c tin g through the R ural E le c t r if ic a t io n A dm ini s t r a t i o n , and $ 5 4 8 ,0 0 0 to be execu ted in fa v o r o f N a tio n a l R u ral U t i l i t i e s C o o p e ra tiv e Finance Corp w ith a sep arate Note o f each o f said le n d ers to be s e c u re d by a common m o rtg a g e .

N o n -D o c k et February 5, 1974

A p p lic a tio n o f Altam aha E le c t r ic Membership Corp fo r a p p ro v a l o f Notes o f $ 7 7 8 ,0 0 0 to be executed in fa v o r o f the U n ited S ta te s o f A m erica, a c tin g through the R ural E le c t r if ic a t io n A d m in is tra tio n , and $ 1 9 5 ,0 0 0 to be execu ted in fa v o r o f th e Na tio n a l R ural U t i l i t i e s C ooperative Finance C orpor a tio n w ith a s e p a ra te Note o f each o f said le n d e rs to be s e c u re d by a common m o rtg a g e .

N o n -D o c k et February 5, 1974

A p p lic a tio n o f W alton E le c t r ic Membership Corp fo r a p p ro v a l o f Notes o f $ 9 9 2 ,0 0 0 to be execu ted in fa v o r o f the U n ited S ta te s of A m erica, a c tin g through the R ural E le c t r if ic a t io n A d m in is tra tio n , and $ 1 ,1 1 4 ,0 0 0 to be e x ec u te d in fa v o r o f th e Na tio n a l R ural U t i l i t i e s C o o p erative Finance Corp o ra tio n w ith a sep arate Note o f each o f said le n d e rs to be s e c u re d by a common m o rtg a g e .

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Non-Docket February 5, 1974
Non-Docket February 5, 1974
Non-Docket February 5, 1974
Non-Docket March 19, 1974
Non-Docket May 20, 1974
Non-Docket June 4, 1974
Non-Docket June 4, 1974 F irs t Supplemental
Order

A pplication of C a rro ll E le c tric Membership Corp. fo r approval of Notes of $992,000 to be executed in favor of the United States of America, acting through the Rural E le c t r if ic a t io n A dm inistration, and $425,000 to be executed in favor o f the National Rural U t ili t ie s Finance Corporation w ith a separate Note to each of said lenders to be secured by a common mortgage.
A pplication of Okefenokee Rural E le c tr ic Membership Corpora tio n fo r approval o f Notes of $1,114,000 to be executed in favor of the United States of America, acting through the Rural E le c tr ific a tio n A dm inistration and of $279,000 to be executed in favor of the N ational Rural U t i l i t i e s Coopera tiv e with a separate Note of each of said lenders to be secured by a common mortgage.
A pplication of Coastal E le c tr ic Membership Corp. fo r approval of Notes of $760,000 to be executed in favor of the United States of America, acting through the Rural E le c tr ific a tio n Adm inistration, and of $190,000 to be executed in favor of the National Rural U t i l i t i e s Cooperative Finance Corporation with a separate Note of each o f said lenders to be secured by a common mortgage.
A pplication of the L i t t l e Ocmulgee E le c tr ic Membership Corpor ation fo r approval of Notes of $326,000 to be executed in favor of the United States of America, acting through the Rural E le c tr ific a tio n A dm inistration and of $140,000 to be executed in favor of the N ational Rural U t i l i t i e s Cooperative Finance Corporation w ith a separate Note o f each of said lenders to be secured by a common mortgage.
A pplication of Jackson E le c tric Membership Corp. fo r approval of Notes of $1,300,000 to be executed in favor of the United States of America, acting through the Rural E le c tr ific a tio n A dm inistration, and of $557,000 to be executed in favor of the National Rural U t i l i t i e s Cooperative Finance Corporation with a separate Note of each of said lenders to be secured by a common mortgage.
A pplication of Coweta-Fayette E le c tr ic Membership Corp. fo r approval of the Notes of $1,266,000 to be executed in favor of the United States of America acting through the Rural E le c tr ific a tio n Adm inistration oand of $542,000 to be executed in favor of the National Rural U t i l i t i e s Cooperative Finance Corporation w ith a separate Note of each of said lenders to be secured by a common mortgage.
A pplication of the L i t t l e Ocmulgee E le c tr ic Membership Corpor atio n fo r approval of Notes of $326,000 to be executed in favor of the United States of America, acting through the Rural E le c tr ific a tio n Adm inistration and of $140,000 to be executed in favor of the N ational Rural U t i l i t i e s Cooperative Finance Corporation w ith a separate Note o f each of said lenders to be secured by a common mortgage.

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Docket No. 2578-U July 18, 1974 Supplemental Order
Docket No. 2628-U August 6 , 1974
Non-Docket August 28, 1974
Non-Docket August 28, 1974
Non-Docket August 28, 1974
Non-Docket October 15, 1974
Non-Docket October 15, 1974

A pplication of Georgia Power Company to issue and s e ll $410,000,000 p rin c ip a l amount of F ir s t Mortgage Bonds and $600,000 shares of Preferred Stock and to issue $13,475,000 p rin c ip a l amount of F ir s t Mortgage Bonds fQj sinking fund purposes.
A pplication of Georgia Power Company fo r a u th o rity to issue and d e liv e r up to $124,000,000 p rin c ip a l amount of F ir s t Mortgage Bonds to secure Revenue Bonds of the Development A u th o rities of Bartow, Bibb, Cobb, Coweta and Dougherty Counties, Georgia, to be issued in order to finance a ir and water p o llu tio n c o n tro ll f a c i l i t i e s .
A pplication of Cobb County Rural E le c tr ic Membership Corp. fo r approval of Notes of $3,660,000 to be executed in favor of the United States of America, acting through the Rural E le c tr ific a tio n Adm inistration and o f $1,569,000 to be executed in favor of the N ational Rural U t i l i t i e s Coopera tiv e Finance Corp. w ith a separate Note to each of said lenders to be secured by a common mortgage.
A pplication of Oconee E le c tric Membership Corporation fo r approval of Notes of $370,000 to be executed in favor of the United States of America, acting through the Rural E le c tr ific a tio n Adm inistration and of $159,000 to be executed in favor of the N ational Rural U t i l i t i e s Coopera tiv e Finance Corporation w ith a separate Note to each of said lenders to be secured by a common mortgage.
A pplication of Jefferson E le c tr ic Membership Corp. fo r approval of Notes of $1,108,000 to be executed in favor of the United States of America, acting through the Rural E le c tr ific a tio n A dm inistration and of $475,000 to be exe cuted in favor of the N ational Rural U t i l i t i e s Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common mortgage *
A pplication of F lin t E le c tric Membership Corporation fo r approval of Notes of $658,000 to be executed in favor of the United States of America, acting through the Rural E le c tr ific a tio n A dm inistration, and of $282,000 to be executed in favor of the N ational Rural U t i l i t i e s Coopera tiv e Finance Corporation w ith a separate Note to each of said lenders to be secured by a common mortgage.
A pplication of Rayle E le c tric Membership Corporation fo r approval of Notes of $398,000 to be executed in favor of the United States of America, acting through the Rural E le c tr ific a tio n A dm inistration, and o f $171,000 to be executed in favor of the N ational Rural U t i l i t i e s Cooperative Finance Corporation w ith a separate Note to each of said lenders to be secured by a common mortgage.

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Non-Docket October 15, 1974
Non-Docket October 29, 1974
Non-Docke t October 29, 1974
Docket No. 2628-U October 29, 1974 F ir s t Amendatory
Order
Non-Docket November 19, 1974
Non-Docket November 19, 1974

A pplication of Haywood E le c tric Membership Corp. fo r approval of Notes of $338,000 to be executed in favor of the United States of America, acting through the Rural E le c tr ific a tio n Adm inistration and of $85,000 to be executed in favor o f the N ational Rural U t i l itie s Cooperative Finance Corporation w ith a separate Note to each of said lenders to be secured by a common mortgage.
Applications of Coastal E le c tr ic Membership C orp., fo r approval of Notes of $318,000 to be executed in favor of the United States of America, acting through the Rural E le c tr ific a tio n A dm inistration and of $79,000 to be executed in favor of N ational Rural U t i l i t i e s Cooperative Finance Corporation w ith a separate Note to each of said lenders to be secured by a common mortgage.
A pplication of Canoochee E le c tr ic Membership Corp. fo r approval of Notes of $378,000 to be executed in favor of the United States of America, acting through the Rural E le c tr ific a tio n A dm inistration, and of $162,000 to be executed in favor of the N ational Rural U t i l itie s Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common mortgage.
A pplication of Georgia Power Company fo r a u th o rity to issue and d e liv e r up to $124,000,000 p rin c ip a l amount of F irs t Mortgage Bonds to secure Revenue Bonds of the Development A u th o ritie s of Bartow, Bibb, Cobb, Coweta and Dougherty Counties, Georgia, to be issued to finance a ir and water p o llu tio n control f a c i l i t i e s .
A pplication of E xcelsior E le c tric Membership Corporation fo r approval of Notes of $348,000 to be executed in favor of the United States of America, acting through the Rural E le c tr ific a tio n A dm inistration , and of $149,000 to be executed in favor of the N ational Rural U t i l i t i e s Cooperative Finance Corporation w ith a separate Note to each of said lenders to be secured by a common mortgage.
A pplication of S a t illa Rural E le c tr ic Membership Corp. fo r approval of Notes of $1,234,000 to be executed in favor of the United States of America acting through the Rural E le c tr ific a tio n A dm inistration and of $529,000 to be executed in favor of the N ational Rural U t i l i t i e s Cooperative Finance Corp. w ith a separate Note to each of said lenders to be secured by a common mortgage.

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Docket No, 2651-U November 19, 1974

Application of Savannah Electric and Power Company for authority to issue $10,000,000 principal amount of First Mortgage Bonds.

Docket No, 2598-U April 2, 1974

Application of Plant Telephone & Power Company, Inc for authority to borrow an additional $2,194,500 from the Rural Telephone Bank, bearing interest at the rate of 7% per annum for a period not to exceed 35 years.

Docket No. 2613-U June 4, 1974

Application of Commerce Telephone Company to borrow $2,230,200 from the Rural Telephone Bank at the rate of 7% for a period of 35 years.

Docket No, 2626-U August 6, 1974

Application of General Communications Service, Inc in which authority is requested to establish a line of credit not to exceed $1,000,000 with its parent, Com munication Industries, Inc.

Docket No. 2626-U August 28, 1974 First Amendatory Order

Application of General Communications Service, Inc in which authority is requested to establish a line of credit not to exceed $1,000,000 with its parent, Com munications Industries, Inc.

Docket No. 2594-U March 5, 1974

Application of Communications Electronics Center, Inc for authority to borrow $40,000 from Citizens Bank of Colquitt, Georgia.

Docket No. 2627-U August 28, 1974

Application of Atlanta Gas Light Company for authority to issue and sell at negotiated public sale not more than $40,000,000 aggregate principal amount of First Mortgage Bonds, % Series due ___and 75,000 shares of $100 par value per share Cumulative Preferred Stock.

Docket No. 2627-U November 13, 1974 First Amendatory Order

Application of Atlanta Gas Light Company for authority to issue and sell at negotiated public sale not more than $40,000,000 aggregate principal amount of First Mortgage Bonds, ___%, Series due___ and 75,000 shares of $100 par value per share Cumulative Preferred Stock.

RATE ADJUSTMENT PROCEEDINGS

Docket No. 2519-U February 19, 1974 First Supplemental Order

Application of Planters Rural Telephone Coop., Inc for authority to adjust the exchange telephone rates and service connection charges of that Cooperative.

Docket No. 2603-U June 18, 1974

Application of Pineland Telephone Coop., Inc. for au- thority to adjust local service rates and service con nection charges in the Metter and Midville Exchanges.

Docket No. 2623-U July 23, 1974

A pplication o f N elson-B all Ground Telephone Company, Nelson, Georgia fo r a u th o rity to make t a r i f f revisions to estab lish new lo c a l exchange ra te s fo r the Big Canoe Exchange.

Docket No. 2610-U August 28, 1974

Application of Statesboro Telephone Company for au thority to make certain tariff revisions.

-29-

Docket No. 2619-U October 29, 1974

A pplication of Plant Telephone and Power Company, Inc. fo r a u th o rity to increase the exchange telephone rates of that Company as set fo rth in the a p p lic a tio n .

Docket No. 2621-U November 19, 1974

A pplication of Public Service Telephone Company, Reynolds, Georgia, fo r a u th o rity to increase rates charges fo r exchange telephone service fo r a l l the exchanges of the Company.

Docket No. 2635-U December 9, 1974

A pplication of Walker County Telephone Company, In c ., fo r a u th o rity to adjust lo c a l exchange rates fo r a l l exchanges of the Company.

Docket No. 2656-U December 17, 1974

A pplication of Progressive Rural Telephone Cooperative, In c ., fo r a u th o rity to adjust the lo c a l service rates and service connection charges.

Docket No. 2633-U December 9, 1974

A pplication of Bryon Telephone Co., Inc. fo r a u th o rity to adjust it s rates fo r lo c a l exchange telephone service and service connection charges.

Docket No. 2645-U December 17, 1975

A pplication of Darien Telephone Company, In c ., fo r autho rity to adjust lo c a l exchange rates fo r a l l exchanges of the Company.

Docket No. 2632-U December 9, 1974

A pplication fo r an adjustment in the schedules of rates and charges fo r in tra s ta te service furnished by Southern B e ll Telephone and Telegraph Company in Georgia

Docket No.,2454-U July 9, 1974 Phase I I

A pplication of Savannah E le c tr ic & Power Company fo r a u th o rity to increase rates fo r e le c t r ic service as remanded from the Fulton County Superior Court and special motion of Savannah E le c tr ic and Power Company for additional rate r e lie f.

Docket No. 2629-U October 15, 1974

A pplication of Gas Light Company of Columbus fo r autho rity to increase it s rates fo r gas service Approximately $2,007,000.

APPLICATIONS FOR AUTHORITY TO PURCHASE AND TRANSFER UTILITY PROPERTIES

Docket No. 2545-U January 15, 1974

A pplication of Georgia State Telephone Company and Westco Telephone Company fo r a u th o rity fo r Georgia State Telephone Company to acquire the assets and assume the l i a b i l i t i e s of the Clayton and Mountain C ity -D illa r d Exchanges of Westco Telephone Company.

Docket No. 2567-U May 7, 1974

A pplication of Mid-Continent Telephone Corporation of Hudson, Ohio, fo r a u th o rity to acquire a l l o f the outstanding C ap ital Stock, consisting of 500 shares of Common Stock of Empire Telephone Company, whose p r in c i pal o ffic e as located in Comer, Georgia, in exchange fo r 82,500 shares of voting Common Stock of Mid-Contin ent Telephone Corporation.

-30-

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Docket No. 2637-U October 15, 1974

A pplication of Georgia State Telephone Company fo r a u th o rity fo r Georgia State Telephone Company to merge w ith Alabama Telephone Company and F lo rid a State Telephone Company and to e ffe c t a r e c a p ita liz a tio n in connection w ith such merger.

Docket No. 2587-U January 29, 1974

A pplication o f Thomas W. M ille r fo r a u th o rity to acquire a l l the issued and outstanding C ap ita l Stock of Answering Network of Georgia, In c ., dba Georgia Paging Company, and fo r a u th o rity to do a l l things required to e ffe c tu a te ownership, co n tro l and manage ment of that company as set fo rth in the a p p lic a tio n .

Docket No. 2599-U May 7, 1974

A pplication o f Kenneth Cox fo r a u th o rity to acquire c o n tro llin g stock of Autofone, In c. and fo r a u th o rity to do a l l things required to e ffe c tu a te ownership, control and management of th at Company.

Docket No. 2595-U March 5, 1974

A pplication of Radio Telephone Service, In c ., fo r auth o rity to acquire the C ap ita l Stock o f Savannah Mobile-Telephone, In c ., and fo r a u th o rity to do a l l things required to e ffe c tu a te ownership, co n tro l and management of th at Company as set fo rth in the application.

APPLICATIONS FOR AMENDMENTS OF CERTIFICATES

Docket No. 2573-U January 15, 1974 C e r tific a te No. 622 Amendment No. 4 T o ll Lines

A pplication of Standard Telephone Company fo r an Amendment to it s C e r tific a te of Public Convenience and Necessity No. 622, T o ll Lines.

Docket No. 2593-U March 5, 1974 C e r tific a te No. 698 T o ll Lines

A pplication of Thomaston Telephone Company fo r an Amendment to it s C e r tific a te o f Public Convenience and Necessity No. 698, T o ll Lines.

Docket No. 2565-U A p r il 16, 1974 C e r tific a te No. 14 T o ll Lines

A pplication of Statesboro Telephone Company fo r authority to construct t o l l f a c ili t i e s in Bulloch County, Georgia.

Docket No. 2585-U January 29, 1974 C e r tific a te No. 11 Amendment No. 3 Gas D is trib u tio n

A pplication of A tlan ta Gas Light Company fo r Amendment No. 3 to E xistin g D is trib u tio n System C e r tific a te of Public Convenience and Necessity No. 11 to authorize Gas D is trib u tio n service to a d d itio n a l area in Bartow County, Georgia.

Docket No. 2614-U July 23, 1974 C e r tific a te No. 6 Amendment No. 1

A pplication o f Baxley Radio Telephone, In c ., fo r Amendment of it s Radio U t i l i t y C e r tific a te o f Public Convenience and Necessity No. 6 to modify it s service area around Baxley, Georgia Area.

-31-

Docket No. 2586-U January 29, 1974 C e r tific a te No. 20 Amendment No. 1

Application of M ille d g e v ille Mobilefone, Inc. fo r Amendment of it s Radio U t i l i t y C e r tific a te o f Public Convenience and Necessity so as to provide extended radio u t i l i t y system service in and around the
M ille d g e v ille , Georgia area.

Docket No. 2596-U March 19, 1974 C e r tific a te No. 23 Amendment No. 1

A pplication o f Phenix Communications Company of Georgia, In c ., fo r Amendment o f it s Radio U t i l i t y C e r tific a te of Public Convenience and Necessity No. 23, to provide extended radio u t i l i t y service in and
around Columbus, Georgia area.

Docket No. 2605-U July 23, 1974 C e r tific a te No. 27 Amendment No. 1

A pplication of A irs ig n a l In te rn a tio n a l, Inc. fo r an amendment o f it s Radio U t i l i t y C e rtific a te s o f Public Convenience and Necessity so as to provide extended radio u t i l i t y service in the A tla n ta , Georgia area.

Docke t No. 2617-U July 23, 1974 C e r tific a te No. 37 Amendment No. 1

A pplication o f South Georgia Communications, In c ., fo r Amendment o f it s Radio U t i l i t y C e r tific a te of Public Convenience and Necessity to modify it s service area
around Brunswick, Georgia.

Docket No. 2S18-U July 23, 1974 C e r tific a te No. 38 Amendment No. 1

A pplication of South Georgia Communications, In c ., fo r Amendment o f it s Radio U t i l i t y C e r tific a te o f Public Convenience and Necessity to modify it s service area around Jesup, Georgia.

Docket No. 2613-U October V, 1974 C e r tific a te No. 21 Amendment No. 1
Docket No. 2S15-U October 1, 1974 C e r tific a te No. 28 Amendment No. 1

A pplication of Commercial Radio, Inc. fo r Amendment of Radio U t i l i t y C e r tific a te o f Public Convenience and Necessity No. 21.
A pplication o f E. F. M itc h e ll, J r . , dba Douglas Radio fo r Amendment o f Radio U t i l i t y C e r tific a te of Public Convenience and Necessity No. 28.

Docket No. 260l-U (b) October l , 1974 C e r tific a te No. 12 Amendment No. 1

A pplication o f Radiofone of Georgia, In c ., fo r Amend ment o f it s C e r tific a te o f Public Convenience and Necessity.

Docket No. 2601 (a) October l , 1974 C e r tific a te No. 29 Amendment No. 1

A pplication o f Radiofone of Georgia, In c ., fo r Amend ment of it s C e r tific a te of Public Convenience and Necessity.

Docket No. 2600-U October 1, 1974 C e r tific a te No. 17 Amendment No. 1

A pplication o f Communications E lectronics Center, Inc. fo r Amendment of it s C e r tific a te o f Public Convenience and Necessity.

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Docket No. 2541-U A p r il 18, 1974
Docket No. 2636-U December 9, 1974 Non-Docket A p r il 2, 1974

SHOW CAUSE PROCEEDINGS
Complaints of c e rta in subscribers protesting a recent t a r i f f increase fo r rotary service by the In te rs ta te Telephone Company of West P o in t, Georgia; also showing a public need and desire fo r the services and b enefits of D irect Distance D ialin g (DDD); and a lle g a tio n s and complaints of other general lo c a l and t o l l poor quality of service
GENERAL ORDERS
A pplication o f Walker County Telephone Company, Inc. fo r a u th o rity to make c e rta in General Exchange T a r if f Revisions.
Georgia Public Service Commission vs. Robert E. Minton and Valley Paging (Cease and Desist O rd e r).

-33-

LICENSES ISSUED FOR SERVICE OBSERVING EQUIPMENT

COMPANY

LICENSE NO.

Trend M i l l s D i v . , Champion I n t ' l Corp

140

F i r s t N a t 11 Bank o f Newton C ounty

141

A. M artha D avis Telephone Answering S e rv.

142

S ta te F id e lit y Fin an ce, Inc

143

Manpower, In c . o f A tla n ta

144

Blue Cross & Blue S h ie ld o f G a /A tla n ta

145

The L e d g e r -E n q u ir e r Company

146

E v e r-L ite o f F lo r id a , Inc

147

T r u s t Company o f G e o rg ia

148

C ra w fo rd W. Long M e m o ria l H o s p it a l

149

Cole T ra in in g Systems, In c .

150

D eering M illik e n , In c .

151

Kern M a n u fa c tu r in g C o r p o r a tio n

152

M a ritz M arket Research S e rv ic e s , In c dba

Q u a lity C o n tro lle d S ervices

153

DATE ISSUED
1 -3 0 -7 4 1 - 30-74 2 - 5-74 3 - 5-74 3-19-74 6 -4 -7 4 6 -4 -7 4 6 -4 -7 4 6 -4 -7 4 9 -1 6 -7 4 9 - 16-74 1 0 - 1-74 1 0 -1 5 -7 4
1 0 -2 9 -7 4

-34-
L



GEORGIA SOUTHERN BELL TELEPHONE AND TELEGRAPH COMPANY
ACHIEVEMENTS AND 1974 ACCOMPLISHMENTS
S ta tio n A c tiv ity -G e n e ra l
T o ta l te le p h o n e s in s e rv ic e fo r S o u th ern B e ll in G e o rg ia a t th e end o f 1974 were ; 2 ,7 5'6,5 1 4 . T h is r e p r e s e n ts an in c r e a s e f o r th e y e a r o f 1 3 5 ,9 9 4 . The in w a rd te le p h o n e movement was 9 1 6 ,2 3 6 - down 9 ,1 0 9 from th e p r e v io u s y e a r - and o u tw a rd te le p h o n e movement was 7 7 9 ,7 9 5 up 6 1 ,8 2 7 from th e p re v io u s y e a r .
The upgrades in s e rv ic e to B e ll custom ers c o n tin u e s , and as o f th e end o f th e y e a r 92.7% o f r e s i d e n t ia l custom ers had in d iv id u a l l i n e s e rv ic e .
Of those G eorgia fa m ilie s liv in g in the areas served by Southern B e l l , th e p e rc e n t w ith te le p h o n e s e rv ic e has in c re a s e d to about 93%. Second li n e s in re s id e n c e s a re down to a b o u t 2.2% o f r e s id e n c e s w ith te le p h o n e s e r v i c e . New s e r v ic e s and e q u ip m e n t a r e b e in g d e v e lo p e d on a c o n tin u in g b a s is in o rd e r to keep a b re a s t o f c u s to m e r's needs f o r new and expanded s e r v ic e .
D ire c t D istance D ia lin g
Of th e t o t a l number o f m ain s e rv ic e s in S o u th ern B e ll in G e o rg ia , 100 p e r c e n t now have acce s s to th e D i r e c t D is t a n c e D i a l i n g n e tw o rk . The p e r c e n t c u s to m e r-d ia le d lo n g d is ta n c e messages in 1974 was 7 6 .6 . The p e r c e n t WATS c u s t o m e r - d ia le d m essages was 9 8 . 1 .
C onstruction
D uring the year 1974, Southern B e ll spent a p p ro x im a te ly $ 3 1 4 ,3 0 7 ,0 0 0 in G e o rg ia f o r new c o n s t r u c t io n to p r o v id e f a c i l i t i e s needed to serve th e ir custom ers.
R u ra l S e rv ic e Improvement Program
D uring the year 1974, the rem aining fo r e ig h t-p a r ty custom ers were regraded to h ig h e r classes o f s e rv ic e , and e ig h t-p a r ty s e rv ic e o f fe rin g s were e lim in a te d from the G eneral S u b sc rib er S e rv ic e s T a r i f f .
Extended Area S e rvic e
D u rin g th e y e a r 1 9 7 4 , Extended Community C a llin g s e rv ic e s were i n i t i a t e d in th e C o v in g to n , G r i f f i n , and Cumming e x c h a n g e s . T h e re w ere no m a jo r changes in S o u th e rn B e l l exchange c a l l i n g a r e a s u n d e r th e n o n -o p tio n al p lan .
35-

R ate and Revenue A c t i v i t i e s D u rin g 1974 we made 461 t a r i f f f i l i n g s i n v o lv in g new o r changed service o ffe rin g s . On December 1 5 , 1974 a r a t e c a se was a p p ro v e d i n th e amount o f $ 5 5 ,3 0 0 ,0 0 0 a n n u a lly p lu s d ir e c to r y a s s is ta n c e charges which con s is te d o f $ 8 ,7 0 0 ,0 0 0 in combined an n u al reven u e and c o s t s a v in g s . Em ployees and Wages S o u th ern B e ll employed 1 9 ,4 2 3 p e o p le in G e o rg ia a t th e end o f 1 9 7 4 . The d e crease o f 905 r e s u lte d from th e d e p re s s in g e f f e c t , on i t s business o f the d e c lin in g economy. D uring 1974, Southern B e ll p a id i t s em ployees in G eorgia an amount in excess o f $ 2 1 3 ,9 1 3 ,0 0 0 in wages and s a la r ie s . Taxes D u rin g th e p a s t y e a r , S ou thern B e ll in G e o rg ia p a id in lo c a l and s ta te ta x es an amount in excess o f $ 3 0 ,2 4 4 ,0 0 0 . In a d d itio n , G e o rg ia te le p h o n e custom ers p a id , on t h e i r te le p h o n e s e r v ic e , o ver $ 6 ,9 0 8 ,0 0 0 in s ta te s a le s ta x e s and o v e r $ 1 ,0 1 5 ,0 0 0 in s a le s ta x es f o r MARTA.
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GEORGIA POWER COMPANY
G e o rg ia Power Company s e rv e s a 5 7 ,0 0 0 s q u a r e - m ile a r e a f th e s t a t e t h a t encompasses 153 o f th e s t a t e 's 159 c o u n tie s . A t th e end o f 1 9 7 4 , th e Company's custom ers t o t a le d 1 ,0 7 8 ,2 2 3 , an in c re a s e o f 2 .5 1 p e rc e n t over the previo u s y e a r. It s r e s id e n t ia l custom ers averaged u sin g 9 ,6 7 7 k ilo w a tt-h o u rs o f e l e c t r i c i t y and averaged p ayin g 2 .4 8 cents fo r each k ilo w a tt-h o u r o f e le c t r i c it y used. In 1973, re s id e n
t i a l custom ers used an a verag e o f 1 0 ,1 4 2 k ilo w a t t - h o u r s and p a id an average o f 2.02 cents fo r each k ilo w a tt-h o u r.
The maximum system demand f o r e l e c t r i c i t y o c c u r r e d i n 1974 on A ug. 28 a t 5 p .m . when a peak hour demand o f 8 ,4 7 3 ,3 0 0 k i l o w a t t s , up 6 .7 p e r c e n t o v e r th e p re v io u s y e a r , was r e c o rd e d . A t th e tim e o f th e demand, th e Company was g e n e r a t in g 7 ,1 0 3 ,5 0 0 k ilo w a t t s ^ - and r e c e iv e d 6 1 3 ,0 0 0 k ilo w a tts from a s s o c ia te d companies and 7 5 6 ,8 0 0 k ilo w a tts from n o n -a ss o c iate d com panies. The ra te d c a p a b ilit y o f G eorgia P o w e r's g e n e r a t in g p l a n t s was 9 ,4 3 1 ,4 5 0 k ilo w a t t s .- * - P r o je c t e d r e s e rv e s f o r th e summer o f 1975 f o r G e o rg ia Power a r e a d e q u a te , s ta n d in g a t a p p r o x im a te ly 21 p e r c e n t .
G e o rg ia P o w e r's in v e s tm e n t f o r 1974 in c o n s t r u c t io n o f new f a c i l i t ie s to ta le d $663 m illio n but is e s tim ate d to drop to $474 m illio n in 1975, as a r e s u lt o f cutbacks in c o n s tru c tio n announced in Sept 1974. and January 19 75 . The Company's t o t a l re q u ire m e n t fo r fu n d in g new c o n s t r u c t io n s c h e d u le d f o r 1 9 7 5 -1 9 7 7 w i l l be a p p r o x im a t e ly $ 1 .6 b i l l i o n , reduced from a p lan n e d $3 b i l l i o n due to poor e a rn in g s in th e l a t t e r p a r t o f 1 9 7 4 . D u rin g t h i s same p e r i o d , th e Com pany's t o t a l expenditu res fo r environm ental purposes is expected to t o t a l $231 m illio n .
New f a c i l i t i e s added d u r in g 1974 in c lu d e d one n u c le a r -p o w e r e d g e n e r a t in g u n it and th r e e c o a l - f i r e d u n i t s , w h ich added a combined c a p a c ity o f 2 .4 m illio n k ilo w a t t s to th e system . The Company's f i r s t n u c le a r i n s t a l l a t i o n , r e p r e s e n tin g more th a n 10 y e a r s 5 e f f o r t and $400 m illio n in c a p ita l investm ent (in c lu d in g fu e l) , began p r e lim i nary o p e ra tio n in August 1974. Rated a t 8 1 0 ,0 0 0 k ilo w a tts o f capa c i t y , th e u n i t was lic e n s e d to go to f u l l power o p e r a t io n on O ct 1 2 , 1974. F u rth e r te s tin g and ch e c k-o u ts c o n tin u e d thro u g h y e a r-e n d . A t P la n t Y a te s , betw een Newnan and C a r t e r s v i l l e , two 3 5 0 ,0 0 0 k i l o w a tt g e n e ra tin g u n its were com pleted. The u n its s ta rte d i n i t i a l o p e r a t io n J a n u a ry 12 and June 17. and c o s t a p p r o x im a t e ly $175 m i l l i o n . The t h i r d u n i t a t P la n t Bowen n e a r > C a r t e r s v i l l e began i n i t i a l o p e r a tio n June 20. At 880,000 k ilo w a tts , i t is th e system 's la r g e s t g e n e r a t in g u n i t . C o n s t r u c t io n w ork a ls o c o n tin u e d o.n th e Com pany's second n u c le a r u n i t a t P la n t H a tc h , s c h e d u le d to come on l i n e in 1 9 7 8 , and a ls o on th e f o u r t h u n i t a t P la n t Bowen and th e f i r s t o f two c o a l - f i r e d u n its a t P la n t W ansley in Heard C o u n ty .
D uring the year s e v e ra l p ro je c ts were suspended o r c a n c e lle d due to th e Com pany's i n a b i l i t y to r a i s e s u f f i c i e n t c a p i t a l fu n d s . Among th e p r o j e c t s d e f e r r e d w ere th e t h r e e - u n i t Rocky M o u n ta in pumped s to r a g e f a c i l i t y n e a r Rome; th e s i x - u n i t W a lla c e Dam h y d ro p l a n t n near E ato n to n , the fo u r -u n it c o a l-fir e d C e n tra l G eorgia f a c i l i t y n ear F o rs y th ; th e second u n it o f P la n t W ansley; and two u n its o f th e
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Com pany's second n u c le a r p l a n t n e a r W aynesboro. Two o t h e r n u c le a r u n its o r ig in a lly scheduled fo r the Waynesboro lo c a tio n were c a n c e l le d .
A lth o u g h work was slow ed i n a l l a r e a s o f c o n s t r u c t io n o f new f a c i l i t i e s , th e Company i n s t a l l e d some 302 m ile s o f tr a n s m is s io n l i n e s , 1 ,0 8 4 m ile s o f d i s t r i b u t i o n lin e s and 74 a d d it io n a l s u b s ta tio n s .
G e o rg ia Power 1974 n e t income s lip p e d a lm o s t 2 .5 p e rc e n t below n e t income f o r 1 9 73 . The 3 0 .6 4 p e rc e n t in c re a s e in o p e r a tin g revenu es was o f f s e t by a 3 5 .9 6 p e r c e n t r i s e in o p e r a t in g expenses and 3 8 .3 9 percent higher in te re s t charges. Fuel costs increased a record 8 5 .2 3 p e r c e n t to t o t a l $ 2 9 2 ,2 3 8 ,0 0 0 . The Company p a id $ 3 7 ,2 0 3 ,0 0 0 in c i t y , c o u n ty , s t a t e and f e d e r a l ta x e s o th e r th a n income ta x e s d u r in g 1 9 7 4 , some $ 6 ,3 9 7 ,0 0 0 more th a n i t d id i n 1 9 7 3 .
In 1974 th e Company r e c e iv e d $400 m i l l i o n o f c a p i t a l from e x t e r n a l sources com prised o f $120 m illio n in a d d itio n a l p a id -in c a p ita l from The S o u th e rn Company and $280 m i l l i o n from t h e s a le o f f i r s t m ortg ag e bonds. The Company f a i l e d to a t t r a c t any c o m p e titiv e b id s on an o f f e r in g o f $60 m i l l i o n in p r e f e r r e d s to c k . P roceeds from the s ale o f a l l s e c u r itie s , to g e th e r w ith funds generated in t e r n a l l y , w ere i n s u f f i c i e n t to fin a n c e th e Company's 1974 c o n s tru c tio n , program and to repay a l l in te r im lo a n s . T h e r e fo r e , an in te r im lo a n b a la n c e in excess o f $268 m i l l i o n was o u ts t a n d in g a t y e a r - e n d .
In O c to b e r, th e Company f i l e d w ith th e F e d e r a l Power Com m ission a re q u e s t fo r a $ 4 2 .9 m illio n annual r a te in c re a s e from w h o le s a le cus tom ers -- r u r a l e le c t r i c c o o p e ra tiv e s and m u n ic ip a l system s. The Company was to b e g in c o l l e c t i n g th e in c r e a s e A p r i l 1 , 1 9 7 5 , sub j e c t to r e fu n d . Two o t h e r r a t e in c r e a s e r e q u e s t s , f i l e d in 1970 and 1 9 73 , were b ein g c o lle c t e d , in p a r t , a n d -a re s u b je c t to re fu n d pending d e c is io n s from th e F e d e ra l Power Commission.2
The Company f i l e d w ith th e G e o rg ia P u b lic S e r v ic e Com mission on November 1 2 , 1974, fo r an in te r im r a te in c re a s e o f $ 8 5 .9 m i l l i o n . H e a rin g s on th e r e q u e s t began December 16 b u t w ere th e n p o stp o n e d u n t i l J a n u a ry 2 0 , 1 9 7 5 . On December 17 th e Company f i l e d a r e q u e s t fo r a $305 m illio n annual in c re a s e , which in c lu d e d th e $ 8 5 .9 m il l i o n , and re q u e s te d t h a t th e h e a r in g s on th e i n t e r i m in c r e a s e be reco n ven ed . The Commission d e n ied t h a t re q u e s t b u t agreed to h ear th e Company's a lt e r n a t e p ro p o s a l to c o ll e c t d u rin g th e f i r s t fo u f months o f 1975 u n re c o v e re d 1974 f u e l c o s ts o f $ 4 9 .9 m i l l i o n . On December 23, th e Commission approved a $35 m ill io n su rc h a rg e in lie u o f the $49.9 m illio n fo r unrecovered fu e l c o s ts .^
A t y e a r -e n d th e Company a g re e d to s e l l a 30 p e r c e n t i n t e r e s t in i t s P la n t Hatch n u clea r f a c i l i t y , p lu s 100 p e rc e n t o f f iv e tra n s m is s io n lin e s to th e O g leth o rp e E le c t r ic Membership C o rp o ra tio n , a group o f 39 c o o p e r a tiv e s . Under th e a g re e m e n t, G e o rg ia Power w i l l b u ild ,m a n
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age and o p e ra te the f a c i l i t i e s covered and he com pensated fo r th e s e s e rv ic e s , w h ile p a rtic ip a tin g co o p eratives w ill re c e iv e a p ro -ra ta share o f o u tp u t.
F o o tn o te s 1 . In c lu d in g 8 7 9 ,0 0 0 k ilo w a t t s from a u n it under c o n s tr u c tio n and
o p e r a tin g on a t r i a l and t e s t b a s is . 2 . On June 1 7 , 1 9 7 5 , th e F e d e r a l Power C om m ission ap p ro v e d a s e t t l e
ment a g reed upon e a r l i e r by th e Company and 88 o f i t s 89 w h o le s a le custom ers on th e 1970 and 1973 r a t e in c re a s e r e q u e s ts . Un d e r th e a g re e m e n t, th e Company r e t a in e d a p p r o x im a te ly 8 5 .8 p e r cent o f the increased revenues b ille d between January 1 ,1 9 7 1 , and December 1 9 7 3 , and a p p ro x im a te ly 4 5 .8 p e rc e n t o f th e reven u es i n i t i a l l y soug ht in th e second r a t e c a s e . On June 2 7 ,1 9 7 5 , th e Company re fu n d e d a p p r o x im a te ly $22 m i l l i o n to i t s w h o le s a le c u s tom ers . 3 . A f t e r th e h e a rin g s on th e in t e r im in c r e a s e w ere reco n ven ed in January 1975, th e Commission approved a $25 m illio n in te r im r a te in c re a s e on F e b ru a ry 6 . H e a rin g s on th e perm an en t re q u e s t began in F e b ru a ry and on A p r i l 24 th e Com m ission g r a n te d a p e rm an en t in c re a s e o f $116 m illio n a n n u a lly which superseded the surcharg e and in te r im in c r e a s e .
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SAVANNAH ELECTRIC AND POWER COMPANY
Savannah E le c tric and Power Company, lik e many u t i l i t i e s across the nation, found 1974 to be a d i f f i c u l t year. Although revenues increased sharply to a new record le v e l of $54.1 m illio n , operating costs also increased dramat ic a lly . An unprecedented ris e in fu e l costs combined w ith the e ffe c ts of double d ig it in fla tio n and ris in g in te re s t rates pushed expenses higher than ever and seriously depressed cash earnings.
Inadequate earnings required the company to in s titu te a major a u s te rity program in operations and in d e fin ite ly suspend construction o f the 175 megawatt generating plant in Effingham County.
Marketing e ffo r ts in 1974 were directed a t encouraging customers to use e le c tr ic energy w isely. One o f the goals is to develop a more e f f ic ie n t e le c tr ic system through s e le c tiv e s e llin g o f o ff-p e a k capacity.
Consistent growth in the community, including the re -a c tiv a tio n o f the Army' s Hunter F ie ld -F o rt Stewart m ilita r y complex, resulted in a gain of 1,891 customers during 1974. Construction valuatio n fo r the C ity of Savannah more than doubled the previous y e a r' s amount and to ta le d $25.2 m illio n . Customers' revenue in the Port o f Savannah climbed to $45.6 m illio n fo r an annual increase o f 32 percent.
Grumman-American A viation is moving it s corporate headquarters from Cleveland, Ohio, to it s Savannah f a c i l i t y and w i l l increase employment by 200 jobs. The $77 m illio n Southern Energy Company' s liq u if ie d natural gas conversion plan t on Elba Island in the Savannah harbor is nearing the operational stage, and Swann O il Company opened it s o i l barge and storage term inal in la te 1974.
S. S. Kresge broke ground in mid-1974 fo r a 400,000 square fo o t, $4.2 m illio n d is trib u tio n warehouse a t Georgia Ports A u th o rity 's Garden C ity Terminals. Savannah Foods and Industries began construction in May o f a $3.2 m illio n d is trib u tio n warehouse. Construction of Southern B e ll's $25 m illio n center fo r an e le c tro n ic switching system to handle long distance c a lls is on schedule.
Savannah's H is to ric River S treet area was a t the contract stage a t year end fo r a $6 m illio n improvement program. That p ro je c t is now underway. Further evidence of continuing growth was v is ib le in a v a rie ty o f other in d u s tria l and commercial ventures throughout the Savannah trading area.
The foregoing summary serves as ample evidence th a t the demand fo r e le c tr ic service is s t i l l in a strong growth trend w ith in the area served by Savannah E le c tric and Power Company.
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WESTERN UNION
Teletyp ew riter networks and mailgram business o f Western Union were the prime contributors to the continued growth in t o ta l revenues. This resulted p rim a rily from increases in the population o f access lin e s and ra te increases.
Telegram message and money order services have been declining s te a d ily since 1945. In 1971 th is trend was accelerated by the longest s trik e in the Telegraph Company's h is to ry , during much o f which acceptance o f telegrams and money orders from the public was suspended. Since 1971, th is decline has continued, although a t a slower ra te . The economic problems experienced throughout the country also had a s ig n ific a n t bearing over the o v e ra ll revenues during 1974.
The operating expense re a lize d a sharp upturn due to labor contract negotiations w ith the Labor Union in 1973. Under the terms o f the 1973 Contract Agreement, an increase o f 6.5% in wages and b enefits became e ffe c tiv e July 28, 1974, adding an a d d itio n a l $200,000.00 fo r the remaining five-month period in 1974.
In order to improve service, the Company in te n s ifie d it s moderization program a t a system cost of a b illio n d o lla rs . The labor intensive PMS Reperforator Switching was completely phased out in 1972 and replaced w ith a modernized Computer Complex which is mainly located in Middletown, V ir g in ia .
The transmission of a telegram, whether in te rs ta te or in tra s ta te , requires only a single switch which is e s s e n tia lly instaneous, as compared to an average switching time of about 30 minutes in the R eperforator System.
Further service improvements have been re a liz e d w ith the establishment o f the C entralized Telephone Answering f a c i l i t i e s . In the past, small groups of operators in numerous o ffic e s handled the telephone acceptance o f telegrams. Under th is system, r e la tiv e ly small surges of c a lls to any one o f these o ffic e s could severely tax it s a b il it y to answer the phone promptly. The c e n tra liz a tio n of the telephone answering has enabled the Company to over come these problems.
Perhaps the single most important development over the past two years occurred in 1974. On A p ril 13, the f i r s t domestic communication s a t e l lit e l i f t e d o ff at Kennedy Space Center. WESTAR I had been successfully launched in to space. In October, WESTAR I I was launched, and a th ird complete s a t e l lit e is cur re n tly being held in reserve as a spare. In a d d itio n , fiv e sending and receiving earth stations were placed in operation, one o f these locations being A tla n ta .
U tiliz a tio n of the WESTAR f a c i l i t i e s w i l l take three major forms: f i r s t , fo r the transmission o f the Company's established services; second, the sale o f wholesale or bulk service to other communication c a rrie rs ; and th ir d , the sale of r e t a i l services to government and commercial users. The n a tu ra l economic advantages inherent in s a t e l lit e transmission have made possible su b s ta n tia l reductions in rates fo r long distance, p riv a te lin e -ty p e circu its.
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