Report of the Georgia public service commission. One hundred and fifth report, 1977

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UNIVERSITY OF GEOROW U B R ^ E S

105th Report Of The
Georgia Public Service Commission

January 1, 1977

January 1, 1978

COM M IS S IO N C R S :
BEN T. WIGGINS, c h a ir m a n WILLIAM H. KIMBROUGH, v ic e c h a ir m a n Lac b a r b e r ROBERT C. (BOBBY) PAFTORD FORD B. SPINKS
d*ir0ia 'PttWic
ZAA W A SH IN G TO N S TR E E T , S .W .

HUGH S. JORDAN, 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 105th Annual Report of the regulatory activities of the Commission for the year ending December 31, 1977.
Respectfully submitted
Ben T. Wiggins, Chairman

S T A T E OF G E O R G I A GEORGE D. BUSBEE, GOVERNOR
105th Report of
GEORGIA PUBLIC SERVICE COMMISSION 244 Washington St., S.W. Atlanta, Georgia 30334
January 1, 1977 to January 1, 1978
Ben T. Wiggins, Chairman William H. Kimbrough, Vice Chairman Mac Barber, Commissioner Robert C. (Bobby) Pafford, Commissioner Ford B. Spinks., Commissioner Hugh S. Jordan, Executive Secretary
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105th ANNUAL REPORT Introduction
The Annual Report of the Georgia Public Service Commission covering the activities for the year ending December 31, 1977, is submitted herewi in compliance with the law.
The personnel of the Commission as of December 31, 1977, 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's professional staff personnel as of December 31, 1977, is as follows?
Administration
David 0, Benson, Executive Director Hugh S. Jordan, Executive Secretary C. Heath Armfield, Jr., Assistant to the Executive Director John R. Price, Hearing Reporter Bernard Cameron, Assistant Hearing Reporter W. James Yates, Assistant Hearing Reporter Ms. Jean B. Trisch, Accountant II Mrs. Jackie B. Thomas, Personnel Officer II
Utilities Engineering
James J. Crudup, Director., Utilities Engineering Billy G. Collier, Utilities Engineer III Robert C. Evans, Utilities Engineer III G. Thomas Fortner, Utilities Engineer III M. Glynn Blanton, Utilities Engineer III Truman E. Holland, Utilities Engineer II Cecil D. Bentley, Utilities Engineer III Jackson A. Dodd, Utilities Engineer II Benny H. Andrews, Utilities Engineer II Hugh W. Stanley, Utilities Engineer II I. Gilbert Bentley, Utilities Analyst II Mitchell Ingram, Gas Safety Inspector II Charles F. Spencer, Gas Safety Inspector II
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utilities Financial Analysis
Ralph S. McLemore, Jr., Director, Utilities Financial Analysis Beverly B. Knowles, Assistant Director, Utilities Financial Analysis Janes H . Cole, Utilities Analyst II Donald H. Craig, Utilities Analyst II Nolan E. Ragsdale, Utilities Analyst II Mrs. Linda Walsh, Utilities Analyst II S. D. Weaver, Utilities Analyst II Mrs. Caroline Williamson, Utilities Analyst II Ned Guillebeau, Utilities Engineer II J. Eugene Pope, Utilities Analyst I G. Richard Puckett, Utilities Analyst I Philip McMullan, Utilities Analyst Trainee Ms. Janet Miller, Utilities Analyst Trainee Ms. Glenda Maddox, Utilities Analyst Trainee Ms. Beverly Sellers, Utilities Analyst Trainee Robert J. Vaughan, Utilities Analyst Trainee Michael F. Roth, Utilities Analyst Trainee Timothy S. Hopkins, Utilities Analyst Trainee Bernard Goss, Economist
Transportation Rates and Services
Horace F. Hartley, Director, Transportation Rates and Services Gordon E. Ganka, Transportation Specialist III Robert R. Ginn, Transportation Specialist III Albert R. Bush, Transportation Specialist II J. Donald McGouirk, Transportation Specialist II. George E. Thurmond, Transportation Specialist II William G. Clay, Transportation Specialist II
Motor Carrier Certification and Enforcement
L. Thomas Doyal, Sr., Director, Motor Carrier Certification and Enforcement
Ms. Lucia Ramey, Transportation Specialist III David R. Meeks, Chief Transportation Supervisor Judson L. McGinnis, Division Transportation Supervisor Chester A. Whitley, Division Transportation Supervisor
M. C. Dalton, Jr., Transportation Specialist II
Mrs. Paula Davis, Transportation Specialist Trainee
During the year the Commission conducted 508 public hearings. Public hearings commence on the second and fourth Tuesdays of each month and continue on successive days thereafter until all current applications and petitions have been disposed of. All matters docketed for public hearing are heard by the entire Commission in open session, a majority -of the Commission constituting a quorum.
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TRANSPORTATION RATES & SERVICES DIVISION

COMMISSION ACTION
Railroads & Motor Carriers:
Docket Decisions ............13 Non-Docket Decisions......1,846
TOTAL

1859

During 1977 the Commission and its Transportation Rates & Services staff officially disposed of, in addition to the thirteen formal proceed ings listed below, transportation rates and services matters, a considerable number of which required lengthy studies and investigations in the field.

FORMAL CASES FOR YEAR 1977

DOCKET NO.___ DATE

SUBJECT

DISPOSITION

7536-M

2-1-77

Application of National Bus Traffic

APPROVED

Association, Inc., Agent for

Continental Atlantic Lines, Inc.,

Continental Tennessee Lines, Inc.,

Georgia-Florida Coaches, Inc.,

Greyhound Lines, Inc., Service

Coach Lines, Inc., Southeastern

Stages, Inc., Tamiami Trail Tours,

Inc., seeking authority to increase

by 10% their Georgia Intrastate,Local

and Interline, Intercity Passenger Fares.

772-R

2-9-77

Application of the Tennessee, Alabama and Georgia Railway Company seeking authority to discontinue its agency station at Menlo, Georgia and dis continue handling less than carload freight and dismantle station building.

APPROVED

773-R

4-14-77

Application of Southern Freight Tariff Bureau on behalf of participating carriers to increase rates and charges. (Ex Parte 336)

APPROVED

774-R

4- 1 4 -7 7

Application of Seaboard Coast Line Railroad Company seeking authority to include the agency station of Elberton, Georgia into the existing Mobile Agency at Athens, Georgia.

DENIED

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' 3 > 0 3 H |
h o t x od 3 a:

DOCKET NO. 7715-M
7873-M
7874-M 7875-M 7893-M 7894-M 7912-M 7913-M 776-R

DATE 4-28-77
9-29-77
9-29-77 9-29-77 10-13-77 10-13-77 11-10-77 11-10-77 11-18-77

SUBJECT

DISPOSITION

Application of Southern Motor Carriers Rate Conference on behalf of all Class "A" carriers for authority to increase rates & charges.
Application of National Bus Traffic Association, Agent for Continental Tennessee Lines, Inc., Greyhound Lines, Inc., Service Coach Lines, Inc., Tamiami Trail Tours, Inc., seeking authority to increase rates.

APPROVED IN
PART
APPROVED IN
PART

Application of Service Coach Lines, Inc. for authority to discontinue Run Nos. 3022 and 3023 operating between Brunswick and Waycross, Ga.
Application of Tamiami Trail Tours, Inc. seeking authority to amend Run 1703 operating between Atlanta, Ga. and Tallahassee, Florida.
Application of Georgia Movers Association to increase Household Goods rates.

DENIED APPROVED APPROVED

Application of National Trailer Convoy, Inc. to increase rates & charges on trailers and supporting equipment.

DENIED

Application of C & H Bus Lines, Inc. seeking authority to increase fares & charges.

APPROVED

Application of Continental Tennessee DENIED Lines, Inc. for authority to discontinue Run 9610 between Fayetteville & Atlanta.

Application of Southern Freight Tariff Bureau on behalf of parti cipating rail carriers to increase rates & charges. (Ex Parte 343)

PENDING

RAILROAD FREIGHT RATES & CHARGES
During the year 1977 there were two general intrastate revenue increase proceedings involving railroad freight rates authorized by the Interstate Commerce Commission on interstate traffic. The first increase, Ex Parte 336, proposed to increase freight rates and charges by four (4%), was filed with this Commission on March 7, 1977 and heard on April 14, 1977. Ten witnesses appeared in opposition to these increases. The Commission, after hearing and consideration of the application, granted the increase to the railroads that became effective on June 20, 1977.
Ex Parte 343 proposed to increase freight rates and charges by five (5%) percent was filed with this Commission on October 6, 1977 and sus pended for a period of five months due to the fact that this supplemental application proposed further increases on Georgia intrastate rail rates and charges. Ex Parte 343 is still pending awaiting the Commission's decision. Hearing held on December 15, 1977.
An application to amend the Demurrage Tariff No. 4-K, Rules and Regulations, was filed with this Commission on July 29 and amended on August 17, 1977, that if granted would reduce the free time to load freight cars from 48 hours to 24 hours. Due to numerous protests received, the Commission in Administrative Session on December 16, 1977 suspended and set this matter down for hearing to be held as soon as the Commission's calendar would permit. The matter is pending Commission decision.
APPLICATIONS AND SUPPLEMENTS FILED
The Commission received 169 applications for tariff changes for the year 1977 with 3086 supplements to be filed in the Commission's official tariff files.
RAILROAD ABANDONMENT PROCEEDINGS
1. ICC Docket AB-26 (Sub. No. 4) Southern Railway Abandonment of railroad track between Williamson and Roberta, Georgia. Hearing: January 16, 1976 ICC Initial Decision: Granting abandonment on May 5, 1976 Final Order granting abandonment issued and effective March 28, 1977.
2. ICC Docket AB-26 (Sub. No. 5) Georgia Northern Railway Abandonment of service over rail tracks between Albany and Cordele, Georgia. Hearing: April 1 and 2, 1976. ICC Initial Decision: August 6, 1976 granting carrier authority to abandon line. Exceptions: Filed August 26, 1976 by Crisp County Power Commission. Final Order granting abandonment issued and effective on July 13, 1977.

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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 involving points. During the year, additional operations were authorized on a permanent basis. As in all previously approved mobile agency operations, the Commission considered authorization to institute these agencies 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.
TRUCK RATES AND SERVICES
By application filed in June of 1976, various Class ,fC* carriers sought amendment of the Commissions General Motor Carrier Rule 89(a) to extend the maximum operating radius of Class "C" carriers serving munici palities where the combined population of the municipality or contiguous municipality or municipalities is 100,000 or more from five miles to fifteen miles (plus all of any other municipality, any part of which is within said fifteen miles). Public hearings on the matter were held on July 27, July 28 and October 6, 1976. Ten shipper witnesses appeared at the hearing and asserted a need for Class "C" carrier service in the proposed extended area. Seven Class ,fA,f carriers opposed the application on grounds that it would divert traffic they presently handle to the Class "C" carriers. However, some Class nAn carriers indicated a desire for their own pickup and delivery area to be extended to coincide with any Commission authority to expand the Class MC" area. Action by the Commission to extend the Class "A" zone would require amendment to Motor Carrier Rule 12. The Commission noted that companies using regulated transportation services are relocating from downtown to suburban areas and that evidence submitted by shippers stressed problems now encountered by the unavailability of dependable carrier service. The evidence was persuasive that a need existed for increasing the present Class t!A" and Class ''C" commercial zones. The Commission concluded that it would be inequitable to enlarge the Class "C" commercial zone and not at the same time consider enlargement of the corresponding Class "A" commercial zone. However, there was a serious question as to the need for expansion of an additional ten miles as sought. The Commission concluded that the best interest of the shipping public would be served by extension of both Class "A" and Class nCT' commercial zones, not only as they apply to Atlanta, but statewide. The Commission did not feel, however, that such shipping needs warranted at this time an extension from five to fifteen miles of the base munici pality or municipalities contiguous thereto as sought in the application, but that a more congruous operational atmosphere would exist between the
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carriers by creation of intrastate commercial zones to coincide with the corresponding interstate commercial zones which had recently been adjusted by the Interstate Commerce Commission. Insofar as Atlanta is affected^, the amendments approved by the Commission would result in the Class A and Class MCn carriers being allowed to expand their authorized areas of service to ten miles beyond the city limits of Atlanta. The amendments in General Motor Carrier Rules 12 and 89 were authorized by the Commission in Order dated January 4, 1977.
In February, the Class nA,! carriers of general commodities sought authority to increase their rates and charges on Georgia intrastate traffic by varying amounts depending on the size of the shipment but with an overall impact of 7.04%. Applicant carriers contended that increases which they have incurred in both labor and non-labor expenses necessitate the proposed higher rates. The Commission declined to authorize such increased rates and charges without justification at public hearing and suspended the increases for five months from the porposed effective date. Applicant carriers presented their evidence in support of the proposed increases at public hearing held on April 28, 1977. No protestants appeared at the hearing. By Order dated June 8, 1977, the Commission found that the full amount of the proposed increase was not shown to be justified but that increased operating costs of the carriers demonstrated a need for an increase of a lesser amount than proposed. In order to provide a reasonable amount of additional revenue to enable applicant carriers to give adequate motor carrier service to Georgia intrastate shippers,the Commission authorized Class "A15 motor carriers of property to increase less than truckload or any quantity rates by 7.5% on shipments weighing less than 500 pounds, 7.4% on shipments weighing 500 pounds or more but less than 1,000 pounds, 7.2% on shipments weighing 1.000 pounds or more but less than 2,000 pounds, 6.9% on shipments weighing 2.000 pounds or more but less than 5,000 pounds, 1.5% on shipments weighing 5.000 pounds or more but less than 10,000 pounds with no increase being authorized on shipments weighing 10,000 pounds or more. No increase was authorized on volume or truckload rates. 7.6% was authorized on accesso rial rates and charges, arbitraries and pickup or delivery charges and 7.6% in the minimum per shipment charge resulting in a flat charge of $9.18. The above increases resulted in an overall impact of 5.7%. The Commission provided that such increases should in no instance exceed corresponding rates applicable on interstate traffic.
By application filed in August, the Georgia Movers Association, Inc., proposed an increase of approximately 5% in intrastate household goods rates on weight and distance moves and hourly rated moves for the account of carriers parties to its Georgia Intrastate Tariff No. 8. Since no increases were proposed on charges for other related moving services, the total impact of the proposal would be slightly less than a 2% increase over present Georgia intrastate revenues for those carriers. The increases were suspended and public hearing was held on October 13, 1977 at which applicants presented evidence to support their request. No shipper of household goods appeared at the hearing in opposition to the proposal. By Order dated
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November 1, 1977, the Commission recognized that most of the applicant carriers were experiencing operating ratios in the high 90 s c indicated a need for revenue relief. The evidence was persuasive that the proposal x*as justified and it was approved by the Commission.
BUS FARES AND CHARGES
By the end of 1977, there were 51 certified carriers operating under the jurisdiction of the Commission providing passenger, package express and charter service between substantially all areas of the state, a decrease of two carriers from last year's total. The routes served remain sub stantially the same.
Durinp the year, seven carriers made twenty-five requests to adjust schedules throughout their system. Of the number filed, six were approve in part, some suspended; five were denied and the remaining requests were approved. Some of the applications for changes in scheduled authority together with charges in individual tariffs were handled by the Commission not requiring a formal hearing.
Requests for discontinuance of service were filed by a few of the carriers requiring a hearing before the Commission before determination could be reached. Following hearing on two requests, the Commission denied such discontinuance because it was felt that public conven ence would not be served by approval of such requests. Two applications were withdrawn prior to assignment for hearing and one was approve .
Hearings were held on request by National Bus Traffic Association for increase in Georgia Intrastate Local, Interline, Intercity Passenger Fares, Package Express and Charter rates during the year. Following the hearings on October 14, 1976, authority was granted on February 1, U / / to increase fares and charges. Additionally, following the hearing on ' September 29, 1977, various increases were granted on November 21, 19// tor Passenger Fares, Express and Charter rates and charges.
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TRANSPORTATION CERTIFICATION AND ENFORCEMENT DIVISION

During the year 1977, the Commission conducted four hundred and two public hearings involving the Transportation Certification and Enforcement Division. Public hearings commence on the second and fourth Tuesdays in each month and continue on successive days thereafter until all current applications an petitions have been disposed of. All matters docketed for public hearing are heard by the entire Commission in open session, a majority of the Commission constituting a quorum.
MOTOR CARRIER CERTIFICATE AND VEHICLE REGISTRATION
The Commission is charged with the responsibility of collecting and accounting for motor carrier certificate, permit and vehicle registration fees. e certificate, permit and vehicle registration fees collected and remitted to the Fiscal Division, Department of Administrative Services, during the year 1y// are as follows:
January 1, 1977 to January 1, 1978

Certificate fees at $35.00 each (138 -*$4,830) and certificate transfer fees at $7.50 each (71 - $532.50)

_

t-o

$

Registration Permit fees at $25.00 each (2691 -* $67,275) and amendment fees at $5.00 each (368 - $1840)

$ >

Regular License fees at $5.00 each (16834 - $84,170) Penalty License fees at $25.00 each (513 - $12,825)

$ 96,995.00

Regular Identification Stamp fees at $5.00 each (249,132 $1,245,660)

Regular Multiple Registration Stamp fees at $1.00 each (40,160 - $40,160.00) and Penalty Stamp fees at $25.00 each

$ 1.312.745.00

(1077 - $26,925.00)

$ 1,484,217.00

CERTIFICATION AND ENFORCEMENT
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 vehicle 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 1 4 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 fifteen Area Transportation Representatives.
All applications for Certificates are handled by the Certification Section of the Division whose responsibility it is to insure that applications are properly completed; that terminology contained therein coincides with authority applicant is seeking; that all vague and ambiguous terms are clarified or deleted, that applicant understands what responsibility he must assume in presenting his case before the Commission; and to assist the applicant wherever possible.
Members of the Staff attend all public hearings before the Commission involving motor carriers operating authority to lend technical assistance to the Commission when needed. Likewise, members of the Staff attend the Commission s administrative sessions to advise and assist the Commission in reaching its decisions in such cases.
Pursuant to the Commission's decisions in Certificate of Public Convenience and Necessity matters, the certification section notifies the applicant of the Commission's decision, and if favorable, the necessary criteria for becoming qualified for issuance of a Certificate. Once the carrier qualifies witn the Commission, the Certificate is issued, citing the authority granted which becomes the official Order of the Commission.
The Area Transportation Representatives are assigned specific territories in the state ranging from six 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; contacting shippers throughout the State to ascertain the level of their truck service and report to the Commission of any deficiencies and conducting periodic road checks. In addition, the Area Transportation Represen tatives perform other specifically designated assignments related to the functions of the Public Service Commission.
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During 1977, 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 lesse checks lasted from several hours to one or two days. All of the Area Transporta tion Representatives operate continuously in their assigned territor es an con tinue vigorously to ferret out and eliminate illegal transportation operations. The nature of the illegal operator precludes the establishment of permanent nspec on points since Georgia's maze of highways enables the illegal operator to easily c cumvent any permanently established check point. Our Area Transportt on 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 siphon off millions of dollars annually from legitimate motor carrier operations upon whom the publ g depends to ship or receive their wares. The Commission s Area Transportation Re presentatives are highly trained in detecting the illegal operator and filter ng through the quagmire of fictitious leases, freight bills, logs, etc. which usua y accompany such operations. During 1977, the Commission s enforcement sec responsible for 810 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 $165,470 being posted in the counties where arrests were made. In addition, 262 warnings were issued to carriers operating illegal y in Georgia.
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 t e jur s 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)). Georgia was one of the first states to adopt the standards and the Certification and Enforcement Division has actively engaged in assisting other states in effectuating these procedures.
The Certification and Enforcement Division continued to function under the cooperative agreement between the Commission and the Interstate Commerce Commission and conducted several joint investigations with personnel of that Commission for the purpose 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.
During 1977 our Area Transportation Representatives continued the Commission's program designed to assist in the protection of the public using the h g ways o Georgia and to apprise the carriers of the operating habits of their drivers. r 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 such necessary. Our Transportation Representatives also are charged with the responsi-
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bility of contacting shippers throughout the state to determine the M

of their

trucking service and to assist them wherever possible. Reports of unsatisfact y

service are made to the Certification Division where contacts with the carrier are

conducted toward remedying the shippers complaints.

The Certification and Enforcement Division, in addition to the responsibility of processing all motor carrier insurance filings (which numbers over 80,000 per year) as well as maintaining all motor carrier files (numbering in excess o 18,000), was responsible for processing 3,059 interstate registration of authority applications and amendments thereto and the issuance of all intrastate and interstate Georgia Public Service Commission Motor vehicle registrations wbicti resulted in the collection of fees summarized on page 1 0 of this report.

During 1977 the fifteen Area Transportation Representatives performed thou sands of vehicle inspections for operating authority and proper vehicle registra tion and identification, resulting in detection of 2,800 violations and collection of $39,185 in vehicle registration fees where vehicles had not been properly
registered with the Commission by the carriers. They also performed 1,134 rate
checks of intrastate Hfor hire" carriers to ensure that the certificated ca^ ier were adhering to the rates and charges published in their tariffs lawfully ^ file with the Commission and, in addition, performed 2,697 other miscellane u functions in the pursuit of the Commission's business, including personal contacts,
special investigations, vehicle observations reports, etcetera.

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COMMISSION ACTIONS

During the year 1977 the following Administrative Session decisions were made by the Commission:

Motor Carrier Certificate applications:

Approved . . . . ........ 120

Denied ....................................

11

Withdrawn ................................ 0

Dismissed . . . ............................ . 1

Total

132

Certificate transfer applications: Approved ...................... Withdrawn .................... D i s m i s s e d .......... .......... Denied ......................

44 0 0 1

Total

45

Certificate amendment applications: A p p r o v e d ...................................... W i t h d r a w n .......... ........................ D e n i e d ................ ................ .. D i s m i s s e d .................................... -- 2.

Total

91

Certificate control through transfer of capital s t o c k .......... ........................ -- z.

Total

4

Certificates cancelled ........................ 154

Certificates s u s p e n d e d .................... .. * 321

Certificates reinstated

246

Total

721

Motor Carrier Emergency Permits . ............... 19 Registration Permits Issued . ................ 4437 Registration Permits A m e n d e d ................ 543 Registration Permits Cancelled(Undertermined) ____
Total

4999

Rules Nisi issued (other than for insurance). . . 110 Rules Nisi dismissed (other than insurance). . . 70

Total

180

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UTILITIES ENGINEERING
^The Utilities Engineering Division of the Georgia Public Service Commission continued its activity in 1977 of the regulation of telephone, radio common carrier, natural gas, and electric utilities in Georgia, plus the gas safety practices of jurisdictional, natural gas utilities. These activities ?/ere associated with the highlights and trends listed herein.
m T U R A L GAS SAFETY
^Calendar year 1977 completed the ninth year of the grant-in-aid certification agreement, under the provisions of the Natural Gas Pipeline Safety Act of 196$, of the Commission's Gas Safety Office with the Office of Pipeline Safety Operations of the United States Department of Transporta tion. During the year the Commission continued to regulate the four privately-owned natural gas distribution companies operating in the State, as well as portions of the municipally-owned gas systems which have facilities outside the boundaries of the county or counties wherein the municipality is situated. This regulation consists of ascertaining the compliance of these gas systems to the provisions of Title 49, Code of Federal Regulations, Part 192, "Transportation of Natural and Other Gas by Pipeline; Minimum Federal Safety Standards." At year's end, under the fifty percent funding provision of the grant-in-aid agreement, the Commission was entitled to receive $64,871 in reimbursement from the Federal government.
At the beginning of 1977 the Gas Safety Office experienced the departure of one engineer to take a position with the Transportation Safety Institute of the Federal government. No additional personnel ?/ere hired during the year, but one engineer and an inspector were promoted to fill the respective positions. At year's end, a combined experience of more than fourteen man-years in natural gas safety regulation was observed.
Five natural gas explosions occurred during the year involving gas distribution facilities under Commission jurisdiction and were investigated by Commission personnel from the Gas Safety Office. Three of the five explosions were caused by gas accumulating from a broken service or main line and resulted in no fatalities, five injuries and extensive property damage. One incident of major consideration during 1977, the gas leak which forced thousands of workers to evacuate three downtown Atlanta office buildings, which occurred at Forsyth and Williams Streets, was caused by an outside force. Personnel from the Gas Safety Office assisted the National Transportation Safety Board in the investigation and determined that the Hyman Construction firm ruptured an underground gas line while pile-driving a steel beam into the ground.
On Sunday and Monday, November 6 and 7, 1977, a representative from this office was involved in providing assistance in preventing the potential dangers of natural gas and propane hazards surrounding the flood near Toccoa, Georgia. In this regard, he provided assistance to the Toccoa Utilities Department in
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securing natural gas lines which were ruptured and presenting an unsafe condition to the public.

During 1977 approximately 319 separate inspections were performed at

the cities and towns throughtout the State under the jurisdiction oft:his

Commission. Approximately 128 items of noncompliance were inspections, and 81 of these had been corrected by year s end. The majority

of the violations were in the process of being cleared as determined during

the latest inspection of the systems. Major items concerning the lanim _ Federal Safety Standards which were covered during these inspections incu the following: A written emergency plan; monitoring of district regulator

station maintenance; determining required capacity of pressure

-

and limiting stations; requirements for corrosion control; repair an

of hazardous leaks; and an overall review of record-keeping requirements per

the operators1 "Operating and Tfeintenance" plans.

Personnel from the Gas Safety Office continued to assist the Southern

Region Office of the Federal Office of Pipeline Safety Operations ^.P.S.O. ;

in joint inspections of several gas facilities in Georgia T t e

stlons

served to inform the Southern Region Office of the O.P.S.O. of uhe gas

personnel and operating procedures of the companies.

Finally, the following training programs were attended by various gas safety personnel during the year:

|l) Georgia Municipal Association Meeting, presented in Atlanta, Georgia, June, 1977.

(2)

Gas Pipeline Materials, presented by Transportation

Safety Institute, Oklahoma City, Oklahoma.

(3) Southern states Rgional Meeting! Pipeline Safety, held in Orlando, Florida.*
U ) Gas Pipeline Regulations Enforcement, presented by Transportation Safety Institute, Oklahoma City, Oklahoma, July 11-15, 19

NATURAL GAS UTILITIES
Commission jurisdictional authority over natural gas systems in Georgia remalned^'essentially unchanged during 1977, extending to four, privately-owned gas distribution companies.
The Federal Power Commission (FPC) docketed proceeding CP74-329 mentioned in our 1976 Annual Report was brought to successful conclusion whe * Commission filed a motion to convene a settlement conference with the FPC. As a result of this motion, the consolidated settlement ^ " ^ ^ f " ndous benefit to Georgia natural gas customers while, at the same time, provia ib increased gas feedstock supplies to our fertilizer industry.

Atlanta Gas Light Company
Atlanta Gas Light Company (AOL) served 740,291 customers with natural gas service in 197 municipalities located in 79 counties in Georgia on December 31? 1977. This was an increase of 18,192 over the previous Decemver 31? 1976, and included 17,571 residential customers, 2,992 commercial, and six additional public authorities.
AGL has long term contracts with its three natural gas pipeline suppliers for maximum daily deliveries aggregating 856,650 thousand cubic feet (Mcf). These contracts are for firm service from Southern Natural Gas^Company (Southern) of 739,550 Mcf per day, Transcontinental Gas Pipe Line Corporation (Transco) of 107,600 Mcf per day and from South Georgia Natural Gas Company 9,500 Mcf per day. Additional contracts are with Transco for underground storage service of up to 9,314?670 Mcf with delivery therefrom at a daily rate of up to 144,290 Mcf; for liquefied natural gas of an aggregate of 207,610 Mcf during each winter season at a daily rate of 41,522 Mcf; and for peaking service at 4,500 Mcf per day for an annual total of 135,000 Mcf.
Construction was completed for an additional liquefied natural gas (LNG) tank in Jones County, east of Tiacon. This tank holds the equivalent of 1.5 billion cubic feet of gas in liquid form and will provide greatly increased peak shaving capability for the Macon-Milledgeville area during cold weather. When needed to meet peak loads, the LNG will be vaporized and fed back into the system. This new plant adds 100,000 Mcf per day peak shaving capacity to the company's system. An additional liquefied natural gas (LNG) facility is located near Atlanta. This is a gas liquefaction plant and storage tanks with a combined storage capacity equivalent to 2,430,202 Mcf. This p an w provide approximately 200,000 Mcf per day of peak shaving capacity. The combined capacity of the Atlanta and Macon facilities is 3,932,185 Me .
AGL also maintains nine peak shaving plants which supply propane-air-gas to its system to supplement the gas supply in very cold weather or in emer gencies. Storage capacity of these plants is 14,748,625 gallons of propane. The rated daily gas-making capacity based on a twenty hour day totals 205,840 Mcf of natural gas equivalent, and the number of days during^which full capacity can be maintained without replacement of liquid propane varies from two and four tenths to ten days, averaging six days.
Over the past five fiscal years, Southern, along with its subsidiary,
South Georgia Natural Gas, have provided 88,8% of AGL's pipeline supply. Transco provided 11. 2%,
Southern has also publicly reported its arrangement to purchase 350,000 Mcf per day of liquefied natural gas (!LNG" ) from certain foreign sources. Deliveries of the'LNG are expected to begin in the summer of 1978 and it is anticipated that a significant volume of LNG should be available to Southern during the 1978-79 winter heating season.
17-

Southern reports that it has completed an expansion of its underground^ storage field capacity and is now able to deliver to the companies it supplies
approximately 35% of Southern's peak-day requirements, based on its experience
during the 1976-77 winter heating season. Southern says it will seek regula tory approval early in 1978 for a substantial increase in its storage capabil ities including customer storage. Atlanta Gas Light Company plans to contract for at least 6 billion cubic feet of such storage.
Expansion of Southern's domestic gas acquisition efforts continue. As of September 30, 1977, it had outstanding approximately $144*000,000 in advance payments to producers, giving it first call on gas discovered and produced^from certain specified properties covered by these advance payments. Southern is also in the process of negotiating for the purchase of additional LNO.
Transco, which provides gas to 69 distribution companies in^the Southeast and East Coast of the U.S., had encountered growing difficulty since 1970 obtaining new supplies of gas at regulated prices. As a result, its resources of gas available to its customers had been declining. In the past several years, however, this trend has been reversed by a gas supply development program which has resulted in an increase in the amount of gas available to Transco's customers.
Gas Light Company of Columbus
Gas Light Company of Columbus serves the City of Columbus, Georgia, and the military installation at Fort Benning, Georgia. At the end of the most recent fiscal year, August 31, 1977, this company was serving a total of 47,877 customers of which 44*424 were classified residential, 3*372 commercial, and 81 industrial.
Under the provisions of long-term contracts, Southern Natural Gas Company is obligated to deliver a daily maximum quantity of 60,000 Mcf of gas to Columbus. Like most other pipeline suppliers, Southern Natural has been ordered by the Federal Power Commission (now the Federal Energy Regulatory Commission) to curtail gas supplies to its customers in accordance with an end use priority plan when it is unable to furnish the full requirements on its system. Under the nine-category plan, which was in effect during tne ^ year on Southern Natural's pipeline system, residential and small commercial users and public institutions have the highest priority, and customers with large boiler fuel requirements where other fuels can be substituted have the lowest.
During the abnormally cold weather which prevailed during January and part of February of 1977, when most of the eastern part of the United States was experiencing a severe gas supply shortage, Southern Natural restricted pipeline deliveries to the company essentially in the Priority One requirements of residential and small commercial customers. By supplementing^the pipeline gas with standby supplies of liquefied petroleum gas (LPG) and liquefied natural gas (LNO) during this period, the company was able to^serve the requirements of all customers except those classified industrial. Other than
18-

during this emergency period, the supply of pipeline gas in 1977 was^adequate to meet the requirements of all customers except those served under inter ruptible rate schedules who are able to switch to other fuels when gas is not available.
The company's LPG and LNG facilities are designed to supplement the supply of pipeline gas on days of maximum customer requirements during the heating sea son. The LPG facility has a maximum capacity of approximately 14,000 Mcf per day for five days and the LNG facility approximately 30,000 Mcf per day for sixteen days.
The supply of gas available from Southern Natural and peak shaving^facilities appears to be adequate to meet the requirements of the company's high priority customers for the next few years.
The company filed a petition with the Commission on August 19, 1977, requesting authority to adjust its gas rates to provide additional annual revenue of $933,000, representing an increase of about 5i percent over existing annual revenues. The company's request was based on a deficiency in earnings caused by increases in operating expenses over a three year period, due to inflation, and on its claim for a higher rate of return. After public hearings in October, 1977, the Commission authorized the company to increase its rates effective December 15, 1977, to provide additional gross annual revenue^of $673,705. This resulted in increases of approximately 3 percent for residential and commercial customers and 4-0 percent for industrial.
In February, 1977, the company received a refund from Southern Natural in^ the amount of $1,202,772.93 resulting from an order of the Federal Power Commission approving final settlement of a Southern Natural rate increase which was placed in effect subject to refund on October 16, 1975. This refund was passed on to customers of Gas Light Company during Itoch and April of 1977 in a manner ap proved by the Georgia Public Service Commission.
United Cities Gas Company
United Cities Gas Company (United Cities) is a natural gas distribution company operating in six states and purchases its natural gas supply^from six interstate pipelines and several small producers. In Georgia, United Cities serves the cities of Gainesville and Oakwood and environs of Hall County. At the end of 1977, they served 7,604 customers in Georgia, as compared to 7,481 at the end of 1976. Total revenues were $2,641,900, as compared to $2,075,144 the Pr^-r year. Of the 7,604 customers, 6,138 are residential, 931 are commercial, 42 are industrial, and 493 are public authority.
United Cities purchases 100$ of its natural gas supply in Georgia from Transco. This gas supply consists of an 8,100 Mcf daily firm contract and 4,751 Mcf winter or storage service contract. The company has increased its storage capacity from 130,000 Mcf to 450,000 Mcf in order to meet present and future firm requirements. Tranco has curtailed their customers on a seasonal basis

for the past five years under authority granted by the Federal Energy Regulatory Commission. As a result of this curtailment, United Cities in 1977 was unable to meet all of its interruptible customers' annual requirements. At the present curtailment level, this situation will exist in 1978. The company anticipates no problem in meeting all of its firm customers' requirements during the coming year, either on a peak-day or annual basis.
Chattanooga Gas Company
Chattanooga Gas Company serves a limited area within the State of Georgia^ consisting of most of the area within the city limits of Rossville, Georgia, and Fort Oglethorpe, Georgia, plus a corridor along Highway 27 extending be tween these two towns. The principal service area of Chattanooga Gas in Metropolitan Chattanooga, Tennessee, a major portion of the surrounding Hamilton County, Tennessee, and also Cleveland, Tennessee, located in Bradley County, approximately 30 miles portheast of Chattanooga. Chattanooga^Gas serves approximately 25,154 customers in Tennessee and 486 customers in Georgia.
Chattanooga receives its basic supply of natural gas from two natural gas pipeline companies, East Tennessee and Southern Natural, under contracts expiring in 1986 and 1988, providing for a current daily contract demand of 101,565 Mcf. Each of the suppliers has in effect tariff provisions reducing actual deliveries to Chattanooga below the amounts of their currently effective daily contract demand.
Chattanooga's operating revenues for 1977 were $39,372,410, an increase of $4,270,140 over 1976 revenues amounting to $35,102,270. The cost of natural gas delivered for 1977 was $30,275,933, an increase of $4,117,027 over 1976 gas cost totaling $26,158,906. Volumes of gas sold, 24,076,844 Mcf in 1977 reflected a decrease of 3,057,777 Mcf, compared to 27,134,621 Mcf sold in 1976. Revenues and volumes of gas sold within the State of Georgia represent 3$ of Chattanooga's annual sales.
The 1976-77 winter was the coldest ever recorded in the Chattanooga area with temperatures for October through February being 28% colder than normal, while the month of January alone exceeded normal by 46%. Because of the severe weather, Chattanooga's pipeline suppliers seriously reduced their gas alloca tions and Chattanooga was forced to curtail substantial volumes of firm gas (at least 1-1/2 billion cubic feet) to its industrial and large commercial customers between January 18 and February 23, 1977. During this same period Chattanooga's residential and small commercial customers contributed a major conservation effort.
9A,,

ELECTRIC UTILITIES
Georgia Power Company
The Georgia Power Company serves a 57,000 square-mile area of the state that encompasses 153 of the state's 159 counties* At the end of 1977, the Company's customers totaled 1,138,470. Its residential cus tomers averaged using 10,654 kilowatt-hours of electricity and averaged paying 3.43 centsincluding fuel costs, for each kilowatt-hour of electricity used. In 1976 residential customers paid an average of 3.31 cents for each kilowatt-hour.
The maximum system demand for electricity in 1977 occurred on July
21 at 5:00 p.m. Central Time when a peak hour demand of 9,631,400 kilowatts,
5.3 percent above the 1976 peak, was recorded. On January 19, 1977, un usually cold temperatures resulted in a record for most usage in a 24-hour period, when customers demanded 175,246,703 KWH of electricity. Georgia Power customers used a record 43.8 billion KWH in 1977, a 6.02 percent increase over 1976.
Georgia Power in 1977 joined with its wholesale customers in agree ments that call for these customers to invest $1.5 billion of the $5.1 billion needed to build new facilities between 1978 and 1982.
The Company spent $534 million for new plants and related facilities in 1977. Georgia Power invested $265 million for new plants alone, and the Oglethorpe Electric Membership Corporation, Municipal Electric Authority of Georgia and the City of Dalton, through their joint ownership agreements with the Company, contributed $124 million, bringing the total investment for new plants to $389 million for 1977.
A downward revision in projected growth of electrical demand from 7.3 percent to 6.5 percent resulted in the slowdown of construction at Plants Vogtle and Scherer.
Plant Vogtle, a nuclear generating facility near Augusta, had com pletion dates of 1983 for Unit 1 and 1984 for Unit 2. New target dates for commercial operation of the two 1,160,000 KW units are November 1984 for Unit 1 and November 1985 for Unit 2. At Plant Scherer, a coal-fired facility near Forsyth, three of the four units were slowed with new target dates for commercial operation scheduled for 1982 for Unit 1; 1983 for Unit 2 and 1986 for Unit 4. Unit 3 is still scheduled for completion in 1984. Each of the four units will provide 818,000 KW of generating power.
The slowdown will mean a net decrease of $90 million in construction expenditures. Under the revised schedule, Georgia Power expects reserve generating capacity to dip slightly below 15 percent in 1984, but remain above that level in all other years.
21-



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Through December 31, 1977, Georgia Power had sold undivided interests in Plants Hatch, Wansley, Vogtle and Scherer plus transmission and sub station facilities t OEMC, a cooperative af electric membership corpora tions in Georgia; MEAG, a public corporation and an instrumentality of the State of Georgia; and the City of Dalton. Through December, these interests have been sold for cash amounting to $788,000,000. These sales increased net income by $8,989,000 in 1977 and $3,560,000 in 1976.
Plant Vogtle, the $2.7 billion project on the Savannah River, is the most expensive construction project ever undertaken within the
Southern Company electric system. At the end of 1977, about 500 persons
were employed at the plant. Some 4,000 workers will be employed during peak construction in 1981.
At the Company's other nuclear facility, Plant Hatch, construction
n Unit 2 was 96 percent complete at the end of 1977. Fuel loading for the 82.0,000 KW unit near Baxley is scheduled for April 1978 with a pro jected commercial operation slated fcr November 1978.
The second 865,000 KVJ unit at Plant Wansley near Carrollton is nearing completion with start-up activities underway. The unit initially was placed in service for a sh#rt period on January 14, 1978. Commercial operation is scheduled for mid-1978.
Additional efforts are being directed toward improving design at existing plants such as conversion to a balanced draft operation at Hammond, Unit 4, and Branch, Units 1 and 2. The two branch units are being equipped with upgraded precipitators to further reduce flue gas emissions.
More emphasis also was given to maintenance of existing facilities. Following the generation problems which occurred during last year's extremely cold temperatures and contributed to rotating blackouts, a comprehensive winterization program was initiated to insure that vital equipment would not freeze, forcing generating units to reduce power output or shut down entirely. The weatherization program was completed in December 1977.
During the year the Company constructed 265 miles of transmission lines and 721 miles of distribution lines. Georgia Power built 24 additional substations in 1977.
Earnings after dividends on preferred stock, which dropped for the second year in a row, were $111,686,000 for 1977 compared with $121,118,000 for 1976. The 7.8 percent drop was attributed to the effects of inflation and increased operational and maintenance expenses, which exceeded additional revenues for the year.
- 22-

the Company filed a request with the Commission for in rates. Hearings were conducted during the ^nsideration, Commission granted authority to July 1, 1977, in the amount of $4,900,000 which revenues by approximately 7.0 percent. The 1977 included the issuance of a 5.0 percent ust and the sale of 600,000 shares of common on the installation of pollution abatement Wentworth generating station. This pro, enabling the Company to convert three he end of 1978. The conversion of these S dependence on foreign oil, and is In February 1978, the Company roximately 80 percent of the Port through the issuance and sale through the Savannah Port
-24~

In January 1977 the Company filed a request with the Commission for a $6,500,000 increase in rates. Hearings were conducted during the Spring and after due consideration, Commission granted authority to increase rates effective July 1, 1977, in the amount of $4,900,000 which would increase operating revenues by approximately 7.0 percent. The Company's financing during 1977 included the issuance of a 5.0 percent common stock dividend in August and the sale of 600,000 shares of common stock in October.
During 1977 work continued on the installation of pollution abatement facilities at the Company's Port Wentworth generating station. This pro ject will be completed during 1978, enabling the Company to convert three units at that facility to coal by the end of 1978. The conversion of these three units will lessen the Company's dependence on foreign oil, and is expected to reduce overall fuel costs. In February 1978, the Company plans to complete the financing for approximately 80 percent of the Port Wentworth pollution abatement facilities through the issuance and sale of $8 million in tax exempt revenue bonds through the Savannah Port Authority.
-24

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TELEPHONE UTILITIES
Southern Bell Telephone and Telegraph Company
Total telephones in service for Southern Bell in Georgia at the end of 1977 were 3,189,798. This is an increase during the year of 163,54-5, which is down from the heavy activity of 1976. The inward movement during 1977 increased by 3$ over 1976 to 980,830, while outward movement was 817,167, a 7$ increase over 1976.
The households with service in the area served by Southern Bell (Bell) now
stands at 91.1% Of those households with telephone service, 2.51 had second
residence lines ;&t the end of 1977.
During 1977 Bell customers dialed 88.1$ of their long distance calls, an in crease of 2.4$ over 1976. On 11.9$ of the long distance calls customers required operator assistance either for special billing arrangements such as credit cards, third number and collect calls or for person-to-person and similar calls requiring special handling. The WATS-using subscribers directly dialed 98.9$ of their calls, which is a .2$ increase over 1976. Bell is continuing to install the computerized TSPS operator positions and increase the number of exchanges having access to TSPS operations. During 1977 Bell's toll centers at Jesup, Athens and Augusta were converted to TSPS.
New construction expenditures in Georgia for 1977 rose 10$ over 1976 to a total of $356 million.
The service regards to Bell customers continued and, as of the end of 1977, 95.5$ of the residential users had individual line service. Only .6$ had 4-party service, which amounts to 7471 subscribers and represents a reduction of 2138 during 1977. Bell is also continuing to expand the number of central offices with electronic switching. Bell put into service, by either adding new or converting existing offices, six electronic units during 1977. There are now 23 wire centers with partial or full ESS call processing ability, allowing them to provide on a wider scale the new services and features needed to meet customer desires for new and expanded service.
During 1977 Bell filed 69 tariff filings with the Commission, involving 379 pages of new or changed service offerings. Also in 1977, Southern Bell in Georgia paid slightly over $48,760,000 in local and state taxes.
In addition, Georgia telephone customers paid, on their telephone service over $10,805,000 in state sales taxes, over $1,532>000 in liAJRTA sales taxes, and payments for local option taxes more than doubled to $742,000.
Charging calls to Directory Assistance (D.A.) in Georgia started during January 1975. At that time the number of calls to D. A. dropped from about 600 thou sand per average business day to about 225 thousand per business day. As a result, there was an annual savings of $7.1 million in operator wages and an increase in revenue of about $1.5 million per year.

During three years experience with D. A. charging, the volume of calls has increased steadily to a current rate of 265 thousand per average business day.
The year 1977 was about 8% above 1976. Current volumes of calls to Cirectory
Assistance are about 67$ below those which would have been expected without the charge.
Total operator wages during 1977 were actually less than during 1974- before D. A. charging. There have been other efficiencies accomplished, but the principal reason for this drop is the savings due to D. A. During 1977 savings were estimated at $6.5 million. This acount is a direct reduction in Georgia intrastate revenue requirement and amounts to a savings of $6.14- per year on each telephone customer's bill.
Revenues from D. A. are designed to be minimal. There is no charge for the first five calls. Also, certain residence and business accounts, plus coin, hotel, hospital and official accounts are exempt from billing. D. A. revenue
started at about $125,000 per month, .3% of total intrastate revenue. Billing records were created manually and about 6% of the total volume were unbillable
due to incorrect numbers.
During 1977 Bell began installing automatic number identification equipment. Revenues began to climb both from growth and because of better billing records.
At present, D. A. revenues amount to nearly $250,000 per month or ,U% of total
intrastate revenue. Adjustments for calls billed incorrectly dropped from $10,000 in January 1977 to $6,000 in December. The percent of unbillable
messages has dropped to 2% and is expected to be zero as automatic number
identification conversion is completed.
During 1977 only 9% of Georgia customers made enough D. A. calls to be billed
for them and most of the bills were for only one dollar or less. Nearly half of all telephone customers in Georgia did not call Directory Assistance at all The average bill for accounts with D. A. charges was $1.36 for residence and $3.90 for business.

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UTILITIES FINANCIAL ANALYSIS DIVISION
INTRODUCTION
The function of the Utilities Financial Analysis Division is to provide the Commission with professional and technical service in order that responsi bilities to the public as required by law can be met. A competent technical, professional and administrative staff performs specific functions in the rate, auditing and accounting departments, in order to carry out the duties assigned to it by the Commission.
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.
In 1977, the Legislature appropriated funds for a new Prime Energy Audit Staff for the Fublic Service Commission. The purpose of this section is to have a continuous and on-going audit of fuel adjustment and purchased gas ad justment clauses of the electric and gas companies respectively.
This section was funded as of July 1, 1977, at which time it became active. Existing staff and two new employees were temporarily assigned to this section until permanent staff could be arranged. As of December, 1977, this section was permanently staffed and functioning.
We have been able to establish an audit program and routine which will verify the correctness of the fuel adjustments and purchased gas adjustments that are being collected from the utility consumers of the State of Georgia for those utility companies subject to rate regulation by this Commission.
The Prime Energy Audit staff also completed an audit and investigation of the Georgia Power Company Security Department. This investigation revealed poor cost control over personal expense statements, vehicle leasings, and security operations and as a result of this audit, Georgia Power has pledged to institute a set of procedures designed to strengthen their cost control.
A security audit report will be made public January 4, 1978.
ACTIVITIES
The Commission issued a total of 78 orders for this division after formal proceedings during the year 1977 involving utility companies. The orders en tailed certificates, rate adjustments and the issuance of securities relating to capital subject to the jurisdiction of this Commission.
At the close of the calendar year, 1977, there were under the juris diction of this Commission the following number of public utilities?
27-

Electric

2

Natural Gas

4

^Telephone

43

Radio Common Carriers 26

Telegraph

2

* Includes 4 cooperatives

APPLICATIONS FOR AUTHORITY TO ISSUE SECURITIES OR BORROW MONEY

Hon-Docket February 1 1977

Application of South Georgia Telephone Company, Inc., for authority to record and amortize an extraordinary maintenance and retirement of $50,053 93

Docket No 2981-U February 1, 1977

Application of United Cities Gas Company for an order authorizing the issuance and sale of $33000s000 principal amount of First Mortgage Bonds, Series H, and the delivery of a Supplemental Indenture securing same.

Docket No. 2982-U February 1, 1977

Application of Bulloch County Rural Tele phone Cooperative, Inc., for authority to borrow $995,000 from the Rural Electric and Telephone Revolving Fund at the rate of 2.0% per annum.

Non-Docket February 1, 1977

Application of Tri-State Electric Member ship Corporation for approval of Notes of $510,000 to be executed in favor of the United States of America, acting through the Rural Electrification Administration and of $219,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage.

Non-Docket February 1, 1977

Application of Canoochee Electric Member ship Corporation for approval of Notes of $558,900 to be executed in favor of the United States of America, acting through the Rural Electrification Administration and of $239,000 to be executed in favor of the National Rural Utilities Coopera tive Finance Corporation with a separate Note to each of said lenders to be secured by a common mortgage.

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APPLICATION FOR AUTHORITY TO ISSUE SECURITIES OR BORROW MONEY

Docket No. 2990-U February 15, 1977

Application of Citizens Telephone Company for authority to borrow $2,600,000 from the Rural Electric and Telephone Re volving Fund bearing interest at the rate of 5% per annum for a period not to exceed thirty-five years.

Docket No. 2.984-U February 15, 1977
Docket No. 2913-U February 15, 1977

Application of Hart County Telephone Com pany to borrow $155,000 from Stromberg-- Carolson Corporation at an interest rate of 10.5% per annum for a period of fifteen years.
Petition for the Reconsideration of the Application of Alma Telephone Company, Inc., for authority to borrow $1,460,000 from the United States of America acting through the Rural Electrification Ad ministration at the rate of 5% per annum for a period of thirty-five years.

Non-Docket February 15, 1977

Application of Middle Georgia Electric Membership Corporation for approval of Notes of $544,000 to be executed in favor of the United States of America, acting through the Rural Electrification Administration and of $233,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corpora tion with a separate Note to each of said lenders to be secured by a common Mortgage.

Non-Docket February 15, 1977

Application of Sumter Electric Membership Corporation for approval of Notes of $492,000 to be executed in favor of the United States of America, acting through the Rural Electrification Administra tion and of $211,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage.

Non-Docket February 15, 1977

Application of Amicalola Electric Member ship Corporation for approval of Notes of $546,000 to be executed in favor of the United States of America, acting through the Rural Electrification Administration and of $234,000 to be executed in favor of the National Rural Utilities Coopera tive Finance Corporation with a separate Note to each of said lenders to be se c u r e d by a common Mortgage.

APPLICATIONS FOR AUTHORITY TO ISSUE SECURITIES OR BORRON MONEY

Non-Docket February 15, 1977

Application of Little Ocmulgee Electric Membership Corporation for approval of Notes of $276s000 to be executed in favor of the United States of America, acting through the Rural Electrification Ad ministration and of $119s000 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage.

Non-Docket February 15, 1977

Application of Jefferson Electric Member ship Corporation for approval of Notes of $740,000 to be executed in favor of the United States of America, acting through the Rural Electrification Administration and of $317,000 to be executed in favor of the National Rural Utilities Coopera tive Finance Corporation with a separate Note to each of said lenders to be se cured by a common Mortgage.

Non-Docket March 1, 1977

Application of Okefenoke Rural Electric Membership Corporation for approval of Notes of $716,000 to be executed in favor of the United States of America, acting through the Rural Electrification Ad ministration and of $307,000 to be exe cuted in favor of the National Rural Utilities Cooperative Finance Corpora tion with a separate Note to each of saia lenders to be secured by a common Mortgage.

Non-Docket March 1, 1977
Non-Docket March 1, 1977

Application of Lamar Electric Membership Corporation for approval of Notes of $473,000 to be executed in favor of the United States of America, acting through the Rural Electrification Ad ministration and of $203,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage.
Application of Coweta-Fayette Electric Membership Corporation for approval of Notes of $972,000 to be executed in favor of the United States of America, acting through the Rural Electrification Ad ministration and of $417,000 to be

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APPLICATIONS FOR AUTHORITY TO ISSUE SECURITIES OR BORROW HONEY

executed in favor of the National Rural Utilities Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage.

Docket No. 2993-U March 15, 1977

Application of Georgia Power Company for authority to issue and sell up to 2,000,000 shares of Class A Preferred Stock and to issue and deliver up to $19,970,000 principal amount of First Mortgage Bonds for sinking fund purposes.

Non-Docket March 15, 1977
Docket No. 2975-U April 5, 1977

Application of Excelsior Electric Member ship Corporation for approval of Notes of $668,000 to be executed in favor of the United States of America, acting through the Rural Electrification Ad ministration and of $287,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corpora tion with a separate Note to each of said lenders to be secured by a common mortgage.
Application of Nelson-Ball Ground Tele phone Company for authority to borrow $1,607,000 from the Rural Electrification Administration bearing interest at the rate of 5% per annum for a period not to exceed thirty-five years.

Docket No. 2973-U April 5, 1977

Application of Comdata Telegraph and Telecommunications, Inc., for authority to issue and sell 1,000 shares of its capital stock, par value $100 per share, and to assume the obligations under a mortgage and promissory note in the principal amount of $233,000.

Non-Docket April 19, 1977

Application of Savannah Electric and Power Company to sign an Installment Purchase Agreement and Contract to cover computer purchase over a six-year period.

Non-Docket April 19, 1977

Application of the City of Dalton, Georgia for authority to issue and sell $125,000,000 principal amount of its Electric and Gas Revenue Bonds.

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APPLICATIONS FOR AUTHORITY TO ISSUE SECURITIES OR BORROW MONEY

Docket No. 3000-U April 28, 1977

Application of Atlanta Gas Light Company for authority to issue and sell at nego tiated public sale not more than $35,000,000 aggregate principal amount of First Mortgage Bonds.

Non-Docket April 28, 1977
Docket No. 3005-U May 23, 1977

Application of Grady County Electric Membership Corporation for approval of Notes of $628,000 to be executed in favor of the United States of America, acting through the Rural Electrification Ad ministration and of $269,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corpora tion with a separate Note to each of said lenders to be secured by a common mortgage.
Application of General Telephone Company of the Southeast for waiver of the rules of competitive bidding and for authority to negotiate for the sale or underwriting of not more than $14,000,090 of First Mortgage Bonds at private placement and to apply the proceeds thereof to the redemption of outstanding securities.

Non-Docket May 23, 1977

Application of Colquitt Electric Member ship Corporation for approval of Notes of $1,534,000 to be executed in favor of the United States of America, acting through the Rural Electrification Ad ministration and of $658,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage.

Non-Docket May 23, 1977

Application of Blue Ridge Mountain Elec tric Membership Corporation for approval of Notes of $594,000 to be executed in favor of the United States of America, acting through the Rural Electrification Administration and of $255,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corpora tion with a separate Note to each of said lenders to be secured by a common Mortgage.

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APPLICATIONS FOR AUTHORITY TO ISSUE SECURITIES OR BORROW MONEY

Non-Docket June 8, 1977

Application of Planters Rural Electric Membership Corporation for approval of Notes of $613,000 to be executed in favor of the United States of America acting through the Rural Electrifica tion Administration.

Non-Docket June 8, 1977

Application of Satilla Rural Electric Membership Corporation for approval of Notes of $l,195p00Q to be executed in favor of the United States of America * acting through the Rural Electrification Administration and of $513,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation with a Separate Note to each of said lenders to be secured by a common Mortgage

Non-Doclcet June 8, 1977
Docket No. 2924-U July 19, 1977
Docket No. 3020-U July 19, 1977
Docket No. 3013 -U~ July 19, 1977

Application of Three Notch Electric Membership Corporation for approval of Notes of $692,000 to be executed in favor of the United States of America, acting through the Rural Electrification Ad ministration and of $296,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage
Application of Savannah Electric and Power Company for authority to issue up to $8,000,000 Principal Amount of First Mortgage Bonds and other senior debt securities.
Application of Ringgold Telephone Company for authority to borrow $974,000 from the Rural Electrification Administration at an interest rate of 5.0% per annum for a period of 35 years.
Application of Coastal Utilities, Inc.,for authority to borrow $7,604,100 from the Rural Telephone Bank at 6-1/2% per annum for a period of 35 years.

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APPLICATIONS FOR AUTHORITY TO ISSUE SECURITIES OR BORROW MONEY

Docket No. 2996-U July 19, 1977

Application of Planters Rural Telephone Cooperative, Inc., to borrow $1,134,000 from the Rural Electric and Telephone Revolving Fund at 2% per annum for a period of 35 years.

Docket No. 3038-U August 2, 1977

Application of Atlanta Gas Light Company for authority to acquire the Natural Gas Distribution System of the City of Jackson, Georgia.

Docket No. 3022-U August 2, 1977

Application of Continental Telephone Corporation, Continental Telephone Com pany of Dixie and Thomaston Telephone Company for authority for Thomaston to merge into and with New Thomaston, with New Thomaston to remain as the surviving corporation under the name Thomaston Telephone Company.

Docket No. 3006-U August 2, 1977

Application of Continental Telephone Corporation and South Georgia Telephone Company for authority for Continental to acquire all of the issued and outstanding shares of capital stock of South Georgia.

Non-Docket August 2, 1977

Application of Carroll Electric Member ship Corporation for approval of Notes of $746,000 to be executed in favor of the United States of America, acting through the REA and of $320,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage.

Docket No. 3026-U August 17, 1977

Application of Darien Telephone Company, Inc., to borrow $2,470,000 from the REA at an interest rate of 5% per annum for a period of 35 years.

Non-Docket August 17, 1977
Docket No. 3043 September 15, 1977

Application of North Georgia Electric Membership Corporation to borrow up to $1 million from the Columbia Bank for Coopera tives, initially at the rate of 6.5/o per annum.
Application of Savannah Electric and Power Company for authority to issue 111,277 shares of $5 par value Common Stock (5% Common Stock Dividends).

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APPLICATION FOR AUTHORITY TO ISSUE SECURITIES OR BORROW MONEY

Non-Docket September 15, 1977

Application of Tri-County Electric Membership Corporation for approval of Notes of $1,543,000 to be executed in favor of the United States of America acting through the REA and of $661,000 to be executed in favor of the National Rural Utilities Cooperative Finance Cor poration itfith a separate Note to each of said lenders to be secured by a common mortgage.

Docket No. 3042-U October 4, 1977

Application of Brantley Telephone Co., Inc., for authority to borrow $2,642,000 from the REA at 5% per annum for a period of 35 years.

Docket No. 3047-U October 4, 1977

Application of Savannah Electric and Power Company for authority to issue and sell 750,000 Shares of Common Stock.

Non-Docket October 4, 1977

Application of Cobb Electric Membership Corporation for approval of Notes of $3,071,000 to be executed in favor of the United States of America, acting through the Rural Electrification Ad ministration and of $1,316,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage.

Docket No. 3028-U October 18, 1977

Application of Chickamauga Telephone Corporation for authoirty to borrow $1,408,000 from the Rural Telephone Bank at the rate of 6.5% per annum for a period of 35 years and to borrow $1,012,000 from REA at the rate of 5% per annum for a period of 35 years.

Docket No. 3051-U November 21, 1977

Application of Continental Telephone Com pany of the South for authority to issue $37,000,000 of first mortgage bonds to the Federal Financing Bank and 20,000 shares of common voting stock to Continental Telephone Corporation.

APPLICATIONS FOR AUTHORITY TO ISSUE SECURITIES OR BORROW MONEY

Non-Docket November 21, 1977

Application of Amicalola Electric Mem bership Corporation for approval of Notes of $546,000 to be executed in favor of the United States of America, acting through the REA and of $234,000 to be executed in favor of the National Riral Utilities Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage.

Non-Docket November 21, 1977

Application of Jackson Electric Member ship Corporation for approval of Notes of $1,921,000 to be executed in favor of the United States of America, acting through the REA and of $823,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage.

Non-Docket November 21, 1977

Application of Altamaha Electric Member ship Corporation for approval of Notes of $824,000 to be executed in favor of the United States of America, acting through the Rural Electrification Administration and of $353,000 to be executed in favor of the National Rural Utilities Coopera tive Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage.

Non-Docket December 6, 1977

Application of Pataula Electric Member ship Corporation for approval of Notes of $378,000 to be executed in favor of the United States of America, acting through the REA and of $162,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage.

Non-Docket December 6, 1977

Application of Walton Electric Membership Corporation for approval of Notes of $3,900,000 to be executed in favor of the United States of America, acting through the REA and of $1,672,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage.

APPLICATIONS FOR AUTHORITY TO ISSUE SECURITIES OR BORROW HONEY

Non-Docket December 6, 1977

Application of Sawnee Electric Membership Corporation for approval of Notes of $812,000 to be executed in favor of the United States of America, acting through the REA and of $348,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage.

Non-Docket December 6, 1977

Application of Flinfc Electric Membership Corporation for approval of Notes of $1,248,000 to be executed in favor of the United States of America, acting through the REA and of $535,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation with a Separate Note to each of said lenders to be secured by a common Mortgage.

Docket No. 3054-U December 20, 1977

Application of Georgia Power Company for authority to borrow up to $30,000,000 from the Development Authorities of Bartow, Bibb and Floyd Counties, Georgia, to finance Air and Water Pollution Con trol Facilities as security for such borrowing, to issue and deliver up to $30,000,000 principal amount of First Mortgage Bonds, to issue up to $20,378,000 principal amount of First Mortgage Bonds for sinking fund purposes.

Non-Docket December 20, 1977 Amended Order

Application of Flint Electric Membership Corporation for approval of notes of $1,248,000 to be executed in favor of the United States of America, acting through the REA and of $535,000 to be executed in favor of the National Rural Utilities Co operative Finance Corporation with a sep arate note to each of said lenders to be secured by a common mortgage.

Non-Docket December 20, 1977

Application of Central Georgia EMC for approval of Notes of $2,186,000 to be ex ecuted in favor of the United States of America, acting through the REA and of $936,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation with a separate Note to each of said lenders to be secured by a common Mortgage.

-37-

RATE ADJUSTMENT PROCEEDINGS

Docket No. 2960-U February 1 9 1977

Application for an adjustment in the schedule of rates and charges for the intrastate service furnished by General Telephone Company of the Southeast in Georgia.

Docket No. 2963-U February 1, 1977

Application of Continental Telephone Company of the South for authority to adjust its rates and charges for intra state telephone service in Georgia.

Docket No. 2959-U February 15, 1977

Application of Empire Telephone Company for authority to adjust its rates and charges for its local exchange telephone service.

Docket No. 2974-U April 5j 1977

Application of Nelson-Ball Ground Tele phone Company for authority to increase local exchange rates.

Docket No. 2963-U April 5, 1977 FIRST SUPPLEMENTAL ORDER

Application of Continental Telephone Clmpany of the South for authority to adjust its rates and charges for intra state telephone service in Georgia.

Docket No. 2974-U May 23, 1977 FIRST SUPPLEMENTAL ORDER

Application for authority to adjust local exchange rates by Nelson-Ball Ground Telephone Company. Petition for rehear ing, reconsideration and oral argument by Nelson-Ball Ground Telephone Company.

Docket No. 2959-U June 8, 1977 FIRST SUPPLEMENTAL ORDER

Petition for reconsideration of the ap plication of Empire Telephone Company for authority to increase its rates and charges for its local exchange telephone service.

Docket No. 2995-U June 21, 1977

Application of Savannah Electric and Power Company for authority to increase rates for retail electric service.

Docket No. 3011-U July 19, 1977

Application of St. Joseph Telephone and Telegraph Company for authority to in crease local service charges and certain tariff items.

Docket No. 2997-U July 19, 1977

Application of Planters Rural Telephone Cooperative, Inc., for authority to make various adjustments in its local exchange rates.

-38-

Docket No. 308-U August 17, 1977
Docket No. 3025-U August 17, 1977
Docket No . 3002-U September 6, 1977
Docket No. 3027-U November 1, 1977
Docket No. 3044-U December 1, 1977
Docket No. 3052-U December 20, 1977

RATE ADJUSTMENT PROCEEDINGS
Application of Statesboro Telephone Company for authority to increase local exchange rates.
Application of Darien Telephone Company, Inc., to make various adjustments in its rates.
Application of Georgia Power Company for authority to increase its rates for retail electric service approximately $197.6 million.
Application of Chickamauga Telephone Corporation for authority to increase local service charges.
Application of Gas Light Company of Columbus for authority to increase rates for gas service.
Application of Interstate Telephone Company for authority to increase local service rates.

Non-Docket July 20, 1977
Non-Docket August-4, 1977
Docket No. 2672-U September 6, 1977
'Ion-Docket October 18, 1977

MISCELLANEOUS ACTIONS BY COMMISSION
Application of Savannah Electric and Power Company for exemption from Rule 515-4-1-.15 of the Commission's Stock and Bond Application Rule.
Petition by Ellijay Telephone Company for amendment of Rules of the GPSC regarding accounting requirements 515-3-1-.10, Paragraph (f), Requirements 1,6, Require ment 7, subparagraphs (i), (ii)
Application concerning Savannah Electric and Power Company for revisions to its service rules.
Protective Order, Georgia Power Company Security Audit