Report of the Georgia public service commission. One hundred and sixth report, 1978

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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 106th Annual Report of the regulatory activities of the Commission for the year ending December 31, 1978.

Commissioner Lovett was not a member of the Georgia Public Service Commission during the subject period.

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S T A T , O F G E O R G I A GEORGE D. BUSBEE, GOVERNOR
106th Report of
GEORGIA PUBLIC SERVICE COMMISSION 244 Washington St., S.W. Atlanta, Georgia 30334
January If 1978 to January 1, 1979
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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106th ANNUAL REPORT Introduction
The Annual Report of the Georgia Public Service Commission covering the activities for the year ending December 31, 1978, is submitted herewith in compliance with the law.
The personnel of the Commission as of December 31, 1978, were as follows;
Ben T. Wiggins, Chairman William H. Kimbrough, Vice Chairman Mac Barber, Commissioner Robert C. (Bobby) Pafford, Commissioner Ford B. Spinks, Commissioner
'fg' ; A list of the Commission's professional staff personnel as of December 31, 1978, is as follows:
Administration
Hugh S. Jordan, Executive Secretary C. Heath Armfield, Jr., Director, Administrative Service John R. Price, Court Reporter Ms. Jean B. Trisch, Senior Accountant Mrs. Jackie B. Thomas, Personnel Manager II
Utilities Engineering
James J. Crudup, Director, Utilities Engineering Billy G. Collier, Utilities Engineering Specialist Robert C. Evans, Utilities Engineering Section Chief G. Thomas Fortner, Utilities Engineering Section Chief M. Glynn Blanton, Utilities Engineering Section Chief Truman E. Holland, Utilities Engineering Specialist Cecil D. Bentley, Utilities Engineering Section Chief Jackson A. Dodd, Utilities Engineering Specialist Hugh W. Stanley, Utilities Engineering Specialist I. Gilbert Bentley, Senior Utilities Analyst Mitchell Ingram, Senior Gas Safety Inspector Charles F. Spencer, Senior Gas Safety Inspector
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Utilities Financial Analysis
Beverly B. Knowles, Director, Utilities Financial Analysis James H. Cole, Utilities Analysis Specialist Donald H. Craig, Utilities Analysis Specialist Nolan E. Ragsdale, Senior Utilities Analyst Mrs. Linda Walsh, Senior Utilities Analyst S. D. Weaver, Senior Utilities Analyst firs. Caroline Williamson, Senior Utilities Analyst Ned Guillebeau, Utilities Engineering Specialist Philip McMullan, Utilities Analyst
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 Specialism'll 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
During the year the Commission conducted 527 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 AMD SERVICES DIVISION

"COMMISSION ACTION

R ailroad & Motor C a rrie rs :

Docket D e c i s i o n s .................. 12

Non-Docket D e cisio n s . . . 2026

TOTAL

2038

During 1978 the Commission and i t s T ra n sp o rta tio n Rates and S e rvice s s t a f f o f f i c i a l l y disposed o f , in a d d itio n to the twelve formal proceedings l i s t e d below, tra n s p o rta tio n r a t e s ' and s e rv ic e s m a tte rs , a co n sid e ra b le number o f which re q u ire d lengthy stu d ie s and in v e s t ig a t io n s in the f i e l d .

DOCKET MO.

DATE

FORMAL CASES FOR YEAR 1978 SUBJECT

DISPOSITION

778-R 777-R 8091-M

1-12-78 2-16-78 4-13-78

A p p lica tio n o f Georgia ra ilro a d s

APPROVED

seeking a u th o r ity to amend

VIITH

Eastern Railroad Association

EXCEPTIONS

T a r i f f 4 -K , (General Car Demurrage

Rules) j^GA PSC HM a to remove the

e x is t in g exceptions on Ga. in t r a s t a t e

t r a f f i c as to the 24-hour fre e time

lim ita tio n fo r loading.

A p p lica tio n o f Southern Freig h t T a r i f f Bureau seeking a u th o rity to re v is e ca rlo a d ra te s on Limestone between p o in ts in Georgia as published in Supplements 18 and 19 to SFTA T a r i f f 333-6, and Supplements 127 and 128 to SFTB T a r if f $-2011-0.

DENIED

Application o f ca rrie rs p a rticip a tin g in Butler T r a f f ic S e rv ic e , I n c ., Agent T a r i f f Mo. 2, GPSC-MF No. 2 to in cre a se ra te s on A sp h a lt as published in Supplement 13 to above t a r i f f .

APPROVED

DOCKET NO. 8092-M 9^31" M
9130-M 9129-M 779' R
9123-M

DATE

SUBJECT

DISPOSITION

4 - 13~78 ...

A p p lic a tio n s to amend
p ro v is io n s and e s t a b lis h charges fo r the loading o f fre ig h t as published in Refrigerated Transport Co., Inc, T a r iff GPSC-MF No . 16 and Caudell T ra n s p o rt, Inc, T a r i f f GPSC-MF No. 40.

DEMIED

5-11 -78

A p p lic a tio n o f A ll C la ss "A15
c a rr ie rs p a rtie s to Southern Motor C a r r ie r s Rate Conference, Aoent T a r i f f 301-A , GPSC SMC 301-A requesting authority to increase ra te s and charges and a r e s tru c tu re o f c la s s ra te s which would r e s u lt in in cre a se d ra te s o r charges on some c a te g o rie s o f t r a f f i c and re d u ctio n s on o th e rs .

APPROVED IN PART

9-14-78

A p p lic a tio n o f the Georgia
Motor Trucking A sso cia tio n , In c ., on b e h a lf o f p a r t ic ip a t in g c a r r ie r s shown in GMTA T a r i f f 5-C,*GPSC-MF Mo. 22 to amend p ro v isio n s a p p ly in g to the d ete n tio n o f v e h ic le s on the premises o f Gold K is t, Inc.

APPROVED WITH EXCEPTION

9-14-78

A p p lica tio n fo r Arthur L. Mabry, dba Arnel Tours f o r a u th o rity to a p p ly general ra te s and charges ais provided in Item 300 o f Arnel Tours T a r i f f GPSC-MF Mo. 2.

DENIED

9-14-73

Application o f Central o f Georgia R ailroad Co. fo r auth ority to discontinue it s , s ta tio n agency at East U arrento n, Ga. and f o r a u th o r ity to dismantle the statipn b u ild in q and to put s a id s ta tio n on a prepay basis fo r handling carload fre ig h t only a t East Warrenton, Georgia.

DENIED

10-25-78

A p p lic a t io n o f S e rvice Coach Lin e, Inc. fo r authority to reduce days o f op e ra tio n o f Run 3031 (Augusta to G le n n v ille ) and Run 3032 ( G le n n v ille to Augusta).
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APPROVED.

DOCKET NO. 921O-H
9231-H

DATE 10-25-73
11-30-78

SUBJECT
A pplication o f Cairo S a lt Term inal, Inc. to increase rates and charges on s a l t as p ublished in T a r i f f GPSC-MF No. 3.
A p p lic a tio n o f Georgia Movers A s s o c ia tio n , I n c ., on b e h a lf o f c a rrie rs p arties to it s Ga. I n tra s ta te T a r i f f No. 10 requesting a u th ority to in cre a se ra te s and charges on in tra s ta te shipments o f household goods contained in Supplement Mo. 7 to th a t t a r i f f .

DQSP0SITI0N
APPROVED MOT TO EXCEED INTERSTATE LEVEL OF RATES
APPROVED IN PART

9232-M

11-30-70

A p p lic a tio n No. 71 o f the

APPROVED IN

N ational Bus T r a f f i c A s s o c ia t io n , Agents PART

f o r American Coach L in e s , C ontinental

Tennessee L in e s , Greyhound L in e s ,

S e rv ice Coach L in e , Southeastern

Sta g es, and Tamiami T r a il Tours

requesting auth ority to increase

by 20% t h e i r Georgia in t r a s t a t e

lo c a l and in t e r li n e passenger f a r e s .

MOBILE RAIL AGENCY SERVICE
There has been reviewed in d e t a il in the re p o rts o f the l a s t se veral ye a rs the m obile agency concept o f p ro v id in g agency s e rv ic e to a number o f s t a t io n s under which one agent can perform the needed s e rv ic e s a t a savings to the ra ilro a d w hile adequately handling the needs o f the p u b lic a t the in v o lv in g p o in ts . During the y e a r , a d d itio n a l o p e ra tio n s were a u th orize d on a permanent b a s is . As in a l l p re v io u s ly approved m obile agency o p e ra tio n s , the Commission considered a u th o r iz a tio n to in s t it u t e these agencies to be s u b je c t to the same in v e s tig a tio n proceedings during th a t p erio d as had been observed by the Commission in such p r io r proceedinos.
I t should be here pointed o u t, th a t a t the c lo s e o f the y e a r a l l o f the mobile agencies p re v io u s ly a u th o rize d bn e it h e r a t r i a l o r permanent b a s is were op e ra tin g e f f e c t iv e ly and th a t the Commission had not re ce ive d a s in g le com plaint again st the se rv ice s so rendered.

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TRUCK RATES AMD- SERVICES
In January, C lass "B" c a r r ie r s p a r t ic ip a t in g in B u tle r T r a f f i c Service, Inc, T a r i f f Mo. 2, GPSC-MF Mo. 2 proposed to in cre a se ra te s on a sp h a lt by 10 percent.^ The in creased ra te s were suspended and p u b lic hearing was held on A p r il 13, 1978 a t which a p p lic a n ts presented evidence to support t h e i r re q u e st. Mo shipp ers appeared a t the hearing to oppose ', the in c re a s e . A f t e r co n s id e ra tio n o f the evidence presented, the Commission was persuaded th a t the proposal was j u s t i f i e d and i t was approved.
By a p p lic a tio n f i l e d in Janu ary, R e frig e ra te d Tran sp o rt Co, I n c 9 and Caudell Tran spo rt Co, Inc, proposed to e s t a b lis h a charge o f 10<t per 100 pounds f o r the lo ad in g o f f r e ig h t . The a p p lic a tio n was heard before the Commission A p r il 13, 1978. A f t e r c o n s id e ra tio n o f the e x h ib its and testim ony presented, the Commission determined th a t the proposal was not j u s t i f i e d and denied the a p p lic a tio n .
In March, the C la ss "A" c a r r ie r s o f general commodities sought a u th o rity to p la ce Into e f f e c t , on Georgia in t r a s t a te t r a f f i c , in cre a se s in ra te s and charges and a r e s tru c tu re o f c la s s ra te s which would r e s u lt in in crea sed ra te s o r charges on some ca te g o rie s o f t r a f f i c and re d u ctio n s on o th e rs . However2 the net e f f e c t o f the o v e ra ll adjustment would be an in cre a se o f 10.7 p e rce n t. The Commission suspended the proposed adjustment and assigned the matter f o r h ea rin g . A p p lic a n t c a r r ie r s presented t h e ir evidence in support o f the proposal a t the p u b lic hearing held on May 11, 1978. A p p lica n ts a ls o made request f o r an in te rim rate in cre a se to app ly pending the Commission's d e c is io n on the suspended p ro p o sa l. The ra te re s tru c tu re was sta te d to be designed to more n e a rly a lig n the ra te s w ith the c o s t o f tra n s p o rta tio n and to allo w the c a r r ie r s to become more com petitive in the high weight breaks. Six shipper rep resentatives appeared a t the h earin g in o p p o sitio n to the proposed r a t e s . On June 6 , the Commission denied a p p lic a n ts ' request f o r an in te rim in c r e a s e . By o rd e r dated J u ly 5, 1978, the Commission found th a t the f u l l amount o f the proposed in cre a se was not shown to be j u s t i f i e d nor the proposed ra te r e s t r u c t u r e . However, the evidence presented demonstrated a need o f the c a r r ie r s f o r a d d itio n a l revenues to keep abreast o f r is in g o p e ra tin g co sts and to provide a more balanced r e la t io n s h ip between the revenue earned and the h ig her motor c a r r ie r co s ts experienced on the s h o rte r haul t r a f f i c and small shipment t r a f f i c . In o rd e r to provide a reasonable amount o f a d d itio n a l revenue to enable a p p lic a n t c a r r ie r s to provide continuous and adequate motor c a r r ie r s e rv ic e to shippers in G eorgia, the Commission p re s crib e d in crea se s in ra te s and charges th a t would y i e l d an o v e ra ll impact o f 3.97 percent and apportioned the in crea se in such a manner th a t would g iv e r e l i e f to the s h o rte r haul t r a f f i c where c a r r ie r co sts are the G re a te st.
In June, c a r r ie r s p a r t ic ip a t in g in Georgia Motor Truckin g A s s o c ia tio n T a r i f f 5-C , GPSC-MF Mo. 22 proposed to reduce the fre e time f o r lo a d in g o r unloading from 5 hours to 2 hours, before d ete n tion charges would a p p ly on shipments f o r Gold K i s t , Inc. T h is change was p rote ste d to the Commission and came on f o r p u b lic hearing on September 14. A ft e r co n s id e ra tio n o f the
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evid en ce, the Commission approved the proposal with the exception th a t 5 hours fre e time would continue to apply f o r the account o f Gold K i s t , Inc, a t V a ld o sta , Georgia between October 15 and December 1 o f each y e a r and o n ly on soybeans and corn .

Cairo S a lt Term inal, Inc, proposed to place in to e ffe c t in August in crea se d ra te s on s a l t , in bulk o r in bags, to p o in ts served by th a t c a r r i e r . Such ra te s were p ro te ste d to the Commission by an in te re s te d s h ip p e r. The Commission suspended the proposed ra te s and assigned the m atter f o r hearing on October 25, 1978. Based on the evidence p resen ted, the C o m is s io n approved an in cre a se in the ra te s on s a l t but not to exceed the le v e l o f ra te s then in e f f e c t on in t e r s t a t e shipments tran sp orted by t h is same c a r r i e r .

By a p p lic a tio n f i l e d in O cto ber, the G eorgia Hovers A s s o c ia tio n , Inc, on b e h a lf o f c a r r ie r s p a r tie s to i t s Georgia I n tra s ta te T a r i f f Mo. 10, proposed in crea se s in ra te s and charges f o r t h e ir s e r v ic e s , the most s u f f i c i e n t being an average o f 10.1 percent in ra te s f o r weight and d ista n ce moves and 6.7 percent to 7.8 p ercent in ra te s f o r h o u rly ra ted moves. The in cre a se s 'were suspended and p u b lic hearing was h eld on Movember 30, 1978 a t which a p p lic a n ts presented evidence to support t h e ir re q u e st. Mo shipp ers o f household noods appeared a t the hearing in o p p o sitio n to the proposal even though n o tic e o f the m atter was w id ely dissim ated over the s t a t e . By o rd e r dated December 29, 1978, the Commission found th a t a p p lic a n ts ' had demonstrated a need f o r the proposed ra te s except as to those on h ou rly rated moves. As to those r a t e s , the Commission a u th orize d a le s s e r amount ranging from 5.7 p ercent to 6.6 percent above present ra te s . The a d d itio n a l revenue a u th o rize d by a p p lic a n t c a r r ie r s amounted to le s s than a 2 percent impact on t h e ir combined systemwide revenues.

BUS FARES AMD CHARGES

By the end o f 1978, there were 51 c e r t i f i e d c a r r ie r s op e ra tin g under the j u r is d ic t io n o f the Commission p ro vidin g Passenger, Package Express and C harter S e rv ice between s u b s t a n t ia lly a l l areas o f the S ta te . There were a few c a n c e lla tio n s and changes o f names and addresses along w ith new a p p lic a tio n s f o r a u th o r ity to tra n s p o rt passengers f o r h ir e , which were granted. The areas o f the S ta te , now being se rve d , remain s u b s t a n t ia lly the same.

Durinq the y e a r , 6 c a r r ie r s made tw enty-four (24) requests to make adjustments in schedules throughout t h e ir system. Of the to ta l number f i l e d , 19 were approved and 5 were p a r t i a l l y approved, the schedules suspended were approved l a t e r fo llo w in g subm ission o f a d d itio n a l in form atio n and j u s t i f i c a t i o n from the c a r r ie r s . The m a jo rity o f the a p p lic a tio n s f i l e d f o r change in schedules throughout the system, in tr a s ta te in G eorgia, were handled by the Commission w ithout the n e c e s s ity o f a h earin g.

A la ra e c a r r ie r was in vo lve d in a lo c k -o u t a f f e c t in g some 22 c i t i e s f o r a s h o rt d u ra tio n o f tim e. Seven o f these c i t i e s cou ld be and were served by another c a r r ie r during t h is work stoppage. A number o f com plaints a g a in s t passenger s e rv ic e were f i l e d during the y e a r and fo llo w in g an in v e s t ig a t io n , a l l com plaints were re so lv e d to the s a t is f a c t io n o f a i l concerned.

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There were 3 hearings held during the ye a r concerning ra te s and charges* the re d u ction o f s e rv ic e and a request from the N ational Bus T r a f f i c A s s o c ia tio n f o r an in crea se in Georgia in t r a s t a t e L o c a l, I n te rlin e * I n t e r c it y Passenger Fares and Package Express Rates, Fo llo w in g the hearings* one was denied* the o th e r hearing concerning re d u ctio n in s e r v ic e was approved and the t h ir d hearing concerning an in cre a s e in passenger fa re s and express charges was not decided during th y e a r but would be decided a t the beginning o f 197S.
RAILROAD FREIGHT RATFS AMD CHARGES
During 19789 th ere were two general revenue proceedings in v o lv in g r a ilr o a d f r e ig h t ra te s a u th o rize d by the In te rs ta te Commerce Commission and granted by t h is C o iw is sio n . Ex P arte 343 General Revenue Increase o f f iv e (5) percent on a l l commodities was granted by the Commission on January 5 9 1973 a f t e r hearing on December 15, 1977.
The Georgia r a ilr o a d s f i l e d a p p lic a tio n to reduce lo a d in g time from 43 hours to 24 hours on f r e ig h t ca rs as published in Eastern R a ilro a d A s s o c ia tio n T a r i f f 4-K. P ro te sts were re c e iv e d , hearing was h eld on January 12, 1978 and decided by the C o m is s io n o rd e r o f February 7 , 1978 granting the ra ilro a d a u th o rity to reduce the fre e time fo r lo ading cars from 43 hours to 24 hours on a l l com m odities, "except f e r t i l i z e r , pulpwood, woodchips, in d u s t r ia l sand, lig h tw e ig h t aggregates, scrap iro n and iro n and s te e l a r t ic le s " th a t w il l r e t a in 48 hours lo ad in g tim e.
The Georgia r a ilr o a d s f i l e d a p p lic a tio n to in cre a se the ra te s on Limestone between p o in ts in Georgia as published in Supplements 127 and 128 to SFTB T a r i f f $-2011-0. P ro te s ts were f i l e d with the Commission and the supplements were suspended and the m atter s e t f o r h ea rin g . The m atter was heard by the Commission on February 16, 1978. The a p p lic a tio n was denied on February 27, 1978,
On June 14, 1978, the Georgia r a ilr o a d s f i l e d Ex Parte 349 Increase in ra te s and charges seeking a two (2) percent in c re a s e . The Commission granted the r a i l a p p lic a tio n as no p ro te s ts were f i l e d . T h is t a r i f f became e f f e c t iv e on J u ly 18, 1978.
The Southern Railway by i t s a tto rn e y f i l e d a p p lic a tio n to abandon 14.1 m ile s o f tra ck from M o u ltrie to Pavo, Georgia on December 28, 1978. The Commission w il l f i l e a p ro te s t req uestin g hearing be held on t h is m atter. (ICC Docket No. AS-25, Sub Mo. 1 4 -F).
APPLICATIONS AMD SUPPLEMENTS FILED
The Commission re ce ive d 183 a p p lic a tio n s f o r t a r i f f changes f o r the yea r 1978 with 3110 supplements to be f i l e d in the Commission's o f f i c i a l t a r i f f f i l e s .
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RAILROAD ICC PROCEEDINGS
1. ICC Docket A0-2G (Sub. Mo. 1 4 -F ), Ceornia Northern Railway Company
Abandonment o f r a ilr o a d tra c k between flou!t r i e and Pavo9 G eorn ia. F ile d December 23 9 1978 pendino in v e s t ig a t ion by ICC. 2. ICC Docket 'o. 3C914, Georgia I n tra s ta te Car Demurrage Rules free time. tiearinn: Hovember 2B 19?8 ICC I n i t i a l D e cis io n : Pendine
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MOTOR CARRIER CERTIFICATION AND ENFORCEMENT DIVISION
Two important functions of the Public Service Commission are to ensure to the public a viable transportation system to satisfy their needs as shippers and receivers of freight, and to maintain a healthy bus transportation system for the convenience of the traveling public; also, to provide protection to the public by requiring that all "for-hire" motor carriers under the Commission's jurisdiction retain on file with the Commission evidence of bodily injury and property damage and/or cargo insurance coverage in at least the minimum requirements of the Commission ($100,000/$300,000/$50,000), and to maintain their vehicles in accordance with the Commission's vehicle safety standards.
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 nfor-hire" motor transportation. Page 14 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 enforcement officers.
All applications for certificates are handled by the Certification Section of the Division whose responsibility it is to insure that applica tions 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 with the Commission, the Certificate is issued, citing the authority granted which becomes the official Order of the Commission.
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The Comission*s enforcement officers are assigned specific territories in the state ranging from six counties (Atlanta area) to as many as nineteen counties in the southwest section of the state. They make detailed inspections of the general operations of motor transportation companies under the Commission*s jurisdiction to determine if they are performing operations within the scope of authority granted hy 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 arid offering advice to the carriers 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, these officers perform other specifically designated assignments related to the functions of the Public Service Commission.
During 1978, 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 enforcement officers operate continuously in their assigned territories and continue vigorously to ferret out and eliminate illegal transportation operations. The nature of the illegal operator precludes the establishment of permanent inspection points since Georgia*s maze of highways enables the illegal operator to easily circumvent any permanently established check point. Our officers 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 public depends to ship' or receive their wares. The Commission's enforcement officers are highly trained in detecting the illegal operator and filtering through the quagmire of fictitious leases, freight bills, logs, etc. which usually accompany such operations. During 1978, the Commission's enforcement section was responsible for 1,136 arrests made throughout the state stemming solely from intrastate and interstate ,!for-hireM operations without proper authority from either the Georgia Public Service Commission or the Interstate Commerce Commission. These cases resulted in bonds totaling $218,200 being posted in the counties where arrests were made. In addition, 320 warnings were issued to carriers oprating illegally in Georgia.
The Commission, who helped pioneer the development of the Uniform Registration 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 jurisdiction 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 (^9 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.
- 12-

The Certification and Enforcement Division continued to function under the cooperative agreement between the Public Service Commission and the Interstate Commerce Commission in a combined effort to eliminate illegal transportation practices of certain carriers and shippers*
During 1978 our enforcement officers continued 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 officers 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 officer 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. These officers also are charged with the responsibility of contacting shippers throughout the state to determine the level of their trucking service and to assist them wherever possible. Reports of unsatisfactory service are made to the Certification Division where contacts with the carrier are conducted toward remedj^ing 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 of 13,000), was responsible for processing 2,825 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 14 of this report.
During 1978 the fifteen Commission enforcement officers performed thousands of vehicle inspections for operating authority and proper vehicle registration and identification, resulting in detection of 2,930 violations and collection of $3^,025 in vehicle registration fees where vehicles had not been properly registered with the Commission by the carriers. They also performed 1,176 rate checks of intrastate ''for-hire" carriers to ensure that the certificated carriers were adhering to the rates and charges published in their tariffs lawfully on file with the Commission and, in addition, performed 3,27^ other miscellaneous functions in the pursuit of the Commissions business, including personal contacts, special investigations, vehicle observations reports, etcetera.
13

TRANSPORTATION CERTIFICATION AND ENFORCEMENT DIVISION

During the year 1978, the Commission conducted four hundred and fifty-fivq 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 and petitions have been disposed of. All matters docketed for public hearing are heard by the entire Commission in open session, a majority of the Commission constituting a quorum,

MOTOR CARRIER CERTIFICATE AND VEHICLE REGISTRATION

The Commission is charged with the responsibility of collecting and accounting for motor carrier certificate, permit and vehicle registration fees. The total certificate, permit and vehicle registration fees collected and remitted to the Fiscal Division, Department of Administrative Services, during the year 197o are

as follows :

January 1, 1978 to January 1, 1979

Certificate Fees at $35*00 each (170 - $5>950) and certificate transfer fees at $7*50 each (100 - $750)

6 ,7 0 0 .0 0

Registration Permit fees at $25*00 each (2697 - $67,^25)
and amendment fees at $5*00 each (128 - $6^0)

6 8 ,0 65.00

Regular License fees at $5*00 each (l^Hl9 - $72,095) and penalty license fees at $25*00 each (263 - $6,575)

78,670.00

Regular Identification Stamp fees at $5*00 each (257,9^8 - $1*289,7^0)

Regular Multiple Registration Stamp fees at $1.00 each

(32,U60 - $32,U60) and Penalty Stamp fees at $25*00 each (1098 - $27 ,^50)

$1 , 3^9 650*00

$1,503,085.00

-14-

1978 COMMISSION ACTIONS

During the year 1978 the following Administrative Session decisions were made by the Commission:

Motor Carrier Certificate applications:

Approved...........*...................

170

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

6

Withdrawn.

...... .

7

Dismissed ........ ........................... .... 0

Total

18*+

Certificate transfer applications:

Approved...............................

100

Withdrawn.... ...............

1

Dismissed.... ......................

0

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

2

Total

103

Certificate amendment applications:

Approved.............

99

Withdrawn......

2

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

6

Dismissed............

0

Total

107

Certificate control through transfer of capital stock..................................... 9

Total

9

Motor Carrier Emergency Permits.................... 3** Total

Rules Nisi issued (other than for insurance)...... 80 Rules Nisi dismissed (other than insurance)........ 37
Total

Certificates cancelled............. .. .......... . 79 Certificates suspended.... ........................ **51 Certificates reinstated.... ........................ 229
Total

Registration Permits Issued...... ......

1*797

Registration Permits amended................

783

Registration Permits Cancelled (Undetermined)...... .

Total

3b
117 759 5,580

-15-

UmiTIES engineering division

The ^following summarizes the 1978 activities of the Utilities

Engineering Division' of the Commission and concerns the Quality of service

regulation of telephone, electric, gas, and radio common carrier utilities

in Georgia.

. .,

TELEPHONE UTILITIES

During 1978 the Telephone Utilities Engineering Section of the

Georgia Public Service Commission issued the following Orders after formal

proceedings:

... ...... .

DECISIONS AND ORDERS

Non Docket January 18, 1978
Docket No. 3050-U January 18, 1978

Petition of Whigham, Grady County, Citizens for Extended Area Telephone Service between ''higham, Cairo and Calvery.-Reno Exchanges.
Application of Standard Telephone Company for authority to make certain General Subscriber Services Tariff Revisions.

Docket No. 2998-U First Supplemental Order February 7, 1978

Petition for Reconsideration of the Application of Planters Rural Telephone Cooperative, Inc. for authority to make certain General Exchange Tariff Revisions.

Docket No. 3058-U April 4, 1978
Docket No. 3066-U April 18, 1978
Docket No. 3069-U Nay 16, 1978

Application of Fairmount Telephone Com pany, Inc. for Authority to make certain General Subscriber Services Tariff Re visions. .
Application of Blue Ridge Telephone Com pany for authority to make certain General Subscriber Services Tariff Revisions.
Application of Waverly Hall Telephone Com pany, Inc. for authority to make certain General Subscriber Services Tariff Revisions.

Non-Docket August 9, 1978 Certificate No. 537

Application of General Telephone Company of the Southeast for an Amendmnt to its Cer
tificate of Public Convenience Sc Necessity
No. 537, Nunc Pro Tunc.

Non-Docket August 9, 1978 Certificate No. 553

Application of General Telephone Company of the Southeast for an Amendment to its Cer
tificate of Public Convenience S: Necessity
No. 553, Nunc Pro Tunc.

- 16-

Docket No. 3080-U September 19, 1978

Application of Progressive Rural Telephone Co-op., Inc. for authority to make Cenerai Subscriber Services Tariff Revisions.

Docket No. 3091-U October 17, 1978
Docket No. 3100-U December 11, 1978
'

Application of Ellijay Telephone Company for authority to make certain General Sub scriber Services Tariff Revisions.
It, Application of Camden Telephone Telegraph
Company, Inc. for authority to make certain General Subscriber Services Tariff Revisions.

Docket No. 3115-U December 19, 1978

Application of Georgia Telephone Corp. for authority to make certain General Subscriber Services Tariff Revisions.

The staff handled approximately 317 written complaints and 313 tele phoned complaints during the year. There were 50 field trips made in connection with various complaints or to perform engineering audits. Members of the Tele phone Engineering Staff conducted 8 depreciation studies and completed a detailed report on telephone answering services.

This section received 10 applications for licenses to use telephone service observing equipment; five of these applications were approved and licenses issued, three were denied and two were dismissed. There were 16 license cancellation orders issued. The staff performed 54- office inspections of telephone service observing equipment.

Some 300 revised certificated area maps and general tariff revisions were received and processed by this section. Included in this number were completely revised tariffs for each of the 39 independent telephone companies under the jurisdiction of this Commission. These revisions were filed in accor dance with a directive issued by the Commission after several lengthy meetings, with representatives of these companies. This in effect adopted a standard format for all telephone utilities to follow in revising their tariffs,

OTTTHERN BELL TELEPHONE & TELEGRAPH C0T1PANY

Total telephones in service for Southern Bell in Georgia at the end of 1978 were 3*336,860. This is an increase during the year of 146,84-6, which
is about 10.2% lower than the increase during 1977, The inward movement during
1978 decreased by .8$ from 1977 to 973*319* while outward movement increased
by 1.2% over 1977 to 827,193.

The percentage of households with service in the area served by Sou thern Bell now stands at 91.5$. Of those households with telephone service 2.8$ had second residence lines at the end of 1978.

During 1978 Bell customers direct-dialed 90.5$ of their long distance calls, an increase of 2.4$ over 1977. On 9.5$ of the long distance calls, cus tomers 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 MATS-using subscribers directly dialed 99.2$ of their calls, which is a .3$ increase from 1977. Bell

-17-

is continuing to install the computerized TSPS operation positions and in crease the number, of exchanges having access to TSPS operations. During 1978 Bell toll centers at Albany, Brunswick, Hazelhurst and Rome were con verted to TSPS.

New construction expenditures in Georgia for 1978 rose 15.9 over
1977 to a total of $412.5 million.

The improvement in service to Bell customers continues, and, as of
the end of 1978,.96.2% of the residential users had individual line service.
Only .5$ had 4-party service, which amounts to 6,532 subscribers and repre sents a reduction of 939 during 1978. Bell is also continuing to expand the number of central offices with electronic switching and put into service, by either adding new or converting existing offices, 18 electronic units during
1978. There are now 38 wire centers .with partial or full ESS call-processing
ability. This allows Bell to provide on a wider scale the new services and features needed to meet customer desires for new and.expanded service. During 1978, Bell filed 41 tariff filings involving 403 pages of new or changed ser vice offerings.

Southern Bell had 19,233 employees involved in the Georgia operations at the end of 1978, an increase of 1,226 from the end of 1977. The total pay ments to Georgia employees in 1978 amounted to $324,086,859. During 1978, Sou thern Bell in Georgia paid slightly more than $51,936,000 in local and state taxes. In addition, Georgia telephone customers paid, on their telephone ser vice, over $11,645,000 in state sales taxes, over $1,642,000 in T'CARTA sales taxes, and payments for local option taxes increased to more than $1,086,000.

GENERAL TELEPHONE C0T|PANY OF THE S0UTEEAST

During 1978, General Telephone Company of the Southeast, in Georgia, gained 13,768 telephones, bringing the total served to 229,678. Employees increased by 61, from 1083 to 1144. Employees per 1000 telephones, however, was reduced from 5.0 to 4.98.

The construction program exceeded 19 million dollars, broken down as follows:

Land and Buildings Central Office Equipment Station Equipment PBX Equipment Outside Plant General Equipment

$ 384,000 5.610.000 5.765.000 389.000 6.368.000 969.000
$19,435,000

Touch calling capability at year end had been provided to all but three of the company's 17 North Georgia exchanges and 11 of the 50 South Georgia exchanges. TSPS type toll service was expanded to include .18 of the 67 exchanges. Phone Marts by year end had been expanded to 7 stores serving 23 of the 67 exchanges, with 6 more scheduled in 1979 to serve the others. During the past year, General in Georgia paid $2,772,120 in local and state taxes.

-18-

ATLANTA GAS LIGHT COMPANY
Atlanta Gas Light Company (AGL) served 764,273 customers with natural gas service in 196 municipalities located in 79 counties in Georgia as of December 31? 1976. This was an increase of 23,962 over the previous December 31? 1977? wh^ch included 22?703 residential, 1,267 commercial? and 12 industrial customers.
AGL has long-term contracts with its three natural gas pipeline suppliers for maximum deliveries aggregating 657,160 thousand cubic feet (Hcf)., These contracts are for firm service from Southern Natural Gas Company (Southern) of 740,060 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 for a daily rate of up to 163,645 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 is complete and the additional liquefied natural gas (LNG) storage tank, in Jones County, east of N'lacon, is operating. 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-1Tilledgeville 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 approximately 100,000 Mcf per day peak-shaving capacity to the company's system. Another liquefied natural gas facility is located near Atlanta. This is a gas lique faction plant and storage tanks with a combined storage capacity equivalent to. .2,430,202 Mcf, providing approximately 200,000 Mcf per day of peak-shaving capacity. The combined storage capacity of the Atlanta and Macon facilities is 3,932,165 Mcf with a combined sendout rate of 300,000 Mcf per day.
AGL also maintains nine peak-shaving plants which supply propaneair-gas to its system to supplement the gas supply in very cold weather or in emergencies. Storage capacity of these plants is 14,746,625 gallons of liquid propane. The rated daily gas-making capacity based on a twenty-hour day totals 205,640 Mcf of natural gas equivalent, and the number of days during which full capacity can be maintained without replacement of liquid propane averages six days.
Over the past five fiscal years, Southern, along with its subsidiary, South Georgia; Natural Gas, have provided 69.31 of AGL's pipeline supply; Trans co provided 10.7$.
To supplement its domestic supply, Southern has contracted to pur chase 350,000 Mcf per day of LNG from certain foreign sources. Deliveries of the LNG at Elba Island near Savannah began in the summer of 1976 and rep resent a significant added volume on Southern's system.
Southern has also obtained FERC approval and is proceeding with their plans for a substantial increase in underground storage capabilities and re ports that it has temporary storage service under contract until this new under ground project is completed. Southern has made available a storage program to
19-

its^customers, and AGL has agreed to contract for approximately 10 billion cubic feet of such storage.

Southern's domestic gas acquisition efforts continue to be active. As of December 31, 1978, it had outstanding approximately $157,000,000 in advance payments to producers, giving it first call on gas discovered and produced from certain specified properties covered by these advance payments.

Transco, which provides gas to 69 distribution companies in the Southeast and East Coast of the U.S., has in the past several years been able to improve their gas supply picture. During 1978 annual gas sales volumes of Transco increased for the first time since 1970,

Transco E^qjloration continued to expand'its activities by -partici pating in^the drilling of 232 wells in 1978, compared with 183 in 1977. It holds an interest in the first discovery of natural gas off the Coast of New Jersey.

At the March 1978 federal lease salej a group led by Transco Exploration' acquired five blocks in the Southeast Georgia Embayment Area off the' Cohst of Georgia. Exploratory drilling on the first of these tracts is scheduled to begin in the second half of 1979. The first oil drilling off the Coast of Georgia began May 29, 1979 when Tenneco commenced drilling some 70 miles east of Brunswick.

GAS LIGHT COMPANY OF COLtETOS

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 > 1978, this company was serving a total of 46,580 customers of which 45,157 were classified residential, 3#342 com mercial, 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 T% f of gas to Columbus. Like most other pipeline suppliers,' Southern Natural has been ordered by 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 ninecategory plan, which was in effect during the year on Southern Natural's pipeline system, residential and small commercial users and public insti tutions have the highest priority, and customers with large boiler fuel re quirements where other fuels can be substituted have the lowest.

Although the weather during the winter;heating season of 1977-78 was

approximately 10 percent colder than normal, the gas supply received from the

pipeline, together with the Company's supplemental supply from its LNG facility,

was adequate to furnish the requirements of all high priority customers. The

quantity of gas available to lower priority customers was greater than in the

previous year when the weather was much colder and the pipeline supply more

restricted.

'

- 20-

Tlie company *s IPO and LNG facilities are designed to supplement the supply of pipeline gas on days of maximum customer requirements during the heat in? season. The LPG facility has a maximum capacity of approximately 14, 000 -.*cf per day for five days and the LEG facility approximately 30,000 Mcf per day for sixteen days.
Southern Natural Pas Companv has informed the Company that it Is optimistic concerning its ability to serve all high priority requirements of its customers over the next few years. In July of 1970 Southern Natural began receiving LNG from Algeria through its terminal facilities at riba Island near Savannah, Georgia. vhen these imports of Lrio reach maximum, quantity (expected during 1979), they will comprise approximately 20 percent of Southern Natural!s total annual gas supply. Southern Natural is also in process of substantially increasing its ?as storage facilities to enable it to furnish its customers with a better balanced supply of gas on a year around basis.
The improved pipeline supply together with the Company's oT;ni LMP and propane storage facilities indicate that an adequate supply of gas should be available to furnish the high priority requirements of the Company's cus tomers for the foreseeable future.
In August and October, 1978, the Company received refunds from Southern Natural amounting.to 81,291,638. These amounts represented the Company's portion of refunds received by Southern Natural from its gas suppliers in accordance with orders of the Federal Energy Regulatory Com mission. In a manner approved by the Georgia Public Service Commission, the Company passed these refunds on to its customers by credits on gas service bills during the months of October, November, and December, 1978.
CHATTANOOGA CAS COJfANY
Chattanooga Gas Company serves a limited area within the State of Georgia consisting of most of the area within the city limits of Bossville, Georgia, and ^ort Oglethorpe, Georgia, plus a corridor along; Highway 27 extending between thes.e two towns. The principal service area of Chatta nooga Gas is 'Metropolitan Chattanooga, Tennessee, a ma.ior portion of the surrounding Hamilton County, Tennessee, and also Cleveland, Tennessee, located in Bradley County, approximately 30 miles northeast of Chattanooga. Chattanooga Gas serves approximately 25,855 customers in Tennessee and 573 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 'rcf. .Each of the suppliers has in effect tariff pro visions reducing actual deliveries to Chattanooga below the amounts of their currently effective daily contract demand.
Chattanooga's operating revenues for 1078 were 850,365,781, an in
crease of 910,093,371 over 1977 revenues amounting to 830,372,410. The cost
of natural gas delivered for 1978 was 839,14,996, an increase o f .$9,639,063 over 1977 gas cost totaling $30,275,933. Volumes of gas sold, 25,474,563 rcf
21-

in 1978 reflected an increase of 1,397,719 Hcf, compared to 24,076,844 TTcf sold in 1977. Revenues ,and volumes of gas.sold within the State of .-Georgia
represent approximately % of Chattanooga?s annual sales.
Colder than normal weather and increased was allocations from pipe line suppliers enabled Chattanooga to achieve a 6# increase in volume of pas sold during 1976 over the previous year. The most significant increase in operating expenses was cost of pas. The average cost per unit purchased in creased from $1.23 in 1977 to li'1.52 for 1976. The higher cost was recovered through the purchased gas adjustment provision of the Company's rate tariff, and accounted for the Sajoir portion of the increase in revenues for 1978. M o t h e r factor contributing approximated 3$ of total operating revenues was the full year's effect of the general rate increase placed into effect in Tennessee on December 7, 1977 and in Georgia on Julv 1, 1978.
TPIITED CITIES GASjXTTA^Y
United Cities Gas Company (United Cities) is a natural gas dis tribution company operating in six states and Purchases its natural pas supply from six interstate pipelines and several small producers. In Georgia, United Cities serves the cities of Gainesville and Oalwood and environs of Hall County. At the end of 1978, they served 7,685 customers in Georgia, as compared to 7,604 at the end of 1977. Total revenues were 03,511,900, as compared to 02,641,900 the prior vear. Of the 7,685 cus tomers, 6,215 are residential, 953 are commercial, 44 are industrial, and 473 are public authority.
United Cities Purchases its sole supply from Transcontinental Gas Pipe Line Corporation (Transco). In the event curtailment allocations do not provide sufficient volumes to meet the high priority marketplace, United Cities purchases supplemental supplies under provisions provided through Federal regulations for meeting additional demand. The Transco gas supply consists of a 8,100 Mcf daily firm contract and 4,751 "7cf Winter Storage Service. The Transco supply, which has been under curtailment for several years, continues to improve, and projections for our service area show less vulnerability to curtailment than in the past. Regulations in the Natural Gas Policy Act of 1978 male purchase of additional supplemental supplies more readily available. The Company projects sufficient supplies both on a peal day and annual basis through all sources for the foreseeable future for its high priority market.
RADIO OTIjLITIES
During 1978 Radio Utilities Engineering moved another step closer toward total certification of all geographical areas of Georgia for the provision of one-way signalling and two-way mobile radio communications services.
Previously uncertificated territorv was granted by the Commission to applicants in Dodlet numbers 3071-U and 3104-U. Three radio utility systems have yet to modify their territories by establishing contiguous boundaries with their neighbor utilities through formal requests to the Commission. These
22-

three systems are still serving territories based upon their signal strength patterns. One of these three has shown recent interest in changing his territory* and an application is anticipated soon.

There remain four primary areas in the state which are yet to be certificated for radio utility service. Interest has been shown in at least two of these areas and applications are anticipated in the near future.

Engineering audits of radio utility systems were initiated during 1978 with the initial thrust of securing good definitions and documentation of radio utility plant in service at original cost. The objective of this effort is to secure formal depreciation schedules from all radio utility systems in the future. Fueh work remains to be done in this area from the evidence gained during 1978.

Public hearings were held during the year on the following cases I

3/29/78

D/3070-U D/3071-U

Savannah Radio Nobile Telephone* Inc. Radiocall* Inc. - to amend service area.

5/24/78

D/3084-

Nobile Tel & Pager* Inc. for acquisition.

6/14/78

D/3085-U

Advanced Telcom, Inc.* to amend Certificate.

9/13/78

D/2964-U

Covington Comm.* Inc.* for rehearing.

9/27/78

D/31Q4-U

Quiciccali* Inc. - Application for Certificate.

Formal Commission orders were issued during the year on the follow ing cases0

P/2964- Cert. P/2964-U Reheard D/2978-U D/2979-U

D/2980-TJ D/3004- Cert. D/3004-U Reheard D/3034-U

D/3035NT D/305MJ P/3071-T
D/3034-U D/3085-1T

Over 700 documented telephone inquiries or responses to inquiries were processed during the year from the legal profession, utilities and the public at large* regarding the status of cases* Commission policies and pro cedures* and other regulatory matters.

-23

UTILITIES

FINANCIAL ANALYSIS

DIVISION

INTRODUCTION

The function of the Utilities Financial Analysis 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 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 ex hibits and large volumes of testimony must be analyzed as well as crossexamining 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 addition, this section audits each independent telephone company prior to hearings on rate cases (reactive audits) and on a regular basis,as time and staff allow (routine audits).

The 1977 Legislature appropriated funds for a Prime Energy Audit Staff (PEAS) for the Public Service Commission. The purpose of this section is to have a continuous and on-going audit of fuel adjustment and purchased gas adjustment clauses of electric and gas companies, respectively.

We have been able to establish an audit program and routine which verifies the correctness of the fuel adjustments and purchased gas adjust ments that are being collected from the utility consumers of the State of Georgia for those utility companies subject to rate regulation by this Commission.

ACTIVITIES

PRIME ENERGY AUDIT STAFF (PEAS) - During 1978, the PEAS conducted the
following auditsi

Georgia Polder Company Savannah Electric &
Power Company
Atlanta Gas Light Co
Gas Company of Colum bus
United Cities Gas Co. (Nashville,Tenn.)
City of Claxton Gas Co.

On-going, daily

Fuel Adjustment

January 9 thru 13 Fuel Adj ustment

June 12 thru 16

Fuel Adjustment

September 25

thru 27

Fuel Adjustment

December 2 thru 8 Fuel Adjustment

March 16, 17

Purchased Gas Adjustment

March 31

PGA

November 13 thru 15 PGA

June 5, 6

PGA

November 13 thru 16 PGA

June 19 thru 23

PGA

October 25

Gas refund from Transco

-24-

All companies' audits, except Georgia Power Company, consisted of a 109% audit of the fuel and/or purchased gas which went into the computation of the rider., Due to the tremendous size of Georgia Power Company, these audits were done on the basis of a limited audit of all plants with a de tailed audit of selected sample plants. These audits are listed below and identified by sample plant!

Georgia Power Company fuel adjustment - FA-2 - test Plant Mitchell

Test Plant Bowen

Test Plant Hammond

Test Plant Atkinson

Test Plant. McManus

Test Plant Yates

Test Plant Arkwright

Test Plant Vogtle

Plant Scherer- inspection of construction site

Test Plant Hammond (second visit)

Test Plant Box^en (second visit)

Wallace Dam -- inspection of construction site

Test Plant Harley Branch

Test Plant Wansley

Test Plant Mitchell (second visit)

Test Plant Hatch

-

Worth Georgia Hydro Plant - inspection tour

Southern Company Service, Birmingham, Alabama - preliminary

examination load center

In addition to the above routine audits, the PEAS conducted two special

audits. A limited but extensive audit of Southern Electric Generating Com

pany, Birmingham, Alabama, lias conducted to determine if this jointly-ox/ned

plant (Alabama Pox^er Company/Georgia Pox^er Company) was being operated to

the benefit of the Georgia consumers. We extensively checked the operating

agreements and billings of SEGCO to Georgia Power Company; checked Alabama's

billings to SEGCO;}investigated the sale and subsequent operation of SEGCO

Mine Wo. 1 to and by Alabama By Products Company, checked selected plant

records to verify for proper retirements and recording of adjustments; and

checked allocation procedures used in operating and constructing Unit Wo. 5

(owned solely by Alabama Power Company).

'

The PEAS have begun an audit of the Pride Transloader, Pride, Alabama, a facility to transfer coal from barges to rail cars xdiile mixing lox? sulphur and high sulphur coal in the process. We made an extensive check of the plant records; conducted an on-site audit of the operations; and are cur rently engaged in a study to determine the economic feasibility of the operation.

In addition to the above audits, the PEAS prepared direct testimony and assisted in cross-examination of x?itnesses in fuel adjustment hearings (Georgia Power Company, Docket Ho. 3112-U) reported in another section of this division's report. The PEAS was the only group which presented the Commission with an alternative to the fuel adjustment for Georgia Power Company in the context of direct evidence subject to cross-examination.

25-

GENERAL AUDIT STAFF - In addition to conducting 19 reactive and routine audits of the independent telephone companies of the State of Georgia, the General Audit Staff presented evidence in the following docketed rate cases;

Fairmount Telephone Company Blue Ridge Telephone Company Waverly Hall Telephone Company Progressive Rural Telephone
Cooperative, Inc. Camden Telephone Company Georgia Telephone Company Bulloch Telephone Cooperative Nelson Ball Ground Telephone Co. Darien Telephone Company

Docket 3056-U Docket 3064-U Docket 3067-U
Docket 3079-U Docket 3099-U Docket 3113-U Docket 3125-U Docket 3117-U Docket 3121-TJ

The testimony was the only testimony and exhibits presented in these cases giving detailed statistical and financial data which was subject to cross-examination and entered into direct evidence. These audits allowed the Commission to have an independent source of information which previously had not existed.

In December, the General Audit staff began an audit of Southern Bell Telephone and Telegraph Company5s customer deposits. To date the audit has concentrated primarily on reviewing the independent CPA's working papers and details of Southern Bell's customer deposit procedure as directed by the Commission.

When these phases are. completed, the General Audit Staff plans to audit other areas on a selected basis similar to what the PEAS have heen able to do with Georgia Power Company over the last year and a half.

The Commission issued a total of 54 orders for this division during the year 1978 involving utility companies. The orders entailed certificates, rate adjustments, issuance of securities relating to capital subject to the jurisdiction of this Commission, mergers and acquisitions.

At the close of the calendar year, 1978,there were under the juris diction of this Commission, the following number of public utilities;

Electric Natural Gas ^Telephone Radio Common Carriers Telegraph

2 4 41** 39 2

*Includes four cooperatives **This> amount decreased by two
from 1977 due to merger of three independents into one company.
-26-

RATE ADJUSTMENT PROCEEDINGS

DOCKET NO M O U N T DATE FILED REQUESTED

3049-U 9-13-77

$762s428

2997-U 2-22-77

$96,865

3056-U 11-18-77

$61,740

3Q64-U 1-20-78

$153,184

3067-U 2-7-78
3082-U 4-5-78

Approx. $9,000
$40,750

3077-U 3-1-78

$8QSQ00

SUBJECT

DATE DISPOSITION DECIDED

Standard Telephone Company made application to make various adjustments in its local exchange rates.

Granted $363,150

1-18-73

FIRST SUPPLEMENTAL ORDER Planters Rural Telephone Cooperative, Inc., made application for recon sideration of rate case denied in July, 1977. This case was reheard on November 9, 1977.

Granted $96,865

2-7-78

Fairmount Telephone Company Granted

made application for

$61,740

authority to make various

adjustments in its local ex

change rates.

4-4-78

Blue Ridge Telephone Company made application for authority to make various changes in its local service charges.

Granted $153,184

4-18-78

Waverly Hall Telephone Co. Inc., made application for authority to increase local service rates.

Granted Approx. $9,000

5-16-78

Chattanooga Gas Company made Granted application for authority $40,750 to increase rates for gas service for Georgia inter ruptible boiler fuel customers. No increase was requested for residential or small commercial customers.

6-6-78

Western Union Telegraph

Granted

Company made application for $80,000

authority to increase rates

for its TELEX and TWX services

in the State of Georgia.

7-5-78

-27-

RATE ADJUSTMENT PROCEEDINGS

DOCKET NO. DATE FILED

AMOUNT REQUESTED

SUBJECT

DATE DISPOSITION DECIDED

3077-U 7-21-78

FIRST AMENDED ORDER 'Western Union Telegraph Company - amendment of an ordering paragraph in above rate case

-----

8-9-78

3079-U 3-11-73

Progressive Rural Tlephone Cooperative, Inc., made an application for authority to make certain adjustments in local ex change service rates.

Authority Granted

9-19-78

3099-U 8-15-78
3113-U 9-12-78

$509,784 $43,332

Camden Telephone and Telegraph Company, Inc., made an application for authority to increase local exchange service rates.
Georgia Telephone Corp. made application for authority to increase the local service rates in Blakely exchange.

Granted $399,110
Granted $43,332

12-5-78 12-19-73

3117-U 9-25-78

$100,140

Nelson Ball Ground Telephone Company made application for authority to adjust local service rates,,

Granted $100,140

12-19-78

Docket No. 3112--U - Georgia Power Company Fuel Adjustment Clause - On September 6, 1978, under Docket 3105-U, the Commission issued an order abolishing the existing Fuel Adjustment Rider (FA-2), without a hearing. An order from Fulton County Superior Court (Judge Horace Ward) stated the Com mission could not abolish the FA-2 without a hearing.

This case was assigned a new docket number (3112-U)and in Administrative Session on September 19, 1978, the Commission voted to rescind its previous order and set same for public hearing beginning October 3, 1978, along with a hearing for Savannah Electric and Power Company, Docket 3111-U regarding the same matter. Hearings began October 3, 1976 and continued until October 6

Another question considered in this hearing was the Protective Order issued by the Commission on April 22, 1975, x^hich placed Georgia Power Company coal contracts under protective order. The Commission reversed the protec tive order and the coal contracts on file with the Commission became public record.
28-

RATE ADJUSTMENT PROCEEDINGS
Docket 3112-U continued, On December 6 S 1973hearings were concluded on these matters and the Commission took both Georgia Power Company (Docket 3112-U) and Savannah Electric and Power Company (Docket 3111-U) under advisement at that time. On November 7, 1978, the Commission issued orders abolishing the fuel adjustment rider of Georgia Power and Savannah Electric at the end of the billing cycle of December, 1978. The Commission, at tnat time, gave a workable alternative to FA2.
Georgia Power Company then filed a petition for reconsideration wuich the Commission voted to deny on December 5, 1979.
On December 7, 1979, Georgia Power Company filed a Petition for Judicial Review in Fulton County Superior Court, and the same is still under advisement. At the time of the writing of this report, the Commission order is under a Court-ordered stay.

DOCKET NO. DATE FILED 3063-IJ 12-21-77
3057-U 11-18-77

DOCKETED. FINANCIAL CASES

AMOUNT REQUESTED TO BORROW

SUBJECT

DATE DISPOSITION DECIDED

$ 8 ,000,000 BOND ISSUE

Savannah Electric & Power $8,000,000

1-18-78

Company made application

authorized

for authority to issue up and SEPCO was

to $8,000,000 of First

authorized to

Mortgage Bonds as col-

enter into In

lateral security for the stallment sales

installment purchase of

agreement with

pollution control equipment. Savannah Port

Authority -

competitive bidding

waived.

$1,134,000 from REA at 2% for 35 years

FIRST SUPPLEMENTAL ORDER Planters Rural Telephone Cooperative, Inc., made application for rehearing of their application to borrow $1,134,000 from REA.

$776,000

Fairmount Telephone Co. made application to borrow $776,000 from REA at 5% for 35 years.

Authorized $1,134,000

2-7-78

Authorized $776,000

4-4-78

-29-

DOCKET NO. DATE FILED 3074-U 3-3-78
3068-U 2-7-78 3072-U 2-28-78
3088- 5-19-78

DOCKETED FINANCIAL CASES

AMOUNT REQUESTED TO BORROW

SUBJECT

DATE DISPOSITION DECIDED

$200,000,000 Georgia Power Company

BOND ISSUE made application for

3,000,000 authority to issue and

Shares Class sell up to $200,000,000

A Preferred principal amount of

Stock

First Mortgage Bonds

and to issue and sell

up to 3,000,000

shares of Class A

Preferred Stock

Authority Granted

4-18-78

$513,000

Waverly Hall Telephone Company, Inc., made application for authority to borrow $513,000 from REA at 5% for 35 years.

Authority Granted $513,000

5-16-78

ACQUISITION

Public Service Telephone Company made application for authority to acquire all issued and outstanding shares of capital stock of The Utelwico, Inc.

Authority

6-6-78

Granted - Public

Service Tele-

phone Company

permitted to

make telephone

plant acquisi

tion adjustment

on books of

The Utelwico Inc.,

in approximate

amount of $221,000

to be amortized

at an estimated

rate of 5.5% per

year. Also an

amount of $4,606.54

per year be amortized

on Utelwico books

until extra-ordinary

retirement now boolcec

is fully amortized.

MERGER

Request for authority to merge Cairo Tele phone Company and Byron Telephone Co. into Commerce Telephone Co. to be renamed MidGeorgia Telephone Corp.

Authority Granted

7-18-76

-30-

DOCKET NO. DATE FILED 3Q92-U 6-21-78
3078-U 3-31-78
3109-U 9-15-78
3110-U 9-12-78 3118-U 9-29-78
3123-U 10-19-78

DOCKETED FINANCIAL CASES

AMOUNT REQUESTED TO BORROW

SUBJECT

ACQUISITION

Atlanta Gas Light Co. made application for authority to acquire the Natrual Gas Distribution System of the City of Temple, Georgia.

$1,200,000

Progressive Rural Telephone Cooperative Inc., made application for authority to borrow $1,200,000 from REA at 5%.

$80,000,000

Georgia Power Company made application for authority to borrow up to $80,000,000 from the Development Authorities of Bartoxtf and Putnam Counties to finance air and water pollution con trol facilities and, as security for such borrowing, issue and deliver up to $80,000,000 First Mortgage Bonds and issue up to $23,464,000 principal amount of First Mortgage Bonds for sinking fund purposes.

DISPOSITION
Authority Granted

DATE DECIDED
7-18-78

Authority Denied

9- 19-78

Authority Granted

10- 17-73

$590,000

Utelwico, Inc., made application to borrow $590,000 from REA at 5% per annum.

Authority Granted $590,000

$4,109,000

Plant Telephone & Power Company made application for authority to borrow $4,109,000 from REA at 5% per annum for 35 years.

Authority Granted $4,109,000

11-7-78 11-7-78

$25,000,000 BOND ISSUE

Savannah Electric & Power Company made application for authority to issue up to $25,000,000 principal amount of First Mortgage Bonds.

Authority Granted $25,000,000

11-7-78

-31-

DOCKET NO. DATE FILED 3123-U
3098-U 8-15-78
3114-U 9-12-73
3128-U 11-17-78

DOCKETED FINANCIAL CASES

AMOUNT REQUESTED TO BORROW 4--
$7,848,000
$300,000

SUBJECT
FIRST SUPPLEMENTAL ORDER Savannah Electric & Power Company (same as previously listed)
Camden Telephone & Tele graph Company, Inc., made application for authority to borrow $7,848,000 from REA at 5% for 35 years.
Georgia Telephone Corpora tion made application for authority to borrow $300,000 from StrombergCarIson Corporation for 15 years.

DISPOSITION
Change in ordering paragraph
Authority Granted $7,848,000
Authority Granted $300,000

DATE DECIDED 11- 21-78
12- 5-78
12-19-78

$7,950,000

Standard Telephone Company Authority made application for autho Granted rity to borrow $7,950,000 $7,950,000 from REA at 5% per annum for 35 years.

12-19-78

NON-DOCKETED FINANCIAL CASES

DATE FILED 12-12-77

AMOUNT REQUESTED

SUBJECT

$1,316,000 $ 563,000

*Coweta-Fayette EMC made application for approval of Notes of $1,316,000 to be executed in favor of REA and of $563,000 to be executed in favor of the National Rural Utilities Cooperative Finance Corporation (CFC) with a separate note to each of said lenders to be secured by a common mortgage

DATE DISPOSITION DECIDED

Authority Granted

1-4-78

*The reading on the applications for all EMCs will be just as stated above unless otherwise noted Only the amounts will be changed

-32-

DATE FILED 1-12-78
1-13-78 3-30-78 4-18-78 5-5-78 5-23-78 5-16-78 7-24-78

NON-DOCKETED FINANCIAL CASES

AMOUNT REQUESTED

SUBJECT

DATE DISPOSITION DECIDED

$5,300,000

North Georgia EMC made application to borrow up to $5s300,000 from the Columbia Bank for Cooperatives initially at the rate of 8,0% per annum.

Authority granted

2-7-78

$617,000 $154,000

Blue Ridge Mountain EMC made application to borrow $617,000 from REA and $154,000 from CFC.

Authority Granted

2-7-78

$809,000 $347,000

Coastal EMC made application to borrow $809,000 from REA and $347,000 from CFC,

Authority Granted

4-18-78

$716,000 $307,000

Okefenoke Rural EMC made application to borrow $716,000 from REA and $307,000 from CFC.

Authority Granted

5-2-78

$337,000 $145,000

Ocmulgee EMC made appli cation to borrow $337,000 from REA and $145,000 from CFC.

Authority Granted

5-16-78

$948,000 $406,000

Oconee EMC made application to borrow $948,000 from REA* and $406,000 from CFC.

Authority Granted

6-6-78

$1,303,000 $ 558,000

Hart County EMC made ap' plication to borrow $1,303,000 from REA and $558,000 from CFC.

Authority Granted

6-6-78

Common Stock Dividend

Coastal Utilities, Inc. made application for authority to pay a common stock dividend on 176,200 shares with a par value of $1,762,000 from its retained earnings.

Authority Granted

8-9-78

-33-

co
1 orH i
CO

A DATE FILED 8-10-78
8-7-78 S-7-78
11-29-78 11-29-78

NON-DOCKETED FINANCIAL CASES

AMOUNT REQUESTED

SUBJECT

$1,183,000 $ 507,000

Habersham EMC made ap plication to borrow $1,183,000 from REA and $507,000 from CFG.

$719,000 $308,000

Tri-State EMC made ap plication to borrow $719,000 from REA and $308,000 from CFC.

$1,867,000 $ 800,000

Jefferson EMC made application to borrow $1,867,000 from REA and $300,000 from CFC.

$2,034,000 $ 872,000

Snapping Shoals EMC made application to borrow $2,034,000 from REA and $872,000 from CFC.

$1,880,000 $ 806,000

Arnicalola EMC made application to borrow $1,880,000 from REA And $806,000 from CFC.

$2,083,000 $ 940,000

Troup County EMC made application to borrow $2,083,000 from REA and $940,000 from CFC.

DATE DISPOSITION DECIDED

Authority Granted

9-5-78

Authority Granted

9-5-78

Authority Granted

9-5-78

Authority Granted

9-19-78'

Authority Granted

12-5-78

Authority Granted

12-5-78

DOCKET NOo DATE FILED Hon-Docket 6-15-78
3124-U

MISCELLANEOUS DOCKETED AND NON-DOCKETED CASES

SUBJECT

DATE DISPOSITION DECIDED

Savannah Electric & Power Company
requested waiver of bidding requirements on negotiations with independent under writers for the issuance and sale of $25,000,000 First Mortgage Bonds.

Authority Granted

6-20-73

Rule Nisi issued by GPSC -Georgia Power Not

Company, RE; petiton by Consumers3

Applicable

Utility Counsel for stay of proposed sale

of portion of Plant Scherer

date issued 10-24-71

-34-

DOCKET NO. DATE FILED 312G-U 10-11-73
3124-U

MISCELLANEOUS DOCKETED AND NON-DCCKETED CASES

SUBJECT

DATE DISPOSITION DECIDED

Georgia Power Company made application Authority for authority to enter into 15-year lease Granted of 150 open top hopper cars with GATZ/G.P. Leasing Corporation and car service agree ment with General American Transportation Corporationo

11-7-78

Commission issued a letter-order stating N/A they would not rule on Consumers' Utility Counsel's Petition for a stay of proposed sal by Georgia Power Company of a portion of Plant Scherer until a later date.

12-6-78

35-

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