1998 Strategic Plan 1998 Strategic Plan of the Georgia Public Service Commission Page 1 of 3 Chairman Robert B. Baker, Jr. Vice Chairman Dave Baker Commissioner Bob Durden Commissioner Lauren "Bubba" McDonald Commissioner Stan Wise 47 Trinity Avenue SW Atlanta, Georgia 30334 404-656-4501 (phone) 404-656-2341 (fax) www.psc.state.ga.us http://www.psc.state.ga.us/pscinfo/old1998strategy.htm 5/13/2004 1998 Strategic Plan Executive Summary Overview Mission and Vision Statement Links to State Strategic Plan Major Strategic Directions and Associated Strategic Objectives Appendices Page 2 of 3 Acknowledgments This Strategic Plan is the culmination of many hours of work by numerous individuals. However, the five PSC Commissioners were the driving force behind this effort: Bobby Baker, Chairman Dave Baker, Vice Chairman Bob Durden, Commissioner Bubba McDonald, Commissioner Stan Wise, Commissioner The 1998 Strategic Planning Team consisted of staff from all PSC divisions who spent long hours developing a comprehensive plan with relevant and ambitious goals for the agency: Administrative Utilities http://www.psc.state.ga.us/pscinfo/old1998strategy.htm Transportation 5/13/2004 1998 Strategic Plan Division Deborah Flannagan Helen O'Leary Harriet Van Norte Jackie Thomas Phil McMullan Division Bev Knowles Ken Ellison Nancy Tyer Robert Vaughan Danny McGriff Bruce Morgan Shere Williams Don Craig David Burgess Lillian Johnson Division Al Hatcher Lucia Ramey Nora Blair Al Algier Maria Dorough Page 3 of 3 Many members of the PSC staff participate on the ongoing strategic planning teams and their work performed throughout the year laid the foundation for this annual plan. http://www.psc.state.ga.us/pscinfo/old1998strategy.htm 5/13/2004 Executive Summary Executive Summary Page 1 of 2 The mission of the Georgia Public Service Commission ("PSC" or "Commission") is to ensure that consumers receive the best possible value in telecommunications, electric and natural gas services and to improve transportation and pipeline safety. The PSC's vision is to: z Be an organization that is recognized for its leadership, responsiveness and competence. z Be an organization that provides consumer protection, safety, quality of service and choice in the telecommunications, energy and transportation markets by emphasizing education, technology, partnerships and continual improvement. z Be an organization that makes reasoned decisions that balance multiple interests and produce the best possible long-term results. Although the telecommunications, natural gas and electric industries are becoming more competitive, the PSC recognizes that its responsibility to ensure that utility services are reliable and reasonably priced has not changed. Georgians should continue to have access to high quality utility services whether those services are priced in a competitive market or through economic regulation. Public safety is a priority in both the State's Strategic Plan and in the PSC's Strategic Plan. The Commission enforces natural gas pipeline and commercial vehicle safety regulations. These programs are focused not only on detecting and correcting safety violations, but also on preventing pipeline incidents and commercial vehicle accidents. The PSC enhances public safety through an active inspection program, the enforcement of safety standards and through education of the industries and the public. The PSC continually looks for ways to improve the efficiency and effectiveness of agency operations. The Governor has challenged all state agencies at every level to look at their operations in new ways. The Commission has identified several key areas where it can strive to deliver services to citizens in a more effective manner. The PSC interacts with numerous individuals and organizations and demonstrates a commitment to these customers and stakeholders through consumer protection, public information and education. The Commission continues to expand its consumer protection function. The PSC has adopted strategies in this plan to increase and intensify agency-wide public information and education efforts and to work cooperatively with its network of internal and external partners in the public and private sectors. The PSC has greatly enhanced access to public records and improved the efficiency of agency operations http://www.psc.state.ga.us/pscinfo/ex_sum.htm 5/13/2004 Executive Summary Page 2 of 2 through the deployment of advanced computer technology. The Commission has installed a state of the art computer network to respond quickly to consumer questions and to facilitate decision-making. Public access to information will become more critical in the future. As regulated industries become competitive the PSC will be the principal source of objective information for the public concerning the performance of providers of utility services. The strategic directions of this plan relate to four areas: Economic Regulation; Pipeline and Transportation Safety; Internal Operations and Information Technology; and Consumer Protection and Public Information. These strategies are designed to make the PSC's vision a reality. The PSC strives to be a leader in both utility and transportation matters, to be responsive to customers and stakeholders, and to maintain and develop a technically competent staff. This plan provides for consumer protection, safety, quality of service and choice in the telecommunications, energy and transportation industries by emphasizing education, technology, partnerships and continual improvement. Strategies to improve our internal operations will ensure that the Commissioners have the data and technical support needed to make decisions that balance multiple interests and produce the best possible long term results. http://www.psc.state.ga.us/pscinfo/ex_sum.htm 5/13/2004 Overview Overview Page 1 of 3 Strategic planning is an ongoing process, not a one time event. Through this process the guiding members of an organization envision its future and develop the procedures and operations necessary to achieve that future. The strategic planning process provides an opportunity for the Commissioners to communicate their ideas, values and concerns to one another, to their staff and to their customers and stakeholders. The 1998 Georgia Public Service Commission Strategic Plan addresses the regulation of the telecommunications, electric, natural gas and transportation industries, as well as internal operations and external relations. 1998 Strategic Planning Process at the Georgia PSC The PSC's 1998 Strategic Plan is a continuation of last year's plan. In 1997 the Georgia Public Service Commission adopted its first Strategic Plan, after several years of planning activities. In 1993 SB 335 required that state agencies engage in strategic planning and produce a strategic plan consistent with the state's strategic plan. As part of this initiative to improve state government, top staff at the Commission attended training and strategic planning meetings. Strategic planning teams were instituted as an integral part of agency operations. In late 1996 and early 1997 a series of studies and planning sessions were conducted to develop the PSC's first strategic plan in July 1997. The 1997 planning process proved effective and, thus, was repeated to prepare the 1998 PSC Strategic Plan. strategic planning teams Based on the PSC's critical success factors, seven strategic planning teams were initially established. These have evolved into the eight teams currently in use. Most of these are integrated into the day-to-day work process at the Georgia PSC. Others are used as needed to address relevant concerns. The strategic planning teams focus on the following topics: z Telecommunications http://www.psc.state.ga.us/pscinfo/overview98.htm 5/13/2004 Overview z Natural Gas z Electric z Budgeting z MCSAP Planning z Administrative Standard Procedures z Information Technology z Communications Page 2 of 3 The Telecommunications, Natural Gas and Electric Teams meet each month to assess progress on all cases affecting the respective industries. The Utilities Division finds the team approach invaluable in ensuring that cases are processed effectively and that issues affecting multiple cases are identified and addressed consistently. The Budgeting Team coordinates the preparation of both the results-based budgeting measures and the annual zero-based budget. The Transportation Division established a Motor Carrier Safety Assistance Program (MCSAP) Planning Team to facilitate the preparation of the annual MCSAP grant for federal funding and to monitor progress made by the project teams responsible for carrying out the planned objectives. The Information Technology Team meets as necessary to coordinate planning, purchasing and implementing computer-related resources. Recently, the PSC formed the Administrative Standard Procedures Team to identify, evaluate and improve the administrative procedures employed by the agency. The Communications Team is being reactivated to coordinate consumer education and public information needs that are escalating with the introduction of competition in the regulated industries. A variety of benefits have been achieved by incorporating these teams into the daily operations of the agency. Planning is no longer an annual event, but rather an integral part of the PSC's ongoing processes. Staff members have eliminated duplicative work identified during the cross-divisional team meetings. And, most importantly, increased involvement of staff has had a positive impact on teamwork and morale. Commissioner and Staff Planning Retreat In December 1997 top-level staff members attended a two-day strategic planning retreat. The Commissioners joined the group for a half-day session to exchange ideas with the staff. The dual focus of this retreat was to develop team-building skills and to perform a situational analysis of the PSC. A series of facilitated teambuilding exercises were used to develop a more cohesive management team. Because of the diverse range of regulatory responsibilities at the PSC, not all of the agency's managers and supervisors have had an opportunity to work closely with one another on a regular basis. The retreat gave them this opportunity. The participants initially worked in small groups to identify the PSC's strengths, weaknesses, opportunities and threats. They then worked as a single PSC team to combine and summarize their findings and made conclusions about the future of the agency. http://www.psc.state.ga.us/pscinfo/overview98.htm 5/13/2004 Overview Strategic Planning Sessions Page 3 of 3 Throughout FY98 the strategic planning teams of the PSC met to implement the projects needed to achieve the objectives identified. At the conclusion of each quarter status reports were prepared to monitor the progress being made in achieving the strategic objectives in the 1997 Strategic Plan. During June and July 1998 PSC staff members attended a series of planning meetings held by the Office of Planning and Budgeting. These meetings focused on the State's strategic priorities and the development of performance measures. In July and August of 1998 strategic planning sessions were held to evaluate progress on the 1997 strategic objectives and to develop the 1998 plan. Each division met individually to identify changes to the 1997 strategic plan. In mid-August participants from all divisions met to evaluate the plan as a whole. The 1998 Strategic Plan was then refined, finalized and adopted by the Commissioners thereafter. http://www.psc.state.ga.us/pscinfo/overview98.htm 5/13/2004 Mission and Vision Statements Mission and Vision Statements Page 1 of 1 Mission Statement: The mission of the Georgia Public Service Commission is to ensure that consumers receive the best possible value in telecommunications, electric and natural gas services and to improve transportation and pipeline safety. Vision Statement: Be an organization that is recognized for its leadership, responsiveness and competence. Be an organization that provides consumer protection, safety, reasonable access, quality of service and customer choice in the telecommunications, energy and transportation markets by emphasizing education, technology, partnerships and continual improvement. Be an organization that makes reasoned decisions that balance multiple interests and produce the best possible long-term results. http://www.psc.state.ga.us/pscinfo/mission98.htm 5/13/2004 Links to the State Strategic Plan Links to the State Strategic Plan Page 1 of 3 The Governor's State Strategic Plan sets forth six strategic priorities to move Georgia into the future. The Public Service Commission has responsibilities and activities that impact all six areas and has identified in this plan strategic directions and strategic objectives to further the statewide goals. Economic Development The economic development of Georgia is a key focus in the State Strategic Plan and the Governor notes that Georgia must have the foundation and infrastructure necessary to foster economic growth. Utility industries regulated by the PSC provide essential services--maybe the most critical to a healthy economy. Without adequate, reliable, safe and affordable electricity, telecommunications, natural gas, and commercial vehicle transportation, economic growth is not possible. However, reliable electric and gas supply at affordable prices is vital to industrial development. Business cannot thrive without access to technologically up-to-date telecommunications services at affordable rates. As regulated utilities are opened to competition, the PSC will ensure that the quality, reliability and affordability of these important services are not impaired. The PSC has always supported economic development in Georgia. In September of 1995, the Commission adopted a uniform statewide policy that recognizes the key role that all regulated utilities play in promoting economic development throughout the state. The Commission's action supplemented the B.E.S.T. (Business Expansion) Act that was unanimously passed by the General Assembly and signed into law by Governor Miller. The Commission ordered all utility companies under its regulatory jurisdiction to submit discounted rate proposals that would assist in retaining existing businesses in the state and serve to encourage new businesses to locate their operations in the state. Georgia Power Company's successful Economic Development rates for electric service is one example. Public Safety The state's plan acknowledges that "Government is responsible for public safety. To accomplish this the state must maintain well-trained, effective law enforcement." The PSC's forty-two (42) enforcement officers located around the state enforce commercial motor vehicle safety regulations. The pipeline safety inspectors ensure that intrastate natural gas pipelines are designed, constructed, operated and maintained in compliance with safety standards. Both of these functions focus on preventing accidents and incidents that could adversely impact public safety. The PSC also inspects trucks and pipelines to detect safety violations and ensure that corrections are made. In the event of an incident or accident PSC officers and inspectors are called upon to investigate whether non-compliance with safety rules was a factor and what action to take to prevent a reoccurrence. http://www.psc.state.ga.us/pscinfo/statelinks98.htm 5/13/2004 Links to the State Strategic Plan Page 2 of 3 Efficient and Effective Government The Governor has stated that "Delivering services to citizens in the most efficient and effective manner must be the primary concern of every government agency and every public employee." The PSC has identified numerous strategic objectives to focus its resources on achieving results in the most efficient manner possible. The combination of strategic planning and use of information technology has been the means for doing more with less. The PSC also encourages public and private partnerships and uses a collaborative process, where possible, to minimize the cost of regulation and to streamline proceedings. Human Services The quality of life for all Georgians is a strategic priority in the state's plan. Electricity, telecommunications, and natural gas are an integral part of modern life. To enjoy even the most basic standard of living Georgians must have access to utility services that are reliable and reasonably priced. The PSC is responsible for special programs such as the Universal Access Fund for telecommunications, the Universal Service Fund for natural gas, and Telecommunications Relay Services for persons with hearing and speech disabilities. These funds are designed to ensure that service is available to all citizens of the state regardless of their special needs. Environment Although not an agency with primary responsibility for environmental issues, the PSC impacts the quality and health of the environment in a number of ways. PSC transportation officers enforce regulations on the safe transport of hazardous materials throughout the state and assist in investigating the cause of spills when a commercial vehicle is involved. In addition, environmental issues have been raised in PSC proceedings relating to energy companies in order to ensure that they have the financial capability to comply with all applicable environmental laws and to prevent PSC decisions from having any unintended adverse environmental consequences. Examples of these include Clean Air Act compliance, nuclear waste disposal and clean up of coal tar sites. Even though incorporated primarily for safety, the pipeline replacement programs ordered by the Commission will significantly reduce methane emissions by the gas utilities in the major metropolitan areas. Education http://www.psc.state.ga.us/pscinfo/statelinks98.htm 5/13/2004 Links to the State Strategic Plan Page 3 of 3 The Governor envisions that in the future Georgians will see education as a lifetime pursuit. The availability and affordability of reliable service from regulated utilities directly impact education in the state, e.g., without electricity and a modern telecommunications system distance learning cannot happen. In addition the Commission uses education in many areas to achieve its objectives. The Transportation Safety and Pipeline Safety Units conduct educational programs for carriers and operators in the industry to teach safe practices to prevent safety-related accidents and incidents. Consumer Education and Public Information staff disseminates information about changes in the regulated industries and consumer protection issues. Education is a primary way of demonstrating commitment to the PSC's customers and stakeholders, which include all Georgia citizens. http://www.psc.state.ga.us/pscinfo/statelinks98.htm 5/13/2004 Major Strategic Directions and Associated Strategic Objectives Page 1 of 22 Major Strategic Directions and Associated Strategic Objectives The PSC has adopted four major strategic directions: 1. To Ensure That Reliable Telecommunications, Natural Gas, Electric And Transportation Services Are Available And Reasonably Priced Either Through Effectively Competitive Markets Or Through Economic Regulation. This strategic direction relates to the economic regulation of the electric, telecommunications, natural gas and transportation industries. Historically, electric, telecommunications, and natural gas customers have been served by a single monopoly provider that charged rates set by the PSC through economic regulation. Now some of the services provided by these industries are being opened to competition. The Commission will continue to regulate the residual monopoly services of these industries and ensure universal service as it is defined for each industry. This strategic direction asserts that although the role of the PSC is changing with the introduction of competition, its overall responsibility to customers is the same. Prices paid by customers should be fair and reasonable whether the service is purchased from a monopoly utility or from a competitive provider and that service should be adequate and reliable. 2. To Enhance Public Safety Through The Pipeline And Transportation Safety Programs This strategic direction relates to public safety. The Commission is responsible for both natural gas pipeline and commercial vehicle safety. The PSC works closely with the federal government to enforce the national safety standards and regulations in both of these areas. 3. Enhance The Efficiency And Effectiveness Of Agency Operations The third strategic direction focuses on improving the efficiency and effectiveness of internal operations. The key areas that comprise the internal operations of the agency are work processes and information, human resources, and financial resources. Strategies have been identified for improving each of these areas. The effective use of information technology will be instrumental in improving many internal operations. 4. To Demonstrate A Commitment To All Customers And Stakeholders This strategic direction focuses primarily on consumer protection and education, but also addresses other external stakeholders. Because of the complexity of the PSC's responsibilities, there is a continual need to interact with numerous private and public organizations. The Commissioners and staff have established a network of contacts and working relationships with their customers and stakeholders. However, as the role of the agency evolves it must expand and intensify these ties. By using information technology, such as the Internet, the PSC will be more accessible to the public. The PSC demonstrates its commitment to customer service through increased outreach and educational initiatives and timely responses to requests for action or information. In the remainder of this plan strategic objectives are set forth for each of these four strategic directions. http://www.psc.state.ga.us/pscinfo/major_obj98.htm 5/13/2004 Major Strategic Directions and Associated Strategic Objectives Page 2 of 22 Accomplishments to date, work-in-progress and future projects relating to achieving PSC goals are noted herein. To Ensure That Reliable Telecommunications, Natural Gas, Electric And Transportation Services Are Available And Reasonably Priced Either Through Effectively Competitive Markets Or Through Economic Regulation. Historically, the PSC has been responsible for setting the rates charged by Telecommunications, Natural Gas, Electric and Transportation companies through economic regulation, and for establishing and enforcing quality of service and customer service standards. The telecommunications, natural gas, and electric industries were previously characterized as natural monopolies. Now each of these industries is evolving from a monopoly market structure where customers are served by a single provider to a competitive market where customers can choose from multiple providers for certain services. Some services will continue to be monopoly services regulated by the PSC. The pace of competition varies among these industries. In the telecommunications industry long distance service has been competitive since the mid-1980s. In 1995 and 1996 local telephone service was opened to competition by state and federal legislation. In 1997 Georgia deregulated the natural gas industry. Discussions about restructuring the electric industry are underway at both the state and federal level, although no statutory changes have been made to date. As these industries become competitive, the role of the PSC will change. Where feasible, the prices charged for utility service will be market-based instead of being directly set by the Commission. Some services will continue to be provided by a monopoly, such as distribution services, and will be offered at rates approved by the Commission. A primary function of the PSC during the implementation and transition period will be to set the ground rules to enable competitive markets to develop. Another primary objective is to ensure universal service for all Georgians. Once full competition is achieved the Commission's role will be to arbitrate disputes among the providers in the market, to ensure that the competitive market is operating effectively, to ensure universal service and to regulate residual monopoly services. The agency's role in ensuring quality of service will, in all likelihood, expand. As the number of providers in each of these industries increase, so will the opportunity for harmful practices. The public's need for accurate, objective information regarding these practices will escalate. For many years the PSC set the rates charged by motor carriers. However, economic regulation of transportation companies has diminished over the past two decades. At this time the PSC has price-setting authority over household goods, bus (other than charter) and limousine carriers and is responsible for permitting and certifying intrastate and interstate motor carriers. For each of these industries the PSC has identified the same strategic direction: To ensure that utility services are reliable and reasonably priced either through effectively competitive markets or through economic regulation. The following sections detail the strategic objectives that relate to this strategic direction by industry: (1) Telecommunications; (2) Natural Gas; (3) Electric; and, (4) Transportation. Telecommunications Industry To successfully establish a competitive market in telecommunications the Commission must implement both the state and federal Telecommunications Acts in a manner that maximizes the benefits and minimizes the detriments of competition. The benefits of competition can be lower prices and better service to the maximum number of customers. Potential detriments include unfair pricing, increased customer fraud and deceptive business practices. In reaching this goal the Commission has identified the following strategic objectives and strategies that comply with the laws and reflect sound regulatory policy. Appendix A of this Plan contains definitions of telecommunications terms and acronyms. Appendix B provides a more detailed description of the telecommunications industry in Georgia and the applicable laws. http://www.psc.state.ga.us/pscinfo/major_obj98.htm 5/13/2004 Major Strategic Directions and Associated Strategic Objectives Telecommunications Strategic Objectives Page 3 of 22 The PSC has identified two broad strategic objectives: (1) To implement a competitive market; and, (2) To provide for universal service. To accomplish the first objective several strategies have been identified: (a) Certify alternative suppliers of telecommunication services; (b) Ensure access to existing networks by alternate suppliers; (c) Implement alternative regulation; (d) Resolve interconnection and fair competition disputes; (e) Institute number portability; and (f) Monitor the development of a competitive market. To accomplish the second objective of providing universal service, the strategy is to ensure reasonable rates for rural and high cost areas as well as low-income subscribers. Strategic Objective 1. To Implement A Competitive Market: Strategy a) Certify Alternative Suppliers of Telecommunication Services The Commission has been successful in certifying numerous alternative providers of local exchange service, interexchange service, alternative operator service and customer owned coin operated telephones. The Commission has received 127 applications from potential Competitive Local Exchange Companies (CLECs). Of these, 81 have been approved, 3 have been denied, 10 have been withdrawn and 33 are in the review process. Not all of those with approved certificates are currently offering service to residential customers. However, the PSC expects the level of local residential telephone competition to accelerate with the continued development and perfection of electronic interfaces, full implementation of permanent telephone number portability and a final Supreme Court decision on the appropriate pricing of recombined network elements. Effective July 1, 1998, the State Telecommunications Act authorized the Commission to certificate CLECs within the serving area of Tier 2 Local Exchange Companies. CLECs presence in the Tier 2 territories should also foster competition in the residential market. Strategy b) Ensure Non-Discriminatory Access To Existing Networks By Alternative Suppliers Access to existing networks by alternative suppliers remains one of the major impediments to effective competition in the local exchange market. The Federal Telecommunications Act of 1996 requires incumbent local exchange companies to provide access to its network in the same manner and quality as it provides to itself or to its subsidiaries. The Commission has completed resolution of major pricing issues surrounding access to the incumbent's network. The balance of these concerns is operational--such as electronic interfaces. The Commission has ordered BellSouth to make certain enhancements to its Operational Support Systems and adopted performance standards to monitor the Company's progress through monthly surveillance reports to ensure that the non-discriminatory access standard is adhered to. BellSouth must comply with these Commission requirements before it can qualify to enter the in-region interLATA long distance market. Strategy c) Implement Alternative Regulation Prices charged for the majority of local telephone services will continue to be regulated by the Commission until competition is fully in place. However, 19 of the 34 incumbent local exchange companies have elected to use an alternative form of regulation instead of traditional rate base regulation. Alternative regulation is largely defined by statute and limits the prices charged for basic telecommunication services provided by these companies. The Commission by order and rulemaking has begun implementation and issued interpretations of the law. One such order issued by the Commission was appealed to the Superior Court, which reversed the PSC's decision. Upon further appeal to the Court of Appeals, the Superior Court's order was overturned and the decision of the Commission was reinstated. A subsequent appeal to the Georgia Supreme Court was filed and is presently awaiting decision. As it now stands, the appellate process is not expected to be complete until 2000 or later. The Commission will be initiating rulemaking with respect to alternative regulation in 1998. http://www.psc.state.ga.us/pscinfo/major_obj98.htm 5/13/2004 Major Strategic Directions and Associated Strategic Objectives Strategy d) Resolve Interconnection and Fair Competition Disputes Page 4 of 22 Two new duties assigned to the Commission from both laws are resolving disputes between competing carriers and enforcing a fair competitive market. As a result of these additional duties the Commission has experienced considerable growth in the number and complexity of cases it must handle. Strategy e) Institute Permanent Number Portability Number portability allows customers to change their telephone supplier without changing their telephone number. Although the FCC has ultimate jurisdiction over number portability, the Georgia Public Service Commission continues to be a national leader in adopting a permanent solution to number portability for the state. The FCC recognized these efforts and has adopted the Georgia solution as one of the methods for ensuring the implementation of permanent telephone number portability nationwide. The PSC will continue to work with the FCC and the industry work group to perfect the regulatory framework for number portability. On August 31, 1998, 20 central offices in the Metro Atlanta calling area will institute the long-term solution for number portability. As competition develops, number portability will be implemented in other local telephone markets around the state. Strategy f) Monitor the Development of a Competitive Local Market To evaluate the extent of local competition the Commission requires that CLECs file monthly surveillance reports with indicate the number of customers and the number of access lines receiving service. At the end of June1998 the data indicated that 47,501 customers and 104,161 access lines were being served by CLECs throughout the state. Strategic Objective 2. To Provide For Universal Service By Ensuring Reasonable Rates for Rural and High Cost Areas As Well As Low-income Subscribers The Commission has the ultimate responsibility for ensuring universal access to the telecommunications network. Both State and Federal Telecommunications Competition Acts address reasonable rates for rural and high cost areas. The Georgia Act provides for a Universal Access Fund to be administered by the Georgia Public Service Commission. SB137 provided that the UAF be implemented in two phases, each with a different purpose. During the first phase per O.C.G.A. 46-5-166(2)(f) the fund is to be used to achieve intrastate parity with interstate access charges. This fund is fully operational with contributions and disbursements being made on a quarterly basis. In July 1998 the Commission approved an agreement among all industry participants that sets forth UAF guidelines to implement access parity. During the second phase per O.C.G.A. 46-5-167 the fund will provide a cost-based reimbursement to local service providers operating in high-cost areas of the state. The Commission has recently adopted a Procedural and Scheduling Order to implement phase two. The Commission has responsibility for implementing certain intrastate aspects of the federal Universal Service Fund and its resulting programs. The federal USF provides funding for the same purposes as the state fund, as well as for discounts to schools, libraries, primary rural health care facilities and for assistance to low income users. The Commission plans to use the state Universal Access Fund in conjunction with the federal Universal Service Fund to ensure that Georgians pay reasonable rates for their basic services. The Commission will coordinate federal and state efforts to avoid duplication. Natural Gas Industry Ideally, a competitive natural gas market provides lower prices and better service to the maximum number of end users. The success of opening the natural gas market to competition will be judged on whether http://www.psc.state.ga.us/pscinfo/major_obj98.htm 5/13/2004 Major Strategic Directions and Associated Strategic Objectives Page 5 of 22 consumers benefit, economic efficiency is improved, fair competition is promoted, and safety and reliability are maintained or enhanced. The Commission's goal is to implement the state's natural gas deregulation law in a manner that achieves these benefits. To reach this goal and to fulfill its traditional responsibilities in the natural gas industry the Commission has adopted three strategic objectives and related strategies. Appendix C provides a more detailed description of the natural gas industry in Georgia and the applicable laws. Natural Gas Strategic Objectives The Commission's three strategic objectives in the natural gas industry are: (1) To implement the competitive market; (2) To ensure reasonable prices for monopoly gas services; and (3) To ensure the availability and reliability of gas supply. The strategies identified to accomplish the first strategic objective are: (a) Evaluate alternative regulation; (b) Certify and oversee marketers; (c) Assign customers to competitive gas marketers; (d) Manage the competitive market; and (e) Administer the Universal Service Fund. Strategies have been identified to achieve the other two strategic objectives, as well. Strategic Objective 1. To Implement the Competitive Market Strategy a) Evaluate Alternative Regulation Atlanta Gas Light Company (AGL) filed an application with the Commission in November 1997 to have its rates, charges and services regulated under an alternative form of regulation. Under state statute the distribution of natural gas will remain a monopoly service regulated by the Commission. Under certain circumstances an alternative form of regulation, often referred to as performance-based regulation, could replace traditional rate of return regulation for pricing this monopoly service. In June 1998 the Commission decided that AGL did not meet the requirements for alternative regulation and thus denied the company's request. United Cities Gas Company (UCG), the other investor-owned gas distribution company in Georgia, has not filed for alternative regulation. Strategy b) Certify and Oversee Marketers Under state law the Commission has the authority to issue Certificates of Authority to competing marketers. Final rules for granting Certificates of Authority to competing sellers of natural gas were approved at the end of 1997. Applications have been received from 28 potential gas marketers. The Commission will begin hearings on the financial and technical competence of these applicants in September 1998 and make a final determination by November 1998. Having certified marketers in operation and customer assignment rules in place will signal the beginning of the transition to a competitive market in which customers will have a choice of natural gas suppliers. Strategy c) Assign Customers to Competitive Gas Marketers When certain market share conditions are met the local gas distribution company will no longer be required to sell gas to retail customers. The local gas company will be a "pipes" company and, as such, will continue to sell delivery service at rates set by the Commission. At the point in time when 33% of peak day volume is provided by competitive marketers, all firm retail customers who have not yet chosen a marketer will be assigned equitably to the new marketers. The Commission has adopted the methodology mandated for random customer assignment to be used once the competitive market is operating. In the meantime, the Commission will be monitoring the development of the competitive market and will eventually make the determination of when adequate market conditions have been met to begin the random customer assignments. Strategy d) Manage the Competitive Market Once the gas market is opened to competition the Commission has ongoing responsibilities to oversee the duties of the electing distribution company (EDC), to resolve disputes between the marketers and the EDC, and to monitor the effectiveness of the competitive market. The EDC will continue to be regulated by the http://www.psc.state.ga.us/pscinfo/major_obj98.htm 5/13/2004 Major Strategic Directions and Associated Strategic Objectives Page 6 of 22 Commission. As with the telecommunications industry the Commission will resolve complaints marketers or consumers may have with the EDC or other marketers to ensure that competition is fair. If effective competition fails to materialize or if conditions arise where competition is not in the best public interest, state law provides for corrective action. Strategy e) Administer The Universal Service Fund The Universal Service Fund established under state statute has two purposes: (1) To cover a portion of the uncollectible losses of marketers; and (2) To continue expansion of the distribution system into areas that are currently not served by natural gas. Rules governing fund contributions and disbursements should be adopted by September 1998. Strategic Objective 2. To Ensure Reasonable Prices For Monopoly Gas Services Traditional rate making principles ensure just and reasonable rates, as well as reliability and safety. As part of its regulatory duties the Commission set rates for monopoly gas services and approves special charges, such as those for the recovery of costs incurred for the remediation of coal tar sites and for the replacement of aging infrastructure. As seen in these two strategies, the Commission has rate-setting responsibilities for both electing and non-electing distribution companies. Strategy a) Set Rates For Firm Delivery Service The delivery of gas by the EDC will continue to be a regulated monopoly service with rates approved by the Commission. The Commission set the delivery price to be charged as part of its AGL rate case order, issued in June 1998. State law required the Commission to use straight fixed variable rate design and placed other restrictions on the determination of the delivery charges. Strategy b) Set Rates For Non-Electing Local Gas Distribution Companies The Commission has the continued responsibility to regulate all rates charged by United Cities Gas Company, which has not yet elected to open its market to competition. Strategic Objective 3. To Ensure the Availability and Reliability of Gas Supply Strategy a) Approve Gas Supply Plans On or before August 1 of each year, each gas utility shall file with the Commission its gas supply plan for the following recovery year ending September 30. The staff is responsible for reviewing and analyzing the filing, issuing data requests and evaluating the responses, preparing and filing of testimony, defending that testimony while under cross-examination in a formal hearing, and writing a final Commission Order. All of these activities must be completed within 45 days, as mandated by law. Strategy b) Approve a Prudent Capacity Supply An electing distribution company that is no longer subject to the gas supply plan statute and has commodity sales service rates must file a capacity supply plan, on or before August 1 each year. As with the gas supply plans the staff is responsible for reviewing and analyzing the filing, issuing data requests and evaluating the responses, preparing and filing of testimony, defending that testimony while under cross-examination in a formal hearing, and writing a final Commission Order. All of these activities must be completed within 45 days, as mandated by law. Strategy c) Evaluate Requests for Certificates of Public Convenience and Necessity In order to construct and operate an intrastate natural gas pipeline, a Certificate of Public Convenience and Necessity must be obtained from the Commission. http://www.psc.state.ga.us/pscinfo/major_obj98.htm 5/13/2004 Major Strategic Directions and Associated Strategic Objectives Page 7 of 22 Electric Industry The State of Georgia has benefited from limited retail competition in the electric industry since 1973 with the passage of the Georgia Territorial Electric Service Act. Additional legislation has not been passed at either the state or federal level that would open the industry to full retail competition, although discussions have been underway in Congress for several years. The PSC conducted a series of informal workshops to explore the issues pertaining to the potential restructuring of the electric industry and issued a staff report in January 1998. Expanded competition is not expected in the near future, but the PSC will continue to evaluate the issues related to electric industry restructuring. At this time the PSC is operating under current law which requires traditional regulation of the electric industry. Appendix D provides a more detailed description of the electric industry in Georgia and the applicable laws. Electric Strategic Objectives The Commission has adopted several strategic objectives for regulating the electric industry: (1) Ensure just and reasonable rates; (2) Ensure that energy requirements are met; (3) Administer the Georgia Territorial Electric Service Act; and (4) Examine issues relating to restructuring Georgia's electric industry. Strategic Objective 1. To Ensure Just and Reasonable Rates The Commission is responsible for setting the rates for electric service provided by Georgia Power Company (Georgia Power) and Savannah Electric and Power Company (Savannah Electric). Per Commission order Georgia Power filed a rate case in June 1998. As part of this case the Commission will consider whether to continue or modify the alternative regulation plan currently in place for Georgia Power. A final decision is expected in December 1998. The Commission adopted a stipulated agreement and accounting order in 1998 that reduced electric rates for Savannah Electric's small business customers and adjusted depreciation, amortization and storm damage expense. The Commission will monitor the results of this agreement by analyzing quarterly surveillance reports from Savannah Electric to ensure that a reasonable level of earnings is not exceeded. To help ensure that rates are reasonable the Commission conducts prudence reviews of management decisions, approves special rate reduction contracts under Georgia's Economic Development Incentive Policy, produces biannual rate surveys of all investor-owned, electric membership corporations and municipal electric utilities, and approves applications for financing authority. Strategic Objective 2. To Ensure That Energy Requirements Are Met The Commission is responsible for ensuring that sufficient energy resources are available to meet the needs of the state. To accomplish this, the Commission evaluates and approves the integrated resource plans of the utilities every three years. In 1998 the Commission held hearings and issued decisions approving the integrated resource plan for both regulated electric utilities. In approving the plan the Commission considered both supply sources and demand forecasts. The Commission approves applications for capacity purchases made by the utilities. Savannah Electric and Power filed their Application for a Certificate of Public Convenience and Necessity (CPCN) for Capacity Purchases for the Years 1999, 2000 and 2001 in February 1998. The final decision in this case is expected in October 1998. Strategic Objective 3. To Administer The Georgia Territorial Electric Service Act Retail competition has been present in Georgia since the passage of the Georgia Territorial Electric Service Act in 1973. This Act provides customers with loads of 900kW or greater a choice in their electric supplier. It http://www.psc.state.ga.us/pscinfo/major_obj98.htm 5/13/2004 Major Strategic Directions and Associated Strategic Objectives Page 8 of 22 also affords eligible customers the opportunity to change from one electric supplier to another provided all parties consent to the transfer. The Commission's role is to resolve territorial disputes and customer complaints involving customer choice, review and approve requests for transfer of retail electric service and, to maintain the maps of territorial assignments for electric suppliers in each county in the State of Georgia. Strategic Objective 4. To Examine Issues Relating To Restructuring Georgia's Electric Industry The Commission issued a staff report on restructuring the electric industry in January of 1998. The report identified several areas for further study which the Commission will address in the coming years. Additional issues will arise in the Georgia Power rate case and other proceedings before the agency and will be addressed as needed. The following strategies relate to four key areas that affect restructuring: Strategy a) Maintain Reliability Through Appropriate Industry Structure The reliability of an electric system can be viewed as two interrelated elements: adequacy and security. Adequacy refers to balancing the level of resources to meet peak demand while security refers to the ability of the system to withstand sudden changes on an hourly or daily basis, such as the loss of a generating unit or transmission line. Without adequate generation, security concerns are greater. This dual nature of reliability is the responsibility of each independent system; however, all interconnected systems are coordinated through the regional reliability councils of the North American Electric Reliability Organization (NAERO). If retail open access is implemented in Georgia, current responsibilities for reliability conformance may need to be modified. Moreover, there are distinct and separate reliability concerns pertaining to generation, transmission and distribution planning and operations that must be factored into any restructuring plan. The Commission plans to address these concerns in an investigatory proceeding. Maintenance of short and long term reliability in the development of a competitive market structure will be the primary focus. Strategy b) Address Stranded Cost Recovery A major hurdle in restructuring the electric industry will be the fair resolution of stranded cost recovery. The Commission has already encouraged both investor-owned electric companies to amortize potentially strandable costs. As part of Georgia Power's modified earnings sharing plan, earnings in excess of an allowed level are used to amortize generating assets. Savannah Electric and Power has been authorized to accumulate a reserve that can be used by the Commission to offset stranded costs if the Commission ultimately finds that costs will be stranded. These mechanisms will produce long term benefits to both stockholders and ratepayers. The Commission will address this issue further in future proceedings. Strategy c) Evaluate the Unbundling of Electric Service Components The Commission has authority over rate design. This authority can be used to unbundle rates or to phase-in unbundling. The Commission will examine rate design in the Georgia Power rate case to more closely match the price of services to the cost of providing these services. Under competition prices tend to move toward cost. Eliminating subsidies from regulated rates will make the transition to market-based rates easier. Strategy d) Address Market Power Issues In the process of restructuring the electric industry in Georgia, the General Assembly and the Commission must ensure that a structure is not created where a supplier possesses sufficient market power to essentially become an unregulated monopoly. In order to accomplish this, establishing an Independent System Operator (ISO) and requiring divestiture of generation assets are two of several methods that should be studied. The Commission plans to investigate these issues in a generic proceeding. http://www.psc.state.ga.us/pscinfo/major_obj98.htm 5/13/2004 Major Strategic Directions and Associated Strategic Objectives Transportation Industry Page 9 of 22 The Commission has price-setting authority over household goods, bus (other than charter) and limousine carriers and is responsible for permitting and certifying "for hire" intrastate and interstate motor carriers. The following strategic objectives and strategies have been adopted relating to this authority. Transportation Strategic Objectives The PSC has identified three broad strategic objectives: (1) To ensure reasonable rates and tariffs; (2) To ensure that carriers are properly registered and certificated; and (3) To verify that carriers have the appropriate level of insurance coverage. To accomplish these objectives several strategies have been identified for each. Strategic Objective 1. To Ensure Reasonable Rates And Tariffs. The economic regulation of rates for motor carriers is limited to household goods carriers and some for hire passenger carriers, such as limousines. The Commission reviews and approves the tariffs for these carriers. To streamline the process the Commission has adopted a maximum tariff for limousines. Carriers who use this tariff can obtain approval more quickly. Strategic Objective 2. To Ensure That Carriers Are Properly Registered And Certificated. The Certification and Permitting unit registers approximately 625,000 vehicles and collects approximately $7,000,000 in registration fees annually under the division's registration program. Approximately $3,000,000 is retained and deposited in the general fund of the State of Georgia; the balance is transferred to other states. Certificates of Public Convenience and Necessity (CPCN) must be obtained by "for hire" household goods, bus (other than charter) and limousine carriers. Other carriers are not required to have a certificate but must register or obtain a permit to operate in Georgia. These include: z Interstate exempt "for hire" carriers who transport exempt commodities, such as non-processed fruits and vegetables, sod and other items; z Intrastate exempt "for hire" carriers of ten passengers or less, such as non-emergency medical vehicles or sedans who transport people but do not fall under either the bus or limousine classification; z Interstate carriers who transport goods regulated under USDOT authority; z Charter buses; and, z "For hire" carriers who transport goods within Georgia. In addition to certificating, permitting and registering companies, the Commission also issues and tracks chauffeur permits granted to individuals who drive limousines in Georgia. Strategies related to these responsibilities include: Strategy a) Reduce The Number Of Illegal Household Goods And Limousine Carriers Numerous household goods carriers operate without a certificate of authority in Georgia. When consumer complaints about poor service bring these to the attention of the Commission, follow-up action is often difficult. Providing information on how to become properly certificated and seeking authority to restrict an illegal carrier's ability to advertise in the yellow pages are two possible avenues to implement this strategy. http://www.psc.state.ga.us/pscinfo/major_obj98.htm 5/13/2004 Major Strategic Directions and Associated Strategic Objectives Page 10 of 22 Strategy b) Continue To Work Closely With The Department Of Aviation Ground Transportation In Monitoring Illegal Limousine Carriers Operating At The Airport. Limousine carriers must have evidence of liability insurance on file with the Commission. A tracking system will be developed to identify carriers who are placed under suspension for failure to have proof of insurance. Provide the Department of Aviation Ground Transportation with a list of suspended carriers on a periodic basis. Strategy c) Track The Chauffeur Permit Renewal Process The Commission is charged with the responsibility of performing background investigations on all limousine drivers and subsequently issuing chauffeur permits that are renewable every two years. A program to track expired permits will be developed. Strategy d) Cross-reference Chauffeur Permitted Drivers To Carriers. Under O.C.G.A. 46-7-85.9, chauffeur permits are valid for two calendar years. Chauffeur permits are issued in the driver's name and have a photograph of the driver affixed thereto. The employing limousine carrier is also reflected. Establish a system to notify the limousine carrier when the chauffeur permit is close to expiration and implement revocation procedure for any driver who fails to renew. Develop requirement for limousine carrier(s) to notify Commission when chauffeur leaves their employment so that revocation can be accomplished. Strategic Objective 3. To Verify That Carriers Have The Appropriate Level Of Insurance Coverage. Strategy a) Evaluate Changes In Insurance Coverage Requirements The Commission verifies that all "for hire" carriers have proof of insurance. The staff reviews over 100,000 insurance filings each year. The required level of insurance coverage differs at the state and federal level. To minimize confusion and to streamline the verification process the Commission will evaluate the feasibility of making intrastate insurance requirements for all licensed motor carriers the same as the federal requirements. Strategy b) Establish Tracking System For Monitoring Carrier Insurance Status Implement a system for monitoring carrier insurance status by researching carrier information to establish a base number of carriers that had proof of insurance on file January 1, 1998 and number of carriers placed under suspension in 1998. Use this number as a basis for comparison to next year's figures to track the percentage of carriers without insurance. To Enhance Public Safety Through the Pipeline and Transportation Safety Programs The Governor's State Strategic Plan emphasizes the need to ensure the safety of Georgia's citizens. Two programs at the PSC pertain directly to safety--natural gas pipeline safety and the Motor Carrier Safety Assistance Program (MCSAP). The Georgia Public Service Commission is reimbursed by the federal government for 50% of the cost of the pipeline safety program and for 80% of the cost of enforcing commercial motor vehicle safety regulations. Both of these programs are focused, not only on detecting and correcting safety violations, but also on preventing pipeline incidents and commercial vehicle crashes. Public safety is enhanced through an active inspection program, the enforcement of safety standards and through education of the industries and the http://www.psc.state.ga.us/pscinfo/major_obj98.htm 5/13/2004 Major Strategic Directions and Associated Strategic Objectives Page 11 of 22 public. The strategic objectives discussed hereinafter reflect the Commission's emphasis on ensuring public safety through prevention. Pipeline Safety The Pipeline Safety Office is responsible for enforcing safety regulations for natural gas pipelines and Liquefied Natural Gas (LNG) facilities. Appendix E contains detailed information about the Pipeline Safety Program. Achieving operator compliance with the pipeline safety regulations is critical to preventing accidents and injuries to the general public. To administer effectively and efficiently a pipeline safety program, the Commission must develop an approach that features not only field inspections of existing facilities and records, but also training of operators, vendors, consultants and other industry personnel. In reaching this goal the Commission must meet the following objectives. Pipeline Safety Strategic Objectives A number of strategic objectives are necessary to ensure safe pipeline systems in Georgia: (1) To heighten enforcement; (2) To perform risk management assessment of natural gas systems; (3) To expand public education and system operators safety training; and (4) To seek clarification of authority over Liquefied Propane Gas (LPG) distribution systems and hazardous liquid pipelines. Strategic Objective 1. To Heighten Enforcement Strategy a) Perform A Matrix Of Safety, Operation, Construction, Maintenance, and Drug And Alcohol Inspections On All Natural Gas Distribution Systems. Active enforcement through physical verification of pipeline facilities is the keystone of the pipeline safety program. Currently the PSC is performing extensive compliance audits, including physical verification of plant operations for all jurisdictional systems. Where inspectors have identified problems, efforts are being made to bring systems into full compliance to ensure the safety of the citizens. This unit continues to demonstrate leadership in pipeline safety matters by following federal guidelines, recommendations and standards and by keeping abreast of technological advancements in the industry through related educational programs and seminars. Strategy b) Perform Special Investigations The Pipeline Safety Office has been involved with numerous special investigations. As a result of these investigations, three municipal systems and one investor-owned company are making extensive improvements to their infrastructure under order of the Commission. All four have agreed to replace aging pipe in their systems in order to reduce the number and severity of leaks. Dalton Utilities, one of the first systems, has reported significant savings in its operating costs as a result of their replacement program. The Office also participates in criminal investigations in which pipeline safety is believed to have been compromised. Strategy c) Perform Investigations Of Natural Gas Incidents Whenever a natural gas incident involves personal injury, death or damage of $5,000 or more the Pipeline Safety Office investigates to determine the cause of the incident. Frequently these incidents are caused by third-party damage. The Commission works closely with the Utilities Protection Center to ensure that underground lines are clearly and accurately marked. Strategic Objective 2. To Perform Risk Management Assessment of Natural Gas Systems The Pipeline Safety Office uses risk management assessment to select systems to be inspected. Appendix E of this plan illustrates factors used to determine potential risk. Operators that meet risk criteria are given a high http://www.psc.state.ga.us/pscinfo/major_obj98.htm 5/13/2004 Major Strategic Directions and Associated Strategic Objectives Page 12 of 22 priority and monitored more frequently. This analytical tool is an effective way to measure the safety of systems and thereby allocate resources efficiently. Strategic Objective 3. To Seek Clarification of Authority Over Intrastate Liquefied Propane Gas (LPG) Distribution Systems and Hazardous Liquid Pipelines The Federal Office of Pipeline Safety has funds available for inspection of intrastate liquefied propane gas systems and liquid petroleum pipelines. However, there is a conflict between the federal and state law regarding authority over the inspection of intrastate LPG systems. State law grants tank inspection authority to the State Fire Marshal's Office while federal law authorizes full system inspection to the Public Service Commission along with federal funding. The Commission will pursue a state statutory change granting this authority to enable the PSC to fulfill its federal mandate and to be eligible for federal funds. Transportation Safety The Enforcement and Compliance Units of the Transportation Division of the Georgia Public Service Commission ensure compliance with safety and hazardous materials regulations. The Division has 42 uniformed enforcement officers and 7 other staff members. Most of the officers reside and work in their assigned territories that range in size from 4 to 10 counties. Part of the PSC's commitment to commercial vehicle safety has been to work with other state and federal agencies and with enforcement divisions in respective counties to promote commercial vehicle safety. Transportation Safety Strategic Objectives The Transportation Division has identified the following four strategic objectives and the associated strategies: Strategic Objective 1. To Focus On High Risk Commercial Operators To reduce accidents, injuries, and deaths resulting from crashes involving commercial motor vehicles, the Transportation Division established a Safety Operations Review process in 1998 to focus on high-risk commercial operators. Several strategies involved in conducting safety operations reviews are: Strategy a) Identify Those Motor Carriers Who Demonstrate A Continuous And Flagrant Disregard For The Commercial Vehicle Laws And Regulation. Strategy b) Dispatch Safety Operations Review Team To Motor Carrier Offices To Discern Why And Where Violations Are Occurring And Causes Through Terminal Inspections And Compliance Reviews. Strategy c) Conduct Safety Meetings and Seminars And Provide Educational Materials To Assist Carriers In Establishing A Viable Safety Program. Strategy d) Make Recommendations To The Carrier With Time Schedules For Correcting Violations. Strategy e) Perform Follow-Up Reviews And Make Recommendations For Sanctions, If Necessary. Strategy f) Develop And Implement Civil Penalty Procedures To Be Used When Carriers Fail To Comply. Strategic Objective 2. To Improve Data Collection Technology And Analysis http://www.psc.state.ga.us/pscinfo/major_obj98.htm 5/13/2004 Major Strategic Directions and Associated Strategic Objectives Page 13 of 22 By improving the quality and timeliness of data received and the methods of analyzing the data, the Commission will be better able to identify problem areas involving commercial vehicle safety. To achieve this objective the Transportation Division purchased pen-based computers for the enforcement officers. This equipment allows daily upload of inspection information from the field to headquarters. Eliminating duplicate data entry has reduced the average time for submitting PSC inspection data to the federal database from three weeks to two days. Strategies to further improve data collection and analysis are: Strategy a) Purchase Laptop Computers To Replace The Pen-Based Computers To Allow Access To Larger Data Bases And Provide Additional Functions. Strategy b) Coordinate Collection And Access To Data Among Organizations Involved With Commercial Motor Vehicles And Traffic Enforcement: Department Of Public Safety, Georgia Department Of Transportation, Georgia Department Of Revenue, U. S. Department Of Transportation And Municipal And County Traffic Enforcement Agencies. One Cooperative Project Currently Underway Is Intelligent Transportation System/Commercial Vehicle Operations (ITS/CVO) Initiative. Strategy c) Test And Implement The Training Course For Other Law Enforcement Agencies In Techniques For Determining The Identity Of The Carrier That Is Operating A Leased Commercial Motor Vehicle And Which Vehicles Are Considered "Commercial Motor Vehicles." This Course Was Developed In 1998 By The Enforcement Unit. Strategic Objective 3. To Enhance Enforcement Activities Strategy a) Conduct High Crash Corridor Checks And Concentrated Patrols In addition to inspecting commercial motor vehicles in their assigned geographic areas of the state, officers participate in concentrated enforcement efforts in high crash corridors. Because of traffic density, the majority of accidents involving commercial motor vehicles occur on sections of Georgia's highways that are either major transportation arteries or near metropolitan areas. Focusing enforcement in these high-risk areas should reduce accidents, fatalities and injuries involving commercial motor vehicles. During 1998 the Enforcement Unit began conducting these checks. The high crash corridors in the state were identified by location, time-ofday, day-of-week and contributing factors. The local county enforcement agencies participated in some of these efforts providing manpower and communications assistance. Commercial vehicle crashes were reduced during the weeks these checks were conducted. During the last six months high crash corridor checks have been held in eight Georgia counties: Fulton, DeKalb, Bibb, Clayton, Gwinnet, Hall, Richmond and Lowndes. The results of these checks are as follows: z Total Inspections 1,871 z Hazardous Material Inspections 131 z Out Of Service Drivers 255 z Out Of Service Vehicles 514 z Out Of Service Vehicle And Driver 52 z Citations Issued 292 z Warnings Given 2,151 Strategy b) Issue Computer-Generated Notices To Motor Carriers Where Flagrant Driver Violations Are Found, e.g., Excessive Speeding, Hours Of Duty Status Violations, Following Too Closely, And Improper Lane Changes. http://www.psc.state.ga.us/pscinfo/major_obj98.htm 5/13/2004 Major Strategic Directions and Associated Strategic Objectives Page 14 of 22 Strategy c) Perform Special Concentrated Inspections Of Hazardous Material Carriers Strategic Objective 4. To Evaluate the Need For a Rail Safety Program Georgia has 4,602 miles of track and is ranked 8th and 6,163 crossings and ranked 7th in the nation. The latest figures that are available (1996), reflect 136 railroad accidents or incidents, which resulted in 18 fatalities and 37 injuries at public highway-rail crossings. According to figures compiled by the Federal Railroad Administration, Georgia is ranked 9th in the nation for accidents and incidents. Promoting the safety of railroad operations should reduce deaths, injuries and damage to property resulting from railroad accidents. Until a rail safety program for Georgia is funded and the Commission enters into an agreement with the Federal Railroad Administration (FRA) to participate in the Rail Safety Program, several strategies should be implemented: Strategy a) Track The Number And Causes Of Rail Accidents In Georgia By Enforcing Reporting Requirements Currently In Effect. Strategy b) Monitor The Expansion Of Rail Usage In The State As Commuter Rail Solutions Are Implemented To Address Traffic Congestion And As Shipping Patterns Change Due To Recent Mergers In The Rail Industry. Strategy c) Research Rail Safety Programs In Other States To Determine The Best Approach For Georgia. To Enhance the Efficiency and Efficacy of Agency Operations One of the six strategic priorities set forth in the State Strategic Plan is to improve the efficiency and effectiveness of government operations. The Governor challenged all state agencies to look in new ways at every level of their operations. The PSC is continually searching for ways to improve operations and to effectively use its limited resources. Three key aspects of internal operations are process and information management, human resource management and financial management. Strategies have been identified for making improvements in each of these areas. The effective use of information technology will be instrumental in many of these improvement strategies. The first key area for improvement is internal process and information management. The PSC uses the administrative hearing process to obtain evidence on which the Commissioners base their decisions. The staff has various processes in place to perform its duties, e.g., evaluating financial applications, performing safety inspections or preparing the budget. These processes are highly dependent upon data and other information. Therefore, the use of information technology will be an integral part of any effort to improve efficiency and efficacy. The second key area under this strategic direction is human resource management. The Commission recognizes that employees are its most valuable and costly resource. The majority of staff members are professionals with degrees and/or other credentials who value training and development to maintain their professional skills. The third key area relates to financial management. Through the budget and purchasing processes, the agency obtains the resources needed to operate. To ensure that these resources are appropriately acquired and properly safeguarded, an appropriate system of internal controls must be in place. Process and Information Management Efficient work processes, coupled with an effective management information system, are essential to http://www.psc.state.ga.us/pscinfo/major_obj98.htm 5/13/2004 Major Strategic Directions and Associated Strategic Objectives Page 15 of 22 achieving the Commission's goals of ensuring that affordable and reliable telecommunications, electric and natural gas services are available to consumers and that transportation and gas pipeline safety is continually monitored and improved. Process and Information Management Strategic Objectives Strategic Objective 1. To Evaluate and Improve Agency Work Processes and Management Information Systems. Where appropriate the Commission can make improvements, even radical changes, to many of its work processes. However, because of restrictions imposed under the Administrative Procedures Act, the Commission must follow procedures prescribed by law for its administrative hearings and rulemaking. Where the Commission is vested with discretion, the processes used by the agency should be reviewed and improved. Customers and stakeholders of these processes should be considered in the development of any proposed modification. Strategy a) Improve the Case Management System. Consumers benefit if Commissioners, staff and other interested parties have access to both procedural and substantive information relating to matters pending before the PSC. In the last fiscal year, the Commission opened 1,588 telecommunications cases, 185 electric cases and 60 gas cases and processed 8,214 documents relating to these and other existing matters. Easy access to information regarding the status of all cases affords interested parties or entities the ability to track their progress to ensure that matters are timely and appropriately handled by the Commission. Maintaining an accurate database with information as to staff assignments, scheduling matters and case classifications will enable management to evaluate the agency's workload to determine if resources need to be reallocated. Currently, the case management system tracks the documents filed in each utility docket and allows the public to access electronic copies of the documents through the Internet. It is envisioned that the system will be expanded to reflect more detailed information about the cases. The Transportation Division is evaluating its case management system to assess areas for improvement. Strategy b) Streamline Work Processes And Improve Information Management. It is essential for each unit in the agency to evaluate its work processes and, where appropriate, make them more efficient. Because of the nature of the Commission's work, it is difficult to separate the collection and analysis of data from the work process itself. These must be evaluated simultaneously and information technology solutions should be incorporated into any modification made to achieve a more efficient process. For example, the Certification and Permitting Unit of the Transportation Division is currently conducting a business analysis of its workflow as part of its effort to consolidate several databases into an integrated Year 2000 compliant system. Additional details about this conversion and other information technology initiatives are in Appendix H. Strategy c) Identify Obsolete Processes. As the role of the Commission changes with expanded competition and federal preemption, some of the traditional activities performed by staff will be transformed. These emerging responsibilities should be identified and proposals developed for replacing outdated statutes or rules. Strategy d) Use Alternative Dispute Resolution (ADR), Where Appropriate. Historically, the Commission has acted as a quasi-judicial body. As the utility industries move from regulation to competition, the Commission will also have an expanded role as facilitator or mediator. The Commission will mediate disputes between different competitive providers in the marketplace and resolve disputes between providers and their customers. Alternative dispute resolution can make the Commission more accessible and reduce the cost of resolving these disputes. http://www.psc.state.ga.us/pscinfo/major_obj98.htm 5/13/2004 Major Strategic Directions and Associated Strategic Objectives Strategic Objective 1. To Revise Commission Rules, Policies and Procedures. Page 16 of 22 All Commission rules, policies and procedures should be reviewed and additions, deletions and modifications identified. A strategic planning team was established in 1998 to review, improve and document the administrative and operating procedures of the agency. Numerous modifications to Commission rules are expected with the changes brought about by federal and state deregulation laws and changes in the federal transportation statutes. Human Resource Management The Industrial Age is behind us and the Information Age is upon us, with "knowledge" workers and "service" workers as the dominant groups in the private and public sector workforce. Taxpayers and consumers are demanding more accountability for the ways their monies are spent and the cost of the services they buy. However, research shows that capital alone cannot be substituted for labor and technology alone cannot generate higher productivity (Drucker, Managing for the Future, 1992). The worker is the critical path to success in today's society. The Georgia Public Service Commission is committed to professionalism and development of its staff. Recently, the Commission has enhanced human resource management through the following initiatives: z Reorganizing the divisions to flatten the hierarchy and to reduce middle management positions and increase customer service positions; z Using across-agency teams to increase awareness of its mission and responsibilities of each unit, to identify and share resources, to brainstorm and to solve problems, to participate in strategic planning and results-based budgeting activities, and to meet day-to-day workloads; z Controlling personnel actions with a tracking system to capture information and decisions about when, where, how and if positions are to be filled; z Evaluating salary parity by using a systematic parity model to study, identify and adjust salaries of current employees; z Allowing true flex time reporting to accommodate employees returning to the university setting to increase credentials; z Creatively tailoring training and workshops to meet the skills development needs of the staff, especially in the area of technology and program knowledge; and, z Reducing reliance on outside consultants by committing to professional advancement of PSC staff through substantive and technical training. In 1997 the Human Resources Office adopted this set of guiding principles: z Respect and protect the dignity of individuals. z Honor an employee's right to fair consideration in all aspects of http://www.psc.state.ga.us/pscinfo/major_obj98.htm 5/13/2004 Major Strategic Directions and Associated Strategic Objectives employment. Page 17 of 22 z Foster and apply fair management practices and principles. z Encourage and aid employees in developing their full potential. z Represent the interests of candidates and employees in all management plans and decisions. z Assist employees and management in understanding and fulfilling their mutual responsibilities and obligations. z Share freely our time and knowledge. z Treat information accepted in trust as privileged. z Preserve the integrity of the PSC and its employees. Human Resources Strategic Objectives In addition to these initiatives, the following strategic objectives and strategies have been identified to enhance the efficiency and effectiveness of human resource management at the PSC: Strategic Objective 1. To Create A Learning Organization. A learning organization can be created by connecting the Commission to its environment, empowering the staff towards a collective vision, establishing systems to capture and share learning, encouraging collaboration and team learning, promoting inquiry and dialogue, and creating continuous learning opportunities (Watkins, Creating the Learning Organization, 1996.) Strategic Objective 2. To Enhance Staff Development. Strategy a) Tie Staff Development To Performance. Professional development is critical to maintaining and enhancing the professional competence of the staff. The regulatory environment, composition of the industry and technology are continually changing. Unless staff is allowed to keep abreast of these new developments and interact with colleagues, the quality of regulation in Georgia will suffer. Areas for development should be tied to staff performance, staff assignments and Commission goals. This is being accomplished through the Performance Management System. Strategy b) Encourage Participation in Professional and Industry Associations. Staff should be encouraged to participate in state and national associations to obtain pertinent and timely information and to gain national recognition for the agency. Networking at conferences will provide contacts in other states and facilitate research efforts. Some of these associations include the National Association of Regulatory Utility Commissioners (NARUC), Southeastern Association of Regulatory Utility Commissioners (SEARUC), Commercial Vehicle Safety Alliance (CVSA) and National Association of Pipeline Safety Representatives (NAPSR). Strategy c) Continue Cross-Training and Succession Planning. Over the next three to five years several key employees at the Commission will be eligible for retirement. Efforts are underway to cross-train staff so that adverse effects of these anticipated retirements will be minimized. Experienced employees frequently have other job opportunities, so cross training should not be limited to those positions held by employees who may retire. http://www.psc.state.ga.us/pscinfo/major_obj98.htm 5/13/2004 Major Strategic Directions and Associated Strategic Objectives Strategy d) Train New Enforcement Officers. Page 18 of 22 For FY99 the General Assembly approved seven additional enforcement officers for the Commission. Together with vacancies in the Enforcement Unit the Commission will have thirteen new corporals to train this year. A training program has been developed which combines classroom and field training. Three officers have been dedicated to this effort. Strategic Objective 2. To Attract and Retain Qualified Staff. Through effective recruiting practices quality candidates will be hired. Due to the complexity of the Commission's work it takes several years and considerable resources before a new recruit can function independently and be a fully contributing member of the team. Periodic promotions or pay adjustments will be necessary to keep these individuals as members of the Commission's staff. Financial Management The Budget and Fiscal Office provides support to the entire agency by coordinating the budget process and performing the purchasing and accounting functions. These services are essential to PSC operations to obtain the resources required to fulfill its statutory duties and to ensure that an appropriate system of internal controls is in place to safeguard those resources. In the State Strategic Plan the Governor emphasizes that agencies must "focus their commitment and resources upon results and be willing to measure their performance and be accountable." The Budget and Fiscal Office implemented results-based budgeting, a process for identifying the desired outcome of the Commission's efforts and measuring progress toward achieving its goals. Fiscal and Budget Strategic Objectives The PSC has identified two strategic objectives: (1) To ensure the sound financial management of available resources; and (2) To minimize disruption during the two agency moves. The following strategies have been developed to achieve these objectives. Strategic Objective 1. To Ensure Sound Financial Management of Available Resources. Strategy a) Fully Implement Results-Based Budgeting (RBB). The Office of Planning and Budget commended the Commission on its RBB document and cited it as a model for other agencies. The PSC's Budget and Fiscal Office used a team approach to implement the first phase of RBB. The next phase involves measuring actual results and comparing them to the desired objectives. The success of the Commission's work units in achieving these objectives will be considered in future budget allocations to the agency. Strategy b) Develop an Operating Procedures Manual. A usable operating-procedures manual will be developed to document the activities currently performed by the Fiscal Office and ensure consistency in the future. The manual will also document the agency-wide procedures for staff. The procedures to be included in the manual have been identified. The next steps are to flowchart the process and identify areas for improvement. Strategy c) Develop and Implement an Improved Property Accountability System. A more accurate and usable inventory control system for Commission property will be developed. Safeguarding state property will also be a consideration in the design of this system. Strategic Objective 1. To Manage the Renovation and Relocation Process for the Commission. http://www.psc.state.ga.us/pscinfo/major_obj98.htm 5/13/2004 Major Strategic Directions and Associated Strategic Objectives Page 19 of 22 In late 1997 the Commission moved to temporary quarters while its permanent offices are being renovated. In mid-1998, Pipeline Safety was relocated from a satellite location to the Commission's temporary offices. These moves were completed with minimum disruption to work activities. During the next two years the PSC will continue to work closely with Georgia Building Authority and Department Of Administrative Services in designing the permanent offices and coordinating the return move. The PSC hopes to improve access to facilities, comply with the Americans with Disabilities Act, enhance security and improve the overall working environment at the Commission. To Demonstrate a Commitment to All Customers and Stakeholders The PSC has numerous customers and stakeholders with whom it interacts and, as a result, cannot operate in a vacuum. Because the Commission is a relatively small agency with limited resources, it must work cooperatively with a large and varied network of internal and external partners in the public and private sectors. Appendix F has detailed information about the Commission's initiatives that demonstrate its commitment to customers and stakeholders. The Commission demonstrates this commitment in two primary ways--by providing Consumer Protection and Public Information and Education. The Commission is a governmental agency whose business purpose includes exchanging information with customers and stakeholders. Although an extensive amount of highly complex and technical information is available for public consumption, it often must be explained so that it can be readily understood by the Commission's diverse customer base. It must then be made available through a variety of methods depending upon its intended audience. As regulated industries become competitive the PSC will be the principal source of objective information for utility consumers and the public concerning the identity, service area and performance of providers. The Commission continues to enhance its consumer protection function and to increase and intensify its agency-wide public information and education efforts. These efforts require increased teamwork and communication among staff in addition to enhanced training so that each staff member understands the role that he or she plays in helping the agency accomplish its objectives. Strategic Objectives Two strategic objectives relate to this area: (1) Enhance consumer protection and public information and education; and (2) Expand outreach efforts with external stakeholders. Several specific strategies have been identified to accomplish these objectives. Strategic Objective 1. To Enhance Consumer Protection and Public Information and Education Sweeping changes in utility markets and regulatory practices are creating a bewildering array of choices for consumers. At the same time, increased competition between companies has led to more aggressive marketing approaches and sharp business practices, including the unauthorized switching of long distance service (also known as ""slamming"). Consumer contacts with the Commission have increased fivefold in the past ten years, which amounts to an annual growth rate of 20.45%. Consumers are also becoming increasingly demanding, expecting quicker, more convenient and more personalized attention in response to their concerns. As the number of providers continues to rise, the Commission's role as protector will become increasingly more important. Providing education and disseminating public information are services integral to the PSC's consumer protection function. Without accurate and timely information consumers will not know their rights, how to protect themselves or what to do if their rights are violated. The Commission is expanding its public information and education efforts to educate customers and stakeholders about Commission decisions, new competitors and safety issues. The increasing numbers and types of inquiries received by the Commission prove that the confusion created by consumers suddenly facing a deregulated world and aggressive http://www.psc.state.ga.us/pscinfo/major_obj98.htm 5/13/2004 Major Strategic Directions and Associated Strategic Objectives Page 20 of 22 marketing tactics employed by telecommunications companies warrants a heightened need for extensive public education and information. The Commission is uniquely positioned to provide reliable, unbiased information to enable consumers to protect themselves from the myriad of scams and abuses already becoming prevalent within this competitive framework. Several strategies will be implemented to enhance consumer protection and public information and education. Strategy a) Track Consumer Response System Complaint Trends. The Commission will continue to use complaint trends and other relevant information derived from consumers and other sources to determine regulatory priorities, undertake investigations and initiate enforcement proceedings. The interactive Consumer Response System (CRS) for electric, gas and telecommunications matters, which was implemented in 1997, has enabled the Commission to: (1) determine the number and types of complaints filed against new telephone service providers before granting them a permanent certificate; (2) identify on a weekly basis those companies with three or more reported incidents of unauthorized changes in customers' carriers of choice; (3) produce charts showing complaint trends for each industry; (4) identify companies alleged to have placed unauthorized charges on customer bills (a practice known as "cramming"); and (5) to red flag emerging issues of concern to consumers. In the next year the Commission will make CRS system enhancements to expedite internal and external communications thus decreasing response time to consumers as well as increase the number and types of reports generated. The Transportation Division is in the process of developing an electronic consumer response system for complaints and inquiries about household goods and other carriers. Strategy b) Participate in the National Association of Regulatory Utility Commissioners (NARUC) Ad Hoc Committee on Consumer Affairs. The Commission will continue to participate in the activities of the NARUC Ad Hoc Committee on Consumer Affairs. The Committee's work produced: (1) a report that includes information from each state about what consumer education materials their commission uses, what methods they employ to educate consumers and how effective they believe those methods are; (2) a bibliography of consumer education materials that is accessible to all states via the NARUC home page; and (3) consumer education templates for energy (gas and electric), water, and telecommunications that states may use to create their own publications. The Commission will use these materials to expand the information available to Georgia citizens. Strategy c) Monitor Marketing and Other Practices of Utilities. The Commission will develop and establish benchmarks for investigating the practices of utility providers that may be acting in a manner inconsistent with applicable rules, tariffs or statutes. During the past year, staff identified and investigated telecommunication companies that were: (1) violating the county-wide toll-free calling rule; (2) engaging in deceptive telemarketing practices; (3) adding unauthorized charges to customer bills (cramming); and (4) changing customers' carriers of choice without authorization (slamming). The Commission has revoked or refused to renew telecommunications resellers' interim certificates because of slamming complaints. Another reseller was fined for using deceptive telemarketing tactics to slam consumers. Customer complaints about the practices of companies in the other regulated industries are also monitored and vigorously pursued. For example, in the household goods industry field operations will be enhanced with onsite inspections of carrier complaint records to ascertain whether the carrier is operating in the public interest. Strategy d) Install an Automatic Call Distribution System. This coming year the Commission will install an automatic call distribution system to replace its outdated manual system with funding obtained in the FY99 budget. Based on an average annual growth rate of 20.45% over the past ten years, approximately 64,293 contacts are projected for the coming year. This new equipment will help the Commission manage this increase in contacts, improve response time to callers, and provide the Commission with additional information such as caller wait time, number of calls received, length of calls and number of callers that hang up before receiving assistance. Installation of this system will be coordinated with http://www.psc.state.ga.us/pscinfo/major_obj98.htm 5/13/2004 Major Strategic Directions and Associated Strategic Objectives the needs of all units in the agency. Page 21 of 22 Strategy e) Continue the Transportation Division's Public Information and Education (PIE) Program. The Commission will continue to supply carriers and individuals with information about commercial vehicle safety and regarding requirements for insurance, registration, and procedures for filing complaints. PIE materials have been developed on numerous topics and include over 40 brochures or pamphlets. Additional consumer information brochures will be developed regarding responsibilities of motor carriers when moving household goods. This information will educate consumers about protecting their property against loss, making damage claims and reporting inadequate service from household goods and other carriers. Strategy f) Expand Electronic Access to Commission Information. The Commission has used its Internet web-site to expand the information available to its customers and stakeholders. The Commission's home page was modified to provide easier access and to include: (1) information about the electric, gas, telephone and transportation industries; (2) motor carrier and gas pipeline safety; (3) a consumer corner; (4) general information about the Commission; (5) job openings; (6) news releases on consumer issues and major policy decisions; and (7) electronic filing and document retrieval capabilities. At this time, the Commission's web page includes a household goods and consumer services report card that is updated weekly; a list of movers that is not certified by the PSC; a report on electric restructuring in Georgia; a consumer's guide to natural gas deregulation; a database of certified telecommunications providers and application forms; a newsletter for pipeline safety operators; information about rates for residential electric customers; and the most current annual report and strategic plan of the Commission. Additional information will be made available on this site to ensure that consumers and stakeholders have ready access to accurate and understandable information necessary to make informed decisions about utility services. Strategy g) Effectively Use the Media. Good media relations are essential to the Commission because the media serve as "gatekeeper," often controlling not only the content but also the actual information that is disseminated to the public. Good press relations make news reporters' jobs easier when they are fast, factual, frank, fair and friendly. The Commission will continue to work with the media to provide information to assist consumers and inform the public about policy decisions, safety matters and other utility issues. In addition, the Commission will develop a media tracking system for the purpose of evaluating the effectiveness of its relations with the press. Strategic Objective 2. To Expand Outreach Efforts With External Stakeholders. Because the Commission is a relatively small agency with limited resources, it must work cooperatively with a large and varied network of internal and external partners in the public and private sectors. Government organizations as well as many associations and advocacy groups have a stake in Commission decisions. Appendix F lists some of the Commission's stakeholders. Strategy a) Expand Use of Educational Seminars and Training on Safety Matters. Educational seminars with industry personnel are used by the Commission to promote an understanding and appreciation for safety regulations and to assure the public that industry and government are effectively minimizing the risk posed by natural gas pipelines. The Commission promotes safe and secure transportation of natural gas through participation in educational seminars and meetings with the industry. This statewide training includes in-depth compliance classes to educate operator personnel on proper safety procedures and practices. Such training helps ensure that the systems are installed, operated and maintained in a safe and responsible manner. To better inform the public and improve safety, the Commission is expanding the Natural Gas Pipeline Safety program to include more public education and safety training. The pipeline safety inspectors will provide safety instruction in public schools and speak to various civic groups about natural gas http://www.psc.state.ga.us/pscinfo/major_obj98.htm 5/13/2004 Major Strategic Directions and Associated Strategic Objectives Page 22 of 22 safety. To accomplish this objective on a statewide basis, pipeline safety inspectors now receive certification before they conduct training. Members of the Commission's Enforcement Unit participate in numerous meetings, seminars and public outreach programs annually where pertinent safety and hazardous materials information is disseminated. These meetings may be held at a motor carrier's facility, in formal seminar settings or through public outreach in a welcome center or other setting. Strategy b) Improve Government Relations. The Commission interacts with a large number of the different branches of state government, federal agencies, Georgia's congressional delegation and agencies in other states and nations. With the recent trends in government and regulation it is essential for the Commission to cooperate more closely with these various governmental entities. To increase awareness about the Commission's changing role and responsibilities, presentations were made to the Governor and his staff, to the legislative budget office and to the budget review and oversight committee staff of the general assembly in late 1997. In 1998 the Commission's legislative liaison worked with decision makers on key legislative matters, including, but not limited to, HB 71, which mandates the establishment by the Commission of a list of residential subscribers who do not wish to be called by telemarketers. Some Commissioners and staff members met with Georgia Representatives as part of NARUC's Day on the Hill to provide them with briefing materials on critical regulatory issues that may require federal legislation. Efforts such as these will be used to enhance government relations and ensure that consumers' interests are reflected in the state and federal decision-making processes. Strategy c) Work Cooperatively With Industries. The Commission will continue to collaborate with regulated companies, their related industry associations and consumer associations on emerging issues that will affect everyone, e.g., electric industry restructuring, number portability and Year 2000 compliance. http://www.psc.state.ga.us/pscinfo/major_obj98.htm 5/13/2004 Appendices Appendices Page 1 of 20 Appendix A Telecommunications Terminology The Telecommunications industry is famous for its vast number of acronyms and terms of art. The following terms are defined, as used in this document: Access Line is a two way, voice grade circuit which allows connection to the telecommunications network. A number of instruments can be connected to one access line but only one can be operated at a time (such as telephone, fax machine, computer modem or extension telephone). ADAD is an Automatic Dialing and Announcing Device that automatically calls and announces a recorded message to the subscriber. AOS is Alternative Operator Service. To provide operator service requires a license from the Commission. If the operator service provider is someone other than a LEC or IXC, then they are called Alternative Operator Service Providers. CLEC is a Competing Local Exchange Carrier who has a certificate to provide local exchange service in an area currently served by an incumbent LEC. COCOT is a Customer Owned Coin Operated Telephone. Independent providers own and operate coin operated telephones under certificates granted by the Georgia Public Service Commission. IXC is an interexchange carrier that provides access to the long distance network. A company can be both a LEC and an IXC. LEC is a local exchange company that provides the access line to the subscriber. The LEC provides local two-way voice service, including touch tone, call forwarding, and other enhanced services. An ILEC is one of the incumbent local phone companies not affiliated with BellSouth. TSOE is Telephone Service Observing Equipment which employers can use to monitor the telephone calls of their employees and customers. Such equipment must be licensed by the Commission. Universal Access Fund is a statutory state fund that is used to phase down the intrastate access charges to interstate levels by giving a subsidy to LECs for providing local telephone service below cost. The fund is administered by the Georgia Public Service Commission. Appendix B--Telecommunications Industry in Georgia Telecommunications is an industry vital to the economy of the state and to the quality of life of our citizens. Almost every family has a telephone (94%). There are over 3,800,000 access lines in Georgia and the number is growing dramatically as more homes and businesses add multiple lines for fax, computer modems, and Internet access. Total intrastate revenue from the end user in Georgia is in excess of $2.5 billion. The PSC's Telecommunications Section handles telecommunications matters in conjunction with other units of the Commission, such as its Consumer Affairs Office. http://www.psc.state.ga.us/pscinfo/appendices98.htm 5/13/2004 Appendices Page 2 of 20 The Georgia Public Service Commission's role in this vital industry is determined by Georgia's Telecommunications and Competition Development Act of 1995 (O.C. G. A. 46-5-160 et seq.) and the federal Telecommunications Act of 1996. The primary goal of both of these authorities is to replace regulated monopoly service with a competitive market. The PSC has created a Telecommunications Strategic Planning Team that proposes and ultimately executes approved plans for the regulatory changes necessary to implement these laws. As Georgia has moved to a competitive market, the Commission has certificated 86 alternate local exchange providers, 537 resellers, 152 AOS providers, 33 Interexchange Carriers, and 575 COCOT providers. The Commission has also resolved 4 arbitration cases and approved 256 interconnection agreements. The Commission has continued to administer a Universal Access Fund and ordered further reductions in rates for intrastate tolls. The Commission has completed implementation of HB 888, which further expanded the availability of Extended Area Service (EAS) by approximately 750 routes. Both the state and federal Acts provide the framework for the strategic direction for telecommunications. In passing the state Act, the Georgia Legislature found that "[i]t is in the public interest to establish a new regulatory model for telecommunications services in Georgia to reflect the transition to a reliance on marketbased competition as the best mechanism for the selection and provision of needed telecommunications services at the most efficient pricing." See O.C.G.A. 46-5-160(a)(1). In passing the federal Act Congress stated tat its purpose was "[t]o promote competition and reduce regulation in order to secure lower prices and higher quality services for American telecommunications consumers and encourage the rapid deployment of new telecommunications technologies." O.C.G.A. 46-5-163 gives the Commission the authority to issue Certificates of Authority to competing local exchange carriers. Although the Commission currently issues Certificates of Authority to qualified applicants, granting the certificates is only the first step in the process. Another critical step centers upon access being secured by alternative suppliers to the existing networks. The Commission has a procedure in place which provides for the timely processing of applications. The Commission has been successful in certifying numerous alternative providers of local exchange service, interexchange (IXC) service, alternative operator service (AOS) and customer owned coin operated telephones (COCOTs). There currently exists a very active competitive market in the interexchange or toll business. A major step toward enhancing competition may occur if BellSouth is certified as meeting the requirements of the federal Telecommunications Act of 1996 for entry into the interLATA interexchange business. On May 27, 1998 BellSouth filed a Notice of Intent to submit an application to the Federal Communications Commission (FCC) seeking in-region interLATA authority. The Commission expects to conclude its evaluation of BellSouth's compliance with the Federal Telecommunications Act fourteen point checklist in late September 1998. As of June 30, 1998 CLECs were providing service to 47,501 customers in Georgia. The total number of access lines provisioned by CLECs is 104,161. The Commission expects continuing improvement in these numbers during the latter part of 1998, and subsequent years, as more CLECs start up business. The number of customers served by CLECs will continue to accelerate with the additional development and perfection of electronic interfaces, and full implementation of number portability. The Georgia Public Service Commission's June 4, 1998 Order directed BellSouth to implement additional enhancements to its existing electronic interfaces. The majority of these enhancements will be completed by the end of 1998. The permanent solution for telephone number portability will be completely installed in the metropolitan Atlanta calling area by August 31, 1998. Additionally, final cost-based rates for BellSouth were adopted by the Commission in September 1997. The Commission is continuing to working with the Tier 2 LECs to develop a costing model which can be used for setting cost based rates for interconnection and UAF subsidy. This model should be operational by February 1, 1999. This date coincides with the proposed revisions to the Universal Service Fund administered by the Federal Communications Commission. Both of the laws address reasonable rates for rural and high cost areas. The Georgia Act provides for a Universal Access Fund which is administered by the Georgia Public Service Commission. Funding comes http://www.psc.state.ga.us/pscinfo/appendices98.htm 5/13/2004 Appendices Page 3 of 20 from an assessment on all intrastate revenues to the end user in Georgia. At the current time the money is being used to fund the phase down of intrastate access charges for Tier 2 companies to the interstate level as it existed on July 1, 1995. This is being done over a five-year period, the second of which the Commission will address in 1997 (O.C.G.A. 46 -5-166(f)). The Commission completed year three of the phase down July 1, 1998. The final year for the phase down is 2000. As we progress toward 2000 and beyond, the PSC will phase out this part of the fund and replace it with a permanent cost-based fund that will ensure reasonable rates for all Georgians (O.C.G.A. 46-5-167). The Telecommunications Act of 1996 lends itself to furthering this goal at the federal level. The Commission plans to use the state Universal Access Fund in conjunction with the federal Universal Service Fund to ensure that rural Georgians pay reasonable rates for their basic services. The Telecommunications Act of 1996 defines reasonable rates as comparable to urban rates for similar services. The Commission has adopted this definition in administering the state fund. The Commission must review the definition of basic local exchange services under O.C.G.A. 46-5-162(2). It is already technologically obsolete with a 9600 baud data/fax communications requirement. The Commission expects to continue to address this issue in late 1998. The strategic directions contained in these laws are consistent with the State's plan for economic development. The Commission has adopted as one of its strategic directions "to ensure that reliable telecommunications, natural gas, electric and transportation services are available and reasonably priced either through effectively competitive markets or through economic regulation." Appendix C--Natural Gas Industry in Georgia The Natural Gas Industry in Georgia is in transition from a regulated monopoly to a competitive market. The Commission adopted policies relating to natural gas restructuring in May 1996. Consistent with the principles outlined in its policy statements, the Commission actively participated in the Legislative Study Committee on Natural Gas Deregulation. The General Assembly passed Senate Bill (SB) SB 215, "The Natural Gas Competition and Deregulation Act of 1997," a plan for restructuring the natural gas industry from a monopoly service to a competitive market. The PSC's Natural Gas Strategic Planning team has developed a plan to implement the provisions of SB 215 and the Commission has approved five rulemaking dockets to initiate provisions of the law. Over 1,400,000 customers use natural gas supplied by two investor- owned natural gas utilities; their total revenues last year were approximately $1.5 billion. The municipal gas systems are not directly affected by this legislation. Natural gas is a critical input into a number of industrial processes and is essential for economic development. The Commission believes that the best way to have a healthy market is to ensure that real competition exists. The Commission's decisions will have consequences that will carry forward for years to come. The primary goal of the Commission is to enhance the transition of the natural gas market in Georgia from a regulated monopoly to a competitive marketplace that benefits the consumer, improves economic efficiency, promotes fairness, and maintains safety and reliability. The overall objective is to ensure that the benefits of competition (lower prices, more choices and better service) accrue to a majority of end users. Commission regulation and utility compliance should both be minimal, yet consistent with this objective. To be successful in this effort, the Commission must balance a broad range of interests. The Commission has received input from all affected parties by issuing notices of inquires, conducting workshops, issuing rulemaking and processing cases filed under the law. The Commission has completed the process of developing formal rules, filing requirements, procedural rules, regulatory policies and guidelines. In passing the "Natural Gas Competition and Deregulation Act of 1997," the Legislature found "It is in the public interest to establish a new regulatory model for the natural gas industry in Georgia to reflect the transition to a reliance on market-based competition as the best mechanism of the selection and provision of http://www.psc.state.ga.us/pscinfo/appendices98.htm 5/13/2004 Appendices Page 4 of 20 natural gas services at the most efficient pricing." O.C.G.A. 46-4-151(a)(1). This law was the result of changes to the natural gas industry from FERC's efforts to deregulate the interstate natural gas pipelines and producers. A gas company may file an application with the Commission to have its rates, charges and services regulated under an alternative form of regulation (O.C.G.A. 46-2-23.1). The Commission is authorized to either approve or deny a gas company's proposal. By statute, this alternative regulation must be performance-based. While this code section grants the gas companies the option to file at any time for this performance-based regulation, the Commission is planning to conduct a proceeding to determine the best form of performance regulation. This determination will be important because the delivery of natural gas (i.e., the distribution or "pipes" business) will always be regulated under this statute. O.C.G.A. 46-4-153 gives the Commission the authority to issue Certificates of Authority to competing marketers. The rules and regulations regarding Certificates of Authority were adopted December 31, 1997. Random assignment of customers to certificated marketers will signal the complete transition to a competitive market and the local distribution company will be relieved of the duty to sell gas to the end user. The Commission will finalize processing applications for Certificates of Authority for competing sellers of natural gas by September 1, 1998, the beginning of the heating season. O.C.G.A. 46-4-154 allows a gas company to file a notice of election, which is an application to establish just and reasonable rates, including separate rates for unbundled service, using straight fixed variable rate design. Unbundling is a major step in the process of moving to competition. Each element of the LDC's services is to be priced separately, allowing customers to purchase similar services from a competitor. AGL made such an election in November 1997 and the Commission issued its final order in this matter in June 1998.. When certain conditions are met under the new Georgia law, the local gas company will no longer be required to sell gas to retail customers. The Commission has established a methodology for assigning to the new marketers any firm retail customers who have not yet chosen a marketer. This provision is designed to allow the local distribution company out of the "market function." Even though AGL's territory will be open to competition from gas marketers in late 1998, the Commission does not expect to make such assignments until 1999 or 2000, at the earliest, as it will take time for the condition precedents to occur. O.C.G.A. 46-4-158 et. seq. provides for certain duties of the electing distribution company. Once the Commission determines that market conditions indicate effective competition, the electing distribution company (EDC) will become a "pipes" business delivering the gas and performing certain other functions. The sale of the gas itself will be an unregulated business, with only competition to control the price. The price of the delivery service that the EDC sells will be regulated by the Commission. In addition the Commission is charged with the responsibility of overseeing the competitive market and resolving disputes between the marketers and the EDC and disputes between the marketers and customers. As with telecommunications, this will add significantly to the agency's caseload and consumer call volumes. O.C.G.A. 46-4-161 provides for the establishment of a "Universal Service Fund" by the Commission. The fund has two purposes: (1) To cover part of the uncollectible losses of the marketers; and (2) To provide funds to expand the system of the EDC to areas not currently served by natural gas. The strategic direction contained in this law is consistent with the Governor's strategic priority of economic development and with the Commission's strategic direction "to ensure that reliable telecommunications, natural gas, electric and transportation services are available and reasonably priced either through effectively competitive markets or through economic regulation." Appendix D--Electric Industry in Georgia Electricity is a vital energy form to the economy of the state and to the quality of life of our citizens. Of the http://www.psc.state.ga.us/pscinfo/appendices98.htm 5/13/2004 Appendices Page 5 of 20 three utility industries, the electric is the most universal and most essential. Virtually everyone in the state has electricity. Like the other two industries, the electric industry is in a state of change. The PSC expects that the electric industry in Georgia may be restructured in the future. Unlike the other two industries, there is no new legal framework to determine the Commission's strategic direction in the electric industry. Therefore, the existing legal framework reflects the present state of monopoly regulation. Although there is limited flexibility under these laws, the Commission has taken the initiative to examine restructuring in Georgia. The Commission completed a series of electric restructuring workshops and published a report that identified issues that must be resolved if competition is to come to the electric industry. The Commission has begun addressing issues in generic proceedings related to: (1) functional unbundling which would require restructured rates to more closely match cost to provide service; and, (2) stranded cost by determining the type and amount of asset which could possibly qualify for recovery. The Commission plans to investigate additional issues in the coming year. Although there is no state or federal legislation mandating restructuring, the Commission reflects in its decisions this eventuality by its efforts to mitigate the potentially harmful effects associated with re-regulation, such as: z In the three-year accounting plan for Georgia Power Company, the Commission ordered the Company to apply all earnings above the approved level to accelerate depreciation of highcost plant facilities. In 1997, this action resulted in approximately $135 million being applied to reduce costs being charged to ratepayers for the Vogtle nuclear plant. z In deciding Savannah Electric and Power Company's over-earnings case, the Commission approved the creation of a regulatory liability account which provides for the mitigation of potentially stranded costs and regulatory assets should the Commission determine that they exist and are properly recoverable by Savannah. z In the Georgia Power Company's and Savannah Electric and Power Company's 1998 Integrated Resource Plan and Certificate Approval proceedings, the Commission has ordered the Companies to address the effects of restructuring on the Companies' plans to meet future demand and to maintain system reliability. z The Commission will also consider restructuring in its decision (scheduled for December 1998) in the Georgia Power Company 1998 Rate Case and alternate rate filing. In this rate case the revenue requirements for Georgia Power are expected to be significantly reduced. The modified earnings sharing plan that the Company is currently under will expire at the end of 1998, so the Commission will decide whether to extend, modify or terminate the plan. Pursuant to O.C.G.A. 46-3A-1 et seq., the Integrated Resource Planning Act, the Commission reviews and approves Integrated Resource Plans filed by the investor-owned utilities on a three-year cycle and approves applications for certificates as indicated by need. During 1998 the Commission reviewed and approved resource plans for both IOU's and will make a decision on Savannah's application for a certificate for a power purchase contract. The Commission continues to monitor Georgia Power Company's Residential Load Management Program, a program designed to reduce peak load by controlling participants air-conditioning usage during peak periods. While the Commission has rate regulation of only the investor-owned utilities, Georgia Power Company and Savannah Electric and Power Company (which serve approximately 1,650,000 homes and businesses and have combined retail revenues of approximately $3.3 billion), the Commission oversees territorial assignments for all suppliers pursuant to O.C.G.A. 46-3, the Georgia Territorial Electric Service Act. The Commission reviews and approves requests for transfer of retail electric service, decides disputes over territories and customer choice, and maintains the electric supplier territorial maps for each county in the State. In a case http://www.psc.state.ga.us/pscinfo/appendices98.htm 5/13/2004 Appendices Page 6 of 20 brought by Sawnee EMC against Georgia Power that involved Georgia Power's provision of service to an apartment complex located in Sawnee's territory, the Commission decided to allow Georgia Power to continue serving the complex as one customer thereby allowing the aggregation of individual loads into one large load that was eligible to choose its power supplier (this case is currently on appeal). This decision allows even greater retail competition than was envisioned before. The Commission also approves the financing of rural cooperatives. Major issues to be addressed in 1998 and 1999 by the PSC for the electric industry are market power, structural separation of the currently vertically integrated utilities, development of an independent system operation (ISO), maintaining reliability and stranded cost recovery. The strategic directions contained in this plan are consistent with the State's plan for economic development and with the Commission's strategic direction "to ensure that reliable telecommunications, natural gas, electric and transportation services are available and reasonably priced either through effectively competitive markets or through economic regulation." Appendix E--Pipeline Safety in Georgia The Pipeline Safety Office is responsible for enforcing safety regulations for natural gas pipelines and liquefied natural gas (LNG) facilities. The PSC's authority over distribution and transmission systems within Georgia extends from the interstate transmission pipelines to the outlet of each customer's meter. The Georgia Public Service Commission has jurisdiction over two investor-owned natural gas distribution companies--Atlanta Gas Light Company with 42 separate inspection units and United Cities Gas Company with two separate inspection units. In addition, the Commission monitors the safety of 123 master meter operators, 83 municipal systems, 18 direct sales operations, and five LNG plants. These systems include more than 600 miles of transmission pipeline and over 60,000 miles of distribution mains and services serving approximately 2 million gas customers. The Commission's involvement with pipeline safety began in 1970 following enactment by Congress of the Natural Gas Pipeline Safety Act of 1968, which established safety standards for gas systems. This law allowed state agencies to implement a Gas Safety Program with the cooperation of the federal government. Achieving operator compliance with pipeline safety regulations is critical to preventing accidents and injuries to the general public. Accordingly, the Pipeline Safety Office places a great deal of emphasis on the review and monitoring of the natural gas operator's construction and maintenance work. In determining the risk potential and priority of inspections, the Pipeline Safety Office considers the following factors: z The ratio of total steel pipe to coated steel pipe; z The ratio of total steel pipe to cathodically protected steel pipe; z Leaks per mile of pipe; z Leaks per number of services; z Unaccounted for gas volumes and percentages; z The number of accidents or facility failures; http://www.psc.state.ga.us/pscinfo/appendices98.htm 5/13/2004 Appendices z Footage of cast iron pipe in the system; and Page 7 of 20 z Past history of the operator. The Pipeline Safety Office performs the inspections described below and places a great deal of emphasis on the review and monitoring of the natural gas operators' construction and maintenance work. The Pipeline Safety Office also conducts training of system operators to ensure compliance with safety regulations, thereby reducing the amount of unaccounted gas in the systems. Comprehensive Inspections Conduct on-site examinations and reviews of the natural gas operator's maintenance plan, programs, records, physical plant and work in progress. Special Investigations Perform field verification and operational functions of the gas operator's district regulator stations, emergency valves, cathodic protection, odorization and material used in the construction of mains and services lines. Follow-up Inspections Review operator's corrective action to address violations of the Minimum Federal Safety Standards. This inspection is conducted sixty days after notification of a violation. Construction Monitoring Monitor the design, testing and field construction activities for the installation of new service lines, mains and large transmission pipelines. Training Provide training for operators through seminars and during inspections on cathodic protection, construction and maintenance of regulators, overpressure protection, odorization and emergency procedures for complying with the Federal Regulations. Incident Investigations Investigate incidents when an operator notifies the Pipeline Safety Office of an incident that has occurred on its gas system where death, personal injury requiring hospitalization or property damage of $5,000 or more is involved. Drug and Alcohol Testing Monitor the operators' compliance with testing each of their employees for the presence of prohibited drugs and alcohol at the work place and maintaining an employee assistance program. The Pipeline Safety Office has an experienced, highly trained and professionally educated staff consisting of a Supervisor, Program Assistant and five (5) Gas Pipeline Safety Inspectors. The effectiveness of the Pipeline Safety Office is centered around the professional and technical education and training of its staff. All have received training in engineering and are required to complete and pass eight (8) one-week courses provide by the Federal Transportation Safety Institute within three years of employment. These courses provide compliance information, inspection techniques and enforcement procedures necessary for the inspection of natural gas distribution systems or liquefied natural gas facilities. This training is available only through the federal government and each inspector is required to maintain eligibility status in accordance with federal requirements. http://www.psc.state.ga.us/pscinfo/appendices98.htm 5/13/2004 Appendices Page 8 of 20 The Commission has adopted a strategic direction: "To Enhance Public Safety Through the Pipeline and Transportation Safety Programs." The PSC's strategic direction for pipeline safety is consistent with the State's strategic priorities of public safety and economic development since businesses and individuals demand safe and reliable natural gas service. Appendix F--Commission's Customers and Stakeholders In addition to demonstrating a commitment to utility customers through consumer protection initiatives, the Commission recognizes the need to serve its other external and internal customers and stakeholders. The Commission does not work in isolation. Because the Commission is a relatively small agency with limited resources, it must work cooperatively with a large and varied network of internal and external partners in the public and private sectors to communicate with its customers and stakeholders. Internal customers of the PSC include Commissioners and Staff and the PSC's primary external customers include: z Georgia citizens and businesses that receive services from utilities regulated by the Commission, z Regulated companies (e.g., gas pipeline operators, electric, gas, telephone, pay telephone, passenger bus, limousine, household moving and railroad companies, and users of automatic telephone dialing and announcing devices and telephone observing equipment); and, z Intervenors in cases before the Commission (e.g., law firms, citizens advocacy groups, and other organizations.) Some of the PSC's stakeholders include: a) Georgia Citizens. b) Branches of Local and State Government: i) Governor and Lt. Governor; ii) Department of Administrative Services (DOAS); iii) Georgia Emergency Management Agency (GEMA); iv) State Merit System; v) Governor's Office of Consumer Affairs and Consumers' Utility Counsel Division (CUCD); vi) Attorney General's Office (AG); vii) Department of Aviation Ground Transportation; viii) Department of Medical Assistance (DMA); ix) Secretary of State's Office; x) Office of the Commissioner of Insurance; and http://www.psc.state.ga.us/pscinfo/appendices98.htm 5/13/2004 Appendices xi) Utilities Protection Center (UPC). c) Members of the General Assembly and their respective staff. d) Congress and federal agencies: i) Federal Communications Commission (FCC); ii) Federal Energy Regulatory Commission (FERC); iii) Federal Department of Transportation (DOT); and iv) Department of Energy (DOE). e) The Media. f) Associations and Advocacy Groups: i) National Association of Regulatory Utility Commissioners (NARUC); ii) Americans with Disabilities(ADA); iii) National Federation of Independent Businesses (NFIB); iv) Building Owners and Managers Association (BOMA); v) Campaign for a Prosperous Georgia (CPG); vi) Commercial Vehicle Safety Alliance (CVSA) vii) Cooperative Hazardous Materials Enforcement Development (COHMED); viii) Edison Electric Institute (EEI); ix) Gas Research Institute (GRI); x) Georgia Center for Advanced Telecommunications Technology (GCATT); xi) Georgia Textile Manufacturers Association (GTMA); xii) Georgia Telephone Association (GTA); xiii) Georgia Motor Trucking Association (GMTA); xiv) Georgia Mover's Association (GMA); xv) Georgia Municipal Association (GMA); xvi) Georgia Industrial Group (GIG); xvii) Georgia Municipal Association (GMA); xviii) Municipal Electric Authority of Georgia (MEAG); http://www.psc.state.ga.us/pscinfo/appendices98.htm Page 9 of 20 5/13/2004 Appendices xix) Municipal Gas Authority of Georgia (MGAG); Page 10 of 20 xx) National Association of Pipeline Safety Representatives (NAPSR); xxi) Southeastern Legal Foundation; xviii) Southern Electric Restructuring Group Each of the regulated industries is undergoing change. To achieve success in implementing change today, the components of change must be translated into a language that each audience can understand and then communicated in a way that ensures apparent and appealing benefits. Each customer and stakeholder group (target audience) has unique needs, fears and emotional "hot buttons" regarding restructuring in the electric, natural gas, and telecommunications industries, increased marketplace competition, economic growth, trucking accidents, natural gas pipeline explosions, and consumer rights and responsibilities. Each group's needs must be identified and satisfied in order to achieve acceptance and understanding of the Commission's role in balancing Georgia's economy, and ensuring consumer choice of adequate, reliable utility services at reasonable rates. Appendix G--Consumer Protection and Public Information and Education The Georgia Public Service Commission's Consumer Affairs program was established in 1973 to analyze electric, gas, and telephone complaints and to ensure that regulated monopolies and other companies operated in conformity with Commission rules and regulations. In recent years, in light of budget and manpower constraints as well as the introduction of competition in previously regulated industries, the Commission's Consumer Affairs Office has streamlined its complaint-handling processes, increased its use of technology and intensified its consumer protection, public information and education efforts. The PSC has a duty to inform and to educate the public about the onset of new regulatory environments and the roles, responsibilities, structure, functions and missions of the Commission therein. Staff must not only assist consumers when questions or problems arise, or when they have become victimized by unscrupulous marketers, but has an inherent responsibility to Georgia's citizens to educate them on how to prevent these problems from ever occurring. This education is likely to take many years, as we are charged with changing the buying habits and patterns of several generations of citizens. The current Commission has also begun to view itself as a vehicle for information and as an educating organization. Therefore, a greater emphasis on educational activities is expected to be demonstrated in the years to come. Within the Commission, the Consumer Affairs Office is charged with educating Georgia's consumers how to make informed decisions and protect themselves in what has suddenly become an environment in which buyers must beware. This Office can closely monitor and build educational campaigns around trends in consumer inquiries. The Commission uses Consumer Affairs as one of its primary output mechanisms for getting information to consumers. Consumer Affairs' duties include: (1) handling consumer complaints and reporting on those activities; and (2) educating consumers as to their utilities' rights and responsibilities and providing them with the information necessary to operate and make vital decisions in traditional and developing competitive environments. Consumer Protection The PSC's most important future role will be to protect consumers by arming them with facts to make informed decisions about utility purchases and assisting them in mediating disputes with service providers. Competitive markets for goods and services generally depend on competition itself to ensure that prices are fair, that market access is nondiscriminatory, and that consumers are not misinformed about their choices. The introduction of competition into many of the traditionally monopolistic utility markets will place pressure on providers to keep prices low and service quality high, but also will require regulatory vigilance. While http://www.psc.state.ga.us/pscinfo/appendices98.htm 5/13/2004 Appendices Page 11 of 20 competition is still developing, it is necessary to ensure that entities are able to compete meaningfully and effectively. In addition, there may always be opportunities for business to take advantage of customers who are not well informed or who lack access to competitive services when service is poor or prices are high. The Commission remains uniquely capable of providing these services to utility consumers. Because consumer conflicts will increase as markets grow, the Commission has begun to modernize and improve its handling of complaints and inquiries concerning traditional utility practices. The Commission must also be prepared to address new commercial relationships and issue relating to fair business practices that are likely to arise with the continued movement toward greater competition in various markets. It is critical for the Commission to confront these changes because of the introduction of local telephone and natural gas competition. The Commission will continue to consolidate and intensify its efforts to serve the interests of individual consumers as well as undertake actions to address broad consumer interests. For example, during the past year, Consumer Affairs used its consumer contact data to: (1) undertake investigations and initiate enforcement proceedings against companies with an excessive number of "slamming" (unauthorized change in a customer's carrier of choice) and "cramming" (unauthorized charges placed on customer bills) complaints; (2) red flag emerging issues such as increases in customers gas bills; and (3) monitor for the utilities division telecommunications staff complaints against companies with interim certificates. It is expected in the upcoming year that efforts such as these will be expanded as the deregulation of the natural gas market begins to unfold. Commissioners and every PSC employee are involved in consumer protection at some level. The Commission is a resource for consumers when problems or conflicts with service providers occur. Most often, consumers call, write, or visit the Commission for one of six reasons: z to get information; z to complain about their utility service or bills; z to report unfair utility practices; z to seek help in resolving a dispute with their utility; z to voice dissatisfaction with Commission policies or practices; and/or z to participate in cases. Of the 55,377 consumer calls and letters received in 1997, members of the Commission's Consumer Affairs Office provided assistance in 33,643 of them. The remaining contacts were transferred to Commissioners, staff or other state agencies. These 33,643 consumer contacts represent an overall 16% increase in contacts since 1996. For 1998, a 20% increase in contacts is projected as a result of legislation implementing the telemarketer "No Call List" and the deregulation of the natural gas industry. The 10-Year Workload Comparison chart that follows hereinafter shows that consumer contacts have increased fivefold during the last ten years with an annual growth rate of 20.45%. Year 1989 1990 1991 1992 Contacts 7,019 12,178 15,776 17,183 http://www.psc.state.ga.us/pscinfo/appendices98.htm 5/13/2004 Appendices * Through June 30, 1998 1993 1994 1995 1996 1997 1998* 15,939 17,015 22,183 29,005 33,643 37,512 Page 12 of 20 http://www.psc.state.ga.us/pscinfo/appendices98.htm 5/13/2004 Appendices Page 13 of 20 With more than 70% of the contacts classified as General Information, it is crucial that the Commission position itself to be able to provide consumers with information that will enable them to make informed choices regarding their respective utility purchases. By examining the types of contacts logged into the Commission's database system for the above-referenced period, it appears that the most common concern shared by consumers relates to the issue of billing. The Commission plans to consolidate and intensify its efforts to serve the interests of individual consumers as well as undertake actions to address this and other shared consumer interests. Public Information and Education Initiatives Public utility commissions exist to serve the public at large, a public that is composed of groups who often have contradictory goals. The objective of a public utility commission is not to maximize the interest of any customer but to prevent any customer from having its interest irreparably damaged. Because commissions exist to find a balance between these incompatible goals, it might be argued that the mission of commissions is not to maximize customer satisfaction but to minimize customer dissatisfaction. One way to accomplish this is to educate the public regarding the new regulatory environment. The PSC has expanded its public information and education efforts over the last several years. While setting 1995 agency goals, education and marketing were established as two directions for the PSC to pursue in order to enhance communications with customers and stakeholders. Because some PSC staff were already engaged in a number of outreach and education activities, a Communications Team, which included representatives from all Commission program areas (e.g., transportation, electric, gas, telecommunications, natural gas pipeline safety, consumer affairs, public information, legislative liaison, Commissioners' offices, personnel, and administration) was established to explore how we communicate who we are, what we do, and to whom it should be communicated. 1995 public awareness projects: (1) Surveying staff to determine its thoughts on public information; (2) Informally interviewing some of the stakeholders and customers; (3) Developing a matrix to define primary audiences and proposed tools to reach each audience; (4) Writing the PSC mission; (5) Formulating a PSC logo and slogan; and (6) Establishing objectives for public awareness project priorities in 1996. 1996 public awareness projects: (1) Publishing and disseminating to a large number of internal and external customers and stakeholders a consumer friendly 1995 annual report, revised PSC general brochure, and Commissioners' bios brochure; http://www.psc.state.ga.us/pscinfo/appendices98.htm 5/13/2004 Appendices (2) Developing a PSC home page to provide electronic access to the Commission's cases, orders, calendars, news releases, and other information; (3) Arranging a video teleconference, which included many of the PSC's customers and stakeholders and used the Board of Regents' GSAMS site with a link to the University of Georgia, to provide information on forthcoming competition in telecommunications markets and working with the Cable Television Association to disseminate the recorded program; (4) Developing and disseminating several public service announcements to make consumers aware of blind spots for truckers and how they can help prevent accidents by staying out of these "No-Zone" areas when passing big rigs on the highways; and, (5) Providing training to PSC staff who spoke to civic and other groups about the changing role of the Commission and the new choices consumers will face in the future. 1997 public awareness projects: (1) Working cooperatively with the Utilities Protection Center to use funds from the U.S. Office of Pipeline Safety to raise public awareness in schools and among contractors about calling before digging to prevent underground utility accidents and protect lives and property and to develop a statewide utility mapping system; (2) Holding public hearings throughout the metro Atlanta areas to obtain citizen input on a new area code; (3) Updating existing public information materials, and mailing and fax lists; (4) Creating a consumer guide to natural gas deregulation; (5) Development of Education and Training Assistance packet for dissemination to motor carriers that gives them an overview of safety regulations and requirements with which they must comply; (6) Creating a brochure on "slamming"; (7) Publishing a consumer advisory on misleading telemarketing tactics; (8) Holding a series of workshops on electric restructuring; and, (9) Working with the media on news items of interest to consumers. Page 14 of 20 http://www.psc.state.ga.us/pscinfo/appendices98.htm 5/13/2004 Appendices Appendix H--PSC's 1998 Information Technology Plan Page 15 of 20 Georgia Public Service Commission Information Technology Strategic Plan July 1, 1998 Executive Summary The Georgia Public Service Commission's strategic direction for information technology (IT) is: "To use information technology to be accessible to the public and to improve the internal operations of the agency." The two primary means for implementing this strategy have been to develop a wide area network (WAN) and an on-premises web site. Our advanced IT platform that connects internal users has improved communications, enabled data sharing, reduced paper records, promoted redesign of work processes, permitted telecommuting, enhanced data analysis and refined project management. Our on-premises web site has promoted electronic transfer of documents, increased accessibility to the public, enhanced consumer and public education, and improved external communications. Five strategic objectives relating to information technology have been adopted by the PSC: z Standardize hardware and software; z Enhance internal and external interconnections; z Develop and implement applications to improve efficiency and to ensure the reliability and integrity of information; z Instruct users; and z Develop in-house information technology support. Each of these are long term, flexible objectives. The PSC must continue to react to changes in the IT industry to avoid obsolescence and to ensure that our systems and applications evolve as the sophistication and needs of users change. Linkages Between Information Technology and Agency Business Plan IT has been fully integrated into all aspects of the day-to-day work processes--communications, data management, data analysis, scheduling and case processing. Continuity of IT operations and timely completion of Y2K projects are critical to accomplishing the agency's mission. The mission of the PSC is to http://www.psc.state.ga.us/pscinfo/appendices98.htm 5/13/2004 Appendices Page 16 of 20 ensure that consumers receive the best possible value in telecommunications, electric and natural gas services and to improve transportation and pipeline safety. The five strategic directions in the agency's business plan relate to: 1) economic regulation of utilities; 2) transportation and pipeline safety; 3) efficient internal operations; 4) customer service; and, 5) information technology. Achieving the objectives in these areas is highly dependent upon IT resources and projects. See GANTT Chart in Appendix A for time line on major IT projects discussed below. Economic Regulation Utility regulation has changed dramatically as the telecommunications and natural gas industries have been opened to competition. The number of providers in these markets and the number of cases processed by the PSC have steadily increased. Over a thousand cases were filed in the past year at the PSC. Similar changes are expected if the electric industry becomes more competitive. Major IT projects directed at supporting key objectives for the economic regulation of telecommunications, electric and natural gas utilities are: Filing and Case Tracking System (FACTS)--A LAN-based database of all PSC dockets. A list of all documents filed in each docket, the case schedule and the staff assigned will be available once this system is fully operational. The first phase of this project, the document tracking module, has been in place for a year. The public can immediately access and download any document via the internet if an electronic copy has been filed with the PSC. A contract has been approved to make minor modifications to the first module and to begin programming the second module which will track case management information. Telecommunications Certificated Providers Database--A LAN-based database of all companies certificated to provide telecommunications service in Georgia. This project is in the final stage of implementation and the information is already available on the PSC web page. Natural Gas Marketers Database--A LAN-based database of all companies certificated to provide natural gas service in Georgia. This program is in the early stages of development. When completed the information on natural gas marketers will be available on the internet. Transportation Safety Several major IT projects support key objectives for transportation safety. Over the last few years the Transportation Division has been migrating from main-frame to LAN-based programs. Those that remain on the main-frame will be replaced with Y2K compliant programs within the next year. In addition, all of the Division's programs need to be integrated using a standardized interface. Benefits of this integration will include eliminating duplicate records and data entry, more efficient processing and enhanced reporting capabilities. Currently, the programs do not allow for customized database searches to identify carriers with a particular profile. Without the ability to sort and extract useful data staff analysis is limited and questions from the public go unanswered. Motor Carrier Certification System (MCCS)--A main-frame program that maintains the unique numbering system to identify carriers included in all of the Division's databases. This directory is the key to using both the electronic and paper filing systems. This program needs to be replaced with LAN-based, Y2K compliant program. Certificated Carriers--A main frame program used to track certificated "for hire" commercial motor carriers and the status of their insurance coverage. These carriers include household goods, bus and limousine carriers. This http://www.psc.state.ga.us/pscinfo/appendices98.htm 5/13/2004 Appendices program needs to be replaced with a LAN-based, Y2K compliant program. Interstate Exempt Carriers--A main frame program used to track permits and insurance for interstate exempt "for hire" carriers, who transport exempt commodities, such as non-processed fruits and vegetables, sod and other low-value items. This program needs to be replaced with a LAN-based, Y2K compliant program. Intrastate Exempt Carriers--A main frame program used to track permits and insurance for intrastate exempt "for hire" carriers, such as nonemergency medical vehicles. These carriers transport people but do not fall under either the bus or limousine classification. This program needs to be replaced with a LAN-based, Y2K compliant program. Single State Registration Program (SSRS)--A LAN-based program used to track receipts and disbursements for interstate registered carriers who transport goods regulated under USDOT authority. This program needs to be integrated with the other transportation databases for more efficient processing and to eliminate redundant data entry. Intrastate Property Permits--A LAN-based program to issue and track permitting and insurance of "for hire" carriers, that transport goods within Georgia. This program needs to be replaced with a multi-user system to correct processing limitations and to ensure Y2K compliance. Chauffeur Permits (MCCP)--A LAN-based program used to issue and track permits granted to individuals for authority to drive a limousine in Georgia. This program needs to be tested for Y2K compliance and replaced with a program that is integrated with the other databases. Citation Program (CITE)--A LAN-based program used to track citations issued to commercial vehicle drivers who violate state or federal law. This program needs to be tested for Y2K compliance and replaced with a program that is integrated with the federal SafetyNet database. Charter Bus Permits (ChartBus)--A LAN-based program used to issue and track permits and insurance. This program needs to be developed to comply with new federal legislation. SafetyNet--A LAN-based program developed and supported by USDOT to track safety inspections, violations and accident reports of commercial motor vehicles. A reporting program needs to be developed that sorts and extracts data from SafetyNet. The PSC must be able to identify high-risk carriers and high-crash corridors in order to achieve the strategic objective to focus limited enforcement resources where the greatest impact can be made. Intelligent Transportation System/Commercial Vehicle Operations (ITS/CVO)-- The PSC along with other organizations who work with the motor carrier industry have formed a working group to identify improvement areas and technical approaches to implement ITS/CVO. Some of the benefits of this joint effort will be: 1.) Integrated capability to share intrastate and interstate data among agencies involved with the commercial vehicle industries; 2.) Improved communication among all agencies involved; 3.) One-Stop shopping for customers; and, 4.) Standardized methods for data submission and retrieval. This effort is still in the infancy stage; full http://www.psc.state.ga.us/pscinfo/appendices98.htm Page 17 of 20 5/13/2004 Appendices implementation will take several years. Page 18 of 20 Customer Service The PSC has adopted a strategic direction to demonstrate a commitment to customers and stakeholders. One means for achieving this strategy has been to become more accessible to the public through the use of the internet. Public information, consumer education materials and public documents are available on the PSC web page. Another major IT project directed at supporting the PSC's objectives for improving customer service is: Consumer Response System (CRS)--A LAN-based system to log and track consumer inquiries and complaints. Status of customer inquiries can be monitored through this system and patterns can be identified and addressed by the agency. This program needs to be replaced with a system that makes processing more efficient and interconnects with the Telemarketing "No Call" database being implemented this year to comply with HB71. Enhancing Internal Operations IT resources are used throughout the PSC to support the key objectives for enhancing internal operations. The network file server, web server and fax server provide staff with state-of-the-art software, data retrieval and communications capability. The PCs and applications software are upgraded as needed to accommodate the needs of the users. The two PSC offices--in downtown Atlanta and Hapeville--are connected by an ISDN line. Wireless solutions are being studied to enable our field enforcement officers, who are located throughout Georgia, to send and receive e-mail and to use other network functions. The enforcement officers have already been equipped with pen-based computers that allow for electronic upload of data each day, thereby eliminating dual data entry and the delays associated with mailing in their reports. One major IT project for enhancing internal operations is: z Help Desk Software--This system will allow users to report equipment problems, request assistance with applications, or make other IT inquiries as well as monitor the status of their requests. IT staff will use this system to control their workload and set priorities. Information Technology Architecture Alignment with State Policies and Standards Critical Requirements The PSC's IT strategic plan is aligned with the state policies and standards. See Table in Appendix B for mapping of Agency IT plan with State IT plan. The PSC `s critical IT requirements are primarily associated with major IT projects indicated above. One exception is the need to equip the transportation safety enforcement officers with lap top computers. The pen-based computers currently in use do not have sufficient capacity to store the commercial vehicle data needed in the field, nor do they provide the other PC functions required for efficient operations. Agency Support Strategy and Information Technology Staff Development The agency will provide network management and user support through its internal IT staff. Programming support for new or enhanced applications will be provided by outside vendors. Training and development of IT staff include network certification training. http://www.psc.state.ga.us/pscinfo/appendices98.htm 5/13/2004 Appendices Appendix H(a)--Time line for the PSC's Major IT Projects Project IIIQ98 IVQ98 IQ99 IIQ99 IIIQ99 IVQ99 Filing and Case Tracking System (FACTS) Telecommunications Certificated Providers Natural Gas Marketers Database Motor Carrier Certificate System Certificated Carriers Interstate/Intrastate Exempt Carriers Intrastate Property Permits Chauffeur Permits Charter Bus Permits Single State Registration Program ITS/CVO Citations Program SafetyNet Consumer Response System Help Desk Software Page 19 of 20 Appendix B--Mapping of State IT Plan to Agency IT Plan State Policy Agency Action Data warehousing and sharing The PSC has developed network databases to enable internal sharing of http://www.psc.state.ga.us/pscinfo/appendices98.htm 5/13/2004 Appendices State Awards for IT staff Year 2000 projects Electronic signatures Internet Cross-agency planning 800 MHz communication system data and has made information available to the public via its internet web page. Once developed the PSC will participate in this program since maintaining qualified IT staff is an ongoing challenge. Identifying needs and securing funding for Y2K projects is underway. Use and applicability of electronic signatures is being studied. The PSC is using the internet extensively to be more accessible to the public, to share data, to disseminate public information and to educate consumers. Future uses include making forms and applications available on the internet and accepting filings electronically. The PSC is a member of ITS/CVO task force that is evaluating the feasibility of a centralized jointlyowned database for all agencies that work with commercial vehicles. Other members are Department of Transportation, Department of Revenue, Department of Public Safety, and Georgia Motor Carriers Association The PSC is in compliance with the state policies. A statewide system would enhance communications for PSC safety enforcement officers and reduce or eliminate the need for multiple communications systems. Page 20 of 20 http://www.psc.state.ga.us/pscinfo/appendices98.htm 5/13/2004