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| SB 215 - Natural Gas Competition & Deregulation Act - enact |
First Reader Summary
A bill to amend Title 46 of the Official Code of Georgia
Annotated, relating to public utilities and public
transportation, so as to provide for a definition of "gas
company"; to provide for a method of establishing just and
reasonable rates for gas companies through an alternative form of
regulation; to provide for the allocation of certain revenues; to
enact the "Natural Gas Competition and Deregulation Act"; to
provide a short title; to provide for legislative findings and
intent.
Recorded Votes
| Senate
| Action
| House
|
| 2/6/97
| Read 1st time
| 2/27/97
|
| 2/21/97
| Favorably Reported
| 3/20/97
|
| Sub
| Committee Amend/Sub
| Sub
|
| 2/24/97
| Read 2nd Time
| 2/28/97
|
| 2/25/97
| Read 3rd Time
| 3/25/97
|
| 2/25/97
| Passed/Adopted
| 3/25/97
|
| CS
| Comm/Floor Amend/Sub
| CS
|
| 3/28/97
| Amend/Sub Agreed To
|
|
| 4/3/97
| Sent To Governor
|
|
| 4/14/97
| Signed by Governor
|
|
| 292
| Act/Veto Number
|
|
| 4/14/97
| Effective Date
|
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SB 215 97 SB215/AP
SENATE BILL 215
By: Senators Perdue of the 18th, Oliver of the 42nd,
Starr of the 44th and others
A BILL TO BE ENTITLED
AN ACT
1- 1 To amend Title 46 of the Official Code of Georgia Annotated,
1- 2 relating to public utilities and public transportation, so
1- 3 as to provide for a definition of "gas company"; to provide
1- 4 for a method of establishing just and reasonable rates for
1- 5 gas companies through an alternative form of regulation; to
1- 6 provide for the allocation of certain revenues; to provide
1- 7 for discovery in certain cases before the Public Service
1- 8 Commission; to enact the "Natural Gas Competition and
1- 9 Deregulation Act"; to provide a short title; to provide for
1-10 legislative findings and intent; to define certain terms; to
1-11 provide for the certification of marketers of certain
1-12 natural gas services; to provide a mechanism by which a gas
1-13 company may elect to be governed by the provisions of the
1-14 "Natural Gas Competition and Deregulation Act"; to establish
1-15 certain rate-making and other requirements for a gas company
1-16 which makes such an election; to provide for continued rate
1-17 and other regulation of firm distribution service offered by
1-18 an electing distribution company; to provide for
1-19 deregulation of certain natural gas services upon certain
1-20 findings by the Public Service Commission; to provide for
1-21 review and approval of capacity supply plans; to provide for
1-22 the issuance of temporary emergency directives under certain
1-23 circumstances; to establish certain obligations of an
1-24 electing distribution company; to establish standards of
1-25 conduct for an electing distribution company; to provide for
1-26 regulation by the Public Service Commission of marketers of
1-27 certain natural gas services and for the application of
1-28 certain laws to such marketers; to provide for the creation,
1-29 funding, and administration of a universal service fund for
1-30 each electing distribution company; to provide for the
1-31 effect of the "Natural Gas Competition and Deregulation Act"
1-32 on certain powers of the Public Service Commission, certain
1-33 powers of political subdivisions of this state, and certain
1-34 contracts; to provide for reports to the General Assembly;
1-35 to provide for related matters; to provide an effective
1-36 date; to repeal conflicting laws; and for other purposes.
-1-
2- 1 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
2- 2 SECTION 1.
2- 3 Title 46 of the Official Code of Georgia Annotated, relating
2- 4 to public utilities and public transportation, is amended by
2- 5 inserting following paragraph (6) of Code Section 46-1-1,
2- 6 relating to definitions, the following new paragraph, to be
2- 7 designated paragraph (6.1), to read as follows:
2- 8 "(6.1) 'Gas company' means any person certificated under
2- 9 Article 2 of Chapter 4 of this title to construct or
2-10 operate any pipeline or distribution system, or any
2-11 extension thereof, for the transportation, distribution,
2-12 or sale of natural or manufactured gas."
2-13 SECTION 2.
2-14 Said title is further amended in Article 2 of Chapter 2,
2-15 relating to the jurisdiction, powers, and duties of the
2-16 Public Service Commission, by inserting the following new
2-17 Code section, to be designated Code Section 46-2-23.1, to
2-18 read as follows:
2-19 "46-2-23.1.
2-20 (a) As used in this Code section, the term 'alternative
2-21 form of regulation' means a method of establishing just
2-22 and reasonable rates and charges for a gas company by
2-23 performance based regulation without regard to methods
2-24 based strictly upon cost of service, rate base, and rate
2-25 of return. Performance based regulation may include
2-26 without limitation one or more of the following features:
2-27 earnings sharing, price caps, price-indexing formulas,
2-28 ranges of authorized rates of return, and the reduction or
2-29 suspension of regulatory requirements.
2-30 (b) A gas company may from time to time file an
2-31 application with the commission to have its rates,
2-32 charges, classifications, and services regulated under an
2-33 alternative form of regulation. Within ten days of the
2-34 filing, the gas company shall publish a notice generally
2-35 describing the application in a newspaper or newspapers
2-36 with general circulation in its service territory.
2-37 (c) After notice and hearing the commission may approve
2-38 the plan, or approve it with modifications, if the
2-39 commission determines that the application is in the
2-40 public interest and will produce just and reasonable
-2-
3- 1 rates, after taking into consideration the extent to which
3- 2 the application:
3- 3 (1) Is designed to and is likely to produce lower prices
3- 4 for consumers of natural gas in Georgia;
3- 5 (2) Will provide incentives for the gas company to lower
3- 6 its costs and rates;
3- 7 (3) Will provide incentives to improve the efficiency
3- 8 and productivity of the gas company;
3- 9 (4) Will foster the long-term provision of natural gas
3-10 service in a manner that will improve the quality and
3-11 choices of service;
3-12 (5) Is consistent with maintenance and enhancement of
3-13 safe, adequate, and reliable service and will maintain
3-14 or improve preexisting service quality and consumer
3-15 protection safeguards;
3-16 (6) Will not result in cross-subsidization among or
3-17 between groups of gas company customers;
3-18 (7) Will not result in cross-subsidization among or
3-19 between the portion of the gas company's business or
3-20 operations subject to the alternative form of regulation
3-21 and any unregulated portion of the business or
3-22 operations of the gas company or of any of its
3-23 affiliates;
3-24 (8) Will reduce regulatory delay and cost; and
3-25 (9) Will tend to enhance economic activity in the
3-26 affected service territory.
3-27 (d) Performance based regulation adopted by the commission
3-28 as an alternative form of regulation shall provide for the
3-29 following:
3-30 (1) Equal and symmetric opportunities to earn above and
3-31 below the performance standard;
3-32 (2) Performance incentives based upon conditions within
3-33 the control of the management of the gas company; and
3-34 (3) Adjustments from time to time for the net effect of
3-35 changes in tax rates, other costs imposed by law, and
3-36 the cost of capital.
3-37 (e) Where an application for an alternative form of
3-38 regulation has been filed by a gas company and the
3-39 commission determines that the proposal does not satisfy
-3-
4- 1 the requirements of this Code section, it may either
4- 2 reject the proposal or issue an order approving an
4- 3 alternative with such modifications as the commission
4- 4 deems necessary to satisfy the requirements of this Code
4- 5 section. The commission shall determine and prescribe in
4- 6 any such order establishing rates and charges the revenue
4- 7 requirements of the gas company filing the application.
4- 8 (f) An order adopting an alternative form of regulation
4- 9 may include:
4-10 (1) Terms and conditions for establishing new services,
4-11 withdrawing services, price changes to services, and
4-12 services by contract to individual customers;
4-13 (2) Terms and conditions necessary to achieve the
4-14 objectives contained in subsection (c) of this Code
4-15 section;
4-16 (3) General or specific authorization for changes in
4-17 rates, charges, classifications, or services such that
4-18 the provisions of subsection (a) of Code Section 46-2-25
4-19 do not require 30 days' notice and commission approval
4-20 before such change or changes may go into effect; and
4-21 (4) Other rates, terms, and conditions that are
4-22 consistent with the objectives and requirements of
4-23 subsection (c) of this Code section.
4-24 (g) Except as otherwise provided in this Code section, the
4-25 provisions of this title relating to the rates, charges,
4-26 and terms of service of a gas company shall apply to
4-27 rates, charges, and terms of service established pursuant
4-28 to this Code section.
4-29 (h) Any special or negotiated contract between a gas
4-30 company and a retail customer approved by the commission
4-31 shall not be invalidated or modified by the provisions of
4-32 this Code section.
4-33 (i)(1) Neither the provisions of this Code section nor
4-34 the provisions of Article 5 of Chapter 4 of this title
4-35 shall prohibit a gas company from releasing interstate
4-36 pipeline capacity available to it from time to time and
4-37 not required to serve the requirements of its retail
4-38 customers and marketers and from making sales of gas
4-39 with or without interstate transportation capacity to
4-40 municipal corporations, other local gas distribution
4-41 companies, or marketers and end users connected to an
4-42 interstate pipeline company or connected to another
-4-
5- 1 local distribution company; provided, however, that
5- 2 where net benefits to the firm retail customers who are
5- 3 receiving commodity sales service from the gas company
5- 4 accrue:
5- 5 (A) Twenty percent of the revenues from the release of
5- 6 interstate pipeline capacity for the purposes of
5- 7 transporting gas to end users in Georgia shall be
5- 8 allocated to the gas company, and the remaining 80
5- 9 percent of such revenues shall be credited to the
5-10 costs of gas sold by the gas company to firm retail
5-11 customers;
5-12 (B) Ten percent of the revenues from the release of
5-13 interstate pipeline capacity for the purpose of
5-14 transporting gas to end users outside of Georgia shall
5-15 be allocated to the gas company, and the remaining 90
5-16 percent of such revenues shall be credited to the
5-17 costs of gas sold by the gas company to firm retail
5-18 customers; and
5-19 (C) Fifty percent of the net margin from the sale of
5-20 gas, with or without interstate capacity, to municipal
5-21 corporations, other local gas distribution companies,
5-22 or marketers and end users connected to an interstate
5-23 pipeline company or connected to another local
5-24 distribution company shall be allocated to the gas
5-25 company, and the remaining 50 percent of such net
5-26 margins shall be credited to the costs of gas sold by
5-27 the gas company to firm retail customers; provided,
5-28 however, that if as a result of such sale, the then
5-29 existing natural gas requirements of retail customers
5-30 in Georgia cannot be supplied physically, all of such
5-31 net margin shall be credited to the costs of gas. The
5-32 net margin shall be calculated by subtracting all
5-33 variable costs associated with the transaction from
5-34 the revenues generated by the transaction. The costs
5-35 recovered by the gas company through such transactions
5-36 shall be credited to the gas costs payable by retail
5-37 customers of the gas company.
5-38 (2) Where a universal service fund has been created by
5-39 the commission pursuant to Code Section 46-4-161 for a
5-40 gas company which is an electing distribution company,
5-41 as defined in paragraph (10) of Code Section 46-4-152,
5-42 the shares that are to be credited to the costs of gas
5-43 sold to firm retail customers under subparagraphs (A),
5-44 (B), and (C) of paragraph (1) of this subsection shall
-5-
6- 1 be allocated to such fund, and the costs recovered
6- 2 through a transaction described in subparagraph (C) of
6- 3 this subsection shall be allocated to such company.
6- 4 (3) Any gas company which engages in a transaction of a
6- 5 type described in paragraph (1) of this subsection,
6- 6 which results in the allocation to the gas company of a
6- 7 share of the revenues or net margin therefrom, shall
6- 8 make a report to the commission annually describing each
6- 9 such transaction and explaining the benefits resulting
6-10 to firm retail customers from each such transaction.
6-11 Such report shall be served on the consumer's utility
6-12 counsel division of the Governor's Office of Consumer
6-13 Affairs."
6-14 SECTION 3.
6-15 Said title is further amended in Article 3 of Chapter 2,
6-16 relating to investigations and hearings before the Public
6-17 Service Commission, by striking in their entirety
6-18 subsections (a) and (b) of Code Section 46-2-57, relating to
6-19 obtaining of discovery, and inserting in lieu thereof the
6-20 following new subsections (a) and (b) to read as follows:
6-21 "(a) In any case pending before it, the commission, in
6-22 addition to its now existing authority to do so, is
6-23 authorized to issue an order permitting its employees and
6-24 agents to take depositions and otherwise obtain discovery
6-25 of any matter, not privileged, which is relevant to the
6-26 subject matter involved in the investigation, proceeding,
6-27 or petition before the commission, in the same manner
6-28 prescribed in Chapter 11 of Title 9 for discovery in civil
6-29 actions. In any case involving an application of a gas
6-30 company to establish just and reasonable rates pursuant to
6-31 Code Section 46-2-23.1 or 46-4-154, intervenors who are
6-32 granted party status pursuant to Code Section 46-2-59, as
6-33 well as the gas company subject to the particular
6-34 proceeding, shall have all discovery rights available
6-35 under Chapter 11 of Title 9.
6-36 (b) The commission, as well as its agents and employees as
6-37 directed by the commission, and intervenors and gas
6-38 companies which are granted discovery rights under
6-39 subsection (a) of this Code section, is are authorized to
6-40 petition the Superior Court of Fulton County for all
6-41 orders, injunctions, and subpoenas necessary to carry out
6-42 the provisions of this Code section which would otherwise
6-43 be authorized or necessary under Chapter 11 of Title 9;
-6-
7- 1 and the judges and clerks of the court are authorized to
7- 2 issue all such orders, injunctions, and subpoenas and to
7- 3 take all other actions necessary to carry out this Code
7- 4 section which would otherwise be authorized or necessary
7- 5 under Chapter 11 of Title 9."
7- 6 SECTION 4.
7- 7 Said title is further amended in Chapter 4, relating to the
7- 8 distribution, storage, and sale of gas, by adding following
7- 9 Article 4 a new Article 5 to read as follows:
7-10 46-4-150.
7-11 This article shall be known and may be cited as the
7-12 'Natural Gas Competition and Deregulation Act.'
7-13 46-4-151.
7-14 (a) The General Assembly finds:
7-15 (1) It is in the public interest to establish a new
7-16 regulatory model for the natural gas industry in Georgia
7-17 to reflect the transition to a reliance on market based
7-18 competition as the best mechanism for the selection and
7-19 provision of natural gas services at the most efficient
7-20 pricing; and
7-21 (2) In order to ensure the implementation of this new
7-22 reliance on market based competition, any regulatory
7-23 impediments, whether statutory or administrative, to
7-24 competition for natural gas services must be removed in
7-25 those areas of the natural gas industry where
7-26 competition actually exists.
7-27 (b) It is the intent of this article to:
7-28 (1) Promote competition in the natural gas industry;
7-29 (2) Protect the consumer during and after the transition
7-30 to a competitive natural gas market;
7-31 (3) Maintain and encourage safe and reliable natural gas
7-32 service;
7-33 (4) Deregulate those components of the natural gas
7-34 industry subject to actual competition;
7-35 (5) Continue to regulate those natural gas services
7-36 subject to monopoly power;
-7-
8- 1 (6) Promote an orderly and expeditious transition of the
8- 2 natural gas industry toward fully developed competition;
8- 3 (7) Provide for rate-making methods which the General
8- 4 Assembly finds appropriate for the provision of natural
8- 5 gas services, including without limitation the use of
8- 6 straight fixed variable rate design, the recovery of
8- 7 certain stranded costs, and the use of alternative forms
8- 8 of rate regulation; and
8- 9 (8) Allow gas companies the opportunity to compete
8-10 effectively in a competitive marketplace.
8-11 46-4-152.
8-12 As used in this article, the term:
8-13 (1) 'Adequate market conditions' means the existence of
8-14 market conditions in relation to distribution service
8-15 within a particular delivery group that have been
8-16 determined pursuant to subsection (b) of Code Section
8-17 46-4-156 to warrant customer assignment.
8-18 (2) 'Affiliate' means another person which controls, is
8-19 controlled by, or is under common control with such
8-20 person.
8-21 (3) 'Ancillary service' means a service that is
8-22 ancillary to the receipt or delivery of natural gas,
8-23 including without limitation storage, balancing,
8-24 peaking, and customer services.
8-25 (4) 'Commodity sales service' means the sale of natural
8-26 gas exclusive of any distribution or ancillary service.
8-27 (5) 'Control' includes without limitation the
8-28 possession, directly or indirectly and whether acting
8-29 alone or in conjunction with others, of the authority to
8-30 direct or cause the direction of the management or
8-31 policies of a person. A voting interest of 10 percent
8-32 or more creates a rebuttable presumption of control. A
8-33 voting interest of 25 percent or more is deemed to
8-34 constitute control. The term control includes the terms
8-35 controlling, controlled by, and under control with.
8-36 (6) 'Customer assignment' means the process described in
8-37 subsection (e) of Code Section 46-4-156 whereby retail
8-38 customers within a particular distribution group who are
8-39 not under contract for distribution service from a
8-40 marketer are randomly assigned to certificated
8-41 marketers.
-8-
9- 1 (7) 'Customer service' means a function related to
9- 2 serving a retail customer including without limitation
9- 3 billing, meter reading, turn-on service, and turn-off
9- 4 service.
9- 5 (8) 'Delivery group' means a set of individual delivery
9- 6 points on one or more interstate pipeline suppliers to a
9- 7 gas company that may be aggregated and utilized for the
9- 8 distribution of gas to a particular set of retail
9- 9 customers.
9-10 (9) 'Distribution service' means the delivery of natural
9-11 gas by and through the intrastate instrumentalities and
9-12 facilities of a gas company or of a marketer
9-13 certificated pursuant to Code Section 46-4-153,
9-14 regardless of the party having title to the natural gas.
9-15 (10) 'Electing distribution company' means a gas company
9-16 which elects to become subject to the provisions of this
9-17 article and satisfies the requirements of Code Section
9-18 46-4-154.
9-19 (11) 'Firm' means a type of distribution service which
9-20 ordinarily is not subject to interruption or
9-21 curtailment.
9-22 (12) 'Interruptible' means a type of distribution
9-23 service which is subject to interruption or curtailment.
9-24 (13) 'Marketer' means any person certificated by the
9-25 commission to provide commodity sales service or
9-26 distribution service pursuant to Code Section 46-4-153
9-27 or ancillary services incident thereto.
9-28 (14) 'Person' means any corporation, whether public or
9-29 private; company; individual; firm; partnership; or
9-30 association.
9-31 (15) 'Retail customer' or 'retail purchaser' means a
9-32 person who purchases commodity sales service or
9-33 distribution service and such purchase is not for the
9-34 purpose of resale.
9-35 (16) 'Straight fixed variable' means a rate form in
9-36 which the fixed costs of providing distribution service
9-37 are recovered through one or more fixed components and
9-38 the variable costs are recovered through one or more
9-39 variable components.
-9-
10- 1 (17) 'Winter heating season' means the calendar days
10- 2 from October 1 of one year through March 31, inclusive,
10- 3 of the following year.
10- 4 46-4-153.
10- 5 (a)(1) No person other than a gas company shall sell or
10- 6 offer to sell in intrastate commerce to any retail
10- 7 customer who receives primarily firm service within this
10- 8 state any commodity sales service or distribution
10- 9 service without first obtaining a certificate of
10-10 authority from the commission covering the territory
10-11 where such retail customer is located.
10-12 (2) The commission shall have the authority to issue
10-13 multiple certificates of authority with respect to a
10-14 particular territory upon a showing that the applicant:
10-15 (A) Possesses satisfactory financial and technical
10-16 capability to render the certificated service;
10-17 (B) Has a sufficient gas supply to meet the
10-18 requirements of such service; and
10-19 (C) Will offer such service pursuant to rules and
10-20 contract terms which the commission finds economically
10-21 viable for the territory which the marketer proposes
10-22 to serve.
10-23 (3) A showing of public convenience and necessity is not
10-24 a condition for the issuance of a competing certificate
10-25 of authority.
10-26 (4) A certificate of authority shall authorize the
10-27 marketer to use intrastate capacity available to it from
10-28 a gas company to provide interruptible distribution
10-29 service when not required by the marketer to provide
10-30 firm distribution service.
10-31 (b) A person who seeks a certificate of authority shall
10-32 make an application to the commission which contains the
10-33 information required by this Code section.
10-34 (c)(1) No later than December 31, 1997, the commission
10-35 shall promulgate regulations describing the information
10-36 to be included in an application for certification under
10-37 this Code section and the criteria it will use in
10-38 determining an applicant's financial and technical
10-39 capability. Such criteria shall seek to ensure the
10-40 reliability and high quality of gas service provided to
10-41 consumers, while imposing no unnecessary barriers to
-10-
11- 1 entry, including without limitation administrative
11- 2 barriers to entry.
11- 3 (2) No such application shall be filed with respect to
11- 4 territory covered by the certificate of public
11- 5 convenience and necessity of a gas company until such
11- 6 gas company has filed a notice of election pursuant to
11- 7 the provisions of subsection (a) of Code Section
11- 8 46-4-154.
11- 9 (3) Until the expiration of 15 days following the
11-10 effective date of rates approved by the commission
11-11 pursuant to Code Section 46-4-154 for an electing
11-12 distribution company, the commission shall not approve
11-13 or disapprove any complete application for a certificate
11-14 of authority covering territory certificated to such
11-15 electing distribution company which application is filed
11-16 prior to such expiration date, and all applications for
11-17 certificates of authority filed prior to such expiration
11-18 date shall be considered by the commission
11-19 simultaneously.
11-20 (4) Within 60 days following such expiration date, the
11-21 commission shall conduct a public hearing or hearings on
11-22 all complete applications filed prior to such expiration
11-23 date. Within 90 days following such expiration date,
11-24 the commission shall issue its orders approving or
11-25 disapproving each of such applications for a certificate
11-26 of authority.
11-27 (5) The commission shall conduct a public hearing on any
11-28 application for a certificate of authority filed
11-29 subsequent to such expiration date within 60 days
11-30 following the filing of such application; and within 90
11-31 days following such filing, the commission shall issue
11-32 its order approving or disapproving such application.
11-33 (d) Any certificate of authority issued by the commission
11-34 is subject to revocation, suspension, or adjustment where
11-35 the commission finds upon complaint and hearing that a
11-36 marketer has failed repeatedly or has failed willfully to
11-37 meet obligations to its retail customers which are imposed
11-38 by this article, regulations issued pursuant to this
11-39 article, or the marketer's certificate of authority; has
11-40 engaged in unfair competition; or has abused its market
11-41 position.
11-42 (e) The commission may deny an application upon a showing
11-43 that the applicant or anyone acting in concert with the
-11-
12- 1 applicant has a history of violations of laws, rules, or
12- 2 regulations designed to protect the public. The
12- 3 commission may revoke any certificate issued pursuant to
12- 4 this Code section where it finds that the marketer or
12- 5 anyone acting in concert with the marketer has such a
12- 6 history, that any information on the application was
12- 7 falsified or forged, that the marketer has acted
12- 8 unlawfully to the detriment of the public while
12- 9 certificated, or for any other good and valid reason where
12-10 activities of the marketer are serving or could serve to
12-11 mislead, deceive, or work a fraud upon members of the
12-12 public. The commission shall be authorized to adopt rules
12-13 and regulations to implement this subsection. In any case
12-14 where it is asserted in good faith that the marketer is,
12-15 has been, or may be about to become involved in activities
12-16 described in this subsection, any deadline imposed under
12-17 this Code section regarding the granting of certification
12-18 shall be null and void until such time as such assertions
12-19 can be addressed.
12-20 46-4-154.
12-21 (a) A gas company may elect to become subject to the
12-22 provisions of this article by filing a notice of election
12-23 with the commission and by filing an application to
12-24 establish just and reasonable rates, including separate
12-25 rates for unbundled services. Pursuant to such
12-26 application, the commission shall:
12-27 (1) Maintain rates for interruptible distribution
12-28 service at the levels set forth in the rate schedules
12-29 approved by the commission and in effect on the day the
12-30 gas company files a notice of election as provided for
12-31 in this Code section;
12-32 (2) Establish rates for firm distribution service using
12-33 the straight fixed variable method of rate design,
12-34 subject to the provisions of subsection (b) of this Code
12-35 section;
12-36 (3) Establish separate rates and charges, which may be
12-37 based on market value, for each type of ancillary
12-38 service which is classified separately;
12-39 (4) Provide for the recovery in rates of those costs
12-40 which the commission determines are prudently incurred
12-41 and used and useful in providing utility service; and
-12-
13- 1 (5) Provide for recovery of costs found by the
13- 2 commission to be stranded and necessary to provide a
13- 3 reasonable return, provided that only prudently incurred
13- 4 stranded costs that cannot be mitigated may be
13- 5 recovered.
13- 6 (b) If the commission determines that inefficiencies in
13- 7 the rate design or other causes in existence immediately
13- 8 preceding the implementation of the straight fixed
13- 9 variable rate design will result in a material fluctuation
13-10 of rates for firm distribution service to a group of
13-11 retail customers upon implementation of straight fixed
13-12 variable rate design, the commission may make such
13-13 adjustments to the rates for firm distribution service as
13-14 it deems appropriate to phase in the straight fixed
13-15 variable rate design for firm distribution service:
13-16 (1) Over a 12 month period from the date the rates filed
13-17 by the electing distribution company would otherwise be
13-18 effective if such material fluctuation will be less than
13-19 10 percent of the total gas charges for a group of
13-20 retail customers; or
13-21 (2) Over a 24 month period from the date the rates filed
13-22 by the electing distribution company would otherwise be
13-23 effective if such material fluctuation will be equal to
13-24 or greater than 10 percent of the total gas charges for
13-25 a group of retail customers.
13-26 However, in no event shall any such adjustment be made if
13-27 the adjustment results in cross-subsidization between
13-28 retail customers receiving firm distribution service and
13-29 retail customers receiving interruptible distribution
13-30 service or if the adjustment reduces the revenues to the
13-31 electing distribution company for firm distribution
13-32 service below those that would be recovered by the
13-33 electing distribution company under the straight fixed
13-34 variable rate without such adjustment.
13-35 (c) In any proceeding before the commission to establish
13-36 rates as provided in subsection (a) of this Code section,
13-37 the commission shall prescribe rates for the services and
13-38 cost recovery purposes specified in paragraphs (2), (3),
13-39 (4), and (5) of subsection (a) of this Code section at
13-40 levels which are designed to recover the costs of service
13-41 of the electing distribution company as established by the
13-42 commission in such proceeding. In such proceeding, the
13-43 commission shall also prescribe a mechanism by which 90
-13-
14- 1 percent of the revenues to the electing distribution
14- 2 company from rates for interruptible distribution service
14- 3 shall be credited to the universal service fund
14- 4 established for that electing distribution company
14- 5 pursuant to Code Section 46-4-161. Each electing
14- 6 distribution company is authorized to retain for the
14- 7 benefit of its shareholders or owners 10 percent of the
14- 8 revenues the electing distribution company received from
14- 9 rates for interruptible service. Each electing
14-10 distribution company which retains 10 percent of such
14-11 revenues shall make a report to the commission annually
14-12 describing the benefits resulting to firm retail customers
14-13 from interruptible distribution service revenues.
14-14 (d) In addition to any other applicable filing
14-15 requirements, any such application by a gas company shall
14-16 include the following:
14-17 (1) An identification of each component of natural gas
14-18 service, including but not limited to commodity sales
14-19 service, distribution service, and ancillary services,
14-20 which are to be unbundled and offered under separate
14-21 rates, together with the total costs to provide each
14-22 such service by the electing distribution company
14-23 including a return on investment;
14-24 (2) Provisions for offering each unbundled service on an
14-25 equal access, nondiscriminatory basis;
14-26 (3) A description of the method by which the electing
14-27 distribution company proposes to allocate its intrastate
14-28 capacity for firm distribution service to a marketer
14-29 based upon the peak requirements of the firm retail
14-30 customers served by the marketer;
14-31 (4) A description of the method by which the electing
14-32 distribution company proposes to allocate its rights to
14-33 interstate pipeline and underground storage to a
14-34 marketer based upon the peak requirements of the firm
14-35 retail customers served by the marketer; and
14-36 (5) A plan for establishing and operating an electronic
14-37 bulletin board by which the electing distribution
14-38 company will provide marketers with equal and timely
14-39 access to information relevant to the availability of
14-40 firm distribution service.
14-41 (e) Notwithstanding any other provision of this title, the
14-42 commission shall hold a hearing regarding an application
-14-
15- 1 filed pursuant to this Code section and may suspend the
15- 2 operation of the proposed schedules and defer the use of
15- 3 the proposed rates, charges, classifications, or services
15- 4 for a period of not longer than six months.
15- 5 46-4-155.
15- 6 (a) Except as otherwise provided by this article, an
15- 7 electing distribution company which offers firm
15- 8 distribution service remains subject to the jurisdiction
15- 9 of the commission under this title. Without limiting the
15-10 generality of the foregoing, the commission shall have
15-11 general supervision of such company pursuant to Code
15-12 Section 46-2-20, and the rates of an electing distribution
15-13 company for firm distribution service and the ancillary
15-14 services which are subject to the rate jurisdiction of the
15-15 commission shall be established in accordance with the
15-16 provisions of this article and Code Section 46-2-23.1.
15-17 (b) An electing distribution company shall offer liquefied
15-18 natural gas peaking service to marketers at rates and on
15-19 terms approved by the commission, subject however to the
15-20 following:
15-21 (1) If a marketer which is not affiliated with an
15-22 electing distribution company obtains a peaking service
15-23 in a delivery group from a person other than the
15-24 electing distribution company, the rate for liquefied
15-25 natural gas peaking service by the electing distribution
15-26 company in such delivery group shall not be subject to
15-27 approval by the commission but shall be capped at 120
15-28 percent of the rate for such service previously
15-29 established by the commission; and
15-30 (2) If the commission determines pursuant to a filing by
15-31 the electing distribution company or otherwise, and
15-32 based upon the factors listed in subsection (c) of this
15-33 Code section, that reasonably available alternatives for
15-34 such peaking services exist in the delivery group, the
15-35 rate for such services in a delivery group shall not be
15-36 subject to regulation by the commission and the plant
15-37 and equipment of the electing distribution company which
15-38 is used and useful for receiving gas for liquefaction,
15-39 liquefying gas, storing liquefied natural gas, and
15-40 re-gasifying liquefied natural gas, including the land
15-41 upon which such plant and equipment is located, shall be
15-42 removed from the rate base for rate-making purposes of
15-43 the electing distribution company in an amount which is
-15-
16- 1 the lower of the fair market value or the depreciated
16- 2 book value of such facilities. In addition, the rates
16- 3 for firm distribution service of the electing
16- 4 distribution company shall be adjusted to eliminate any
16- 5 applicable recovery of the operation and maintenance
16- 6 expenses associated with such facilities and gas in
16- 7 storage in such facilities, as well as the return on
16- 8 investment attributable to the amount removed from the
16- 9 rate base. For purposes of such review and
16-10 determination, the fact that such services have been
16-11 obtained by a marketer which is not affiliated with the
16-12 electing distribution company shall create a presumption
16-13 that there are reasonably available alternatives for
16-14 such peaking services in the delivery group.
16-15 (c) An electing distribution company shall offer each type
16-16 of customer service to marketers at rates and on terms
16-17 approved by the commission in accordance with this article
16-18 and Code Section 46-2-23.1 until such time as the
16-19 commission determines that marketers have reasonably
16-20 available alternatives to purchasing such service from the
16-21 electing distribution company. The commission shall make
16-22 a separate determination for each type of service. In
16-23 making such determinations, the commission shall consider
16-24 the following factors:
16-25 (1) The number and size of alternative providers of the
16-26 service;
16-27 (2) The extent to which the service is available from
16-28 alternative providers in the relevant market;
16-29 (3) The ability of alternative providers to make
16-30 functionally equivalent or substitute services readily
16-31 available at competitive prices, terms, and conditions;
16-32 and
16-33 (4) Other indicators of market power which may include
16-34 market share, growth in market share, ease of entry, and
16-35 the affiliation of providers of a service.
16-36 (d) For each delivery group for which the commission has
16-37 not determined pursuant to Code Section 46-4-156 that
16-38 adequate market conditions exist, and thus has not
16-39 initiated customer assignment, an electing distribution
16-40 company shall:
16-41 (1) Offer interruptible distribution service and
16-42 balancing services at rates and on terms approved by the
-16-
17- 1 commission in accordance with the provisions of this
17- 2 article and Code Section 46-2-23.1 to retail customers
17- 3 and marketers, subject to the rules, regulations, and
17- 4 general terms and conditions of the electing
17- 5 distribution company as approved by the commission;
17- 6 (2) Offer firm distribution service at rates and on
17- 7 terms approved by the commission in accordance with the
17- 8 provisions of this article and Code Section 46-2-23.1 to
17- 9 retail customers and marketers, subject to the rules,
17-10 regulations, and general terms and conditions of the
17-11 electing distribution company as approved by the
17-12 commission; and
17-13 (3) Offer in conjunction with such firm distribution
17-14 service a commodity sales service; provided, however,
17-15 that the rates for such commodity sales service shall be
17-16 established pursuant to the provisions of Code Section
17-17 46-2-26.5, relating to the filing and adoption of a gas
17-18 supply plan; and provided, further, that the rates for
17-19 such commodity sales service shall not be subject to the
17-20 provisions of Code Section 46-2-26.5 nor subject to the
17-21 approval of the commission if at least five marketers,
17-22 excluding any marketer which is an affiliate of the
17-23 electing distribution company, have been granted
17-24 certificates of authority to serve in the delivery
17-25 group.
17-26 (e)(1) As used in this subsection, the term 'interstate
17-27 capacity assets' means interstate transportation and
17-28 out-of-state gas storage capacity.
17-29 (2) If, pursuant to the provisions of this article, the
17-30 rates for commodity sales service of an electing
17-31 distribution company within a delivery group or groups
17-32 become no longer subject to the approval of the
17-33 commission nor to the provisions of Code Section
17-34 46-2-26.5, the electing distribution company
17-35 nevertheless shall continue to be responsible for
17-36 acquiring and contracting for the interstate capacity
17-37 assets necessary for gas to be made available on its
17-38 system, whether directly or by assignment to marketers,
17-39 for firm distribution service to retail customers within
17-40 such delivery group or groups.
17-41 (3) At least every third year following the date when
17-42 the rates for commodity sales service within a delivery
17-43 group or groups become no longer subject to commission
-17-
18- 1 approval nor to the provisions of Code Section
18- 2 46-2-26.5, the electing distribution company shall file,
18- 3 on or before August 1 of such year, a capacity supply
18- 4 plan which designates the array of available interstate
18- 5 capacity assets selected by the electing distribution
18- 6 company for the purpose of making gas available on its
18- 7 system for firm distribution service to retail customers
18- 8 in such delivery group or groups.
18- 9 (4) Not less than ten days after any such filing by an
18-10 electing distribution company, the commission shall
18-11 conduct a public hearing on the filing. The electing
18-12 distribution company's testimony shall be under oath and
18-13 shall, with any corrections thereto, constitute the
18-14 electing distribution company's affirmative case. At
18-15 any hearing conducted pursuant to this subsection, the
18-16 burden of proof to show that the proposed capacity
18-17 supply plan is appropriate shall be upon the electing
18-18 distribution company.
18-19 (5) Following such a hearing, the commission shall issue
18-20 an order approving the capacity supply plan filed by the
18-21 electing distribution company or adopting a capacity
18-22 supply plan for the electing distribution company that
18-23 the commission deems appropriate. Should the commission
18-24 fail or refuse to issue an order by the forty-fifth day
18-25 after the electing distribution company's filing which
18-26 either approves the capacity supply plan filed by the
18-27 electing distribution company or adopts a different
18-28 capacity supply plan for the electing distribution
18-29 company, the capacity supply plan proposed by the
18-30 electing distribution company shall thereupon be deemed
18-31 approved by operation of law.
18-32 (6) Any capacity supply plan approved or adopted by the
18-33 commission shall:
18-34 (A) Specify the range of the requirements to be
18-35 supplied by interstate capacity assets;
18-36 (B) Describe the array of interstate capacity assets
18-37 selected by the electing distribution company to meet
18-38 such requirements;
18-39 (C) Describe the criteria of the electing distribution
18-40 company for entering into contracts under such array
18-41 of interstate capacity assets from time to time to
18-42 meet such requirements; provided, however, that a
18-43 capacity supply plan approved or adopted by the
-18-
19- 1 commission shall not prescribe the individual
19- 2 contracts to be executed by the electing distribution
19- 3 company in order to implement such plan; and
19- 4 (D) Specify the portion of the interstate capacity
19- 5 assets which must be retained and utilized by the
19- 6 electing distribution company in order to manage and
19- 7 operate its system.
19- 8 (7) When interstate capacity assets that are contained
19- 9 in a capacity supply plan approved or adopted by the
19-10 commission are allocated by the electing distribution
19-11 company to a marketer pursuant to the provisions of this
19-12 article, all of the costs of the interstate capacity
19-13 assets thus allocated shall be borne by such marketer.
19-14 (8) The provisions of law relating to parties,
19-15 intervention, and discovery in proceedings before the
19-16 commission shall apply with respect to proceedings under
19-17 this subsection.
19-18 (9) All commission orders issued pursuant to this
19-19 subsection shall contain the commission's findings of
19-20 fact and conclusions of law upon which the commission's
19-21 action is based. Any such order shall be deemed a final
19-22 order subject to judicial review under Chapter 13 of
19-23 Title 50, the 'Georgia Administrative Procedure Act.'
19-24 (10) Prior to the approval or adoption of a capacity
19-25 supply plan pursuant to this subsection, the interstate
19-26 capacity assets of the electing distribution company in
19-27 the most current gas supply plan of such company
19-28 approved or adopted by the commission pursuant to the
19-29 provisions of Code Section 46-2-26.5 shall be treated as
19-30 a capacity supply plan that is approved or adopted by
19-31 the commission for purposes of this subsection.
19-32 (11) After a capacity supply plan has become effective
19-33 pursuant to provisions of this subsection as a result of
19-34 a proceeding before the commission, the commission shall
19-35 retain jurisdiction of the proceeding for the purposes
19-36 set forth in this subsection. Upon application of the
19-37 affected electing distribution company or the consumers'
19-38 utility counsel division of the Governor's Office of
19-39 Consumer Affairs or upon its own initiative, the
19-40 commission may, after affording due notice and
19-41 opportunity for hearing to the affected electing
19-42 distribution company and the intervenors in the
19-43 proceeding, amend the capacity supply plan of the
-19-
20- 1 affected electing distribution company. Any such
20- 2 amendment shall not adversely affect rights under any
20- 3 contract entered into pursuant to such plan without the
20- 4 consent of the parties to such contracts. If an
20- 5 amendment proceeding is initiated by the affected
20- 6 electing distribution company and the commission fails
20- 7 or refuses to issue an order by the forty-fifth day
20- 8 after the electing distribution company's filing, the
20- 9 amended capacity supply plan proposed by the electing
20-10 distribution company shall thereupon be deemed approved
20-11 by operation of law.
20-12 (12) After an electing distribution company has no
20-13 obligation to provide commodity sales service to retail
20-14 customers pursuant to the provisions of Code Section
20-15 46-4-156 and upon the petition of any interested person
20-16 and after notice and opportunity for hearing afforded to
20-17 the electing distribution company, all parties to the
20-18 most current proceeding establishing a capacity supply
20-19 plan for such electing distribution company, the
20-20 consumers' utility counsel division of the Governor's
20-21 Office of Consumer Affairs, and all marketers who have
20-22 been issued a certificate of authority pursuant to Code
20-23 Section 46-4-153, the commission may issue an order
20-24 eliminating the responsibility of the electing
20-25 distribution company for acquiring and contracting for
20-26 interstate capacity assets necessary for gas to be made
20-27 available on its system as well as the obligation of
20-28 such electing distribution company to file any further
20-29 capacity supply plans with the commission pursuant to
20-30 the provisions of this subsection, if the commission
20-31 determines that:
20-32 (A) Marketers can and will secure adequate and
20-33 reliable interstate capacity assets necessary to make
20-34 gas available on the system of the electing
20-35 distribution company for service to firm retail
20-36 customers;
20-37 (B) Adequate, reliable, and economical interstate
20-38 capacity assets will not be diverted from use for
20-39 service to retail customers in Georgia;
20-40 (C) There is a competitive, highly flexible, and
20-41 reasonably accessible market for interstate capacity
20-42 assets for service to retail customers in Georgia;
-20-
21- 1 (D) Elimination of such responsibility on the part of
21- 2 the electing distribution company would not adversely
21- 3 affect competition for natural gas service to retail
21- 4 customers in Georgia; and
21- 5 (E) Elimination of such responsibility on the part of
21- 6 the electing distribution company is otherwise in the
21- 7 public interest.
21- 8 46-4-156.
21- 9 (a) No later than December 31, 1997, the commission shall
21-10 promulgate regulations which prescribe a methodology for
21-11 the random assignment to each marketer certificated within
21-12 a delivery group of each firm retail customer who has not
21-13 contracted for distribution service from a marketer. This
21-14 methodology shall further provide that the percentage of
21-15 such firm retail customers assigned to a given marketer
21-16 shall be based upon the percentage at the time of such
21-17 assignment of all firm retail customers within the
21-18 delivery group served by such marketer.
21-19 (b) Any person may file a petition requesting that the
21-20 commission determine that adequate market conditions exist
21-21 for a particular delivery group. If the commission makes
21-22 such a determination, the procedures that precede customer
21-23 assignment shall begin. The commission shall enter a
21-24 decision as to whether adequate market conditions exist
21-25 within the earlier of 120 days after the close of the
21-26 record in the proceeding on such petition or 180 days from
21-27 the filing of such petition under this subsection. The
21-28 commission shall determine that adequate market conditions
21-29 exist within a specific delivery group as follows:
21-30 (1) If the petition is filed before September 30, 2001,
21-31 upon a showing that:
21-32 (A) At least five marketers, excluding any marketer
21-33 which is an affiliate of an electing distribution
21-34 company, have been granted a certificate to serve
21-35 within the delivery group and are actively marketing
21-36 within the delivery group area; and
21-37 (B) In the aggregate, no less than one-third of the
21-38 peak day requirements for firm distribution service is
21-39 served through marketers. In determining whether such
21-40 percentage has been satisfied, marketers who are not
21-41 affiliates of the electing distribution company must
21-42 serve no less than 18 percent of the peak day
-21-
22- 1 requirements for firm distribution service in the
22- 2 delivery group; or
22- 3 (2) If the petition is filed on or after September 30,
22- 4 2001, upon a showing that adequate market conditions
22- 5 exist based upon consideration of the following factors:
22- 6 (A) The number and size of alternative providers of
22- 7 the distribution service;
22- 8 (B) The extent to which the distribution service is
22- 9 available from alternative providers in the delivery
22-10 group;
22-11 (C) The ability of alternative providers to make
22-12 functionally equivalent or substitute services readily
22-13 available at competitive prices, terms, and
22-14 conditions; and
22-15 (D) Other indicators of market power which may include
22-16 market share, growth in market share, ease of entry,
22-17 and the affiliation of providers of a distribution
22-18 service.
22-19 (c) If the commission issues an order pursuant to
22-20 subsection (b) of this Code section determining that
22-21 adequate market conditions exist, it shall prescribe in
22-22 such order the contents of notices to be furnished
22-23 pursuant to the provisions of subsection (e) of this Code
22-24 section. Subject to the provisions of subsection (d) of
22-25 this Code section, on the one hundred twentieth day
22-26 following the issuance of an order for a particular
22-27 delivery group:
22-28 (1) The rates and terms of service of an electing
22-29 distribution company for interruptible distribution
22-30 service and balancing service shall not be subject to
22-31 approval by the commission, provided that all firm
22-32 retail customers have contracted with or have been
22-33 assigned to marketers as provided for in this Code
22-34 section;
22-35 (2) The rates and terms of service for commodity sales
22-36 service provided by an electing distribution company to
22-37 retail purchasers of firm distribution service shall not
22-38 be subject to approval by the commission, provided that
22-39 all firm retail customers have contracted with or have
22-40 been assigned to marketers as provided for in this Code
22-41 section; and
-22-
23- 1 (3) Subject to subsection (d) of this Code section, an
23- 2 electing distribution company has no obligation to
23- 3 provide commodity sales service to retail customers.
23- 4 (d) If the one hundred twentieth day following the
23- 5 issuance of such order falls during a winter heating
23- 6 season, the provisions of subsection (c) of this Code
23- 7 section and customer assignment shall become effective on
23- 8 the day following the end of the winter heating season.
23- 9 (e) Within 45 days following the issuance of an order
23-10 pursuant to subsection (b) of this Code section, and again
23-11 within 80 days following such an order, an electing
23-12 distribution company shall send a notice regarding the
23-13 commission's order to each of its retail customers
23-14 receiving firm distribution service or commodity sales
23-15 service within such delivery group. Such notices shall
23-16 inform the retail customer in plain language that:
23-17 (1) The electing distribution company will not provide
23-18 firm distribution service or commodity sales service to
23-19 such customer, as of the date determined under
23-20 subsection (c) or (d) of this Code section;
23-21 (2) Such customer may contract with a marketer
23-22 certificated under Code Section 46-4-153 to furnish such
23-23 services; and
23-24 (3) If the customer does not contract with a marketer
23-25 within 100 days from the date of such order, the
23-26 commission will assign, on a random basis, a marketer to
23-27 furnish such services to said customer.
23-28 (f)(1) If the commission issues an order pursuant to
23-29 subsection (b) of this Code section before September 30,
23-30 2001, any affected party may petition the commission to
23-31 stay the process of customer assignment.
23-32 (2) Any such petition shall be filed with the commission
23-33 no earlier than 80 days from the date of such order and
23-34 no later than 105 days from the date of such order.
23-35 (3) The commission shall hold an expedited hearing
23-36 within 14 days of the filing of the petition. Within
23-37 three days of the filing of said petition, the
23-38 commission shall cause notice to be given of said
23-39 hearing to the affected electing distribution company,
23-40 all marketers certificated within the delivery group,
23-41 and such other persons as the commission deems
23-42 appropriate.
-23-
24- 1 (4) In any proceeding upon such a petition, the
24- 2 commission may stay the assignment process if it
24- 3 determines upon the basis of clear and convincing
24- 4 evidence introduced in support of the petition that,
24- 5 notwithstanding the adequacy of the showing under the
24- 6 provisions of subparagraphs (b)(1)(A) and (b)(1)(B) of
24- 7 this Code section, the market will not be competitive
24- 8 and the prices for distribution service to residential
24- 9 customers will not be constrained by market forces and
24-10 will be significantly higher than such prices would be
24-11 if they were constrained by market forces.
24-12 (5) The commission shall render a decision in any such
24-13 proceeding within the earlier of ten days after the
24-14 close of the record in the proceeding on such petition
24-15 or 30 days from the filing of such petition under this
24-16 subsection.
24-17 (g) At any time that the electing distribution company
24-18 determines that any deadline or the expiration of any time
24-19 period prescribed by this article may result in an adverse
24-20 impact upon the overall effective implementation of this
24-21 article, upon the emergence of effective competition, or
24-22 upon the public interest, it may petition the commission
24-23 to extend such deadline or period for a time certain. If
24-24 the commission finds that strict enforcement of any
24-25 deadline or time period prescribed by this article may
24-26 result in an adverse impact upon the overall effective
24-27 implementation of this article, upon the emergence of
24-28 effective competition, or upon the public interest, it may
24-29 extend such deadline or period for any period of time up
24-30 to or equal to the time extension requested in the
24-31 petition.
24-32 46-4-157.
24-33 If, in an expedited hearing:
24-34 (1) The commission determines for a specific delivery
24-35 group, as to which the commission has issued an order
24-36 pursuant to subsection (b) of Code Section 46-4-156,
24-37 that the prices for natural gas paid by retail customers
24-38 in such delivery group are not constrained by market
24-39 forces and are significantly higher than such prices
24-40 would be if they were constrained by market forces; or
24-41 (2) The commission determines for a specific delivery
24-42 group, as to which the commission has not issued an
24-43 order pursuant to subsection (b) of Code Section
-24-
25- 1 46-4-156, that the prices charged by an electing
25- 2 distribution company to residential customers for
25- 3 commodity sales services, which prices have not been
25- 4 approved by the commission pursuant to Code Section
25- 5 46-2-26.5, are generally not constrained by market
25- 6 forces and are significantly higher than such prices
25- 7 would be if they were constrained by market forces,
25- 8 then the commission, on an emergency basis, may by order
25- 9 temporarily impose such directives on gas companies
25-10 subject to its jurisdiction as are required to protect the
25-11 interests of retail customers in such delivery group
25-12 including but not limited to price regulations and the
25-13 imposition upon the electing distribution company of the
25-14 obligation to serve retail customers in such delivery
25-15 group under the same or similar conditions to those under
25-16 which such customers were served prior to customer
25-17 assignment in such delivery group. In no event shall such
25-18 emergency directives extend beyond the first day of July
25-19 immediately following the next full annual session of the
25-20 General Assembly after the imposition of such directives.
25-21 In its order the commission shall provide for recovery of
25-22 all costs reasonably incurred by the electing distribution
25-23 company in complying with the directives. Any such
25-24 directives shall be drawn as narrowly as possible to
25-25 accomplish the purpose of protecting the public on an
25-26 interim basis. No such directive shall impose any
25-27 condition upon the electing distribution company which
25-28 unreasonably burdens the company. Such directives shall
25-29 be immediately reviewable in the Superior Court of Fulton
25-30 County in the same manner and subject to the same
25-31 procedures as the review of any other contested case under
25-32 the provisions of Code Section 50-13-19. The provisions
25-33 of this Code section shall not apply to a delivery group
25-34 for which customer assignment occurred more than four
25-35 years prior to the date of notice of the expedited
25-36 hearing.
25-37 46-4-158.
25-38 (a) An electing distribution company which provides firm
25-39 distribution service under this article must:
25-40 (1) Offer an allocation of such distribution service to
25-41 marketers separately from any commodity sales service or
25-42 other service;
-25-
26- 1 (2) Provide such allocation of such distribution service
26- 2 to marketers without undue discrimination or preference,
26- 3 including undue discrimination or preference in the
26- 4 quality of service provided, the duration of service,
26- 5 the categories, prices, or volumes of natural gas to be
26- 6 distributed, customer classification, or other undue
26- 7 discrimination or preference of any kind; and
26- 8 (3) Provide all marketers with equal and timely access
26- 9 to information relevant to the availability of such
26-10 service, including without limitation the availability
26-11 of capacity at delivery points, through the use of an
26-12 electronic bulletin board.
26-13 (b) An electing distribution company may impose reasonable
26-14 operational conditions on any firm distribution service
26-15 provided to marketers under this article. Such conditions
26-16 must be filed by the electing firm distribution company as
26-17 part of its firm distribution tariff.
26-18 (c) An electing distribution company which allocates firm
26-19 distribution service to marketers under this article is
26-20 not required to provide any requested firm distribution
26-21 service for which capacity is not available or that would
26-22 require the construction or acquisition of any new
26-23 facilities.
26-24 46-4-159.
26-25 (a) As used in this Code section and notwithstanding any
26-26 other provision of this article, the term:
26-27 (1) 'Control' includes without limitation the
26-28 possession, directly or indirectly and whether acting
26-29 alone or in conjunction with others, of the authority to
26-30 direct or cause the direction of the management or
26-31 policies of a person. A voting interest of 10 percent
26-32 or more creates a rebuttable presumption of control.
26-33 The term control includes the terms controlling,
26-34 controlled by, and under control with.
26-35 (2) 'Electing distribution company' includes any agent
26-36 of or consultant to the electing distribution company.
26-37 (3) 'Marketer' means any person who engages in selling
26-38 gas:
26-39 (A) To retail customers connected to the facilities of
26-40 an electing distribution company; or
-26-
27- 1 (B) To other marketers for resale to such customers;
27- 2 provided, however, that the term marketer shall not
27- 3 mean a person who only makes sales beyond the electing
27- 4 distribution company's system to other marketers for
27- 5 resale when the transportation capacity for the
27- 6 distribution of the gas to the electing distribution
27- 7 company's system is obtained from a person or entity
27- 8 which is not an affiliate of the electing distribution
27- 9 company.
27-10 (b) An electing distribution company must conduct its
27-11 business to conform to the following standards, which are
27-12 intended to prevent any advantage or disadvantage accruing
27-13 to a marketer, including a marketer which is an affiliate
27-14 of the electing distribution company, in relation to other
27-15 marketers and their customers and which standards shall be
27-16 applied to accomplish this intent:
27-17 (1) An electing distribution company must apply the
27-18 terms and conditions of its tariff and other tariff
27-19 provisions related to the distribution of gas in the
27-20 same manner to all marketers and to all customers
27-21 without respect to their supplier;
27-22 (2) An electing distribution company must process all
27-23 similar requests for service in the same manner to all
27-24 marketers in a reasonably similar time period;
27-25 (3) An electing distribution company may not, through
27-26 tariff or otherwise, give any marketer or its customers
27-27 preference over any other marketer or similarly situated
27-28 customers in matters relating to the movement or
27-29 delivery of gas on its distribution facilities or the
27-30 administration of contracts, including scheduling,
27-31 nomination, balancing, metering, storage, standby
27-32 service, curtailment policy, and billing and invoice
27-33 questions and disputes;
27-34 (4) An electing distribution company shall apply the
27-35 same tariff provisions relating to discounts, rebates,
27-36 fee waivers, or penalty waivers to all similarly
27-37 situated customers without respect to their marketer.
27-38 Any discretionary right under a tariff provision shall
27-39 be applied by the electing distribution company
27-40 impartially to all similarly situated customers without
27-41 respect to their marketer. Where not subject to tariff
27-42 provisions, an electing distribution company must
27-43 contemporaneously offer the same discounts, rebates, fee
-27-
28- 1 waivers, or penalty waivers to all similarly situated
28- 2 customers without respect to their marketer and
28- 3 effectuate such contemporaneous offers by making an
28- 4 appropriate posting on the general alert screen of its
28- 5 electronic bulletin board;
28- 6 (5) An electing distribution company must not give
28- 7 preference to any marketer in the scheduling or
28- 8 allocation of capacity at a city gate station;
28- 9 (6) An electing distribution company must not directly
28-10 or indirectly give any marketer any form of preference
28-11 over any other marketer in matters relating to
28-12 allocation, assignment, release, or other transfer of
28-13 the electing distribution company's capacity rights on
28-14 interstate pipeline systems or in the sale of gas;
28-15 (7) Neither the electing distribution company nor any
28-16 marketer which is an affiliate of the company nor any
28-17 other marketer may represent that any advantage accrues
28-18 to customers or others in the use of electing
28-19 distribution company services as a result of that
28-20 customer or others dealing with the marketer. Also,
28-21 joint promotions between the electing distribution
28-22 company and any marketer, such as inclusion of fliers
28-23 for the marketer in utility bills, are prohibited unless
28-24 such promotions are offered to all other marketers under
28-25 the same terms and conditions;
28-26 (8) The electing distribution company must not
28-27 preferentially provide sales leads to any marketer and
28-28 must refrain from giving any appearance that the
28-29 electing distribution company speaks on behalf of a
28-30 marketer that is an affiliate of the company. If a
28-31 customer requests information about marketers, to the
28-32 extent the electing distribution company responds to the
28-33 request, the electing distribution company should
28-34 provide a list of all marketers on its system but shall
28-35 not express any preferential recommendation for a
28-36 marketer that is an affiliate of the company or for any
28-37 other marketer;
28-38 (9) Joint solicitation calls on end users by personnel
28-39 of the electing distribution company and any marketer
28-40 are forbidden; however, joint meetings will be scheduled
28-41 at a mutually agreeable time and location if
28-42 specifically requested in writing by the customer;
-28-
29- 1 (10) An electing distribution company must
29- 2 contemporaneously disclose information provided to any
29- 3 marketer related to the marketing or sale of natural gas
29- 4 to customers or identified potential customers or
29- 5 related to the delivery of natural gas to or on its
29- 6 system to all marketers on the system. The electing
29- 7 distribution company's disclosure of such information
29- 8 must be effectuated by posting the information on the
29- 9 general alert screen of its electronic bulletin board.
29-10 However, an electing distribution company may, when
29-11 requested in writing to do so by a customer of a
29-12 marketer, disclose confidential information relating to
29-13 the customer only to said marketer. Notwithstanding any
29-14 other provisions of this paragraph, an electing
29-15 distribution company may respond to general inquiries
29-16 from marketers, customers, identified potential
29-17 customers, or other third parties regarding general
29-18 information including the company's terms and
29-19 conditions, tariff provisions, location and description
29-20 of facilities, or other similar information as required
29-21 in the normal course of business by responding only to
29-22 the requesting party;
29-23 (11) An electing distribution company may not knowingly
29-24 disclose to any marketer any confidential information
29-25 obtained in connection with providing distribution or
29-26 related services to any other marketer or customer, a
29-27 potential marketer or customer, any agent of such
29-28 customer or potential marketer, or a marketer;
29-29 (12) Employees of the electing distribution company
29-30 having direct responsibility for the day-to-day
29-31 operations of the electing distribution company's
29-32 operations, including without limitation employees
29-33 involved in:
29-34 (A) Receiving distribution service requests or sales
29-35 requests from retail customers;
29-36 (B) Scheduling gas deliveries on the electing
29-37 distribution company's system;
29-38 (C) Making gas scheduling or allocation decisions;
29-39 (D) Purchasing gas or capacity; or
29-40 (E) Selling gas to retail customers
-29-
30- 1 shall not be shared with, shall be physically separated
30- 2 from, and must function independently of a marketer
30- 3 which is an affiliate of the company;
30- 4 (13) An electing distribution company must file with the
30- 5 commission procedures that will enable marketers and the
30- 6 commission to determine how the electing distribution
30- 7 company is complying with the standards set forth in
30- 8 this Code section; and
30- 9 (14) An electing distribution company must maintain its
30-10 books of account and records separately from those of a
30-11 marketer which is an affiliate of the company.
30-12 (c) An electing distribution company must respond in
30-13 writing within ten days to any informal complaint which is
30-14 submitted in writing to the company and which relates to
30-15 compliance with the standards set forth in this Code
30-16 section.
30-17 46-4-160.
30-18 (a) With respect to a marketer certificated pursuant to
30-19 Code Section 46-4-153, the commission shall have authority
30-20 to:
30-21 (1) Adopt reasonable rules and regulations governing the
30-22 certification of a marketer;
30-23 (2) Grant, modify, impose conditions upon, or revoke a
30-24 certificate;
30-25 (3) Adopt reasonable rules governing service quality;
30-26 and
30-27 (4) Resolve complaints against a marketer regarding that
30-28 marketer's service.
30-29 (b) Prior to the determination by the commission pursuant
30-30 to Code Section 46-4-156 that adequate market conditions
30-31 exist within a delivery group, each marketer must
30-32 separately state on its bills to retail customers within
30-33 the delivery group the charges for firm distribution
30-34 service and for commodity sales.
30-35 (c) A marketer shall not refuse to sell gas to a potential
30-36 firm retail customer within the territory covered by the
30-37 marketer's certificate of authority if the sale can be
30-38 made by the marketer pursuant to the rules for service
30-39 authorized by the marketer's certificate of authority and
30-40 upon terms that will provide the marketer with just and
-30-
31- 1 adequate compensation. The price at which a marketer sells
31- 2 gas shall not be fixed by the commission.
31- 3 (d) The commission and the consumers' utility counsel
31- 4 division of the Governor's Office of Consumer Affairs
31- 5 shall have access to the books and records of marketers as
31- 6 may be necessary to ensure compliance with the provisions
31- 7 of this article and with the commission's rules and
31- 8 regulations promulgated under this article.
31- 9 (e) Except as otherwise provided in this article,
31-10 certification of a person as a marketer by the commission
31-11 pursuant to Code Section 46-4-153 does not subject the
31-12 person to the jurisdiction of the commission under this
31-13 title, including without limitation the provisions of
31-14 Article 2 of Chapter 2 of this title.
31-15 (f) The provisions of Article 3 of Chapter 2 of this title
31-16 shall apply to an investigation or hearing regarding a
31-17 marketer. The provisions of Articles 4 and 5 of Chapter 2
31-18 of this title shall apply to a marketer.
31-19 (g) The provisions of Part 2 of Article 15 of Chapter 1 of
31-20 Title 10, the 'Fair Business Practices Act of 1975,' shall
31-21 apply to a marketer.
31-22 46-4-161.
31-23 (a) The commission shall create for each electing
31-24 distribution company a universal service fund for the
31-25 purpose of:
31-26 (1) Assuring that gas is available for sale by marketers
31-27 to firm retail customers within the territory
31-28 certificated to each such marketer; and
31-29 (2) Enabling the electing distribution company to expand
31-30 its facilities and service in the public interest.
31-31 (b) The fund shall be administered by the commission under
31-32 rules to be promulgated by the commission in accordance
31-33 with the provisions of this Code section. Prior to the
31-34 beginning of each fiscal year of the electing distribution
31-35 company, the commission shall determine the amount of the
31-36 fund appropriate for such fiscal year. In making such
31-37 determination, the commission shall consider the
31-38 following:
31-39 (1) The amount required to provide appropriate
31-40 compensation to marketers with respect to uncollectable
-31-
32- 1 accounts arising from commodity sales to firm retail
32- 2 customers; and
32- 3 (2) The amount required to provide sufficient
32- 4 contributions in aid of construction to permit the
32- 5 electing distribution company to extend and expand its
32- 6 facilities from time to time as the commission deems to
32- 7 be in the public interest.
32- 8 (c) The fund shall be created and maintained from time to
32- 9 time from the following sources:
32-10 (1) Rate refunds to the electing distribution company
32-11 from its interstate pipeline suppliers;
32-12 (2) Any earnings allocable to ratepayers under
32-13 performance based rates of the electing distribution
32-14 company authorized by this article;
32-15 (3) A surcharge to the rates for firm distribution
32-16 service of the electing distribution company authorized
32-17 for such purpose by the commission from time to time;
32-18 and
32-19 (4) Any other payments to the fund provided by law.
32-20 (d) Any amounts remaining in such fund at the end of a
32-21 fiscal year shall be available for refund to retail
32-22 customers in such manner as the commission shall deem
32-23 equitable. The balance at fiscal year end, whether
32-24 positive or negative, after such refund, if any, shall
32-25 become the initial balance of the fund for the ensuing
32-26 fiscal year and shall be considered by the commission in
32-27 making the determination required in subsection (b) of
32-28 this Code section.
32-29 (e) Moneys in the fund shall be deposited in a separate,
32-30 interest-bearing escrow account maintained by the electing
32-31 distribution company at any state or federally chartered
32-32 bank, trust company, or savings and loan association
32-33 located in this state. Upon application to the
32-34 commission, the commission shall order the distribution of
32-35 an appropriate portion of such moneys on a quarterly basis
32-36 and in accordance with the provisions of this Code
32-37 section. Interest earned on moneys in the fund shall
32-38 accrue to the benefit of the fund.
32-39 (f) In determining whether to grant the application of a
32-40 marketer for a distribution from the fund in whole or in
32-41 part, the commission shall consider:
-32-
33- 1 (1) The expenditures reasonably required for commodity
33- 2 sales by a marketer within the relevant territory based
33- 3 upon the cost of gas as established by published cost
33- 4 indexes, the transportation charges of the interstate
33- 5 pipeline involved, and the rates for firm distribution
33- 6 service of the electing distribution company. The
33- 7 commission shall also consider the actual costs incurred
33- 8 to serve the customers and revenues available to the
33- 9 marketer from sales within the affected territory
33-10 available to provide a fair return to the marketer;
33-11 (2) Whether the marketer pursued reasonable diligence in
33-12 seeking to recover the uncollectable accounts; and
33-13 (3) The reduction to the total amount of the
33-14 uncollectable accounts appropriate to assure that
33-15 marketers pursue reasonable diligence in their
33-16 collection efforts.
33-17 (g)(1) In determining whether to grant the application
33-18 of an electing distribution company for a distribution
33-19 from the fund in whole or in part, the commission shall
33-20 consider:
33-21 (A) The capital budget of the electing distribution
33-22 company for the relevant fiscal year;
33-23 (B) The estimated total overall applicable cost of the
33-24 proposed extension, including construction costs,
33-25 financing costs, working capital requirements, and
33-26 engineering and contracting fees, as well as all other
33-27 costs that are necessary and reasonable;
33-28 (C) The projected initial service date of the new
33-29 facilities, the estimated revenues to the electing
33-30 distribution company during the first five fiscal
33-31 years following the initial service date, and the
33-32 estimated rate of return to the electing distribution
33-33 company produced by such revenues during each such
33-34 fiscal year;
33-35 (D) The amount of the contribution in aid of
33-36 construction required for the revenues from the
33-37 proposed new facility to produce a just and reasonable
33-38 return to the electing distribution company; and
33-39 (E) Whether the proposed new facility is in the public
33-40 interest.
-33-
34- 1 (2) In no event shall the distribution to an electing
34- 2 distribution company from the fund for facilities and
34- 3 service expansion during any fiscal year exceed 5
34- 4 percent of the capital budget of such company for such
34- 5 fiscal year.
34- 6 (3) Any investment in new facilities financed from the
34- 7 universal service fund shall be accounted for as a
34- 8 contribution in aid of construction.
34- 9 46-4-162.
34-10 Nothing in this article shall be construed to prohibit the
34-11 commission from approving, upon application by a gas
34-12 company, pilot programs which allow increased customer
34-13 choice on such gas company's distribution system but which
34-14 are not otherwise subject to the provisions of this
34-15 article.
34-16 46-4-163.
34-17 Any special or negotiated contract between a gas company
34-18 and a retail customer approved by the commission shall not
34-19 be invalidated or modified by the provisions of this
34-20 article.
34-21 46-4-164.
34-22 Nothing in this article shall be deemed to apply or impose
34-23 requirements not otherwise existing on gas distribution
34-24 companies owned by any county, municipality, other
34-25 political subdivision, or governmental authority of this
34-26 state; nor are the provisions of this article intended to
34-27 increase or decrease the authority and jurisdiction of the
34-28 commission with respect to the distribution, sale, or
34-29 transportation of gas by any county, municipality, other
34-30 political subdivision, or governmental authority of this
34-31 state. Nothing in this article shall be construed to
34-32 limit or otherwise affect the existing powers of municipal
34-33 corporations or other political subdivisions of this state
34-34 relating to the granting of franchises or the levying or
34-35 imposition of taxes, fees, or charges.
34-36 46-4-165.
34-37 The commission shall report to the General Assembly
34-38 annually through the year 2002 on the status of the
34-39 transition to competitive markets for natural gas services
34-40 in Georgia."
-34-
35- 1 SECTION 5.
35- 2 This Act shall become effective upon its approval by the
35- 3 Governor or upon its becoming law without such approval.
35- 4 SECTION 6.
35- 5 All laws and parts of laws in conflict with this Act are
35- 6 repealed.
-35-
Clerk of the House
Robert E. Rivers, Jr., Clerk
Last Updated on 04/20/98