HB637.html

To amend Title 46 of the Official Code of Georgia Annotated, relating to public utilities and public transportation, so as to change the provisions relating to payment of special fee by corporations and utilities subject to the jurisdiction of the Public Service Commission; to change provisions of the "Natural Gas Competition and Deregulation Act"; to change the definition of certain terms; to define additional terms; to provide that a retail customer shall be authorized to change marketers at least twice a year without incurring any service charge relating to such change to an alternative marketer; to limit the amount of deposit that a marketer may require from a retail customer; to require the Public Service Commission to include in public communications in newspapers throughout the state a summary of the price per therm and any other amounts charged to retail customers by each marketer operating in this state and any additional information which the commission deems appropriate to assist customers in making decisions regarding choice of a marketer; to authorize the adoption of rules and regulations relating to billing practices of marketers and their customer services; to change the provisions relating to temporary directives; to authorize said commission to impose temporary directives on marketers under certain conditions; to provide that whenever a marketer discovers or has called to its attention a billing error or other mistake acknowledged or admitted to by the marketer and resulting in an overpayment by a retail customer, such marketer shall be required automatically and immediately to provide a credit or refund of the amount of the overpayment to the customer; to prohibit a marketer from requiring a retail customer to whom it owes a credit or refund to submit in writing a request for such credit or refund before the marketer complies with the provisions of this Act; to require the Public Service Commission to adopt code of conduct rules and enforcement procedures to govern the relationship between an electric membership corporation and its EMC gas affiliate; to provide that the code of conduct rules shall include certain requirements; to limit the amount an electric membership corporation may invest in an EMC gas affiliate; to further regulate the relationship between an electric membership corporation and its EMC gas affiliate; to clarify existing law applicable to the provision of ancillary services; to prescribe certain duties for the Public Service Commission; to provide that an EMC gas affiliate of an electric membership corporation organized and operating pursuant to certain laws may apply for and be granted a certificate of authority to provide gas services as authorized under certain provisions of law on the same basis as any other person granted such authority; to provide that the creation, capitalization, and control of an EMC gas affiliate engaged in the distribution of gas or other persons providing ancillary services shall be deemed to be among the purposes of an electric membership corporation; to provide that nothing in this Act shall be deemed to increase or decrease the authority and jurisdiction of the Public Service Commission with respect to an electric membership corporation except as to gas distribution services undertaken by the electric membership corporation or its EMC gas affiliate as authorized under this Act; to change provisions relating to universal service funds; to provide authority for assisting elderly and low-income persons with respect to the cost of gas during the winter heating season; to provide for related matters; to provide an effective date; to repeal conflicting laws; and for other purposes.

Said title is further amended by striking in its entirety Code Section 46-4-152, relating to definitions applicable under Article 5 of Chapter 4 of said title, and inserting in lieu thereof a new Code Section 46-4-152 to read as follows:
"46-4-152.
As used in this article, the term:
(1) 'Adequate market conditions' means the existence of market conditions in relation to distribution service within a particular delivery group that have been determined pursuant to subsection (b) of Code Section 46-4-156 to warrant customer assignment.
(2) 'Affiliate' means another person which controls, is controlled by, or is under common control with such person.
(3) 'Ancillary service' means a service that is ancillary to the receipt or delivery of natural gas, including without limitation storage, balancing, peaking, and customer services. Notwithstanding any provision of law to the contrary, any person may perform an ancillary service without first becoming certificated pursuant to Code Section 46-4-153.
(4) 'Commodity sales service' means the sale of natural gas exclusive of any distribution or ancillary service.
(5) 'Control' includes without limitation the possession, directly or indirectly and whether acting alone or in conjunction with others, of the authority to direct or cause the direction of the management or policies of a person. A voting interest of 10 percent or more creates a rebuttable presumption of control. A voting interest of 25 percent or more is deemed to constitute control. The term control includes the terms controlling, controlled by, and under control with and, with respect to electric membership corporations and their EMC gas affiliates, under common management with.
(6) 'Customer assignment' means the process described in subsection (e) of Code Section 46-4-156 whereby retail customers within a particular distribution group who are not under contract for distribution service from a marketer are randomly assigned to certificated marketers.
(7) 'Customer service' means a function related to serving a retail customer including without limitation billing, meter reading, turn-on service, and turn-off service.
(8) 'Delivery group' means a set of individual delivery points on one or more interstate pipeline suppliers to a gas company that may be aggregated and utilized for the distribution of gas to a particular set of retail customers.
(9) 'Distribution service' means the delivery of natural gas by and through the intrastate instrumentalities and facilities of a gas company or of a marketer certificated pursuant to Code Section 46-4-153, regardless of the party having title to the natural gas.
(10) 'Electing distribution company' means a gas company which elects to become subject to the provisions of this article and satisfies the requirements of Code Section 46-4-154.
(10.1) 'Electric membership corporation' or 'EMC' means any person defined in paragraph (3) or (5) of Code Section 46-3-171.
(10.2) 'Electricity activities' means all activities associated with the generation, transportation, marketing, and distribution of electricity.
(10.3) 'EMC gas affiliate' means a separately organized person, the majority interest of which is owned or held by or, with respect to a cooperative, managed by one or more cooperatives or electric membership corporations and which applies to the commission for a certificate of authority pursuant to Code Section 46-4-153.
(11) 'Firm' means a type of distribution service which ordinarily is not subject to interruption or curtailment.
(11.1) 'Gas activities' means all activities associated with the transportation, marketing, and distribution of natural gas conducted by a person certificated pursuant to Code Section 46-4-153. Such term shall not mean the generation, transportation, marketing, or distribution of liquefied petroleum gas.
(12) 'Interruptible' means a type of distribution service which is subject to interruption or curtailment.
(12.1) 'Majority interest' means the ownership of 51 percent or more of:
(A) The partnership interest in a general or limited partnership;
(B) The membership interests of a limited liability company; or
(C) The stock in a for profit corporation which entitles the shareholder to vote and share in common or preferred dividends.
(13) 'Marketer' means any person certificated by the commission to provide commodity sales service or distribution service pursuant to Code Section 46-4-153 or ancillary services incident thereto.
(14) 'Person' means any corporation, whether public or private; company; individual; firm; partnership; or association, including a cooperative or an electric membership corporation.
(15) 'Retail customer' or 'retail purchaser' means a person who purchases commodity sales service or distribution service and such purchase is not for the purpose of resale.
(16) 'Straight fixed variable' means a rate form in which the fixed costs of providing distribution service are recovered through one or more fixed components and the variable costs are recovered through one or more variable components.
(17) 'Winter heating season' means the calendar days from October 1 of one year through March 31, inclusive, of the following year."

Said title is further amended by striking in its entirety Code Section 46-4-157, relating to temporary directives, and inserting in lieu thereof a new Code Section 46-4-157 to read as follows:
"46-4-157.
If, in an expedited hearing:
(1) The commission determines for a specific delivery group, as to which the commission has issued an order pursuant to subsection (b) of Code Section 46-4-156, that the prices for natural gas paid by retail customers in such delivery group are not constrained by market forces and are significantly higher than such prices would be if they were constrained by market forces; or
(2) The commission determines for a specific delivery group, as to which the commission has not issued an order pursuant to subsection (b) of Code Section 46-4-156, that the prices charged by an electing distribution company to residential customers for commodity sales services, which prices have not been approved by the commission pursuant to Code Section 46-2-26.5, are generally not constrained by market forces and are significantly higher than such prices would be if they were constrained by market forces,; or
(3) The commission determines for a specific delivery group, as to which the commission has issued an order pursuant to subsection (b) of Code Section 46-4-156, that market conditions are no longer competitive,
then the commission, on an emergency basis, may by order temporarily impose such directives on ~~gas companies subject to its jurisdiction~~ the electing distribution company and marketers as are required to protect the interests of retail customers in such delivery group including but not limited to price regulations on the electing distribution company and marketers and the imposition upon the electing distribution company of the obligation to serve retail customers in such delivery group under the same or similar conditions to those under which such customers were served prior to customer assignment in such delivery group. For purposes of this Code section, market conditions shall be considered competitive as long as there are at least three marketers soliciting retail customers and providing distribution services in this state. In no event shall such emergency directives extend beyond the first day of July immediately following the next full annual session of the General Assembly after the imposition of such directives. In its order the commission shall provide for recovery of all costs reasonably incurred by the electing distribution company in complying with the directives. Any such directives shall be drawn as narrowly as possible to accomplish the purpose of protecting the public on an interim basis. No such directive shall impose any condition upon the electing distribution company which unreasonably burdens the company. Such directives shall be immediately reviewable in the Superior Court of Fulton County in the same manner and subject to the same procedures as the review of any other contested case under the provisions of Code Section 50-13-19. ~~The provisions of this Code section shall not apply to a delivery group for which customer assignment occurred more than four years prior to the date of notice of the expedited hearing.~~"

Said title is further amended by striking in its entirety Code Section 46-4-160, relating to authority of commission with respect to marketers, and inserting in lieu thereof a new Code Section 46-4-160 to read as follows:
"46-4-160.
(a) With respect to a marketer certificated pursuant to Code Section 46-4-153, the commission shall have authority to:
(1) Adopt reasonable rules and regulations governing the certification of a marketer;
(2) Grant, modify, impose conditions upon, or revoke a certificate;
(3) Adopt reasonable rules governing service quality; ~~and~~
(4) Resolve complaints against a marketer regarding that marketer´s service.;
(5) Adopt reasonable rules and regulations relating to billing practices of marketers and information required on customers´ bills; and
(6) Adopt reasonable rules and regulations relating to minimum resources which marketers are required to have in this state for customer service purposes. The rules and regulations may require a marketer to have and maintain the ability to process cash payments from customers in this state. The rules and regulations may provide procedures relating to the handling and disposition of customer complaints.
(b) Each ~~Prior to the determination by the commission pursuant to Code Section 46-4-156 that adequate market conditions exist within a delivery group, each~~ marketer must separately state on its bills to retail customers within the delivery group the charges for firm distribution service and for commodity sales.
(c) A marketer shall not refuse to sell gas to a potential firm retail customer within the territory covered by the marketer´s certificate of authority if the sale can be made by the marketer pursuant to the rules for service authorized by the marketer´s certificate of authority and upon terms that will provide the marketer with just and adequate compensation. The price at which a marketer sells gas shall not be fixed by the commission.
(d) The commission and the consumers´ utility counsel division of the Governor´s Office of Consumer Affairs shall have access to the books and records of marketers as may be necessary to ensure compliance with the provisions of this article and with the commission´s rules and regulations promulgated under this article.
(e) Except as otherwise provided in this article, certification of a person as a marketer by the commission pursuant to Code Section 46-4-153 does not subject the person to the jurisdiction of the commission under this title, including without limitation the provisions of Article 2 of Chapter 2 of this title.
(f) The provisions of Article 3 of Chapter 2 of this title shall apply to an investigation or hearing regarding a marketer. The provisions of Articles 4 and 5 of Chapter 2 of this title shall apply to a marketer.
(g) The provisions of Part 2 of Article 15 of Chapter 1 of Title 10, the 'Fair Business Practices Act of 1975,' shall apply to a marketer.
(h) The commission is required to include in current public communications in newspapers throughout the state a summary of the price per therm and any other amounts charged to retail customers by each marketer operating in this state and any additional information which the commission deems appropriate to assist customers in making decisions regarding choice of a marketer."

Said title is further amended by adding between Code Section 46-4-160.1 and 46-4-161 a new Code Section 46-4-160.2 to read as follows:
"46-4-160.2.
(a) No later than September 30, 2001, the commission shall adopt a code of conduct rules and enforcement procedures to govern the relationship between an electric membership corporation and its EMC gas affiliate. The rules promulgated under this Code section shall be designed to prevent cross-subsidization between the provision of electricity and the provision of natural gas services, to encourage competition by EMC gas affiliates in the marketing of natural gas to retail customers, and to protect the privacy of both electric and gas customers.
(b) The code of conduct rules adopted by the commission under this Code section shall include the requirements set forth in this subsection, as well as such other rules as the commission shall determine are necessary to protect electric and gas customers and promote competition:
(1) To ensure that cross-subsidizations do not occur between the electricity services of an electric membership corporation and the gas activities of its EMC gas affiliate, the rules adopted by the commission shall provide that each electric membership corporation having an EMC gas affiliate shall:
(A) Fully allocate all electricity activities costs and gas activities costs, including costs for any shared services, between the electric membership corporation´s electricity activities and the gas activities of its EMC gas affiliate, in accordance with the applicable uniform system of accounts and generally accepted accounting principles, as applicable;
(B) Develop and maintain a cost allocation manual, approved by the commission, describing the electric membership corporation´s methods of cost allocation and such other information and policies reasonably required by the commission to ensure compliance with this article and the code of conduct promulgated by the commission. Such manual shall:
(i) Establish rules for the pricing of transactions between an electric membership corporation and its EMC gas affiliate, including the transfer of assets among the two;
(ii) Prohibit discriminatory pricing among similarly situated gas customers;
(iii) Prohibit loans and guarantees from the electric membership corporation to or investment in its EMC gas affiliate so long as the electric membership corporation has any loan or guarantee from the federal or state government or any agency or department thereof remaining outstanding;
(iv) Require the electric membership corporation and its EMC gas affiliate to maintain separate books of accounts and records; and
(v) Require the annual filing of a statement with the commission certifying the compliance by the electric membership corporation and its EMC gas affiliate with the approved cost allocation manual; and
(C) Not charge any costs of the EMC gas affiliate to the electric membership corporation´s electricity customers; and
(2) To protect customer privacy and prevent the misuse of customer information, the rules adopted by the commission shall provide that each electric membership corporation shall not release any proprietary customer information to its EMC gas affiliates without obtaining prior verifiable authorization from the customer, as determined in accordance with rules established by the commission.
(c) An electric membership corporation may make and maintain investments in, lend funds to, and guarantee the debts and obligations of an EMC gas affiliate in total not to exceed 15 percent of such electric membership corporation´s net utility plant.
(d) The commission shall accommodate the organizational structures of electric membership corporations; shall prohibit an electric membership corporation and any related entity from sharing directors but shall not prohibit an electric membership corporation and any related entity from sharing officers or employees; and shall permit the use of the electric membership corporation´s trade name and logo by the EMC gas affiliate, without remuneration or cost accounting, but subject to the provisions of Part 2 of Article 15 of Chapter 1 of Title 10, the 'Fair Business Practices Act of 1975,' and Part 1 of Article 15 of Chapter 1 of Title 10, the 'Uniform Deceptive Trade Practices Act.'
(e) Notwithstanding anything to the contrary contained in this Code section, the commission shall make accommodation for the specific legal requirements imposed by state or federal laws applicable to electric membership corporations and other cooperatives."

Said title is further amended by striking in their entirety subsections (a) and (b) of Code Section 46-4-161, relating to universal service funds of electing distribution companies, and inserting in lieu thereof new subsections (a) and (b) to read as follows:
"(a) The commission shall create for each electing distribution company a universal service fund for the purpose of:
(1) Assuring that gas is available for sale by marketers to firm retail customers within the territory certificated to each such marketer; ~~and~~
(2) Enabling the electing distribution company to expand its facilities and service in the public interest.; and
(3) Assisting elderly and low-income customers subject to price increases during the winter heating season.
(b) The fund shall be administered by the commission under rules to be promulgated by the commission in accordance with the provisions of this Code section. Prior to the beginning of each fiscal year of the electing distribution company, the commission shall determine the amount of the fund appropriate for such fiscal year. In making such determination, the commission shall consider the following:
(1) The amount required to provide appropriate compensation to marketers with respect to uncollectible accounts arising from commodity sales to firm retail customers; and
(2) The amount required to provide sufficient contributions in aid of construction to permit the electing distribution company to extend and expand its facilities from time to time as the commission deems to be in the public interest.; and
(3) The amount required to assist elderly and low-income customers subject to price increases during the winter heating season."

Said title is further amended by striking in its entirety Code Section 46-4-164, relating to construction of article, and inserting in lieu thereof a new Code Section 46-4-164 to read as follows:
"46-4-164.
(a) Nothing in this article shall be deemed to apply or impose requirements not otherwise existing on gas distribution companies owned by any county, municipality, other political subdivision, or governmental authority of this state; nor are the provisions of this article intended to increase or decrease the authority and jurisdiction of the commission with respect to the distribution, sale, or transportation of gas by any county, municipality, other political subdivision, or governmental authority of this state. Nothing in this article shall be construed to limit or otherwise affect the existing powers of municipal corporations or other political subdivisions of this state relating to the granting of franchises or the levying or imposition of taxes, fees, or charges.
(b) Notwithstanding any provision of law to the contrary, including, without limitation, Article 4 of Chapter 3 of this title, an EMC gas affiliate of an electric membership corporation organized and operating pursuant to Article 4 of Chapter 3 of this title may apply for and be granted a certificate of authority to provide any service as authorized under this article on the same basis as any other person as defined in Code Section 46-4-152. The creation, capitalization, or control of (1) an EMC gas affiliate engaged in activities subject to the provisions of this article and the rules and regulations established by the commission or (2) other persons providing ancillary services shall be deemed to be among the purposes of an electric membership corporation as specified in paragraphs (2) and (3) of Code Section 46-3-200. Nothing in this article shall be deemed to increase or decrease the authority and jurisdiction of the commission with respect to such electric membership corporation except as to gas activities undertaken by the electric membership corporation or its EMC gas affiliate as authorized under this chapter."