The Georgia Public Service Commission:

What Is Regulated by the PSC?

Whether or not a utility is regulated by the PSC is determined by the type of service it provides and by whether the utility is owned by investors. The PSC regulates the rates charged and the services provided by most intrastate, investor-owned telecommunications, natural gas and electric utilities operating in Georgia and pipeline safety regulations. The Commission does not set rates for municipally-owned electric and gas utilities or electric membership corporations (EMCs). However, municipally-owned electric companies and EMCs must come before the Commission on some matters such as financing and the resolution of territorial disputes. The Commission also must solve territorial disputes for municipally owned gas companies as well as ensure the safety of all natural gas pipelines in the state. The four main kinds of utilities regulated by the PSC are electric, gas, telecommunications.

Electric
Investor-owned electric power companies (2)
Electric membership corporations (42) (Territory and financing only)
Municipally-owned electric power companies (52) (Territory only)

Gas
Investor-owned natural gas companies (1)
Liquefied Natural Gas Plants (5) (Safety only)
Master meter operators (131) (Safety only)
Municipally-owned natural gas companies (84) (Safety and territory only)

Telecommunications
Alternate operator service providers (160)
Automatic dialing and announcement devices (115)
Pay Phone Service Providers (603)
Institutional telephone service providers (38)
Interexchange carriers (78)
Resellers (600)
Telephone companies (34)
Telephone service observing equipment users (338)
Competitive Local Exchange Carriers (221)

The Georgia Public Service Commission does not regulate:
Butane gas
Cable television
Cellular telephones
Long-distance telephone service
Propane gas
Sewer services
Water services

Who Provides Electricity?
In Georgia, three types of electric suppliers serve the public --
Electric Membership Corporations (EMCs), municipalities and investor-owned power companies. Since the Commission regulates only investor-owned utilities, the only electric utilities whose rates are set by the PSC are Georgia Power Company and Savannah Electric, the only investor-owned electric utilities in the state. As investor-owned companies, Georgia Power and Savannah Electric pay all taxes. Publicly-owned, non-profit utilities such as EMCs, which pay ad valorem and property taxes but no income taxes, and municipally-owned utilities, which pay no taxes at all, are regulated by their own boards of directors or other similar governing bodies and essentially are not subject to outside regulation. EMCs and municipalities serve the greatest area in Georgia. However, Georgia Power and SEPCO serve the most people. Georgia Power alone, in 2000, served 1.9 million people. In 1991, the Georgia Legislature enacted laws requiring integrated resource planning (IRP) by Georgia Power and Savannah Electric, as well as certification by the PSC prior to any new construction of electric plants. The Public Service Commission approves Georgia Power and Savannah Electric's 20-year plans for providing power and encouraging conservation.
There are currently 42 EMCs providing service in Georgia. Of these, 39 formed a wholly owned subsidiary in 1974 called Oglethorpe Power Corporation (OPC), the nation's largest electric cooperative. Oglethorpe Power Corporation is the not for profit power supplier to these EMCs. OPC is directed by its member EMCs and two non-Georgia EMCs based in North Carolina and Florida that serve a number of Georgia customers. Originally, EMCs only bought power and distributed it to their members. Today, the EMCs, through contracts with independent power producers, are involved in the generation and transmission of electricity. These 39 EMCs and OPC serve over 70% of the land area of Georgia and approximately 1.3 million customers. The PSC's limited regulatory jurisdiction over the EMCs includes resolution of territorial matters and approval authority over applications for financing.
Fifty-two Georgia cities provide electric service to their customers but do not come under PSC jurisdiction except that they are required to file their rates with the Commission and in territorial matters. Forty-seven of these cities and Crisp County are members of the Municipal Electric Association of Georgia (MEAG). The cities of Acworth and Hampton are wholesale customers of MEAG and Georgia Power, respectively. The city of Dalton owns its own generation and transmission facilities.
The Tennessee Valley Authority (TVA) serves the three EMCs that are not part of Oglethorpe Power Corporation and are located in North Georgia. In northwest Georgia, TVA, through the city of Chickamauga and the Electrical Board of Chattanooga serves customers in this state. The legal boundaries of each electric utility are assigned under the Georgia Territorial Electric Service Act. The PSC is responsible for enforcing this law and resolving territorial disputes.

Who Provides Natural Gas Service?
Today there is one investor-owned natural gas distribution company regulated by the Georgia Public Service Commission over which it has safety and rate jurisdiction: United Cities Gas Company. United Cities Gas Company provides service in the Columbus and Gainesville areas. The Commission regulates the pipeline and distribution charges of Atlanta Gas Light which distributes gas on behalf of natural gas marketers as part of the 1997 Natural Gas Competition and Deregulation Act.
Another source for in-state natural gas service is through one of 84 municipal systems. The PSC has gas safety jurisdiction over municipal systems -- and two intrastate transmission lines -- but does not regulate rates or services of municipally-owned systems. When municipal gas service is offered outside county limits, the PSC has rate and territorial jurisdiction.
Today the PSC has authority over nearly 36,000 miles of gas distribution and transmission lines. These systems transport more than one-third of Georgia's natural gas supply for two million people. Natural gas service is certified in 90 percent of the counties in Georgia. A gas system (a municipal or investor-owned system) must apply for and receive a certificate of public convenience and necessity from the PSC before it can expand into a new area.
Implementation of deregulation has changed the Natural Gas Industry in Georgia from a regulated monopoly to a competitive marketplace. Marketers provide gas service to residential customers, normally served only by investor-owned utilities or municipalities. Legislation approved in the 2001 General Assembly will allow the Commission to enforce strict billing requirements on the marketers as well as allow the Commission to provide low-income assistance from the Universal Service Fund.

Who Provides Telecommunications Services?
Telephone service regulation was added to the Commission's responsibilities in 1907. In 1950, the legislature gave the PSC the power to mandate telephone service in areas of the state that needed it. By giving the Commission this authority, the lawmakers made clear the state's intent to provide all citizens with at least a minimal level of telephone service. However, passage of the Telecommunications and Competition Development Act of 1995 (Senate Bill 137) significantly changed the Commission's regulatory responsibilities. Instead of setting prices for telecommunications services, the PSC now manages and facilitates the transition to competitive markets, establishes and administers a universal access fund to assure reasonable access to services, monitors rates and service quality, and mediates disputes between competitors.
There are 34 telephone companies providing local service in the state. Thirty are investor-owned, such as Southern Bell, and four are non-profit cooperatives owned by subscribers. As of December 31, 1996, the Commission had certificated 223 competitive local exchange providers. The PSC regulates 516 providers of long distance services. This includes 21 Interexchange carriers such as AT&T, MCI and Sprint, and 366 resellers of long distance service and 123 providers of alternative operator services.
Innovation in technology has led to a variety of communication services that are regulated by the PSC. There are 263 regulated telephone service observing equipment users in the state and 108 authorized users of automatic dialing and announcement devices. Customer-owned coin-operated telephone service (pay phones) in Georgia is provided by 517 certified individuals and companies and 30 institutional telephone service providers regulated by the PSC. As of December 31, 2000, there were 1262 telephone service providers and 371 users of automatic dialing and announcement devices and telephone service observing equipment regulated by the PSC.

How Does the PSC Protect Georgia Citizens?
In thousands of instances each year, the Georgia Public Service Commission is the last hope of many Georgia consumers in resolving their problems with utilities regulated by the Commission. In total, Consumer Affairs handled 99,962 citizen contacts in 2000. The contacts included consumer complaints and questions, media inquiries, requests for information and assistance, consumer comments regarding issues before the Commission, and all incoming calls made on the Commission's toll-free and local telephone lines. There was a 30.6 percent increase in consumer complaints handled in 2000 as compared to 1999-1996. Staff is trained to investigate and resolve disputes between utility companies and their customers.
Some utilities, such as telephone and gas, are becoming more competitive and the PSC is establishing rules that allow utility companies to operate more freely while empowering consumers with the right information to make wise decisions. The PSC also provides informational materials to help educate consumers about recent changes in utility services.
Divisions of the PSC also protect Georgia consumers by ensuring that adequate, reliable service is provided and by enforcing Commission rules and regulations. The following are examples of how the PSC protects Georgia's consumers. Figures cited are for 2000.
The Utilities Division inspected 1,250 customer-owned coin-operated telephones in the state in 2000. The Pipeline Safety Unit spent 1,120 man days either conducting safety inspections or providing pipeline operators throughout the state with on-going training regarding federal safety standards.

How Can Consumers Participate in the PSC Process?
The Public Service Commission provides many avenues for Georgia's residents to participate in the process of regulating utilities. All hearings, administrative sessions and committee meetings of the PSC are open to the public. The PSC's dockets of pending and closed cases are available to the public.
Administrative sessions of the PSC are held the first and third Tuesday of each month at 10 a.m. at the Commission's offices in Atlanta. Committee meetings are scheduled the on second and fourth Thursday of each month preceding the Administrative session. Public hearings usually are scheduled regularly. Consumers can call the PSC or obtain the schedule for hearings, administrative sessions and committee meetings on the internet at http://www.psc.state.ga.us. The number of days scheduled for a hearing depends upon the complexity of the issue. Rate case hearings usually require an average of nine days.
Hearings and investigations may be conducted at the PSC offices, or in another part of the state if that is more convenient for the public. Notices of public hearings are published by the utility in newspapers in the affected areas. Utilities and docketed matters are available at the PSC offices in Atlanta or electronically via the above Internet address. Although documents may be read at state offices, there is a small fee for copying them. It is helpful, but not necessary, to know the docket number in advance.
Though the Consumers' Utility Counsel represents the state's residential and small commercial and industrial consumers in proceedings before the PSC, individual consumers may also participate. On the first day of a proceeding, any interested individual may sign up to provide an oral or written statement of his/her position on an issue before the commissioners. Consumers may also attend committee meetings and present their concerns.
A consumer may inform the commissioners of his or her position on an issue by writing or calling the PSC or by submitting a petition. A consumer who wishes to personally present his/her position on a matter may ask the Executive Secretary's office to schedule the matter with the appropriate Committee Chairman. Mailing addresses are PSC, 244 Washington St., SW, Atlanta, GA 30334. Telephone numbers for the Commission are (404) 656-4501 and toll-free 1-800-282-5813.

How Does the Commission Decide a Rate Case?

The Georgia Public Service Commission approves or denies requests for changes in rates for rate of return regulated companies by examining petitions submitted by the utilities it regulates. Please note, however, that not all utilities regulated by the Commission are rate of return regulated. Currently, Georgia Power Company, Savannah Electric Power Company, United Cities Natural Gas Company, and 8 of Georgia's small rural local telephone companies are rate of return regulated. Atlanta Gas Light Company's wholesale rates for services to natural gas marketers are rate of return regulated; however, the Commission does not set retail rates charged by natural gas marketers to consumers. Most telephone companies in Georgia, including BellSouth Telecommunications, Inc., are not rate of return regulated.
When a request is brought before the PSC, it may be taken up first by one of two standing committees: Telecommunications or Energy. Here is a simplified explanation of utility rate case procedures. Non-rate issues follow an abbreviated version of this process.

The Utility Files Its Petition
The utility requesting a rate increase first serves a public notice of intent. It then files a rate case petition with all supporting data, including a request for the proposed rates to take effect in 30 days. The Commission studies the utility's petition and sets a hearing date.

PSC Studies the Petition
By law, the proposed new rates go into effect 30 days from the filing date, unless the commissioners vote to suspend them. Normally, the commissioners order a five-month suspension of the proposed rate so the staff can study all data submitted by the utility. At this time, the Commission may designate its adversary/advisory staff. During a rate case, the Commission's designated adversary staff is considered separate from the five elected commissioners. The adversary staff puts on its own case, usually opposing the utility's request. The adversary staff's attorney cross-examines utility witnesses.
A separate staff advisory team is designated to answer commissioners' questions and to support them. The adversary staff prosecutes the case. Also, the Consumers' Utility Counsel (CUC) represents residential and small commercial consumers in the rate case procedure. The utility publishes a notice of hearing in newspapers of general circulation in its service area. This is done 30 to 60 days after the filing. The PSC issues a scheduling order and may hold a pre-hearing conference with all interested parties. The Commission staff can request any additional information it needs on the rate request, and the utility provides it.

Interested Parties Intervene
For 30 days following the first published notice of the proceedings, requests to intervene are considered by the Commission. The Commission grants the requests either at the pre-hearing conference or on the first day of the hearing. The intervenors can request information from the utility, which it must provide. The Commission staff and other intervenors begin their investigations. Adversary staff activities may include hiring consultants, taking depositions from witnesses, limited auditing of selected utility records and gathering other data.

Formal Rate Hearings Conducted
The utility presents its case at a public hearing conducted by the commissioners within 90 to 120 days after the initial filing. These hearings generally last from three to five days.
Public witnesses usually present their testimony the first day. All witnesses are subject to cross-examination by the adversary staff and other intervenors.
The advisory staff completes its review and develops the Commission position on various elements in the case. Both the advisory staff and intervenors pre-file testimony and exhibits.
The adversary staff does not take an official position until it is ready to pre-file its own testimony. The adversary staff makes an independent recommendation on rates 10 days before the hearing date.
A second set of public hearings, 120 to 165 days after the initial filing, is held for the staff and other Intervenors to present their case and to be cross-examined by the utility.
The utility files rebuttal testimony 10 days before a third set of public hearings. At those hearings, the utility presents its rebuttal to the staff's and other intervenors' findings.
This set of public hearings is held 160 to 165 days after the initial filing. During this set of hearings, the Commission Staff and other intervenors cross-examine the utility.

Commission Issues Rate Order
The Commissioners take the case under advisement following the third set of public hearings. All parties involved -- the utility, Commissioners, Commission Staff, and intervenors -- review the transcript and records of the hearings and file recommendations, a proposed order, briefs, etc.
At a subsequent administrative session, held the first and third Tuesday of each month, or at a special called meeting, the commissioners decide what, if any, rate increases to grant and when the utility can put the new rates into effect. The commissioners must make this decision within six months of the original filing date or the utility is legally entitled to 100 per cent of its request, under bond and subject to refund.
After a decision on the rate case, the Commission issues an interim and/or final order. The new rates go into effect 165 to 180 days after the initial filing of the rate change request. The utility may ask the Commission to reconsider its decision within 10 days after the order. The utility may appeal the Commission's decision to the Fulton County Superior Court within 30 days after the final order. Also, the intervenors may request a rehearing and/or appeal the Commission's decision to the courts.

Commission Responsibility
In making its decisions, the Georgia Public Service Commission has a duty to balance the service needs of Georgia's residents with the financial needs of the utility. The U.S. Supreme Court has determined that rates must permit the utility to earn a return comparable to that of enterprises involving similar risk, to preserve the financial integrity of the company and to allow the company to attract investors.
The Georgia Public Service Commission requires regulated utilities to provide adequate service at fair and reasonable rates and to treat all customers equitably.

Source: Georgia Public Service Commission