Georgia Public Service Commission. Hot Topics and Current Issues Bill Edge Public Information Officer Georgia Public Service Commission

Transcription

1 Georgia Public Service Commission Hot Topics and Current Issues Bill Edge Public Information Officer Georgia Public Service Commission 1

2 Georgia Public Service Commission Chuck Eaton, Chairman Lauren Bubba McDonald, Vice- Chairman Tim G. Echols, Commissioner H. Doug Everett, Commissioner Stan Wise, Commissioner 2

3 Mission The mission of the Georgia Public Service Commission is to exercise its authority and influence to ensure that consumers receive safe, reliable and reasonably priced telecommunications, transportation, electric and natural gas services from financially viable and technically competent companies. 3

4 PSC History 1879-Georgia Railroad Commission established- three members 1905-Commissioners elected-board increased to five members 1922-Name change to Public Service Commission 1943-Commission set in constitution 2000-Districts established 4

5 Meet the PSC Commissioners Stan Wise Lauren Bubba McDonald Tim G. Echols H. Doug Everett 5 Chuck Eaton

6 PSC Facts Five members, elected statewide Must live in one of five districts Six year terms-no term limits Annual salary $116,452 Must be 30 years old, no interest in regulated companies 6

7 PSC Facts 80 employees, 92 positions authorized Three programs: Administration, Utilities Regulation; Facilities Protection 7

8 PSC Facts Utilities composed of Electric, Natural Gas, Telecommunications, Consumer Affairs Administrative includes Internal Consultants Facilities Protection enforces pipeline safety and underground utility infrastructure protection 8

9 Hot Topics and Major Issues for 2016 Plant Vogtle Nuclear Construction Monitoring Georgia Power Integrated Resource Plan Southern Company acquisition of AGL Resources Georgia Power rate case AGLC rate case 9

10 Hot Topics and Major Issues for 2016 Clean Power Plan Workforce Issues 10

11 Plant Vogtle Construction Monitoring Commission certified Georgia Power cost in 2009 at $6.1 billion Georgia Power owns 45.7% Georgia Power estimated capital construction cost at $4.4 million Finance cost estimated at $1.7 million 11

12 Plant Vogtle Construction Monitoring (con d) Instituted semi-annual Vogtle Construction Monitoring (VCM) reports Hired independent construction monitor Georgia Power files report every six months Commission conducts hearings Verifies expenditures but not prudency 12

13 Plant Vogtle Construction Monitoring Georgia Legislature allowed CWIP for nuclear construction in 2009 (S.B. 31) Commission approved CWIP in March 2009 to prepay finance charges on Vogtle construction Known as the Nuclear Construction Cost Recovery NCCR- Tariff Will reduce financing cost by approx. $300 million 13

14 Plant Vogtle Construction Monitoring NCCR will collect approx. $ 414 million in 2016 NCCR true up at end of calendar year $1.4 billion collected through 9/30/15 14

15 Plant Vogtle Construction Monitoring Original Commercial Operation Date (COD) Unit 3 was March 2016, Unit 4 March 2017 New schedule calls for COD in June 2019 and June 2020 Georgia Power cost now at $7.5 billion GPC estimates rate impact 2-4% 15

16 Plant Vogtle Construction Monitoring Litigation settlement announced December 2015 Georgia Power will pay $350 million to settle dispute with contractors Westinghouse takes over as prime contractor Commission to determine recovery from ratepayers or shareholders 16

17 Plant Vogtle Construction Monitoring February 2, 2016: Commission ordered review of settlement, schedule and cost overruns Mini-prudency hearings possible Georgia Power must file explanation 17

18 Plant Vogtle Construction Monitoring Staff has six months to review Commission may conduct hearings 18

19 Plant Vogtle Construction Monitoring 14 th Vogtle Construction Monitoring Report filed February 29, 2016 Georgia Power seeks to verify $168 million in expenditures Hearing schedule will be on next Commission agenda, March 15 19

20 Georgia Power Integrated Resource Plan Required under Georgia Law IRP process approved by legislature in 1992 Followed construction of Vogtle Units 1 &2 $1 billion PSC disallowance 20

21 Georgia Power Integrated Resource Plan Georgia Power files update every three years Twenty year outlook Details resources for electric generation Company filed 2016 IRP January 28,

22 Georgia Power Integrated Resource Plan Hearings begin April 18, 2016 Additional hearings in May and June Decision in July 22

23 Georgia Power Integrated Resource Plan Georgia Power plan calls for closing three coal units Adds 525 Megawatts of solar to generation portfolio 23

24 Georgia Power Rate Case Company will file July 1, 2016 Under Georgia Law this is a six month process 24

25 Rate Case Process Utility files its case petitioning rates to go into effect not less than 30 days from date of filing [OCGA (a)] Commission suspension not longer than five months from date rates would have gone into effect [OCGA (b)] Six months to decide or rates go into effect subject to refund [OCGA (b)] 25

26 Georgia Power Rate Case Georgia Power received rate increase in 2013 Three year rate plan Revenue increase of approx. $374.4 million Step increases each Jan. 1 ROE set at 10.95% with earnings band of 10-12% 26

27 Georgia Power Rate Case Over earnings above 12% shared 2/3 with ratepayers Under earning below 10% Company can file rate case 27

28 What does it mean? Commission must ensure utilities are adequately planning and taking needed actions to serve customers in the future Commission must ensure the plans and actions balance economics and reliability Commission must scrutinize utility costs to ensure they are reasonable and prudent 28

29 Southern Company Acquisition of AGL Resources Acquisition announced August 23, 2015 AGL Resources headquartered in Atlanta Operations in Georgia, Florida, Illinois, Maryland, New Jersey, Tennessee, and Texas Acquisition will create second largest utility in U.S. 29

30 Southern Company Acquisition of AGL Resources Southern Company parent company of Georgia Power Parties filed request with Commission December 17,2015 Hearings begin March 15, 2016 Hearings on April 4 and May 3. Decision on May 24,

31 Southern Company Acquisition of AGL Resources Acquisition subject to Commission review AGLC fully regulated by Commission-pipeline only co. Georgia Natural Gas certificated, monitored by Commission 31

32 Atlanta Gas Light 2016 Rate Case Last rate increase effective 1/1/2011 Southern Company acquisition may put this docket on hold 32

33 Atlanta Gas Light 2010 Rate Case Request AGL filed rate case on May 3, 2010 Decided on October 27, Increase in revenue requirement of $26 million Original filing for revenue increase of $54 million ROE of 10.75% 33

34 Atlanta Gas Light 2016 Rate Case Economic development riders Outside of a rate case Pipeline replacement program, completed Line extensions through Universal Service Fund 34

35 Clean Power Plan Commissioners opposed original draft rule released in June 2014 State Environmental Protection Division is lead agency and plan writer Since SCOTUS stay, EPD has stopped planning efforts Final Rule in August 2015 addressed some Commission concerns 35

36 Workforce Issues Aging workforce, retirements Average age 51, median age 52 Pay stagnation-low or no raises Private sector compensation Reduced state pension 36

37 Workforce Issues Solutions? Pay raises in FY 2017 state budget Additional hires 37

38 Georgia Public Service Commission Contacts On the web: toll free statewide Metro Atlanta fax 38

39 Georgia Public Service Commission Contacts Bill Edge, Public Information Officer , fax 39

40 Georgia Public Service Commission Questions?? 40