Despite three of Atlanta Gas Light’s nine gas customer poolssurpassing the Georgia Public Service Commission’s (GPSC)requirements to become fully competitive, the GPSC has decided notto move forward with the customer assignment process because ofplanned legislation that would declare Atlanta Gas Light’s (AGL)entire service territory competitive possibly as early as thisfall.

The legislation, which would mandate systemwide competitionforcing AGL out of gas sales before the next heating season, isexpected to be introduced early next week and to proceed quicklyinto law shortly thereafter. GPSC officials said time is a factorbecause only 14 working days remain in the legislature’s currentsession.

GPSC Commissioner Robert (Bob) Baker told Daily GPI thecommission is not moving to ratify these three markets because theplanned bill offers an opportunity to deem all nine poolscompetitive at the same time.

“It appears that there would be less confusion and it would bemore efficient if all AGL customers either picked a marketer orwere randomly assigned on the same schedule for change rather thandoing it one pool group at a time. Additionally, our latest numbersindicate that over 400,000 AGL customers have selected a gasmarketer and these numbers are growing rapidly,” Baker said. “We’renot going to be hasty and ratify these three when we could do allnine all together.”

As it stands now, the state’s gas competition law requires 33%of the customers in a given pool to switch from AGL before it canbe deemed competitive. According to new numbers from AGL, the gaspools of Newnan (36.5%), Augusta (38.6%), and Macon (37.2%) haveall passed the required percentage. The Atlanta Area (30.6%) andAthens (30%) should exceed the threshold by the end of next month.These five pools combine to form 88% of the gas customer base inGeorgia. The law requires the GPSC to ratify the pool ascompetitive and notify unswitched customers that they have 100 daysto pick a marketer. If customers from the notified pools don’tchose a marketer in the 100 day span, they are randomly assigned toone by the GPSC.

Baker said the reason the amendment will be introduced so lateinto the legislative session is because nobody expected customersto switch so quickly. “We’re trying to go as fast as we can,” Bakersaid. “We’re nearing the end of this legislative session, so it isvery important to get the bill introduced or it will suffer seriousdelays. It is equally important that legislators have as fewquestions as possible when the bill hits the floor. We’ve beendoing extensive preparatory work with both houses to explain tothem issues and get them ready so they can pass the billexpeditiously. [Today], we’re going to brief the governor. Overall,I think it will get done.”

The legislation is being crafted primarily to deal with thepossibility that some of Georgia’s warmer regions would not bedeclared competitive in time for the next winter heating season,leaving AGL in gas sales and a few customers potentially to carrystranded costs (See Daily GPI Feb. 19)

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