Atlanta Gas Light Co. (AGL) reached an agreement with theGeorgia Public Service Commission (GPSC) Wednesday to return to itspre-deregulation billing methods, avoiding a Feb. 3 Commissionhearing intended to charge the utility with disregarding marketconstraints in its rate-charging practices. The utility also agreedto refund $14.5 million to overcharged customers. The reformedbills and the refunds will be sent out in February.

The agreement protects AGL from a more strict punishment fromthe GPSC, which was searching for a $25 million refund andre-regulation of rates.

Ross Willis, an AGL spokesman, said $8 million of the refund washeaded to customers as part of the money left over from costsassociated with converting to a deregulated industry in November.The other $6.5 million is to be spread over 263,000 customers AGLhas identified as the most damaged by the increase in rates. AGLstill has 80% of the gas market in Georgia, despite 284,000customers switching to other marketers since November.

“This agreement accomplishes two of our main goals,” saidWillis. “Number one on our priority list was to eliminate customerconfusion. Now people will only be charged for what they use.Number two on our list was to demonstrate to the customers who weremost hurt by our rate changes that we did not mean any harm. Thehigh bills were caused by warm weather, but the customers still gothurt.”

The change is the result of a public uproar concerning AGL’sdecision to switch from actual-usage billing to demand-basedbilling when the GPSC deregulated rates last November.Unfortunately for the company, it switched to the demand-basedsystem at a time when warm temperatures caused people to use verylittle gas. AGL also included reservation fees in the billingadjustment. “People were getting charged more and using less gas,”Willis said.

Responding to a public outcry which left phone lines to both theGPSC and AGL flooded, the Commission scheduled the Feb. 3 hearing.According to pre-hearing testimony from analysts and GPSC members,AGL was on track to overcharge its customer base $300 million bySeptember. “There was so much confusion, and communication was sobad, that going back to the old system is probably a good thing.”Willis added.

Although this agreement settles the issue, AGL will still haveto show up at the GPSC on Feb. 3, the company said. All the issuesof the original hearing have been resolved, but the GPSC will holdan open forum for the public to comment on AGL’s billing methods.

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