The Georgia Public Service Commission (GPSC) unanimouslyapproved an accounting order earlier this week, which outlined theprocedure by which AGL Resources could file for stranded costrecovery. The parent of the deregulating Atlanta Gas Light willcompletely exit the merchant function next month.

The accounting order allows the company to place, in a separateaccount, those costs associated with its deregulation process fromthe period of Oct. 1, 1999 and Sept. 30, 2000. The order alsodirects the company to begin amortizing those costs immediately. Itrequires a public hearing to be held before any recovery isgranted. In the event recovery of any costs is disallowed in futureproceedings, the company continues to amortize such costs.

“Today’s event is very procedural in nature,” said BubbaMcDonald, a GPSC commissioner. “It basically outlines the way AGLcan apply for stranded cost recovery. It sets guidelines on whatthey can and cannot book.”

Robert Baker, another GPSC commissioner, said yesterday’sdecision in no way guarantees AGL success in recovering itsstranded costs. “The burden is still on AGL to make a showing to usand everybody else about what they think are stranded costs. After[the vote], AGL now has the vehicle, at least, to apply forrecovery.”

For the first and second quarters of 1999, AGL has argued thatits overall financial performance has suffered because of the statederegulation (see Daily GPI, Aug. 2). The gas utility began itsderegulation efforts last fall.

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