Retail gas marketers won a major victory last week when aGeorgia Public Service Commission hearing officer ordered AtlantaGas Light’s unregulated marketing affiliate to “immediatelydiscontinue” the use of the name Atlanta Gas Light Services (AGLS)and stop referring to its heritage, reliability and trustworthinesswith respect to its affiliation with the state’s largest gasutility.

The order is effective July 23 unless challenged, in which casethe commission would vote on it. AGL spokesman Ross Willis said heexpected both AGLS and the parent company to file for appeal.

When the AGL Resources subsidiary announced in April that it waschanging its name to AGLS from The Energy Spring Inc., AGLSPresident Stephen Gunther said, “Customers have a right to knowwith whom they are doing business,” i.e., a company Georgians have”known and trusted for reliable gas service for many years.”

Marketers, including PanCanadian Energy Services, UtilityManagement Corp., Infinite Energy, Petroleum Source and Systems,Fina Natural Gas, Optimum Energy Sources and SCANA EnergyMarketing, protested that the change gave the affiliate an unfairadvantage, violating the Georgia Gas Competition and DeregulationAct.

AGLS responded it was the one being disadvantaged because it hadto compete with nationally recognized companies, such as ShellEnergy Services Co., a subsidiary of Houston-based Shell Oil. Butthe PSC hearing officer noted their name recognition “comes from acompetitive environment and not the existing retail natural gasmonopoly environment.

“Any potential harm that may be claimed by AGLS, AGLC and AGLResources Inc. as the result of being required to discontinue theuse of the name.is greatly outweighed by the assurances that such achange will enhance the competitive environment in Georgia,” thehearing officer added. “The marketing affiliate will rely on thereputation it builds as a separate entity and its own businessacumen to secure customers in Georgia, just as all othermarketers.”

AGLS also had argued the First Amendment prohibited thecommission from issuing a cease and desist order directing it torefrain from using “Atlanta Gas Light” in its name. The hearingofficer disagreed, however, citing a 1980 decision by the SupremeCourt, which stated that for commercial speech to be protected bythe First Amendment it must not be misleading. “Contrary to thearguments that have been made, the similarity in names of thepresent retail supplier, Atlanta Gas Light Company, and themarketer, Atlanta Gas Light Services Inc., is so close thatconfusion of the identity of the two is assured.”

The decision orders Atlanta Gas Light Services to immediatelydiscontinue the use of the name and stop making any statements orrepresentations that use its affiliation with Atlanta Gas Light.

Rocco Canonica

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