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 is uncertainabout moving forward with the customer assignment process becauseof planned legislation that would declare Atlanta Gas Light’s (AGL)entire service territory competitive possibly as early as thisfall.

The legislation, which would mandate system-wide 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 NGI the commission isnot moving to ratify these three markets because the planned billoffers an opportunity to deem all nine pools competitive at thesame 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.”

Commissioner Lauren (Bubba) McDonald disagreed with Baker,however, about notifying pools that have already crossed thethreshold. “Right now, the law says notify the customers whohaven’t switched. I can’t speak for commissioner Baker, nor can Ispeak for the whole commission, but I believe we should do what thelaw tells us to do.”

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 customers who haven’t switched that theyhave 100 days to pick a marketer. If customers from the notifiedpools don’t chose a marketer in the 100 day span, they are randomlyassigned to one 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, sponsored by Rep. Jimmy Skipper (D-Americus),is being crafted primarily to deal with the possibility that someof Georgia’s warmer regions would not be declared competitive intime for the next winter heating season, leaving AGL in gas salesand a few customers potentially to carry stranded costs. “There arecertain pools that are moving slower, and it looks like they won’treach the criteria before the next heating season. That is a majorconcern of the commission and that is why I, commissioner BubbaMcDonald, support the legislation.” The pools McDonald is referringto are Valdosta (22.2%) and Brunswick (17.1%).

John Norris

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