The 16 gas suppliers vying for Georgia customers had theirmoment of truth earlier this month, as Atlanta Gas Light (AGL)determined their market share and presented the results to theGeorgia Public Service Commission (GPSC). As expected, GeorgiaNatural Gas Services, an AGL affiliate, and Scana Energy Marketinggained the most customers, receiving over 60% of the market betweenthem.

Overall, more than 1.1 million people switched gas suppliersfrom AGL during the eight-month process. That leaves under 300,000people to be randomly assigned to the suppliers. The number ofcustomers a supplier gains from that pool will be determined by itsmarket share. From the results AGL gave the GPSC, Georgia Naturalstands to gain around 95,000 more customers and Scana will gainaround 92,000

One surprise, said a source close to the process, was the thirdplace finisher, Peachtree Natural Gas, which has gained 11% of theavailable customers so far. He had expected Shell Energy Services(the fourth place finisher with 10% of the market) or ColumbiaEnergy (who stands in fifth place with just over 5%) to placethird.

The number of people to be randomly assigned is higher than theGPSC considered ideal. “We had targeted 100,000 people as theamount we wanted to randomly assign,” said Nancy Tyler, a member ofthe GPSC gas staff. “From that standpoint, you could say we fellshort of our goal. But, from another point of view, nobody thoughtwe’d get to random assignment this fast either.”

Although it is not too late to switch from AGL, it has formedthe random assignment lists and distributed them to the marketers.While the GPSC said it is important that people realize they canstill switch, it also admitted confusion has crept into theprocess. The day before market share was determined (Aug. 11),77,000 people switched from AGL, thinking it was their last chancebefore being put on a random assignment list. In fact, they had afew more days to do so. The 77,000 people who switched was aone-day record for the state, said Millicent Hunter, an AGLspokeswoman.

“Apparently, many people had it in their minds that if theyhadn’t switched by Aug. 11, they would be put in a randomassignment pool. There were people calling at 1 a.m. trying toswitch suppliers,” said Bobby Baker, a Georgia Public ServiceCommissioner. “Unfortunately, there is still plenty of time toswitch without having your name put in the random assignment pool.”

Switching suppliers is still possible, but there are drawbacks,said Baker. “People who have waited this long to switch now mayface some problems. They could switch, but their name might stillmake it onto a random assignment list. Obviously if that happens,the supplier they selected would be their provider, but there couldbe billing and paperwork issues that need to be cleared up.”

Next month, suppliers will notify the customers who have beenrandomly assigned to them. People can switch once for free, but AGLwill charge $7.50 for any subsequent changes. The utility isscheduled to exit the merchant function Oct. 1.

John Norris

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