Atlanta Gas Light Inc.’s (AGL) proposal to establish over the next five years a network of compressed natural gas (CNG) fueling stations was approved by the Georgia Public Service Commission (PSC) in Atlanta Tuesday.

The PSC’s 4-1 vote clears the way for the utility to invest $11.7 million to stimulate private investment in the construction of as many as 10 stations, depending on the size of the station and level of investment. Private retailers would be the owner/operators of the CNG stations. AGL’s proposal would have required those retailers to invest at least 50% of station costs. The PSC removed that stipulation, but amended the resolution to require retailers to pay for much of the equipment at their stations, including underground piping needed to connect to AGL.

Last week PSC staff recommended that only commercial vehicle fleets be permitted to fill up at the CNG stations. The PSC turned away that recommendation, voting instead to allow access to both commercial fleets and individually owned CNG vehicles.

Natural gas would be purchased by retailers from state-certificated marketers and resold as CNG. Initial station locations will be largely determined based on proximity to commercial fleet customers who contract for service. After five years, AGL would end its funding of the stations.

Following months of market studies, a series of public hearings in late 2010 and early 2011 to review plans and a Georgia General Assembly vote in March authorizing the use of a statewide fund supported by an industrial utility customers’ surcharge, AGL in May filed its plan with the PSC (see Daily GPI, May 17). AGL envisions a network throughout the greater Atlanta area and along major transportation corridors in the state.

Capital for the buildout program would come from Georgia’s Universal Service Fund (USF). AGL regularly taps the USF to help pay for line extensions to serve new customers and regions in the state.

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