Friday represented the eye of the storm for Georgia’s gas industry,as Atlanta Gas Light (AGL), the state’s largest distributor, andPeachtree Natural Gas, the bankrupt supplier to 177,000 gas customers,brokered an interim solution to their problems at a federal bankruptcycourt hearing. The hearing was a result of an earlier AGL filing withthe court, seeking to distribute Peachtree’s customers to other, “morecreditworthy” suppliers (see Daily GPI, Oct29).

Under the terms of the settlement, Peachtree will pay AGL andits other creditors enough money to ensure service through Nov. 4,at which time the court will reconvene to assess Peachtree’sfuture.

“There was a huge turn-out for the hearing, with many peopleexpecting a ruling on AGL’s request for a random assignment ofPeachtree’s customers,” said Bobby Baker, a commissioner at theGeorgia Public Service Commission (GPSC). “Although that didn’thappen, [Hon. Robert Brizendine, the bankruptcy court judge] did agood job in getting all the information presented. An interimfinancial plan was devised that will satisfy all of Peachtreecreditors through Nov. 4. In the meantime, Peachtree, AGL and allthe other interested parties will work on a long-term solution.”

All payments are due by noon today. Through the solution, AGLwill be paid $500,000, and gain permission to draw down the $11million surety bond Peachtree had posted. “We are happy with thetemporary solution,” Millicent Hunter, an AGL spokeswoman said.”All interested parties are meeting in Birmingham, AL, on Tuesdaywhere we will assess Peachtree’s viability as a marketer and tryand hammer out a long-term solution. If we can, then the solutionwill be presented when the court reconvenes. If no solutionpresents itself at Tuesday’s meeting, then we’ll ask the court toallow the GPSC to re-assign Peachtree’s customers.”

The court, AGL and the GPSC have all been assured that Peachtreecan still reliably provide gas to its customers until Nov. 4.

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