The Georgia Public Service Commission (PSC) issued rulesThursday to give Atlanta Gas Light (AGL) customers supplier choice.Georgia will be the first state in the nation to fully open the gasmarket to competition at the residential level.

“Competition should lead to more efficient service, more choicesand lower prices,” said PSC Chairman Bobby Baker. Under state lawpassed last year, gas sales in the AGL territory will be opened tocompetition as early as Nov. 1, 1998. Once the market is fullyderegulated, AGL will exit the merchant function and become adistribution company. Marketers will sell directly to 1.4 millioncustomers.

There were two changes in the final PSC rule from PSC staffrecommendations, said PSC spokesman Shawn Davis. Staff proposed acost of equity of 10.5%, and the commission ordered 11%. The staffposition would have created an $11.2 million revenue reduction,while the commission order results in a $7.4 million revenuereduction. The second change allows marketers to place their ownindexes on consumers’ gas meters. “They’re allowed to index themeters themselves so they can do innovative meter reading and soforth.”

The PSC indicated a preference to allow marketers to own theirown meters. “However, there’s still a question as to whether thePSC would retain jurisdiction over safety issues if an unregulatedmarketer is permitted to place their own meters on the pipesystem.” This should be ironed out by the Nov. 1 start-up date,Davis said.

Provisions of the rules address such issues as slamming,ancillary services, AGL’s electronic bulletin board and balancing.Marketers must seek authorization from consumers before receivingcustomer information from AGL. AGL must provide services such asmeter reading, billing and collection at regulated rates until afully developed market for those services exists. Marketers canalso perform the functions themselves. The AGL electronic bulletinboard must be operational for real-time testing by Aug. 1, and ifit’s not up and running by Nov. 1, AGL cannot assess penalties fordaily imbalances. Further, the PSC allowed for daily balancingrather than monthly and also allowed for daily trading ofimbalances with a 5% tolerance, plus or minus, for imbalances.

Beginning this fall, consumers can expect to be contacted by asmany as fifteen marketers offering to sell gas. The marketers mustapply for PSC certification by July 16 in order to compete in thefall. PS Energy Group Inc. became the fifth company to seekmarketer certification joining Williams Energy Services, ShellEnergy Services, PG&E, and Enron Corp.

AGL will operate its own marketer that will compete againstother marketers. A PSC hearing officer ruled Tuesday the companymay not name the affiliated marketer Atlanta Gas Light Services.The hearing officer reasoned that using the same name and logoswould “accrue an advantage” unfair to other competitors and would”mislead the public” as to whom the customer was dealing.

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