Following a plea by the Georgia governor to help the thousands of state consumers whose natural gas remains cut off for not paying bills, two marketers and a Georgia utility have stepped forward to fulfill the role of provider of last resort (POLR). Gov. Roy Barnes earlier this month asked the state’s Consumers Utility Counsel (CUC) to petition the Public Service Commission (PSC) because nearly 50,000 customers remain without gas after being unable to pay last winter’s unusually high bills (see Daily GPI, Nov. 12).

On Thursday, Georgia Natural Gas Services and Scana Energy, both marketers, and Atlanta Gas Light (AGL) stepped forward to become the POLR. The three companies said they would file by Monday to outline a possible POLR program, but the big issue of who will pay for the natural gas still is not solved. PSC has scheduled a workshop for Tuesday (Nov. 20) to work on these issues.

CUC told the PSC that it would support a program to not forgive consumer debts and to continue with penalties for non-payment. However, payment would be required from consumer only after the heating season had ended. CUC’s Kristy Holley said that the cost-recovery mechanism would be derived from a collaborative effort among all of the stakeholders involved.

Suggestions for cost recovery include a universal service fund, with ratepayers absorbing the shortfall. Another idea would include a special appropriation from the Georgia Legislature. PSC Chairman Lauren “Bubba” McDonald said that the commission did not want to put the costs of non-payment on the backs of those “already struggling to pay,” but said a “roadmap” would be needed to resolve the issues involved.

According to AGL, once a POLR program is implemented, the distributor could be ready within two weeks. However, Atlanta Gas said it would require the utility’s workforce to refocus its efforts, particularly in customer service. A distributor might also have to hire a billing services contractor. However, the idea of AGL being selected as the state’s POLR is not welcomed by all of the commission.

McDonald said in a Nov. 14 letter to AGL Resources President Paula Rosput that he was “deeply disturbed” that AGL would suggest to the commission that it would be the right POLR with the issue coming up as part of its pending earnings review. “I find this action most inappropriate,” McDonald wrote in the letter, and noted that AGL was a “strong” advocate of the state’s deregulation program. AGL’s support of fixed-variable pricing had created higher consumer costs, said McDonald and “even drove many consumers out of the market.”

However, AGL said it did not expect its recent statements to compromise its earnings review, but meant to convey to the PSC that an effective POLR program and earnings review at the same time would be a difficult task.

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