06 LC 22
5994
Senate
Bill 417
By:
Senators Thomas of the 2nd, Brown of the 26th, Fort of the 39th, Miles of the
43rd, Butler of the 55th and others
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Article 5 of Chapter 4 of Title 46 of the Official Code of Georgia
Annotated, the "Natural Gas Competition and Deregulation Act," so as to change
certain provisions relating to selection of the regulated provider of natural
gas; to revise a definition; to provide that the Public Service Commission shall
select at least two but no more than three regulated providers; to revise other
provisions to conform to this change; to delete obsolete language; to provide
for construction; to provide for an effective date; to repeal conflicting laws;
and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Article
5 of Chapter 4 of the Official Code of Georgia Annotated, the "Natural Gas
Competition and Deregulation Act," is amended in Code Section 46-4-152, relating
to definitions relative to such Act, by striking subsection (14.2) and inserting
in lieu thereof the following:
∀(14.2)
'Regulated provider of natural gas' means
the
an
entity selected by the commission to provide to consumers natural gas commodity
service and ancillary services incident thereto in accordance with Code Section
46-4-166.∀
SECTION
2.
Said
article is further amended in Code Section 46-4-161, relating to the universal
service fund, by striking subsections (a), (b), and (f) and inserting in lieu
thereof the following:
∀(a)
The commission shall create for each electing distribution company a universal
service fund for the purpose of:
(1)
Assuring that gas is available for sale by marketers to firm retail customers
within the territory certificated to each such marketer;
(2)
Enabling the electing distribution company to expand its facilities and service
in the public interest; and
(3)
Assisting low-income residential consumers in times of emergency as determined
by the commission, and consumers of the regulated
provider
providers
of natural gas in accordance with Code Section 46-4-166.
(b)
The fund shall be administered by the commission under rules to be promulgated
by the commission in accordance with the provisions of this Code section. Prior
to the beginning of each fiscal year of the electing distribution company, the
commission shall determine the amount of the fund appropriate for such fiscal
year, which amount shall not exceed $25 million for that fiscal year. In making
such determination, the commission shall consider the following:
(1)
The amount required to provide sufficient contributions in aid of construction
to permit the electing distribution company to extend and expand its facilities
from time to time as the commission deems to be in the public interest;
and
(2)
The amount required to assist low-income residential consumers in times of
emergency as determined by the commission and consumers of the regulated
provider
providers
of natural gas in accordance with Code Section
46-4-166.∀
∀(f)
Distributions to the regulated
provider
providers
shall be made in accordance with Code Section
46-4-166.∀
SECTION
3.
Said
article is further amended by striking Code Section 46-4-166, relating to
selection of a regulated provider to serve low-income residential consumers and
certain other firm natural gas consumers, and inserting in lieu thereof the
following:
∀46-4-166.
(a)
By July 1,
2002, the
The
commission shall select
a regulated
provider
at least two
but no more than three regulated providers
of natural gas to serve:
(1)
Group 1, low-income residential consumers; and
(2)
Group 2, firm natural gas consumers:
(A)
Who have been unable to obtain or maintain natural gas commodity service;
or
(B)
Whose utility payment history was cited by
the
a
regulated provider as reason for transfer from Group 1 to Group 2.
(b)
The selection shall be made through a competitive request for proposal process.
Certificated marketers shall be eligible to submit proposals. Selection
criteria for the regulated
provider
providers
shall include, but not be limited to, the following:
(1)
Financial viability, as defined in Code Section 46-4-153;
(2)
Technical expertise, as defined in Code Section 46-4-153;
(3)
The amount of the proposed deposit requirements, proposed price structure,
proposed customer charge, and cost recovery;
(4)
The terms and conditions proposed for transfers of consumers from Group 1 to
Group 2 and from Group 2 to Group 1; and
(5)
The terms and conditions proposed for termination of service for Group 1
consumers and Group 2 consumers.
(c)
If no
acceptable proposals
fewer than two
acceptable proposals are filed with the
commission to become
the
regulated
provider
providers
of natural gas, the commission shall designate the electing distribution company
or any other gas or electric utility holding a certificate of public convenience
and necessity from the commission if it consents to serve as
the
a
regulated provider of natural gas. A regulated provider who is not a
certificated marketer shall not be authorized to provide natural gas commodity
service to any consumer not included in subsection (a) of this Code
section.
(d)
The
Each
regulated provider selected by the commission shall establish two rates for
consumers served by
the
such
regulated provider of natural gas, which rates shall be approved by the
commission as a part of the selection process for the regulated
provider
providers:
(1)
The rate for a low-income residential consumer shall be based upon actual
commodity cost, a reasonable rate of return, and an equitable share of the cost
of the transportation and distribution system over which such consumer receives
distribution. Any low-income residential consumer may transfer to
the
a
regulated provider without being required to pay in full any debt to a marketer
for previous service and without termination in service due to failure to pay
such a debt.
The
Each
regulated provider shall have access to the universal service fund to recover
bad debt arising from service to low-income residential consumers in accordance
with rules and regulations promulgated by the commission and designed to
encourage efficient debt collection practices by
the
each
regulated provider. The electing distribution company shall waive any customer
charge for each low-income residential consumer whose age exceeds 65 years. A
low-income residential consumer served by
the
a
regulated provider at this rate shall be subject to transfer to Group 2 for
failure to pay distribution or commodity charges under the terms and conditions
specified in
the
a
proposal and accepted by the commission; and
(2)
The rate for Group 2 consumers shall be set to incorporate risks associated with
these customers.
The
Each
regulated provider shall be authorized to terminate service to a Group 2
consumer for failure to pay for commodity or distribution service.
The
No
regulated provider shall
not
have access to the universal service fund to recover bad debt arising from
service to such consumers. A Group 2 consumer shall be eligible to transfer to
Group 1 if such a consumer is eligible by income for Group 1 and meets criteria
specified in
the
a
proposal and accepted by the commission.
(e)
The commission is authorized to promulgate rules and regulations to implement
this Code section.
(f)
The commission shall annually review the performance of
the
each
regulated provider. The commission shall utilize the process set forth in
subsections (a) and (b) of this Code section to select
a
regulated
provider
providers
of natural gas every two years. If the commission determines, in its
discretion, that such an action is in the public interest, the commission may
extend the service of a regulated provider for a third year, or may terminate
the service of a regulated provider after one year.
(g)
The 2006 amendment of this Code section shall not be construed to abrogate or
alter the proposal accepted by the commission for a single regulated provider in
accordance with prior provisions of this Code section and set out as a consent
order in Docket No. 20069-U, which proposal is in effect on the effective date
of this Act, except to the extent required by selection of one or two additional
regulated providers in accordance with the 2006 amendment of this Code
section.∀
SECTION
4.
This
Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval.
SECTION
5.
All
laws and parts of laws in conflict with this Act are repealed.