07 LC
25 4859ERS
The
House Committee on Agriculture and Consumer Affairs offers the following
substitute to HB 522:
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Title 46 of the Official Code of Georgia Annotated, relating to public
utilities and public transportation, so as to provide for discovery in cases
involving an application of a gas company to establish a capacity supply plan;
to define certain terms; to provide certain requirements for interstate capacity
assets which are not retained; to change the Public Service Commission´s
review of the assignment of interstate capacity assets from annual to periodic;
to provide that a marketer may opt out of a capacity supply plan under certain
circumstances; to provide requirements for assignments of interstate assets; to
provide that orders concerning utilization or monetization of excess interstate
capacity assets must provide for fair allocation of the costs; to provide that
an electing distribution company must obtain the approval of the commission,
after a public hearing, of procedures relating to how it will comply with the
required standards; to provide for related matters; to repeal conflicting laws;
and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Title
46 of the Official Code of Georgia Annotated, relating to public utilities and
public transportation, is amended by revising subsection (a) of Code Section
46-2-57, relating to obtaining of discovery by employees and agents of the
Public Service Commission and the discovery rights of intervenors, as
follows:
"(a)
In any case pending before it, the commission, in addition to its now existing
authority to do so, is authorized to issue an order permitting its employees and
agents to take depositions and otherwise obtain discovery of any matter, not
privileged, which is relevant to the subject matter involved in the
investigation, proceeding, or petition before the commission, in the same manner
prescribed in Chapter 11 of Title 9 for discovery in civil actions. In any case
involving an application of a gas company to establish just and reasonable rates
or a capacity
supply plan pursuant to Code Section
46-2-23.1 or
Code
Sections 46-4-154
through
46-4-164, intervenors who are granted
party status pursuant to Code Section 46-2-59, as well as the gas company
subject to the particular proceeding, shall have all discovery rights available
under Chapter 11 of Title 9."
SECTION
2.
Said
title is further amended by revising subsection (e) of Code Section 46-4-155,
relating to interstate capacity assets, as follows:
"(e)(1)
As used in this subsection, the
term:
(A)
'Interstate
'interstate
capacity assets' means interstate transportation and out-of-state gas storage
capacity.
(B)
'Assignment' means the transfer of all contractual rights and obligations to an
assignee with the assignee receiving the right to act as the shipper under
contract.
(2)
If, pursuant to the provisions of this article, the rates for commodity sales
service of an electing distribution company within a delivery group or groups
become no longer subject to the approval of the commission nor to the provisions
of Code Section 46-2-26.5, the electing distribution company nevertheless shall
continue to be responsible for acquiring and contracting for the interstate
capacity assets necessary for gas to be made available on its system, whether
directly or by assignment to marketers, for firm distribution service to retail
customers within such delivery group or groups unless determined otherwise by
the commission in accordance with this subsection.
(3)
At least every third year following the date when the rates for commodity sales
service within a delivery group or groups become no longer subject to commission
approval nor to the provisions of Code Section 46-2-26.5, the electing
distribution company shall file, on or before August 1 of such year, a capacity
supply plan which designates the array of available interstate capacity assets
selected by the electing distribution company for the purpose of making gas
available on its system for firm distribution service to retail customers in
such delivery group or groups.
(4)
Not less than ten days after any such filing by an electing distribution
company, the commission shall conduct a public hearing on the filing. The
electing distribution company´s testimony shall be under oath and shall,
with any corrections thereto, constitute the electing distribution
company´s affirmative case. At any hearing conducted pursuant to this
subsection, the burden of proof to show that the proposed capacity supply plan
is appropriate shall be upon the electing distribution company.
(5)
Following such a hearing, the commission shall issue an order approving the
capacity supply plan filed by the electing distribution company or adopting a
capacity supply plan for the electing distribution company that the commission
deems appropriate. Should the commission fail or refuse to issue an order by
the ninetieth day after the electing distribution company´s filing which
either approves the capacity supply plan filed by the electing distribution
company or adopts a different capacity supply plan for the electing distribution
company, the capacity supply plan proposed by the electing distribution company
shall thereupon be deemed approved by operation of law.
(6)
Any capacity supply plan approved or adopted by the commission
shall:
(A)
Specify the range of the requirements to be supplied by interstate capacity
assets;
(B)
Describe the array of interstate capacity assets selected by the electing
distribution company to meet such requirements;
(C)
Describe the criteria of the electing distribution company for entering into
contracts under such array of interstate capacity assets from time to time to
meet such requirements; provided, however, that a capacity supply plan approved
or adopted by the commission shall not prescribe the individual contracts to be
executed by the electing distribution company in order to implement such plan;
and
(D)
Specify the portion of the interstate capacity assets which must be retained and
utilized by the electing distribution company in order to manage and operate its
system. Any
interstate capacity assets which are not retained must be either allocated and
released to the marketers under the provisions of the electing distribution
company´s tariff with the electing distribution company converting any
assets not currently releasable to interstate service as defined in 18 C.F.R.
Part 284 so that they can be allocated and released or assigned to the marketers
under a plan of assignment adopted pursuant to paragraph (13) of this
subsection.
(7)
Once the
commission has approved or adopted a capacity supply plan, a marketer may choose
to opt out of any part of the plan upon a showing before the commission that the
marketer has adequate capacity and supply to serve its customers. Only
those
When
interstate capacity assets that are
contained
in a capacity supply plan approved or adopted by the commission
are
selected by a
marketer shall be allocated by the
electing distribution company
to
a
to
such marketer pursuant to the provisions
of this
article,
all of
and
only the costs of the interstate capacity
assets thus
allocated
selected
shall be borne by such
marketer
except for those direct or indirect costs attributable to utilization or
monetization authorized under paragraph (15) of this
subsection.
(8)
The provisions of law relating to parties, intervention, and discovery in
proceedings before the commission shall apply with respect to proceedings under
this subsection.
(9)
All commission orders issued pursuant to this subsection shall contain the
commission´s findings of fact and conclusions of law upon which the
commission´s action is based. Any such order shall be deemed a final order
subject to judicial review under Chapter 13 of Title 50, the 'Georgia
Administrative Procedure Act.'
(10)
Prior to the approval or adoption of a capacity supply plan pursuant to this
subsection, the interstate capacity assets of the electing distribution company
in the most current gas supply plan of such company approved or adopted by the
commission pursuant to the provisions of Code Section 46-2-26.5 shall be treated
as a capacity supply plan that is approved or adopted by the commission for
purposes of this subsection.
(11)
After a capacity supply plan has become effective pursuant to provisions of this
subsection as a result of a proceeding before the commission, the commission
shall retain jurisdiction of the proceeding for the purposes set forth in this
subsection. Upon application of the affected electing distribution company or
the consumers´ utility counsel division of the Governor´s Office of
Consumer Affairs or upon its own initiative, the commission may, after affording
due notice and opportunity for hearing to the affected electing distribution
company and the intervenors in the proceeding, amend the capacity supply plan of
the affected electing distribution company. Any such amendment shall not
adversely affect rights under any contract entered into pursuant to such plan
without the consent of the parties to such contracts. If an amendment
proceeding is initiated by the affected electing distribution company and the
commission fails or refuses to issue an order by the ninetieth day after the
electing distribution company´s filing, the amended capacity supply plan
proposed by the electing distribution company shall thereupon be deemed approved
by operation of law.
(12)
After an electing distribution company has no obligation to provide commodity
sales service to retail customers pursuant to the provisions of Code Section
46-4-156 and upon the petition of any interested person and after notice and
opportunity for hearing afforded to the electing distribution company, all
parties to the most current proceeding establishing a capacity supply plan for
such electing distribution company, the consumers´ utility counsel division
of the Governor´s Office of Consumer Affairs, all marketers who have been
issued a certificate of authority pursuant to Code Section 46-4-153, and all
owners or operators of interstate gas pipelines that are a part of said capacity
supply plan, the commission may issue an order eliminating the responsibility of
the electing distribution company for acquiring and contracting for interstate
capacity assets necessary for gas to be made available on its system as well as
the obligation of such electing distribution company to file any further
capacity supply plans with the commission pursuant to the provisions of this
subsection, if the commission determines that:
(A)
Upon the
assignment of any interstate assets currently held by the electing distribution
company to the marketers, the marketers
Marketers
can and will secure adequate and reliable interstate capacity assets necessary
to make gas available on the system of the electing distribution company for
service to firm retail customers;
(B)
Adequate, reliable, and economical interstate capacity assets will not be
diverted from use for service to retail customers in Georgia;
(C)
There is a competitive, highly flexible, and reasonably accessible market for
interstate capacity assets for service to retail customers in
Georgia;
(D)
Elimination of such responsibility on the part of the electing distribution
company would not adversely affect competition for natural gas service to retail
customers in Georgia; and
(E)
Elimination of such responsibility on the part of the electing distribution
company is otherwise in the public interest.
If
the commission eliminates the responsibility of an electing distribution company
for acquiring and contracting for interstate capacity assets and filing further
capacity supply plans in accordance with this subsection, the commission shall
annually
periodically
review the assignment of interstate capacity assets.
(13)
Notwithstanding any other provisions in this Code section to the contrary,
no later
than July 1, 2003, the commission
shall
may,
after notice afforded to the electing distribution company, the consumers´
utility counsel division of the Governor´s Office of Consumer Affairs, all
marketers who have been issued a certificate of authority in accordance with
Code Section 46-4-153, and all owners or operators of interstate gas pipelines
that are a part of said capacity supply plan, hold a hearing regarding a plan
for assignment of interstate assets. After such hearing, the commission may
adopt a plan for assignment of interstate capacity assets held by the electing
distribution company, except for those interstate capacity assets reasonably
required for balancing. If adopted, the plan shall provide for interstate
capacity assets to be assigned to certificated marketers who desire assignment
and who are qualified technically and financially to manage interstate capacity
assets. Marketers who accept assignment of interstate capacity assets shall be
required by the commission to use such assets primarily to serve retail
customers in Georgia and shall be permitted to use such assets outside Georgia
so long as the reliability of the system is not compromised. Thereafter, the
commission shall
annually
periodically
review the assignment of interstate capacity assets.
(14)
Any order eliminating the responsibility of the electing distribution company
for acquiring and contracting for interstate capacity assets pursuant to
paragraph (12) of this subsection and any plan for assignment of interstate
capacity assets pursuant to paragraph (13) of this subsection shall, at a
minimum, ensure that:
(A)
Shifts in market share are reflected in an orderly reassignment of interstate
capacity assets;
(B)
Marketers
accepting such
assignment hold sufficient interstate
capacity assets to meet the needs of retail customers;
(C)
Before any such assignment is authorized, the assignee demonstrates to the
commission that such assignment will result in financial benefits to firm retail
customers;
(D)
Before any marketer discontinues service in the Georgia market, it assigns its
contractual rights for interstate capacity assets used to serve Georgia retail
customers in a manner designated by the commission;
(E)
In the event that the commission imposes temporary directives in accordance with
Code Section 46-4-157, interstate capacity assets assigned to marketers are
subject to reassignment by the commission to protect the interests of retail
customers; and
(F)
Any other requirement that the commission finds to be in the public interest is
imposed upon assignees as a condition of the assignment of interstate capacity
assets.
(15)
After notice and an opportunity for hearing, the commission may authorize,
subject to reasonable terms and conditions, an electing distribution company or
its designee to utilize or monetize excess interstate capacity assets available
to the electing distribution company.
Notwithstanding
paragraph (7) of this subsection, any order providing for such utilization or
monetization shall provide for a fair allocation of the costs of the interstate
capacity assets between the electing distribution company and marketers, so that
the marketers shall not subsidize directly or indirectly the utilization or
monetization of the capacity.
(16)
All marketers holding certificates of authority shall have all discovery rights
available under Chapter 11 of Title 9 in any commission proceedings involving
the electing distribution company. These rights may be enforced pursuant to
Code Section 46-2-57. The commission shall also have the right, on its own
motion or on the motion of any party entitled to discovery, to enter and enforce
such orders regarding discovery as the commission may deem appropriate without
the necessity of filing any petitions in the Superior Court of Fulton County or
any other court of
record."
SECTION
3.
Said
title is further amended by revising paragraph (13) of subsection (b) of Code
Section 46-4-159, relating to standards of conduct for electing distribution
companies and response to complaints, as follows:
"(13)
An electing distribution company must
file
with
obtain the
approval of the
commission,
after public hearing, of procedures that
will enable marketers and the commission to determine how the electing
distribution company is complying with the standards set forth in this Code
section; and"
SECTION
4.
All
laws and parts of laws in conflict with this Act are repealed.