Legislation	Clerk's Office	Members	Committees	Meetings	Home	Senate

HB 822 - Nat gas service; mkt conditions; PSC initiate cert proceedings

Skipper, Jimmy (137th)	Hudson, Newt (156th)

Status Summary	HC:	Ind	SC:	F&PU	FR:	03/01/99	LA:	04/08/99	Signed by Governor

First Reader Summary

A BILL 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 authorize the Public Service Commission to initiate a proceeding for determining that adequate market conditions exist within a delivery group; to provide for the criteria to be used in making determination and conforming changes relating to stays of the process of customer assignment; and for other purposes.

Code Sections - 46-4-156

HB 822                                             LC 27 0896 
 
 
 
 
 
 
                        A BILL TO BE ENTITLED 
                               AN ACT 
 
 
  1- 1  To amend Article 5 of Chapter 4 of Title 46 of the Official 
  1- 2  Code of Georgia Annotated, the "Natural Gas Competition and 
  1- 3  Deregulation Act," so as to authorize the Public Service 
  1- 4  Commission to initiate a proceeding for determining that 
  1- 5  adequate market conditions exist within a delivery group; to 
  1- 6  provide for the criteria to be used in making such 
  1- 7  determination and conforming changes relating to stays of 
  1- 8  the process of customer assignment; to provide for the 
  1- 9  conditions under which an electing distribution company is 
  1-10  released from its obligation to provide commodity sales 
  1-11  service; to change provisions relating to the extension of 
  1-12  certain statutory deadlines and time periods; to provide for 
  1-13  related matters; to provide for an effective date; to repeal 
  1-14  conflicting laws; and for other purposes. 
 
  1-15       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: 
 
  1-16                           SECTION 1. 
 
  1-17  Article 5 of Chapter 4 of Title 46 of the Official Code of 
  1-18  Georgia Annotated, the "Natural Gas Competition and 
  1-19  Deregulation Act," is amended by striking in its entirety 
  1-20  Code Section 46-4-156, relating to customer assignment and 
  1-21  the Public Service Commission's determination of adequate 
  1-22  market conditions, and inserting in lieu thereof a new Code 
  1-23  Section 46-4-156 to read as follows: 
 
  1-24    "46-4-156. 
 
  1-25    (a) No later than December 31, 1997, the commission shall 
  1-26    promulgate regulations which prescribe a methodology for 
  1-27    the random assignment to each marketer certificated within 
  1-28    a delivery group of each firm retail customer who has not 
  1-29    contracted for distribution service from a marketer.  This 
  1-30    methodology shall further provide that the percentage of 
  1-31    such firm retail customers assigned to a given marketer 
  1-32    shall be based upon the percentage at the time of such 
  1-33    assignment of all firm retail customers within the 
  1-34    delivery group served by such marketer. 
 
 
 
                                 -1- 
 
 
 
  2- 1    (b) Any person may file a petition requesting that the 
  2- 2    commission determine, or the commission on its own motion 
  2- 3    may determine, that adequate market conditions exist for a 
  2- 4    particular delivery group.  If, after a proceeding on such 
  2- 5    petition or motion, the commission makes such a 
  2- 6    determination, the procedures that precede customer 
  2- 7    assignment shall begin.  The commission shall enter a 
  2- 8    decision as to whether adequate market conditions exist 
  2- 9    within the earlier of 120 days after the close of the 
  2-10    record in the proceeding on such petition or motion or 180 
  2-11    days from the filing of such petition or the making of 
  2-12    such motion under this subsection.  The commission shall 
  2-13    determine that adequate market conditions exist within a 
  2-14    specific delivery group as follows:  
 
  2-15      (1) If the petition is filed before September 30, 2001, 
  2-16      upon a showing that:  
 
  2-17        (A) At least five marketers, excluding any marketer 
  2-18        which is an affiliate of an electing distribution 
  2-19        company, have been granted a certificate to serve 
  2-20        within the delivery group and are actively marketing 
  2-21        within the delivery group area; and  
 
  2-22        (B) In the aggregate, no less than one-third of the 
  2-23        peak day requirements for firm distribution service is 
  2-24        served through marketers.  In determining whether such 
  2-25        percentage has been satisfied, marketers who are not 
  2-26        affiliates of the electing distribution company must 
  2-27        serve no less than 18 percent of the peak day 
  2-28        requirements for firm distribution service in the 
  2-29        delivery group; or  
 
  2-30      (2) If the petition is filed on or after September 30, 
  2-31      2001, upon a showing that adequate market conditions 
  2-32      exist based upon consideration of the following factors: 
 
  2-33      (A)(1) The number and size of alternative providers of 
  2-34      the distribution service; 
 
  2-35      (B)(2) The extent to which the distribution service is 
  2-36      available from alternative providers in the delivery 
  2-37      group; 
 
  2-38      (C)(3) The ability of alternative providers to make 
  2-39      functionally equivalent or substitute services readily 
  2-40      available at competitive prices, terms, and conditions; 
  2-41      and 
 
 
 
 
                                 -2- 
 
 
 
  3- 1      (D)(4) Other indicators of market power which may 
  3- 2      include market share, growth in market share, ease of 
  3- 3      entry, and the affiliation of providers of a 
  3- 4      distribution service. 
 
  3- 5    (c) If the commission issues an order pursuant to 
  3- 6    subsection (b) of this Code section determining that 
  3- 7    adequate market conditions exist, it shall prescribe in 
  3- 8    such order the contents of notices to be furnished 
  3- 9    pursuant to the provisions of subsection (e) of this Code 
  3-10    section.  Subject to the provisions of subsection (d) of 
  3-11    this Code section, on the one hundred twentieth day 
  3-12    following the issuance of an order for a particular 
  3-13    delivery group: 
 
  3-14      (1) The rates and terms of service of an electing 
  3-15      distribution company for interruptible distribution 
  3-16      service and balancing service shall not be subject to 
  3-17      approval by the commission, provided that all firm 
  3-18      retail customers have contracted with or have been 
  3-19      assigned to marketers as provided for in this Code 
  3-20      section; 
 
  3-21      (2) The rates and terms of service for commodity sales 
  3-22      service provided by an electing distribution company to 
  3-23      retail purchasers of firm distribution service shall not 
  3-24      be subject to approval by the commission, provided that 
  3-25      all firm retail customers have contracted with or have 
  3-26      been assigned to marketers as provided for in this Code 
  3-27      section; and 
 
  3-28      (3) Subject to subsection (d) of this Code section and 
  3-29      provided that all initial assignments of rights to 
  3-30      intrastate capacity for firm distribution service, 
  3-31      interstate pipeline, and underground storage by an 
  3-32      electing distribution company to marketers, as necessary 
  3-33      for marketers to initiate service to all firm retail 
  3-34      customers with which they have contracted or to which 
  3-35      they have been assigned as provided for in this Code 
  3-36      section, whether by allocation pursuant to a tariff 
  3-37      approved under paragraph (3) or (4) of subsection (d) of 
  3-38      Code Section 46-4-154 or by contract, are effective 
  3-39      pursuant to the terms of such tariff or contract and, 
  3-40      provided, further, that all initial assignments of 
  3-41      rights under firm wellhead gas supply contracts by an 
  3-42      electing distribution company to marketers, as necessary 
  3-43      for marketers to initiate service to all firm retail 
  3-44      customers with which they have contracted or to which 
 
 
                                 -3- 
 
 
 
  4- 1      they have been assigned as provided for in this Code 
  4- 2      section, by allocation pursuant to a tariff approved 
  4- 3      under Code Section 46-4-154 are effective pursuant to 
  4- 4      the terms of such tariff, an electing distribution 
  4- 5      company has no obligation to provide commodity sales 
  4- 6      service to retail customers. 
 
  4- 7    (d) If the one hundred twentieth day following the 
  4- 8    issuance of such order falls during a winter heating 
  4- 9    season, the provisions of subsection (c) of this Code 
  4-10    section and customer assignment shall become effective on 
  4-11    the day following the end of the winter heating season. 
 
  4-12    (e) Within 45 days following the issuance of an order 
  4-13    pursuant to subsection (b) of this Code section, and again 
  4-14    within 80 days following such an order, an electing 
  4-15    distribution company shall send a notice regarding the 
  4-16    commission's order to each of its retail customers 
  4-17    receiving firm distribution service or commodity sales 
  4-18    service within such delivery group.  Such notices shall 
  4-19    inform the retail customer in plain language that: 
 
  4-20      (1) The electing distribution company will not provide 
  4-21      firm distribution service or commodity sales service to 
  4-22      such customer, as of the date determined under 
  4-23      subsection (c) or (d) of this Code section; 
 
  4-24      (2) Such customer may contract with a marketer 
  4-25      certificated under Code Section 46-4-153 to furnish such 
  4-26      services; and 
 
  4-27      (3) If the customer does not contract with a marketer 
  4-28      within 100 days from the date of such order, the 
  4-29      commission will assign, on a random basis, a marketer to 
  4-30      furnish such services to said customer.  
 
  4-31      (f)(1) If the commission issues an order pursuant to 
  4-32      subsection (b) of this Code section before September 30, 
  4-33      2001, any affected party may petition the commission to 
  4-34      stay the process of customer assignment.  
 
  4-35      (2) Any such petition shall be filed with the commission 
  4-36      no earlier than 80 days from the date of such order and 
  4-37      no later than 105 days from the date of such order.  
 
  4-38      (3) The commission shall hold an expedited hearing 
  4-39      within 14 days of the filing of the petition.  Within 
  4-40      three days of the filing of said petition, the 
  4-41      commission shall cause notice to be given of said 
  4-42      hearing to the affected electing distribution company, 
 
 
                                 -4- 
 
 
 
  5- 1      all marketers certificated within the delivery group, 
  5- 2      and such other persons as the commission deems 
  5- 3      appropriate.  
 
  5- 4      (4) In any proceeding upon such a petition, the 
  5- 5      commission may stay the assignment process if it 
  5- 6      determines upon the basis of clear and convincing 
  5- 7      evidence introduced in support of the petition that, 
  5- 8      notwithstanding the adequacy of the showing under the 
  5- 9      provisions of subparagraphs (b)(1)(A) and (b)(1)(B) of 
  5-10      this Code section, the market will not be competitive 
  5-11      and the prices for distribution service to residential 
  5-12      customers will not be constrained by market forces and 
  5-13      will be significantly higher than such prices would be 
  5-14      if they were constrained by market forces.  
 
  5-15      (5) The commission shall render a decision in any such 
  5-16      proceeding within the earlier of ten days after the 
  5-17      close of the record in the proceeding on such petition 
  5-18      or 30 days from the filing of such petition under this 
  5-19      subsection. 
 
  5-20      (g)(f)(1) At any time that the electing distribution 
  5-21      company determines that any deadline or the expiration 
  5-22      of any time period prescribed by this article may result 
  5-23      in an adverse impact upon the overall effective 
  5-24      implementation of this article, upon the emergence of 
  5-25      effective competition, or upon the public interest, it 
  5-26      may petition the commission to extend such deadline or 
  5-27      period for a time certain. 
 
  5-28      (2) If, in response to such a petition or on its own 
  5-29      motion, the commission finds that strict enforcement of 
  5-30      any deadline or time period prescribed by this article 
  5-31      may result in an adverse impact upon the overall 
  5-32      effective implementation of this article, upon the 
  5-33      emergence of effective competition, or upon the public 
  5-34      interest, it may extend such deadline or period for any 
  5-35      period of time up to or equal to the time extension 
  5-36      requested in the petition or proposed in the motion." 
 
  5-37                           SECTION 2. 
 
  5-38  This Act shall become effective upon its approval by the 
  5-39  Governor or upon its becoming law without such approval. 
 
  5-40                           SECTION 3. 
 
  5-41  All laws and parts of laws in conflict with this Act are 
  5-42  repealed. 
 
 
                                 -5-