Georgia Natural Gas
Georgia's natural gas utilities provide about 43% of the energy used in our industries. Supplied by 4 interstate pipelines, natural gas is available in both firm and interruptible quantities to more than 80 municipal gas systems in the state. Throughout the state, 84 municipal gas systems provide natural gas to their residents. A unique aspect of Georgia's natural gas industry is that prices for municipal gas service are not subject to PSC regulation. Reasons for this are described below. Liquefied natural gas (LNG) storage facilities are used to handle peak loads.
Natural Gas Deregulation
In 1997, the General Assembly adopted a new regulatory model for natural gas distribution companies in which competitive marketers have an opportunity to provide natural gas services to Georgia consumers. The General Assembly found market-based competition as the best mechanism for selecting and providing natural gas services at the most efficient price.
The 'Natural Gas Competition and Deregulation Act' was enacted in 1997. The purpose of the Act is to:
- promote competition
- protect the consumer during and after the transition to competition
- maintain and encourage safe and reliable service
- deregulate those components of the industry subject to actual competition
- continue to regulate those services subject to monopoly power
- promote an orderly and expeditious transition of the industry toward fully developed competition
- provide for rate-making methods which include the use of straight fixed variable rate design, the recovery of certain stranded costs and the use of alternative forms of rate regulation
- allow gas companies the opportunity to compete effectively in a competitive marketplace. O.C.G.A. ยง 46-4-.151(b)(1)-(8).
The Act was amended in 1999 relating to the topic of customer assignment, and again in 2001, addressing issues of pricing, billing, meter reading and some other consumer concerns. In 2002, the General Assembly passed the Consumers' Relief Act to enact a Consumer Bill of Rights and to establish a regulated provider for low-income and high risk customers. This Act increased consumer protection.
Soon after the passage of the 'Natural Gas Competition and Deregulation Act', the Atlanta Gas Light Company (AGLC) elected to open its territory to competition. By mid-1998, the Public Service Commission concluded its review of AGLC's rates and notice of election. In 1998, the PSC approved a new rate schedule and laid out additional conditions for the transition to competition, as required by the Act.
At that time, Atlanta Gas Light Company became a pipes-only gas company. Ten certified natural gas marketers now serve customers on AGLC's system. The prices charged by marketers are market-based, but rates for AGLC's distribution services are still regulated by the PSC.
Atmos Energy Corporation is Georgia's only local distribution company, as they have not opened their market to competition. Therefore, they remain fully regulated by the PSC.
Information for those seeking "Marketer Certification':
To obtain a certificate of authority, an applicant must demonstrate to the Commission's satisfaction that it possesses adequate financial and technical capability to sell or offer to sell natural gas within the state. 'Rules Regarding Marketer Certification' contains the determining criteria for issuing of a certificate of authority. Nineteen companies filed applications for 'Marketers' Certificates' in late-1998. Others have since applied and been granted certificates.
Depending upon their location, natural gas customers in Georgia can purchase gas from one of three types of providers:
- an investor-owned local distribution company.
- a natural gas marketer.
- a municipal gas system.
Sources and Related Sites
Atlanta Gas Light
Georgia Natural Gas Competition and Deregulation Act