Georgia

Restructuring Overview  |  Restructuring Resources  |  Consumer Protection  |  News and Analysis

Legislation Passed
Electric N Gas Y

1997, SB 215; Natural Gas Competition Act

2001, SB 217

2002, HB 1568, The Natural Gas Consumers Relief Act

Electric
Overview

• No legislation has been passed at either the state or federal level that opens the industry to full retail competition.

Natural Gas
Overview

• 1997-1999: Georgia's 1997 Natural Gas Competition and Deregulation Act allows choice to customers of the state's two largest investor-owned gas utilities. Gas marketers were allowed to compete for the sale of gas beginning November 1, 1998. In May 1999, "random assignment" of customers began -- which meant that customers had to select a marketer; if they did not, they were assigned to a default marketer.
• 2000-2001: The shift to competition brought confusion about billing and how customers should be switched. Complaints to the PSC about natural gas service went from 208 in the first six months of 1998 to a high of 8,596 in the first six months of 2001. In response, the PSC strengthened existing rules against slamming, adding record keeping and sign-up verification requirements and new specifics about confirmation of switched accounts. Because of over billing caused when AGL charged customers for gas on the basis of estimated wholesale costs during the transition to a deregulated market, the PSC approved procedures for AGL to refund an estimated $34 million.
• After a request by the Georgia Consumer's Utility Counsel Division that gas marketers be required to disclose their average prices and allow consumers to make "apples to apples" price comparison, the PSC began listing the prices, service and other changes of gas suppliers on its web site. That list is updated monthly.
• 2001-2002: About 64,000 customers remained disconnected as the winter of 2001-02 began. In response to the continuing problems with gas deregulation, the 2002 legislature passed the Natural Gas Consumers Relief Act, establishing a regulated natural gas provider for low-income consumers and those with payment problems.
• The Natural Gas Consumers Relief Act allows the PSC to consider emergency natural gas price caps in case competition in the state's deregulated gas market fails to keep prices in check. The 2002 law also allows electric cooperatives to form gas-marketing affiliates that are financially independent. The intent is to bring in more competitors in a market dominated by four suppliers.
• September 2002. The Commission began deliberations on a price cap, which can be implemented if it is determined that prices are "not constrained by market forces and are significantly higher than such prices would be if they were constrained by market forces."
• September 2002. A group of large industrial gas consumers filed suit, asking that the natural gas provider program be declared "null and void."
• October 2002: In response to the industry lawsuit, the Georgia PSC agreed to delay the surcharge until September 2003, when the actual cost of the program will be determined.

Choice Status

• Of Georgia’s 1,708,671 residential natural gas customers, 1,376,511 have access to competitive suppliers; all of these customers are on AGL's distribution system. The 70,000 residential customers served by United Cities Gas and the 262,160 served by municipal systems do not have access to competitive suppliers.

Suppliers
http://www.psc.state.ga.us/gas/marketers.htm

State Restructuring Resources

Utility Regulatory Commission
Georgia Public Service Commission
1-800-282-5813
http://www.psc.state.ga.us

Consumer advocate
PSC Office of Consumer Affairs
1-800-282-5813
Consumers Utility Counsel
www2.state.ga.us/GaOCA/cuc.htm

Consumer Protection

Disconnection policy

• A utility cannot discontinue gas or electric service to a residential customer between November 15 and March 15 if the forecasted local low temperature is 32°F for a 24-hour period beginning at 8:00 a.m. on the date of the proposed disconnection.
• Service cannot be disconnected for nonpayment of a bill to a residential customer who has a serious illness that would be aggravated by disconnection, provided that the customer notifies the company of this condition in writing and furnishes written statement by a physician, county board of health, hospital or clinic identifying the illness, its expected duration and certifying that the illness would be aggravated by disconnection.
• Utility service cannot be disconnected unless the utility has delivered written notice of the proposed disconnection at least five days prior to the date of disconnection.
• After all remedial measures with the utility have failed, customers can request that the Georgia Public Service Commission investigate any dispute before service is terminated.

Deposits/fees

• Gas marketers cannot require a cash deposit to establish or re-establish credit more than two-and-one-half twelfths of the estimated charge for the service for the ensuing twelve months; and, in the case of seasonal service, in excess of one-half of the estimated charge for the service for the season involved. Customers’ deposits must be held in trust in the escrow account, and marketers must pay interest on deposits for gas service held six months or longer at least equal to the interest rate paid by the financial institution where the escrow account is located.
• Upon discontinuance of service, each marketer must promptly refund customers' deposits plus accrued interest on the balance, if any, in excess of the unpaid bills for service.

Right to cancel

• Customers must be allowed to cancel their contracts without penalty within 48 hours of signing. Customers must be given the right to cancel their contracts if they relocate out of their delivery group.
• Customers have the right to one free annual switch.

Billing and collections

• Bills and contracts must be written in clear and plain language. Bills must contain sufficient information to allow customers to verify the accuracy of their bills. The pricing structure must be clearly explained, including any late fees or interest charges. The contract term must be specified along with any termination rights. The bill must include an emergency telephone number. The distribution company’s active customer account number must be placed on each bill.

Supplier licensing

• 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.
• Applicants must agree to comply with federal telemarketing rules and Georgia consumer protection laws.

Slamming

• Gas marketers cannot trade customers except when the following conditions are met: 30 days in advance of trading a customer, the marketer must provide to each customer it trades written notice stating the date that the customer will be traded to a different marketer; the name of the marketer to which the customer will be traded; that the customer has the right to select the marketer of their choice without charge prior to the switch date; and the rates, terms and conditions of service which the new marketer will be offering to them.

Telemarketing

• Telemarketers must identify themselves by name; identify the purpose of the call; identify the business on whose behalf they are calling; make every effort not to call a customer who asks not to be called again; identify the telephone number at which the person, company or organization making the call may be reached; and not call before 8 a.m. or after 9 p.m.

Dispute resolution

• Customers should take any problems or complaints directly to the utility that provides the service. They may submit complaints by telephone, letter, or in person. No attorney is required.
• If customers do not hear from the utility within a reasonable time, or if they are not satisfied with the utility's action, they may contact the Consumer Affairs Office of the Georgia Public Service Commission.
• The PSC can help customers with the following types of problems: improper termination of service; charges on the utility bill that customers believe are incorrect or unauthorized; customer deposits for utility services; poor quality of service; and problems with delayed connection of services.
• All gas marketers must notify their customers of their respective complaint procedures at least once during each quarter of the calendar year. This description shall include, at a minimum, the names, business addresses, telephone and fax numbers of personnel to contact with customer complaints, as well as the telephone number for the Consumer Affairs Division of the Commission.