Subject 515-7-3 MARKETERS' CERTIFICATES OF AUTHORITY
Rule 515-7-3-.01 Definitions
As used in this Utility Rule 515-7-3, the following terms shall have the following definitions:
| (a) | "Act" means the Natural Gas Competition and Deregulation Act as provided for in O.C.G.A. § 46-4-150 et seq. |
| (b) | "Affiliate" means another person which controls, is controlled by, or is under common control with such person. |
| (c) | "Ancillary service" means a service that is ancillary to the receipt or delivery of natural gas, including without limitation storage, balancing, peaking, and customer services. |
| (d) | "Applicant" means any person who has filed an application for a certificate of authority with the Georgia Public Service Commission to sell or offer to sell any commodity sales service or distribution service in intrastate commerce to retail customers who primarily receive firm service within the State of Georgia. |
| (e) | "Commission" means the Georgia Public Service Commission. |
| (f) | "Commodity sales service" means the sale of natural gas exclusive of any distribution or ancillary service. |
| (g) | "Consumer" means a retail customer of commodity sales service or of firm distribution service who uses such service or services primarily for personal, family, or household purposes. |
| (h) | "Consumer preferred method of communication" shall mean the method of written communication agreed upon by the marketer and the consumer regarding the method of notification the consumer shall receive in compliance with Commission rules. Such preferred method of communication may include but need not be limited to: first class mail, bill message, email, text or other electronic means supported by the marketer. |
| (i) | "Customer service" means a function related to serving a retail customer including without limitation billing, meter reading, turn-on service, and turn-off service. Notwithstanding any provision of law to the contrary, any person may perform one or more customer services without first becoming certificated in accordance with O.C.G.A. § 46-4-153; provided however, that such service may only be performed in compliance with all stated and federal laws pertaining to the safety of natural gas pipelines and distribution systems and any other applicable safety standards. |
| (j) | "Delivery Group" means a set of individual delivery points on one or more interstate pipeline suppliers to a gas company that may be aggregated and utilized for the distribution of gas to a particular set of retail customers. |
| (k) | "Distribution service" means the delivery of natural gas by and through the intrastate instrumentalities and facilities of a gas company or of a marketer certificated pursuant to Code Section 46-4-153, regardless of the party having title to the natural gas. |
| (l) | "Electing Distribution Company" or "EDC" means a gas company that elects to become subject to the provisions of the Act and satisfies the requirements of O.C.G.A. § 46-4-154. |
| (m) | "Electric activities" means all activities associated with the generation, transportation, marketing, and distribution of electricity. |
| (n) | "Electric Membership Corporation" or "EMC" means any person defined in paragraphs (3) or (5) of O.C.G.A § 46-3-171 or any joint venture of EMCs, their affiliates or subsidiaries. |
| (o) | "EMC gas affiliate" means a separately organized person, the majority interest of which is owned or held by or, with respect to a cooperative, managed by one or more cooperatives or electric membership corporations and which applies to the Commission for a certificate of authority pursuant to O.C.G.A § 46-4-153. |
| (p) | "Firm" means a type of distribution service that ordinarily is not subject to interruption or curtailment. |
| (q) | "Gas" means natural gas. |
| (r) | "Gas activities" means all activities associated with the transportation, marketing, and distribution of natural gas conducted by a person certificated pursuant to O.C.G.A § 46-3-153. Such terms shall not mean the production, transportation, marketing or distribution of liquefied petroleum gas. |
| (s) | "Gas company" means any person to whom a certificate of public convenience and necessity has been issued by the Commission to own, operate, acquire, or construct any intrastate pipeline or distribution system, or any extension thereof, for the sale of natural gas. |
| (t) | "Interruptible" means a type of distribution service that is subject to interruption or curtailment. |
| (u) | "Low-income residential consumer" means any person who meets the definition of a person who is qualified for the Low Income Home Energy Assistance Program, as promulgated by the Department of Human Resources, pursuant to O.C.G.A. § 46-1-5. |
| (v) | "Majority interest" means the ownership of greater than 50 percent of the partnership interests in a general or limited partnership; the membership interests of a limited liability company; or the stock in a for-profit corporation that entitles the shareholder to vote and share in common or preferred dividends. |
| (w) | "Marketer" means any person certificated by the Commission to provide commodity sales service or distribution service pursuant to O.C.G.A. § 46-4-153 or ancillary services incident thereto. |
| (x) | "Person" means any corporation, whether public or private; company; individual; firm; partnership; or association, including a cooperative or an electric membership corporation. |
| (y) | "Regulated gas service" means gas service provided by a regulated provider of natural gas. |
| (z) | "Regulated provider of natural gas" means the entity selected by the Commission to provide to consumers natural gas commodity service and ancillary services incident thereto in accordance with O.C.G.A. § 46-4-166. |
| (aa) | "Retail customer" or "retail purchaser" means a person who purchases commodity sales service or distribution service and such purchase is not for the purpose of resale. |
Rule 515-7-3-.02 Commission Authority and Scope of Provisions
| (1) | Consistent with the Official Code of
Georgia Annotated (O.C.G.A.) §§ 46-4-153 and
46-4-153.1, a person shall be
required to obtain a certificate of authority from the Georgia Public Service
Commission to sell or offer to sell natural gas in intrastate commerce to
retail customers in a particular delivery group(s) who primarily receive firm
service within the State of Georgia, as described by the regulations in this
Rule. The Commission shall have the authority to:
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| (2) | The requirements of these rules shall apply to any person who sells or offers to sell any commodity sales service or distribution service in intrastate commerce to retail customers in a particular delivery group(s) who primarily receive firm service within the State of Georgia. |
| (3) | Notwithstanding any provision of the law to the contrary, any person selected by an EDC, a certificated marketer, or a regulated provider may perform billing and meter reading services on behalf of such entity without first becoming certificated in accordance with the provisions of O.C.G.A. § 46-4-153, provided that a certificated marketer or a regulated provider also submits meter reading data so obtained to the EDC in a timely manner. |
| (4) | Except as otherwise provided in Article 5 of Chapter 4 of Title 46 of the Official Code of Georgia Annotated, as amended, the issuance of a certificate of authority to a person by the Commission does not subject that person to the jurisdiction of the Commission under Title 46, including, without limitation, the provisions of Article 2 of Chapter 2 of Title 46 of the Official Code of Georgia Annotated, as amended. |
| (5) | In the event of any conflict between the provisions of this Rule and applicable provisions of the Official Code of Georgia Annotated, including O.C.G.A. §§ 46-4-153 and 46-4-153.1 as they may be amended from time to time, the applicable provisions of the O.C.G.A. shall take precedence. Any such conflict as to one or more provisions of these rules shall not, however, void or nullify any remaining provisions thereof. |
Rule 515-7-3-.03 Application for a Certificate of Authority
| (1) | Any person seeking to sell or offer to sell natural gas on a firm basis pursuant to O.C.G.A. § 46-4-153 is required to file an application with the Commission on a form approved for a certificate of authority. No person other than a gas company or a regulated provider shall sell or offer to sell natural gas to any person who primarily receives firm service in any delivery group(s) in Georgia unless and until such time as a certificate of authority has been issued by the Commission. |
| (2) | Applications shall contain the following:
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| (3) | In addition to providing the information
set forth in its Utility Rule
515-7-3-.03(2), an
applicant that is an EMC gas affiliate shall include with its application for a
certificate of authority proposed terms and conditions to govern the
relationship between the electric membership corporation and its EMC gas
affiliate as contemplated in O.C.G.A. § 46-4-153.1. As proposed, these
terms and conditions shall be designed to prevent cross-subsidization between
the provision of electricity and the provision of natural gas services, to
encourage and promote fair competition in the overall retail natural gas
market, and to protect the privacy of both electric and natural gas consumers.
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| (4) | Any information that the applicant deems to be proprietary or confidential may be filed pursuant to Commission Rule Chapter 515-3-1-.11, Trade Secrets. |
| (5) | An applicant shall submit to the Executive Secretary of the Commission the number of copies indicated on the application form. The original, signed by the applicant, must accompany the copies. Failure to provide the appropriate number of copies or the signed original will result in the rejection and return of the application. |
| (6) | Any application that is deemed to be incomplete after it is filed with the Commission shall not be considered until such time as all of the information requested therein has been furnished. The sixty (60) day time frame during which the Commission is charged with conducting a public hearing or hearings on an application shall not commence unless and until a completed application has been submitted by the applicant. The Commission shall provide the applicant with a notification within fifteen (15) days after filing whether said application is deemed to be complete, or, if incomplete, what information is lacking. The Commission shall notify the applicant no later than fifteen (15) days following its receipt of any additional information whether such information is sufficient to regard the application as complete. If the additional information is not sufficient, the notification sent to the applicant by the Commission shall include a specific statement detailing the information that must be clarified or which otherwise does not adequately respond to the original request. |
| (7) | The Commission shall deem an application to be withdrawn if the applicant fails to furnish any information requested in a notice of incompleteness within fifteen (15) business days after the date on which the request for additional information was issued. |
| (8) | A certificate of authority may not be transferred, assigned, or leased except upon application to and approval by the Commission. |
Rule 515-7-3-.04 Certification Standards
| (1) | The Commission shall issue a certificate
of authority for a delivery group upon a showing by the applicant:
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| (2) | Until such time as a determination is made by the Commission that adequate market conditions exist within a delivery group as contemplated by O.C.G.A. § 46-4-156, a marketer must separately list on its bills to retail customers within the delivery group the charges for firm distribution service and for commodity sales. |
| (3) | The price at which a marketer sells gas shall not be regulated by the Commission. |
| (4) | A certificate of authority shall not be issued to an applicant who is unable to document that it has the ability to meet the creditworthiness standards of the interstate pipelines serving the State of Georgia and the Commission-approved creditworthiness standards of the applicable EDC. |
| (5) | The Commission may deny an application for a certificate of authority upon a showing that a marketer or anyone acting in concert with a marketer has a history of violating laws, rules, or regulations designed to protect the public. |
| (6) | Upon being issued a certificate of authority, a marketer shall abide by applicable laws under the Official Code of Georgia Annotated, all applicable rules and regulations of the Commission and findings, conclusions, terms, and conditions set forth in pertinent Commission Orders. |
| (7) | Each marketer must keep on file with the Commission's Natural Gas Staff and Consumer Affairs Staff, updated information on its regulatory contact person. The information shall contain the person's name, phone number, email address, mailing address and fax number. |
| (8) | Each marketer shall make available contemporaneously to randomly assigned customers the same options for rates, terms and conditions of service that the marketer makes available to its other similarly situated customers. |
| (9) | Each marketer shall pass through senior citizen discounts to eligible customers to the extent provided by the electing distribution company. |
| (10) | Marketers must apply to the Commission to receive authorization prior to any change in ownership, name change (including doing-business-as (d/b/a) name change), adding or dropping a delivery pool group from service, owning meters, or any other substantial change that would affect their certification. |
| (11) | A marketer may
require a deposit, not to exceed $150.00, from a consumer prior to providing
natural gas distribution service to such consumer. A marketer is not authorized
to require an increase in the deposit of a consumer if such consumer has paid
all bills from the marketer in a timely manner for a period of three months. A
marketer shall establish an escrow account at a financial institution for the
purpose of holding consumers' deposits. Consumers' deposits shall be held in
trust in the escrow account established and shall not become the property of
the marketer or be commingled with the funds of the marketer. Marketers shall
pay interest on applicants' or consumers' deposits for gas service held six (6)
months or longer at least equal to the interest rate paid by the financial
institution where the escrow account is located. Upon receipt of a consumer or
applicant deposit, the marketer shall furnish the gas consumer/applicant a
receipt showing the following information:
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| (12) | It shall be a
violation of a marketer's certificate to trade customers' accounts except when
the following conditions are met:
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| (13) | It shall be a violation of a
marketer's certificate to sell or transfer customers except when the following
conditions are met (requirements for new entrants into the market who are
purchasing/transferring existing customers from an existing marketer):
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| (14) | Each marketer shall file at
the Commission by the 5th of the current month, the marketer's standard fixed
offer for residential customers and standard variable offer for residential
customers.
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| (15) | No marketer shall be authorized to prevent a consumer from obtaining distribution and commodity sales service from another marketer or provider. A marketer may contract with a landlord for continuous natural gas service to be made available to apartments owned or managed by said landlord and to provide natural gas service to apartments where the tenant has authorized the landlord to select the tenant's marketer; provided, however, that no such continuous service agreement shall require a landlord to prevent a tenant from obtaining distribution and commodity sales service from another marketer or provider. Notwithstanding the existence of a continuous service agreement between a marketer and a landlord, neither the EDC nor the marketer may prevent a tenant from switching marketers or providers. |
Rule 515-7-3-.05 Prerequisites to the Filing of an Application; Scheduling of Hearings
| (1) | An application for a certificate of authority shall not be filed with the Commission to provide service to a delivery group(s) that is presently being served by a gas company holding a valid certificate of public convenience and necessity until such gas company has filed a notice of election pursuant to the provisions of O.C.G.A. § 46-4-154. |
| (2) | Until fifteen (15) days have expired after the effective date of rates approved by the Commission for an EDC pursuant to O.C.G.A. § 46-4-154, the Commission shall not approve or disapprove any complete application for a certificate of authority covering delivery groups certificated to such EDC which application is filed prior to such expiration date. All complete applications for certificates of authority filed prior to such expiration date shall be considered by the Commission simultaneously. |
| (3) | Within sixty (60) days following such expiration date, the Commission shall conduct a public hearing or hearings on all complete applications filed prior to said expiration date. Thereafter, within ninety (90) days following such expiration date, the Commission shall issue its order approving or disapproving each application for a certificate of authority. |
| (4) | The Commission shall conduct a public hearing on any application for a certificate of authority filed subsequent to the expiration date within sixty (60) days after the filing of such application. Within ninety (90) days after the filing of the application, the Commission shall issue its order approving or disapproving each application. |
Rule 515-7-3-.06 Complaints
| (1) | All marketers holding certificates of authority shall notify their customers by mail or by the preferred method of communication about 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, e-mail and website, telephone and facsimile numbers of personnel to contact with customer complaints, as well as the telephone number for the Consumer Affairs Division of the Commission If these individuals are located outside the State of Georgia, a toll-free telephone number must be provided. |
| (2) | The provisions of Commission Rule Chapter 515-2-1-.04(1) and (2) pertaining to complaints shall be applicable to marketers. |
| (3) | Good faith assertions that a marketer certificated under O.C.G.A. § 46-4-153 has violated the laws and rules of the Commission and/or the terms of the certificate of authority that it has been issued may be made by any person. In the event that any such allegations are made against an applicant seeking to be certificated to sell or offer to sell natural gas in a particular delivery group(s) or an allegation is made that a marketer or anyone acting in concert with the marketer has such history of violations of laws, rules, or regulations designed to protect the public; has included in its application for a certificate of authority any information that was falsified or forged; has acted unlawfully to the detriment of the public while certificated; and/or is, has been, or may be about to become involved in activities described in O.C.G.A. § 46-4-153(6), the time constraints placed upon the Commission in granting certification shall be null and void until such time as the assertions made against the applicant can be reasonably addressed. |
| (4) | Prior to a marketer contacting a gas utility for the purpose of disconnecting service for a residential customer, the marketer shall first comply with the procedural rules regarding disconnection as set forth in Chapter 515-3-3 of the Rules of the Georgia Public Service Commission. Failure to comply with the Commission's Rules for the disconnection of service of any residential customer may subject a marketer to sanctions that include, but are not limited to, the revocation of the marketer's certificate of authority. |
Rule 515-7-3-.07 Revocation, Suspension, and Modification of a Certificate of Authority; Sanctions
| (1) | Any certificate of authority issued by
the Commission is subject to revocation, suspension, or modification, where the
Commission finds after notice and hearing that:
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| (2) | The Commission, after a hearing is conducted after not less than thirty (30) day notice, shall determine whether a violation has occurred that warrants the revocation, suspension or modification of a certificate of authority. The burden of proof to show that any such action should be taken shall be placed upon the Commission. All orders issued pursuant to O.C.G.A. § 46-4-153(d) or (e) 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 O.C.G.A. Title 50, the "Georgia Administrative Procedures Act." |
| (3) | In addition to having its certificate of authority revoked, suspended, or modified, any marketer that is found after notice and hearing to have willfully violated any law administered by the Commission or any duly promulgated regulation issued there under, or which fails, neglects, or refuses to comply with any such order after notice thereof, shall be liable for a penalty not to exceed $15,000.00 for such violation and an additional penalty not to exceed $10,000.00 for each day during which said violation occurred. |
| (4) | The provisions of Article 3 of Chapter 2 of Title 46 of the Official Code of Georgia Annotated, as amended, shall apply to an investigation or hearing involving a marketer. The provisions of Article 4 and 5 of Chapter 2 of Title 46 of the Official Code of Georgia Annotated, as amended, shall also apply to a marketer. |
| (5) | The provisions of Part 2 of Article 15 of Chapter 1 of Title 10 of the Official Code of Georgia Annotated, as amended, shall apply to a marketer. |
| (6) | The Commission, after notice and hearing as contemplated in the Georgia Administrative Procedure Act, O.C.G.A. § 50-13-1, et seq., may revoke, suspend or otherwise modify a certificate of authority based upon a finding that the marketer's financial condition or gas supply no longer meets the requirements for certification. |
| (7) | The Commission may issue a certificate of authority to an applicant based upon conditions that include, but are not limited to, an applicant agreeing to provide the Commission annually with updated audited financial data within ninety (90) days of the close of its fiscal year as well as information within ten (10) business days of any event or occurrence that may materially affect its financial or operational status. The Commission shall have access to the books and records of all marketers as may be deemed necessary to ensure compliance with the Act and the Commission's rules and regulations that are issued there under. In accordance with O.C.G.A. § 46-4-153(f)on a quarterly basis, the marketers must file the following: First, a detailed monthly income statement, balance sheet, and cash flow statement information. Second, each marketer will file with the Commission the number of therms used for each customer class and the number of customers for each customer class based on the EDC's market share timeframe. The filings will be made with the Commission between 45 days and 75 days after the end of each fiscal quarter for their Georgia natural gas market. |
| (8) | All complaints to the Commission and violations relating to a marketer's conduct under its certificate of authority shall be made part of the Commission's records and shall be available for inspection by the public. |
| (9) | The Commission, at its discretion, may reinstate any certificate of authority that it previously revoked. |
Rule 515-7-3-.08 Required Disclosures
Whenever any certificated marketer, its agents, employees, or contractors make a retail natural gas offering to an individual customer, whether in response to an inquiry from that customer or as part of a marketer-initiated contact, the marketer shall be responsible for disclosing to the customer all charges that the customer may incur if the customer accepts the marketer's service as defined in Commission Utility Rule 515-7-9-.04. All such disclosures made by marketers shall provide adequate and accurate information to consumers so as to allow them to make informed choices regarding the purchase of natural gas services.