Subject 515-7-5 UNIVERSAL SERVICE FUND
As used in this Utility Rule 515-7-5, the following terms and
phrases shall have the following definitions:
| (a) |
"Act" means the Natural Gas Competition
and Deregulation Act as provided for in O.C.G.A. § 46-4-150et
seq. |
| (b) |
"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. |
| (c) |
"Commission"
means the Georgia Public Service Commission. |
| (d) |
"Commodity sales service" means the sale
of natural gas exclusive of any distribution or ancillary service. |
| (e) |
"Customer service" means a function
related to serving a retail customer including, without limitation, billing,
meter reading, turnon service, and turn-off service. |
| (f) |
"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 O.C.G.A. § 46-4-153,
regardless of the party having title to the natural gas. |
| (g) |
"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. |
| (h) |
"Electing distribution company" 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. |
| (i) |
"Emergency" means imminent threats to
public health, safety or welfare. |
| (j) |
"Expand" means to increase facilities in
size, quantity, or scope. This term does not include any activities relating to
the maintenance, repair, and/or replacement of facilities already in
existence. |
| (k) |
"Extend" means to
enlarge the area or scope of facilities. This term does not include any
activities relating to the maintenance, repair, and/or replacement of
facilities already in existence. |
| (l) |
"Facilities" mean all property, means,
and instrumentalities owned, operated, leased, licensed, used, furnished, or
supplied for, by, or in connection with the delivery of natural gas service to
the public. |
| (m) |
"Firm" means a type
of distribution service which ordinarily is not subject to interruption or
curtailment. |
| (n) |
"Gas" means
natural gas. |
| (o) |
"Gas company"
means any person to whom a certificate of public convenience and necessity has
been issued by the Commission to construct or operate any pipeline or
distribution system, or any extension thereof, for the sale of natural
gas. |
| (p) |
"Group 1 Consumers" means
low-income residential consumers served by a regulated provider of natural
gas. |
| (q) |
"Group 2 Consumers" means
firm natural gas consumers served by a regulated provider of natural gas who
had been unable to obtain or maintain natural gas commodity service or whose
utility payment history was cited by the regulated provider of natural gas as
reason for transfer from Group 1 to Group 2. |
| (r) |
"Interruptible" means a type of
distribution service which is subject to interruption or curtailment. |
| (s) |
"Low-income residential customer" 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 Resourses, pursuant to Code Section
46-1-5. |
| (t) |
"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. |
| (u) |
"Person" means any corporation, whether
public or private; company; individual; firm; partnership; or
association. |
| (v) |
"Regulated gas
service" means gas service provided by a regulated provider of natural
gas. |
| (w) |
"Regulated provider of
natural gas" means the entity selected by the Commission to provide to
consumers natural gas commodity service and ancillary services thereto in
accordance with Code Section
46-4-166. |
| (x) |
"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. |
| (y) |
"Service" means the act or means of
supplying natural gas to the public. |
Consistent with O.C.G.A. § 46-4-161,
the Commission is authorized to create and establish regulations to administer
a universal service fund for each gas company that elects to become subject to
the provisions of Article 5 of Chapter 4 of Title 46 of the Official Code of
Georgia Annotated, and which satisfies the requirements of O.C.G.A. § 46-4-154.
With respect to each such gas company, which is also termed an "electing
distribution company" under the Natural Gas Competition and Deregulation Act,
the Commission is charged with making a determination prior to the commencement
of the electing distribution company's fiscal year as to the amount of funding
that is appropriate for that year.
A universal service fund shall be created for each electing
distribution company for the purposes set forth in O.C.G.A. § 46-4-161(a).
These purposes include assuring that gas is available for sale by marketers to
firm retail customers within a territory certificated to each such marketer;
enabling the electing distribution company to extend and expand its facilities
and service in the public interest; assisting low-income residential consumers
in times of emergency as determined by the Commission; and consumers of the
regulated provider of natural gas in accordance with Code Section
46-4-166.
| (1) |
A universal service fund for each
electing distribution company shall be created by the Georgia Public Service
Commission, which shall designate for this purpose any state or federally
chartered bank, trust company, or savings and loan association located in the
state of Georgia. |
| (2) |
All monies
placed in a universal service fund created for an electing distribution company
shall be deposited in a separate interest bearing escrow account kept at the
Commission designated bank. |
| (1) |
The universal
service fund shall be administered by the Georgia Public Service Commission and
maintained by the electing distribution company for which it was
created. |
| (2) |
An electing
distribution company shall enter into a written escrow agreement with the bank
in which the Commission has created its universal service fund. The Commission
shall be a party to this agreement and possess the exclusive authority to
direct through a written instrument that a disbursement be made from an
electing distribution company's universal service fund.
| (a) |
The written escrow agreement entered into
shall expressly designate the name, business address and telephone number of
the following parties: an escrow agent, the agent of the electing distribution
company who will maintain the fund, and a representative of the Commission.
Under no circumstance shall the identities of the designated parties be changed
without pre-approval being obtained from the Commission. |
| (b) |
All notices to any party to the agreement
shall be reduced to writing and directed to the parties at their respective
addresses. |
| (c) |
In performing any of
its duties under the agreement, the escrow agent shall incur liability for any
damages, losses or expenses incurred due to conduct that is the product of
nonfeasance or malfeasance, willful behavior, a breach of trust or gross
incompetence or negligence. |
| (d) |
The
escrow agent shall ensure that the funds held in the escrow account be invested
to earn interest. Universal Service Fund investments shall be diversified to
minimize risk or loss pursuant to guidelines contained in the escrow
agreement. |
| (e) |
In the event that
any term and/or provision of the escrow agreement shall be found to be
unenforceable or invalid under state or federal law, said unenforceability
shall not invalidate or nullify the entire agreement; rather, the agreement
shall be construed as if it did not contain the portion of the agreement found
to be invalid or nullified and the rights of the parties shall be construed
accordingly. |
|
| (3) |
The
escrow agent shall provide to the Commission monthly bank statements. The
Commission shall have the right to audit the escrow account when, in its
discretion, such action is warranted. The electing distribution company shall
forward reconciled copies of the bank statements to the Commission at least
quarterly. |
| (4) |
Other than for costs
and fees imposed by the financial institution where the escrow account is held,
neither the Georgia Public Service Commission nor an electing distribution
company shall be entitled to receive disbursements from a universal service
fund for their respective roles in administering and maintaining the
fund. |
| (5) |
All interest earned on
monies placed in a universal service fund created for an electing distribution
company shall accrue to the benefit of the respective fund. |
| (6) |
Both the electing distribution company
and the escrow agent shall notify the Commission immediately if the escrow
account is closed for any reason. |
| (1) |
Prior to the
beginning of the fiscal year of an electing distribution company, the
Commission shall determine the amount of the fund appropriate for that fiscal
year, which amount shall not exceed $25 million for that fiscal year. In making
this determination, the Commission shall consider:
| (a) |
The amount of money that will be
necessary to provide sufficient contributions in aid of construction to permit
the electing distribution company to extend and expand its facilities on
occasions that the Commission deems to be in the public interest; and |
| (b) |
The amount required to assist low-income
residential consumers in times of emergency as determined by the Commission and
consumers of the regulated provider of natural gas in accordance with Code
Section
46-4-166. |
|
| (2) |
Funding for an EDC's USF shall
be derived from the following sources:
| (a) |
Rate refunds to the EDC from its interstate pipeline suppliers; |
| (b) |
Any earnings allocable to ratepayers
under performance based rates of the EDC authorized by Article 5 of Chapter 4
of Title 46 of the Official Code of Georgia Annotated; |
| (c) |
A surcharge to the rates for firm
distribution service of the EDC when authorized for such purpose by the
Commission; |
| (d) |
95% of the revenues
of the EDC from rates for interruptible service pursuant to O.C.G.A. § 46-4-154(b); |
| (e) |
The shares that are to be credited to the
cost of gas sold to firm retail customers pursuant to the revenue sharing
mechanisms set forth in O.C.G.A. § 46-2-23.1(i)(1); |
| (f) |
Surcharges on customers receiving
interruptible service on the EDC's system imposed by the Commission in
accordance with Code Section
46-4-154; |
| (g) |
Refunds of deposits required by marketers
as a condition for service, if such refunds have not been delivered to or
claimed by the consumer within two (2) years:
| 1. |
By December
15th of each year, all natural gas marketers and the
Regulated Provider shall make annual remittances to the USF of all deposits
that have not been delivered to or claimed by the consumer after two years from
the date that the consumer was eligible to receive the refund of the deposit.
Such annual remittance shall include all interest accrued on such unclaimed
deposit. |
| 2. |
By December
15th of each year, all marketers and the Regulated
Provider shall file an "Annual Unclaimed Customer Deposit Report" with the
Commission in Docket No. 15326-U. This report shall provide the following
information with regard to the annual remittance to the USF:
| (i) |
The dollar amount, even if $0.00, of the
annual remittance of customer deposits to the USF, separately identifying the
dollar amount of the customer deposits and the dollar amount of the interest
included on the customer deposits; |
| (ii) |
Either the actual or average interest
rate earned on the deposits during the two year period prior to the remittance
to the USF. The marketers and the Regulated Provider shall employ any of the
following three methods to demonstrate how the interest rate was determined:
| (i) |
Dividing the sum of the total interest
for each period (month) by the sum of the total customer deposits for each
period (month). |
| (ii) |
Dividing the
sum of the interest rates for each period (month) by the number of periods
(months). or |
| (iii) |
Using the
actual interest rates listed on the bank account statements. The marketer and
Regulated Provider must state which method was used in its annual
filing. |
|
| (iii) |
The total
dollar amount, even if $0.00, of deposits that have not been delivered to or
claimed by the consumer for which less than two years have passed since the
consumer was eligible to receive the refund of the deposit. This component of
the filing shall include the number of customer accounts that are associated
with this dollar amount. |
|
|
| (h) |
Funds deposited by marketers in
accordance with Code Section
46-4-160.3; |
| (i) |
The proceeds from the sale or lease of
facilities financed from the Universal Service Fund; and |
| (j) |
Any other payments to the fund as
provided for by law or by order of the Commission. |
|
| (3) |
Each EDC shall be required to make a
filing one month prior to the beginning of its fiscal year. The filing shall
include information necessary to assist the Commission in its determination of
the proper funding level, including:
| (a) |
The
EDC's proposed capital budget for the upcoming fiscal year. |
| (b) |
Information related to disbursements from
the USF for the prior fiscal year. |
|
| (4) |
Any amounts remaining in such fund at the
end of a fiscal year in excess of $3 million shall be available for refund to
retail customers in such manner as the Commission shall deem equitable. The
balance at fiscal year end, whether positive or negative, after such refund, if
any, shall become the initial balance of the fund for the ensuing fiscal year.
The USF should bear any costs of administering the refund. |
| (5) |
When a USF refund goes to a certificated
marketer of natural gas it shall be incumbent upon such marketer to pass
through such refund to its retail customers as a condition of retaining its
certificate of authority. O.C.G.A.
46-4-161(d). |
| (1) |
An EDC seeking a distribution from the
USF shall file with the Commission an Annual USF Facilities Expansion Plan
("Annual Plan") by September 1st of each year for the anticipated USF expansion
projects for the 12-month period of January 1 through December 31 of the
following year. USF funds shall only be available to aid in the construction of
the approach main line-extension, service main, natural gas fueling
infrastructure for motor vehicles, or compressed natural gas ("CNG") station,
or Liquefied Natural Gas ("LNG") facilities for any proposed facilities
expansion. The EDC may file revisions to its Annual Plan as necessary during
the year. The Commission shall determine whether any such revisions are in the
public interest. In establishing its Annual Plan, the EDC shall consider the
following:
| 1. |
The facility needs of the system
to ensure the reliability of the distribution system and service to
customers; |
| 2. |
The facility needs of
the system to ensure the availability of a diversity of gas supply and
interstate capacity options to serve the system; |
| 3. |
The forecasted growth requirements of the
EDC's system based on historical growth trends; |
| 4. |
The forecasted growth requirements of the
EDC's system based on input from developers and builders regarding their future
development plans; and |
| 5. |
The
forecasted growth requirements of the EDC's system based on input from state
and local community officials regarding economic development needs and the
forecasted growth of local communities.
This application shall contain the following minimum filing
requirements ("MFR"):
| (a) |
MFR-1 will
contain a detailed written technical description of the project (s). The
technical description will include, but not be limited to, a discussion of the
type, size, and length of the proposed facilities and the proposed route and
the community and/or company that will be served. The technical description
will affirmatively state if a proposed approach main line-extension is new main
or an extension or expansion of existing main as defined in
515-7-5-.01(j)(k).
There will be a discussion of the type and size of main proposed to be
replaced. The technical description will affirmatively state if the EDC is or
is not certificated to serve in the counties where the facilities will be
constructed. |
| (b) |
MFR-2 will provide
the the EDC's capital budget for the relevant fiscal year. If the capital
budget for the relevant fiscal year of the Annual Plan is not available, then
the current fiscal year's capital budget will be provided. When the capital
budget for the relevant Annual Plan fiscal year is available, it will be filed
in the docket number for the relevant Annual Plan. |
| (c) |
MFR-3 the EDC will set up a link on its
website with a description of the Annual Plan and use an online public
stakeholder process to help identify potential projects across the State of
Georgia. The public survey will begin April 1st and
close June 30th each year. As part of the Annual
Plan filing, the EDC will include stakeholder information as an electronic
Excel spreadsheet that will list the following, if available:
| ii. |
Date Responded to Survey |
| iii. |
Company/Organization Address, Phone #,
and Email Address |
| vii. |
Project Address (If Known) |
| viii. |
Project Closest Intersection |
| ix. |
Year Natural Gas Service Needed |
| x. |
Economic Development Details in Project
Area |
|
| (d) |
MFR-4 will
provide a detailed map of the project(s) that includes, but is not limited to,
the location of the project, route of the line-extension, or location of the
CNG station(s). |
| (e) |
MFR-5 will
provide economic development data related to the project(s) to include, if
available, capital investment by a natural gas customer or potential customers
in land, builders, equipment, natural gas equipment, and training, the number
of jobs that will be created as a result of natural gas service, and the
estimated annual payroll of the new customer. The economic development data can
discuss known growth in the project area(s), such as known residential and
commercial developments. |
| (f) |
MFR-6
will provide a Project Financial Analysis ("PFA") electronic Excel spreadsheet
with live cells and formulas intact. The PFA spreadsheet will include multiple
worksheets with the following:
| i. |
Separate
worksheets for each proposed project to include a detailed estimated
engineering breakout of construction costs. |
| ii. |
The last worksheet will provide a Cost to
Serve table with each project name, the total estimated engineering costs, the
gross up for income taxes, the gross up for financing costs, and the total
estimated project cost. The total estimated project cost for all projects will
be totaled. The proposed projects will be listed alphabetically.
The EDC may use either estimated engineering costs when
calculating cost to serve for an approach main corridor project or CNG station
or filed costs when supplementing a Tariff Rule 7 request or Tariff Rule 8
request.
|
|
| (g) |
MFR-7 will provide a Project Technical Analysis ("PTA") electronic Excel
spreadsheet with live cells and formulas intact. The PTA spreadsheet will
include multiple worksheets with the following:
| i. |
Separate worksheets for each project to
include the engineering details of each project that will include, but not be
limited to, the name of the project, type, size, maximum allowable operating
pressure ("MAOP"), and length of approach main and service main in
feet. |
| ii. |
For a CNG station, the
details will include the name of the project, location, and a list of equipment
to include, but not be limited to, the following:
|
|
| (h) |
In no event shall an EDC, who receives a
distribution from the fund, sell or lease any facilities financed by the fund
to an affiliate for less than the higher of the net book value or fair market
value of such facility without approval by the Commission. All Excel
spreadsheets will be provided with active and unlocked cells for formula
evaluation and auditing. |
| (i) |
No
later than forty-five days after the end of each quarter, the EDC shall make
filings on the status of each open USF project. The filings shall be provided
in paper and electronic format as an Excel spreadsheet with active and unlocked
cells and shall include the following:
| (a) |
Authorization for Expenditure ("AFE") Number |
| (e) |
Dollar Amount Approved |
| (f) |
Status of the project with the following
codes:
| (i) |
A - Project completed Notice of
Completion submitted funds received. |
| (ii) |
B - Project completed Notice of
Completion to be submitted on a date certain. |
| (iii) |
C - Project ongoing with a percentage
of completion and projected completion date. |
| (iv) |
D - Project cancelled with a date for a
filing to be made with the Commission. |
|
|
|
|
| (2) |
In reviewing the
information contained in the application of the EDC for a disbursement of money
from its USF, the Commission shall take into account whether the facility that
the EDC has proposed is in the public's interest. It shall be within the sole
discretion of the Commission to make this determination based upon the EDC's
application. The Commission may consider evidence regarding the economic
justification of alternative energy sources. |
| (3) |
Disbursements to an EDC from its USF for
the expansion of facilities and service shall not exceed five percent (5%) of
the EDC's capital budget for the fiscal year for which the application(s) or
Annual Plan is approved. The disbursement may be further restricted based on
available unencumbered USF funds. In the event the USF funds are not sufficient
to cover the project costs in an Annual Plan, the unrecovered portion of
facilities may be recovered through the EDC's normal ratemaking process(es) or
as otherwise ordered by the Commission. |
| (4) |
Any investment by an EDC in new
facilities that are financed by the USF shall be accounted for as a
contribution in aid of construction. |
| (5) |
The Commission shall not grant any
application of an EDC seeking a disbursement of money from its USF to operate,
maintain, replace or repair existing natural gas transmission and distribution
facilities. |
| (6) |
The EDC shall
maintain detailed records of all expenditures for which reimbursement is
requested and shall make those records available to the Commission and its
Staff for audit and verification. |
| (7) |
Upon the completion of the project and
the project being placed in service, the EDC shall file a Notice of Completion
Report with the Commission, which shall include an accounting of the actual
cost or filed cost of the project and any significant budget variance to the
Commission and the actual in-service date. |
| (8) |
Upon receipt of the Notice of Completion,
the Commission through its Staff or agent, may audit all expenditures; however,
previously audited expenditures pursuant to (6) above need not be audited
again. |
| (9) |
Within thirty (30) days
of the acceptance of the audit report, the Commission will authorize payment of
the amount authorized or the adjusted audit amount to reflect actual cost as
may be appropriate. |
| (10) |
In
accepting any disbursement from the USF, an EDC shall agree as follows:
| (a) |
Without prior Commission approval, the
EDC shall not sell, or otherwise dispose of or transfer, any facilities for
which the EDC received a disbursement from the USF. In reviewing any such
request, the Commission shall consider such factors as it may deem appropriate,
including whether the sale, disposition, or transfer is in the public
interest. |
| (b) |
Prior to the approval
of any such sale, disposition or transfer, the Commission shall require the EDC
to return to its ratepayers, in such manner as the Commission may prescribe,
the USF contribution to the cost of construction of the facility, plus a
portion of the profit, if any, on such sale, disposition, or
transfer. |
|
| (11) |
Notwithstanding the provisions of 515-7-5-.07(1), an EDC may apply for a
disbursement from the USF to fund natural gas fueling infrastructure for motor
vehicles at the discretion of the Commission. Such filing shall include detail
sufficient to allow the Commission to oversee the program operations and
determine whether the proposed project is in the public interest. |
| (1) |
The regulated provider shall have access
to the universal service fund to recover had debt arising from service to Group
1 Consumers in accordance with these rules and O.C.G.A.
46-4-166.
The regulated provider shall not have access to the universal service fund to
recover bad debt arising from service Group 2 Consumers. |
| (2) |
The Commission shall provide for the
terms and conditions of recovery of bad debt arising from service to Group 1
Consumers in the order by the Commission selecting the regulated provider or in
amendments thereto. Such procedures, terms and conditions of recovery shall be
designed to encourage efficient debt collection practices by the regulated
provider. |
If the Commission determines that an emergency exists, it may
disburse moneys from the fund to assist low-income customers.
If the Commission determines that a hearing is warranted, it
shall be conducted not less than thirty (30) days after an application for a
disbursement from a universal service fund is received. The burden of proof to
show that a disbursement of money from a universal service fund is appropriate
shall not be deemed met if the applicant fails to conform to these rules,
orders of the Commission, and granting access to the Commission through its
staff to audit information submitted by the applicant. Orders determining
whether a particular amount of money should be disbursed from a universal
service fund shall contain the Commission's finding 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."
