March 15 Newsletter

Bad News for Consumers: PSC Leadership Shake-up

The five members of the Georgia Public Service Commission are extremely powerful (no pun intended) constitutional officers authorized by the Constitution of the State of Georgia to regulate public utilities.  Although they are elected state-wide for six-year staggered terms, each represents one of five PSC districts – Winterville, Albany, Atlanta, Clarkesville and Marietta.

The PSC has exclusive power to determine and require fair and reasonable rates for services under its jurisdiction.  Since it’s an investor-owned electric utility, the PSC fully regulates the Georgia Power Company (GPC) that serves approximately 2.35 million customers in 155 of Georgia’s 159 counties, but PSC has limited regulatory power over the 52 municipally-owned electric systems and 42 electric membership corporations (EMCs) in the state.  Unless the plan is revised on the federal level, electric utilities in Georgia will remain traditionally regulated.

 S.B. 483 & H.B. 1160 Change PSC’s Method of Selecting Chairmen. Why now?

S.B. 483, H.B. 1160 would return to the pre-1991 way a PSC member becomes chairman.  Since 1991 the five PSC commissioners have rotated annually into the chairmanship and could rotate into that position again during their first six-year s and again in subsequent terms.  The PSC chairman interacts with legislators on behalf of PSC and presides over meetings.  Before 1991, PSC commissioners elected a chairman from their five members, but infighting and constant bickering led to their inability to choose a chairman after five ballots.  That situation prompted the legislature to vote 156-0 in the House and 48-0 in the Senate to replace elections with the current rotation system, which is fair.  It avoids a monopoly and clique control.

Two bills “dropped” simultaneously February 23rd – S.B. 483 in the Senate and H.B. 1160 in the House – are identical, but the House postponed action on H.B. 1160 twice.  S.B. 483 passed the Senate 34-18 March 5th and went into the House Energy, Utilities, and Telecommunications Committee.  If either bill passes, the five PSC commissioners would elect future chairmen to two-year terms, beginning January 1, 2013.  If that occurs, three of the five commissioners could monopolize the office of chairman and leave the others as “odd-men-out.”

Could this be the reason?  In 2010, Public Service Commissioner Tim Echols was elected to fill Robert Baker’s vacated seat.  Since then, Echols voted (a) against big telephone subsidies, (b) against a solar subsidy, (c) against Georgia Power in the Fuel Recovery Case, and (d) tried to persuade other Commissioners and Georgia Power to allow consumers a smart meter opt-out.

Commissioner Echols, who has been the lone PSC supporter of consumers that oppose Georgia Power’s policy of forcing consumers to participate in the smart meter program, rotated into the chairmanship in January.  These bills were introduced in February.

ACTION – Oppose.  Call several of the following House Energy, Utilities, and Telecommunications Committee Representatives Parsons, Ch., 404 656-9198; Geisinger, 656-0254; Horne, 656-0287; Amerson, 657-8443; Baker, 656-0202; Dempsey, 656-0213; Drenner, 656-0202; Dudgeon, 656-0298; Frazier, 656-0265; Fullerton, 656-0126; Hamilton, 656-5132; Harbin, 656-3949; Holt, 656-0152; Hudson, 656-7859; Lucas, 656-0220; Chuck Martin, 656-5064; Scott, 656-0254; Earnest Smith, 656-6372; Coach Williams, 656-0202; and Roger Williams, 656-3904.

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