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Frequently Asked Questions
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| Q1. |
How long has the Public Service Commission been around? |
| A. |
In 1879, the Georgia General Assembly established the Railroad Commission of Georgia for the
purpose of regulating railroad passenger and freight rates, services and operations. As Georgia's
population grew and industry expanded, it was necessary for the Commission to grow as well. The
Legislature, therefore, conferred upon the Commission additional regulatory responsibilities with
periods of regulatory expansion and deregulation. In 1922, the Legislature changed the name of the
Railroad Commission to the Georgia Public Service Commission (PSC) to reflect the increasing variety
of services and utilities included under the Commission's jurisdiction.
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| Today, five elected Commissioners, supported by approximately 90 staff members, make decisions that
affect the lives of every Georgian each time a telephone is picked up, a light is turned on, and a
gas burner is used.
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| Q2. |
What Is The Commission's Role And Responsibility? |
| A. |
The Georgia Public Service Commission has exclusive power to decide what are fair and reasonable rates
for services under its jurisdiction. It must balance Georgia citizens' need for reliable services and
reasonable rates with the need for utilities to earn a reasonable return on investment. The Commission
protects consumers' interests while abiding by legal standards in setting rates. All matters scheduled
for public hearing are heard by the Commissioners or in special cases, by an appointed hearing officer
in open session.
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| In regulating rates, the Commission does not guarantee profits to service providers. It is the company's
responsibility to make prudent, sound business decisions to produce earnings. When regulated companies
bring a rate request before the PSC, it may be taken up first by one of the Commission's three standing
committees on which the commissioners serve: Telecommunications, Energy, or Administrative Affairs.
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| Assisting the commissioners are experts on utility operations. These experts may provide testimony and
make recommendations at rate, arbitration or other proceedings. To protect the public interest and to
fulfill its responsibilities, the Commission may:
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- Conduct investigations, hearings, and gather evidence
- Inspect properties, books and papers of regulated companies
- Determine costs
- Make and enforce rules
- Issue orders giving effect to Commission decisions
- Institute judicial proceedings to enforce orders, rules and regulations
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| Administrative sessions of the Georgia Public Service Commission are held the first and third Tuesday of
each month in hearing room number 110 at 244 Washington St. in Atlanta. Proceedings are open to the public.
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| Q3. |
How much is the Commission's budget? |
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The Commission's 2011 fiscal year budget which began on July 1, 2010 is $9,110,146 which includes $8,439,986 in state funds and $600,000 in federal funds.
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| Q4. |
What Is Regulated by the PSC? |
| A. |
| Electric |
- Investor-owned electric power companies (1)
- Electric membership corporations (42) (Territory and financing only)
- Municipally-owned electric power companies (52) (Territory only)
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| Natural Gas |
- Investor-owned natural gas companies (2)
- Liquefied Natural Gas Plants (5) (Safety only)
- Master meter operators (131) (Safety only)
- Municipally-owned natural gas companies (84) (Safety and territory only)
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| Telecommunications |
- Alternate operator service providers (160)
- Automatic dialing and announcement devices (115)
- Pay Phone Service Providers (603)
- Institutional telephone service providers (38)
- Interexchange carriers (78)
- Resellers (600)
- Telephone companies (34)
- Telephone service observing equipment users (338)
- Competitive Local Exchange Carriers (221)
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| Q5. |
How Does the Commission Decide a Rate Case? |
| A. |
Steps in a typical rate case include: |
| The Utility Files Its Petition |
| The utility requesting a rate increase first serves a public notice of intent. It then
files a rate case petition with all supporting data, including a request for the proposed
rates to take effect in 30 days. The Commission studies the utility's petition and sets a
hearing date.
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| PSC Studies the Petition |
| By law, the proposed new rates go into effect 30 days from the filing date, unless the
commissioners vote to suspend them. Normally, the commissioners order a five-month suspension
of the proposed rate so the staff can study all data submitted by the utility. At this time,
the Commission may designate its advocate and advisory staff teams. During a rate case, the
Commission's designated advocate staff is considered separate from the five elected commissioners
and the advisory staff. The advocate staff puts on its own case, usually opposing the utility's
request. The advocate staff's attorney cross-examines utility witnesses.
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| A separate team of advisory staff is designated to answer commissioners' questions and to support
them. The advocate staff prosecutes the case. Also, the Consumers' Utility Counsel (CUC) represents
residential and small commercial consumers in the rate case procedure. The utility publishes a notice
of hearing in newspapers of general circulation in its service area. This is done 30 to 60 days after
the filing. The PSC issues a procedural and scheduling order and may hold a pre-hearing conference
with all interested parties. The Commission staff can request any additional information it needs on
the rate request, and the utility provides it.
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| Interested Parties Intervene |
| For 30 days following the first published notice of the proceedings, requests to intervene are
considered by the Commission. The Commission grants the requests either at the pre-hearing conference
or on the first day of the hearing. The intervenors can request information from the utility, which it
must provide. The Commission staff and other intervenors begin their investigations. Adversary staff
activities may include hiring consultants, taking depositions from witnesses, limited auditing of
selected utility records and gathering other data.
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| Formal Rate Hearings Conducted |
| The utility presents its case at a public hearing conducted by the commissioners within 90 to 120
days after the initial filing. These hearings generally last from three to five days. Public witnesses
usually present their testimony the first day. All witnesses are subject to cross-examination by the
adversary staff and other intervenors.
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| The advocate staff completes its review and develops the Commission position on various elements in
the case. The advocate staff does not take an official position until it is ready to pre-file its
own testimony. The advocate staff makes an independent recommendation on rates 10 days before the
hearing date. Both the advocate staff and intervenors pre-file testimony and exhibits.
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| A second set of public hearings, 120 to 165 days after the initial filing, is held for the staff
and other Intervenors to present their case and to be cross-examined by the utility.
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| The utility files rebuttal testimony 10 days before a third set of public hearings. At those hearings,
the utility presents its rebuttal to the staff's and other intervenors' findings. This third set of
public hearings is held 160 to 165 days after the initial filing. During this set of hearings, the
Commission Staff and other intervenors cross-examine the utility.
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| Commission Issues Rate Order |
| The Commissioners take the case under advisement following the third set of public hearings. All
parties involved-the utility, Commissioners, Commission Staff, and intervenors-review the transcript
and records of the hearings and file recommendations, a proposed order and briefs.
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| At a subsequent administrative session, held the first and third Tuesday of each month, or at a special
called meeting, the commissioners decide what, if any, rate increases to grant and when the utility can
put the new rates into effect. The commissioners must make this decision within six months of the original
filing date or the utility is legally entitled to 100 per cent of its request, under bond and subject to refund.
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| After a decision on the rate case, the Commission issues a final order. The new rates go into effect 165 to
180 days after the initial filing of the rate change request. The utility may ask the Commission to reconsider
its decision within 10 days after the order. The utility may appeal the Commission's decision to the Fulton
County Superior Court within 30 days after the final order. Also, the intervenors may request reconsideration
and appeal the Commission's decision to the courts.
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| Commission Responsibility |
| In making its decisions, the Georgia Public Service Commission has a duty to balance the service needs of
Georgia's residents with the financial needs of the utility. The U.S. Supreme Court has determined that
rates must permit the utility to earn a return comparable to that of enterprises involving similar risk,
to preserve the financial integrity of the company and to allow the company to attract investors.
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| The Georgia Public Service Commission requires regulated utilities to provide adequate service at fair and
reasonable rates and to treat all customers equitably.
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