Georgia Territorial Electric Service Act - Executive Summary Peter K. Floyd, Esq. November 12, 2011 MEAG Power Mayor’s Summit
Georgia Territorial Electric Service Act - Executive Summary This discussion relates to two Acts of the Georgia General Assembly: • Ga. Territorial Electric Service Act of 1973 • Provides for exclusive service areas for each electric service provider (GPC, EMC and Municipals) with limited exceptions, e.g., large load customer choice and corridor (existing line) rights. • Also, provides protections from discrimination by electric providers. • Ga. Cogeneration and Distributed Generation Act of 2001 • Provides that customers that generate their own electricity may use that electricity free from most PSC regulation. • Also, provides for the process by which customer generators may sell electricity back to an electric supplier in certain circumstances. 2
Georgia Territorial Electric Service Act - Executive Summary • Ga. Territorial Electric Service Act of 1973 • Prior to the enactment of the Territorial Act, location of electric lines was largely unregulated. • Resulted in increasingly dangerous situations where electric suppliers literally “raced” to build lines faster to reach customers first, especially in metropolitan areas that were “booming” in the early ’70, e.g., Cobb Co. • I understand that there were even situations where suppliers cut each others lines and at least one major water main breach that exemplifies unsafe conditions related to the “race.” 3
Georgia Territorial Electric Service Act - Executive Summary Territorial Act - stated purposes : • Assure efficient, economical and orderly retail electric service. • Benefits the rate paying public directly and indirectly. • Inhibit duplication of lines. • Cost savings and dangerous situations. • Preserve the environment. • Who likes looking at more lines than necessary? • Protect and conserve lines lawfully constructed. • Gives electric provider assurance that it can recover the costs of lines and other facilities over time, permitting orderly and cost effective planning and construction. 4
Georgia Territorial Electric Service Act - Executive Summary Territorial Act – other purposes : • Exclusive territories make it clear who has a duty to serve. • Nondiscrimination rules assure that all customers are treated in a nondiscriminatory manner. • Limited competition for large loads and crossing corridors balance territorial efficiencies cost effectively with free market efficiencies. • Rate oversight via other rules (PSC for GPC and customer elected ratemakers for EMCs and Municipals). 5
Georgia Territorial Electric Service Act - Executive Summary • Georgia Cogeneration and Distributed Generation Act of 2001 • Provides that customers that generate their own electricity may use that electricity free from most PSC regulation. • Also, provides for the process by which customer generators may sell electricity back to an electric supplier. • 6
Georgia Territorial Electric Service Act - Executive Summary • Both the Territorial Act and the Distribute Generation Act were carefully crafted through debate and consideration of all interested parties. • Both Acts as written currently permit the development of renewable and distributed generation. • Proposals to amend either of these Acts should be approached very carefully as amendments could result in increased costs to rate payers or cost shifting among rate payers. 7
Questions: Contact: Peter K. Floyd, Esq. Phone: 404-881-4510 E-mail: peter.floyd@alston.com Alston & Bird LLP www.alston.com Atlanta • Charlotte • Dallas • Los Angeles • New York • Research Triangle • Silicon Valley • Ventura County • Washington, D.C. 8
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