Atlanta Gas Light to postpone rate case

Atlanta Gas Light has filed a request with the Georgia Public Service Commission (PSC) asking to postpone its scheduled filing of a rate case from this November until as late as June 1, 2010. Under an agreement reached with the PSC in its last rate case in 2005, Atlanta Gas Light agreed not to seek an increase in basic service rates for five years but also agreed that it would file a rate case by November 1 of this year. Atlanta Gas Light has not received an increase in its base rates since 1993.

“Over the last five years we have experienced slower customer growth and significantly increased costs in our operations,” said Suzanne Sitherwood, president of Atlanta Gas Light. “Although a rate increase is fully warranted, we will continue to exercise fiscal responsibility to control operating expenses and increase efficiencies,” said Sither-wood. The request for a postponement means that Atlanta Gas Light will not seek on November 1 of this year to increase basic service rates; however, such request will be made sometime thereafter but no later than June 1, 2010.

The company says it intends to move forward with its proposal to invest approximately $400 million to strengthen the backbone of its distribution system and liquefied natural gas (LNG) facilities, pending PSC approval. Known as STRIDE (Strategic Infrastructure Development and Enhancement), the proposed investment is expected to improve system reliability and create a platform to meet forecasted growth, while creating between 150 to 200 jobs annually throughout the 10-year period of the construction program. “It is important that we move forward with STRIDE and take advantage of low construction costs and low interest rates,” said Sitherwood. “The impact of any surcharge increase approved by the Commission may be largely offset given that commodity rates for natural gas itself are much lower than in recent years.”