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.”

Constellation, Maryland stalemate continues

The standoff between Constellation Energy Group and the state of Maryland remains at a stalemate, and the
hostility between the two sides appears to be widening. According to the Southern Maryland Newspapers Online, Governor Martin O’Malley recently turned down a settlement offer from Constellation that would have provided rate relief and rescinded an $87 million payment to the company’s current chief executive officer.

The dueling lawsuits stem from the state’s desire to have the final say in a proposed $4.5-billion deal to sell half of Constellation’s nuclear assets to Electricite de France, a sale that could have a major impact in the development of a third reactor at Calvert Cliffs Nuclear Power Plant. The Maryland Public Service Commission is currently reviewing the deal to determine if it benefits the public.

While the counter-proposal meets some of the goals outlined by state officials in May, it does not go far enough in some areas, O’Malley said. In a statement, the governor said Constellation’s offer fails to address both long and short-term rate relief, pursues green energy investment only at ratepayer expense, lacks transparency related to the compensation of CEO Mayo A. Shattuck III, and does not specify how Baltimore Gas & Electric, a wholly-owned subsidiary of Constellation, will be protected.

In its offer, Constellation said it would hold off seeking an increase in the electricity delivery rate for BGE customers until at least next January and limit that rate hike to 2.5 percent, half its initial ceiling. Any efforts to increase the natural gas distribution rate will not occur until after filing the electricity distribution rate case.

Chesapeake brings gas to Delaware campus

Chesapeake Utilities introduced natural gas to Georgetown, Delaware, during a recent ribbon-cutting ceremony at Delaware Technical & Community College, which is Chesapeake Utilities’ first customer in Georgetown.

“We’re excited that we are able to bring clean-burning natural gas to Delaware Tech,” said Darrell K. Wilson, director of business growth and development for Chesapeake Utilities. “Members of the Georgetown community have been asking for natural gas for years, and we are thrilled that Chesapeake is able to provide the energy they demand.” The ceremony featured comments by Wilson as well as Dr. Ileana Smith, vice president and campus director, and Georgetown Town Manager Gene Dvornick, prior to the ribbon-cutting.

“The campus has wanted access to natural gas for a long time,” said Smith. “We began preliminary discussions with Chesapeake several years ago and they were able to make it happen, with minimal disruption at the campus. Delaware Tech is pleased to have an additional form of energy available for campus operations. In these critical financial times when every dollar counts, having the option to utilize the most cost-effective method to heat the campus is essential.”