Lawmakers Vow to Fix Georgia's Natural Gas Law

Matthew C. Quinn - Atlanta Journal Constitution/Knight Ridder/Tribune Feb.15, 2002

Lawmakers promised Thursday to fix Georgia's tattered natural gas deregulation law after consumer advocates complained the law has failed to deliver on promises of increased competition and lower prices. "Do something, but do it right. That's what we're going to try to do," said Sen. Nathan Dean (D-Rockmart), chairman of the Senate Finance and Public Utilities Committee.

A group of consumer advocates appeared before Dean's committee to air their grievances. Dean said their complaints were "well taken." Sen. Regina Thomas (D-Savannah), a proponent of re-regulation, brought several witnesses before Dean's committee to air their grievances with the 1997 deregulation law.

Carol Wigginton, a retired teacher from Jonesboro, complained that deregulation shifted $48 million in costs from industrial ratepayers to residential and small-business consumers. She also said that Atlanta Gas Light Co. figures charges for gas distribution using a "convoluted equation no one can understand."

Joyce Dorsey, president and chief executive of the Fulton-Atlanta Community Action Authority, said 20,000 consumers in Fulton County have had their gas shut off or are about to because they can't pay their bills.

Thomas said it's clear that the promises of the deregulation law, such as lower prices and more competition, are unfulfilled. "Everything that was said in 1997 is untrue," she said. The Legislature has rated the natural gas issue a top priority for this session. Almost a dozen bills have been introduced, but no votes have yet been taken. Dean said his committee would hold a hearing next week to hear from marketers and industry officials and move forward. Many lawmakers have said they are waiting for Gov. Roy Barnes to make his position on deregulation known. A blue-ribbon task force appointed by Barnes issued a report three weeks ago that recommended establishment of a regulated gas provider as an alternative for consumers to unregulated marketers. Joselyn Butler, a spokeswoman for Barnes, said the governor expects to make his recommendations within a week.

Also Thursday, the Public Service Commission opened a second round of hearings on Atlanta Gas Light's rates. The PSC staff has called for a $33 million annual rate reduction. AGL officials Thursday argued their case for a $50 million rate boost. Susan McLaughlin, president of the gas company, said AGL filed for the increase in response to the staff recommendation, which the company could not accept. Given the debate over the future of deregulation, she said the utility would not have filed for a rate boost "at this time." But she acknowledged that the company would have taken that step "in the next 12 months."