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Georgia Public Service Commission approves first-ever Integrated Capacity and Delivery Plan for Atlanta Gas Light

Typical residential customers can expect a 3% monthly rate adjustment to fund critical system investments enabling Atlanta Gas Light to ensure safety and reliability while meeting increasing demand

ATLANTA – Nov. 18, 2021 – Following an Administrative Session, the Public Service Commission has approved Atlanta Gas Light’s first-ever Integrated Capacity Development Plan (i-CDP), as well as its annual Georgia Rate Adjustment Mechanism (GRAM) filing.

The i-CDP provides insight into the company’s long-range plans for initiatives that will enable it to meet increased demand and deliver superior customer service while continuing to serve the state safely and reliably. The GRAM filing is an annual procedure that incrementally adjusts customer rates up or down based on a comprehensive regulatory review.

“Atlanta Gas Light is committed to providing clean, safe, reliable and affordable natural gas to our growing residential and business customer base,” said Pedro Cherry, president and CEO of Atlanta Gas Light. “In the face of increasing residential, commercial and industrial demand, the Georgia Public Service Commission’s decision to approve the i-CDP will help ensure Georgia has the natural gas infrastructure necessary to continue to safely and reliably fuel our customers in the decades to come. With approval of the i-CDP, we are now able to implement many safety, intrastate pipeline and infrastructure expansion projects that will be critical to the future of our state.”

While Atlanta Gas Light was previously required to submit forecasts of its gas supply needs in only three-year increments, the company moved to a 10-year forecast because the planning process for implementing interstate supply projects has grown more complex, often requiring many years to complete. The 10-year outlook also forecasts the capital investment needed to safely deliver that supply.

Moving to a longer-range planning horizon provides a more accurate and comprehensive view of Atlanta Gas Light’s long-term plans and increases transparency into proposed work in advance of ratemaking proceedings. This new process is expected to ultimately generate more stable and predictable rates.

Examples of initiatives in the i-CDP approved by the PSC include:

  • Pipeline replacement: Atlanta Gas Light will continue its infrastructure modernization program, which has enhanced the safety of its system and reduced the company’s emissions footprint by updating aging pipelines. Between 1998 and 2018, pipeline replacement helped Atlanta Gas Light reduce annual methane emissions by 59% while growing its distribution system by 21%.
  • Pipeline inspection safety: In anticipation of new federal guidelines, the company will work to ensure transmission pipelines have the capability to use new safety tools, such as smart pig equipment, to inspect the internal condition of pipelines.
  • Remote-control valve installation: To enhance safety and utilize best practices, Atlanta Gas Light will install more remote-control valves that control the flow of natural gas in pipelines from centralized locations.
  • Regulator station upgrades: To help ensure regulator stations are continuously operating and maintained according to federal regulation and industry best practices, Atlanta Gas Light will make upgrades to these facilities.
  • Pipeline pressure improvements:
    • The Peachtree-Piedmont Road Project: A ongoing pipeline replacement project in this growth corridor will help ensure Atlanta Gas Light’s infrastructure has the capacity to safely operate on the coldest days of the year, when demand is at its highest.
    • The Cumming to Hall County Pipeline: This project will help meet rising requests for natural gas service in this area by installing more than 28 miles of new natural gas infrastructure reaching this region.
  • The Cherokee Liquefied Natural Gas Expansion Project: When the LNG storage facility in Cherokee County was constructed in 1988 it was equipped for a second storage tank. This project will expand the existing facility by installing the second tank, which will help increase the company’s natural gas supply and meet demand on peak days. The new LNG tank will allow Atlanta Gas Light to purchase gas when it is most affordable, while safely storing it for use during periods of peak demand.

To keep the PSC apprised of these long-term projects’ progress and to maintain accountability, an updated i-CDP will be filed every three years.

As a result of the PSC’s decision, typical residential customers can anticipate a monthly bill increase of $2.11 (less than 3% of the total bill). That figure includes a system reinforcement rider monthly surcharge of $0.32, which reflects the increases associated with the i-CDP revenue requirement. These bill changes will take effect Jan. 1, 2022.

Along with the PSC’s approval of the first three years of capital investment in the i-CDP, it has also approved the mechanism that determines Atlanta Gas Light’s 2022-2024 total annual System Reinforcement Rider (SRR) and GRAM revenue requirement. A typical residential customer will experience an annual increase, including the surcharge, that averages 5.5% - 6% of their total base bill for each of the next three years.

To learn more about how Atlanta Gas Light is meeting the needs of its approximately 1.7 million customers, visit atlantagaslight.com.

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About Atlanta Gas Light
Atlanta Gas Light is one of four natural gas distribution companies of Southern Company Gas, a wholly owned subsidiary of Southern Company (NYSE: SO). Atlanta Gas Light provides natural gas delivery service to approximately 1.7 million customers in Georgia. In operation since 1856, the company is one of the oldest corporations in the state. For more information, visit atlantagaslight.com.

About Southern Company Gas
Southern Company Gas is a wholly owned subsidiary of Atlanta-based Southern Company (NYSE:SO), America’s premier energy company. Southern Company Gas serves approximately 4.3 million natural gas customers through its regulated distribution companies in four states with approximately 666,000 retail customers through its companies that market natural gas. Other businesses include investments in interstate pipelines and ownership and operation of natural gas storage facilities. For more information, visit southerncompanygas.com.

Media Contact:
Robin Gray
c: 339.364.1446 | robigray@southerncompanygas.com