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New filing illustrates Atlanta Gas Light’s plans to enhance its system, support growth in Georgia

ATLANTA – April 29, 2021 – Atlanta Gas Light submitted its first-ever Integrated Capacity Development Plan, a filing newly required by the Georgia Public Service Commission. The document, referred to as 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.

 

“Access to natural gas has played a formative role in the development of Georgia’s burgeoning economy,” said Pedro Cherry, president and CEO of Atlanta Gas Light. “The Georgia Public Service Commission has helped ensure Georgia has the utility infrastructure to safely and reliably serve our customers while also helping attract business and jobs to Georgia. With growing residential, commercial and industrial demand, we want to maintain that same level of access by seeking PSC approval for many safety initiatives and intrastate pipeline and infrastructure expansion projects.”

  • Examples of proposed investments identified in the i-CDP include:
    Pipeline replacement: Atlanta Gas Light plans to 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 methane emissions by 59% while increasing its system by 21%.
  • Pipeline inspection safety: In anticipation of new federal guidelines, the company is working 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 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, to 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 and store gas when it is most affordable and then have access to that supply during periods of peak demand.

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.

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.

If the 2021 i-CDP is approved by the PSC as filed later this fall, the typical residential customer would see a new system reinforcement monthly surcharge ranging from $0.13 to $0.33 depending on the recovery method decided by the PSC. The surcharge would go into effect Jan. 1, 2022. Additionally, the PSC would approve a three-year capital investment plan, which Atlanta Gas Light would execute against annually through the current Georgia Rate Adjustment Mechanism. If that plan is approved as filed, a typical residential customer could experience annual increases, including the surcharge, that average 3.2% of a total base bill for each of the next three years.

To learn more about how Atlanta Gas Light is meeting the needs of its 1.6 million customers, visit www.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 more than 1.6 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 utility customers through its regulated distribution companies in four states with approximately 666,000 retail customers through its companies that market natural gas. Other nonutility businesses include investments in interstate pipelines, asset management for natural gas wholesale customers and ownership and operation of natural gas storage facilities. For more information, visit southerncompanygas.com.

Media Contact:
Mekka Parish
c: 404.387.8067 | msparish@southernco.com