ATLANTA, May 15, 2018 /PRNewswire/ -- The Georgia
Public Service Commission (PSC) today voted to approve a
stipulation reached between its staff and Atlanta Gas Light Company
(Atlanta Gas Light) that provides for $82
million in customer benefits stemming from the Tax Cuts and
Jobs Act (TCJA) of 2017, including $16
million in rate credits to be passed on to Atlanta Gas Light
customers beginning in July.
"We are committed to providing efficient and effective energy
solutions to our communities," said Bryan
Batson, president of Atlanta Gas Light. "The PSC's order
strikes the proper balance of allowing Atlanta Gas Light to
continue making important safety and modernization investments in
infrastructure programs while returning the net benefits of tax
reform to customers."
The stipulation recognizes the benefits of the federal tax
reform law, including the lowering of the federal corporate income
tax rate from 35 to 21 percent. It also factors in the negative
impacts to utilities, such as the loss of bonus deprecation and
cash flow shortfall caused by the change in tax rates. To
compensate for that loss in working capital, the PSC agreed to
adjust the Company's equity ratio, which should benefit the utility
and customers by helping protect credit ratings and preserve lower
borrowing costs.
In December, prior to the passage of the TCJA, Atlanta Gas Light
had proposed a base rate increase of approximately $22 million beginning in June of this year (see
release here) and approximately $25
million next year to fund critical long term infrastructure
programs and other compliance initiatives. The savings produced
from the lower tax rates eliminates the need to raise rates for the
next two years, credits $16 million
to customers, and reduces by approximately $19.5 million the balance owed by customers that
covers the cost of a previously completed pipeline replacement
program.
Rates will remain at current levels for the next two years under
the approved stipulation and Atlanta Gas Light must file a full
rate case by June 2019. Customers
will receive $8.52 in credits split
evenly between their July and October bills issued by natural gas
marketers.
About Atlanta Gas Light
Atlanta Gas Light is
one of seven 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 4.6 million natural gas utility customers through its
regulated distribution companies in seven states and more than 1
million retail customers through its companies that market natural
gas and related home services. 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 Southern Company
Gas at southerncompanygas.com.
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SOURCE Atlanta Gas Light