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Tuesday, September 1, 2009 - 1:25pm

ATL Gas Wants to Charge Upfront to Upgrade and Expand

Atlanta Gas Light wants to charge its customers all across the state for a future $400 million expansion around metro Atlanta.

AGL says it needs to lay bigger pipes around Atlanta over the next ten years to serve its current and future customers.

The utility is asking the Public Service Commission if it can charge its 1.4 million current customers about two dollars a month beginning this October to pay for it.

This would be the first time gas customers would pay for expanding gas infrastructure upfront says Tom Bond with the Public Service Commission.

“The traditional method would be for the utility to go out and build infrastructure it needs and then the next time it asks for a rate case it would ask for an inclusion of those costs in the new rate.”

The new strategy of having customers pay in advance for utility construction mirrors Georgia Power’s nuclear expansion plan
Earlier this year, Georgia lawmakers let Georgia Power charge its electric customers in advance to build two new reactors at Plant Vogtle.

Consumer groups including the AARP oppose the new surcharge. The PSC will vote on it September 29th.

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