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Friday, December 11, 2009 - 12:51pm

Atlanta Gas Light Asks PSC Extend Surcharge

Atlanta Gas Light wants to charge its current customers to extend gas lines in the state. They say it would cost up to $45 million. But state regulators say AGL customers could end up paying three times as much.

AGL went before the Public Service Commission FRIDAY in order to extend a $1.18/month surcharge for three additional years.

That's on top of the thirteen-year surcharge the PSC already approved.

Atlanta Gas Light says with the added revenue it could add gas lines to bring in new customers which would help keep rates down.

But according to calculations by the PSC's staff, current customers could actually be paying up to $150 million in the end with financing and handling costs added.

Opponents like the John Coffman with the AARP say the surcharge is unfair. "The state legislature and the Georgia commission have rules about how customers should pay for new customers," says Coffman, "and this new proposal would require existing customers to subsidize new customers by three times or even six times the amount that’s generally considered economic."

The AARP has already sued the utility and the PSC for approving the first surcharge.

The PSC is scheduled to make its decision mid January.

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