Subject 515-7-1 GAS COMPANIES' CERTIFICATES
Terms used in these rules have the following meaning:
| (a) |
"Applicant"--Any person who
requests the issuance of a certificate to construct, acquire, or operate any
gas pipeline or distribution system, or extension thereof, pursuant to the
provisions of the Act approved February 17, 1956, Georgia Laws, 1956. |
| (b) |
"Certificate"--Certificate
of Public Convenience and Necessity issued by the Commission to any applicant
as provided by said Act. |
| (c) |
"Commission"--Georgia Public Service Commission. |
| (d) |
"Distribution System"--The
coordinated facilities including mains, services, regulators, meters and other
facilities (including peak shaving, or production plant) which are used or are
proposed to be used to distribute natural or manufactured gas to the
public. |
| (e) |
"Pipe
Line"--The pipe used or proposed to be used for the transportation of
natural or manufactured gas in intrastate commerce within the State from point
of supply to each point of delivery of gas either to ultimate consumers, or to
others for distribution and resale. Pipe Line includes such compressor
equipment, regulator stations and measurement or metering stations, and other
facilities as are associated with the pipe line. |
| (f) |
"Facilities"--All property,
means and instrumentalities owned, operated, leased, licensed, used, furnished,
or supplied for, by or in connection with the rendition of natural or
manufactured gas service to the public. |
| (g) |
"Person"--Any corporation,
public or private, company, person, partnership, firm or association, excepting
only those municipal corporations and counties of this State whose facilities
are located wholly within their own county. |
| (h) |
"Plant"--Property which is
necessary to provide service to the public as set forth in the various fixed
capital accounts of the Uniform System of Accounts for Gas Utilities prescribed
by the Commission. |
| (i) |
"Service"--The act or means of supplying natural or manufactured
gas to the public. |
| (j) |
"Utility"--Any person as herein defined engaged in the
transmission or distribution of natural or manufactured gas in intrastate
commerce within the State of Georgia. |
| (1) |
No person shall
construct or operate in intrastate commerce except as qualified within this
rule, any natural or manufactured gas pipeline or distribution system, or any
extension thereof, or acquire ownership or control thereof, either directly or
indirectly, without first obtaining from the Commission a certificate that the
present or future public convenience and necessity require, or will require,
such construction, operation or acquisition. Any person engaged in the
construction or operation of any line, plant, or system, or any extension
thereof as of February 17, 1956, shall be entitled to receive a certificate for
the territory being served by such person on February 17, 1956, upon proper
proof that such applicant is providing reasonably adequate service, if
application therefor was made prior to February 17, 1957. |
| (2) |
Where revenue bonds have been issued by
any county, municipality, or other political subdivision of this state in order
to buy, construct, extend, operate or maintain any portion of its gas
distribution system and necessary appurtenances thereof and the gas
distribution system extends or is to be extended beyond the limits of the
county in which the municipality or other political subdivision is located, or
when the distribution systems of a county extends is or to be extended outside
the limits of such county, a Certificate must be obtained from the Commission
with respect to all such facilities located or proposed to be located beyond
such county limits. |
| (3) |
Where
revenue bonds have been issued by any county, municipality, or other political
subdivision of this state in order to buy, construct, extend, operate or
maintain any portion of its gas pipe line systems and necessary appurtenances
thereof and the gas pipe line system extends or is to be extended outside the
limits of the county in which the municipality or other political subdivision
is located, or when the pipe line of a county extends or is to be extended
outside the limits of such county, a Certificate must be obtained from the
Commission with respect to all such pipe line located or proposed to be located
beyond such county limits, if gas service is rendered or gas deliveries are
made to others outside the limits of such county. |
All applications for a Certificate of Public Convenience and
Necessity must be in writing, properly authenticated. Any application that is
deemed to be incomplete after it is filed with the Commission shall not be
considered until such time as all of the information requested therein has been
furnished. Applications for authority to construct or acquire additional
facilities shall set forth in the order indicated the following, incorporating
any data already on file with the Commission by reference:
| (a) |
The exact legal name of the applicant; if
the applicant is a corporation, the State or territory under the laws of which
the applicant was organized, the location of the applicant's principal place of
business, the names of all States where the applicant is authorized to do
business and a concise but comprehensive description of the existing business,
operations and properties of the applicant with particular reference to the
transportation, distribution and sale of natural or manufactured gas. |
| (b) |
The name, title or post-office address of
the person to whom correspondence or communications in regard to the
application are to be addressed. Unless advised to the contrary, the Commission
will serve notices, orders, and other papers upon the person so
named. |
| (c) |
A brief but accurate
description of the project or facilities for which a certificate is sought and
the dates on which it is intended to begin and complete construction or
acquisition. |
| (d) |
A statement
setting forth the service proposed to be rendered by applicant, showing
communities proposed to be served, with the population of each, main line
industrial customers, sales or interchange with other utilities and any other
service. In describing such other service, furnish the name of any other
utility rendering service within any county in which any community or customer
to be served by applicant is located, together with a general statement of
pertinent facts as to the extent and nature of such existing service,
specifying whether such other utility is serving natural or manufactured
gas. |
| (e) |
A description of the
facilities proposed to be constructed, acquired or operated, giving, insofar as
such information may be pertinent, the size, capacity, length and location of
pipelines and laterals; the extent of distribution systems; the location, rated
horsepower and capacity of all compressor stations; the location and
description of other important property units; a description of the proposed
manner or method of operating said proposed facilities, including proposed
operating pressures, the capacity of the proposed facilities, estimates of
maximum and minimum day demands, and any other pertinent facts showing that
such facilities will be capable of performing adequately the service which the
applicant proposed to render. In connection herewith the applicant shall
furnish:
| 1. |
Fifteen (15) copies of a map
delineating the size and location of applicant's proposed pipe lines, or
distribution system, the communities to be served, the points of connection
with existing facilities and the location of points of gas supply to be
utilized in connection with the proposed facilities; such map shall include
roads, waterways and any other natural boundaries to enable the Commission to
distinguish the true location of the proposed facilities; as well as any other
operator's gas facilities within 1,200 feet of the applicant's proposed
facilities. The location of the proposed pipeline or distribution system and
other gas operator's facilities must be delineated in contrasting colors. The
maps shall be at least 11 x 14 inches. |
| 2. |
A statement setting forth all contracts
for the construction, purchase or lease of the proposed facilities and giving
the affiliation, if any, between applicant and any other party to said
contracts. A detailed breakdown of costs must be included for the construction,
purchase or lease of the proposed facilities. The cost breakdown shall include
the following:
| (i) |
Overall cost of the
project, |
| (ii) |
Cost per foot for
each size of pipe, |
| (iii) |
Cost for
right-of-way, |
|
|
| (f) |
A statement of the
source of gas, together with a copy of the interstate pipeline contracts or
full requirements contract therefore, which is to supply the market which is
proposed to be served. However, if such interstate pipeline contracts or full
requirements contract contain discounted or negotiated rates or terms, the
applicant may file such contracts pursuant to Commission Rule
515-3-1-.11. |
| (g) |
A statement setting forth all facts
bearing upon economic feasibility including:
| 1. |
The estimated total overall capital cost
of the proposed extension or acquisition, including all expenditures involved
in the construction or acquisition of the proposed facilities, proposed cost of
financing, working capital, and other incidental costs, amount of engineering
and contracting fees to be paid and a brief statement of applicant's proposed
plan of financing. |
| 2. |
A detailed
statement of the extent to which such plan is supported by firm or contingent
commitments from all financial sources, including commitments from banks, trust
companies, insurance companies, investment bankers, steel companies, pipeline
supply companies and other sources. |
| 3. |
A statement showing estimates of total
revenues expected from the proposed new facilities to be constructed, acquired
or operated, total fixed charges, total operating expenses. |
| 4. |
A general statement covering the rates
proposed to be charged by applicant for each kind of natural or manufactured
gas service proposed to be rendered, and the expected sales, revenues, average
revenue per MCF and average revenue per therm to be derived
therefrom. |
|
| (h) |
A general
description of the proposed method of supervising the operations of the
proposed project, including reference to any relevant service or management
contracts, existing or contemplated. |
| (i) |
A statement of any other facts and
circumstances upon which applicant relies to establish that present or future
public convenience and necessity required the new construction, acquisition or
operation of such facilities. |
| (j) |
In addition to all of the information specified in paragraphs (a) through (i)
of this rule, an application submitted under O.C.G.A. § 46-4-28(a.1)
must include:
| 1. |
Documentation sufficient to
support the applicant's contention that the existing certificate holder has
failed to begin construction or operation of any pipeline or distribution
system, or extension thereof, in substantially all the of the territory covered
by such certificate as further defined in Rule
515-7-1-.13; |
| 2. |
Documentation demonstrating that a
specified end-use customer, property owner, or developer has requested natural
gas service from applicant, the extent of the service requested, and the date
said service is needed; |
| 3. |
The
territory for which the applicant is seeking to provide natural gas service to
a specified end-use customer, property owner, or development; |
| 4. |
Documentation demonstrating that any newly
certified area requested by applicant to serve the specified end-use customer,
property owner, or development in question can be established by the Commission
with a boundary that meets safety and public welfare requirements; |
| 5. |
The rates and terms of service applicable
to the specified end-use customer, property owner, or development in question;
and |
| 6. |
Documentation demonstrating
that applicant can provide said requested service in a timely manner. |
|
| (1) |
Applicant shall serve a copy of the
application on the Mayor and Council (or equivalent city governing body) of the
city within the corporate limits of which service is proposed to be rendered,
and a certificate of service shall be appended to all copies of the application
itself. Service may be by mail unless otherwise ordered by the
Commission. |
| (2) |
When the
application has been assigned for hearing applicant must publish notice on the
time, place and purpose of the hearing once a week for three consecutive weeks
in a newspaper of general circulation in each territory affected, and evidence
of such publication must be submitted at the hearing. |
| (3) |
Notice of the application and scheduled
hearing thereon will be given by the Commission to the chief executive officer
of the municipality or municipalities affected and to each holder of a gas
Certificate of Public Convenience and Necessity. |
A verified original and fifteen (15) conformed copies of the
application for Certificates of Public Convenience and Necessity shall be filed
with the Commission. If the applicant is a corporation, a certified copy of its
articles of incorporation and amendments thereto shall be annexed to the
application unless otherwise on file with the Commission.
Certificates will be issued by the Commission in two forms,
viz.,"Pipe Line" and "Distribution System", and a separate application must e
filed for each type certificate. A "Distribution System" certificate authorizes
the acquisition or construction and operation of an integrated gas distribution
system, including all areas served therefrom. "Pipe Line" certificates are
required for authorization to acquire, operate or construct any natural or
manufactured gas pipe lines within the State of Georgia.
| (1) |
A separate application shall be filed for
each distribution system for which a certificate is desired, and except as
follows, a certified copy of any franchise held for the area proposed to be
served shall be attached to the application. If no franchise is held, this fact
must be stated. The Commission will not require the filing of a franchise for
territory served on February 17, 1956. |
| (2) |
"Distribution System" certificates will
be issued defining certificated area, and no further authority to construct,
extend or enlarge facilities within said certificated areas need to be obtained
from the Commission by the certificate holder, but certificates may be amended
by proper application to extend or enlarge a certified area. |
| (1) |
Applications for "Grandfather Clause"
certificates covering facilities in service and extent of service provided as
of February 17, 1956, shall contain a description of the area, territory or
location which applicant serves, and a map or maps shall be annexed to the
application on which is clearly shown the area, pipeline, or territory for
which a certificate is requested. |
| (2) |
Applications for a certificate covering
facilities in service and extent of service provided as of February 17, 1956,
shall not include proposed construction or extension of plant outside of the
requested service area. Such new territory applications shall be filed
separately. |
No certificate may be transferred or hypothecated or leased
except upon application to and approval by the Commission.
Certificates will be issued by the Commission without charge
and no utility shall capitalize on its books any value or amount for such
certificates, and in rate proceedings the Commission will not allow any value
in the rate base representing an alleged certificate value. Reasonable expenses
incurred by a utility may be charged to operating expenses.
The applicant for a certificate to serve an area shall select
an area which can and should be developed as a unit. When a certificate is held
for any area it is the responsibility of the certificate holder to provide the
service requirements within that area, subject to terms an conditions of the
rules and regulations of company and/or its rate schedule on file with the
Commission. The application for a "Distribution System" certificate for one
city or community area should not include any other incorporated community area
except only where two or more contiguous incorporated areas are served or are
to be served from a single integrated distribution system.
Participation at hearings on certificate applications will be
parties with a real interest, viz., those who propose to serve the area in
question, both the applicant and any others, or those who are authorized or
delegated to represent the public or consumers in some way. Objections, or
protests concerning an application shall be made in writing setting forth the
reason, nature, and extent of the objections or protests and such to be filed
with the Commission and served on the applicant at least five days in advance
of the scheduled hearing on the application. Generally, participation in the
hearing as a separate party will not be allowed to those whose interest is
neither that of a public utility proposing to establish or extend gas service,
nor that of a representative of the public or gas consumers.
| (1) |
The Commission
may at any time after notice and opportunity to be heard and for reasonable
cause suspend, revoke, alter or amend any certificate if the holder of the
certificate has willfully violated or refused to observe any of the lawful and
reasonable orders, rules or regulations prescribed by the Commission, or any
other law of this State regulating these pipe line or distribution systems, if
in the opinion of the Commission the holder of the certificate is not
furnishing adequate service, or if the continuance of said certificate in its
original form is incompatible with the public interest. |
| (2) |
Any certificate issued under Article 2 of
Chapter 4 of Title 46 shall be revoked or amended by the Commission upon
application to the Commission by a person to provide natural gas service to a
specified end-use customer, property owner, or developer who has requested
natural gas service if the holder of the certificate has failed to begin
construction or operation of any pipeline, or distribution system, or any
extension thereof, in substantially all of the territory covered by such
certificate. Provided, however, that the applicant must show that the specified
end-use customer, property owner, or developer who has requested natural gas
service is located at least two and a half (2½) miles beyond where the
holder of the certificate has begun construction or operation of any pipeline,
or distribution system, or any extension thereof. Once a person has filed such
an application, the portion of the certificate of the territory for which the
applicant is seeking to provide natural gas service to a specified end-use
customer, property owner, or developer shall be deemed revoked or amended. The
Commission shall determine whether the applicant shall be entitled to a
certificate for the territory that has been excluded from the certificate by
revocation or amendment, whether such territory should be reissued to the
person who held the certificate at the time of the application, or whether such
territory shall be deemed uncertificated. The Commission shall make such
determination within 90 days of the application and shall consider, in addition
to the factors set forth in subsection (a) of Code Section
46-4-25,
whether the applicant can offer service in a timely manner, and such other
factors the Commission deems in the public interest. The Commission in
determining whether to reissue a certificate to the person who held the
certificate at the time of the application shall consider the length of time
the certificate was held without service being provided. The newly certificated
area shall be designed by the Commission to serve the customers, property
owners, or developers in question while ensuring a boundary with safety and
public welfare as the focus.
| (a) |
As used in
this rule,"construction" shall be deemed to have begun if a contract has been
executed between the certificate holder and a third party, to include but not
be limited to mains and costs, and with actual commencement of gas facilities
being built within nine (9) months of the contract date. |
| (b) |
As used in this rule,"substantially all
of the territory covered by such certificate" shall mean 75% or greater of the
geographic territory covered by such certificate where such percentage is
calculated as follows:
% = (N/D) * 100
For said calculation the terms shall be defined as:
N = The acreage contained in the area within a one (1) mile
perimeter surrounding the certificated area in which holder of certificate has
begun construction or operation of any pipeline, or distribution system, or any
extension thereof. As used in this rule,"construction" shall be deemed to have
begun if a contract has been executed between the certificate holder and a
third party, to include but not be limited to mains and costs, and with actual
commencement of gas facilities being built within nine (9) months of the
contract date.
D = The total acreage of the certificated area.
|
|
| (3) |
Within ninety (90)
days of the submission of a complete application, the Commission shall
determine whether the applicant shall be entitled to a certificate for the
territory that has been excluded from the certificate by revocation or
amendment, whether such territory should be reissued to the person who held the
certificate at the time of the application, or whether such territory shall be
deemed uncertificated. |
| (4) |
The
ninety (90) day time frame during which the Commission is charged with reaching
a determination under O.C.G.A. § 46-4-28(a.1)
shall not commence unless and until a completed application has been submitted
by the applicant. Within fifteen (15) days after the filing of such an
application, the Commission shall provide the applicant with either a written
notification stating that said application is deemed to be complete, or, a
written notice of incompleteness specifying what information is lacking. In
those instances in which additional information is provided pursuant to a
notice of incompleteness, the Commission shall notify the applicant no later
than fifteen (15) days following its receipt of the additional information
whether such information is sufficient to regard the application as complete.
An application will be deemed by the Commission to be withdrawn if after twenty
(20) days from the date of a notice of incompleteness of said application
applicant has not filed the required information or provided an explanation as
to why said information is unavailable. |
The applicant shall supply the Commission with any such
additional information or data as may be found necessary in order for the
Commission to render a fair and equitable decision in issuance of
certificates.
| (1) |
In the event that a person applies for a
certificate to construct or operate in intrastate commerce any natural or
manufactured gas distribution system, or any extension thereof, or to acquire
ownership or control thereof, either directly or indirectly, for an area for
which another person already possesses such a certificate, the applicant must
show, in addition to the other demonstrations required by law and Commission
rule, that the existing holder of the certificate for the area has willfully
violated or refused to observe any of the lawful and reasonable orders, rules,
or regulations prescribed by the Commission or any other law of this state
regulating these pipeline or distribution systems, is not furnishing adequate
service, or that the continuance of the holder's certificate with regard to the
area in question is incompatible with the public interest. |
| (2) |
In determining whether the existing
certificate holder is furnishing adequate service or whether the continuance of
the existing certificate holder's certificate with regard to the area in
question is compatible with the public interest, the Commission shall consider:
| a) |
| (i) |
the
time period for which the requested area for certification has remained
unserved, or not adequately served, by a provider or the current certificate
holder in the requested area; and |
| (ii) |
the reason(s) for the area not receiving
service; |
|
| b) |
whether the
existing certificate holder did not serve a requesting customer within the
applied for territory and the reasons for the failure to provide
service. |
| c) |
the cost impact,
including any benefit, on ratepayers of granting the application for
certification and amending the existing certificate versus denying the
application for certification. |
| d) |
any other factors the Commission deems relevant. |
|
| (3) |
Should the Commission determine that the
applicant has met the showing set forth in subparagraph (1) and (2) above,
along with the other requirements for the granting of a certificate set forth
in the pertinent Commission rules and orders, the Commission will:
| a) |
Grant the applicant a certificate for the
area in question, and |
| b) |
Amend the
existing certificate holder's certificate to exclude the area in
question. |
|
| (4) |
Nothing in
subparagraph (3) shall be construed to limit the Commission from taking any
additional lawful action with regard to the applicant or existing certificate
holder. |
| (5) |
In the event that a
person applies for a certificate to construct or operate in intrastate commerce
any natural or manufactured gas distribution system, or any extension thereof,
or to acquire ownership or control thereof, either directly or indirectly, for
an area within the limits of the home county of a municipal or county
corporation with a natural gas distribution system or natural gas facilities,
the applicant must show, in addition to the other demonstrations required by
law and Commission rule, that the granting of the application would not create
any risk to public safety and welfare. |
| (6) |
Except for good cause shown and upon
credible testimony that such crossing or closure within eighty (80) feet is
safe and affords no significant danger to the public safety and welfare and
after hearing before the Commission, no person shall construct or install any
natural gas facilities that cross or are located within eighty (80) feet from
any pipeline facility of another person. This prohibition shall apply in all
instances, including where, as of the effective date of this rule, the
distribution system or facilities operated by more than one person are in
existence within a single certificated area or home county. A copy of the
application for leave filed under this Subsection shall be served on the gas
system operator whose system would be crossed or approached with eighty (80)
feet. In instances in which the rights of parties will not be substantially
prejudiced, the Commission maintains the discretion to waive the requirement
for a hearing prior to granting an exception to the prohibition against
crossings or closures within eighty (80) feet if the party seeking the
exception and the party whose natural gas facilities will be affected by the
exception have both agreed to waive said hearing. |
| (7) |
A municipality that annexes any area
outside of the county that was the municipality's home county as of the
effective date of this rule may not extend its distribution system into the
annexed area, or any other area outside of its home county as of the effective
date of this rule, if a certificate of public convenience and necessity has
been issued to any other person covering such territory, unless it has been
demonstrated that the holder of the certificate for the area has willfully
violated or refused to observe any of the lawful and reasonable orders, rules,
or regulations prescribed by the commission or any other law of this state
regulating these pipeline or distribution systems, is not providing adequate
service or that the continuance of the holder's certificate with regard to the
area in question is incompatible with the public interest. If an application
for a certificate of public convenience and necessity is pending before the
Commission for a territory outside the municipality's home county as of the
effective date of this rule, a municipality shall not extend its distribution
system into that area until a final determination on the application has been
issued by the Commission. The municipality may intervene in the Commission
docket on the pending application. |
| (8) |
Nothing in this rule shall be deemed to
alter the existing obligations pursuant to the Commission's GC-1 form of
persons constructing or operating in intrastate commerce within this state any
pipeline or distribution system, or any extension thereof, for the
transportation, distribution, or sale of natural or manufactured gas. |
