Atlanta Gas Light Company to File Motion for Reconsideration of Rate Proceeding
August 23, 2001
ATLANTA, GEORGIA - Atlanta Gas Light Company, a wholly owned subsidiary of AGL Resources Inc. (NYSE: ATG), next week will file a motion for reconsideration of the rate review launched by the Georgia Public Service Commission earlier this week.
"It is surprising that AGLC's rate of return has suddenly become an issue for the Commission," said Paula Rosput, AGL Resources president and chief executive officer. "The detailed monthly reporting provided to the Commission, with information dating back to 1998, is meant to prevent this very issue from occurring. Those reports clearly show AGLC is far from overearning. We are confident that a full and fair review of the facts will show that the company is underearning relative to its allowed return. Ironically, a rate increase - rather than a decrease - is actually warranted. Meanwhile, we have been trying to hold the line and not raise rates by creating operational efficiencies."
In its most recent monthly filing with the Commission, AGLC reported a return on equity of 9.9 percent for the 12 months ended May 31, 2001, compared with an authorized return on equity of 11 percent established by the Commission in 1998. The last rate review conducted by the Commission established a rate of return for the company that was below the allowed rates for other regulated Georgia companies.
Based on the schedule adopted as part of the Commission's proceedings, a final decision would be rendered in March 2002. The decision to move forward with a rate review, based upon findings of a hired consultant and the Commission staff, assumes the company's returns exceed those allowed in the most recent rate proceeding decided by the Commission in June 1998.