Georgia Governor Signs Gas Law

Fortnightly Magazine - June 15 1997
This full article is only accessible by current license holders. Please login to view the full content.
Don't have a license yet? Click here to sign up for Public Utilities Fortnightly, and gain access to the entire Fortnightly article database online.

Georgia Gov. Zell Miller has signed into law the "Natural Gas Competition and Deregulation Act," which unbundles natural gas services and opens residential gas markets to competition.

Reuters Events – Energy Transition North America 2022 – #ETNA2022 – Register Now – Houston, Texas; November 9–10

Under S.B. 215, in less than three years Atlanta Gas Light Co. and its affiliates, Georgia Natural Gas and Savannah Gas Co., no longer will sell natural gas directly to end users. Instead the companies only will provide delivery service.

According to Fitch Investors Service, the law will benefit fixed-income investors of Atlanta Gas Light in the long term, because it mitigates risk by:

• Significantly limiting financial exposure to load variations by collection of volume insensitive straight fixed-variable rates for firm distribution capacity (about 70 percent of rate recoveries are volume based);

• Passing its obligations to serve onto marketers;

• Releasing upstream pipeline and storage capacity under contract to marketers at full rates, eliminating potential stranded costs; and

This full article is only accessible by current license holders. Please login to view the full content.
Don't have a license yet? Click here to sign up for Public Utilities Fortnightly, and gain access to the entire Fortnightly article database online.