AGL lawsuit dismissed

He suggested that the PSC's order approving the increase was flawed, but dismissed the case on a legal technicality.

AARP is weighing its options.

"In spite of this decision, AARP will continue to fight to protect Georgia's utility ratepayers," said spokesman Will Phillips. " The court's decision reaffirms the need for this effort and for all Georgians to pay attention to the decisions of the PSC."

AARP sued the PSC over its handling of an increase that will collect an additional $200 million to $400 million from Atlanta Gas Light customers over the next 15 years.

The revenues are gas distribution system capital improvements.  Monopoly utilities like AGL typically make those investments first, then get permission to raise rates to pay for it later, after a six-month PSC review.

But the PSC didn't handle the AGL increase as a rate hike.

Instead, the commission allowed the company to expand and re-purpose a 1998 surcharge meant to replace corroded pipelines.

That project is almost done, and the surcharge had been set to expire.  It will now continue and grow, under another name and with new duties, until 2025.

The move meant that the case was handled more quickly than a rate case. It also meant that AARP, which formally opposed the hike, didn't have discovery rights.

AARP said the commission ducked the law by allowing AGL to raise bills without going through the regulatory scrutiny state law requires in rate cases.

The company applauded the ruling.

“The court found that the PSC properly followed the established law involved in a surcharge proceeding,” said AGL President Suzanne Sitherwood.

“We are pleased with today’s decision. We can now continue to implement our system improvements as scheduled."