Georgia Public Service Commission Regulatory Update Presentation For: Southeastern Energy Society Luncheon September 18, 2006 Alston & Bird LLP Law Offices By David L. Burgess, Commissioner Georgia Public Service Commission 244 Washington Street, S.W. Atlanta, Georgia Telephone: / Web site:

Georgia Public Service Commission Mission Statement The Commission’s mission is to exercise its authority and influence to ensure consumers receive reasonably priced, high quality, reliable and innovative telecommunications, electric, natural gas and transportation services from financially viable and technically competent companies.

Key Energy Issues Georgia Power Company/Savannah Merger Integrated Resource Planning Process State Energy Strategy Renewables/Green Energy Natural Gas Winter Preparedness Initiatives

Georgia Power/Savannah Merger Georgia Power Company (“GPC”) and Savannah Electric Power Company merger effective July 1, Increasing Fuel Cost led to merger. Operating efficiencies to be gained by merger. Combined forward-looking fuel rate established. GPC’s next base rate case to be filed July 2007.

Integrated Resource Planning Process  2007 Integrated Resource Plan to be filed January  GPC to include “nuclear option” as supply side option.  Commission approved accounting procedure for GPC to account for cost related to filing for Early Site Permit and Combined Operating License with NRC.  Commission will consider GPC’s Clean Air Act Compliance Strategy.  Additional Demand Side Programs and initiatives will be considered.  Smart metering, Time-based Rates, Demand Response Programs to be considered.

State Energy Strategy The Governor’s Energy Policy Council will work with Georgia Environmental Facilities Authority (“GEFA”) to oversee the development of the State Energy Strategy. The Governor has appointed eighteen individuals as members of the council, and four state officials will serve as ex officio. The Commission has submitted comments and is participating in meetings and workshops.

Renewables/ Green Energy  Biomass Gas and Electric 20MW plant in Forsyth County will be the first in Georgia.  Commission adopted more favorable terms for Proxy Unit Price contract for Qualified Facilities (QFs) based on their operation.  Commission approved GPC’s Green Energy Tariff which lowered premiums to encourage greater customer participation.  Dekalb County Landfill will be GPC’s first resource. Scheduled to come on line in the fall of 2006.

Natural Gas Winter Preparedness Initiatives Consumer Education Consumer Protections Conservation Financial Assistance

Closing Remarks/Questions Mission Statement The Commission’s mission is to exercise its authority and influence to ensure consumers receive reasonably priced, high quality, reliable and innovative telecommunications, electric, natural gas and transportation services from financially viable and technically competent companies.