Atlanta Gas Light asks PSC for first rate increase in nine years

ATLANTA - Atlanta Gas Light Co. asked the Public Service Commission for a rate increase of $50.3 million a year. <br> <br> If granted, it would be the first rate hike for Georgia&#39;s biggest natural gas company since 1993 and would boost the average household&#39;s bill by $2.32 per month. <br> <br> The company said it needs the increase to cover unexpected costs of deregulation and to pay for a new $60 million customer information system. <br> <br> The last time the commission reviewed AGL&#39;s rates was in 1998, when it cut rates by $7.4 million per year. <br> <br> The PSC staff says rates should be cut by $33 million, the amount above authorized levels it says AGL is earning. Such a reduction would cut consumers&#39; bills by $1.83 a month. <br> <br> The request comes as the Legislature is considering changes in the 1997 deregulation of the natural gas industry, which has been criticized heavily by consumers. <br> <br> The company also will seek ``performance-based rates,&#39;&#39; a plan to share with consumers any earnings over a certain amount, Kevin P. Madden, executive vice president of legal, regulatory and governmental strategy for AGL Resources, told The Atlanta Journal-Constitution. <br> <br> Madden said the PSC approved a similar plan last month for Georgia Power Co. <br> <br> The PSC will hold public hearings on the increase in February and is expected to make a decision by April 17, with the change effective May 1.