20092009Annual Report for FAnnual Report for Fiscal Yiscal Year 2009ear 2009....

AlabamaAlabama

PublicPublic

SerSer vicevice

CommissionCommission

TABLE OF CONTENTS

Introduction . . . . . . . . . . . . . . . . . . . . . 3Commissioners. . . . . . . . . . . . . . . . . . . 4Commission Staff . . . . . . . . . . . . . . . . 7Administrative . . . . . . . . . . . . . . . . . . . 9Advisory . . . . . . . . . . . . . . . . . . . . . . . . 11Energy. . . . . . . . . . . . . . . . . . . . . . . . . . 17Telecommunications . . . . . . . . . . . . . . 26Transportation . . . . . . . . . . . . . . . . . . . 29Legal . . . . . . . . . . . . . . . . . . . . . . . . . . . 31APSC History . . . . . . . . . . . . . . . . . . . 32Past and Present Commissioners . . . . 33

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Table of Contents

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Introduction to the Alabama Public Service Commission

The activities and accomplishmentsof the Alabama Public Service Commis-sion during the period October 1, 2008,to September 30, 2009, are presented inthis annual report.

The Alabama Public Service Com-mission is a quasi-judicial regulatorybody whose jurisdiction, powers andduties are delegated to it by the AlabamaLegislature. The Commission derives itsauthority from the Code of Alabama,1975, Sections 24-1-28, 10-2B-15.13, 10-5-3, 10-5-4, 10-5-7, 11-50-268, 11-50-269,11-50-270, 37-1-32, 37-2-3, 37-2-171, 37-3-7, 37-4-60, 37-4-82, 37-4-108, 37-9-8,and 37-9-9.

The Alabama Public Service Com-mission has been charged with theresponsibility for the regulation of publicutilities and some aspects of the trans-portation industry doing business in Ala-bama. These include privately ownedcorporations providing electric, gas,water and certain telecommunicationsservice to the public, as well as railroads,buses, some trucking companies andtaxis operating outside police juris-dictions.

Three elected Commissioners—apresident and two associate commission-ers—administer all functions of theCommission. Commissioners are elect-ed to four-year terms, with the presi-dent’s term staggered by two years fromthe two associate commissioners.

The Commission supervises and reg-ulates utilities and some aspects of publictransportation to ensure adequate serv-ice and facilities are made available atrates that are reasonable. The law pro-hibits variations from established rates.The quasi-judicial status of the Commis-sion requires conducting public hearingson applications, petitions and com-plaints, together with the rendering ofdecisions on those proceedings.

The Commission operates solelyfrom inspection and supervision feesreceived from the companies regulatedand appropriated by the Legislature.

The various divisions conduct thework of the Commission. A statement ofthe function, operational procedure andaccomplishments of these divisions dur-ing FY-09 appears in this report, which ispublished by the Advisory Staff.

LUCY BAXLEY is Alabama’s newly elected Presi-dent of the Alabama Public Service Commission. Her

impressive record and extensive experience in state gov-ernment includes two previous terms as State Treasurer

and one term as Lt. Governor. Lucy is particularly well-positioned to provide citizen oversight on key issues such as

energy, telecommunications and transportation. She bringsleadership and integrity to the Public Service Commission.Since she was sworn in November 8, 2008, Lucy’s top priority

has been to keep electricity rates as low and as competitive as possible toattract and maintain industry and jobs in the state. Not only has she presidedover every commission meeting, she has testified before the state legislature ontelecommunications issues, attended national and state energy conferences, andworked to influence energy policy in Congress.

Having spent her early public life in city, county and state government serv-ice, Lucy went on to earn a coveted reputation in Birmingham real estate. Thenin 1994 as her youngest child was starting college, she launched a remarkableand stunningly successful career in public life beginning with her first election asAlabama’s State Treasurer.

Re-elected in 1998, she received the highest number of votes cast for anycandidate for constitutional office in that election. Four years later, the citizensof Alabama gave her more votes than either candidate running for governor thatyear, as they ushered her into the Lt. Governor’s office.

Honored with numerous awards during her years in public service, Lucy isparticularly proud of being named the Senior Citizens’ Golden Eagle Statesmanof the Year and Outstanding Woman Leader by the American Association ofUniversity Women. Known throughout Alabama for her career-long dedicationto championing the rights of the aging, she was chosen to serve as spokespersonfor Senior Promise, a statewide advocacy program for senior citizens andremains closely connected with senior programs across the state. She is a mem-ber of the Auburn University Women’s Philanthropy Board and the Universityof Alabama’s XXXI (thirty-one), a women’s leadership Honorary. She is amember and chair of the Advisory Council of the Alabama Federation ofDemocratic Women.

Lucy Baxley grew up on a farm in Houston County where her faith and sim-ple rural upbringing helped shape the values she maintains today. She is mar-ried to Jim Smith, also a native of south Alabama. She has two children, BeckyNichols and Louis Baxley, and two grandchildren. Lucy and Jim are activemembers of Frazer Memorial United Methodist Church in Montgomery.

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Commissioners

Commissioner Baxley’sStaff:

Lisa Parrish,Executive Assistant III

April Pugh, Esq.,Technical Assistant

Leveika Martin,Executive Secretary

Nancy Bivens,Laborer

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JAN COOK is a native of Dozier, Alabama,where she served on the City Council. She is a grad-uate of Auburn University with a degree in PoliticalScience. She has also done graduate work at bothAUM and Troy State University. In 1982 she soughther first statewide office and won the office of StateAuditor with more votes than any other candidate seekingoffice. She was reelected as State Auditor in 1986. In 1990she was elected to the Alabama Public Service Commission. Shewas re-elected to the Alabama Public Service Commission in 1994,1998, 2002 and 2006.

Commissioner Cook has always been a consumer-minded Commis-sioner and has sponsored several initiatives, including antislamming andcramming legislation and statewide Y2K information forums. She hasalso been involved in issues ranging from helping Alabama agriculturecompete in a global market, to her concerns for railroad safety. In addi-tion, Commissioner Cook developed several programs to help Alabamafarmers through the 2000 and 2007 droughts. The Alabama FarmersFederation honored Commissioner Cook with its Service to Agricultureaward in 2008.

Commissioner Cook’sStaff:

Kelly Mulero,Executive Secretary

Karen Rogers,Administrative SupportAssistant III

Commissioners

SUSAN D. PARKER, Ph.D., was elected to the Alaba-ma Public Service Commission, Place 2, in November2006. In addition to her work on behalf of Alabamaconsumers, she has quickly become a leader in regionaland national regulatory organizations. In 2009, sheserved as President of the Southeastern Association ofRegulatory Utility Commissioners and was elected Sec-ond Vice President of the National Association of Regu-latory Utility Commissioners (NARUC). Parker also

serves on NARUC’s Electricity Committee and the Sub-committee on Education.

Not long after taking office in late 2006, CommissionerParker established a Consumer Education Initiative to edu-

cate Alabamians on ways to conserve energy and lower utilitybills. She has been a champion of energy efficiency and renewable

energy throughout her first term.Dr. Parker entered politics after a 25-year career in public education.

In 1998, she was elected State Auditor, and in 2002 became the first womanin Alabama ever to be nominated to the U.S. Senate.

In 1972, at the age of 16, Parker took a job at Calhoun Community Col-lege as a file clerk. She would rise through the ranks, while continuing herown education, to become an Associate Dean.

Indeed, the Commissioner worked full time throughout the period dur-ing which she earned four degrees by attending classes at night. It took her13 years, but she persevered to earn her associate’s, bachelor’s, master’s andthe Ph.D. – all with honors.

Community service has been important to her throughout her career.She has served as president of a number of non-profit organizations,including the Boys & Girls Clubs, Heart Association, Cancer Society,Leukemia Society, Big Brothers/Big Sisters, and the United Way. She alsohas chaired leadership programs for both the Athens and Decatur Cham-bers of Commerce.

Dr. Parker was the first woman in Alabama to be recognized by the U.S.Jaycees with its Ten Outstanding Young Americans award. The Boys & GirlsClubs of Alabama has named her its Outstanding Volunteer in the state.

Parker and her husband of 29 years, Paul Parker, enjoy golf and travel.They are members of the Cumberland Presbyterian Church, where Susan isa Sunday school teacher.

Highlights:

Born in Eva, Alabama, in Morgan CountyEarned 4 college degrees while working full time and attending class at nightPh.D. in Administration of Higher Education, University of Alabama, 1985Master’s degree, University of Alabama at BirminghamB.S., Athens State CollegeSuccessful career in higher education, 1972-1996State Auditor of Alabama, 1998-2002First woman in Alabama nominated for the U.S. SenateElected to Alabama Public Service Commission, Place 2, November 2006

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Commissioners

Commissioner Parker’sStaff:

David P. Rountree,Technical Assistant

Brad Williams,Executive Assistant III

Angier Johnson-Gunn,Communications Director

Denise D. Harris,Executive Secretary

Kelly Reynolds,Student Assistant

Walter L. Thomas, Jr.Commission Secretary

Sandy Haynes,Clerk Stenographer III

Felisa Webster,Administrative Support Assistant III

Tashenma Lawrence,Administrative Support Assistant II

Kelly Tuck,Laborer

Finance Section

Miles Gagner,Senior Accountant

Kimberly Holt,Senior Accountant

Ernestine Huffman,Accountant

Anthony Jackson,Account Clerk

Motor Carrier Records Section

Valerie Hogan,Administrative Support Assistant III

Leveika Martin,Administrative Support Assistant II

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Commission Staff

Administrative Division _______________________

Judy McLean,Director, CPA

Ellen Irvine,Administrative Support Assistant III(deceased)

Jodie Byrd,Administrative Support Assistant I

Analysts

Tom Samford,PSC Attorney

Gene Pitts,PSC CPA

Rolland Casey,PSC Accountant

David House,Public Utility Analyst III (retired on 1/1/2009)

Clarence Duncan,PSC Rate Analyst

Consumer Services Section

Aquilla Spivey,Consumer Services Manager

Sue Hicks,Consumer Services Specialist

Wanda Lowery-Geiger,Consumer Services Specialist

Stephanie Sweet,Consumer Services Specialist

Liz Thompson,Clerk Stenographer IV

Michelle Smith,Administrative Support Assistant III

Information Systems Services

Kay Oswalt,IT Systems Specialist Senior

Debra Jackson,IT Systems Technician

Karen Gaston,Programmer/Analyst Associate

Federal Affairs

Mary Newmeyer,Public Utility Analyst Manager(retired on 11/1/2008)

Gene Hanes,Public Utility Analyst Manager(retired on 5/1/2009)

John Free,Public Utility Analyst Manager

Personnel

Dorinda Kepler,Personnel Assistant III

Rozetta Parker,Administrative Support Assistant III

Advisory Staff________________________________

Janice M. Hamilton,Director

Electricity SectionJohn D. Free, CPA,Public Utility Analyst Manager(transferred to Advisory on 8/1/2009)Bernard W. Givan,Public Utility Analyst Manager(hired on 9/21/2009)Robert Taylor, III,Public Utility Analyst IIILinda D. Gardner,Public Utility Analyst IIPatricia W. Smith,Public Utility Analyst IISheila H. Ward,Public Utility Analyst II

Natural Gas SectionRobert E. Reed,Public Utility Analyst ManagerBrenda P. Roberts,Administrative Support Assistant IIIIra Joe Leverette,Public Utility Analyst IIIDonald E. Powell, CPA,Public Utility Analyst IIITonya W. Williams,AccountantMarty P. Rush,Public Utility Analyst I(hired on 1/1/2009)

Gas Pipeline Safety SectionWallace R. Jones, Sr.,Gas Pipeline Safety AdministratorJannette S. Mitchell,Clerk Stenographer III

O. Harold Dunson,Pipeline Safety Investigations SupervisorJohn Paul Harris,Pipeline Safety Investigations SupervisorThomas W. Lancaster,Pipeline Safety Investigations SupervisorSpencer C. Brady,Pipeline Safety Training Officer(retired on 12/31/2008)Bryan C. Kichler,Pipeline Safety Investigator, Senior(hired on 12/4/2008)Gregory E. Meadows,Pipeline Safety Investigator, SeniorHosie E. Powell,Pipeline Safety Investigator, SeniorJudy D. Ramsey,Pipeline Safety Investigator, Senior

Energy Division ______________________________

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E. Clark Brown,Pipeline Safety InvestigatorDaniel E. Trapp,Pipeline Safety Investigator

Special Projects SectionJ. Rick Cleckler,Public Utility Technical Specialist, Senior

Water SectionStephen D. Bartelt,Public Utility Analyst ManagerVirginia S. Hill,Administrative Support Assistant I(transferred from Commissioner Cook’soffice on 9/1/2009)

Commission Staff

Energy Division (Continued) ________________________

John A. Garner,Chief Administrative Law JudgeG. Scott Morris,Administrative Law JudgeSuellen L. Young,Attorney IIIEileen M. Lawrence,Departmental Operations SpecialistAisha Smith,Administrative Support Assistant IIICarolyn Denham,Administrative Support Assistant III

Enforcement Section

Earl Reeves,Transportation Enforcement SupervisorJohn M. Brock,Transportation Enforcement Area SupervisorLeo Sauls, Jr.,Transportation Enforcement OfficerTerry Shirley,Transportation Enforcement Area Supervisor

Gary Shirley,Transportation Enforcement OfficerSamuel B. Peacock,Transportation Enforcement OfficerMichael L. Lawson,Transportation Enforcement OfficerWade Brinson,Transportation Enforcement Officer

Legal Division _______________________________

Darrell Baker,Director

Economic Compliance Section

Larry Smith,Public Utility Analyst ManagerE.C. McArthur,Public Utility Analyst IIITom Jones,Public Utility Analyst IIILaneeta Roberts,Public Utility Analyst IIIEugene Holsenbeck,Public Utility Analyst IIBill Cook,Public Utility Analyst II

Janet Conway,Public Utility Analyst IILinda Jones,Clerk Stenographer IIIDeboraha Thornton,Administrative Support Assistant IIICynthia Allen,Administrative Support Assistant I

Service Compliance Section

David Peeler,Public Utility Analyst IIIGlenn Darter,Public Utility Field Technician, SeniorTerry Jackson,Public Utility Field Technician, Senior

Bobby Mobley,Public Utility Field Technician, SeniorJack Cates,Public Utility Field TechnicianSteve Bennett,Public Utility Field TechnicianDoug Dillard,Public Utility Field TechnicianPerry Johnson,Public Utility Field TechnicianGilbert Carlisle,Public Utility Field TechnicianBarbara Franklin,Clerk Stenographer III

Telecommunications Division___________________

Britt Roberts,DirectorRita Grantham,Clerk Stenographer III

Rates and Services Section

Ron Hicks,Transportation Regulatory ManagerDonald Williamson,Transportation Rate Specialist

Insurance and Registration Section

Larry Wingard,Transportation Regulatory Manager(retired on 4/1/2009)Robin McBrayer,Staff AccountantTara Frazier,Administrative Support Assistant IIJennifer Morgan,Account ClerkAmy Bowden,Account Clerk

Natasha Fields,Administrative Support Assistant IIRetha Bryant,Administrative Support Assistant I

Railway Safety Section

John C. Longcrier,Railway Safety AdministratorDanny Arledge,Railway Safety InspectorLarry Coleman,Railway Safety Inspector

Transportation Division _______________________

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Administrative Division

Secretary of the CommissionThe Commission Secretary receives all filings made to

the Commission and distributes them to the appropriatedivision. He also assigns docket numbers to cases requir-ing public hearings and maintains an electronic file oncases so that information on the status of any case can beobtained quickly.

The Commission Secretary takes and distributes theminutes of each monthly Commission meeting. He atteststo and files orders of the Commission and certifies copiesof orders and other documents of record in the officialfiles of the Commission.

The Secretary files Commission oaths of office, sure-ty bonds covering each railway policeman appointed bythe Governor, furnishing certification of the policeman’sappointment along with the oath and bonding to the Sec-retary of State.

The Secretary signs orders for the Commission toauthorize transportation companies to place reducedrates into effect on less than statutory time, in order tomeet an emergency.

The Secretary receives public officials, attorneys,transportation and utility executives, and other interestedpeople, providing them with information on the procedur-al practices of the Commission.

The Secretary is responsible for the retention of allrecords of the Commission. He coordinates the transferof records to the Department of Archives and History aswell as destruction of records.

The Secretary acknowledges receipt of filings advisingparties of the requirements of the Rules of Practice andstatutes governing proceedings in which they are involved.He gives general procedural information and answersinquiries requiring research into Commission records.

The Secretary is responsible for the coordination ofthe departmental telecommunications services. This taskprimarily entails ensuring that the telephone and datalines are working properly.

A tabulation of the principal activities of the Secre-tary during FY-09 is as follows:

Commission orders issued …………………1,161Public hearings held ……………………………45Report and Recommended orders issued ……3

Finance SectionThe Finance Section plans, coordinates and directs

the fiscal functions of the Commission, overseeing suchactivities as accounts, budgets, purchases, equipment andcustodial care. Its responsibilities include maintaining thegeneral books; consolidating operating budget require-ments; and preparing a budget request and operationsplan, including preparing budgetary performance reportsand monitoring the budget for possible problems. Thissection also verifies and processes invoices and expense

reports for payment; coordinates and maintains payrollrecords; bills utilities for inspection and supervision fees;maintains records of fees collected; notifies the LegalDivision of any delinquent companies; and conducts spe-cial studies or assignments as requested by the Commis-sion. The section maintains office supplies for the Com-mission. It develops and administers internal accountingprocedures and administers a centralized purchasing serv-ice for approved materials, supplies, and equipment.

Motor Carrier SectionThe Motor Carrier Records Section is responsible for

preserving the records of transportation companies. Thisincludes maintaining a complex database and recordkeep-ing system on all motor carriers who are required to regis-ter with the Public Service Commission according to appli-cable state and federals laws and motor carrier rules andregulations of the Commission. Records retained by thissection include, but are not limited to, motor carrier appli-cations, vehicle identifications, transfers, name changes,transcripts, revocation and reinstatement orders, and insur-ance filings on both active and inactive motor carriers.

This section assigns docket numbers for all informalmotor carrier cases that come before the Public ServiceCommission and prepares revocation and reinstatementorders on motor carriers who failed to maintain properproof of insurance coverage as required by law. TheMotor Carrier Records Section provides copies of docu-ments and answers inquiries as requested by the generalpublic and other governmental agencies.

ACO Tracking DatabaseThe Public Service Commission implemented a new

automated system to improve the processing of tariffs,applications and other filings made with the Commission.In this new system, most filings are submitted electroni-cally via the PSC website. The Secretary’s office receivesseveral types of filings electronically. These include appli-cations for a Certificate of Public Convenience andNecessity, tariffs, interventions, arbitration requests, cer-tified document requests, complaints, Inspection andSupervision Fees, and various other agreements and con-tracts from regulated companies. Once the documents arein electronic format, the filings are routed to the appro-priate sections electronically for review and processing.

The new system has allowed the Commission Secre-tary to maintain the Commission hearing docket bookand hearing calendar electronically, assigning cases forhearing in collaboration with the Administrative LawJudges and Commissioners. The Secretary prepares theweekly hearing calendar for the Commissioners, staff, andpress representatives through the tracking system. TheSecretary also receives and records transcripts of testimo-ny in the tracking database.

The new tracking database allows for faster access to allfilings received by Public Service Commission.

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Administrative Division

Statement of OperationsFor the Fiscal Year Ending September 30, 2008 and 2009

PSC Operating Gas Pipeline Total TotalFund Safety Fund Sept. 30, 2009 Sept. 30, 2008

Comptroller’s Beg. Cash Balance: $ 2,962,988 $ 722,351 $ 3,685,339 $ 2,583,246Inspection & Supervision Fees -

Utility/Water Companies 10,928,898 – 10,928,898 9,937,429Telecommunications/Railroads 3,431,156 – 3,431,156 3,113,638

Motor Carrier Ins. & Reg. Fees 2,802,538 – 2,802,538 2,711,647Gas Service Line Fees – 522,509 522,509 522,670Federal Dept. of Transportation – 880,154 880,154 440,170Alabama Dept. of Transportation 50,000 – 50,000 50,000Miscellaneous Receipts 396,597 – 396,597 506,817

Total Receipts: 17,609,189 1,402,663 19,011,852 17,282,371Total Cash Available: 20,572,177 2,125,014 22,697,191 19,865,617

Disbursement of Encumbrances:Personnel Costs – – – –Employee Benefits 11,722 – 11,722 1,625Travel– In State 7,388 5,205 12,593 11,951Travel– Out of State 1,290 3,090 4,380 3,605Repairs & Maintenance 535 – 535 562Rentals & Leases 10,174 1,822 11,996 4,877Utilities & Communications 12,995 897 13,892 23,953Professional Services 8,761 2,484 11,245 21,795Supplies & Operating Expenses 17,229 176 17,405 62,549Transportation Equipment Operations 16,620 7,207 23,827 9,718Grants and Benefits – – – –Transportation Equipment Purchases 100,431 – 100,431 –Other Equipment Purchases 3,609 – 3,609 –Transfer to State General Fund 100 – – – 955,750

Total Encumbrances: 190,754 20,881 211,635 1,096,385

Disbursement of Operating Costs:Personnel Costs 6,281,539 727,097 7,008,636 6,743,989Employee Benefits 2,043,910 236,094 2,280,004 2,142,022Travel– In State 58,106 48,865 106,971 125,675Travel– Out of State 33,267 21,520 54,787 86,655Repairs & Maintenance 10,064 194 10,258 6,895Rentals & Leases 966,384 37,234 1,003,618 934,748Utilities & Communications 147,343 19,235 166,578 187,159Professional Services 136,951 12,992 149,943 227,362Supplies & Operating Expenses 283,135 31,242 314,377 349,868Transportation Equipment Operations 57,375 22,624 79,999 108,427Grants and Benefits – – – 5,000Transportation Equipment Purchases – – – 289,283Other Equipment Purchases 38,421 8,723 47,144 53,799

Total Operating Costs: 10,056,495 1,165,820 11,222,315 11,260,882Transfer to General Fund 3,823,000 – 3,823,000 3,823,000Transfer to General Fund: Prior year cash 2,074,599 – 2,074,599 –

Total Disbursements & Transfers: 16,144,848 1,186,701 17,331,549 16,180,267Comptroller’s Cash Balance, Ending: 4,427,329 938,313 5,365,642 3,685,340Purchase Orders 22,636 2,313 24,949 149,987Unencumbered Cash Balance, Ending (1) $ 4,404,693 $ 936,000 $ 5,340,693 $ 3,535,353

(1) PSC is authorized by statute to carry over $600,000 each fiscal year plus $80,328 court settlement in fiscal years 2008and 2009 for Fund 326 and the unencumbered cash balance for Fund 325. At the end of FY-2009 Fund 326 wasallowed to carryover all monies into FY-2010.

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Advisory Staff

The Advisory Staff touches almost all aspects of theCommission, but the primary role the division plays isto provide the Commissioners with relevant informa-tion and alternatives related to regulatory issuesbrought before the PSC. Here is a detailed descriptionof the activities of each section of Advisory:

ANALYSTSElectricity Advisor

The Electricity Advisor makes recommendationsregarding a variety of regulatory accounting and ener-gy-related issues impacting Alabama Power Company’sability to maintain rate stability, provide reliable serv-ice, and comply with orders issued by the AlabamaPublic Service Commission.

A highly regulated utility such as Alabama PowerCompany is afforded special regulatory accountingtreatment for certain transactions that result in a Pub-lic Service Commission authorization to recognizeaccounting transactions as regulatory assets or liabili-ties as opposed to accounting for such transactions inaccordance with basic accounting principles. Such reg-ulatory accounting cost and revenue recognition treat-ments allowed under generally accepted accountingstandards is a basic regulatory option employed by theAlabama Public Service Commission to prevent unsta-ble rate fluctuations and consequently, maintain sus-tainable electric rates for all of Alabama Power Com-pany’s customer rate categories.

As a Certified Government Financial Manager(CGFM) and a Certified Public Accountant (CPA) theElectricity Advisor has the special project of designingthe audit procedures to monitor Alabama Power Com-pany’s compliance with applicable laws, regulations,PSC orders and/or directives as such requirements per-tain to special regulatory accounting in the context ofthe objectives and components of internal controldescribed in Internal Control – Integrated FrameworkThe COSO Report, published by the Committee of

Sponsoring Organizations of the Treadway Commis-sion (on Fraudulent Financial Reporting).

Special projects are assigned to the ElectricityAdvisor periodically during the year. One such projectwas the evaluation, as viable option for ratepayers, ofan innovative approach proposed by Alabama PowerCompany to meet its projected RSE (Rate Stabiliza-tion and Equalization) Revenue requirement by imple-menting proposed base charges (Revenue Enhance-ments) and cost cutting measures without executing amore costly RSE adjustment required under the RateRSE program.

Alabama Power Company’s RSE performance isreviewed on a monthly basis. The review includes mon-itoring Alabama Power Company’s allowed retailreturn on common equity, the forecasted retail returnon common equity for the calendar year, and the actu-al year-to-date retail return on common equity.Because hydro generation has such a significant impacton energy cost, hydro generation is review monthlywhen analyzing the Energy Cost Recovery Rate Factor(Rate ECR).

The Energy Cost Recovery Rate Factor and Fore-cast of the Company’s Energy Cost Recovery are ana-lyzed on a monthly basis. Rate ECR provides for therecovery by Alabama Power Company of definedenergy costs using an ECR Factor derived pursuantto the Rate ECR and applied to all of AlabamaPower Company’s retail rate schedules. Energy costsconsist primarily of the cost of natural gas, fossil fuel,nuclear fuel, emission allowances, and purchasedpower contracts.

The Natural Gas Hedge Program is a financial/con-tractual long-term approach to energy cost savings.The Natural Gas Hedge Program is reviewed monthly,but with a long-term prospective in conjunction withAlabama Power Company’s five year integratedresource planning model.

The Electricity Advisor reviews on an ongoing basisAlabama Power Company’s pricing structure in theCompany’s rates and rate riders, and the reasonable-ness of contracts involving the purchase and sale ofenergy-related resources. Significant financing arrange-ments involving debt and equity for capital improve-ments and operating cash flow needs of the Companyare reviewed whenever such requests are submitted tothe Public Service Commission for approval.

Natural Gas Advisor

The Alabama Public Service Commission has 12natural gas companies and one oil pipeline under itsjurisdiction. The Natural Gas Advisor works independ-

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ently of the Commission’s other divisions to analyzenatural gas industry issues. This gives the Commission-ers a separate recommendation for their consideration.

The Natural Gas Advisor forms recommendationsby researching the industry and utilizing this knowledgeto study natural gas issues. Because recommendationsare independent from the Commission’s other divi-sions, the resulting financial analyses, operationalreviews and recommendations can be used by the Com-mission to make the most informed judgments for thebenefit of Alabamians.

Specifically, the Advisor reviews ratemakingmethodologies, gas supply contracts, accounting mat-ters, operational issues, municipal acquisitions andother filings made with the Commission.

Monthly, the Natural Gas Advisor monitors theRate Stabilization and Equalization (RSE) and relatedprograms for Alabama Gas Corporation (Alagasco)and Mobile Gas Service Corporation (Mobile Gas).Each month this section monitors the books andrecords of Alagasco and Mobile Gas to determine thereturn on average common equity for the precedingtwelve-month period and reports the financial andoperational results of the previous month, the returnon average common equity, to the Commission.

Also, included in these reports are graphical sum-maries of Alagasco’s and Mobile Gas’ recent operatinghistories.

An important project addressed in FY09 was therenewal of the RSE rate methodology for Mobile Gas.

Telecommunications/Special Projects Advisor

The Telecommunications/Special Projects Advisorhas two specific responsibilities within the AdvisoryStaff. The first is to provide verifiable, independent rec-ommendations to the Director of the Advisory Staffand to the Commissioners on all matters relating totelecommunications companies that impact the citizensof our state. These companies include incumbent andcompetitive local exchange carriers, long distance com-panies, Voice Over Internet providers (VoIP), and cel-lular providers. To accomplish this, the Advisor reviewsall telecommunications filings made to the Commissionto ensure these filings comply with the established poli-cies of the Commission; works closely with the Adviso-ry Division’s Director, Telecommunications Divisionpersonnel and the Legal Division, participating in thedevelopment of the telecommunications policies andprocedures to be implemented by the Commission; andmaintains a working knowledge of non-jurisdictionalyet highly significant areas of telecommunications serv-ice such as VoIP and cellular service.

The second function of this Advisor is to manageSpecial Projects assignments from the Advisory Direc-tor and the Commissioners. These assignments coverany area or activity in which the Director or Commis-sioners request additional information or analysis.

Important projects addressed in FY09 were thecontinuing implementation of the TelecommunicationsReform Act of 2005, the most fundamental change inPublic Service Commission authority over jurisdiction-al telephone service since the passage of the Telecom-munications Act of 1996; the continuing application ofthe Alabama Telecommunications Regulation Plan oncustomers and jurisdictional companies; work onnumerous arbitrations/mediations that were theresponsibility of the PSC, and numerous informationrequests and customer complaints of interest to theAdvisory Director or to the Commissioners.

Advisory was also actively involved in the reviewand implementation of Universal Service Plans andFunding.

Legal Advisor

The Legal Advisor reviews dockets and issuesbefore the Commission for legal implications and pro-vides job-related legal advice and assistance to Adviso-ry Staff personnel, as well as other Commission offi-cials and employees. In order to properly perform hisassigned duties, the Legal Advisor monitors pendinglegislation and court opinions, as well as industrypublications. Duties include, but are not limited to,contract drafting and negotiation, legislative drafting,administrative proceedings, and the updating of vari-ous manuals and handbooks governing the conduct ofCommission activities. The Legal Advisor also partici-pates in state and federal legal proceedings, both in-state and out-of-state, in which the Commission has aninterest. As additional duties, the Legal Advisor isactively involved in Commission personnel matters, aswell the Advisory budget, purchasing, and propertymanagement.

PSC Legislative Advisor

During the past year, the Advisory Division createda new section called PSC External Affairs. The Advi-sory staff’s PSC Legislative Advisor acts as liaisonbetween the PSC and the Alabama Legislature, as wellas other external organizations.

The PSC Legislative Advisor contacts and conferswith members of the legislature and other holders ofpublic office to educate them on important regulatory

Advisory Staff

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issues that affect the PSC and Alabama customers theCommission regulates.

Specifically, the PSC Legislative Advisor studiesproposed legislation to determine possible effect andinterest to the PSC. The Advisor confers with legisla-tors and PSC members to emphasize supposed weak-nesses or merits of specific bills. The Advisor alsoplans and coordinates meetings between PSC membersand elected officials to discuss legislative issues andproposals and allow officials to respond to constituents’concerns.

The PSC Legislative Advisor works with all PSCDivisions to coordinate legislative efforts and preparesthe Bill Status Report to keep the Commissioninformed of all current legislative activities. The Advi-sor monitors all legislation for any possible issuesrequiring legislative action. The Advisor also attendsbudget hearings and all pertinent legislative meetingsthroughout the legislative sessions.

In this year’s Legislative session, there were sever-al bills, with the PSC Legislative Advisor’s involvement,which affect the PSC’s interests that received passage.They are as follows:

SB136 – Penalties; Failure to secure load on trucksHB220 – State employees layoffs; conditionsHB185 – Establish Green Fleet Review CommitteeHB186 – Ethyl Alcohol; elimination of certain

regulationsSB373 – PSC: Delete Regulation on Business

ServiceHB543 – Onsite Wastewater Board; Definition of

terms and amendmentsHB746 – General Fund Appropriation Bill

Information System Services

The PSC’s Information Systems Services sectionprovides a variety of information technology services tothe agency. The section operates a local area networkwhich links the Commission’s divisions electronically tofacilitate sharing data and information. The depart-ment operates a bank of servers, including the primaryfile server where users store information in secure fold-ers that are backed up daily. This section is responsiblefor running virus protection software and followingbest practices procedures for information security anddisaster preparedness.

There are several systems in place for consumerand users’ needs. These include small-scale databaseapplications tracking regulated motor carrier registra-tions, consumer complaints, information technology

help desk requests, and some telecommunicationsdata. The section also coordinates and oversees themaintenance of the agency’s document imaging systemwith an outside vendor.

IT staff establishes e-mail and network useraccounts and provides help desk support for hardwareand software issues experienced by end users. Customapplications are also designed, primarily usingMicrosoft Access. Information Systems created andupdates the PSC’s Web site which offers the function-ality of allowing consumers to file complaints online.Commission orders and filings in PSC proceedings canalso be accessed through the agency’s site.

Federal Affairs

The Federal Affairs section monitors and informs theCommission of various federal activities affecting utilityregulation in Alabama. When necessary, the staff alsointervenes and files comments in federal proceedings.

In an effort to remain informed of these matters,the Federal Affairs section attends various NARUC(National Association of Regulatory Utility Commis-sions) meetings and represents the Commission on var-ious committees/subcommittees, including theNARUC Staff Subcommittee on Telecommunications,Staff Subcommittee on Nuclear Issues-Waste Disposaland Staff Subcommittee on Electricity. This sectionalso monitors the activities of various federal agenciesand other industry groups such as: the Federal Com-munications Commission (FCC), the Federal EnergyRegulatory Commission (FERC), the EnvironmentalProtection Agency (EPA), the Surface TransportationBoard (STB), the Nuclear Regulatory Commission(NRC), the Department of Transportation (DOT), theDepartment of Energy (DOE), the Federal RailwayAdministration (FRA), and the Securities andExchange Commission (SEC).

Federal Affairs also reviews federal court appealsand decisions on utility and telecommunications issuesand, if appropriate, makes recommendations to the

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Commission regarding appropriate actions to be taken.In addition, this section reviews proposed federal legis-lation affecting Alabama utilities and telecommunica-tions providers and prepares summary documentationfor the Commission’s review as needed. The FederalAffairs Section also monitors and reports to the Com-mission the various positions taken by other state com-missions and NARUC on issues affecting utility regula-tion in Alabama.

Monitoring and informing the Commission of vari-ous state legislation/activities is another function ofFederal Affairs. In doing so, the section assists in draft-ing legislation and follows its progress throughout thecurrent legislative session. In order to remaininformed, Federal Affairs serves as a member of thePermanent Joint Legislative Committee on Energy,created by the 2007 Alabama Legislature to develop astate policy on energy. Since that time, Federal Affairshas participated as a member of the standing subcom-mittees of the full Committee as it attempts to craft leg-islation to accomplish this goal. At times, FederalAffairs staff members are called upon to testify on pro-posed bills at state legislative committee hearings. Fed-eral Affairs also acts as the PSC’s legislative liaisonwith the Governor’s office.

During this past year, Federal Affairs monitorednumerous energy and telecommunications regulatorytopics/issues and assisted with the development ofappropriate Commission action as needed. Some ofthe more important issues from this past year are sum-marized below:

• Followed FERC’s actions as it continued to issuenumerous dockets, clarifications, policy statements andorganize various technical conferences and formstate/federal joint boards in reaction to their requiredactions under the Energy Policy Act of 2005 and theirmandates related to transmission siting.

• Assisted Energy and Legal Divisions in develop-ing an appropriate process to meet its obligations asprovided for in the Energy Independence and SecurityAct of 2007. The section reviewed all comments filedunder the Commission’s docket in this proceeding anddiscussed with Legal Division.

• Federal Affairs, with assistance from EnergyDivision, prepared comments for the Commission’sparticipation in the Department of Energy’s Transmis-sion Workshop and filed formal comments with DOEregarding its 2009 Transmission Congestion Study.

• Monitored energy related legislation – particu-larly attempts to mandate renewable portfolio stan-dards and carbon cap and trade programs.

• Monitored FERC’s actions regarding the topicof regional electric transmission organizations.

• Participated in the process and evaluated theissues surrounding the development of an area codeoverlay for area code 256 in north Alabama.

Personnel

The Personnel Section maintains the records ofCommission employees. One of its primary functions isto identify and implement changes in payroll expendi-tures that are incurred by appointments, resignations,promotions, terminations, etc., through the use of theGovernment Human Resource System, an automatedpayroll/personnel system. Personnel oversees the in-processing and orientation of new employees and theout-processing of employees who separate from serviceat the Commission. As the source for state and depart-mental rules, regulations and benefits that apply toemployees, Personnel provides information throughthe agency handbook, the State Personnel ProceduresManual, and various manuals provided by the StatePersonnel Training Division. Requests to fill vacanciesin the Commission are processed by Personnel with thecoordination of division directors.

The personnel manager acts as the liaison with theState Personnel Department (SPD), checking to seethat personnel transactions are in line with state lawsand SPD rules and regulations.

The personnel manager also represents the Com-mission at meetings of the State Personnel Board andthe Council of Personnel Administrators.

Personnel develops, or assists in the development,and updates of job descriptions on employees. Thisensures appropriate classifications are selected for aparticular job and may also be used as an indicator forchange in classification and pay.

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Public Affairs

The Public Affairs Section handles the public infor-mation duties of the Commission. This entails distrib-uting information to the news media, the public andother state, governmental and regulatory agencies.

The coordinator also produces informational mate-rials such as the PSC’s Annual Report, brochures, pres-entation aids, other graphic materials, plus, the coordi-nator provides information to be posted to the PSC’sweb site. In addition, the coordinator attends Commis-sion hearings and meetings and monitors media cover-age of the PSC.

Consumer Services Section

The Consumer Services Section serves as the com-plaint resolution center of the Commission. This Sec-tion helps consumers resolve disputes with the utility aswell as answer general utility questions about regulatedutilities. Staff in this section consult with the variousutility service providers, the consumer and the variousdivisions within the Commission to resolve disputes,clarify action taken by the utility and respond to gener-al and often complex inquiries made regarding a utilityand the Commission’s rules. The Consumer ServicesSection provides education to consumers.

Consumer Services is staffed by six professionals,the majority of whom have utility-related work experi-ence. There are three Consumer Service Specialistswho have the responsibility to gather information fromthe consumer, document the issue, research, andrespond to the consumer. Each Specialist has knowl-edge of the Commission’s rules, the utility-specificrules and industry practices necessary to address com-plaints and inquiries. Two support persons in thisworkgroup manage the day-to-day operations for thestaff. These employees are responsible for screeningincoming calls, processing mail, maintaining complaintfiles, managing the complaint database and respondingto general requests for information. The group man-ager provides advice to staff on complex issues, devel-ops talking points to address current issues, arrangestraining sessions and initiates rule changes as neces-sary. As the pulse of the Public Service Commission,this section handles in excess of 1,000 complaints andover 3,000 inquiries annually.

This workgroup is generally the first point ofcontact for consumers to the Commission. Generalinquiries and complaints are reported to the Commis-

sion by telephone, electronic filing, letters and faxtransmission. This office also handles consumer issuesreferred from the Governor’s Office, U.S. Congress,the Federal Communications Commission, AlabamaAttorney General’s Office and the Alabama State Leg-islature. The staff has the responsibility of respondingto general questions about a utility’s practices or aCommission rule which is generally handled as aninquiry. A dispute involving a billing or a service-relat-ed matter is held as a complaint and requires informa-tion about the matter from the utility which is reviewedby the staff person who makes a determination aboutthe validity of the utility’s action and finally a decisionis communicated to the consumer supporting theaction taken or recommending a course of action toresolve the dispute. Consumer Services additionallyserves as a sounding board to record consumers’ opin-ions and observations in response to rate cases. Inves-tigation of complex complaints often requires coordi-nation between the utility, Commission staff and theconsumer. Written records are created to documentinquiries and complaints referred to the ConsumerServices Section.

The written records created result in a series ofreports each month that are used to track and monitorthe utilities’ activities and compliance. The writtencomplaint and inquiry records that are created becomeare summarized into a report that becomes an officialrecord of the Commission. This report summarizes thecomplaints taken during the month by the utility’sname and the nature of the complaint. It is alsoreviewed for trends and patterns which are discussedwith the utilities in an effort to improve its serviceofferings and to suggest changes in its practices or poli-cies. This information is also considered when a utilitymakes a request to expand its service offerings. Utili-ties also rely on this information to gauge customerbilling and service issues. This report is a snapshot ofissues the utilities and Consumer Services are experi-encing in a given month. Another report that is creat-ed each month centers on a specific type of telecommu-nications complaint called slamming which is trackedby the Federal Communications Commission. Thisagency collects data about telephone service providers’that change a consumer’s service without permission orauthorization. This report details the company thatmade the unauthorized change and the number of inci-dences per company.

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This section also fields Do Not Callqueries. The Alabama State Legislatureauthorized the Commission to establish aDo Not Call Registry. This registry is nowa collaborative effort between the FederalCommunications Commission and theCommission. Consumers that contact theCommission receive advice on how to reg-ister their phone numbers. This data ismaintained by the Federal Trade Commis-sion, and complaints are registeredthrough a federal collection site.

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The Energy Division oversees the operations of allinvestor-owned electric, natural gas and water utilitiesand wastewater management entities serving con-sumers within the state of Alabama. This responsibili-

ty includes monitoring the rate stabilization and equal-ization (RSE) programs used by the Alabama PublicService Commission (“the Commission”) to regulateAlabama Power Company (APCo), Alabama Gas Cor-poration (Alagasco) and Mobile Gas Service Corpora-tion (Mobile Gas). The safety of all natural gas andhazardous liquid pipeline systems in Alabama is includ-ed within the Energy Division’s scope of responsibilityunder the Gas Pipeline Safety section’s purview. Addi-tionally, the Special Projects section addresses andcoordinates issues that are non-jurisdictional or con-cern multiple energy commodities.

The subsequent paragraphs discuss each section’ssignificant regulatory policies, responsibilities andmajor activities that occurred during fiscal year 2009.

Electricity SectionThe Electricity Section is primarily responsible for

the regulatory oversight of Alabama Power Company(“the Company” or “APCo”). This includes financialanalyses, economic evaluations, auditing, and statisticaldata assimilation. In addition, the staff performs man-agement and technical inquiries to remain informed as

to the manner and methods in which APCo’s businessis conducted.

This section also evaluates certain aspects ofSouthern Electric Generating Company (SEGCo),jointly owned by Alabama Power Company and Geor-gia Power Company, and the Alabama Municipal Elec-tric Authority (AMEA).

ALABAMA POWER COMPANYRate Stabilization and Equalization (RSE)

RSE was designed to lessen the impact, frequencyand size of retail rate increase requests by permittingthe Company, through the operation of a rate that wasfiled and approved, to adjust its charges more readily toachieve the rate of return allowed by the rate order ofthe Commission. By provisions in the rate, the chargesare increased if projections for the upcoming year showthat the designated rate of return range will not be metand are decreased if such projections show that thedesignated rate of return range will be exceeded.Other provisions limit the impact of any one adjust-ment (as well as the impact of any consecutive increas-es), and also test whether actual results exceeded theequity return range.

Beginning December 1, 2006, and by December 1of each year thereafter, the Company’s rate of returnon projected average common equity (“RRCE”), sepa-rated to retail electric service, shall be computed annu-ally for the upcoming twelve-month period endingDecember 31 (such twelve-month period being the“rate year”). The RRCE shall be computed on thebasis of cost estimates and budgets prepared by theCompany in the ordinary course of its business and in amanner consistent with the Uniform System ofAccounts. If the resulting RRCE is less than 13.0% ormore than 14.5% (13.0% – 14.5% being “the equityreturn range”), then monthly bills under the respectiverate schedules subject to Rate RSE shall be adjusted byamounts per kilowatt-hour (kWh) necessary, in total,

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to restore the RRCE to 13.75% (the “adjusting point”in the equity return range).

The Electricity Section examined the Company’sbooks and records on a monthly basis to determine theRRCE for the current 12 month period. The sectionstaff prepared a summary report of this information forpresentation at each monthly Commission meeting. Asof September 30, 2009, the re-projected Retail Returnon Average Common Equity for the twelve-monthperiod ending December 2009 was 12.02%.

Energy Cost Recovery (ECR)

Rate ECR is the rate approved by the Commissionto recover retail customers’ portion of energy cost. Ini-tially established at 17.88 mills per kWh, the rate hasbeen adjusted for temporary periods of time to reducethe over/under collections accumulated in the energycost recovery account. The Electricity Section pre-pared a summary report for the monthly Commissionmeetings reflecting the status of the Company’s energycosts recovery, the accumulated over/under collections,and the ECR projection for December 31 of the cur-rent year.

As of August 31, 2008, the under-recovered energycost was $257,544,178 and had been steadily risingsince May 2008. In addition, the Company estimatedthat by October 2008, the cumulative under-recoverywas projected to exceed $361,000,000 and, by October2009, the under-recovered energy cost was projected tobe approximately $1,000,000,000. The escalating costwas primarily attributable to the increased costs of coaland natural gas.

Therefore, in August 2008, prior to the expirationof the thirty-month interim ECR factor of 31.00 mills,Alabama Power Company filed with the Commission aproposed revision to the Rate ECR Factor (ECRF).The Company proposed an interim factor of 46.62 millsper kWh for a 12-month period and a post interim fac-tor of 59.10 mills to be effective thereafter. A specialhearing was held on September 23, 2008, whereby ajoint recommendation was made by Alabama Powerand all Interveners. The joint recommendation includ-ed an interim 24-month factor of 39.83 with an effectivedate for customer’s billings beginning on October 9,2008. The post- interim ECR factor would remain at59.10 mills per kWh. At its October meeting, the Com-mission approved the joint recommendation.

The cost of natural gas has declined dramaticallysince the summer of 2008 resulting in lower fuel costsfor the Company. The Company’s coal costs havedeclined since the beginning of 2009. Lower fuel costshave attributed to a $54,771,491 over-recovery as ofSeptember 30, 2009. Continued declines in fuel costsmay result in a reduction in the ECR factor in the nearfuture.

Certificated New Plant (CNP)

Rate CNP – Part A was originally approved in 1982in conjunction with Rate RSE under Dockets 18117and 18416. The original rate provided for the certifica-tion of generating facilities and the recovery of therelated capital cost for such facilities. During FY-2009,Alabama Power did not file any applications for a Cer-tificate of Public Convenience and Necessity (CPCN)related to generating facilities.

In April 2009, Alabama Power was granted aCPCN to extend an existing purchased power agree-ment (PPA) with Calhoun Power Company for an addi-tional eleven (11) years through December 31, 2022.The Calhoun PPA was initially certified at approxi-mately 630 MW of combustion turbine capacity. Withthis recertification, Alabama Power’s entitlement willbe reduced by approximately 50 percent.

Flexible Contract Rate (FCR)

By Order, dated April 1, 1996, the Commissionapproved the Company’s petition for a new FlexibleContract Rate (Rate FCR). Rate FCR was designed tobe applicable only to commercial and industrial cus-tomers who have a need for flexibility in rates and/orservice and who have an account for no less than one-megawatt of electricity. For contracts with commercialand industrial customers utilizing this rate, an econom-ic evaluation must be made in accordance with meth-ods accepted by the Commission. The economic eval-uation must prove that the pricing under each contractwill promote a positive benefit to all ratepayers overthe term of the contract.

As of September 30, 2009, the Commission staffevaluated six (6) electric service contracts that werefiled pursuant to Rate FCR. In addition, the staff per-formed a post-contract review of five (5) electricservice agreements.

Natural Disaster Reserve (NDR)

By Order, dated October 3, 1994, the Commissiongranted Alabama Power Company authority to estab-lish a Natural Disaster Reserve of $32 million againstwhich extraordinary operation and maintenanceexpense, resulting from natural disasters, would becharged. The reserve was established to help mitigatethe disruptive effects of significant natural disasters inthe company’s service territory.

However, the Natural Disaster Reserve (NDR) wassubstantially depleted in October 1995, due to Hurri-cane Opal. Under the monthly accruals established inthe original order, it would have taken more than eight

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years to restore the reserve to the authorized level of$32 million.

Therefore, in December 1995, the Commissionauthorized APCo to make additional accruals, withoutfurther order by the Commission, above the normalmonthly amount of $250,000 whenever the balance inthe Natural Disaster Reserve declines below $22.4 mil-lion. Accruals above normal monthly amounts couldcontinue until the reserve was restored to $32 millionand must be reported to the Commission, in writing.

On September 16, 2004, Hurricane Ivan madelandfall on Alabama’s Gulf Coast and continued onthrough the state, resulting in significant damage to theCompany’s transmission and distribution equipmentand facilities. The total O&M related expenses were$57,565,583. This amount was in excess of the reservebalance and therefore prompted the Company torequest that the Commission allow the reserve to carrya negative balance. The Commission approved thisrequest on October 19, 2004, effectively deferring costrecovery through the normal accrual method, addition-al accruals, and/or by other accounting treatments. InJuly and August 2005, the Company’s service territorywas impacted by Hurricanes Dennis and Katrina, onceagain causing significant damage to the transmissionand distribution system. Together, the O&M expensesrelated to these two major storms, as well as othersmall storms, were estimated to be approximately $80million. As a result, on September 30, 2005, the NDRhad a negative balance of $69,278,301.

Because of the significant negative balance, thePSC approved Rate Rider NDR in December 2005,and increased the authorized disaster reserve balancefrom $32 million to $75 million, effective January 2006.Rate Rider NDR was designed to address the negativebalance in the Natural Disaster Reserve and to re-establish a reserve balance sufficient to address poten-tial costs associated with future natural disasters. Inorder to accomplish this, Rate Rider NDR added asmall monthly charge to each account served under theCompany’s retail rate schedules. As a result of RateRider NDR, the negative balance in the reserve wasfully recovered by June 30, 2007. Storm restorationcosts are charged against the Natural Disaster Reserve.As of September 30, 2009, the NDR balance was$34,008,557.

Other Activities:New and Revised Tariffs

In January 2009, the Commission approved theCompany’s proposal for Rate Rider DLC (Direct Load

Control). This is an optional rate rider for APCo’s cus-tomers who participate in a residential demand-sideprogram known as “Centsable Switch.” Under thisprogram, customers allow the Company to curtail theircentral air conditioning or heat pump usage duringpeak demand periods. Customers on Rate Rider DLCreceive a $20 annual credit for participation in the pro-gram. This new rate (Docket U-4917) was effectivewith the February 2009 billings, and thereafter.

On February 27, 2009, the Commission approvedrevisions to APCo’s Rules and Regulations for ElectricService. There were no major changes; however, thegoal was to clarify the existing Rules and Regulations.

In April 2009, the Commission approved a petitionfiled by the Company for the 30th revision to Rate PAEwhich became effective with the June 1, 2009 billings.In March, the charges and payments under this ratewere revised to reflect updated costs and avoided costsfor the Company and are based on 2010 forecasteddata and 2009 actual costs. Every year, the Companyfiles a petition based on the updated avoided costs forRate PAE as required in Docket 18005.

Federal Issues

The Electricity Section staff monitors various Fed-eral issues that may impact the electric industry. Thisincludes participating in teleconferences, conductingresearch, and attending meetings with the FederalEnergy Regulatory Commission (FERC), the NationalAssociation of Regulatory Utility Commissions(NARUC), and other electric industry organizations.

During FY-2009, the staff monitored several Fed-eral matters that impacted the Commission: 1) Adop-tion of policy for development of Smart Grid ; 2) Needfor Demand Response in Organized Competitive Mar-kets; 3) Mandatory Reliability Standards for the Bulk-Power System; and 4) Electric Transmission SitingRule.

In September 2006, the Commission opened threedockets for consideration of Sections 1251 (Docket30066), 1252 (Docket 30067), and 1254 (Docket 30068)of the Energy Policy Act of 2005 (EPAct 2005). Dock-et 30067, Section standards were considered met andDocket 30068, Section 1254 standards were consideredin conjunction with Docket 30066. In Docket 30066,the Commission determined that the standards to beconsidered in Sections 1251 and 1254 had not beenmet. Therefore, the standards under both sectionswere set for further review, with a schedule of proceed-ings to be established. By order of the Commission onNovember 4, 2009, Section 1251 (net metering) was not

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adopted while Section 1254 (interconnection) standardwas adopted. In addition, the Commission encouragedAPCo to consider adopting a net metering rate for cus-tomer-owned solar generation.

Financing

The Electricity Section staff reviews all financingpetitions filed by Alabama Power Company and South-ern Electric Generating Company (SEGCo). SEGCois a fossil-fueled generating facility located inWilsonville, Alabama, jointly owned by AlabamaPower and Georgia Power, in equal shares. These peti-tions are generally filed with the Commission torequest approval to engage in the issuance of securitiesor to assume obligations pursuant to other types ofdebt instruments. Upon analysis and evaluation, thestaff makes recommendations to the Commission per-taining to those petitions.

There were no financing petitions addressed duringFY-2009.

Auditing

The Electricity section’s auditor and analysts con-duct monthly analytical reviews and/or audits to testthe completeness and accuracy of financial statements,economic models and other data submitted by Alaba-ma Power Company.

For this activity, the staff’s monthly fuel audit isparticularly important because the Company’s energycosts are approximately 66 percent of total operationand maintenance (O&M) expense. During this month-ly audit, the accounting records for fuel purchases andburns are reviewed at the corporate office and at therespective generating facilities. Site audits for eachgenerating facility are performed on a rotating basis.

The staff also audited the annual filing of RateCNP-ECP (Environmental Compliance Plan). TheCommission required the Company to submit, as partof the modified Rate CNP, a detailed annual summaryreport of the Environmental Compliance Plan. Thissummary identifies the previous year’s environmentalexpenses incurred and projected expenses for upcomingyears. This information was reviewed thoroughly dur-ing the audit procedure. The staff performed two sepa-rate audits of this filing – one audit was of the filing itselfand the second audit was of the environmental compli-ance plan. During the audits, the staff 1) reviewed andverified the accuracy of amounts reported in the filing;2) ensured that the filing was in accordance with RateCNP; 3) compared and researched significant budgetvariances; 4) determined if reported expenses were

qualifying environmental expenses; and 5) requestedand reviewed additional information, as needed, for acomplete and thorough analysis of the filing.

In addition, the staff performed an annual compli-ance audit of the Rate CNP-PPA (Purchase PowerAgreement) filing. Other auditing responsibilitiesincluded testing of various accounts and activities totrace and verify reported revenues and expenses, toreview APCo’s compliance with the FERC UniformSystem of Accounts, and to investigate significant vari-ances identified during monthly monitoring and analyt-ical processes. Also, the staff performed randombilling audits to test the Company’s compliance withapproved tariffs.

Engineering

The section’s engineering staff performs monthlysite visits, investigates service quality issues, respondsto technical inquiries and works on special projects asassigned. From time to time, the engineering staff hasalso assisted with research regarding the application ofvarious environmental technologies such as: FGD Sys-tems; i.e. scrubbers, baghouses, selective catalyticreduction (SCRs), selective non-catalytic reduction(SNCRs), electrostatic precipitators (ESPs) and lownitrous oxide (NOx) burners. The staff also staysabreast of utility automation systems (AMR, AMI,SCADA, etc).

The engineering staff underwent significant staffreductions during FY-2009. Consequently, only tensite visits were made during the fiscal year. During thefirst half of the year, monthly site visits to utility plantfacilities and construction projects were performed toreview maintenance, repairs and operating (MRO)practices, infrastructure improvements, capital proj-ects, electric safety and construction standards andpower quality issues.

Power system maintenance, repairs and operatingactivities included performing routine duties whichkeep the system and/or equipment in good workingorder. Projects such as vegetation management, tur-bine inspection supervision, pole replacement adminis-tration and system study analysis are good examples ofproactive and preventative MRO programs.

Safety, reliability and power quality standards werereviewed and discussed with utility personnel. Operat-ing tests and reports were also reviewed.

Occasionally, the engineering staff participated intraining and educational activities relevant to the per-formance of its duties.

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There are 60 different power plants, local andregional offices on the annual visitation itinerary. Dur-ing field visits, the engineering staff discussed opera-tion and maintenance budgets and planning. Otherissues such as consumer complaints or environmentalcompliance issues were also explored. Routinelyscheduled visits to Alabama Power Company’s facilitiesare expected to resume with new personnel during thelatter half of FY-2010.

ALABAMA MUNICIPAL ELECTRIC AUTHORITY

Pursuant to the provisions of Section 11-50A-25,Code of Alabama, 1975, as amended, the Commissionreviews and approves certain activities of the AlabamaMunicipal Electric Authority (AMEA). AMEA hasnot come before the Commission on any matter sinceSeptember 8, 2008.

Natural Gas SectionThe Natural Gas section is responsible for the reg-

ulation of all publicly-owned natural gas distribution,transportation, storage, and intrastate natural gas andoil pipelines in Alabama, and the monitoring of theRate Stabilization and Equalization and related pro-grams for Alabama Gas Corporation and Mobile GasService Corporation.

Rate Stabilization and Equalization (RSE)

The Commission regulates the rates for the twolargest gas utilities in the state under a Rate Stabiliza-tion and Equalization (RSE) plan. RSE has been inuse for more than 25 years as a method of keeping ratesas low as possible while assuring quality service.

ALABAMA GAS CORPORATION

Each month, this section examined the books andrecords of Alabama Gas Corporation (Alagasco),determined the return on average common equity forthe preceding 12-month period and reported the finan-cial and operational results of the previous month,including the return on average common equity, to theCommission. It also graphically summarized Alagas-co’s recent operating history. Under the RSE plan,the only time Alagasco can increase its base rates isDecember 1. If the projected return, based on thebudget approved by the utility’s board of directors, isless than 13.15 percent, then rates are increased onDecember 1 to bring the return at the end of the rateyear to 13.4 percent. If the projected return is morethan 13.65 percent, rates are decreased to bring the

return to 13.4 percent. If the projected return isbetween 13.15 and 13.65 percent, inclusive, no adjust-ment is made. Subsequent points of test, based on theprojected return at September 30, can yield onlydecreases or no change, effective April 1, July 1, andOctober 1. The Natural Gas section evaluated fourRSE filings by Alagasco during FY-2009.

Effective Date Increase (Decrease)• December 1, 2008 . . . . . . . . . . $24,736,538• April 1, 2009. . . . . . . . . . . . . . . . . . . . . . . . 0• July 1, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . 0• October 1, 2009 . . . . . . . . . . . . . . . . . . . . . 0

Alagasco also has an incentive program, the CostControl Measure, under which it must keep growth inoperation and maintenance expenses below a specifiedrange, or face penalties. The utility has a temperatureadjustment that tracks the effect of abnormally high orlow temperatures on the recovery of non-gas costs.The section monitored both of these programs toensure that they were conducted in accordance withthe approved tariff.

MOBILE GAS SERVICE CORPORATIONEach month, this section examined the books and

records of Mobile Gas Service Corporation (MobileGas), determined the return on average common equi-ty for the preceding 12-month period and reported thefinancial and operational results of the previous month,including the return on average common equity, to theCommission.

Under the RSE plan, the only time Mobile Gas canincrease its base rates is December 1. If the projectedreturn, based on the budget approved by the utility’sboard of directors, is less than 13.35 percent, rates areincreased December 1 to bring the return at the end ofthe rate year to 13.6 percent. If the projected return ismore than 13.85 percent, rates are decreased to bringthe return to 13.6 percent. If the projected return isbetween 13.35 and 13.85 percent, inclusive, no adjust-ment is made. Subsequent points of test, based on theprojected return at September 30, the end of MobileGas’ rate year, can yield only decreases or no change,effective April 1, July 1, and October 1. The NaturalGas section evaluated four RSE filings by Mobile Gasduring FY-2009.

Effective Date Increase (Decrease)• December 1, 2008 . . . . . . . . . . . $2,587,843• April 1, 2009. . . . . . . . . . . . . . . . . . . . . . . . 0• July 1, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . 0• October 1, 2009 . . . . . . . . . . . . . . . . . . . . . 0

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Mobile Gas also has an incentive program, the CostControl Measure, under which it must keep growth inoperation and maintenance expenses below a specifiedrange, or face penalties. The utility has a temperatureadjustment that tracks the effects of abnormally high orlow temperatures on the recovery of non-gas costs.The section monitored both of these programs toensure that they were conducted in accordance withthe approved tariff.

Local Distribution Companies

Another function of the Natural Gas section is tomaintain statistical data and keep the Commissioninformed on all facets of the gas utilities’ operations.Under that function, the following reports are pre-pared regularly:

• Revenue and Expense Analysis• Competitive Fuel Clause• Gas Supply/Purchased Gas Adjustment• Return on Average Common Equity

During FY-2009, the section was responsible forevaluating and making recommendations to the Com-mission on all matters pertaining to the following localdistribution companies:

• Alabama Gas Corp.

• Mobile Gas Service Corp.

• Wheeler Basin Natural Gas Co.

The section conducted its own investigationsrequiring examination of work papers, financial reportsand other records. The findings were documented andevaluated in written reports, and, when appropriate,meetings with officials of the respective gas companieswere held to discuss the results.

Alabama Gas Corporation

Regarding Alabama Gas Corporation, the section:

• Evaluated information concerning the necessity ofusing the balance in the Enhanced Stability Reserve;

• Participated in a Consumer Roundtable in Anniston,Alabama;

• Worked extensively with the company regarding itstemperature adjustment;

• Worked extensively with the company regarding itsgas purchases; and

• Worked extensively with the company on issuesrelated to its conversion of its customer accountingsoftware.

Mobile Gas Service Corporation

Regarding Mobile Gas Service Corporation, thesection:• Met with Mobile Gas to discuss customer service

issues;• Worked extensively with the company on issues relat-

ing to the company’s manufactured gas plant site;• Reviewed the Cast Iron Main Replacement Factor;• Had discussions with Mobile Gas to ascertain the

true effects, if any, on the regulated utility caused bythe acquisition of EnergySouth by Sempra Energy;and

• Participated in numerous meetings concerning therenewal of Mobile Gas’ RSE.

Wheeler Basin Natural Gas Company

Regarding Wheeler Basin Natural Gas Companythe section:• Reviewed Wheeler Basin’s request for a change in

rates and presented it to the Commission;• Met to discuss the Company’s financial condition,

potential customer growth, and community relations;and

• Reviewed Wheeler Basin’s meter conversionprogram.

Intrastate Storage and Pipeline Companies

During FY-2009, the Natural Gas section wasresponsible for evaluating and making recommenda-tions to the Commission on matters pertaining to thefollowing intrastate pipeline and storage companies:

• Bay Gas Storage Company, Ltd.• Enbridge Pipelines (Alabama Gathering) LLC• Enbridge Pipelines (Alabama Intrastate) LLC• Enbridge Pipelines (Bamagas Intrastate) LLC• Enbridge Pipelines (Tennessee River) LLC• Enterprise Alabama Intrastate LLC• Genesis Pipeline, LLC• Pine Energies, Inc.• Southern Gas Transmission Company• Southcross Alabama Gathering, LP

BAY GAS STORAGE COMPANY, LTD.

The section:• Had discussions with Bay Gas to ascertain the true

effects, if any, on the regulated utility caused by theacquisition of EnergySouth by Sempra Energy; and

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• Evaluated a financing issue related to Sempra Ener-gy’s buyout of EnergySouth and presented it to theCommission.

ENBRIDGE PIPELINES (ALABAMA GATHERING)

The section:• Met with Enbridge to discuss current operations.

GENESIS PIPELINE, LLC

The section:

• Discussed the correct method of reporting Supervi-sion and Inspection Fees and determined the appro-priate FERC form to use for Genesis’ statutory annu-al report.

SOUTHCROSS ALABAMA GATHERING, LP

The section:

• Met with the Legal Division and an attorney forCrosstex Alabama Gathering, LP, to discuss a changeof control and a name change to Southcross AlabamaGathering, LP. The Commission’s Legal Divisionconcluded that no formal Commission action wasrequired.

Support of Commission Offices

The section:

• Prepared letter responses and documents concerningnatural gas issues;

• Supplied information to a news reporter;

• Assisted in the financial review of Parker CreekWater Company, LLC; and

• Assisted the Consumer Services Section with variouscomplaints.

Interagency Activities

A section member:• Served as Vice Chairman of the Alabama Liquefied

Petroleum Gas Board as President Baxley’s designee;• Served as project manager for a joint National Asso-

ciation of Regulatory Utility Commissioners(NARUC) and the National Regulatory ResearchInstitute undertaking to update the Natural GasToolkit for commissions nationwide to use during the2008-09 heating season and beyond;

• Served as Vice Chair of the NARUC’s Staff Subcom-mittee on Gas;

• Presided over the Gas Staff Subcommittee at theNARUC Committee Meetings in New Orleans,Louisiana;

• Made a presentation to a combined session of theNARUC Gas and Consumer Affairs Committees;

• Participated in the NARUC Winter CommitteeMeetings in Washington, DC;

• Participated in a meeting of the Staff Subcommitteeon Critical Infrastructure;

• Chaired several NARUC Natural Gas Staff Subcom-mittee’s monthly conference calls;

• Provided accounting assistance for the NationalAssociation of Pipeline Safety Representatives con-ference in Alabama;

• Participated in the monthly conference calls to dis-cuss the FERC Southeastern Snapshot Report andother energy items of interest;

• Participated in American Gas Association andNARUC conference calls concerning Cost of CapitalIssues in Today’s Financial Markets;

• Prepared a response to NARUC addressing concernsregarding the American Recovery and ReinvestmentAct;

• Served on the NARUC/DOE LNG Partnership;• Attended the LNG Safety Research Information Day

at Sandia National Labs in Albuquerque, New Mexi-co;

• Participated in discussions with utilities and regula-tors concerning the possibility of and preparation fora pandemic influenza event;

• Met with representatives of the Kentucky PSC,Attorney General’s office, various consumer advo-cates, and four LDCs to discuss the history and oper-ation of RSE;

• Participated in a webcast with the National Oceanicand Atmospheric Administration;

• Served on the Alabama Department of Economicand Community Affairs’ (ADECA) WeatherizationAssistance Policy Advisory Council;

• Participated in the NARUC’s Accounting Subcom-mittee; and

• Served on and participated fully in the AlabamaDepartment of Public Health (ADPH) Bioterrorismand Public Health Preparedness Advisory Council.

Training Activities

Section representatives:• Attended two Alabama Public Awareness Coopera-

tive Training sessions regarding the “Call Before YouDig” program;

• Attended the Gas Pipeline Safety Seminar;• Attended the Simple Handy Risk Integrity Manage-

ment Program at Leak City; and• Attended several classes conducted by State Personnel.

Energy Division

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Miscellaneous

The section:• Collected and graphed data on regional LDCs;• Worked closely with the LDCs to monitor gas supply

activities to ensure the lowest possible cost gas wouldbe available for the winter heating season;

• Gathered information concerning US Amines’ plansto purchase and operate a hydrogen pipeline and for-warded information to the Commission’s Legal Divi-sion for a determination;

• Investigated, analyzed, and reported on approxi-mately 85-90 separate additional matters, includingspecial contracts, tariff changes, gas supply adjust-ment filings, purchased gas adjustment filings, newrates, certificates, and related matters; and

• Investigated requests for gas service, and respondedto a significant number of requests by the generalpublic for rate information, financial data, tariffsheets, and other information.

Gas Pipeline Safety SectionThe Gas Pipeline Safety section conducts and car-

ries out the inspection and monitoring activities of allgas and hazardous liquid pipeline systems operating inAlabama, including offshore in state waters. Theresponsibility was given to the Commission by theAlabama Legislature to assure and obtain compliancewith the Minimum Federal Gas Pipeline Safety Stan-dards adopted by the United States Department ofTransportation pursuant to the Natural Gas PipelineSafety Act of 1968.

The personnel charged with this responsibility mustmeet all the training requirements set forth by thePipeline and Hazardous Materials Safety Administra-tion (PHMSA). Over the course of the last two years,three new investigators and a new administrator joinedthis section. During the past year, these four personnelattended 15 resident courses and completed numerousWeb-Based Training (WBT) courses in an effort tobecome qualified to conduct gas and hazardous liquidsystem inspections. Several of the other investigatorsattended refresher and other courses to maintain theirqualifications.

The Gas Pipeline Safety section hosted the Nation-al Association of Pipeline Safety Representatives(NAPSR) Southern Region Conference at OrangeBeach in March 2009. This meeting gathered statepipeline safety representatives from Alabama, Geor-gia, Florida, South Carolina, North Carolina, Ken-tucky, Tennessee, Mississippi and the US territory ofPuerto Rico. Representatives from PHMSA were also

in attendance. The purpose of the meeting was toreview pending federal regulations pertaining topipeline safety.

At the end of FY-2009, the Commission regulated,for safety matters, 95 intrastate gas systems, three off-shore gas systems, 34 master meters, six on-shore haz-ardous liquid systems, one off-shore hazardous liquidsystem, one liquefied petroleum system, and five lique-fied natural gas systems.

The Gas Pipeline Safety section developed andpresented programs to promote safe operations by nat-ural gas transmission and distribution systems. Whena system was in noncompliance, immediate, correctiveaction was taken.

An important function of this section is accidentprevention. The section conducted safety seminarsaround the state, as well as fire schools and plastic pipequalification classes. A tabulation of the section’sactivities in FY-2009 is listed below:

InspectionsGas Pipeline Safety . . . . . . . . . . . . . . . . 1003*Enforcement Actions . . . . . . . . . . . . . . . . 37*Non-compliances. . . . . . . . . . . . . . . . . . . . 58*Non-compliances Corrected . . . . . . . . . 145*Construction Projects . . . . . . . . . . . . . . . 171*Safety Education Programs . . . . . . . . . . 128*Investigator Education . . . . . . . . . . . . 231.5*Pipeline Safety Incident Investigations. . . 5*

*These figures represent “person-days” that wereexpended in the inspection/education processes.

Water SectionThe Water section is responsible for regulating four

investor-owned water systems and four water utilitiesthat are incorporated outside of Alabama, but haveauthority to operate in Alabama. The jurisdictionalwater utilities are:

• Central Water Works, Inc.• East Lowndes Water Association• Hiwannee Water Association, Inc.• Integra Water Creola, LLC• Parker Creek Water Company, LLC• Plantation Water System• Tishomingo County Water District• Water Works, Inc.

The duties of the Water section include inspectingthe facilities, reviewing the financial books and records,working with the Alabama Department of Environ-mental Management’s staff, assisting the PSC’s Con-sumer Services section in handling customer com-

Energy Division

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plaints, preparing reports as a result of inspections andvisits, and conducting compliance and accountingaudits.

The section reviewed and evaluated new water util-ities that sought authority to operate under the jurisdic-tion of the PSC. Integra Water Creola, LLC was grant-ed a Certificate of Public Convenience and Necessity(CPCN) to operate in south Alabama in January 2009.A new, private water system, Lake Mitchell WaterCompany, is reportedly under construction and shouldbe completed in early 2010.

The section participated in meetings, led byADECA’s Office of Water Resources, regarding thecontinuing study of two river basins in a dispute overwater needs for the city of Atlanta, Georgia. The tworiver basins include the Alabama, Coosa, Tallapoosaand Chattahoochee Rivers.

During FY-2009, the Commission received 80inquires and questions concerning water utility servicewith most of the calls concerning non-jurisdictionalcompanies.

Commission Action on Water Utilities in FY-2009:

Action ………………………………Order DateHiwannee Water AssociationRate Increase . . . . . . . . . . . December 29, 2008Integra Water Creola, LLCCPCN . . . . . . . . . . . . . . . . . . . . . January 7, 2009Parker Creek Water CompanyDismissal . . . . . . . . . . . . . . . . . . . . . July 7, 2009Water Works, Inc.Rate Increase . . . . . . . . . . . . . . . . . May 5, 2009

Special Projects SectionThis section assisted in the oversight of energy util-

ity compliance with Commission rules and regulations,as well as updated various sections of the rules, whenneeded. The Special Projects section provided directassistance to utility customers through telephone andpersonal communications.

The staff provided engineering and technical sup-port on special projects to other sections and Commis-sion divisions, as well as led in the performance ofmulti-discipline requests and issues.

This section was involved in an on-going project toassist the Alabama Department of Public Health(ADPH) with the evaluation of the financial viability ofWastewater Management Entities (MEs) pursuant to a2001 Alabama law. During FY-2009, the sectionreviewed and submitted comments on five wastewater

system applications and two certificate renewal appli-cations, all involving meetings and other communica-tions with applicants. The staff also assisted the ADPHwith general administrative matters related to theinteragency contractual arrangement.

On May 22, 2009, a new Alabama law took effectthat gave the Commission jurisdiction over these sameMEs as well as any new MEs and ended the interagencycontractual arrangement with ADPH. Pursuant to thenew law, two ME tariff revision petitions were submit-ted and, subsequently, suspended for 180 days. TheManagement Entities, with their Certificate of Finan-cial Viability docket numbers, that now fall under thejurisdiction of the Commission are:

• Alabama Wastewater Systems, Inc. – Docket 31181• Bio-Flow, Inc. – Docket 31182• Canaan Systems, Inc. – Docket 31183• Honeycomb Wastewater Management, LLC –

Docket 31184• Integra Watersound, LLC – Docket 31185• Southwest Water Alabama – Onsite System Services

– Docket 31186• Utility Management, LLC – Docket 31187

As a result of the new law, this section took the leadin formulating the Wastewater Management EntityRules (WW Rules) of the Alabama Public ServiceCommission which became effective on an interimbasis on August 31, 2009 in Docket 31164. The Orderin this docket also granted PSC Certificates of Finan-cial Viability to the seven existing wastewater manage-ment entities previously certified by ADPH and alsogave PSC approval of their ADPH-approved tariffs.The seven existing MEs were directed in this Order tosubmit compliance filings within 45 days of the Order.The Order resulted in a PSC Workshop which was heldon September 9, 2009, to introduce new and existingMEs to the APSC and the new WW Rules. This sec-tion actively participated in the workshop.

This section also gave assistance to other engineer-ing personnel within the division. This section made adiligent effort to stay abreast of the latest technologicaldevelopments in the electric, natural gas and water util-ity industries as well as relevant proceedings beforefederal regulatory agencies and PSCs in other states.Results of this research are provided to appropriatestaff members on a timely basis.

This section’s personnel also reviewed research anddevelopment projects undertaken by utility companies,and made on-site visits when appropriate.

Energy Division

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Telecommunications Division

The Telecommunications Division maintains limit-ed jurisdiction over the regulation of telephone serviceproviders in the State of Alabama. Utilities that fallunder the Commission’s jurisdiction include; Incum-bent Local Exchange Carriers (ILECs) – the tradition-al providers of local telephone service; CompetitiveLocal Exchange Carriers (CLECs); Interexchange Car-riers (IXCs); Long distance Service Resellers (Toll);Payphone Service Providers (PSPs); and Shared TenantTelephone Service (STS) providers.

The passage of the Communications Reform Act of2005 curtailed the Commission’s authority over pricesfor telecommunication services. In 2009 the AlabamaLegislature amended the Communications Reform Actto completely deregulate most retail telecommunica-tion services by January 2011. The Commission willretain authority over Emergency Reporting Servicesincluding inspection authority, access services andintercompany wholesale pricing as well as payphoneservice and inmate telecommunication services.

The 2009 amendment to the CommunicationReform Act also provided the Commission with addi-tional obligations regarding Lifeline Services. The Com-mission, the Alabama Medicaid Agency, the AlabamaDepartment of Community and Economic Develop-ment, the Alabama Department of Human Resources,and the Office of Attorney General are required todevelop rules and procedures for automatic Lifelineenrollment of qualifying applicants by December 31,2009. These agencies are required to work toward thegoal of automatically enrolling those who qualify for var-ious assistance programs upon consent of the individual.

The Telecommunication Staff is also developinginformation for the Commission’s web site which willinform visitors regarding the procedures to sign up forLifeline with their local telecommunications provider.In addition, the Commission is working with theDepartment of Revenue to provide Lifeline informa-tion contained in Alabama individual Income Tax Pub-lications.

Staff has been working closely with the NorthAmerican Numbering Plan Administrator (NANPA)and telecommunications representatives in the state inresponse to the exhaust of available telephone numbersfor the 256 area code. This has resulted in area code938 being added using an overlay format to be utilizedsimultaneously along with the 256 area code to servethe continued demand for telephone numbers in thisarea.

This area code overlay will be implemented usingthe following preparatory steps. November 7, 2009begins the “permissive dialing period” where all cus-

tomers are encouraged to begin dialing ten-digits forall local calls but calls dialed using only seven digits willstill be completed. June 5, 2010 begins the “mandato-ry ten-digit dialing period” when the area code plus theseven-digit phone number must be dialed for local callsto be completed. Local calls dialed using only sevendigits from that date forward will result in a recordedmessage instructing the caller to hang up and dial thecall again using all ten digits. The first assignments ofthe 938 area code to new customers will begin July 10,2010. After that date, new phone service customersmay be assigned a telephone number from either theexisting 256 area code or a telephone number from thenew 938 area code depending on availability.

Staff implemented procedures regarding ThirdParty Providers under Commission Order 30934 andamended Telephone Rules in Order 15957. Third PartyProvider must be certified with the Commission priorto having the Third Party Providers’ charges on thephone bills of Alabama telephone companies.

The Telecommunication Staff’s other dutiesinclude: participation in certification hearings for newtelecommunications service providers; review andanalysis of tariffs and intercompany wholesale agree-ments for which we retain jurisdiction; review of serv-ice quality performance; numbering resources man-agement; and recommending actions regardingtelecommunication policy and rules to the Commis-sion. The Commission does not have jurisdiction overcable television, Internet Service; Voice Over InternetProtocol (VOIP) phone service, or cellular telephoneservice.

Staff implemented procedures regarding ThirdParty Providers under Commission Order 30934 andamended Telephone Rules in Order 15957. Third PartyProvider must be certified with the Commission priorto having the Third Party Providers’ charges on thephone bills of Alabama telephone companies.

The Division is comprised of two primary sections:the Economic Compliance Section and the ServiceCompliance Section.

Economic Compliance SectionThe Economic Compliance Section of the

Telecommunications Division reviews financial andrate information filed by telecommunication compa-nies with the Commission and provides telecommuni-cation policy and rule recommendations to the Com-mission.

The Section is composed of analysts that reviewfederal and state policies/rules, tariff rates, applicationsfor authority to operate in the state of Alabama, inter-

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company wholesale agreements. Analysts are exten-sively involved in resolving consumer inquiries andcomplaints. Analysts also participate in hearings andworkshops regarding various telecommunicationsissues before the Commission.

During FY-09:

1. Staff continues to monitor filing of telephone com-panies regarding the Communications Reform Actof 2005 and subsequent amendment to the Com-munications Reform Act in 2009. The Division hasworked extensively with the Legal Division in theinterpretation of the Act in order to comply withrequirements of the Act.

2. The section is implementing rules, procedures andMemorandums of Understanding with other Stateagencies regarding the expansion of Lifeline/Linkup services and automatic enrollment.

3. Staff continues to monitor rules regarding Truth inBilling issues. The rules require companies to pro-vide full disclosure of actual and estimated chargeswhich a customer can expect to pay on an averagemonthly bill when quoting prices for services.

4. The section reviewed 56 interconnection, resale,and collocation agreements between CLECs, wire-less providers, and ILECs.

5. The Staff processed 11 applications for toll resaleand competitive local exchange service in Alabama.

6. Staff participated in the mediations/arbitrations oftwo (2) interconnection issues between varioustelephone companies.

7. Staff continues to review Transition Service Fundin accordance with Dockets 24499, 24472, 24030,and 24865.

8. The section maintains websites in compliance withthe Code of Alabama Section 11-98-5.1 regardingemergency telephone service charges (E911).

9. Staff ensures compliance with the Code of AlabamaSections 37-2A-4 and 30-6-1 regarding Family Vio-lence procedures and the associated Alabama Pub-lic Service Commission (Docket 29878) which aid inthe protection of individuals in Family Shelters.

10. Staff participated extensively in Docket 25980,which provides for implementation of UniversalService requirements of Section 254 of theTelecommunications Act of 1996 and Federal Com-munications Commission rules and regulationsregarding Universal Service. The review includedanalysis of BellSouth, CenturyTel, and RuralILECs’ plans for utilization of rural and non-ruralfederal Universal Service high cost fund allocations.

11. Staff continually evaluates issues associated withVoice Over the Internet Protocol e.g. E911, direc-tory listings, etc.

12. Staff continues to provide input for the STAR track-ing system, an online mailing system that provides forelectronic filings and assignments. Currently throughthis system, filings are available for review and com-ments by interested parties and the general public.

13. Staff continues to develop potential amendments tothe Alabama Public Service Commission’s GeneralRules and Regulations and Telecommunications Rules.

14. Staff routinely assists the Commissioners, con-sumers, and telecommunications companies in mat-ters relating to rates, tariffs, and filings with the FCC.

15. Staff assisted in resolving 356 issues and complaintsfrom telecommunications industry personnel, con-sumers, and other governmental agencies.

Service Compliance SectionThe Service Compliance Section monitors the

quality of service of incumbent and competitive localexchange telephone companies certificated in Alabamaand is responsible for numbering resources optimiza-tion. Staff conducts inspections to compare existinglevels of service with required APSC rules, industrystandards and electrical and safety codes. Staff alsomonitors construction projects involving plantupgrades and additions plus reviews construction proj-ects funded by the Universal Service Fund.

The Service Compliance Section also monitors thequality of service and rates charged by Customer-Owned Coin-Operated Telephone Services (COCOTS)providers, Inmate Phone Service (IPS), LocalExchange Carrier (LEC) pay telephone serviceproviders, Shared Tenant Service (STS) providers, andHotels/Motels to ensure compliance with Commissionrules and regulations.

Telecommunications Division

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During FY-09:

Service Compliance inspections were performedon the following utilities:

1. AT&T Alabama (Montgomery, Evergreen,Brewton Exchanges)

2. Knology Total Communications, Inc.3. Windstream Alabama, LLC4. Gulf Telephone Company d/b/a CenturyLink5. Frontier Communications of Lamar County, LLC6. Frontier Communications of the South, LLC7. Ardmore Telephone Company8. Millry Telephone Company

Service Compliance follow-up inspections wereperformed on the following utilities:

1. (TDS) Butler Telephone Company

In-depth reviews were performed on AT&T Alaba-ma and CenturyTel USF (universal service funds) highcost allocation construction proposals. On-site inspec-tions were performed within the following service dis-tricts to ensure that construction projects compliedwith those approved by the Commission:

Company/District

1. BellSouth-Gulf2. BellSouth-North Alabama3. CenturyTel-Southern4. CenturyTel-Northern

The Service Compliance Section staffs along withrepresentatives from the North American Numbering

Plan Administrator (NANPA) and the telecommunica-tions industry have been actively engaged in imple-menting the new 938 area code overlay of the existing256 area code. Consumer and technical milestones forthe 256/938 overlay are currently being implementedsuccessfully. This is the first time an overlay method ofarea code relief has been used in Alabama and may bethe method employed for future area code relief in thestate.

Numbering assignments from current inventorieshave decreased due to factors such as the economicdownturn, more aggressive numbering conservationmethods and reclamation of unused numberingresources. The latest Numbering Resource UtilizationForecast (NRUF) figures indicate positive results forAlabama due to increased monitoring and effectivemanagement of these finite resources. Service Compli-ance Section staff will continue to monitor numberingassignments and promote numbering conservationefforts in order to forestall premature exhaust of num-bering resources.

The following is a summary of the Service Compli-ance Section Inmate Phone Service (IPS) activities forFY-09:

1. Consumer Complaint Investigations – 72. One (1) special services provider was certified,

one (1) was decertified and ten (10) were amend-ed to include IPS authority during FY-09.

3. Participated in two (2) Inmate Phone ServiceProceedings (Dockets 15957 and 30632)

4. Contacts with IPS companies – 34

Telecommunications Division

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Transportation Division

The Transportation Division consists of three sec-tions: Insurance and Registration, Railway Safety, andRates and Services. As provided by law, the Trans-portation Division is responsible for the supervisionand regulation of air, motor, and rail carriers.

Insurance and Registration SectionThe Insurance and Registration Section performs

three separate but interrelated functions. First, it regis-ters for-hire transportation companies that are notexempted by law. It also registers motor carriers fromthe United States, Canada, and Mexico that have beengranted authority by the Federal Motor Carrier SafetyAdministration or those exempt from federal regula-tion.

Secondly, it requires motor or air carriers of pas-sengers or property to file and maintain proof of finan-cial responsibility. Such carriers file forms of liabilityinsurance, cargo insurance, bonds, self-insurance, andbonds for handling of collect-on-delivery shipments.

Thirdly, it issues intrastate motor carrier vehicleidentification decals, numbers, and Unified CarrierRegistration receipts. It also collects, accounts for, anddeposits the monies collected for applications, trans-fers, and motor carrier identification into the StateTreasury. It is responsible for maintaining journals,ledgers, receipts, and various other records and reportsof monies received and deposited.

This section receives, processes, and approvesapplications for the registration of such carriers operat-ing in interstate commerce into and through Alabama.This includes the issuance of Commission orders ofregistration when, after review, it is found that all therequirements of law are met. It also revokes or rein-states such carrier’s authority, when applicable, accord-ing to provisions set out in statutes, rules, and regula-tions. It works with other state and federal agenciesthat also regulate motor carriers.

This section makes sure that all intrastate motorcarriers have insurance on file before credentials tooperate are issued. It also issues orders of revocationfor failure to maintain proof of financial responsibilityand orders of reinstatement after proof has beenreceived as prescribed by law.

Subsequent to the above-mentioned regulations ofmotor carriers, this section is called upon to provideinformation to the general public, permitting services,lawyers, insurance companies, transportation compa-nies, and other state and federal agencies concerningregulatory matters.

A tabulation of the section’s activities follows:

Insurance FilingsSelf-insurance, bonds for liabilityand cargo, certificates for liabilityand cargo, bonds for brokers . . . . . . . . . . . . . . . 9,799

Letters of correspondence. . . . . . . . . . . . . . . . . . . . 182Registration of AuthorityIntrastate registered . . . . . . . . . . . . . . . . . . . . . . . . . 414

Motor Carrier Vehicle IdentificationApplications processed . . . . . . . . . . . . . . . . . . . . . 6,088Numbers and decals issued. . . . . . . . . . . . . . . . . . 1,559Letters of correspondence . . . . . . . . . . . . . . . . . . 2,127

Revocations and Reinstatement of AuthorityRevoked for no insurance . . . . . . . . . . . . . . . . . . . . 407Reinstated after compliance . . . . . . . . . . . . . . . . . . 222

Railway Safety

The Railway Safety Section conducts safety compli-ance inspections on all railroad common carriers’ trackand equipment in Alabama in accordance with stateand federal standards. Inspections are also made tomonitor compliance with regulations for RailroadWorkplace Safety.

This section investigates railroad accidents andderailments to determine causes and to recommendaction to prevent recurrence. Federally certifiedinspectors are called upon by the Federal RailwayAdministration (FRA) and the National Transporta-tion Safety Board (NTSB) to assist in major accidentinvestigations. This section also handles complaintsfrom railroads, railroad employees, labor unions, othergovernmental agencies, and the general public in allmatters pertaining to railway safety.

Inspections are also conducted on railroad rehabil-itative projects administered by the Alabama Depart-ment of Transportation. Agreements between the rail-roads and DOT typically specify adherence to FRAClass II standards and encompass a 10-year time frame.

Members of the Railway Safety Section participatein Operation Lifesaver as fully certified program pre-senters. Operation Lifesaver is a national public educa-tion and awareness program that seeks to reduce thenumber of crashes at highway-rail grade crossings. Tar-get groups include school bus drivers, driver’s educa-tion students, professional drivers, emergency responsepersonnel (police, ambulance, and fire), as well as thegeneral public.

The following is a breakdown of the activities of theRailway Safety Section during the period coveringOctober 2008 through September 2009:

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Total Miles of Railway Track Inspected . . . . . 1,503Total Railway Accidents . . . . . . . . . . . . . . . . . . . . . 7Total Units of Rolling Stock Inspected

(Railway cars) . . . . . . . . . . . . . . . . . . . . . . . . 7,764Total Locomotives Inspected . . . . . . . . . . . . . . . 153Total Railroad Records Inspected . . . . . . . . . . . 789Total Complaints Investigated . . . . . . . . . . . . . . . 19

Rates and Services SectionThe Rates and Services Section advises the Com-

mission on matters pertaining to the rates, fares,charges, services, and facilities of all regulated modesof intrastate transportation.

The section maintains a file of all tariffs settingforth rates, fares, charges, classification, rules and reg-ulations for intrastate transportation companies. Staffmembers check each re-issue and supplement filed toensure compliance with Commission rules and regula-tions. They also analyze tariff changes to determine theeffect.

The revised tariffs and supplements are either per-mitted to become effective on the proposed effectivedate or they are suspended and investigated.

When the Commission institutes a formal investi-gation, public hearings are held. When the record iscomplete, the examiner and other members of the staffstudy and analyze the evidence of record and make rec-ommendations to the Commission. After the Commis-sion makes its decision, an order is written for theCommissioners’ signatures.

This section compiles data from motor carriers andtariff publishing bureaus to use in Commission pro-ceedings and to supply information for staff membersand other state or federal agencies.

The Rates and Services Section receives and main-tains motor and rail carrier annual reports that arerequired to be filed by April 30 of each year coveringthe previous calendar year of operation. This dataenables the Commission to track the overall financialcondition of the industry under the jurisdiction of theCommission.

The section also handles requests for verification ofrates, fares, and charges of passengers and householdgoods. It also verifies rates and services provided bymotor carriers through field audits of carriers’ facilitiesand records.

Transportation Division

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Legal Division

The Legal Division consists of two AdministrativeLaw Judges, including the Chief Administrative LawJudge, a Senior Staff Attorney, a Departmental Oper-ations Specialist and an Administrative Support Assis-tant III. In addition, the Motor Carrier EnforcementSections operates as part of the Legal Division due tothe significant volume of motor carrier functions theLegal Division performs on a day-to-day basis. TheMotor Carrier Enforcement Section is comprised ofthe Transportation Enforcement Chief, two AreaEnforcement Supervisors, five Enforcement Officersand an Administrative Support Assistant III.

The Administrative Law Judges of the Legal Divi-sion serve as hearing officers in all cases before theCommission. These hearings involve motor carriercases, utility cases, and other matters. The Legal Divi-sion additionally provides legal advice to the Commis-sioners, the Commission staff and the public.

Although much of the advice provided by the LegalDivision is verbal, the Legal Division also preparesopinions and memoranda on legal questions involvingthe Commission’s jurisdiction when necessary. TheLegal Division additionally prepares written reportsand recommended orders, and drafts many of the finalorders of the Commission. The Legal Division alsospends a considerable amount of time involving rule-making and revision of rules, and works with other divi-sions in drafting and reviewing legislation for the Com-mission.

Many issues arise with telecommunications compa-nies now that competition is active. The Legal Divisionhas been involved in several proceedings concerningdisputes between telecommunications companies andthe relationship between telecommunications compa-nies.

During the past fiscal year, the Legal Division con-

ducted hearings involving approximately 45 mattersand processed hundreds of applications not requiring aformal hearing. The length of hearings varies from 20or 30 minutes to several days.

A tabulation of the number and types of inquirieshandled by the Division is not feasible. Such inquiriesare numerous and cover subjects as broad as the Com-mission’s jurisdiction and beyond. These inquiriescome from the public in general, the Commissioners,staff members, attorneys, the Legislature of Alabama,federal agencies, agencies of Alabama and other states,and all types of businesses regulated by the Commis-sion.

The attorneys of the Legal Division also representthe Commission and assist outside attorneys in casesinvolving the Commission before the courts of Alaba-ma, federal courts, federal agencies and state agencies.

The APSC’s Motor Carrier Enforcement Sectionconducts and carries out investigative, monitoring, andenforcement activities of the Commission to assure andobtain compliance with the provision of the AlabamaMotor Carrier Act and associated rules and regula-tions.

When motor carriers are found to be operatingwithout proper authority or are conducting their oper-ation in violation of established rules and regulations,steps are taken to require compliance. If conditionswarrant, violators are arrested and prosecuted in thecourts with proper jurisdiction.

Enforcement officers also conduct investigationsinvolving illegal operations and violations of rules andregulations, issuing citations and warning tickets whenappropriate. These officers additionally conduct safetyinspections of vehicles and have the authority to placevehicles and/or drivers out of service for safety/regula-tory violations.

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APSC History

The Alabama Public Service Commission wasdesignated as such in 1915 by the Alabama Legisla-ture. It evolved from the Railroad Commission ofAlabama, which was created in 1881 to regulate rail-roads. Between 1881 and 1915, the Legislatureextended the Railroad Commission’s jurisdiction toinclude express companies, sleeping car companies,railroad depot or terminal stations, telephone andtelegraph companies, plus transportation companiesoperating as common carriers over water, tollbridges, toll ferries, and toll roads. The Commissionwas charged with the regulations of utilities provid-ing electricity, gas, water, and steam, companiesoperating streets or inter-urban railways, as well asrail and communication companies being regulatedby the former Railroad Commission. The new Com-mission’s regulation of utilities included approvingthe sale or lease of utility property or franchises. TheCommission was composed of three elected mem-bers: a president and two associate commissioners.The Commission’s authority was broadened in 1920when the Legislature made it responsible for utilityrates. As Alabama’s highway system developed inthe late 1920s, the operation of trucks and buses ascommon carriers increased. In 1927, the Legislatureplaced all motor transportation companies operatingas common carriers of freight or passengers overregular routes on Alabama highways under theCommission’s regulatory authority. The Legislaturebroadened the Commission’s authority over trans-portation companies in 1931 and 1932 by includingmotor carriers not operating over regular routes. Aircarriers were included in 1945. Natural gas transmis-sion and distribution systems were placed under theCommission’s jurisdiction for safety purposes in1968, adopting the Minimum Safety Standards out-lined in the Natural Gas Pipeline Safety Act. In 1971,the Commission’s authority over motor carriers wasbroadened. Transportation enforcement officerswere empowered to enforce the rules and regula-tions of the Commission. The Commission’s safetyjurisdiction was extended to include railroad tracks

and equipment in 1976 under the State ParticipationProgram of the Federal Railroad Safety Act of 1970.The Legislature empowered the Attorney General’soffice in 1977 to represent consumers and the statein Commission proceedings. In recent years, sweep-ing federal and state statutory changes significantlyaltered the Commission’s jurisdiction and authorityover transportation and telecommunications utili-ties. Title IV in the Federal Aviation AdministrationAct of 1994 provides for federal preemption of thestates in matters of motor carrier pricing, routes, andservices for all but household goods carriers. As aresult, Commission certification and tariff approvalis no longer required for those motor carriers forwhom regulatory jurisdiction has been federally pre-empted. The Commission continues regulating carri-ers of passengers and household goods, ensures allmotor carriers maintain appropriate cargo insur-ance, and ensures that all comply with applicablesafety standards. With passage of the Telecommuni-cations Act of 1996, Congress opened up the localexchange telephone market to competition. Largeincumbent local exchange companies (ILECs) suchas BellSouth and CenturyTel, who previously operat-ed as the only local carrier within their Commissioncertified service areas, must now make their servicesavailable for resale and lease components of theirembedded network to new entrants. New entrantsinto the local telephone market may also petition theCommission to open independent telephone compa-ny local service areas to competition. The introduc-tion of local competition forced the Commission toset utility prices for retail telecommunication servic-es using market based rather than cost basedmethodology. Thereafter, the Alabama Legislaturepassed the Communications Reform Act of 2005.The Act, citing the competition that exists in thelocal telephone market, eliminated much of theCommission’s authority over retail telecommunica-tion services. Additionally, Commission jurisdictionwas eliminated for all broadband services used forInternet delivery.

Past and Present Commissioners

PresidentWalter L. Bragg:February 1881 – February 1885Henry R. Shorter:February 1885 – February 1897James Crook:February 1897 – February 1901*John V. Smith:March 1901 – March 1905B.B. Comer:March 1905 – January 1907Charles Henderson:January 1907 – January 1915Samuel P. Kennedy:June 1915 – January 1923*A.G. Patterson:January 1923 – January 1927Hugh White:January 1927 – January 1945Gordon Persons:January 1945 – January 1951C.C. (Jack) Owen:January 1951 – January 1965Eugene (Bull) Conner:January 1965 – January 1973Kenneth A. Hammond:January 1973 – December 1975C.C. Whatley:December 1975 – January 1977Juanita W. McDaniel:January 1977 – February 1980William J. Samford, Jr.:February 1980 – January 1981Billy Joe Camp:January 1981 – January 1983*Jim Sullivan:February 1983 – November 2008Lucy Baxley:November 2008 – Present

Commissioner, Place 1James Crook:February 1881 – January 1885Levi W. Lawler:February 1885 – September 1892

Gen. James T. Holtzclaw:February 1893 – July 1893Willis G. Clark:August 1893 – February 1895Harvey E. Jones:February 1895 – February 1899A.E. Caffee:February 1899 – February 1903William T. Sanders:April 1903 – January 1907Charles Henderson:January 1907 – February 1907W.D. Nesbitt:March 1907 – January 1911Leon McCord:January 1911 – January 1915B.H. Cooper:January 1915 – January 1923Fitzhugh Lee:January 1923 – January 1943Gordon Persons:January 1943 – January 1945James Perdue:May 1945 – January 1947James Hitchcock:January 1947 – June 1959Ralph Smith, Jr.:August 1959 – August 1960Joe Foster:August 1960 – January 1963Ed Pepper:January 1963 – January 1967C.C. (Jack) Owen:January 1967 – January 1975Jim Zeigler:January 1975 – January 1979Pete Mathews:January 1979 – March 1981Lynn Greer:June 1981 – November 1990Jan Cook:November 1990 – Present

Commissioner, Place 2Col. Charles P. Ball:February 1881 – February 1885

Wiley C. Tunstall:February 1885 – February 1895Ross C. Smith:February 1895 – February 1899Osceola Kyle:February 1899 – December 1900Wiley C. Tunstall:December 1900 – January 1907John G. Harris:January 1907 – July 1908John A. Lusk:August 1908 – January 1911Frank N. Julian:January 1911 – January 1915S.P. Gaillard:January 1915 – January 1923*Frank P. Morgan:January 1923 – May 1936W.C. Harrison:June 1936 – January 1947C.C. (Jack) Owen:January 1947 – January 1951T.O. Walker:January 1951 – January 1955Sibyl Pool:January 1955 – January 1971Juanita W. McDaniel:January 1971 – January 1977C.C. Whatley:January 1977 – January 1979Jim Folsom, Jr.:January 1979 – November 1986Charles B. Martin:November 1986 – November 1998George C. Wallace, Jr.:November 1998 – November 2006**Susan D. Parker, Ph.D.:

November 2006 – Present

*Also served as President of theNational Association of RegulatoryUtility Commissioners (NARUC)

**Also serves as President of the South-eastern Association of RegulatoryUtility Commissioners, and SecondVice-President of NARUC

APSC Consumer SerAPSC Consumer Ser vicesvices

TToll-Free Complaints Hotline:oll-Free Complaints Hotline:

1-800-392-80501-800-392-8050

AlabamaAlabama

Public SerPublic Ser vice Commissionvice CommissionPP.O.O. Bo. Box 304260x 304260

MontgomerMontgomer yy, AL 36130, AL 36130

wwwwww.psc.alabama.gov.psc.alabama.gov