25 SB 256/AP
Senate Bill 256
By: Senator Cowsert of the 46th
AS PASSED
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 4 of Title 46 of the Official Code of Georgia Annotated, relating to
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distribution, storage, and sale of gas, so as to revise provisions concerning required2
disclosures of electric membership corporations; to provide for related matters; to repeal3
conflicting laws; and for other purposes.4
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:5
SECTION 1.6
Chapter 4 of Title 46 of the Official Code of Georgia Annotated, relating to distribution,7
storage, and the sale of gas, is amended by revising Code Section 46-4-164, relating to8
construction of article, electric membership corporations and EMC gas affiliates, disclosure9
requirements, and liquefied petroleum gas, as follows:10
"46-4-164.11
(a) Nothing in this article shall be deemed to apply or impose requirements not otherwise12
existing on gas distribution companies owned by any county, municipality, other political13
subdivision, or governmental authority of this state; nor are the provisions of this article14
intended to increase or decrease the authority and jurisdiction of the commission with15
respect to the distribution, sale, or transportation of gas by any county, municipality, other16
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political subdivision, or governmental authority of this state. Nothing in this article shall
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be construed to limit or otherwise affect the existing powers of municipal corporations or18
other political subdivisions of this state relating to the granting of franchises or the levying19
or imposition of taxes, fees, or charges.20
(b) Notwithstanding any provision of law to the contrary, including, without limitation,21
Article 4 of Chapter 3 of this title, an electric membership corporation may make and22
maintain investments in, lend funds to, and guarantee the debts and obligations of an EMC23
gas affiliate in total not to exceed 25 percent of such electric membership corporation's net24
utility plant, excluding electric generation and transmission assets as defined by the Federal25
Energy Regulatory Commission Uniform System of Accounts in effect at the time of such26
investment, loan, or guarantee, provided that any such investments or loans shall not reflect27
rates which are generally available through the use of any tax exempt financing and may28
not be tied to any loans from or guaranteed by the federal or state government; and an EMC29
gas affiliate of an electric membership corporation organized and operating pursuant to30
Article 4 of Chapter 3 of this title may apply for and be granted a certificate of authority31
to provide any service as authorized under this article. The creation, capitalization, or32
provision of management for:33
(1) An EMC gas affiliate engaged in activities subject to the provisions of this article and34
the rules and regulations established by the commission; or35
(2) Other persons providing customer services36
shall be deemed to be among the purposes of an electric membership corporation as37
specified in paragraphs (2) and (3) of Code Section 46-3-200. Nothing in this article shall38
be deemed to increase or decrease the authority and jurisdiction of the commission with39
respect to such electric membership corporation except as to gas activities undertaken by40
the electric membership corporation or its EMC gas affiliate as authorized under this41
chapter.42
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(c) Within six months following any transaction that causes an electric membership
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corporation to have more than 15 percent of its net utility plant invested in, lent to, or44
secured for the benefit of its EMC gas affiliate, excluding electric generation and45
transmission assets as defined by the Federal Energy Regulatory Commission Uniform46
System of Accounts, such electric membership corporation shall disclose to its members:47
(1) A description of the assets or interests acquired in the transaction;48
(2) The date of such transaction;49
(3) The identification
A description of any assets pledged by the electric membership50
corporation to secure a loan or other funding in connection with such transaction that51
forms all or a portion of the assets pledged to secure such loan or other funding;52
(4) The total amount of the electric membership corporation's assets, debts, and53
obligations, and those of the EMC gas affiliate; and54
(5) The total amount of the electric membership corporation's electric generation and55
transmission assets as defined by the Federal Energy Regulatory Commission Uniform56
System of Accounts; and57
(6) The percentage of the electric membership corporation's net utility plant used for the58
purposes described in subsection (b) of this Code section.59
(d) An electric membership corporation that has more than 15 percent net utility plant60
invested in, lent to, or secured for the benefit of its EMC gas affiliate, excluding electric61
generation and transmission assets as defined by the Federal Energy Regulatory62
Commission Uniform System of Accounts, shall disclose to its members the annual cost63
of gas in aggregate that it sells. Such disclosure shall be made on an annual basis.64
(e) Nothing in this article shall be construed to allow or authorize an electing distribution65
company, a certificated marketer, or a regulated provider of natural gas to engage in the66
production, transportation, marketing, or distribution of liquefied petroleum gas; provided,67
however, that nothing in this article shall be construed to prohibit an electing distribution68
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company from using liquefied petroleum gas to provide for system balancing and peaking
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services for its distribution system."70
SECTION 2.71
All laws and parts of laws in conflict with this Act are repealed.72
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