The Georgia Public Service Commission on Thursday moved forward on a plan to release $5 million from the state Universal Service Fund (USF) for natural gas customers in need of energy assistance this winter.

 “Everyone understands that energy costs have been rising,” said Commission Vice Chairman Fitz Johnson, sponsor of the motion. “With the winter heating season approaching, it’s prudent to provide this funding to support low-income senior citizens and other gas customers in need of help with their bills.” 

Since 2000, the Commission has approved $96.6 million in USF grants to assist low-income customers on Atlanta Gas Light’s system. This has ensured that these customers continue to receive natural gas service and keep their bills lower during the winter heating season.

The Commission will vote on Vice Chairman Johnson’s motion at the PSC’s Tuesday Administrative Hearing.

“I really appreciate Commissioner Johnson’s foresight on this,” said PSC Chairman Jason Shaw. “We’ve always tried to support the senior citizen discount when possible. This is an appropriate and constructive use of the Universal Service Fund.”

Of this $5 million discussed during the PSC’s Energy Committee hearing on Thursday, $2.5 million would benefit the approximately 12,824 customers currently enrolled in the Atlanta Gas Light Senior Citizen Discount Program. Each of the program’s participants would receive a one-time credit of approximately $194. This credit is in addition to the existing senior discount of $14 a month off the base charge. 

The $194 credit will be first reflected in November bills issued to customers by their natural gas marketer and will go toward each subsequent month’s bill until depleted.

To be eligible for the senior discount, customers must be 65 or older and have total annual combined household income of less than 200% of the Federal Poverty Guidelines ($31,300).

 Another $2 million of USF funds would be distributed to HopeWorks, a non-profit that assists in repairing or replacing gas furnaces and gas water heaters. The final $500,000 from the USF would be distributed to the Salvation Army Utility Assistance Program.

The USF is used primarily to extend pipeline facilities into unserved areas of the state. It is funded primarily through:

• Fees paid by AGL’s asset manager for use of natural gas capacity contracts not otherwise needed by customers on the coldest days of the year

• Surcharges placed on interruptible service customers, and

• Refunds from interstate pipeline suppliers

Any amounts exceeding $3 million that remain unprogrammed in the USF at the end of each fiscal year may also be used for customers, like the proposal currently under consideration by the Commissioners.

For more information on the Commission, see the PSC website at https://psc.ga.gov/