Prepared Especially for

Annual Membership Meeting Lake Lanier Islands

May 3-5, 2006

Subscribed Regulatory Compliance

Service Update

+ =

Agenda

I. BackgroundII. ServicesIII. Contract TermsIV. Current StatusV. Development Period

RP 1162 Public Awareness

VI. Q & A

I. Background

A. Membership Driven

B. GMA Gas Section Driven

Meeting a Need/Providing a SolutionMeeting a Need/Providing a Solution

Municipal Gas Authority of Georgia

I. Background

C. Missioni. To assist subscribing public gas systems in

achieving and maintaining compliance with federal and state pipeline safety regulations.

ii. Available to ALL Georgia Municipal Distribution Systems

iii. Component service available to natural gas contractors for tracking “qualified” employees

iv. Voluntary participation

I. Background

D. Organizationi. Standalone group under Member Services umbrella staffed by qualified,

experienced professionals consisting of a group manager, an assistant manager/field expert and regulatory compliance analysts

ii. General administrative and IS support, and officer oversight provided via existing resources

iii. GMA Gas Section Executive Committee is the “steering committee” for the service

II. ServicesA. Records Management

i. Standardization of forms and files (paper & electronic)

ii. Centralized compliance administrationiii. Web-based access for subscribersiv. Notification service

B. Operator Qualification Programi. Complete administration of OQii. Facilitate training, testing and program updating

C. Report Preparationi. OPS & EIA Annual Reports

II. ServicesD. Regulatory Representation

i. Monitor proposed changes, intervene as necessary and effectively communicate with subscribers

ii. Actively participate in Operations Committees of APGA and SGA, and other relevant trade organizations

iii. Assist subscribers before PSC OPS1. Build & maintain effective working relationship2. Inspection preparation & response

E. System Manuals Maintenancei. Operation & Maintenance Manualii. Emergency Plan

III. Contract ProvisionsA. Service Agreement

i. Identical for all subscribers

B. First Amendmenti. Identical for all subscribers

ii. Provides for change in timing a) Original commitment set for March 1, 2006

iii. Provides additional protections for subscribersi. Early termination if two-thirds vote to discontinue service

ii. Establishes specific Consumer Price Index for inflationary/deflationary adjustments in Base Subscription Fee and Subscription Fee Cap

III. Contract Provisions

C.Termi. Initial commitment through December 31,

2008; annually evergreen thereafter, with a one-year termination notice requirement1. Development phase: March 1, 2006 – August 31,

2006

2. In-service date: September 1, 2006

III. Contract Provisions

D. Subscription Feei. Budget established annually; draft budget available

September 30th of each year with a 60-day comment period before Board approval1. Initial Budget and Subscription Fees established under

Agreement for March 1, 2006 through December 31, 2006a. Base Subscription Fee: $6,000 per year

b. Meter Subscription Fee: $2.52 per meter per year

c. Annual Cap: Not to exceed $50,000 for any subscriber

d. Subscription Fees billed to match seasonal cash flows

III. Contract Provisions

D. Subscription Fee (Continued)

2. Development Phase: March 1, 2006 through August 31, 2006a. Late subscribers, those that sign-up post-March 1,

2006, are responsible for paying development costs equivalent to one-twelfth of annualized 2006 Subscription Fees for every month of Development Phase during which they did not participate (not to exceed six months)

III. Contract Provisions

D. Subscription Fee (continued)

3. Initial Budget & Subscription Fees were based on commitment of 25 subscribers with aggregate meter count of approximately 62,500

4. Subscription Fees may be restated annually via same process as other Gas Authority Budgets, beginning 2007 (Sep. 30, 2006)

a. Draft budget provided to all subscribers for review and comment on or about September 30th of each year

b. 60-Day Comment Period

c. Board Approval

III. Contract Provisions

E. Liability – Participants will indemnify each other and the Gas Authority

F. Clear Lines of Responsibility –Absolute clarity in responsibility between subscriber and Gas Authority

III. Contract ProvisionsF. Practical Implications of Subscription Fees

Contrast with …49 CFR 190.223(a) – “Any person who is determined to have violated a

provision of 49 U.S.C. 60101 et seq. or any regulation or order issued thereunder, is subject to a civil penalty not to exceed $25,000 for each violation for each day the violation continues except that the maximum civil penalty may not exceed $500,000 for any related series of violations.”

20-Apr-06

SUBSCRIBER:

Annual Subscription Fee:Base: = $6,000Meters: 4,000 X $2.52 = $10,080Total: $16,080

2006 AnnualizedJAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL

Monthly Shaping 20% 16% 11% 5% 4% 3% 3% 2% 3% 7% 10% 16% 100%Subscription $3,216 $2,573 $1,769 $804 $643 $482 $482 $322 $482 $1,126 $1,608 $2,573 $16,080

Dev. Phs. Recov. $0 $0 $0 $0 $0 $1,340 $1,340 $1,340 $0 $0 $0 $0 $4,020Total Subscription $3,216 $2,573 $1,769 $804 $643 $1,822 $1,822 $1,662 $482 $1,126 $1,608 $2,573 $16,884

Impact to Retail Rates1. Volumetrically

Throughput* 121,500 105,000 82,000 45,000 30,600 24,200 22,400 23,500 26,000 30,100 59,000 108,000 490,000Per Mcf $0.03 $0.02 $0.02 $0.02 $0.02 $0.08 $0.08 $0.07 $0.02 $0.04 $0.03 $0.02 $0.03

- OR -2. Base Charge

Per Meter $0.34 $0.34 $0.34 $0.34 $0.34 $0.34 $0.34 $0.34 $0.34 $0.34 $0.34 $0.34 $4.02

* GA Firm Sales (Mcf)

Not billed; shown Development Phase In-Servicefor illustration ofannual costs only 2006 Subscription (joining effective June 1, 2006) = $11,095

Dev. PhaseRecovery

ILLUSTRATION OF SUBSCRIPTION FEE

Average Natural Gas

IV. Current Status

A. StaffingManagerBill DeFoor

Regulatory Compliance

Analyst

Each R.C.A. would be responsible for 10-15 cities.Each R.C.A. would be responsible for 10-15 cities.

Asst. Asst. ManagerManager

Tim FranklinTim Franklin

Regulatory Compliance

Analyst

Regulatory Compliance

Analyst

IV. Current Status

B. Current Subscribers (30)

AdairsvilleAmericusCamillaCommerceCovingtonEatontonElbertonFitzgeraldFort ValleyGreensboro

(81,900 Meters)

HartwellLaFayetteLouisvilleLumpkinMadisonMonroeMonticelloPerryQuitmanRoyston

Social CircleStatesboroSylvaniaThomasvilleThomsonTiftonToccoaUnion PointWinderWrens

V. Development Period

A. Communications

i. Initial Contacts with Subscribers, pending Subscribers, PSC, GMA Gas Section Executive Committee, APGA, SIF, SGA

ii. On-going Dialogue via Website and Periodic Individual and Group Meetings

iii. Subscribers-Only Pages on SRCS Website

V. Development PeriodB. Database

i. Basic Development

1. Records Management

2. OQ Administration

ii. Implementation

1. Data Collection

2. Database Population

3. Training

V. Development Period

C.RP 1162 Compliancei. In conjunction with the Gas Authority

and using its Public Awareness Program & materials

ii. Assist with Submittal of Self Evaluations

iii. Assist with Development of Public Awareness Plans and Incorporation into O&M Manuals

RP 1162/Public Awareness

June 20, 2006 deadline to have a program in placeGas Authority Public Awareness Program

delivered to Member systems in Fall, 2005

Featuring key components of plan in easy-to-use, fill-in-the-blank formatKey messages for various audiencesTracking grid

Dig SafelyIf you plan to dig or move, call 1-800-

282-7411 at least two days before

digging so the Utilities Protection

Center (UPC) can mark underground

utility lines.If you do not call and you hit an

underground line, you could be hurt

or killed. You may also be held liable

for costly damages.Here are some simple excavation

safety steps:Survey and Mark – Survey proposed

excavation areas and mark the dig

sites in white paintCall BeforeYou Dig – It is the law! At

least two working days prior to

starting work – 1-800-282-7411

RP 1162/Public Awareness

Natural Gas Safety and You!

City of XYZ

Natural Gas:

At Your Service

City of XYZ

Customizeable Materials for Various Audiences (ongoing development)

RP 1162/Public Awareness

E*D*U*C*A*T*EEvaluate

Determine Direction

Utilize Successes/Usurp Failures

Communicate

Assess Along the Way

Test Progress/Success

Evolve Your Program/Plan

RP 1162/Public Awareness

Evaluate First determine your audiences’ current body of knowledge on the subject.

Determine DirectionUsing the baseline data gathered in your preliminary survey, set program goals on an immediate, short-term and long-term basis.

RP 1162/Public Awareness

Utilize Successes/Usurp FailuresKeep doing the things that have yielded success according to the baseline data gathered and ditch the tactics that haven’t worked.

CommunicateAs Nike says “Just Do It!” Get the word out

and do it often.

RP 1162/Public AwarenessAssess Along the Way Sometimes goals and action plans require redirection. Be sure to look at what you are doing as you proceed on this journey and adjust accordingly.

Test Progress/SuccessThere’s nothing stopping you from flat out asking customers and residents for some formalfeedback on your communication program.

RP 1162/Public Awareness

Evolve Your Program/Plan With all the good information you have been gathering you have the tools to grow your program and improve your plan. Use this information to “shake things up” and keep things fresh for your audience.

RP 1162/Public AwarenessSystems are required to assess

Public Awareness Program effectiveness

APGA is offering:

GOAL: Gas Overall Awareness Level

A third-party automated telephone survey service to benchmark where system public awareness is today and its subsequent, anticipated growth over a period of years

V. Development Period

C.RP 1162 Compliancei. In conjunction with the Gas Authority

and using its Public Awareness Program & materials

ii. Assist with Submittal of Self Evaluations

iii. Assist with Development of Public Awareness Plans and Incorporation into O&M Manuals

C. RP 1162 Compliance (continued)

iv. Assist in Selection of Effectiveness Evaluation Process1. Recommend using APGA’s GOAL Program

2. Cost-Effective, Multi-Tiered Evaluation Options

V. Development Period

V. Development Period

D. Staffing Evaluationi. Analyst-to-Subscriber Ratio = 1 per 10 to 15

ii. Geographic Considerations

iii. Budget

V. Development Period

E. Identification of Possible Future Services

i. Training

ii. Operation & Maintenance Manual

iii. Work Order Management

iv. Computerized Maintenance Management System (CMMS)

VI. Q & A