Rates & Tariff
Natural Gas Pricing
When you’re choosing a marketer, the price of the natural gas and the length of your contract are considerations. Here are some tips about pricing that might help you make a decision.
Variable rate: The variable price of gas consists of several components, including the current price of natural gas and the cost of transporting it to Georgia. The variable price is subject to price fluctuations without prior notice.
Fixed rate: This price remains constant for a fixed period of time, usually 12 months. Some marketers offer a fixed price for as long as 24 months.
Discounted rate: Some marketers also offer discounts to senior citizens. Ask your marketer if you think you may qualify.
Fixed and variable rates are priced per therm. A therm is a unit of heat energy. In addition to charging customers for the therms of natural gas they use, most marketers include additional, separate charges:
- Some marketers charge an exit fee for leaving a fixed-term contract before it expires.
- Unless the customer notifies the marketer before the expiration date of a fixed-rate plan, the marketer may switch the customer to a variable rate.
- Because terms and conditions vary by marketer, you should get all the details before you agree to any pricing plan. You should request verification of your choices and contract terms in writing.
No matter which marketer you select, you’ll see charges from our company, Atlanta Gas Light, on your bill. These charges are for the cost of delivering gas to your home, pipeline maintenance and meter reading. View more information about we calculate these charges below.
For more information, visit the Georgia Public Service Commission web site.
How Do We Calculate Your Base Rate?
There are several factors, including:
- Customer Charge: A fixed monthly fee for gas connection to your home or business.
- Dedicated Design Day Capacity (DDDC): A charge that recovers costs associated with delivering gas to a home or business based upon that customer’s projected usage on the coldest day of the year.
- Meter Reading: Covers the cost of meter reading.
- Peaking Service: Covers the fixed cost of operating company-owned, above-ground storage facilities. This ensures an adequate supply of gas on the coldest day of the year. This service is only charged to customers in the Atlanta and Macon delivery groups.
- Franchise Recovery Cost: Recovers fees paid by Atlanta Gas Light to local governments for the use of public rights-of-way for natural gas lines and other facilities.
- Social Responsibility Cost Rider: Covers the cost of funding the Senior Citizens Discount Program for low-income customers.
- Environmental Response Cost Recovery Fee: Recovers expenses related to cleanup of former manufactured gas plant sites.
- Synergy Savings: This credit lowers the fixed charges to all customers.
- System Reinforcement Rider: This charge recovers costs associated with system reinforcement and pressure improvement projects.
Calculating Your Base Rate: Examples
This is an example of how base charges are calculated for a typical residential customer. Type in your DDDC factor and choose the month you would like to view to calculate your Atlanta Gas Light pass-through charge. Base Rate Example - Residential Customers
For commercial customers, please use this example. Base Rate Example - Commercial Customers
Your Base Rate
When you receive your natural gas bill each month from your marketer, a portion of the bill is a base charge from Atlanta Gas Light. This base charge, regulated by the Georgia Public Service Commission, may adjust rates up or down based on quarterly and annual comprehensive regulatory reviews. Base charges represent our cost of delivering gas to your home or business, pipeline maintenance and meter reading. If you change marketers, this charge will remain the same.
Base rates are unique to each household or business. They are calculated by how much gas is used during the coldest period of the prior year. This allows us to plan ahead so we have enough pipe and storage capacity to meet every customer's need in cold weather, when more natural gas is used.
Your base charge depends on the size of your home or business, the types of gas appliances you have and your usage patterns. Your base charge does not affect the price of the natural gas you use at home or your business.
Tariff Provisions
The tariff is our company's terms of service, schedules of rates and charges, and rules and regulations on file with the Georgia Public Service Commission.
DDDC or Design Day Capacity Charge
Your bill will include a charge called DDDC or Design Day Capacity Charge. Below are frequently asked questions:
What is a Dedicated Design Day Capacity Charge (DDDC)?
The DDDC covers the common costs of delivering gas based on a customer's demand on the system on the coldest day of the year. This method is the fairest way to allocate each customer's share of the total cost of the delivery system.
Why is the DDDC recalculated each year?
A DDDC recalculation is required each year and approved by the Georgia Public Service Commission in order to update summer and winter usage patterns for each customer for the most recent year.
How is DDDC determined?
Atlanta Gas Light uses information specific to the premises, such as past usage patterns or the number of gas appliances, to determine a location's demand on the system.
When does the recalculation go into effect?
The most recent recalculation went into effect this past September 1st and is recalculated annually.
What do I do if I think the DDDC is wrong?
You should contact your natural gas marketer if you feel your DDDC is incorrect.
Which accounts are recalculated?
Every residential and commercial customer's DDDC factor is recalculated annually.
How could the DDDC change if the customer was not there last year?
The DDDC is recalculated per premise, not per customer. Changes in usage patterns and gas appliances might affect the DDDC.
How is the DDDC calculated if the customer is in a newly built structure?
If Atlanta Gas Light does not have 12 months of consumption history on a newly built structure, we gather specific information to calculate the DDDC. For residential premises, the factor is based on the square footage of the structure, the type of structure (single family residence, apartment or mobile home) and the gas equipment used.
Are commercial customers impacted by the DDDC recalculation?
Commercial and residential accounts are affected by the DDDC recalculation.
If the DDDC recalculation results in the DDDC factor being less than before, will the customer receive a refund for the previous DDDC charges?
There will be no refunds to customers whose DDDC factor decreases, and there will there be no charges to customers whose DDDC factor increases. The new DDDC factor is the new capacity allocation for the new year only.
When are customers' base charges affected by the new DDDC recalculation?
The new DDDC factor was effective September 1st. All base charges calculated beginning September 1st reflect the new DDDC recalculation.
How can Atlanta Gas Light change rates without Public Service Commission Approval?
The DDDC recalculation is not a rate change. Atlanta Gas Light is simply charging marketers for the capacity that their customers use (Capacity is the space occupied by the natural gas they use.). By doing an annual recalculation of each customer's DDDC, Atlanta Gas Light can make sure all customers are fairly charged for how much of the system is "reserved" for their needs.
How do DDDC rates vary by month?
In February 2001, Atlanta Gas Light implemented a seasonal rate plan for DDDC charges. Billing for residential customers follow the traditional winter and summer usage patterns. The seasonal rate plan results in higher base charges in winter, with higher gas use and lower base charges in summer, with less gas use. Interstate pipeline and transportation charges and the commodity cost of natural gas are not affected.
