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:
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.
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.
There are several factors, including:
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
For commercial customers, please use this example. Base Rate Example - Commercial
Your bill will include a charge called DDDC or Design Day Capacity Charge. Below are frequently asked questions:
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.
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.
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.
The most recent recalculation went into effect this past September 1st and is recalculated annually.
You should contact your natural gas marketer if you feel your DDDC is incorrect.
Every residential and commercial customer's DDDC factor is recalculated annually.
The DDDC is recalculated per premise, not per customer. Changes in usage patterns and gas appliances might affect the DDDC.
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.
Commercial and residential accounts are affected by the DDDC recalculation.
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.
The new DDDC factor was effective September 1st. All base charges calculated beginning September 1st reflect the new DDDC recalculation.
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.
Atlanta Gas Light calculates DDDC factors based on peak demand. Therefore, weather volatility is taken out. The weather of last winter will not affect DDDC factors.
In February 2001, Atlanta Gas Light implemented a seasonal rate plan for DDDC charges. Billing follows the traditional winter and summer usage patterns. What’s the impact on consumers like you? The seasonal rate plan results in higher base charges in winter (more gas use) and lower base charges in summer (less gas use). Interstate pipeline and transportation charges and the commodity cost of natural gas are not affected.