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GRAM
GRAM

Georgia Rate Adjustment Mechanism (GRAM)

While Georgia residents may choose to purchase natural gas from any marketer in the state, Atlanta Gas Light is responsible for the safe and reliable delivery of that natural gas to their homes. This is why customers see charges from Atlanta Gas Light on their monthly bill, along with fees and taxes from their marketer.

The funds collected from these bills allow Atlanta Gas Light to implement safety best practices, build system resiliency and use the latest innovations available to provide top-notch customer service.

Natural gas bills are regulated by the Georgia Public Service Commission. In 2019, the PSC directed Atlanta Gas Light to continue operating under the Georgia Rate Adjustment Mechanism through at least 2021.

GRAM has been in use by the PSC since 2017 and has proven to be one of the more transparent rate mechanisms in the country. It adjusts rates up or down based on an annual comprehensive regulatory review.

  • The filling is based on historical expenses adjusted for inflation, and forecasted capital expenditures, revenues, labor and benefit costs. Because the review is a transparent, continual process, GRAM results in rate adjustments that reveal real-time changes in factors that influence utility rates.
  • GRAM also reduces the cost and resources necessary to prepare and review traditional rate cases.
  • The Georgia PSC retains the right at any time to hold hearings in consideration of reviewing and adjusting the utilities’ Return on Equity and other factors that influence base rates.

On July 21, 2021, Atlanta Gas Light submitted a filing with the Georgia Public Service Commission asking for a $49 million adjustment to base rates to fund critical initiatives that make its system safer, comply with changing federal regulations, improve customer engagement and satisfaction and increase reliability and resiliency on the coldest days of the year. The required GRAM filing indicates that increased funding will ultimately enable Atlanta Gas Light to continue to grow its system to serve new areas, attract businesses to the state and support local jobs. Georgia continues to be a destination for new businesses and residents.   

If approved, the typical residential customer would experience a $2.10 monthly increase. The adjustment is aligned with Atlanta Gas Light’s new Integrated Capacity Development Plan (i-CDP), which was filed in April and is still under PSC review. The 10-year i-CDP provides a transparent view of the company’s long-term plans and costs for capital projects that meet growing customer demands, maintain safety and improve and expand infrastructure.  

A decision on the request is expected in December. Any new rate adjustments likely will go into effect Jan. 1, 2022.

View how we calculate your base rate for more details regarding bill impact.

Note that the Senior Citizen Low Income Discount remains for qualifying customers.