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 through what is called the Georgia Rate Adjustment Mechanism.
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.
In November of 2021, the PSC approved Atlanta Gas Light's 2021 GRAM filing, as well as the company's first-ever Integrated Capacity Development Plan (i-CDP). This 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.
As a result of the PSC’s decision, typical residential customers can anticipate a monthly bill increase of $2.11 (less than 3% of the total bill). That figure includes a system reinforcement rider monthly surcharge of $0.32, which reflects the increases associated with the i-CDP revenue requirement. These bill changes take effect Jan. 1, 2022.
Along with the PSC’s approval of the first three years of capital investment in the i-CDP, it also approved the mechanism that determines Atlanta Gas Light’s 2022-2024 total annual System Reinforcement Rider. A typical residential customer will experience an annual increase, including the surcharge, that averages 5.5% - 6% of their total base bill for each of the next three years.
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.
