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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 in order to continue to recover costs associated with the services the company provides.

GRAM has been in use by the PSC since 2011 and has proven to be one of the more transparent rate mechanisms in the country. It adjusts rates up or down based on quarterly and annual comprehensive regulatory reviews.

  • The reviews include historic data, inflation and other changes in business conditions and company performance. 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.

Starting in January of 2021, the GRAM mechanism will result in an average increase for the average residential customer of $1.63 per month.[1] That is about a 2.5% increase on customers’ total annual natural gas bills (including marketer charges).

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.

 

[1] The $1.63 per month estimated average increase was calculated assuming a customer DDDC factor of 1.3.