Mar
1

Natural Gas 101 – AGL Pass-Through Charges

In the last installment of the ‘Natural Gas 101’ series here on ‘The Hot Spot,’ we talked about your DDDC Factor. Today, we will help you understand AGL Pass-Through Charges.

What are the AGL Pass-Through Charges?

Have you ever looked at your natural gas bill and wondered what AGL Pass-Through Charges are? Maybe you’ve asked “Who is AGL?” and “What exactly is passed through?”  Well, Atlanta Gas Light Company (AGL) is the company that owns the pipeline system that delivers natural gas to your property.  The AGL Pass-Through Charges represent AGL’s costs for maintaining the natural gas pipelines and storage facilities, as well as reading your meter each month.  Rather than receiving a separate bill from AGL, these monthly charges are sent to your natural gas marketer (in your case, Gas South) and those charges are “passed through” to you – without any additional cost or mark-up.  You’ll see the charges from AGL on your Gas South bill, just like in the sample bill below.

When will I get charged the AGL Pass-Through Charges?

AGL Pass-Through Charges are assessed on the 20th of every month for the next month of service. The sample bill above includes AGL Pass-Through charges for the month of August.

AGL assesses the full monthly pass-through charges each month regardless of the actual number of days you receive service or the amount of gas you use in that particular month.  You’ll see the monthly AGL Pass-Through charge on each bill as the AGL charges are spread over an entire year rather than when gas is used.

How are they calculated and what exactly do the AGL Pass-Through Charges cover?

Your AGL Pass-Through Charges are exactly the same regardless of which natural gas marketer you choose.  These charges are calculated by AGL and regulated by the Georgia Public Service Commission.

AGL Pass-Through Charges vary by month and are independent of your current month’s gas usage. They will vary by month and tend to be higher in the winter months.

What are the factors AGL uses to calculate your monthly charges?

The AGL charges include:

-Customer Charge: A fixed monthly fee for gas connection to your home or business.

-Ancillary Service: Covers the cost of AGL to read your meter.

-Social Responsibility Fee: Covers the cost of funding the Senior Citizens’ Discount Program for low-income customers. (This does not apply to customers who receive the senior citizens’ discount.)

-Strategic Infrastructure Development and Enhancement (STRIDE): Covers the cost of specific Georgia Public Service Commission-approved programs to maintain the integrity and reliability of the AGL pipeline system.

What charges are based on your DDDC?

-Dedicated Design Day Capacity (DDDC): A charge that recovers costs associated with delivering gas to your home or business.

-Peaking Service: Covers the fixed cost of operating company-owned above-ground storage facilities. This ensures an adequate supply of gas on the coldest days of the year. This service is only charged to customers in certain areas of the state.

-Franchise Recovery Fee (FRF): Recovers fees paid by AGL to local governments for the use of public rights-of-way for natural gas lines and other facilities.

-Environmental Response Cost (ERC) Recovery Fee: Recovers expenses related to cleanup of former manufactured gas plant sites.

For more information, visit Gas South’s Frequently Asked Questions or AGL’s Guide to Atlanta Gas Light Charges.

Author: Lauren Tuten

Lauren is an analyst in our Supply & Risk Management department and is responsible for purchasing gas, asset management, and customized pricing for commercial and industrial accounts. Lauren has been with Gas South for more than a year, and before joining the Gas South Team she taught High School mathematics for five years. Lauren graduated from the Georgia Institute of Technology and has a bachelor’s degree in Management.

20 thoughts on “Natural Gas 101 – AGL Pass-Through Charges”

  1. I have Gas South & have been very happy with the service but reading the note from Cobb Emc which I have don’t believe I am getting the 2% discount,I do get the early payment discount BUT all discount realy helps

    Thank you
    Sadie

  2. Thank you John and Sadie for reading! Sadie, we have reached out to you via email to help you with your questions. Stay tuned for more Natural Gas 101 articles soon.

  3. Speaking as a guy across the pond who has to pay the gas bill, I really wish we had a blog like this over at Detroit Edison (our gas company). The outreach really helps to explain things. Kudos to you guys. We just get a phone number to call and a website that barely works.

    James in Detroit, MI

    1. Thanks for reading and for the feedback, James! We appreciate it. If you have any ideas for future blog topics, please let us know!

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  5. Good afternoon Lauren,

    I just got my January bill and my AGL pass through charge is $34.76 My gas is 86.14….Plus I have to pay for customer service and tax. Tax I know can’t stop that. But why is the pass through so high. My husband and I are retired we are careful about the temp in the house. Is this a normal charge? its almost 1/2 of my bill.

    Please let me know if there is anything we can do to lower that charge.

    Thank you.

    1. Adele, thank you for your comment. I’ll be sending you an email to the address listed with your comment to try to help. Thank you!

  6. I have never in my life had such an issue with a gas company. Not only did my bill deceive me saying I owe less than I did then this company has added on late fees when my bill told me it was lower and I paid exactly what was on my bill. On top of that the only thing we have on gas is hot water and our bill is almost $100 a month for a small 2 bedroom apt where only 2 people live? This is outrageous and on top of that we have this “pass through charge” which is an extra $20 every month!!! I am outraged at this company!!!!!

    1. Sarah, thank you for your comment. I’ll be sending you an email to the address listed with your comment to try to help. Thank you!

  7. I received my “Friends and Family” renewal offers from you and was disappointed that after all these years with you, you offer me a 12 or 18 month fixed rate plan that is twice the cost of your published 6 month fixed rate plan on http://www.gasgeorgia.com. You state that I MUST choose a 12 or 18 month fixed rate or pay the higher variable rate. I don’t HAVE to do either because I could CHANGE carriers. You have 2 competitors with LOWER per therm rates for 12 months fixed AND why am I paying a AGL fee for reading meter/maintenance and ANOTHER customer service fee to you???? I hate utilities, you get shafted by everyone double dipping into your wallet.

    1. Hi Kurt, thank you for your comment. My colleague tried to call the phone numbers on your account to try to help, but they are not working. Please email rachael.sejnoha@gas-south.com the best phone number to reach you so we can help. Thank you!

  8. I just received my 2nd gas south bill. I do not recall hearing about the AGL fee when I signed up. On my 2nd bill the charge was $20.71 (August fee) not including taxes and customer service fee, my gas charges was $5.34, and what happened to the $5 credit for 5 months and will the AGL fee be that amount every month?

  9. Hi,
    My husband and I are retired on limited social security income and also on federal food stamp program. Although we are locked into a good rate, I am wondering if other discounts are available for families such as ours. A reduction in customer service fee or monthly connection fee would be a help. It is over half our bill. Any advic3e would be welcome. Thank you!

  10. My partner and I only have gas charges of 50 cents (1.02 therms of gas), but are paying 19.71 in an AGL pass through charge. This is gross. We literally are only using 50 cents worth of gas. Why is the AGL so high on 50 cents of gas? This makes absolutely no sense to me. How can I get that down?

    1. Hi Holly – Thanks for your comment. Please email social.media@gas-south.com with your contact information, including your account number and the best phone number where we may reach you. We’ll look into your account and reach out to you.

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