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.