How Are Summer Gas Bills Figured?
Don’t understand your summer gas bill? You’re not alone. We’ll take you through what the AGL formula is and how it keeps your winter bills affordable.
No one wants perpetual judgment for their worst mistake. If you do something extreme, you want people to realize it is out of character for you. You wouldn’t want your whole year determined by just one day. However, the delivery charges for your Georgia gas bills are based on how much you use on the coldest day of the year. So why do you pay a higher delivery charge for summer gas bills? Sounds fishy, right? Well, it’s a little complicated so let’s unpack this concept.
Two Parts of Summer Gas Bills
Your natural gas bill has two parts: supply charges and delivery charges. You pay for the gas you use in a billing cycle through the supply charges. This money goes to your retail gas company.
On the other hand, delivery charges go to your utility, Atlanta Gas Light (AGL). They maintain the gas infrastructure including storage facilities, pipelines, and meters. The Georgia Public Service Commission approves the rate AGL charges.
AGL Delivery Charges
The majority of the delivery charge is determined by the Dedicated Design Day Capacity Charge (DDDC). The DDDC is based on the highest amount of gas you used on the coldest day of the previous year. This is because the highest use day puts the most cost on the AGL gas delivery system. Consequently, your DDDC recalculates annually. On your bill, the DDDC is a multiplier for several smaller charges and other fees.
AGL delivery charges are structured to be spread out through the year, so they’re somewhat consistent on a monthly basis. This means that higher gas usage in winter does not result in an excessively large delivery charge at that time. Although winter delivery charges appear on summer bills, this approach helps to smooth out the variability of customers’ gas bills.
The delivery charge also includes a base customer fee that is uniform for all customers. Additionally, it covers fixed expenses for social programs and meter reading, which the DDDC does not impact.
Control Your Georgia Gas Expenses
Though you have little control over the AGL part of your Georgia gas bill, you can pick your retail provider. This ensures your supply charges are as low as they can be. Compare natural gas rates to find the company and plan that works best for you.