Posts of Author ‘Lauren Tuten‘

Mar
1
2013
4:46 pm

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.

 

 

 

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Oct
31
2012
11:24 am

Natural Gas 101 – DDDC Factor

In the ‘Natural Gas 101’ series here on ‘The Hot Spot’, we will be writing different posts to help educate you on various natural gas issues.

What is DDDC?

Have you ever looked at your natural gas bill and wondered how it all comes together? One line of your bill includes your DDDC which stands for Dedicated Design Day Capacity.  The DDDC Factor is a calculation done by Atlanta Gas Light Company (AGL) and is unique to each home or business. Basically, AGL is responsible for having enough pipe and storage capacity to meet every customer’s need during extreme cold weather conditions. For most residential customers and small businesses, natural gas is used for heat. And when it’s cold outside, you’ll want enough natural gas to keep your home or business warm. Your DDDC factor indicates how much natural gas deliverability is reserved (or ‘dedicated’) for your home or business if Atlanta were to reach an average daily temperature of 10oF (a ‘design day’).  You’ll see the DDDC Factor on your bill because it is used to calculate a customer’s AGL Pass-Through Charges.

Why did my DDDC change?

AGL recalculates and updates the DDDC at your location annually, so each September you will see an updated DDDC on your bill.  During this yearly calculation, AGL reviews the past gas consumption and usage pattern at your home or business. The most important influence on your DDDC calculation is how much gas was used last year during the coldest period of the year compared to your typical summer usage (if any).  A calculation is done to determine how sensitive your consumption is to cold weather and then used to set your DDDC indicating how much capacity should be reserved for your home or business.  Because your DDDC affects the AGL Pass-Through Charges, you may see a change in the amount of your bills year to year if your DDDC is adjusted.

Remember, your DDDC is tied to your location rather than you. So, if you move, your DDDC will be changed to the DDDC of your new location and then will be reset, as usual, in September.

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

So, what do you want to learn about next?

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