Expect Higher Bills with AGL Rate Hike
In Georgia you have the power to choose your natural gas supplier. Your natural gas utility, however, is out of your control. If you are in the Atlanta Gas Light service area, you will soon see a change in your gas bill. This is because the Georgia PSC approved an increase in the charges for the gas utility earlier this month. And more changes could be on the way. So, let’s dig into the PSC approved AGL rate hike and how it affects you.
What Are AGL Charges For?
You might pay a natural gas provider, like Constellation or Xoom, for the gas you use at home each month. However, it is AGL that maintains the pipeline network and gets the natural gas to your house. So, on your natural gas bill, the AGL pass-through charges cover those costs of day-to-day operations. AGL also has to do regular overhauls to parts of the system to keep up with increasing demand and to maintain a reliable and affordable gas supply in our state. Those kinds of projects are expensive. Therefore, AGL passes those costs on to you with more charges.
What is the Most Recent AGL Rate Hike?
The most recent hike in AGL rates is for the System Reinforcement Rider (SRR). According to the utility, the money will go towards increasing the capacity of the delivery system with more and larger piping. Getting into the specifics, the SRR on your gas bill will go from $0.32 to $1.15. With AGL’s 1.7 million customers, the rate increase gives the company an additional $16.9 million per year.
The increase in this charge is part of the utility’s three-year Integrated Capacity Development Plan (i-CDP). So, hopefully the charge will stay steady for at least the next three years.
More Rate Hikes to Come?
On top of the SRR increase, the PSC also said yes to adding another surcharge to AGL natural gas bills. The new charge covers costs for county, municipal, and transportation department related natural gas projects. Although the PSC already said yes to adding the charge, AGL will file a request for the amount later this month. These changes would go into effect in January 2025.
While increased charges on your natural gas bill are not welcome news for any of us, the good news is that fixed rate natural gas prices are still low. Find a great rate and save money on your natural gas bill today at https://www.georgiagassavings.com.