Explaining Annoying Gas Charges and Fees
When looking at the cost of a natural gas plan, many of us never see beyond the per therm rate. This is a problem because Georgia gas companies factor in other charges and fees into gas plan costs. The truth is, some of these costs are trickier than others. So, we want to make sure more natural gas consumers see the bigger picture. That’s why today we’re telling you how to watch out for three annoying GA gas plan costs.
The Auto-Renewal Gas Plan Costs
Maybe you’ve noticed that the per therm rate for fixed rate plans tends to be a lot lower than standard variable per therm rates. But did you know that many fixed rate plans automatically renew? And at the end of the term when they do, they often enroll you into a standard variable rate plan? That means if you aren’t paying attention or are throwing away notices from your gas provider, you could end up paying way more per therm for months!
Let’s look at Gas South, as an example. This month, you can get a 12 month fixed rate plan for $0.730 per therm. Their standard variable rate, on the other hand… well, according to the Georgia PSC, it’s $1.99 this month. That’s close to three times higher than the fixed rate.
You can avoid this cost just by reading and understanding the terms of your natural gas plan. Also, be sure to mark your calendar for the last month of your fixed rate term. That way, you can shop the best natural gas provider fixed rate plans before getting hit with the variable rate.
The Early Exit Gas Plan Costs
When you’re already on a fixed rate plan, it can be tempting to want to leave early if rates drop significantly. This can happen if you locked-in to your rate when rates peak. That tends to happen during the dead of winter or a period of economic instability. But typically, you aren’t going to want to make that switch. Why? Because pretty much all fixed rate natural gas plans come with an ETF, or Early Termination Fee. This is a fee you pay to leave your contract early. The ETF on some fixed rate plans can be as high as $200. In other words, the savings you get from switching to a cheaper rate would have to be significant to outweigh the ETF.
Again, by reading the plan’s terms of service, you’ll know what to expect. And that could mean staying with your gas provider until the end of term.
The Base Charge Gas Plan Costs
There’s a part of your natural gas bill each month that isn’t based on how much gas you use… kind of. Let me explain. You pay per therm you use; that’s your supply charge. You also pay the utility, Atlanta Gas Light, for costs related to infrastructure and maintenance; that’s your delivery charge. Part of the delivery charge is called the Dedicated Design Day Capacity (DDDC). This number is based on how much gas you used on the coldest day of the previous year.
In the current year, we never know what day the DDDC will fall on. But we can still take measures to lower our DDDC. If you lower your natural gas usage with better energy efficiency, your DDDC will go down, too. Do things like beefing up insulation, sealing windows and doors, installing a smart or programmable thermostat. You can also invest in new, energy efficient appliances. Lowering your natural gas use without sacrificing comfort will also lower the supply side of your bill!
The take home lesson today is, be sure to read and understand your terms of service so you can avoid or minimize annoying gas costs. You can also be sure that it’s easy to find a cheap natural gas rate when shop with us at https://www.georgiagassavings.com.