And Why am I Paying It?
Energy prices have already reached eye-watering heights this season. So we know all you natural gas customers are scrutinising your power bills with a real fine-toothed comb. The rate looks good, you’ve locked in the best provider… But wait! What’s this dang AGL pass through charge? Why am I paying it? And who’s AGL anyway? Let’s have a look…
Why This Charge if I’m not Using Gas?
The thing to remember as a natural gas customer is that you’re not just paying for the gas you use. You’re also paying to get the darn stuff to your house! And that’s the job of Atlanta Gas Light (AGL), who owns and operates the natural gas pipeline network. Subsequently, they pass on some of their operational costs between the people who benefit from their infrastructure. That includes you, the customer!
Now for efficiency’s sake, AGL doesn’t send that cost to you in a whole separate bill. Instead they send it to your provider, who ‘passes it through’ to you by tacking it onto your monthly bill. Hence, ‘pass through charge’ – although you might see it referred to as a base charge, or an AGL charge.
But you won’t see a detailed breakdown of these operational costs in your bill. So let’s take a look at them here.
AGL Pass Through Charge Breakdown
Here’s what goes into your pass through charge:
- Customer Charge: this is a fixed monthly cost that pays for your home’s gas connection
- Ancillary Service: this covers the cost of meter readings
- Firm Distribution Charge*: the cost of getting gas delivered to your home
- Peaking Service*: this covers the cost of operating AGL’s storage facilities above ground on the coldest day of winter (and only applies if you’re in the Valdosta, Macon, or Atlanta delivery areas)
- Social responsibility fee: this is a contribution towards the cost of funding AGL’s senior citizen discount program (it doesn’t apply if you receive this discount yourself!)
- Environmental Response Cost Charge*: this is your contribution towards any costs incurred by environmental clean-ups carried out by gas plant sites
- Franchise Recovery Fee*: this covers the fees AGL has to pay to your local governments if they want to put facilities and gas lines on public rights-of-way.
*All these are affected by your home’s Dedicated Design Day Capacity (DDDC). Now, I bet you’re dying to know…
What’s a Dedicated Design Day Capacity (DDDC)?
Your DDDC represents the common cost of getting gas to your home. AGL bases it on the demand your household places on the system on the coldest day of the year.
By having it factor into these four components of the base charge, AGL can ensure that customers putting a greater strain on the system contribute more than those using it less.
And finally, the extent to which your DDDC affects the base charge will change month to month, too. It will cost a little less in summer, and a little more in winter. But that’s just so it aligns better with your seasonal bill patterns.
AGL Pass Through Charge, Explained!
In conclusion, if this all sounds a little dizzying – don’t worry! You can calculate your home’s pass through charge using AGL’s handy spreadsheet, if you like. But what is the AGL pass through charge most importantly? Since AGL has a monopoly on gas delivery, it’s just something you have to budget in.
And you can find more money-saving tips to help you do that at www.GeorgiaGasSavings.com!
4 thoughts on “What is the AGL Pass Through Charge?”
Trying to sign up to get AGL Pass-Through Charge for Senior Discount
I have ask 3 Time for a form to field out have not receive one yet.
I am 69 years old Date of birth **/**/19**.
It was in My Mother name for many years. Now I change it in My Name. Now I like to get My Senior Discount on The AGL My Bill
Hi Joyce,
You can download the form here: http://www.psc.state.ga.us/consumer_corner/AGL-senior_discount_app.pdf
Just print it out, fill it out, and mail it to the AGL address on the form.
You can also check out more information on How to Apply for the Senior Citizen Discount.
Everything in my home is electric. I have no gas usage but I’m charged $96 a month just for a meter? Come take it. This house has all electric appliances even down the the heater and water heater. The house has zero need for your services. Why do I have to pay $96 a month if I don’t have any gas?
Hi Deborah,
Completely understand your frustration. But, just to be clear, Georgia Gas Savings has nothing to do with the gas meter on your home. That belongs to AGL.
That said, if your home doesn’t use natural gas and you wish the meter removed, then contact AGL and have them disconnect it from your home. If in the future you or the next owner wishes the meter reconnected, they’ll have to pay AGL to do it.
cheers —