What is Atlanta Gas Light's Base Fee?

Have you ever looked at your natural gas bill and wondered what Atlanta Gas Light's Base Fee is? Atlanta Gas Light's Base Fee, also sometimes referred to as Base Charges, reflect Atlanta Gas Light’s costs for maintaining natural gas pipelines and storage facilities, as well as reading your meter each month. Atlanta Gas Light's Base Fee is 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.

If you’re in Georgia, chances are Atlanta Gas Light (AGL) is the utility company that owns the pipeline system that delivers natural gas to your property. Rather than receiving a separate bill from AGL, Atlanta Gas Light's Base Fee is applied and sent to your natural gas marketer 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.

How does AGL calculate my monthly charges?

Atlanta Gas Light's Base Fee is independent of your current month’s gas usage. You will notice that these charges vary month to month and tend to be higher in the winter months. The AGL charges include Customer Charge, Ancillary Service, Social Responsibility Fee, Strategic Infrastructure Development and Enhancement (STRIDE), Dedicated Design Day Capacity (DDDC), Peaking Service, Franchise Recovery Fee (FRF), and Environmental Response Cost (ERC) Recovery Fee.

When will I get charged Atlanta Gas Light's Base Fee?

Atlanta Gas Light's Base Fee is assessed on the 20th of every month for the next month of service. 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 Atlanta Gas Light's Base Fee on each bill monthly as the AGL charges are spread over an entire year rather than when gas is used.

What is the DDDC Factor?

The DDDC factor, or Dedicated Design Day Capacity, is a calculation done by AGL that indicates how much natural gas is reserved (or “dedicated”) for your home or business based on previous gas usage and the demand on the coldest day of the year. AGL is responsible for having enough pipe and storage capacity to meet every customer’s need during extreme cold weather conditions, and this calculation ensures that happens.

How is the DDDC factor calculated?

The DDDC covers the cost of operating the system on the coldest day of the year, and it’s recalculated every year. 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. So your DDDC Factor is calculated using past usage history, the number of gas appliances and additional factors that determine the location’s demand on the system. If you’re a new customer and Atlanta Gas Light doesn’t have 12 months of consumption history, the DDDC is calculated based on the gas equipment used, your square footage and the type of structure.

Why does my DDDC seem to change?

AGL recalculates and updates the DDDC at your location annually. So each September, you’ll see it updated 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 compared to your typical summer usage (if any). AGL calculates how much natural gas you typically need during cold weather, and that that helps set your DDC so they know how much to reserve for your home or business. Because your DDDC affects Atlanta Gas Light's Base Fee, you may see a change in the amount of your bills year to year if your DDDC is adjusted. Remember, your DDDC Factor is tied to your location. So, if you move, your DDDC will be changed for your new location and then will be reset, as usual, in September.

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