Breaking Down Your Bill: How Natural Gas Rates Impact Your Total Cost

Turning on the heat, taking a long shower, cooking your favorite meal—these activities all share one trait: natural gas. This is because several appliances—including your furnace, water heater and stove top—are powered by this efficient fuel.

As the seasons change, so does the amount of therms you use. Your natural gas bills during the winter will likely reflect the increase in your usage; indeed, the average natural gas bill in Georgia is highest during December and January. Likewise, your monthly natural gas bills will be lower in the summer months.

But how is your natural gas bill calculated? Well, you’ll have three charges that remain the same (or nearly the same) year-round, including:

AGL Pass-Through Charge: This is a regulated charge that each marketer must collect on behalf of Atlanta Gas Light (AGL) for its services, such as gas delivery, meter readings, and pipeline maintenance. Regardless of which natural gas marketer you choose, this charge is required.
Customer Service Charge: This small, fixed fee covers the cost of servicing and maintaining your account. It also allows us to provide excellent customer support if you have a question or concern!
State and Local Taxes: Sales tax must be applied to your total bill.

While these factors remain constant, you can influence your natural gas consumption charge (here’s how it appears on your bill). This charge, which varies month-to-month, is determined by multiplying the total therms you burned (remember, you tend to burn more in the winter) by your price per therm.

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Your price per therm is based on your natural gas rate plan, which is made up of the following factors:

Fixed vs. Variable: While fixed rates have a set price per therm for the duration of your contract, variable rate prices fluctuate depending on the supply and demand of natural gas.
Contract Length: For fixed rates, your natural gas contract could be anywhere from six months to three years long. Variable rate plans do not require a set contract length, but your rate may change month-to-month.

There’s no “wrong” decision when it comes to choosing your natural gas plan – it depends on your needs and lifestyle. For instance, if you like budgeting out your utilities each month, a fixed rate may be a better decision. We also offer budget billing to help make monthly costs even more predictable.

Do these choices have your head spinning? Don’t fret! While some elements are beyond your control, you can commit to being efficient with your energy – and saving on natural gas where possible. But, of course, still treat yourself to sipping on hot chocolate by a warm fireplace this winter.