AGL Pass-Through Charges Explained

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Understanding your monthly energy bill can be a challenge when you don’t know much about natural gas. The “AGL pass-through charge” in particular can be confusing for natural gas consumers. What is this charge and why are you paying it? We’re breaking down all the details below, including other ways to save on your monthly natural gas bill.

What Is AGL?
Atlanta Gas Light (AGL) owns the pipeline system that delivers natural gas to your home or business. While Atlanta Gas Light doesn’t sell gas directly to consumers, they are responsible for gas delivery, pipeline maintenance and meter readings.

What Are AGL Pass-Through Charges?
The funding for AGL’s services comes from so-called “AGL pass-through charges,” which are billed to natural gas customers each month. This charge, also known as the “AGL base charge,” appears on your bill regardless of which natural gas marketer you choose and is regulated by the Georgia Public Service Commission.

Pass-through charges can vary each month, with the highest charges billed in the winter. AGL bills the full pass-through charge each month regardless of how much natural gas consumers use that month or the number of days they received service.

AGL calculates this charge using several factors, the names and definitions of which aren’t always intuitive, including:   

  • Ancillary Service: The cost of reading your meter
  • Dedicated Design Day Capacity: Cost to deliver gas to your home on the coldest day of the year. This charge is recalculated annually and factors in your usage patterns.   
  • Environmental Response Cost (ERC) Recovery Fee: Expenses relating to cleanup of former manufactured gas plant facilities
  • Franchise Recovery Fee (FRF): Fees paid by AGL to local governments for the use of public rights of way for natural gas lines and other facilities
  • Social Responsibility Fee: The cost of funding the Senior Citizens Discount Program for low-income customers
  • Peaking Service: Covers the fixed cost of operating company-owned, above-ground storage facilities

Other Ways to Save on Your Bill
While you can’t change your AGL pass-through charges, there are other ways you can lower your monthly natural gas bill. Adjusting your thermostat settings each season and investing in smart home devices are two simple ways to start.

Have more questions about natural gas or looking for energy-saving tips? Check out our natural gas FAQs.

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