AGL Pass-Through Charges Explained

Understanding your monthly energy bill can be a challenge when you don’t know much about natural gas. In particular, the “AGL pass-through charge” can be confusing for most natural gas consumers. What is this charge and why are you paying it? We’re breaking down all the details below, plus providing 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 more than 1.6 million natural gas consumers in Georgia. While Atlanta Gas Light doesn’t sell gas directly to customers, they are responsible for gas delivery, pipeline maintenance, and meter readings. Watch this video to learn more about AGL:

What Are AGL Pass-Through Charges?

The funding for AGL’s services comes from “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 no matter which natural gas marketer you choose and is regulated by the Georgia Public Service Commission. Though the charge appears on your bill from your chosen marketer, the entire amount goes to Atlanta Gas Light.

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: The 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 ways you can lower your monthly natural gas bill. Saving on natural gas is easier than you may think, things as simple as changing your thermostat setting or switching to smart home technology can make a big difference on your energy bills.

You can also decrease your natural gas bills while lowering your carbon footprint at the same time. There are simple things to do around the house that are good for your wallet and the planet. Easy fixes such as lowering your water heater temperature, installing water-saving faucets and shower heads, and repairing leaky faucets can make a big difference in your annual energy bills.

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


Save on Natural Gas with SCANA Energy

If you’d like even more energy savings along with quality customer service, sign up with SCANA Energy today. It only takes a few minutes to sign up. Call 1.877.467.2262 to schedule a turn on date or start service with SCANA today.

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