Gas Use Goes Down but Bills Stay Up
As temperatures go up, your natural gas use goes down. By summer, your gas use could be near zero. So, why do you still shell out so much money for your natural gas bill? The simple answer is the AGL Base Charge. But many natural gas provider customers get confused by the base charge because of how it’s calculated. So, how exactly does the AGL Base Charge affect your gas bill? Let me explain.
What is the AGL Base Charge?
The natural gas utility, Atlanta Gas Light, operates the pipe network and all the infrastructure that gets gas to your home. They also employ nearly 500 people. This is all part of the service you pay for as part of your gas bill, even though your natural gas supplier is a different company.
According to the GA PSC, your AGL Base Charge specifically includes: customer charge, ancillary service, firm distribution charge, peaking service, social responsibility fee, environmental response costs charge, and franchise recovery fee.
Several of these costs are based on your Dedicated Design Day Capacity (DDDC) factor. This figure represents the amount of gas you use on the coldest day of the previous year. Therefore, households that use significantly more gas will have a higher DDDC factor and higher base charge.
How Much Is My AGL Base Charge?
Your total base charge varies each month. In warmer months, with lower demand, you pay a lower base charge. However, because we tend to use so little gas in these months, the base charge takes a higher percentage of your bill. In other words, by summer most of your bill could be the base charge.
According the PSC Price Charts, this month customers with an average DDDC factor (1.30) will have a base charge of $54.74. That is about 42% of the estimated average bill for 12 month fixed rate plans from our natural gas suppliers this month. Last June, when the base charge is lowest, the average base charge was $33.29 and nearly 60% of the estimated average bill for 12 month fixed rate plans. So, at the end of the day, this makes each unit of natural gas you use more expensive in the summer than in the winter. According to the EIA, this is a well-established pattern.
How Can I Lower AGL Base Charge?
Changing your base charge isn’t easy. This is because it is directly affected by the DDDC factor which comes from your natural gas use on a single day in winter. So, that amount will come and go without your knowing ahead of time. However, if you lower your natural gas use generally, you can lower your DDDC factor, base charge, and natural gas costs across the board.
The biggest impacts on natural gas use are space heating and water heating. Simply lowering your thermostat, especially overnight and when you leave the house, can lower natural gas costs by 10%. Lower your water heater setting to 120°F to save up to 22% on water heating costs. Small sealing and insulation projects also make a big impact on gas use. In addition to lowering gas use to save, find a cheap natural gas rate to lower your costs! Switching natural gas plans is easy when you compare plans with us. Come find the best natural gas plan today at https://www.georgiagassavings.com.