You open your gas bill in January. You expect a jump because, well, it’s freezing outside and the heater is humming. But then you see it: a massive chunk of change labeled Atlanta Gas Light pass through charges that has almost nothing to do with how many therms you actually burned. It feels like a hidden tax. Honestly, it’s the number one reason people call their gas marketers to complain.
But here’s the kicker. Your marketer—whether it’s SCANA, Gas South, or Constellation—doesn't actually keep that money. They are basically just the middleman. They collect those fees and hand them straight over to Atlanta Gas Light (AGL).
Why? Because in Georgia’s deregulated market, AGL owns the pipes, but they aren't allowed to sell you the gas. They just deliver it. These charges are the "toll" you pay for using their multi-billion dollar highway of underground pipelines.
The "Coldest Day" Trap: How Your Bill is Really Built
Most people think their bill is purely based on usage. It isn't. A huge portion of the Atlanta Gas Light pass through charges is determined by something called the DDDC, or Dedicated Design Day Capacity.
This is where it gets a little technical, but stay with me. Every year in August, AGL looks at your meter. They aren't looking at your average use; they are looking at how much gas your house demanded during the absolute coldest peak of the previous winter.
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They use this to calculate your "load" on the system. If you have a massive house with three furnaces and a gas-heated pool, your DDDC is going to be sky-high. Even if you go on vacation for all of January, that capacity was "reserved" for you on the pipes. You pay for that reservation all year long.
Breaking Down the Line Items
If you actually dug into the regulatory filings from the Georgia Public Service Commission (PSC), you’d see that this "base charge" isn't just one fee. It’s a cocktail of about seven different things:
- The Customer Charge: A flat monthly fee (usually around $20) just for the privilege of having a meter attached to your house.
- Ancillary Service: This covers the guys who come out to read the meter. It’s usually less than a dollar, but it’s always there.
- Social Responsibility Fee: You’re helping pay for the senior citizen discount program. Unless you are the one receiving the discount, you’re funding it.
- Environmental Response Cost: This goes toward cleaning up old "manufactured gas" sites from back in the day before natural gas was the norm.
- Franchise Recovery Fee: AGL has to pay cities and counties to run pipes under public roads. They pass that cost right to you.
Why Summer Bills Feel Like a Scam
Have you ever noticed that in July, when your furnace hasn't kicked on in months, your gas bill is still $35?
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It’s annoying. You used maybe two therms for your water heater, yet the Atlanta Gas Light pass through charges make up 90% of the bill. This happens because AGL spreads the cost of maintaining the infrastructure across the whole year.
However, they don't spread it evenly. The PSC allows AGL to weight these charges. You pay a much higher percentage of your annual infrastructure "toll" in the winter than in the summer. For instance, in 2026, the billing cycle for February might account for nearly 20% of your total annual capacity charge, while June might only be 3%.
Even so, that "small" June percentage often dwarfs the actual cost of the gas you used.
Can You Actually Lower These Charges?
Here is the blunt truth: you cannot shop around for lower Atlanta Gas Light pass through charges.
It doesn't matter if you switch from Georgia Natural Gas to a smaller marketer. AGL is a monopoly. They are the only ones with pipes in the ground in this region. The rates are set and locked in by the five elected members of the Georgia PSC.
But you aren't totally helpless. Since a big part of the charge is based on that DDDC factor (your peak usage), the only way to lower it is to lower your "peak" demand.
- Seal the Leaks: If your house leaks heat like a sieve, your furnace runs harder on the coldest day of the year. That spikes your DDDC for the entire following year.
- The Nuclear Option: If you switch your water heater and furnace to electric (heat pumps), and you eventually "kill the meter," the charges disappear entirely. But that's a massive upfront investment.
- Senior Discounts: If you are 65 or older and make less than a certain income (usually around $14,355 to $25,000 depending on the current year's threshold), you can get a $14 monthly credit. That wipes out most of the base charge.
The 2026 Reality
As we move through 2026, the Georgia PSC continues to review AGL’s "Rate Adjustment Mechanism." This means these pass-through charges aren't static. They fluctuate based on how much AGL spends on pipe replacement and safety upgrades.
When you see "AGL Base Charge" or "Pass Through" on your bill, don't blame your gas marketer. They are just the tax collector in this scenario. The real "price" of your gas is the therm rate you signed up for; the rest is just the cost of living in a state with a complex, deregulated energy grid.
If your bill seems impossibly high, check the DDDC factor listed on the top corner of your statement. If that number is significantly higher than 1.30 for a standard-sized home, it might be time to look at your insulation—or accept that your heated towel racks are costing you more than just the gas they burn.
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Next Steps for Homeowners:
Check your most recent bill for the "DDDC Factor." If it has increased since last year, look back at your usage during the last "polar vortex" or extreme cold snap. Improving your attic insulation before next winter is the only proven way to influence how AGL calculates your specific share of the system costs in the future. Additionally, if you're a low-income senior, contact your marketer immediately to apply for the $14.00 monthly AGL credit, as it is not applied automatically.