Why Changing Gas Suppliers Won’t Remove the Atlanta Gas Light Charge

A lower natural-gas rate can reduce a North Atlanta household’s heating costs. But customers on Atlanta Gas Light’s network will still see an Atlanta Gas Light charge after switching suppliers. That payment covers the delivery system serving the home, separate from the gas purchased through a marketer.

With winter approaching, understanding that distinction helps answer two common billing questions: why a bill arrives when gas use is low, and why a fixed-rate contract does not guarantee the same total every month.

One bill pays for two different jobs

Georgia opened Atlanta Gas Light’s territory to competition in 1998. The company retained the pipes and delivery infrastructure, while certified marketers took over selling gas to customers. The Georgia Public Service Commission regulates AGL’s distribution charges; marketers set their own gas prices. That division remains the foundation of Georgia’s competitive gas system.

A residential bill generally combines the AGL base charge, the charge for gas consumed, a marketer’s customer-service fee and taxes. The consumption charge multiplies the amount used, measured in therms, by the plan’s price per therm. The other charges help explain why the advertised gas rate alone cannot predict the amount due.

For example, a hypothetical 10-cent-per-therm reduction saves $10 when a household uses 100 therms. It does not reduce every other line on the bill by the same proportion.

Why the delivery charge survives a switch

The Atlanta Gas Light base charge supports pipeline maintenance, meter reading and the capacity needed to deliver gas. Changing marketers leaves those responsibilities with AGL, so the switch itself does not change that charge.

“Base” does not mean every household pays an identical amount. AGL calculates charges using information specific to the property, including usage patterns and gas appliances. One component, Dedicated Design Day Capacity, reflects the home’s projected demand on the coldest day of the year. The calculation is updated annually.

The bill therefore pays for more than the gas consumed during the latest billing period. A monthly connection charge remains part of the delivery cost even when consumption is low.

A fixed rate fixes only part of the bill

On a fixed-rate plan, the price per therm stays fixed for a specified term. On a variable plan, that price can change monthly. Neither description means the household will use the same amount of gas each month. The PSC’s October 2026 comparisons separate those plan types and provide estimated bills for comparison.

A furnace running longer can raise consumption even while the contracted rate stays unchanged. Delivery charges and other fees also remain part of the total.

Before switching, compare the customer-service fee, contract length and any cancellation penalty alongside the gas rate. For a quote tailored to the home, provide the marketer with usage in therms and the property’s DDDC factor from an existing bill. Those details make the comparison more useful than a headline rate alone.

Sugar Hill customers have a different starting point

The competitive-marketer arrangement applies to AGL’s service territory, not every gas customer in North Atlanta. Sugar Hill operates its own natural-gas utility, with applications and account service handled through the city. Municipal gas prices are not regulated by the PSC.

For a household moving between utility territories, that changes the first step. Establish which system serves the property before shopping among marketers. An offer intended for AGL customers is not a universal option for every nearby home.

For existing AGL customers, the useful comparison is the total cost under the proposed plan, using the home’s own consumption—not simply which company advertises the lowest price per therm.