Understanding AGL Pass-Through Charges
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As a natural gas customer, you may see a line item on your monthly bill called “AGL Pass-Through Charges” or “AGL Base Charges.” Have you ever wondered what those charges are?
These charges can change, so we’ve pulled together some information to help you understand what AGL pass-through charges are, why they’re on your bill and how they affect your costs. With this information, you can make informed decisions about your natural gas choices and better manage your costs.
What Is AGL?

Atlanta Gas Light (AGL) is the utility company responsible for maintaining the infrastructure that distributes natural gas to business and residential customers. As a deregulated energy market, Georgians can choose their natural gas marketers. Learn more about the difference between energy suppliers vs. utilities.
What are AGL Pass-Through Charges?
AGL pass-through charges are fees the utility charges to cover the costs of building, operating and upgrading the natural gas delivery system. AGL owns and maintains the gas pipeline infrastructure. It also invests in building new pipelines to meet future demand, replacing aging equipment and making sure that gas service to homes and businesses is reliable and safe.
AGL gas delivery charges are approved and regulated by the Georgia Public Service Commission. Your gas marketer has no role in determining the amount of these charges. To understand which gas marketer has the best rate, look at the price per therm they offer, plus any service fees. Do not include the AGL pass-thru charge, as that fee is the same for every marketer.
How AGL pass-through charges appear on your energy bill


What Do AGL Pass-Through Charges Include?

To really understand AGL Base Charges, take a look at the components. Here is a breakdown of all components included in the charge:
Flat fees
The following fees are the same for every customer no matter which marketer you select:
- Customer charge: This monthly fixed fee covers administration and operations, including meter reading, billing and customer service.
- Ancillary service charge: This covers support services that ensure reliability, balancing supply and demand.
- Social responsibility fee: This charge pays for assistance programs for low-income customers.
Dedicated Design Day Capacity (DDDC) fees
The DDDC is an estimate, based on your usage history, of how much gas must be generated and delivered to your home on the coldest day of the year. This fee will be a different amount for each customer.
The utility uses the DDDC to calculate your share of costs, such as:
- Firm distribution charge: The cost for uninterrupted, guaranteed service through the AGL pipelines.
- Peaking service: The cost of the backup supply when demand is extreme.
- Environmental response costs charge: This funds environmental cleanup of past operations.
- Franchise recovery fee: This covers the fees paid to municipalities for the right to run pipelines across public spaces.
Why AGL Pass-Through Charges Vary Each Month
AGL natural gas delivery charges fluctuate. Instead of billing the same amount throughout the year, the charge amounts vary by season. You may pay more during colder months when usage is highest. This gives the utility the money to cover costs during peak demand. Even if your natural gas usage is the same in the summer and winter, you’ll likely see a higher amount billed when it is cold.
Can I Avoid AGL Pass-Through Charges?
AGL pass-through charges are mandatory fees you cannot avoid. All suppliers charge them, so switching is not a tactic for how to avoid AGL pass-through charges. You can, however, reduce what you spend on natural gas. Set your thermostat for efficient heating in winter, and complete a home energy audit to discover more ways to reduce your energy usage.
Switching marketers won’t help you avoid AGL pass-through charges, but choosing the right marketer can help you find a range of energy plans with the best competitive rate, so you can take control of your energy budget. For example, with a fixed-rate plan, you’re protected from market and seasonal spikes in energy prices.
Explore Georgia Natural Gas Options with Constellation
As a trusted natural gas marketer in Georgia, Constellation provides the highest level of customer service and a variety of plan options. Explore Constellation’s natural gas plans in Georgia for competitive rates and options that fit your needs.