|
Time to take a look at what type of natural gas prices you want to pay per therm, and how long you want to pay it. Knowing those two things will determine what plans are available to you, and they both play a role in what you pay each month. But first, you've got to ask yourself – are you the type of person who is okay with the upward and downward movement of the market? Or are you someone who doesn't like surprises? That's a call only you can make.
A variable rate plan has a per-therm rate that will go up or down each month without prior notice. It may be lower than a fixed rate plan when you choose your variable plan, but your per-therm rate may rise any time fuel prices increase. If natural gas prices stay low, and you keep your usage in check, you may win with this type of plan.
With a fixed rate plan, per-therm price remains constant for a fixed period of time. Fixed rate plans generally require that you remain on the plan for a set length of time or be assessed a cancellation penalty for early termination. If you have a fixed rate plan, you don't have to worry about your therm rate changing for the length of your contract.
Some marketers offer senior citizens discounts to consumers 65 years or older. Some plans are available to all senior citizens, while others are based on income limits.
Atlanta Gas Light offers qualified citizens a discount off their Atlanta Gas Light base charge to help lower utility bills. Ask your marketer if you think you may qualify. A senior citizen's discount is either $14.00 or the total amount of the Atlanta Gas Light base charge, whichever is less. Make sure you ask your marketer.
Generally speaking, the longer you commit to a rate or plan, the lower the natural gas rate. Many marketers will offer a one-or-two-year term for specific plans. However, this is not always the case. And like the Coach always says, ask your marketer to explain your rate term options.
Just like a game plan impacts every play you call, the rate plan you choose affects how much you pay each month in a number of different ways. Plan type can have a ripple effect on certain charges that make up your total bill. Understanding this will help you strategize and formulate a game plan that can lead to lower natural gas prices.
A therm is a measure of the amount of natural gas you have used. The per-therm rate is the amount a marketer charges you each therm. The plan you pick has a direct result on the per-therm price you pay. Your current per-therm price is listed on your bill. And you can compare the per-therm rate of different plans from each marketer at the Georgia Public Service Commission's website.
This is what a marketer charges you to maintain and service your account. This charge is not the same for every customer. Your marketer adjusts this based on your plan type, credit score or payment history. Some plans come with a lower customer service charge.
Some marketers run specific promotions or offers during key parts of the year. Some promotions may or may not be available for all price plans. A marketer may or may not suggest all the promotional rate plans available when you call. Therefore, it's always a good idea to ask if there are any current specials or promotions being offered.
Regardless of your plan, a few other charges will appear on your bill.
When you receive your natural gas bill each month from your marketer, a portion of the bill will include a base charge from Atlanta Gas Light. This charge is regulated by the Georgia Public Service Commission. The base charge is calculated using a factor known as the DDDC, Dedicated Design Day Capacity, and represents the cost of delivering gas to your home, pipeline maintenance and meter reading. Base charges are unique to each household and are calculated by how much gas is used during the coldest period of the prior year. This ensures that there will be enough pipe and storage capacity to meet every customer's need in cold weather. The charge will not vary should you choose another marketer.
The Dedicated Design Day Capacity is a component of the Atlanta Gas Light charge and is based on the amount of natural gas you use on the coldest day of the year. It is part of the formula that determines your AGL Base Charge. This charge is recalculated each fall and can be impacted if you take conservation measures.
|
