April 2004

Understanding Your Gas Bill
Most consumers are concerned with one thing each month when they receive their natural gas bills - how much they have to pay.

It's not always fun writing out that check each month. Walton EMC Natural Gas wants customers to understand what they're paying for.

 

Sometimes it looks intimidating when you look at the total amount. Since the total amount due accounts for more than your gas consumption, it makes sense to break down your bill into the different charges.

 

During the colder months, the majority of your bill is the gas used. Another part of the amount due is the Atlanta Gas Light Company (AGLC) base charge, which is passed through to the customers without modification. Finally, there is a customer service charge and taxes.

 

The AGLC base charge is comprised of several different fees. First, you have an AGLC customer charge, which is a fixed monthly fee that covers your account's handling costs. This varies for each class of customers depending on the meter, regulator and service lines.

 

You can find a column on your bill labeled DDDC. The DDDC factor stands for dedicated design day capacity. It's based on your usage from the coldest day of the previous year. All customers have a different DDDC factor, because all customers use different amounts of gas each month.

 

This is one reason why you shouldn't compare gas bills with a neighbor or friend. Customers' usages, as well as their base charges, differ for each individual account.

 

The DDDC factor stays the same for the year until it's re-evaluated in April to become effective the following August. However, the DDDC charge included in the AGLC base charge varies based on the billing month. This results in higher base charges in the winter and lower base charges in the summer.

 

The base charge also includes charges for specific tasks, including meter readings. AGLC reads all the meters, not Walton EMC Natural Gas. This is why it's part of AGLC's base charge.

 

When you examine your bill, your consumption is listed in CCFs (100 cubic feet). If you're heating your house with gas, the higher the heating degree days (HDD) during the current billing period, the higher your consumption will be.

 

You may be wondering how HDD is calculated. When the average daily temperature falls below 65 degrees Fahrenheit, heat is needed. More heat is needed for each degree the average temperature drops. Each degree below 65 is equal to one heating degree.

 

For example, if the average temperature is 60 degrees, then the HDD would be five. Heating is generally necessary when the average temperature drops below 65 degrees, causing your gas consumption to increase.

 

Remember each month when you receive your bill, you're actually paying for gas consumption from one to three weeks prior to the billing date.

 

Think about what the weather was like during the actual billing period and what your consumption was, instead of what it would be on the day you receive your bill. In some cases, this could be dramatically different, especially during the February and March billing periods.

 

So the next time you open your bill, break it up into sections: your consumption, AGLC's base charge, the customer service charge and taxes. This will make it easier for you to determine how much you're paying for gas usage.

 

Walton EMC Natural Gas wants you to understand your bills so you know where your money is going.

Read other articles from the April issue:

	Power Up Your Generator with Natural Gas
	Gas Up the Stove
	Gas News
	Did You Miss Us Last Month

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