Deregulation of natural gas companies in Georgia allows business owners and residents to choose their natural gas companies from three types of service providers. Depending on location, customers can select an investor-owned local distribution company, a natural gas marketer or a municipal gas system. The state-wide deregulation of natural gas companies was adopted by the Georgia General Assembly in 1997 to allow competitive marketers the opportunity to provide service to consumers. This legislation changed the role of Atlanta Gas Light from selling and distributing natural gas to exclusively distributing natural gas and maintaining the pipelines.
Deregulation has opened the door for a variety of natural gas companies which offer a variety of service and pricing plans. The market-based model means that providers offer competitive pricing, improved service and greater innovation. Based on location, natural gas customers in Georgia can purchase gas from one of three types of providers: an investor-owned local distribution company, a natural gas marketer or a municipal gas system. There are 84 municipal providers in the state and these providers are not subject to Public Service Commission regulation.
When choosing from the numerous companies that offer natural gas service consumers can select from a variety of pricing plans. Variable rate plans charge per therm used, meaning that you pay only for the energy you used based on market rates. This type of plan allows customers to control their billing based on energy conservation and efficiency but leaves them vulnerable to changes in fuel costs. When fuel prices escalate, so does your bill. But if natural gas prices stay low then you are not paying more than necessary for service.
Natural gas companies also offer fixed rate plans which eliminates the fluctuation of billing based on fuel costs. In a fixed rate plan the per therm price remains constant for a set period of time and customers are required to remain on the plan for a pre-determined amount of time. Most companies will assess a penalty if you cancel your plan early. Fixed rate plans ensure that the price you pay per therm cannot change during the length of your contract. Generally speaking, the longer you commit to a plan, the lower the rate.
Regardless of which natural gas company you choose, Georgia residents incur additional charges and fees. Consumers pay a base charge to Atlanta Gas Light which is regulated by the Georgia Public Service Commission. The base charge is calculated using the Dedicated Design Day Capacity (DDDC) and is based on the amount of gas you use on the coldest day of the year. The charge covers the costs of delivering natural gas to your home or business, pipeline maintenance and meter reading. Because this charge is calculated on the highest-demand day of the year, it guarantees that there will be enough pipeline and storage capacity to meet the demands of consumers during the coldest weather. No matter which of the natural gas companies you select to provide your service, your base charge will not change.
MXenergy may also be a choice as your natural gas or electric provider in the following areas surrounding Atlanta GA:
