What Is A Pass Through Charge On My Electric Bill?

The actual recorded costs charged (without markup) by a Third-Party Service Provider for the Services delivered are referred to as Pass Through Charges.

What is a pass through charge, and how does it work?

Unexpected increases in wholesale rates for imported water, groundwater management, and electricity services that may be passed on to the consumer when they occur are covered by a pass through charge. Customers will be notified of any additional charges in advance of the effective date, and each additional charge will be listed on each account if the District feels it necessary to pass along unforeseen wholesale rate increases.

Electrical and water importation fees are currently subject to a pass-through tax.

What causes the AGL pass through charge to be so high?

The Dedicated Design Day Capacity Charge (DDDC) is a percentage of your natural gas payment that covers the common expenses of delivering gas to your home on the coldest day of the year, based on your home’s demand on the system.

AGL charges marketers for the capacity (or pipeline space) of the gas that their customers utilize using the DDDC recalculation. The expense of satisfying demand across the gas pipe network on the coldest day of the year is shared by the charge. This includes injecting additional natural gas into the pipeline to regulate system pressure and ensure that everyone has enough gas to heat their homes during peak demand.

What does it mean to have a pass through basis?

A Party making a payment to another Party under this Agreement is only obligated to pay the amount that such Party receives from a third party in respect of such payment obligation to such Person on a pass through basis.

What is the AGL pass through fee?

Have you ever wondered what AGL Pass-Through Charges are on your natural gas bill? Atlanta Gas Light’s Pass-Through Charges cover the costs of maintaining natural gas pipelines and storage facilities, as well as reading your meter each month.

What is the formula for calculating AGL’s gas bill?

Bill forecast will only be accessible if you submit a meter read if you have a basic meter and have joined AGL within the last six months. Keep in mind that your bill prediction is merely an estimate, and your real bill may change. To figure out how much you’ll have to pay, do the following:

  • Based on the meter reading data available, including your reading, we estimate your average daily usage.
  • Temperature, seasonality, and average usage of similar consumers in your area are all factors we consider.

The bill will be sent based on your reading if you supply it within two days of your scheduled bill date.

Bill projections and’since your last bill, you’ve used’ do not reflect any credits we might give you if your meter read is lower than projected. Unless otherwise returned, the credit will be added to your Account Balance and applied to your next statement.

What is the pass-through deduction and how does it work?

The Tax Cuts and Jobs Act includes a tax deduction for owners of pass-through businesses, which is one of the most essential and confusing measures. The deduction is now set to expire at the end of 2025, but Congress has the power to extend it to 2026 and beyond if it so desires. A pass-through firm is one that does not pay taxes directly to the government. Sole proprietorships, partnerships, LLCs, LLPs, and S companies are all common instances. Any earnings or losses from the operation of the business are passed on to the individual owners, who pay taxes on their returns. This is how the majority of small businesses are run.

To be eligible for a pass-through deduction, a business owner must have positive taxable income. Taking all of an individual’s taxable income from all sources, including sources other than the business, and deducting deductions yields the total taxable income for the year. A business owner’s pass-through deduction is limited to 20% of his or her total taxable income.

Why is natural gas in Georgia so expensive?

When it comes to deciding the price of natural gas, supply and demand is a significant factor, and it’s at the root of why prices have risen this yearhigher than they’ve been since a spike in 2008.

Gas and oil firms began employing more effective technologies to harvest natural gas from beneath the earth more than a decade ago. As a result, there was a decent reserve to put away. During this time, demand was also relatively modest. As a result, necessities were covered while prices remained reasonable.

When Hurricane Ida swept through in August, it wreaked havoc, shutting down natural gas production in the Gulf of Mexico by 94 percent, among other things. Despite the loss, there was still a sizable reserve before this summer, but high temperatures drained much of it.

Natural gas is the most common source of energy generation in the United States, accounting for around 40% of all electricity generated by power plants. When the heat wave came, people’s air conditioners went into overdrive, causing electricity usage to rise. Interstate pipeline capacity was unable to manage the volume of gas required to meet demand, limiting pipeline flow (unusual for the summer season) and driving up costs.

In other words, supply was not keeping up with demand. As a result, the NYMEX raised the price of natural gas, requiring home and business owners across the country to pay more for their gas.

Why is natural gas so costly in Georgia?

When compared to a week ago, Georgia gas prices climbed at the pump. Georgia motorists are now paying $3.24 per gallon on average for normal unleaded gasoline. The state average on Monday is 4 cents higher than a week ago, 13 cents higher than a month ago, and 96 cents higher than this time last year.

“Russia’s intentions toward Ukraine continue to have an impact on increasing crude oil prices,” said Montrae Waiters, a spokesman for AAA-The Auto Club Group. “Higher oil prices will almost certainly result in higher gas prices for Georgia motorists. The national average price of a gallon of gas is now $3.43, up seven cents from a week ago.”

Last week, total American gasoline stockpiles increased by 2.1 million barrels to 250 million barrels, according to figures from the Energy Information Administration (EIA). Gasoline demand, on the other hand, fell from 8.51 million barrels per day to 8.23 million barrels per day. Pump prices are normally pushed lower by an increase in total supplies and a fall in demand, but rising crude prices are pushing prices higher instead.

WTI climbed by $2.01 to $90.27 at the end of last Thursday’s regular trading session. Oil prices are continuing to rise due to tensions between Russia and Ukraine. Russia is a member of OPEC+, and any sanctions imposed as a result of its activities in Ukraine could lead to it withholding crude oil from the world market. Furthermore, OPEC+ announced this week that, despite calls for it to expand output even more to assist meet demand, it will continue to its plan to increase crude production by 400,000 barrels per day next month. The present stockpile is about 13% lower than it was at the end of January 2021, putting downward pressure on local oil prices.

What exactly is the Dddc factor?

The DDDC Factor is a calculation done by Atlanta Gas Light Company (AGL) that shows how much natural gas deliverability is reserved (or ‘dedicated’) for your home or business if Atlanta reaches an average daily temperature of 10 degrees Fahrenheit (a ‘design day’), making it unique to each home or business. Because the DDDC Factor, or Dedicated Design Day Capacity, is used to determine a customer’s AGL Pass-Through Charges, you’ll see it on your statement.