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What is an Annual DDDC Recalculation?

Ever have a charge on your gas bill but don’t know what it means? The Annual DDDC recalculation that went into effect September 1 might be a bit confusing and Walton Gas would like to help you gain clarity on the subject. Below we have outlined what an Annual DDDC recalculation really is.  

The Dedicated Design Day Capacity Charge (DDDC) is a portion of your natural gas bill that covers the common costs of delivering gas based upon a customer’s demand on the system on the coldest day of the year. This method is a straightforward way to allocate each customer’s share of the total cost of the delivery system. The Atlanta Gas Light Company (AGL) recalculates DDDC for every customer which includes both consumer and commercial accounts to ensure the data represents the most recent usage patterns. A DDDC recalculation is required each year and approved by the Georgia Public Service Commission in order to update summer and winter usage patterns for each customer for the most recent year.

The DDDC recalculation is not a rate change, the Atlanta Gas Light is simply charging marketers for the capacity that their customers use. What is capacity? Capacity is the space occupied by the natural gas they use. By doing an annual recalculation of each customer’s DDDC, Atlanta Gas Light can make sure all customers are fairly charged for how much of the system is reserved for their needs.

If you have any questions on your next natural gas bill, check out our Contact Information.

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