Natural Gas in Georgia

Natural gas is an important energy fuel with literally thousands of uses, most commonly in homes for heating and cooking. Natural gas is stored underground and transported through pipelines, and is commercially produced from oil fields, coal beds and natural gas fields. In the United States, natural gas is often sold in units of therms (1 therm = 100,000 BTU). According to Georgia Public Services Commission (PSC), the average natural gas consumption in Georgia is 711 therms per year.

Georgia's Current Natural Gas Market

Depending upon their 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.

• Atlanta Gas Light Company became a pipes-only gas company in 1998, when it elected to open its territory to competition pursuant to the Natural Gas Competition and Deregulation Act of 1997. Ten certified natural gas marketers now serve customers on AGLC's system. The prices charged by marketers are market-based, but rates for AGLC's distribution service are still regulated by the PSC.
• Atmos Energy Corporation, Georgia's only local distribution company, is fully regulated by the Public Service Commission.
• In Georgia, 84 municipal gas systems provide natural gas to their residents. Prices for municipal gas service are not subject to PSC regulation.

Deregulated Natural Gas Companies

In 1997, the Georgia's General Assembly adopted a new regulatory model for natural gas distribution companies in which competitive marketers have an opportunity to provide natural gas services to Georgia consumers. The General Assembly found market-based competition as the best mechanism for selecting and providing natural gas services at the most efficient price. You can read our article Georgia Natural Gas Deregulation to find out more.