Overview
Washington Gas Light Company (WGL) filed an
application requesting to increase its existing rates and charges for natural gas service distribution in the District of Columbia.
The requested rates are designed to collect approximately $226.4 million in total annual revenues, which represents an increase in WGL’s weather-normalized annual revenues of no more than $53 million. This includes a transfer of $5.3 million associated with costs from the natural gas system upgrades currently paid by customers through the
PROJECTpipes monthly surcharge, resulting in a net increase of $47.7 million in new revenues.
These new revenues reflect an overall increase of approximately 20.4% over and above current bills. WGL contends that the request to increase base rates is because they are operating in the District with negative cash flows from operating activities and with an insufficient return to cover their financing costs.
If fully granted, WGL’s application would result in an increase of $16.48 on the average monthly bill of the average residential customer. The DCPSC
Public Notice on May 13, 2022, provides a complete breakdown of proposed monthly charges.
Community hearings
The DCPSC hosted community hearings to discuss WGL’s rate increase application on February 7, 8, and 9, 2023, at locations across the District.