Overview
The Public Service Commission of the District of Columbia (DCPSC) has partially approved Washington Gas Light's (WGL) modified rate increase request in Formal Case No. 1180. The decision reduces WGL's initial $45.6 million request by about 27%, allowing a $33.4 million increase effective January 1, 2026. This includes moving $12.5 million from the PROJECTpipes surcharge to base rates. The Commission voted 2-1 to approve the rate increase, with Commissioner Richard Beverly casting the dissenting vote.
Key measures include:
- Balanced Approach: The approved rates reflect a 9.65% return on equity and 7.43% overall rate of return, balancing safety, reliability, and affordability for natural gas customers.
- Consumer Protection: The Commission continues to assist low-income households through the Residential Essential Service program, natural gas discount program, and WGL Arrearage Management Program.
- Reduced Impact: The Commission rejected WGL's proposed Weather Normalization Adjustment and made adjustments that reduced the utility's original proposal by approximately 27%.
- Climate and Future Planning: The Commission established a Weather Normalization and Climate Working Group to examine how to improve weather normalization calculations and identify ratemaking methods that support the District's climate goals without penalizing the utility for promoting energy conservation.
For residential heating customers, average monthly bills will rise by approximately $11.24, or 12.87%, bringing the total estimated bill to $98.57. The approved rate adjustment reflects the Commission's commitment to maintaining safe and reliable natural gas services while considering consumer needs.
Current Status
The approved rate increase will take effect on January 1, 2026. The Commission continues to explore additional ways to improve the affordability of utility bills for District residents.
Procedural Timeline
Key dates and events in this rate case are detailed below. Find a complete procuredural schedule in Attachment A of Order No. 22463.
Initial filing
August 5, 2024
Evidentiary/legislative hearing
The DCPSC held an evidentiary hearing on August 14, 2025, to address material issues of fact in this rate case. The hearing focused on matters such as depreciation, affiliate transactions, capital expenditures, the use of ratepayer funds, and other issues that required further examination of witness testimony and supporting evidence.
Community hearings
The DCPSC scheduled three community hearings across the District (in Wards 7, 4 and 2) in April 2025 for the public to provide input in this rate case. Watch a full recording of the April 29, 2025, hearing held in the DCPSC Hearing Room:
Final Decision
On November 20, 2025, the Commission issued its final decision in this rate case.
Background
WGL submitted an application on August 5, 2024, requesting a weather-adjusted annual increase of $45.6 million, which included $11.7 million from previously approved PROJECTpipes infrastructure projects. WGL's proposal also included a Weather Normalization Adjustment tool and would have resulted in an average monthly increase of approximately $15.33 for typical residential heating customers.