A rate hike for Washington Gas’ 151,000 D.C. customers went into effect at 12:01 a.m. Monday, but the increases are so negligible most consumers probably won’t even notice a difference in their monthly statements.
The D.C. Public Service Commission approved the amended rate system Friday, though Washington Gas had yet to publicly announce the changes as of Monday morning. The increase, which is expected to generate an additional $1.4 million in revenue, is “reasonable and necessary for the company to meet the operating expenses and capital costs of providing reliable service in the District of Columbia,” the commission wrote.
Washington Gas had originally sought a much more substantial set of increases that would have bulked up its annual D.C. revenues by $20 million. But after a year of fighting virtually everyone, the company settled for a minimal increase. The company also agreed not to bid for another rate increase until 2011.
“The settlement of this [rate] case results in substantial savings to the parties and the ratepayers of the District of Columbia,” the commission wrote.
Under the revised system, rates for most residential customers will increase by about 0.6 percent. Commercial and industrial gas clients will see a 1.7 percent jump. If the increases were spread evenly among all District customers, the average bill would rise 77 cents a month.
What are the impacts?
» The monthly “customer charge,” a standard fee tied to the cost of maintaining Washington Gas facilities, will increase a dime, from $7.85 to $7.95 per month for residential consumers.
» The distribution charge, the fee the company bills for sending gas through its underground pipelines, will rise from 38.09 cents per therm to 38.73 cents per therm for most residential customers.
“We are pleased that this settlement supports our commitment to serve customers well by maintaining stable rates and allowing the company to continue investing in vital system maintenance and improvement in the District of Columbia,” Washington Gas Chairman James H. DeGraffenreidt Jr. said in a statement.
