Washington Gas has filed a request for a 7.7 percent rate increase for its 151,000 District natural gas customers, arguing its current charges no longer meet the price of doing business in the city.
The application, filed Thursday with the D.C. Public Service Commission, would increase Washington Gas’ annual D.C. revenues by roughly $20 million. The typical residential heating customer would see an increase of about $8.47 per month, or $101.64 annually. The request is the first since 2003, and would take effect Oct. 1, if approved.
“The existing rates no longer reflect our business costs in the District of Columbia,” James H. DeGraffenreidt Jr., chairman and chief executive officer of Washington Gas, said in a statement. “A number of factors have emerged in the more than three years since our last filing that have led to a mismatch between the cost of providing natural gas service and revenues currently allowed by the PSC.”
Washington Gas provides natural gas to residential and retail customers. The company says its costs have increased due to inflation, the rising price of labor and employee benefits, a reduction in gas usage and additional expenses tocomply with federal laws.
The company also filed for a revenue-normalization adjustment and performance-based rate plan. The normalization would provide for a customer credit or surcharge based on the difference between Washington Gas’ expected and real earnings in a given month.
