WG Proposed Rate Increase
Washington Gas Light Company filed an application for an increase in revenue of $82.5 million on December 29, 2025. The Company requests an increase of $82.5 million in annual operating revenues based on a proposed 8.07% rate of return and a 10.85% return on equity. The proposed increase includes $15.4 million of revenue requirement from the transfer of STRIDE program costs to base rates.
Washington Gas provided an estimate of the impact to each rate class below. The new rates proposed would be effective on July 27, 2026. Commercial and group-metered apartment customers would see approximately a 20% increase for those buildings that heat or cool using natural gas. That increase would be for the Washington Gas distribution components only and do not include the gas supply charges. Washington Gas’ estimates, including gas supply using the Purchased Gas Cost (“PGC”), show an increase between 10-18% for AOBA member buildings based on Washington Gas’ calculations. AOBA has intervened in this case on behalf of AOBA members and will inform members as the case progresses. A pre-hearing conference is scheduled for January 27, 2026.
Caveat on Estimates
These estimates from Washington Gas are based on class averages. WG has proposed significant changes to the allocation of costs within each customer class which may cause significant variations in the impact on individual buildings. Washington Gas’ Application states:
“the non-residential customer classes’ current block rates are beginning a transition to a flat, single-rate structure. As part of this transition for all non-residential customers, the Company proposes to narrow the current differentials between block rates. In addition, for C&I and GMA customers that are currently on a three-block declining rate structure, the Company proposes to reduce the number of blocks to two blocks.”
This block rate change will likely impact large natural gas users significantly with the large increases in the 2nd level charges shown below.
Rate Case History, WG Case No. 9704
Washington Gas last filed for a rate increase in Maryland on May 18, 2023 requesting a $49.4 million rate increase based on a 7.726% rate of return and ROE of 10.75%. Through the efforts of AOBA and other intervenors in the case, the PSC approved a $12.6 million increase and a 7.04% rate of return and 9.5% ROE, which provided significant savings to AOBA members.
AOBA is reviewing the application for its impact on sample member buildings. If you are interested in seeing the forecasted impact to your individual building or portfolio, contact Kevin Carey @ kcarey@aoba-metro.org.