D.C. Public Service Commission Approves Settlement in Washington Gas Rate Case
Public Company Information:
WASHINGTON--(BUSINESS WIRE)--Washington Gas Light Co., a wholly-owned subsidiary of WGL Holdings, Inc., (NYSE:WGL) announced today that the settlement agreement reached on December 13, 2007, in the pending rate case, has been approved by the Public Service Commission of the District of Columbia. The settlement reflects a modest increase in billing rates for delivery service.
The settlement will increase distribution rates by an annual amount of $1.4 million and allow the company to continue investing in vital system maintenance and improvement in the District of Columbia. It also establishes new depreciation rates and permits deferral and amortization of costs to achieve Washington Gas’s outsourcing agreement with Accenture. The original request included a $20 million rate increase. The new rates will be effective for meters read on or after December 31, 2007.
"We are pleased that we were able to advance the interests of our customers and investors with this settlement that supports our commitment to serve customers well, maintain stable rates and sustain financial strength," said James H. DeGraffenreidt, Jr., Chairman and Chief Executive Officer of Washington Gas.
As part of the settlement agreement, Washington Gas will freeze its distribution rates in the District for the next three years, through January 1, 2011. No further change in distribution rates may be made prior to October 1, 2011. The settlement withdraws Washington Gas’s application seeking approval of a Performance-Based Rate Plan that would have allowed investors to share with District customers earnings that exceed an established target. Also withdrawn was a proposal to implement a new energy efficiency education program for District residents.
WGL Holdings, the parent company of Washington Gas, holds a group of energy-related retail businesses that focus primarily on retail energy-marketing and commercial heating, ventilating and air conditioning services.
Additional information about WGL Holdings is available on its Web site, www.wglholdings.com.
Forward-Looking Statements: Note: This news release and other statements by us include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the outlook for earnings, revenues and other future financial business performance or strategies and expectations. Forward- looking statements are typically identified by words such as, but not limited to, "estimates," "expects," "anticipates," "intends," "believes," "plans," and similar expressions, or future or conditional verbs such as "will," "should," "would," and "could." Although we believe such forward-looking statements are based on reasonable assumptions, we cannot give assurance that every objective will be achieved. Forward-looking statements speak only as of today, and we assume no duty to update them. Factors that could cause actual results to differ materially from those expressed or implied include, but are not limited to, general economic conditions and the factors discussed under the "Risk Factors" heading in our most recent annual report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission.
Washington Gas Light Co.
Eric Grant, 202-624-6091
Melissa E. Adams, 202-624-6410