New Rates for Washington Gas Customers in Maryland
Public Company Information:
WASHINGTON--(BUSINESS WIRE)--Washington Gas Light Co., a wholly-owned subsidiary of WGL Holdings, Inc. (NYSE:WGL), reported that effective November 27, 2007, new rates will go into effect for customers in Maryland as authorized by the Public Service Commission of Maryland. The adjusted rates approved in an order of the Commission permit Washington Gas to collect an additional $20.55 million annually and reflect the increased costs of providing safe and reliable natural gas service in Maryland.
The average Maryland heating customer will see an increase to his or her bill of approximately $4.12 per month, or $49.49 per year.
In a separate order, the Maryland Commission affirmed actions taken by Washington Gas to purchase hexane to condition certain natural gas supplies and approved Washington Gas's recovery of the cost of hexane.
“The Maryland Commission’s decisions are positive regulatory results and affirm the actions we have taken to maintain the safety and integrity of our distribution system and the service that we provide to our Maryland customers,” said James H. DeGraffenreidt, Jr., Washington Gas Chairman and Chief Executive Officer.
The Commission authorized an increase in the rate base to reflect the impact of the company’s Prince George's County Rehabilitation Project and approved a rate of return on common equity of 10.0 percent.
The Order also established a Phase II proceeding to consider the company’s proposed Performance-Based Rate (PBR) Plan and related issues.
The Commission’ decision maintains existing depreciation expenses and affirms that depreciation rates will be considered in a separate docketed proceeding. When new depreciation rates are finalized in that case, the company expects to implement revised billing rates to reflect the resulting depreciation expense.
Approximately 421,111 of the company’s one million customers live in Maryland.
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