Hello everyone. Councilmember Wells received the following information from the Office of the Peoples Counsel (OPC) regarding Washington Gas proposed rate increase.  He asked me to make sure we posted this to the website to make sure our community has the opportunity to have their voices heard regarding the proposals.  The Public Services Commission has scheduled three hearings listed below.

Here is the information from the OPC:
 

Washington Gas applied to the District of Columbia Public Service Commission for a rate increase on December 21, 2006 Formal Case No. 1054

Washington Gas (WG) wants:

• - To increase natural gas distribution service rates and charges (the amount consumers pay to have WG deliver gas to their homes) by approximately $20.5 million.
• - To increase the monthly customer charge for Heating/Cooling Residential consumers from $7.85 to $9.50.
• - To implement a new ratemaking design called a Performance Based Ratemaking Plan that will allow WG to share excess earnings with ratepayers when a certain level of earnings are achieved. It claims this will benefit both shareholders and ratepayers.
• - To create a new ratemaking mechanism called the Revenue Normalization Adjustment (RNA) that would allow WG to earn a guaranteed amount of money regardless of the amount of gas sold.
• - To add a surcharge called a Gas Administrative Charge (GAC) to customer bills to collect money for unpaid natural gas bills.
• - To eliminate 300 local WG jobs and transfer them to a third party contractor.
• 
  

OPC says:

• - The Commission should reduce WG's current rates by $10.2 million.
• - WG's proposed Performance Based Ratemaking (PBR) Plan is not reasonable. It is flawed because it is not tied to improvements in costs or customer service.
• - WG's plan to switch to an alternative form of regulation is not reasonable or appropriate for DC because significant potential changes may occur in WG's operations that will affect the overall cost structure and customer service. The traditional rate of return regulation should be kept.
• - WG's Revenue Normalization Adjustment should be rejected because it will not provide consumers the benefits claimed. It is detrimental because it will not provide consumers with stable bills, but will shift a significant amount of the risk of WG operations from it's shareholders to consumers. 
• - WG's proposed Gas Administrative Charge is not the appropriate  way to collect outstanding bills and the Commission should reject the mechanism.
• - The Commission should conduct an investigation into business dealings between WG and its affiliate companies to ensure DC ratepayers do not pay the expenses of the WG affiliate
• companies that do not provide gas service to DC consumers. 
• - WG's executive compensation costs and Supplemental Executive Retirement Plan costs should not be paid for by ratepayers. 

The Commission will convene three (3) community hearings at the following locations on the specific dates: 

• Ward Memorial AME Church - 241-42nd Street, NE, Monday, August 6, 2007, 10:00 a.m.
• Riverside Baptist Church - 680 I Street, SW, Tuesday, August 7, 6:00 p.m.
• Frank D. Reeves Municipal Center - 2000-14th Street, NW, Saturday, August 11, 11:00 a.m. 

Those to who wish to testify at the community hearings should contact Dorothy Wideman,  the Commission Secretary by the close of three (3) business days prior to the date of the hearing by calling (202) 626-5150 or mail or e-mail at .

Dorothy Wideman - Commission Secretary

Public Service Commission, of the District of Columbia

1333 H Street, NW, Seventh Floor East

Washington, D.C. 20005

(202) 626-5150

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Representatives of organizations shall be permitted a maximum of five (5) minutes for oral presentations. Individuals shall be permitted a maximum of three (3) minutes for oral presentations. If an organization or an individual is unable to offer comments at the community hearings, written statements may be submitted to the Public Service Commission of the District of Columbia, 1333 H Street, NW, Suite 200, West Tower, Washington, DC 20005.