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Axios
22-04-2025
- Business
- Axios
D.C. utility bills could spike this summer under proposed gas hike
D.C. residents will face higher utility bills starting this summer if a proposed rate hike by Washington Gas goes into effect. Why it matters: Energy bills are already creeping up due to regular increases from gas and electricity companies, extreme weather, and aging infrastructure — particularly concerning for D.C. residents grappling with higher living costs, and for low-income communities. State of play: Washington Gas is proposing a 12% rate increase for customers starting in August, arguing current rates don't reflect the true cost of doing business in the District. The gas provider, which serves more than a million DMV residents, cites financial strains and reduced earnings due to operational and maintenance costs, inflation, tax changes and more. Opponents say the rate hike could add more than $15 to the average customer's monthly gas bill. Between the lines: Washington Gas is seeking an annual revenue increase of more than $45 million, around $12 million of which would include a surcharge designated for the "Project Pipes" program. The decades-long, multibillion-dollar infrastructure initiative aims to replace hundreds of miles of the District's aging natural gas pipelines, which create safety concerns. The program was temporarily suspended last year due to poor performance and inefficiency. Flashback: Washington Gas filed for a $53 million increase in 2022. The DC Public Service Commission, which regulates energy providers, approved nearly half that amount — more than $24 million — which added around $8 per month to D.C. customers' bills. The big picture: Utility bills are becoming more expensive across the board. In January, Pepco — which serves more than a million customers in D.C. and Maryland — raised electricity rates for the third consecutive year. A 5% increase in D.C. jumped the average residential customer's bill from $108 to $114 per month (Marylanders saw an average spike from $166 to $173, per Fox5). Extreme weather recently hit pockets hard. Customers reported eye-popping electricity bills during this winter's freeze, some over $800. Pepco, which cited the highest-usage winter in decades, offered some financial breaks and a pause in disconnections. The other side: Opponents of Washington Gas' increase — a mix of housing and climate advocates and community leaders — argue that the for-profit company is placing undue strain on residents' wallets while padding its own. They say that's particularly true for low-income communities east of the Anacostia River in Wards 7 and 8, which have some of the highest energy costs in D.C. relative to their incomes. A recent study by CCAN Action Fund shows that more than 20,000 Washington Gas customers have outstanding bills — owing the company more than $15 million combined — and roughly 3,000 residents received shut-off notices last year. Meanwhile, opponents point to AltaGas, the parent company of Washington Gas, reporting 14% growth in profits from its utilities business operations from 2023 to 2024. The intrigue: Climate advocates, including members of the DC Council, argue for targeted pipe repair instead of full-on replacement, which they say is less costly and more in line with the city's carbon-neutral goals. Building new lines means doubling down on gas versus shifting to electric, plus it places more financial burden on customers.
Yahoo
13-03-2025
- Business
- Yahoo
Lawmakers grill energy companies over high utility bills
Repjjjfrom utility companies providing services in Maryland. From Left: John Dodge (Washington Gas), Tim Troxell (FirstEnergy), Tim Dennison, (Southern Maryland Energy Cooperative), Charles Washington (Baltimore Gas and Electric), and Valencia McClure (Pepco). (Photo by Danielle J. Brown/Maryland Matters) Amid soaring energy costs for Marylanders, lawmakers interrogated representatives of the state's utility companies Wednesday to get to the bottom of why so many of their constituents have seen their energy bills skyrocket over the past couple months. At a joint briefing of the House Economic Matters Committee and the Senate Environment, Education and Energy Committee, company representatives claimed that energy usage went up recently due to the frigid winter temperatures, resulting in more costly bills — but lawmakers believe there is more to the story. 'What we need is some frankness and information so that we can all collectively stop the pain that is occurring in our communities, where they are not able to pay the bill,' said Sen. Mary Washington (D-Baltimore City and Baltimore County). The four-hour briefing comes as House and Senate committees work out the details of an energy package pushed by Senate President Bill Ferguson (D-Baltimore City) and House Speaker Adrienne Jones (D-Baltimore County), in an effort to bring down rising energy costs while ensuring the energy grid continues to function efficiently. Leaders' bills seek to transform Maryland energy landscape — but questions remain Their package includes measures to build a new gas-fired power plant and create a new office within the Maryland Public Service Commission to help with forecasting and modeling energy needs, among other measures. Representatives from Pepco, BGE, the Southern Maryland Electric Cooperative (SMECO), and Washington Gas were called before the committees to discuss rising energy costs. Nearly every company attributed the rising bill costs to the winter weather in Maryland this year, which had been notably colder than in recent years. 'The main driver behind this has been … extremely cold temperature,' Charles Washington, vice president of of Baltimore Gas and Electric, told the committees. 'It was one of the coldest winters we've had in 10 years. Our average customer usage has been up almost 20% above our previous figures,' Washington said. 'Basically customers have been using more product.' Lawmakers did not appear to be accepting that: At one point, more than a dozen lawmakers' microphones were flashing to indicate that they had questions for the energy companies on the costs of energy. Economic Matters Chair C.T. Wilson (D-Charles) wasn't satisfied with the weather answer. 'The problems I had when we were explaining the winter months and how we had a very cold winter — I don't know if you thought maybe this was some kind of relief … My concern is the summer's coming, and what's to stop us from being brought back where we were?' he asked. Washington clarified that he didn't mean to imply that there's relief happening in the summertime, because he thinks 'usage will be up again.' 'Winter, for us, is usually when people experience the highest bills, because they rely on heat pumps for heating their homes,' Washington said. 'What we try to stress to our customer members is to try to conserve electricity by turning down their air conditioner. It's somewhat a little bit more palatable to do that in the summertime versus whatever you're trying to keep in the winter.' Del. Brian M. Crosby (D-St. Mary's) also doubted the weather justification. 'I appreciate you telling me the winter was cold about two-and-a-half hours ago, but that really doesn't deal with why energy costs are going through the roof,' Crosby said. Many of the Democratic lawmakers expressed concerns with how the energy rate increases were determined by the Maryland Public Service Commission, and worried that the energy companies were increasing profits at the expense of the consumers. Del. Christopher T. Adams (R-Middle Shore) said he believed that the increased costs primarily came from the weather, though acknowledged other factors likely contributed. 'Would we be here today if January was balmy and maybe an average year?,' Adams said. 'I'm doubting we would be here. So, I think a lot of this is volumetric, in relationship to the problems that our constituents are having.' In a conversation with reporters Tuesday, President Bill Ferguson (D-Baltimore County) said that the briefing by utility officials was not intended to 'create scapegoats and bogeymen' of the energy companies. 'We are here to get information and to understand what we can do to help Marylanders who are feeling a lot of pressure and pain from utility bills,' Ferguson said Tuesday. 'We are looking for short-term options to increase relief for ratepayers and for people who are paying … bills that are too high.' Get ready for a dizzying debate on energy policy But Senate Minority Leader Stephen Hershey (R-Upper Shore), believes the state's environmental policies were to blame for ratepayers' costly electric bills, and Democrats were looking for someone else to blame. 'It was very apparent from the tone of the questioning that the Democrat leaders are desperate to blame someone else and deflect the conversation away from their policy decisions that are driving up energy costs,' Hershey said in a prepared statement. 'In fact, customer rates are up because Democrats could not say no to the environmental advocates' … forced closures of reliable fossil fuel generation plants, essentially re-regulated the supply market that removed competition and customer choice, and pushed an overall movement towards electrification through the Climate Solutions Now Act,' Hershey's statememt said. 'Each one of these actions contributes to increased rates that Marylanders pay for electricity.' – Maryland Matters reporter Bryan P. Sears contributed to this report.
