D.C. utility bills could spike this summer under proposed gas hike
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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.
- Last year, D.C.'s Office of the People's Counsel called for an investigation into dangerous Washington Gas leaks, which are rising despite heavy investment.
What we're watching: Whether the DC Public Service Commission will approve the increase, which could also coincide with higher electricity bills in the heat of summer. Several public hearings are planned, with the next on April 29.