WASHINGTON--(BUSINESS WIRE)--Washington Gas, a subsidiary of WGL Holdings, Inc. (NYSE: WGL), today announced it plans to file a new application with the Virginia State Corporation Commission (SCC) to acquire natural gas reserves to serve its customers in Virginia. The announcement follows the SCC’s denial on November 6, 2015, of an initial reserves purchase application filed by Washington Gas. The initial application was the first of its kind under a Virginia law enacted in 2014 that permits natural gas utilities to invest in natural gas reserves that provide reasonably anticipated benefits such as cost savings, reduced price volatility and/or lower supply risk for gas utility customers in Virginia.
Under the Virginia law, Washington Gas could have filed an amended plan within 60 days of the SCC’s November 6 decision, which in turn would have required the SCC to review and approve or deny the amended plan within 60 days.
“Given the complexities of a long-term investment in gas reserves and the criteria for approval under the Virginia law, we believe the best path forward is to consider the SCC’s observations about our initial plan, revise our reserves purchase plan accordingly and then file a new application,” said Adrian Chapman, president and chief operating officer of Washington Gas and WGL Holdings. “This course of action will have the benefit of providing all parties, and the SCC, with a longer period of time provided under the law to evaluate a new natural gas reserves purchase plan, and the significant benefits we believe it would provide to our customers in Virginia.”
Washington Gas plans to negotiate a new agreement with a producer and file its new application within the next several months and will provide a more specific timetable following its evaluation of a new natural gas reserves purchase plan.
About Washington Gas
Washington Gas Light Company is a regulated natural gas utility providing safe, reliable natural gas service to more than 1.1 million customers in the District of Columbia, Maryland and Virginia. A subsidiary of WGL Holdings, Inc., the company has been providing energy to residential, commercial and industrial customers for more than 167 years.
WGL (NYSE: WGL), headquartered in Washington, D.C., is a leading source for clean, efficient and diverse energy solutions. With activities and assets across the U.S., WGL consists of Washington Gas, WGL Energy, WGL Midstream and Hampshire Gas. WGL provides natural gas, electricity, green power and energy services, including generation, storage, transportation, distribution, supply and efficiency. Our calling as a company is to make energy surprisingly easy for our employees, our community and all our customers. Whether you are a homeowner or renter, small business or multinational corporation, state and local or federal agency, WGL is here to provide Energy Answers. Ask Us. For more information, visit us at www.wgl.com.