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OPC & Washington Gas Reach Settlement in Gas Leaks Case Proposal Now Before Public Service Commission

Office of the People's Counsel for the District of Columbia ● 1133 15th Street, N.W. ● Suite 500 ● Washington, D.C. 20005 ● (202) 727-3071 ● FAX: (202) 727-1014 ● TTY/TDD (202) 727-2876 ● www.opc-dc.gov

Elizabeth A. Noël, People's Counsel

PRESS RELEASE

CONTACT: PHIL HARMON ● (202) 727-3071 ● email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

October 2, 2009

OPC & Washington Gas Reach Settlement in Gas Leaks Case
Proposal Now Before Public Service Commission

    “The safety and reliability of utility service is of paramount importance,” stated People’s Counsel.Elizabeth A. Noël Citing key public safety and community education provisions, the People’s Counsel Noël announced that the DC Office of the People’s Counsel had reached a settlement agreement with Washington Gas Light Company to implement a targeted Replacement and Encapsulation Program of sections of the Company’s existing system. Over a seven-year period, the program will focus on replacing aging mechanical couplings and service lines that have been identified as susceptible to potential leaks.

   Attorney Noël emphasized “This settlement agreement is designed to ensure that Washington Gas fulfils its legal duty to provide safe and reliable service to its DC consumers.” Under the program, Washington Gas will replace 3.7 miles of main per year and 495 services will be replaced or lined on an annual basis. The total cost of the project is not to exceed $28 million.

   “We have negotiated a commitment from WG to participate in a public forum to educate and inform consumers about safety issues in general as well as the specifics of its Replacement Program, stated People’s Counsel Noël. “Clearly, consumers must know how to recognize a condition that affects system safety and how to respond, but consumers also deserve a full explanation of what is being done, a timetable to correct these problems and what it will cost,” continued Ms. Noel.

   This case dates to the winter of 2004 when consumers throughout the District experienced natural gas service disruptions due to water seeping into W’S natural gas distribution pipes. WG provided data alleging the introduction of liquified natural gas into its system was causing certain mechanical couplings in underground pipes to fail. To remedy this circumstance, WG introduced hexane to stabilize the natural gas in its system. An open issue addressed in the settlement was the replacement of the affected mains, pipes and the appropriate level of recovery for expenses and commodity costs.

   The DC Public Service Commission must determine whether it will accept the settlement agreement as a complete package.