Washington Gas to File New Natural Gas Reserves Purchase Application for Virginia
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.
About WGL
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.
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Copyright Business Wire 2016
Source: Business Wire
(January 4, 2016 - 4:05 PM EST)
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