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Utility, Affiliate Supplier Separately Rebut OPC's Call For Investigation Of Alleged Potential Insider Knowledge Or Preferential Access
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Washington Gas Light Company and retail supplier WGL Energy have each filed separate comments rebutting allegations from the District of Columbia Office of People's Counsel that had alleged a "disparity" between lower prices offered by competitive retail supplier WGL Energy, and the rates offered by "its [WGL Energy's] parent company [sic]", as well as the offerings, or non-offerings, of non-affiliated retail natural gas suppliers
As previously reported, OPC had urged the D.C. PSC to investigate the alleged concerns that had been raised by OPC in OPC's recent comments on the future of the POR program
See full details on OPC's allegations here
As more fully discussed in our prior story, OPC's stated reference to WGL Energy's "parent company" is understood to be intended to mean utility Washington Gas Light Company, though, as noted in our prior story, Washington Gas Light Company is not the "parent company" of WGL Energy
OPC had alleged in comments to the PSC that, "TPS [third-party supply] companies operating in the natural gas sector have the option to offer fixed-price contracts to mitigate volatility, yet this practice is not widely adopted. Notably, the only active TPS in the natural gas market is WGL’s affiliate, which consistently offers lower prices than its parent company [sic]."
OPC had said in its comments to the PSC that, "OPC recommends that the Commission initiate an investigation into this pricing disparity, including whether the affiliate benefits from insider knowledge or preferential access to customer data and resource acquisition strategies."
In reply comments, Washington Gas Light Company ("Washington Gas", "WGL", or the "Company") alleged, "every statement made in the OPC comments regarding the relationship between the Company and its TPS affiliate, WGL Energy Services ('WGL Energy'), is incorrect or, at the very least, highly misleading"
Washington Gas Light Company said that it does not give preferential treatment to any affiliate(s) or customers of affiliate(s) in providing regulated services
Washington Gas Light Company stated, "It is axiomatic that OPC, as the advocate for an investigation into a purported pricing disparity between Washington Gas and WGL Energy, bears the burden of proof. As shown below, OPC’s claims fall woefully short of meeting its burden of proof. In conformity with 15 DCMR § 3901.5, Washington Gas does not give preferential treatment to any affiliate(s) or customers of affiliate(s) in providing regulated services. With respect to regulated utility services, Washington Gas treats all similarly situated energy suppliers and their customers in the same manner without regard to whether the supplier is a core service affiliate. Washington Gas does not provide insider knowledge or preferential access to customer data to any affiliate, including WGL Energy. Washington Gas’s Energy Acquisition unit does not provide any resource acquisition strategies to WGL Energy."
Washington Gas Light Company further cited third-party audits of Washington Gas Light Company's natural gas planning and procurement practices for default service, which are conducted at the order of and under the oversight of the PSC. Washington Gas Light Company cited the most recent audit report as finding that, "WGL gas planning and procurement practices ensure reliable default gas supply at a just and reasonable cost." Washington Gas Light Company noted that the PSC adopted the findings in
such audit report and accepted the audit report as filed.
Washington Gas Light Company also disputed OPC's allegation that WGL is the only, as termed by OPC, "active" retail supplier in the Washington Gas Light Company D.C. service area
Washington Gas Light Company reported that 25 retail supplier companies are
currently providing supply in the natural gas market in the Washington Gas Light Company District of Columbia service area.
"Of these
25 TPS companies, 21 provide service to residential customers," Washington Gas Light Company reported
Washington Gas Light Company also filed with the PSC, on a confidential basis, a comparison of historical gas prices charged by Washington Gas Light Company and WGL Energy, by month, for the past 10 years.
Washington Gas Light Company stated, "In every month since March 2023, the price charged by Washington Gas to residential customers for natural gas has been lower than the average price reported to Washington Gas by WGL Energy. Price differences between Washington Gas and WGL Energy, both higher and lower, are to be expected precisely because Washington Gas pursues its own independent gas procurement strategy and does not collaborate on such strategy with WGL Energy."
Washington Gas Light Company stated, "Washington Gas respectfully asserts that the recommendation that the Commission initiate an investigation based on OPC’s baseless suggestion that any pricing difference between Washington Gas and WGL Energy is the result of nefarious activity should be rejected. Initiating an investigation based on suggestions of wrongdoing that are completely devoid of any merit would be a waste of Commission resources and is wholly unnecessary."
In separately filed comments, WGL Energy also rebutted OPC's allegations
In separately filed comments, WGL Energy stated, "WGL Energy refutes any accusations of misconduct made by OPC against WGL Energy. WGL Energy is a subsidiary of WGL Holdings, Inc., and functions as a separate and independent entity from its affiliates, including Washington Gas, despite being owned by the same parent corporation. WGL Energy operates independently as a retail energy supplier in its daily activities, decision-making, and handling of confidential information. This independence is maintained by strong ring-fencing measures that prevent the inappropriate exchange of sensitive business data between them. WGL Energy does not benefit from insider pricing, special treatment, or access to proprietary customer information from Washington Gas. The structural and operational separation maintains the integrity of WGL Energy’s competitive retail share, ensuring that it competes fairly and equitably."
In separately filed comments, WGL Energy stated, "Ring-fencing also applies to the management of customer information. WGL Energy and Washington Gas enforce strict policies and internal controls that prevent the sharing of customer data, safeguarding privacy and ensuring regulatory compliance. This independence enhances consumer trust and shows WGL Energy’s commitment to ethical business practices. WGL Energy strives to deliver value through competitive prices and innovative energy solutions to both existing and prospective customers."
The separate comments of Washington Gas Light Company and WGL Energy were each part of each's reply comments concerning the PSC's POR investigation
Generally, parties' reply comments reflected positions previously enumerated in initial comments
One notable comment from Pepco's reply comments is Pepco's argument that "data" shows that the current increase in POR uncollectibles is not solely the result of COVID-19 moratoria
Pepco, first reciting RESA's initial comments, said, "RESA also commented that high residential discount rates appear to be driven primarily by
pandemic-era arrearages and disconnection moratoria. According to RESA, these extraordinary
circumstances temporarily inflated bad debt expenses and, as such, the excessive POR arrearage
and discount rate issues are not reflective of the long-term uncollectible expenses associated with
POR."
Pepco said in reply that, "Pepco acknowledges that pandemic-related arrearages and disconnection moratoria may
have contributed to elevated bad debt levels during earlier periods. However, RESA’s statement of
the causes of the high arrearages does not comport with current data. Specifically, as of August
2025, data indicate that the persistent year-over-year increase in write-offs continues and could be a result of other. [sic] While the pandemic may have initiated certain trends, these trends in
uncollectible expenses and write-offs have continued well beyond the pandemic."
Pepco alleged that other contributing factors to increasing arrearages, "may include broader economic conditions and supplier practices."
Dockets PEPPOR2025-01 & WGPOR-2025-01
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September 30, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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