Maryland regulators approve smaller Washington Gas rate increase, adding about $4 a month
Washington Gas customers in six Maryland counties will pay more under rates effective July 27, but the Maryland PSC approved $38.1 million—less than half the utility’s original request.
Washington Gas customers in six Maryland counties will pay more under rates approved by the Maryland Public Service Commission, but the commission authorized less than half of the utility’s original request.
In Order No. 92541, issued July 27, 2026, the commission authorized Washington Gas Light to collect $38.134 million more in annual revenue through Maryland distribution rates. The approved rates apply to service rendered on or after July 27.
The commission estimated that an average residential heating customer will pay about $4.01 more per month. That is an estimate for a typical customer, not a guaranteed increase for every household.
What the commission approved
Washington Gas filed the Maryland rate case on Dec. 29, 2025, seeking an $82.5 million increase in annual base-rate revenue. The utility’s proposed rate design would have increased an average residential customer’s total bill by about 5.3%, according to the commission’s prehearing record.
The order says Washington Gas later identified corrections that would have put its requested revenue increase at approximately $88.1 million. The commission approved $38.134 million instead, finding that the larger increase was not supported by the record.
The approved amount concerns regulated delivery service. It does not mean every part of a customer’s gas bill will rise by the same amount. Washington Gas bills also include gas-supply charges, usage-based charges and other adjustments that can change separately.
Who is affected
The decision applies to approximately 518,000 Washington Gas residential, commercial and industrial customers in Calvert, Charles, Frederick, Montgomery, Prince George’s and St. Mary’s counties.
It is not a rate increase for every Maryland gas customer. The order covers Washington Gas’s Maryland service territory; other utilities serving different parts of the state have separate rates and proceedings.
Customers who use more gas, including during colder weather, may see a different dollar impact than the commission’s average residential heating customer. The final bill will also depend on gas-supply prices and other charges shown on the account.
Infrastructure and tax provisions were limited
The commission rejected $3.2 million tied to certain STRIDE infrastructure costs that Washington Gas sought to move into base rates. STRIDE is Maryland’s Strategic Infrastructure Development and Enhancement program for utility infrastructure replacement.
The commission said Washington Gas had not adequately documented its consideration of cost-effective non-pipeline alternatives, as required by prior commission directives and Maryland law. The order allowed the company to maintain the disallowed capital in the STRIDE surcharge and did not prevent Washington Gas from seeking recovery of those costs in the future.
The commission also shortened the repayment period for non-protected excess deferred income taxes, known as EDIT, from 25 years to five years. That change returns the tax benefit to ratepayers more quickly than the longer schedule.
Commissioners denied Washington Gas’s request to recover costs associated with its Network Geothermal Pilot at this time. The order said the proposal was not ripe for recovery and required substantial revisions before further consideration.
What happens next
The commission initiated a Phase II proceeding to address additional rate-design issues involving commercial and industrial customer classes and to consider whether certain costs must be removed from rates under the Utility RELIEF Act, enacted by the Maryland General Assembly.
Phase II is not a completed decision. The commission said additional information and stakeholder input are needed before it resolves those issues, which could lead to later changes involving rate design or cost recovery.
For residential Washington Gas customers, the immediate change is the higher delivery charge effective July 27. The commission’s $4.01 estimate provides a general guide, while actual bills will vary with household use, weather, gas-supply prices and other bill adjustments.
Sources
- Maryland PSC Order No. 92541
- Maryland Office of People's Counsel Washington Gas consumer information
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