Maryland Public Service Commission Denies Largest Portion of Washington Gas & Light’s Rate Increase Request

July 27, 2026

(BALTIMORE, MD) – The Maryland Public Service Commission has today authorized a rate increase of approximately $38.1 million for Washington Gas & Light Company, a significant reduction from the $82.5 million requested by the utility in its original filing (Case No. 9849) on December 29, 2025, and less than half of the requested increase.

The Commission’s decision reflects an adjusted rate base of $1.645 million and an approved overall rate of return (“ROR”) of 7.22% based on a return on equity (“ROE”) of 9.40%, which has been reduced from Washington Gas & Light Company’s current ROE of 9.50% and which is significantly below the Company’s requested 10.85% ROE. For the average residential heating customer, this adjustment is estimated to result in an increase of approximately $4.01 per month.

The new rates go into effect after today.

“The Commission has conducted a thorough review of the evidence and testimony presented by the Company, Technical Staff, the Office of People’s Counsel, and other stakeholders,” said Chair Kumar Barve. “Our primary goal as a Commission is to ensure that rates remain just and reasonable, balancing the utility’s need to maintain safe and reliable infrastructure with the critical importance of affordability for Maryland consumers.”

Key Outcomes of the Commission Order:

• Infrastructure Costs: The Commission reviewed the Company’s proposal to move certain STRIDE (Strategic Infrastructure Development and Enhancement) costs into distribution rates related to projects that began construction after January 1, 2024. The Commission rejected $3.2 million of the request, citing a lack of documentation regarding the consideration of non-pipeline alternatives as required by state law and prior directives.
• Tax Relief for Ratepayers: The Commission reduced the amortization period for returning non-protected Excess Deferred Income Taxes (EDIT) to ratepayers from 25 years to 5 years. This adjustment is intended to provide near-term financial relief to customers.
• Geothermal Pilot: The Commission denied the Company’s request to begin recovering costs associated with the Network Geothermal Pilot program, noting that the program is not yet finalized and thus not ripe for recovery.
• Phase II Proceeding: The Commission is initiating a Phase II proceeding to address certain rate design issues with Commercial & Industrial classes and to consider removal of certain costs from rates as identified in recently enacted legislation HB 1532 Utility RELIEF (Reducing Energy Load Inflation for Everyday Families) Act.

The Commission’s decision follows a comprehensive review of evidence, including testimony from WGL, Commission Technical Staff, the Office of People’s Counsel, and other stakeholders, to ensure rates remain “just and reasonable” as required by the Public Utilities Article.

The Commission’s decision also follows extensive public hearings and evidentiary proceedings held throughout the spring of 2026. The Commission emphasized its commitment to protecting consumers while ensuring the financial integrity of the utility to continue to provide safe and reliable natural gas service to approximately 518,000 customers in Calvert, Charles, Frederick, Montgomery, Prince George’s, and St. Mary’s counties.

The full order, including detailed findings on capital structure, cost of service, and rate design, is available through the Maryland Public Service Commission’s official docket.

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Media Contact: Tony Ruffin, Communications Director | tony.ruffin@maryland.gov

About the Public Service Commission:

The Maryland Public Service Commission regulates electric and gas utilities and suppliers, telephone companies (land lines), private water and sewer companies, passenger motor vehicle carriers for hire, taxicab companies in some jurisdictions and bay pilot rates. The Commission implements the State’s energy policy and also regulates the siting of energy generating facilities and high-voltage transmission lines.