I testified at a Public Service Commission hearing on the Washington Gas request for a rate increase on April 29; it was the fourth such hearing. I was one of some 30
people who went to the mike to decry the WG request – of all ages, from early 20s to
late 70s, from all parts of the city.
It was an amazing and heartening experience. Almost all of those testifying were
clearheaded and well-spoken. Many had done careful study of the WG proposal, which
would increase rates for households by almost 18% on average. Almost all were
objecting, and vociferously so – on the grounds the rate increase would unduly burden
low-income households already paying too much, as well as the thousands of newly
unemployed in a city struggling with the effects of the DOGE shocks. And on the
grounds that the proposal for a rate hike to finance replacement of the entire pipe
infrastructure (1200 miles!) in the city — to deliver methane — is inconsistent with the DC
government’s commitment to address the climate crisis.
Here’s what I said:
I’ve lived in this city for almost 60 years – most of my adult life, and I love the city.
My seventh grandchild was born yesterday. I hope she lives a long life, with half the
luck and privilege I’ve enjoyed. But her future is at huge risk if we don’t deal with our
onrushing climate catastrophe in this country.
I’m an economist and I promise you that Project Pipes, if it goes ahead, will become
what economists call a “stranded asset.” Mark Carney, who was just elected Prime
Minister in Canada, has been the Governor of the Bank of England and the Bank of
Canada. He pointed out a decade ago that oil was becoming a stranded asset – an
“asset” that has lost its value in a changed market. The whaling ships of the 18th century
New England lost their value overnight when electric lamps replaced oil lamps. Today’s
examples include coal mines, auto factories that cannot easily be renovated to make
electric vehicles, and beach houses at risk of sea level rise.
Washington Gas should be held accountable for quick repair of dangerous pipe
leaks–not look for higher returns for its shareholders with a dying approach.
Project Pipes would be a classic stranded asset. For one thing, in DC the use of natural
gas (methane) has been falling, and at an increasing rate, as households that can afford
it switch to heat pumps, electric hot water heaters and electric or induction stoves. (One
of those who testified pointed out that companies in DC who own their buildings are
going electric – it’s cleaner, easier to manage and less vulnerable to needing repairs.
That will increasingly leave households holding the bag on Washington Gas rate rises.)
I have a second objection wearing my economist hat. The proposed rate increase has a
component that is outrageously regressive: Washington Gas proposes a higher fixed
charge for Project Pipes, independent of household use! The poor who turn down their heat to 50 degrees pay the same fixed rate for PP on their bills (if it goes ahead) as the
rich.
Washington Gas should be held accountable for quick repair of dangerous pipe
leaks….not look for the higher returns for its shareholders it can get with a dying
approach to build new infrastructure – infrastructure that would be an embarrassment
for you and for us 10, 20, and 30 years from now.
Please say no to tearing up our streets and tearing up my grandchildren’s future. Please
say no to Washington Gas.