Washington Gas files to purchase natural gas

Washington Gas, a subsidiary of WGL Holdings, Inc., has 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 6 November 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 6 November 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.

Adapted from press release by Francesca Brindle

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/05012016/washington-gas-files-with-scc-to-purchase-natural-gas-in-virginia-2057/