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Excerpts from OPC’s Complaint:

“While the State weighs the impact of natural gas on its greenhouse gas reduction goals, Washington Gas is sending customers billing statements that include broad and misleading claims of environmental benefits from natural gas use. In October and November 2021,

Washington Gas sent customers enrolled with its affiliated gas supplier, WGL Energy, bills that include a marketing statement—unattributed to either the gas distribution company or supplier—describing natural gas as “a clean energy” that is less emissions intensive and more environmentally beneficial than an all-electric home. Despite the well-known fact that natural gas production, distribution, and consumption are major sources of greenhouse gas emissions, the marketing statements contain no substantiating or contextual information to qualify the

environmental claims. The billing statements deceive and mislead utility customers about the emissions attributes of natural gas. 

Washington Gas reports that the billing statements are unique to customers receiving gas supply from WGL Energy—a core service provider and affiliate of Washington Gas. The inclusion of a marketing statement intended only for customers of Washington Gas’s affiliate supplier raises significant issues about Washington Gas’s billing policies, including whether it engages in joint marketing with its affiliates and whether it treats its affiliates preferentially, in violation of the utility code of conduct.”

WGL bill message stated:

“Natural gas is a clean, efficient, and reliable energy. Converting an all-electric home to natural gas is the equivalent of planting 2.75 acres of trees or driving 26,520 fewer miles each year. In addition, natural gas cost[s] 1/3 less than electric, which makes it a smart decision for the environment and your wallet.”

In response to the OPC complaint, the Public Utility Law Judge (PULJ) made the following statements: 

“The General Assembly certainly did not intend PUA § 5-303 to provide public service companies with the ability to provide customers with information about the environment that is unverifiable and potentially inaccurate, and still consider those actions to be adequate, just, and reasonable simply because the environment or environmental issues were referenced. Therefore, I find WGL’s ‘consideration of the environment’ position to be unreasonable.”

“I agree with OPC that regardless of any previous statements, deceptive marketing is not permitted.” 

“[A]cceptance of the Company’s position would effectively allow public service companies the unchecked ability to provide potentially inaccurate and unverified information to customers and the Commission would have no recourse unless and until regulations were enacted. I find the Commission has the authority to act on OPC’s complaint without the need for regulations and without violating the APA based upon the implicit powers provided in PUA § 2-113 and the Company’s violation of PUA § 5-303.”

“I disagree that specific regulations are necessary to make a finding on the Company’s billing statements given the Commission’s authority to ensure public service companies operate in the interest of the public and the standards of service public service companies are required to provide to customers are met.”

“Public service companies must act in the public’s interest and ensuring the information provided to customers is accurate and not misleading is imperative.”

The PULJ concluded, “I find that WGL’s billing statements were misleading based upon the lack of context, specificity, and qualifying statements.”

“I find that WGL’s actions violated PUA § 5-303 as it failed to meet the mandated standards of service as the billing statements were not adequate, just, and reasonable, and failed to sufficiently consider the quality of the environment.”

The PULJ directed parties to confer on a proposed procedural schedule to determine whether civil penalties should be imposed pursuant to PUA § 13-201.

PULJ Re: OPC’s Motion For Summary Judgement
OPC Complaint Against Washington Gas Light Co. and WGL Energy Services, Inc.
9673
(Complaint of the Office of People’s Counsel Against Washington Gas Light Company and WGL Energy Services, Inc.)