D.C. Regulators Cut WGL Pipeline Replacement Budget, Open Gas Planning Investigation
D.C. regulators approved a reduced $150 million pipeline replacement program for Washington Gas while opening a new investigation into long-term natural gas distribution planning.
(P&GJ) — The Public Service Commission of the District of Columbia has approved a scaled-back version of Washington Gas Light’s pipeline replacement plan while launching a broader investigation into the future planning of the District’s natural gas distribution system.
The commission voted 2–1 to approve a modified version of WGL’s Strategic Accelerated Facilities Enhancement (SAFE) Plan, a program designed to replace aging, leak-prone pipelines in the District. The approved plan covers a three-year period from July 1, 2026 through June 30, 2029 and carries a total budget of $150 million, about 30% lower than the utility’s original proposal.
Spending under the program will be capped at $45 million in year one, $50 million in year two and $55 million in year three. Regulators also required that the annual budget be reset each year without rollover of unused funds.
"The Commission reviewed the public comments and testimonies, and made a decision rooted in the public interest. Ratepayers expect their safety and reliability to come first, and to move forward with our climate commitments. This decision does both. It strengthens oversight of our infrastructure, and it creates a new proceeding so we can plan our system with safety and climate goals moving together, not against each other," stated Commission Chairman Emile Thompson.
The modified SAFE Plan replaces the earlier accelerated replacement effort known as PROJECTpipes and shifts the program toward a risk-driven approach focused on high-risk leak-prone mains and service lines. Regulators said the approach is intended to improve system safety and reliability while also limiting potential stranded investments as the District pursues electrification policies.
The order also establishes enhanced reporting requirements for WGL, including annual project lists and risk assessments using the JANA Lighthouse model to prioritize pipeline replacement projects. Utilities will be required to submit project performance reports, risk model outputs and compliance filings throughout the program’s three-year term.
Under the revised framework, the commission set annual cost-recovery thresholds of $10 million in year one, $12.5 million in year two and $15 million in year three.
Regulators also directed the utility to consider non-pipeline alternatives (NPAs) before replacing infrastructure. WGL will be required to demonstrate that no alternative solution can mitigate the identified risk before pipeline replacement projects are approved.
As part of that effort, the commission approved a modified Customer Choice Pilot Program, allowing customers to opt out of gas service on service lines scheduled for replacement.
Alongside the pipeline replacement decision, the commission opened a separate formal proceeding to examine long-term natural gas system planning in the District.
The new investigation, known as the Integrated Natural Gas Distribution System Planning (INGDSP) proceeding, will evaluate future infrastructure planning, risk management and the potential role of non-pipeline alternatives as the District moves toward aggressive greenhouse-gas reduction targets.
Commission staff have been directed to establish a stakeholder working group within 75 days. The group will develop an initial planning framework and submit a report within 180 days outlining the scope of the system planning effort.