Exact name of registrant as specified in its charter | |||||||||||
Commission | and principal office address and telephone | State of | I.R.S. Employer | ||||||||
File Number | number | Incorporation | Identification No. | ||||||||
1-16163
|
WGL Holdings, Inc. 101 Constitution Ave., N.W. Washington, D.C. 20080 (703) 750-2000 |
Virginia | 52-2210912 | ||||||||
0-49807
|
Washington Gas Light Company 101 Constitution Ave., N.W. Washington, D.C. 20080 (703) 750-4440 |
District of Columbia and Virginia |
53-0162882 | ||||||||
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(i) | beginning October 1, 2007, the implementation of a Weather Normalization Adjustment mechanism, a billing adjustment mechanism that is designed to eliminate the effect of variations in weather on utility net revenues. The Final Order leaves in place the declining-block-rate structure which has the effect of mitigating the volatility in Washington Gass revenues associated with changes in customer consumption for either weather or customer usage; | ||
(ii) | effective October 1, 2007, the implementation of a Performance-Based Rate (PBR) plan, which includes: |
| a four-year delivery service base rate freeze, | ||
| service quality measures to be determined through consultation with the VA Staff and reported quarterly for maintaining a safe and reliable natural gas distribution system while striving to control operating costs, | ||
| an earnings sharing mechanism that enables Washington Gas to share with shareholders and Virginia customers the earnings that exceed a target of 10.5 percent return on equity and | ||
| recovery of initial costs associated with achieving Washington Gass business process outsourcing initiatives over a four-year period; |
(iii) | the recovery of the costs of hexane used to condition natural gas deliveries from a liquefied natural gas terminal in Cove Point, Maryland, as a gas cost from both sales and delivery service customers. The Purchase Gas Charge for sales customers and the Balancing Charge for delivery service customers provide for the full recovery of the heating value equivalent of hexane that has been injected into Washington Gass natural gas distribution system since February 2006; | ||
(iv) | the implementation of a Gas Administrative Charge, which removes the cost of uncollectible accounts expense related to gas costs from base rates and instead, permits the utility to collect an allowance for this expense through its Purchased Gas Cost provision; | ||
(v) | the implementation of a new mechanism, effective October 1, 2007, for sharing asset management revenues between customers and shareholders based on the Virginia portion of revenues in excess of $6.0 million annually and |
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(vi) | the implementation of a long-term capital replacement project to address mechanical couplings in Virginia. |
WGL Holdings, Inc. and Washington Gas Light Company (Registrants) |
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Date: September 26, 2007 | /s/ Mark P. OFlynn | |||
Mark P. OFlynn | ||||
Controller (Principal Accounting Officer) |
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