Citing charges of poor performance and inefficiency, the District temporarily halted a $57 million expenditure Washington Gas had requested for its citywide pipe replacement program. In a virtual hearing that lasted less than 15 minutes, the D.C. Public Service Commission voted to put the funding on hold until the gas company submits more information about its operations.
The ruling came as a surprise to climate advocates who have been closely watching the commission’s handling of PROJECTPipes, a 40-year, multibillion-dollar program launched in 2014.
“The fact that they’re not just rubber-stamping it is a good sign,” said Charles Spring, one of 10 activists who went to the Public Service Commission’s office for a demonstration on the morning of the ruling.
Major investments into methane gas infrastructure run counter to the District’s stated commitment to become carbon neutral by 2045, advocates argue. D.C. recently released its Carbon Free DC plan, which calls for eliminating fossil fuel use in 90% of all buildings and homes within 17 years.
Washington Gas did not respond to a request for comment in time for publication of this story.
Commission Questions Whether Washington Gas is Fixing Enough Pipe Leaks
Washington Gas asked for the $57 million in order to extend phase two of PROJECTPipes while it waits for the Public Service Commission to rule on whether the third phase will receive funding. The current phase of the project is funded by a surcharge that has shown up as a separate item on customer’s bills since 2021. Approval for that surcharge expired Dec. 31.
That means that, for now, Washington Gas can’t continue replacing pipes except for the ones that it would need to replace during its normal operations. As a baseline responsibility, the utility is required to fix emergency leaks and keep its infrastructure maintained, regardless of funding for special programs like PROJECTPipes.
But one of the key reasons the commission put the phase two funding on hold, according to the order issued Dec. 20, is that it’s unclear whether Washington Gas has been effectively addressing leaks — even with the additional funding it’s received from the surcharge.
Grade 1 leaks, which are the most serious, have increased in number during the current phase of PROJECTPipes, according to the Office of the People’s Counsel, which opposed Washington Gas’ $57 million request. The term “Grade 1” refers to a leak that “presents an immediate or probable hazard to persons or property and requires immediate repair.” During 2022, Washington Gas had 125 such leaks that were not fixed until the following year, OPC’s filing said.
Washington Gas said in its reply that OPC had misunderstood the data, but the utility did not include specific numbers showing a reduction in Grade 1 leaks.
“PROJECTPipes is not focused on identifying leaky pipes and replacing them,” said Mark Rodeffer of the D.C. Sierra Club. “They want to replace almost every pipe in D.C… If it was about leaks, you wouldn’t do it the way they’re doing it, and you would do it a lot cheaper.”
Why Climate Advocates Want to See PROJECTPipes Gone for Good
For years, environmentalists have pointed out that the District’s choice to spend money on major overhaul of its gas infrastructure directly contradicts its stated goals on climate change. It’s basically impossible to become carbon neutral while continuing to burn fossil fuels on-site in homes and buildings.
“[The Public Service Commission’s] order to hold off on a blanket approval for continuing the dysfunctional Phase 2 of Project Pipes marks a hopeful moment for the District,” said Chesapeake Climate Action Network’s Naomi Cohen-Shields in a press release. “We hope this is the first nail in the coffin for all of PROJECTPipes, as we instead turn our efforts towards a clean, safe and affordable energy system.”
Washington Gas has argued that PROJECTPipes helps the District meet its climate goals by reducing potential leaks and methane gas emissions. Methane gas coming from pipe leaks poses a serious climate harm, because methane is an even more potent greenhouse gas than carbon dioxide.
But climate advocates say that replacing aging gas pipes that aren’t leaking will make it far more difficult and costly for the city to leave fossil fuels behind.
“Washington Gas is trying to repackage it as a climate plan to reduce leaks — that’s just greenwashing,” Rodeffer said. “PROJECTPipes is about Washington Gas trying to squeeze every dollar they can out of D.C. residents.”
Gas Investments Could Exacerbate Climate Justice Dilemma
As more new buildings are built to rely solely on electricity (which D.C. law will require for most construction after 2026, and already requires for new government-owned buildings), the demand for gas will shrink. The cost of maintaining the system, however, will stay about the same.
With fewer people paying, gas rates could skyrocket for those still left using the system — especially if ratepayers continue to foot the bill for major infrastructure investments like PROJECTPipes.
Without some type of intervention, low-income District residents and renters could be the last ones on the hook for escalating rates. Wealthier homeowners will be more able to afford the high upfront costs of electrifying their houses in order to save money on utility bills in the longer term.
Council member Charles Allen introduced a bill early last year that would pay for low- and moderate-income households to install electric appliances, using both city and federal funds. But the “Healthy Homes Act” hasn’t moved much in the legislative process since a hearing in May.
“Who is going to transition when the economics demand it? People who can afford to,” Rodeffer said. “We need to start transitioning D.C.’s low- and middle-income households off the gas system first, so that they are not stuck holding the bag.”