Chairperson Charles Allen (Ward 6) opened the hearing on Bill 26-596, the Utility Rates and Rate Making Amendment Act of 2026, at 9:45 a.m. on Monday, June 29, 2026. The hearing focused on public witnesses; government witnesses will testify on Thursday, July 2, 2026 at 1 p.m. Allen noted that utility costs have surged nearly 70% from 2017 to 2025, with one in six households nationwide behind on energy bills and average overdue balances near $800. The bill would require the Public Service Commission (PSC) to approve multi-year rate plans only if based on historic test years and without reconciliation, specify refunds for excess return on equity, and require gas infrastructure projects to demonstrate customer benefit and analysis of alternatives.
Good morning, everyone. My name is Charles Allen. I'm the Ward Six Council Member and Chair of the Council's Committee on Transportation and the Environment. Today is Monday, June 29th, and we are meeting in room 500 of the John A. Wilson Building, as well as over the Zoom virtual platform. The time is now 9 45 a.m. and I'm calling to order this public hearing of the committee. During today's public hearing, we're going to hear from public witnesses on Bill 26-596, the Utility Rates and Rate Making Amendment Act of 2026. The committee has also convened this hearing to be able to discuss additional policy solutions to make energy more affordable across the district. As everyone in this room knows well, utility costs have been rising across the country. One in six households nationwide were behind on their energy bills in late 2025 due to record high summer cooling costs and rising winter heating rates, and the average overdue balance for all utility bills was nearly $800. Here in the district, average energy costs have surged by nearly 70% from 2017 to 2025. Calls about utility shutoff notices have surged, and many families are in the uncomfortable position of determining which essential bills to pay. The district's public service commission is the district's energy utility regulator. It is meant to serve on it as a check on those utilities by approving rates and monitoring industry practices. The PSC approves spending for around one-third of the electricity rates and two-thirds of gas rates. And I'm increasingly concerned the commission has not used all the tools available to it to push back against proposals to increase those rates. Just this year, the PSC approved a modified version of Washington Gas' District Safe Plan, a decision that writes a ratepayer check of 50 million dollars or more for the next three years, and one which the Office of the Attorney General has called, quote, simply a more expensive continuation of project pipes with fewer guardrails. And just recently, the PSC had one of their rate increases vacated by the Court of Appeals decision, which implicates a need for process reform. While the cost of generating power outside DC has skyrocketed, the cost of distributing power within the district has risen in kind. And we continue to rely on imported electricity and natural gas. Planning a better future at a reasonable cost to ratepayers will be essential to avoiding stranded costs and paving the way for more affordable energy dependent DC. While higher costs are a substantial factor driving utility affordability crisis, building inefficiencies also play a large role. It may not be exciting to talk about weatherization or insulation upgrades, but the reality is that we have to improve energy efficiency in our multifamily properties so that our neighbors are not paying more than they should or actually are even using. We need to make bill assistance, energy efficiency upgrades more accessible to low-income households, and it's important that we improve access to our utility affordability programs, but we also have to address the root causes. Today's hearing is aimed squarely at reassessing what is possible for helping district residents and businesses deal with skyrocketing prices as extreme weather events and warming continues. Here's a quick review of the bill that is in front of us today. Bill 26-596 was introduced on February 13th of 2026 by Councillors White, Parker, Pinto, and Nadeau, and is referred to this committee on March 3rd. The bill would require the Public Service Commission to approve multi-year rate plans only if the plans are based on historic test years and do not include reconciliation. It would specify how excess return on equity would be refunded to customers and also requires the Public Service Commission to approve gas infrastructure projects only if the company demonstrates customer benefit and that the company analyzed cost effective alternatives. As I mentioned earlier, today's hearing is going to be reserved for our public witnesses. The committee will receive government witness testimony on Thursday, July 2nd at 1 p.m. And that's we're going to reconvene that afternoon to make sure we hear there. We uh have been joined by Councilmember Trayon White, so I'm gonna turn to Councilman Trayon White for an opening statement. Then after that, we will call our first panel of witnesses. And I do expect other members will be joining us during the day today, and I'll make sure they have time for an opening statement when they join us. But Councilmember Trayon White, let me turn to you and good morning. Good morning, good morning. Um, I want to thank you, Councilmember Allen, for hosteless this morning. Uh, we are in a situation now where residents are forced to make hard decisions up about everyday bills, including utility bills. Um, today's hearing on bill 26 uh 0596 to utility rates and rate making amendment act of 2026 and this morning policy solution to improve utility affordability. This bill will require the public service commission to approve multi-year rate plans. Only the plans are based on historical test years and do not include reconciliation. It will specify how access return on equity will be refunded to customers. Also, also requires the Public Survey Commission to approve gas infrastructure projects only if the company demonstrates customer benefits and that the company analyze cost-effective alternatives. The council just passed uh one of the most um comprehensive budget reforms relates to the urgent resuscitation when it comes to uh utilities and in effect in the working class and lower class residents in the district who are struggling to stay in the district. Yes, but now many water residents and many residents across the district have been selling the alarm on affordability being DC, particularly when it comes to utility bills. With so many rent burning and struggling, people struggling to make ends meet the additional pressures uh rapidly rising and uh forcing people to make a decision about life choices, uh especially those with families and have working minimum wage and livable wages. The way their families are the rest of the instability is a result is a result of the lack of infrastructure, strategic planning, and local government working for the people. I appreciate the assistance of relief that utility companies' nonprofit organizations, DC government has to offer, but we can do a whole lot more.