20 November 2009

WASHINGTON GAS APPEALS PSC'S $350K FINE

On January 14, and February 29, 2008, Washington Gas Light Company asked the D.C. Court of Appeals to review the PSC's September 28, 2007 order Nos. 14587 and 14262 fining WGL $350,000

for its failure to provide the Commission a requested document during the course of WGL's rate proceeding, Formal Case 1054.

In investigating WGL's rate increase request, the Office of the People's Counsel requested a number of documents from WGL, including its June 19, 2007 contract with Accenture for business process outsourcing. In addition to OPC, OPEIU Local 2 union and Commission staff requested a copy of the entire June 19, 2007 contract between WGL and Accenture. WGL objected to providing the documents to all the parties.
On July 19, 2007, OPC filed a motion to compel the production of the documents with the PSC. OPC provided additional information for the motion on July 20, 2007.The Commission ordered WGL to provide it with copies of the depreciation documents and the complete, unredacted agreement with Accenture on July 21, 2007. WGL provided the Commission with the requested accounting documents, but only provided an incomplete, redacted and unsigned copy of the Accenture agreement. On July 23, the first day of the evidentiary hearings, the PSC ordered WGL to produce copies of the documents to the parties by 5:00 p.m. that day. WGL told the Commission at the hearing it would not do so, and the PSC suspended the hearings.
On September 28, the PSC denied WGL's request for the Commission to reconsider its order to provide the documents and again ordered the Company to provide them to the parties. In a separate order issued that same day, the PSC fined WGL $350,000 for its failure to provide the Commission with a complete, unredacted copy of the WGL/Accenture contract when it was initially ordered to do so.
As a result of the Commission's orders fining WGL, the Company appealed. OPC filed a notice of intervention with the D.C. Court of Appeals supporting the Commission's orders upholding the $350,000 fine. WGL filed its brief on April 21, 2008, and a reply brief on June 25. OPC and the PSC filed briefs on June 4. The court set oral arguments for September 2008.