In Response to AOBA, Washington Gas Adopts New Security Deposit Policy for Non-Residential DC Customers

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Washington Gas Light Company
District of Columbia Surety Bond Policy

As a result of the Formal Case No. 1054 Non-Unanimous Agreement of Stipulation and Full Settlement, Washington Gas Light Company (“Washington Gas”) hereby provides its Surety Bond Policy for the District of Columbia.

Washington Gas will accept surety bonds from a commercially rated insurance company in lieu of security deposits from Commercial, Industrial and Group Metered Accounts in the District of Columbia. Group Metered Accounts must have more than four units to qualify. The following conditions apply.

• The security requirement must be greater than $1,000. Security requirements less than $1,000 will continue to be paid in cash or check. If a customer has several properties with individual deposits less than $1,000, a single bond with a value equal to the combined deposit may be given as long as all of the account numbers are listed on the bond.

• If account is shut off for non-payment, security bond may not be used as a substitute for paying outstanding balance to have service restored.

• Washington Gas must be the only beneficiary of the bond or policy, and the policy term must be for at least 12 months.

• Washington Gas must be notified by the bond issuer at least 30 days in advance of a policy’s termination or non-renewal, during which Washington Gas may file a claim for unpaid bills.

• Washington Gas will send a reminder 60 days in advance of a bond’s expiration notifying the customer if they qualified based on payment history to have a security requirement lifted. If they have not qualified for a security waiver, the customer will be advised to obtain a renewal or replacement bond.

• Bonds in lieu of deposits for third party suppliers must be negotiated with the supplier. Washington Gas cannot be a beneficiary of these contracts.

• If the policy is terminated or not-renewed, the customer must substitute an equal quality bond, or a cash deposit, unless they qualify based on their credit history for a security deposit waiver.

• The conditions under which a customer may qualify for a security deposit waiver are listed below. These may change from time to time in accordance with regulatory and tariff changes.

Deposit and waiver requirements for Non-residential customers:

Note – these conditions are subject to change from time to time in accordance with tariff changes and regulatory changes such as the Consumer Bill of Rights.