Washington Gas proposes Silver Spring network geothermal pilot; tenants, clergy and community groups press for approval

Washington Gas Light (WGL) presented a proposed pilot thermal energy network for a roughly 250‑customer footprint in Silver Spring, primarily Northwest Park Apartments, Victory Oaks senior housing and a set of single‑family homes. The company asked the commission to approve its budget and a reconcilable rider that would recover pilot costs from nonparticipating customers; it also proposed a 10.5 percent return on equity as an incentive for the investment.

WGL’s presentation

Aaron Khan, director of policy and special projects at Washington Gas, introduced the Silver Spring proposal and said the utility had sought sites that met the Warmth Act criteria—greater than 80 percent low‑ and moderate‑income (LMI) customers and existing gas service. Khan said the pilot area’s targeted customer mix is about 250 customers inside roughly one square mile and that the site design includes two bore fields, roughly 180 boreholes 500 feet deep, about 9,500 feet of ambient loop and a pump house. WGL selected CDM Smith as its engineering contractor for the conceptual design.

Costs and incentives

WGL presented a conceptual budget range of about $60.8 million before incentives and roughly $43.3 million after currently estimable federal and state incentives (IRA/ITC and MEA assistance). The utility told the commission it would seek IRA/MEA funding and the investment tax credit where eligible but acknowledged these funding streams are applied for after construction and are not guaranteed; company staff said they were confident eligibility was reasonable.

Proposed cost recovery method

Washington Gas proposed a reconcilable rider for nonpilot customers to recover capital and operating costs. The company said operating (noncapital) recovery would begin in 2026 and the capital portion would be recovered over a short window the company described as the pilot period (company presentation used a 2‑year capital recovery assumption); WGL said the rider would be reconciled annually and could be extended to cover decommissioning costs if the pilot did not continue.

Community engagement and community support

WGL presented outreach it said it conducted with local partners including Action in Montgomery and Interfaith Power and Light; the proposal team said it had spoken with local officials and community stakeholders and that several community organizations support the Silver Spring project. During the hearing, multiple Northwest Park residents, tenants association leaders, clergy and local faith and civic organizers testified in favor of the Silver Spring pilot and described indoor air‑quality testing that showed elevated nitrogen dioxide levels in many apartments. Tenants and clergy asked the commission to approve the project with protections for renters and attention to appliance electrification (induction cooktops, heat pump water heaters) and language on data transparency.

Commission and staff questioning

Commissioners pressed WGL on the budget assumptions, whether the projected public benefits justified the proposed rider, and the company’s stated goal to include single‑family homes in the pilot footprint. Commissioners also asked whether continuing maintenance of inactive gas infrastructure had been included in WGL’s budget and how opt‑outs during the pilot would be handled; WGL said any opt‑outs would be absorbed through the proposed rider and that the Warmth Act’s opt‑out provisions required the utility to keep inactive gas facilities in place so that customers can return to gas service if they choose.

Labor and timeline issues

WGL said it had complied with the Warmth Act’s meeting‑and‑conferring requirements, including initial engagement with labor groups, and that it planned workforce engagements if the pilot proceeds. WGL proposed a three‑year buildout timeline and sought a commission exception to the statutory pilot schedule so it would have time for permitting and construction.

Discussion versus formal decision

No formal commission decision was made at this hearing. WGL’s request for authority to recover costs via a reconcilable rider, its proposed ROE add‑on and budget approval remain pending. Commissioners asked detailed follow‑up questions and requested additional documentation on certain points (funding certainty, inclusion of decommissioning and gas‑maintenance costs in budgets, and the projected bill impacts for nonpilot customers). WGL said it would provide further information in response to staff and party discovery.

Clarifying details

- WGL reported conceptual costs of $60.8 million pre‑incentives, $43.3 million post‑estimated incentives. - Targeted customers about 250 in a roughly one‑square‑mile area, with key participants Northwest Park Apartments, Victory Oaks senior housing and 10 single‑family homes. - Proposed cost recovery: reconcilable rider for nonpilot customers; company estimated $5–$8 per month bill impact for nonparticipants depending on final costs.

What the community speakers said

Multiple tenant leaders and clergy testified that indoor air quality testing in Northwest Park found nitrogen dioxide levels above EPA outdoor guidance in many apartments and argued that requiring electrification of apartments and pursuing the geothermal pilot would reduce childhood asthma and other health burdens. Advocates asked for strong tenant protections, use of appliance rebate funding where available (IRA/MEA/utility programs) and transparent reporting of pilot data so other jurisdictions can learn from the Silver Spring experience.