Union Protests Gas Rate Hike to Raise Outsourcing Issue

The Office and Professional Employees International Union yesterday filed to intervene in a rate hike request by Washington Gas Light Co., saying it planned to protest the proposal out of concern that the company may hire outside contractors to replace customer service workers, which the union represents.

The company requested a rate increase of 7.7 percent in December with the District's Public Service Commission and in September with Virginia regulators.

Of the almost 300 customer service employees who work in the Springfield and Washington call centers, more than half might lose their jobs, said Dan Dyer, OPEIU's Local 2 president. "Our members are highly trained and experienced to take emergency calls if there's a leak, if you want to adjust a bill, and they are all people who live and work in the community," he said. "What ends up happening is this will be outsourced to a call center."

The company, which provides natural gas to nearly 1 million customers in Maryland, Virginia and the District, has not asked for a rate increase since 2003. "There has been inflation, additional compliance-related expenses, including Sarbanes-Oxley and the Pipeline Safety Act, and a decline in natural gas use by customers. Those are really our reasons for a rate increase," said Jan Davis, a company spokeswoman. Customers in Virginia may notice a slight increase in their bills starting this week, but if Virginia regulators reject the proposed increase, customers will receive a refund.

"We haven't made a decision to outsource yet," Davis said. "If and when it's made, it will be made in the context of ensuring continued employee customer and public safety."

Although it is not entirely common, other unions and community groups have tried to intervene when utility companies applied for rate increases in the past, according to Richard E. Morgan, a member of the District of Columbia Public Service Commission.

During the next two months, OPEIU plans a series of actions to publicize its opposition to Washington Gas's request for a rate increase and to possible outsourcing, Dyer said.

The union said it will take out advertisements on radio and in print, contact local politicians and circulate petitions in the community. It also hopes to appear before the Public Service Commission in coming hearings.