Washington Gas Light Co. plans to file for new higher rates in all three jurisdictions it serves, the gas company's new chief executive officer told shareholders yesterday.
The company received a $3 million increase in Virginia effective Dec. 31, 1981, and rate relief amounting to $9.4 million in Maryland and $8.1 million in D.C. in early 1982.
The present "rates are not equal to the current cost of capital, and the amount of our investment and the cost of operations and financing continue to increase," said WGL President Don Heim, explaining the company's decision to ask for more.
WGL officials also told shareholders attending the company's annual meeting that, although WGL's subsidiary continues to drill actively for oil and gas, the company has no way of knowing yet what the payoff will be.
Heim noted that a gas well drilled in the Morrow-Springer formation, which just began deliveries to a pipeline last week, is delivering 1.9 million cubic feet a day.
Questioned by shareholders about returns produced by WGL's nonutility subsidiaries, company officials provided a breakdown. Davenport Insulation Inc., which manufactures and installs conservation products, lost 7 cents a share last year--a big improvement over the 1980 loss of 43 cents a share.
Crab Run Gas Co., which is involved in oil and gas exploration, made 8 cents a share compared with 13 cents in 1980; Another exploration company, Hampshire Gas, made 8 cents a share compared with 6 cents in 1980.