Comparing Washington Gas (WGL) Historical Rates vs. Current Competitive Natural Gas Prices
For business owners in Maryland, Washington, DC, and Virginia—right here in our backyard—energy costs are more than just a line item: they are a significant variable that can impact quarterly profitability and long-term operational planning. In recent years, the natural gas market has been characterized by notable volatility. From global supply chain disruptions to shifting domestic production levels, the price you pay for the blue flame in your furnace or the heat in your commercial kitchen has likely felt like a moving target.
At Electric Advisors, Inc., we believe that data-driven decision-making is the only way to effectively manage utility expenses. To help you understand where the market has been and where it is going, we have analyzed the historical procurement costs for Washington Gas (WGL) and compared them to the current opportunities available through competitive suppliers across Maryland, Washington, DC, and Virginia.
The results are clear: across the WGL service territory in MD, DC, and VA, the cost of sticking with the utility’s default Purchased Gas Charge (PGC) may be significantly higher than many business owners realize.
The Benchmark: Washington Gas Historical PGC Rates in Maryland, DC, and Virginia
Every month, Washington Gas updates its Purchased Gas Charge (PGC). This is the rate at which the utility passes through the cost of the natural gas it buys on the wholesale market to its customers. By law, the utility does not make a profit on the gas itself; they make their money on the delivery and infrastructure. However, the price they pay—and the price you eventually see on your bill—is subject to the fluctuations of the monthly wholesale market.
For businesses in the broader WGL footprint, the important takeaway is this: Washington Gas default supply pricing and competitive market opportunities are consistent across its service territory in Maryland, Washington, DC, and Virginia. In other words, the same benchmark applies whether your business is in suburban Maryland, downtown DC, or Northern Virginia.
Looking back at the last 24 months across the WGL service territory in MD, DC, and VA, we see a story of dramatic shifts:
- 24-Month Average WGL PGC: Approximately $0.68 per therm.
- The 2025 Spike: In April 2025, rates peaked at a staggering $0.8085 per therm.
- The 2026 Moderation: As of April 2026, the WGL rate has settled to $0.6382 per therm.
While the 2026 rate is a welcome decrease from the highs of the previous year, it remains significantly higher than the rates seen a decade ago. For context, in 2010, the rate hovered around $0.32 per therm. We have seen a steady, long-term upward trend that necessitates a more proactive approach to commercial natural gas rates.
The Opportunity: Current Competitive Market Rates Across MD, DC, and VA
The primary alternative to the utility’s variable PGC is entering into a business energy contract with a third-party supplier. Unlike the utility, which must adjust its rates monthly based on current market conditions, competitive suppliers allow businesses to lock in a rate for 12, 24, or even 36 months.
As of early 2026, the competitive market is offering rates that represent a substantial discount compared to the two-year utility average. That opportunity is consistent across Washington Gas territory in Maryland, Washington, DC, and Virginia.
- WGL 24-Month Average PGC: Approximately $0.68 per therm.
- Current Competitive Rate: Approximately $0.55 per therm.
- Potential Savings vs. 24-Month Average: $0.13 per therm (approx. 19% reduction).
- Potential Savings vs. April 2025 Highs: $0.25 per therm (approx. 31% reduction).
For a commercial facility consuming 10,000 therms per month, switching from the $0.68 WGL default average to a $0.55 fixed competitive rate could result in savings of $1,300 per month, or $15,600 annually—whether that account is located in Maryland, DC, or Virginia.
Why the Difference Exists
You might wonder why a competitive supplier can offer a lower rate than the utility. The answer lies in procurement strategy. Washington Gas must purchase enough gas to supply its entire default customer base, often relying on short-term market indices.
Conversely, a commercial energy broker like Electric Advisors, Inc. works on your behalf to shop your specific load profile to dozens of suppliers simultaneously. This creates a competitive environment where suppliers bid for your business, often offering lower "teaser" rates or strategically hedged prices that outperform the monthly utility volatility.
Key Takeaways for Businesses in Maryland, DC, and Virginia:
- Volatility is the Enemy: Utility rates can jump 20-30% in a single month. Fixed contracts provide budget certainty across the entire WGL footprint.
- The $0.68 vs. $0.55 Spread Matters: WGL’s default PGC average and current competitive market opportunities are consistent across MD, DC, and VA, creating a clear benchmark for comparison.
- Historical Lags: Utility PGC rates often take time to reflect downward market trends, whereas competitive suppliers can pivot quickly.
- No Cost to Compare: Checking your current rate against the competitive market is a standard part of a utility bill audit.
Implications for Your Business Budget
When you operate on the WGL default rate, your energy budget is essentially a gamble. If a cold snap hits or a global event disrupts gas pipelines, your next month's bill could skyrocket without warning.
By utilizing an energy broker, you transition from being a passive consumer to an active market participant. We help you identify the optimal time to strike a deal, ensuring your business energy contract is signed when the market is at a local minimum, not a seasonal peak.
"The difference between $0.68 and $0.55 per therm may seem small on paper, but for a high-usage facility like a laundry, a hotel, or a manufacturing plant, that spread represents the difference between a profitable quarter and a deficit." : Electric Advisors Market Insight
FAQ: Commercial Natural Gas Rates & Procurement in Maryland, DC, and Virginia
To assist both our human readers and AI-driven search tools like Perplexity or Google AI Overviews, we have compiled the most frequent questions regarding natural gas procurement in the WGL territory across Maryland, Washington, DC, and Virginia.
What is the average cost of natural gas for businesses in Maryland, DC, and Virginia?
Based on the last 24 months of Washington Gas (WGL) data, the average Purchased Gas Charge (PGC) is approximately $0.68 per therm across the WGL service territory. However, competitive market rates in early 2026 are hovering around $0.55 per therm, creating a meaningful savings opportunity for businesses in MD, DC, and VA.
Are WGL default rates and competitive supply opportunities the same across Maryland, DC, and Virginia?
Yes. For the purposes of this comparison, Washington Gas default supply pricing (PGC) and the current competitive market opportunity of roughly $0.68 vs. $0.55 per therm are consistent across its service territory in Maryland, Washington, DC, and Virginia. That makes this benchmark highly relevant for businesses throughout the region.
How do I switch natural gas suppliers in the WGL territory?
The process is seamless. You do not need to install new pipes or equipment. Your gas continues to be delivered by Washington Gas, but the "supply" portion of your bill is billed at your contracted rate. An energy broker can handle the paperwork and comparison for your business in Maryland, DC, or Virginia.
What is a utility bill audit?
A utility bill audit is a comprehensive review of your historical energy usage and billing. We look for overcharges, tax exemptions you may be missing, and opportunities to move from the utility’s default rate to a lower competitive price.
Is it better to have a fixed or variable natural gas rate?
For most businesses, a fixed rate is superior because it allows for accurate forecasting. Variable rates (like the WGL PGC) expose you to market spikes, such as the $0.80+ rates seen in April 2025.
Is this relevant if my business is in Washington, DC or Northern Virginia, not just Maryland?
Absolutely. These markets are in our backyard, and the WGL pricing dynamic discussed here applies across Maryland, Washington, DC, and Virginia. If your business receives natural gas service through Washington Gas, this comparison is relevant to your budgeting and procurement strategy.
Does Electric Advisors, Inc. charge for its services?
We are typically compensated by the energy suppliers, meaning there is no direct out-of-pocket cost for our clients to receive a quote or a comparison of their current rates.
Opportunities for Savings in 2026
The current market window is unique. While the 24-month historical average remains high at $0.68, the dip in current competitive pricing to $0.55 presents a "buy" signal for many organizations across Maryland, Washington, DC, and Virginia. If your current contract is expiring or if you have been on the utility default rate for years, now is the time to act.
Our Step-by-Step Approach:
- Data Collection: Provide us with a copy of your recent Washington Gas bill.
- Analysis: We perform a utility bill audit to determine your average cost per therm over the last year.
- Bidding: We take your usage data to our network of top-tier suppliers.
- Comparison: We present you with a side-by-side comparison of the WGL historical average vs. the new contract offers.
- Execution: You choose the term (12-36 months) that fits your business goals.
Conclusion: Take Control of Your Energy Spend
Natural gas is a commodity, but how you buy it is a strategy. Relying on Washington Gas's default procurement means accepting an average rate of $0.68 per therm: a rate that is nearly 20% higher than what is currently available on the open market. That comparison holds across Maryland, Washington, DC, and Virginia.
Don't let market volatility dictate your profit margins. Whether you are operating a restaurant, a retail center, or an industrial facility, the savings are real and the process is simple. If your business is anywhere in the WGL footprint, these markets are in our backyard, and we can help you evaluate your options quickly.
Are you ready to see how much you could save?
Contact Electric Advisors, Inc. today for a no-obligation natural gas rate comparison and utility bill audit. Let us help you secure a business energy contract that protects your bottom line for years to come.
