WASHINGTON — A major energy provider in D.C. didn’t deliver on its clean energy pledge, and now it’s paying the price.

Attorney General Brian L. Schwalb announced a $2.1 million settlement with AltaGas, Ltd., the parent company of Washington Gas, over its failure to meet solar energy development requirements outlined in a 2018 merger agreement. In addition, it will have to start paying daily penalties in 2025 if it fails to meet its 10 megawatt solar energy obligation by the end of the year. 

The issue stems from the 2018 merger between AltaGas and Washington Gas, which included a mandate for AltaGas to develop 10 megawatts of solar energy capacity in the District. The goal was to offset greenhouse gas emissions and support the city’s climate policy objectives. By July 2023, AltaGas had only developed 2.4 megawatts of solar capacity—less than 25% of the requirement. This failure prompted action from the Office of the Attorney General (OAG) and the Public Service Commission (PSC), leading to the settlement.

• AltaGas will pay $2.1 million to the District for missing the July 2023 solar capacity deadline.
• Beginning in 2025, AltaGas will incur daily penalties ranging from $1,500 to $3,600 until the full 10 megawatts of solar capacity is achieved.
• Up to $2.1 million of additional penalties will support the District’s Renewable Energy Development Fund, promoting further solar resource development.

These measures are designed to incentivize AltaGas to fulfill its clean energy commitments while directly benefiting the District’s renewable energy initiatives.

1. Environmental impact: Developing solar energy capacity is a critical step in reducing greenhouse gas emissions. The District has set ambitious climate goals, including achieving carbon neutrality, and holding corporations accountable is essential to meeting these targets.

2. Economic justice: Beyond environmental benefits, the merger agreement included provisions for energy efficiency programs targeting low-income, multifamily buildings. AltaGas’s failure to meet its solar commitments delays broader benefits for vulnerable communities.

3. Setting a precedent: This case highlights the power of regulatory agreements to enforce corporate accountability. Attorney General Schwalb’s actions send a clear message: companies cannot ignore their promises to invest in sustainable energy without consequences.

This settlement builds on the OAG’s track record of holding polluters accountable and promoting environmental justice. Recent wins include securing $57 million from Pepco for contaminating the Anacostia River and recovering nearly $120 million over the past decade for environmental initiatives.