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PUC Approves Lower Rate Increase than Requested by Philadelphia Gas Works

November 08, 2017

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a settlement that reduces a proposed rate increase for Philadelphia Gas Works (PGW) for its natural gas service.

The Commission voted 4-0 to approve the settlement, which includes a $42 million increase (6.8 percent) in PGW’s annual revenues and resolves all other issues related to the company’s request.  PGW’s initial request called for a $70 million (11.6 percent) increase in additional annual revenues.  Today’s action reduced the PGW rate request by approximately 40 percent.

With the approved settlement, the average total monthly bill for a typical residential customer using 76 Mcf of gas per year will increase from $94.06 to $99.94 per month (6.25 percent).  Under PGW’s initial request, the average total monthly bill for a typical residential customer using 76 Mcf of gas per year would have increased from $94.06 to $104.65 per month (11.3 percent).  The new rate takes effect Nov. 28, 2017.

Additionally, in the approved settlement the parties agreed:

  • PGW can implement a three-year pilot Technology and Economic Development Rider to facilitate new gas load and line extensions on the company’s system;
  • PGW will implement a hazardous heating remediation pilot for at least two years, that will address heating system hazards and weatherize the homes of qualifying customers; and
  • PGW will continue exploring ways to improve its’ customer assistance programs, including possible modifications to its Crisis acceptance policy; enhanced outreach to households unable to reconnect to PGW service because of high balances; and ways to improve enrollment in the company’s Customer Responsibility Program.

A joint petition to approve the settlement was supported by numerous parties, including PGW, the PUC’s Bureau of Investigation and Enforcement, the state Office of Consumer Advocate, the state Office of Small Business Advocate, the Retail Energy Suppliers Association, Philadelphia Industrial & Commercial Gas Users Group, the Coalition for Affordable Utility Services and Energy Efficiency in Pennsylvania, the Tenant Union Representative Network, and Action Alliance of Senior Citizens of Greater Philadelphia.

PGW provides natural gas service to approximately 500,000 customers in the City and County of Philadelphia.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner.

For recent news releases and video of select Commission proceedings or more information about the PUC, visit our website at Follow the PUC on Twitter – @PA_PUC for all things utility.  “Like” Pennsylvania Public Utility Commission on Facebook for easy access to information on utility issues.

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Docket Nos.: R-2017-2586783

Contact:Nils Hagen-Frederiksen
Press Secretary

Pennsylvania Public Utility Commission
Press Office
P.O. Box 3265, Harrisburg, PA 17105-3265
(717) 787-5722 FAX (717) 787-4193

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