Press Release

PUC Approves Substantially Lower Rate Increase Than Requested by Philadelphia Gas Works

Published on 11/9/2023

Filed under: Gas

PGW Rate Increase Reduced by Nearly 70% Compared to Initial Request; PUC Also Directs Improvements in Assistance Outreach and Customer Service

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a substantially lower base rate increase than initially requested by Philadelphia Gas Works (PGW) for natural gas distribution services – while also directing PGW to enhance their outreach to at-risk households and examine ways to improve customer service and reduce complaints.

The Commission voted 5-0 to approve an annual distribution rate revenue increase of approximately $26,201,000 (3.15%) – a reduction of nearly 70%  from PGW’s initial request filed on Feb. 27, 2023, under which the company sought an increase in annual operating revenues of approximately $85 million per year (10.2%). 

PGW’s initial request would have resulted in the total monthly bill for a residential customer using 71 Mcf per year increasing from $125.38 to $137.73 (about 9.9%).  In its filing, PGW also proposed increasing its monthly residential customer charge from $14.90 to $19.50.

Today’s PUC Opinion and Order directs PGW to “scale back” new customer rates, consistent with the substantially smaller change in rates that was authorized by the Commission. The new rates for each customer class will be included in a compliance filing PGW has been directed to file with the Commission – at which time the exact rates, any increase in customer charges and the overall projected impact on customers’ monthly bills will be known.  The PUC’s approved increase in annual distribution rate revenue will become effective for service rendered on and after Nov. 29, 2023. 

Customer Service Enhancements

In its Opinion and Order, the Commission also directed PGW to address several customer service issues, directing PGW to make improvements in the following areas:

• Universal service program outreach – PGW is to adopt the census-based estimated low-income customer count from the PUC’s Bureau of Consumer Services and utilize such data to increase enrollment in the company’s customer assistance program.
• Improve customer service to low-income customers and applicants via data sharing and coordination – PGW should use data sharing and coordination to enhance the company's customer service to low-income customers and applicants and to facilitate enrollment and retention in the company’s customer assistance program.
• Customer service call center performance and handling of complaints – PGW is to undertake a quarterly review of all Initial Decisions adverse to PGW to identify trends, and then develop plans to address trends identified through its analysis to reduce complaints, improve compliance with the Code and Commission Regulations and policies, and to improve customer satisfaction.

PGW provides natural gas distribution services to approximately 516,000 customers in the City of Philadelphia.

About the PUC

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.

Visit the PUC’s website at www.puc.pa.gov for recent news releases and video of select proceedings. You can also follow us on Twitter, Facebook, LinkedIn, Instagram and YouTube. Search for the “Pennsylvania Public Utility Commission” or “PA PUC” on your favorite social media channel for updates on utility issues and other helpful consumer information.

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Docket No.: R-2023-3037933

Contact:

• David Hixson
  Deputy Press Secretary
  717-772-2766
  dhixson@pa.gov