Press Release

HARRISBURG – The Public Utility Commission (PUC) today approved a permanent $36 million increase in base rates for the Philadelphia Gas Works (PGW), significantly less than the $60 million the company had originally requested in February.

The $36 million increase has been in place on a temporary basis since April, when the PUC granted PGW emergency rate relief in order to maintain its overall liquidity and access to capital markets.

Although the rate increase has been in effect for five months, most residential customers probably have not seen an immediate impact on their bills because customers generally consume less gas during spring and summer. Once the heating season begins, a typical residential heating customer using 100,000 cubic feet of natural gas annually can expect to pay about $70 more a year.

In June, PGW reached a settlement with various parties, including the state’s Consumer Advocate and Small Business Advocate, to accept the permanent $36 million increase. PUC Administrative Law Judge Cynthia Williams Fordham recommended that the PUC approve the settlement.

As part of her review of the case, Judge Fordham held public input hearings in May in Philadelphia and Trevose.

For more information about the PUC, visit our website at www.puc.paonline.com.

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