Press Release

PUC Approves Rate Case Settlement with Philadelphia Gas Works

Published on 10/9/2025

Filed under: Gas

Settlement Grants Smaller than Requested Rate Changes, Seeks to Enhance PGW’s Methane Gas Detection, Decarbonization & Customer Assistance Efforts

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved smaller than requested rate changes for natural gas distribution services provided by Philadelphia Gas Works (PGW) and further directed PGW to continue evaluating key initiatives related to methane gas detection, decarbonization and customer assistance programs.

The Commission voted 5-0 to approve a Joint Petition for Settlement (joint settlement) without modification as detailed in the Recommended Decision of PUC Administrative Law Judge Eranda Vero.  The joint settlement was submitted by PGW, the PUC’s independent Bureau of Investigation and Enforcement, the Office of Consumer Advocate, the Office of Small Business Advocate (OSBA), Tenant Union Representative Network and Coalition for Affordable Utility Services and Energy Efficiency in Pennsylvania, and the Energy Justice Advocates.

PGW provides natural gas distribution service to approximately 518,000 customers in the City of Philadelphia.


PGW Rate Changes

Under the settlement, PGW is granted a base rate revenue increase of $62 million (approximately 9.3%) – $43 million less than the company’s initial request of $105 million (15.7%).  Additionally, the settlement includes a $1 adjustment to the monthly residential customer charge, from $16.25 to $17.25.

Under the settlement, the total monthly bill for an average residential customer using 61 Mcf/year will increase from $92.60 to approximately $98.70 per month (about 6.6%) instead of a monthly adjustment from $92.60 to $104.61 (approximately 13%) as initially proposed by PGW.

The new rates will be applicable to service rendered on and after Nov. 28, 2025.

The settlement also stipulates that PGW’s Weather Normalization Adjustment (WNA) remains in effect – though PGW will study the pros and cons for revising its basis for determining “normal weather” for purposes of the WNA and pro forma revenues in its base rates. The results of its analysis shall be presented in its next base rate case.

Methane Detection

PGW agrees to research the utilization of Smart Remote Methane Detectors (SRMDs) and present a comprehensive report within one year, detailing such items as costs; technology research updates for meters, software and communication technology; types of network solutions that are feasible for the utilization of SRMDs with PGW’s system, including AMI meter technology, cellular and other wireless network technology; and the lifespan of the technology and smart devices.

Within two months of issuance of the report, PGW must convene a meeting with all signatories to this settlement.

Decarbonization – Community Engagement

Within 12 months, PGW will convene two community engagement meetings to inform consumers of its evaluation of various potential pathways and considerations for long-term greenhouse gas emission reductions in Philadelphia. The meetings will be held virtually. 

In advance of each meeting, PGW will provide a message on the bills of customer assistance program participants and post notice of the meetings on its website to encourage customer participation.

Customer Assistance

The joint settlement also directs numerous improvements to the company’s customer assistance efforts, highlighted by the following steps that PGW is already taking, or has agreed to undertake:

• Strive to maintain its annual 2024 call center performance, including an evaluation of its call center for compliance with the company’s training to identify, track and prevent potential non-compliance with Chapter 56 – which governs standards and billing practices for residential public utility service.
  
  
• Conduct a root cause analysis on a monthly basis of informal complaints from the PUC’s Bureau of Consumer Services (BCS). This analysis will consist of reviewing a percentage of BCS complaints received and include identifying the case type, nature of the BCS complaint, the root cause of issue, and any corrective action.
  
  
• Complete analyses of recertification of its Customer Responsibility Program (CRP) and Hardship Fund. PGW will work with the Philadelphia Department of Revenue and the Pennsylvania Department of Human Services to engage in collaboration and data sharing that could improve enrollment in the company’s CRP.
  
  
• Enhance its Low-Income Usage Reduction Program (LIURP) by increasing its annual LIURP program budget to $9 million, starting in Calendar Year (CY) 2026; offering an additional pathway by which customers can apply for LIURP services, beginning in CY 2027; and holding annual meetings to discuss coordination of the LIURP program with weatherization, home repair and energy efficiency services in Philadelphia.
  
  
• Maintain its LIHEAP crisis acceptance threshold of $3,500 for households facing shutoff and increase its crisis acceptance threshold to $3,500 for households who are off.
  
  
• Coordinate with OSBA to hold a public event showcasing the company’s new Small Business Assessment Program. PGW plans to offer one 6-month payment plan to small business customers who are payment troubled and will track the number of small businesses shut offs for nonpayment by month until its next base rate filing.

 
About the PUC

Pennsylvania’s 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 X, 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-2025-3053112

Contact:

• Nils Hagen-Frederiksen
  Press Secretary
  717-418-2701
  nhagen-fre@pa.gov
• David Hixson
  Deputy Press Secretary
  717-772-2766
  dhixson@pa.gov