PGW Bond Ratings Upgraded Underscoring Continued Financial Strength

For the second consecutive year, PGW’s bond ratings have increased, ranking in the ‘A’ category of three major credit rating agencies, signaling strong confidence in the company’s financial health and operations

PHILADELPHIA (October 12, 2026) – As Philadelphia Gas Works (PGW) closes the books on another fiscal year, three global credit rating industries -- S&P Global Ratings, Fitch Ratings, and Moody’s Ratings – have either raised or maintained their long-term ratings of the City of Philadelphia’s Gas Works Revenue Bonds.

“We are proud of this momentum and remain committed to building upon the financial stability that supports our customers, our workforce and the city we serve,” said Joseph F. Golden, Jr., Executive Vice President & Acting Chief Financial Officer at PGW. “The upgraded rating and positive outlook reflect the strength of our financial foundation and underscores the confidence in PGW’s ability to maintain critical infrastructure, diversify and grow revenue, and deliver safe, affordable and reliable natural gas to Philadelphians.”

S&P Global Ratings upgraded its long-term rating and underlying rating (SPUR), on the City of Philadelphia’s Gas Works Revenue Bonds issued under its 1998 general ordinance and the 18th Series (approximately $236.7 million) Gas Works Revenue Refunding Bonds from ‘A’ to 'A+'. The ratings agency also affirmed its 'AA+/A-1' dual rating on the following issues: the 1998 ordinance, 8th series B, C, D, and E bonds, jointly supported by a letter of credit from TD Bank N.A. According to S&P Global Ratings, these upgraded ratings were cited as stemming from several factors, including:

PGW’s increased debt capacity, which is expected to maintain the utility’s exceptionally strong financial coverage as it issues planned debt to support PGW’s substantial capital program
The Public Utility Commission’s (PUC) recent decision to approve PGW’s rate request
The growing share of natural gas purchased through pre-pay agreements
Significant advancement made in the main replacement program

Fitch Ratings has maintained an 'A' rating on the City of Philadelphia’s Gas Works Revenue Bonds for its $236.7 million 18th Series Gas Works Revenue Refunding Bonds. According to Fitch, the 'A' rating illustrates PGW's strong and stable financial profile. The agency also cites PGW’s:

Strong revenue sustainability
Position as the exclusive natural gas distributor in Philadelphia
Affordable customer rates
Generally, constructive regulatory environment

Moody’s Ratings has updated its credit analysis of PGW and assigned an A3 ‘outlook positive’ rating. Moody's Ratings also assigned a revised A3 ‘outlook positive’ rating to the City of Philadelphia’s Gas Works Gas Works Revenue Refunding Bonds, Eighteenth Series (1998 General Ordinance). The added ‘outlook positive’ signals a potential upgrade in the medium-term with continued expected improvement in financial health. Moody’s assigned this rating citing:

LNG assets that create opportunities for strategic optimization due to storage capacity and efficient gas cost management
Stable collection rates
Strong debt service coverage ratio (DSCR) above the1.5x as required by the rate covenant

These ratings mark a significant point in PGW’s financial evolution over the past 25 years. Last year was the first time in the company’s nearly 200-year history that all three rating agencies rated its bonds in the ‘A’ category. Coupled with increasing its collection rate to 97% and exceeding its goals for maintaining and replacing critical natural gas infrastructure, PGW is poised to sustain this progress and continue to shape Philadelphia’s evolving energy future.

“The upgraded bond ratings are a major accomplishment and a testament to the continued hard work of PGW’s management team,” said City Treasurer Jacqueline Dunn regarding the S&P and Moody’s actions.

Read the full rating report HERE.

PGW Recognizes National Public Natural Gas Week

PHILADELPHIA (October 5, 2026) – Philadelphia Gas Works (PGW) joins the American Public Gas Association (APGA) in celebrating National Public Natural Gas Week, which is observed October 4-10, 2026. This nationwide observance builds awareness about the value and benefits of a municipally owned natural gas utility for residential and commercial customers.

This week and beyond, PGW is raising awareness of the benefits of being a public natural gas utility to communities across Philadelphia and recognizes the need to access natural gas as a safe and affordable energy source.

Unlike investor-owned utilities, as a municipally owned natural gas utility, PGW does not have shareholders. Public natural gas systems do not face pressure to pay dividends to stockholders. Having a public utility helps ensure dollars stay local by creating local jobs and broadening the tax base.

PGW’s natural gas contributes to a variety of everyday experiences and necessities for Philadelphia residents and business owners including:

Cost savings: Customers who use natural gas for heating, cooking, and drying clothes save an average of more than $1,030 per year compared to homes using electricity. PGW offers the most affordable energy option in addition to providing energy rebates and payment assistance programs.
Playing a part in reducing greenhouse gas emissions in PGW’s service territory: Emissions from U.S. natural gas distribution systems have declined 70% since 1990. Natural gas and its delivery systems play a crucial role in transitioning to cleaner energy.
Employment opportunities: PGW plays a vital role in hiring local talent and diverse vendors throughout the industry, strengthening economic growth in the Philadelphia region and serving the communities that many in the workforce call home.

PGW has been delivering safe and reliable natural gas to Philadelphia for over 190 years. As the nation’s largest municipally owned gas utility, PGW works to enhance the quality of life for all by delivering safe, reliable, and affordable energy in an environmentally responsible way.

To learn more about the benefits of natural gas and how your public natural gas system works, please visit, https://www.pgworks.com/.

PGW Awarded $1.1M Grant to Help Reduce Methane Emissions

PA/EPA Grant to support PGW’s Valve Modernization Project

PHILADELPHIA (September 29, 2026) — Philadelphia Gas Works (PGW) has been awarded a $1.175M grant from the Pennsylvania Department of Environmental Protection.

The Reducing Industrial Sector Emissions in Pennsylvania (RISE PA) Grant Program is investing in projects to reduce greenhouse gas emissions (GHG). With the grant, PGW will implement a gas valve modernization for its citywide methane reduction project. By replacing valve components and transitioning to a newer, more innovative industry technology, the valves will perform the same gas pressure control while improving air quality in historically underserved Philadelphia neighborhoods. The initiative replaces 27 valve components at nine Metering and Regulating (M&R) Stations and is expected to reduce valve methane emissions by 54%.

“PGW is actively reducing its carbon footprint, and we continue to upgrade our infrastructure to help reduce energy use and greenhouse gas emissions,” said Janelle Johnson-Grummert, Director of Sustainability at PGW. “As a city-owned, nonprofit utility, identifying and securing grants such as the RISE PA helps us invest in operational needs and sustainable upgrades while responsibly managing costs for our ratepayers.”

It is PGW’s goal that this project will contribute to long-term health and quality of life improvements for residents in the city of Philadelphia, while maintaining safety at our stations.

The valve modernization project is a component of PGW’s broader sustainability strategy and efforts, which include:

Main and service replacement program, which has reduced more than 131,000 metric tons of CO2e between 2005 and 2025. In 2024, PGW applied for and was awarded Natural Gas Distribution Infrastructure Safety and Modernization grants from the U.S. Department of Transportation’s (DOT) Pipeline and Hazardous Materials Safety Administration (PHMSA), established by the historic Bipartisan Infrastructure Law. These grants, combined with two other awards from PHMSA since 2022, are expected to fund a $125M infrastructure plan in Philadelphia’s historically underserved neighborhoods. The project will result in the replacement of 66 miles of cast iron main, and the creation of 120 new skilled jobs, and reduce 412 metric tons of methane emissions.
Low Carbon Pathways project to look at possible long-term pathways and considerations for reducing greenhouse gas emissions in Philadelphia. This project will next conduct community engagement sessions in 2026 to gather input and feedback to inform PGW’s ongoing and future work. Those findings will be made available to the public.
Since 2011, PGW invested more than $110 million to weatherize nearly 34,000 low-income customer homes via the Home Comfort program, and 52 multi-family buildings via Low Income Multifamily Efficiency program (LIME). Home Comfort and LIME are part of PGW’s free Low Income Usage Reduction Program (LIURP).
In 2025, PGW eliminated more than 12,000 metric tons of carbon dioxide equivalent emissions including more than 3,000 metric tons saved by customers through PGW’s energy-saving grants, rebates, and educational programs.
Diversifying PGW’s fleet thanks to the Pennsylvania Department of Environmental Protection Agency’s Alternative Fuels Incentive Grant , which helped PGW secure 5 new electric vehicles, leading to 4.5 metric tons of CO2e reduction in 2024 alone.

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