PGW FILES REQUEST WITH REGULATORS TO INCREASE DISTRIBUTION BASE RATES

$70M request will reduce the overall cast iron main inventory replacement time by 14%.

(Philadelphia, Pa. – February 28, 2020) – Philadelphia Gas Works (PGW) today announced that it has filed a base rate case with the Pennsylvania Public Utility Commission (PUC).  PGW has requested an overall rate increase of $70 million per year. The requested cost will help support PGW’s ongoing and proactive Pipeline Improvement Program and operations essential to maintaining a safe, reliable and environmentally responsible natural gas system.

In the event that the full amount of the proposed rate increase requested is granted, the total bill for a residential customer using 75 thousand cubic feet (Mcf) per year would increase from $99.52 per month to $110.68 per month or by 11.2%.

“Natural gas is the cleanest, most reliable energy choice to affordably meet Philadelphia’s energy demands,” said Craig White, President and CEO of PGW. “As Philadelphia’s exclusive natural gas provider for 184 years, we understand the importance of our infrastructure and the vital role it plays in supporting the City’s economic and social impact, as well as our community’s environmental goals. We continue to invest in upgrading our infrastructure so our customers can continue to rely on us for safe, reliable natural gas service.”

Currently PGW is projecting that it will replace all cast iron main inventory in approximately 40 years. When $70 million in rate relief is factored in, the associated increases in the increased Distribution Service Improvement Charge will result in all cast iron main inventory being replaced in 34.6 years – a reduction of 14% compared to current projections. 

Despite saving millions, and cutting spending and adding millions in new revenue, the basic costs of doing business continue to rise. Utilities, like PGW, have three ways to keep the system safe, reliable and efficient:

Most of PGW’s residential revenue comes from home heating. Improved building and weatherization techniques, more efficient appliances and warmer weather patterns mean less revenue. This rate request will improve PGW’s ability to sustain the company’s financial well-being, continue to enhance customer service and meet the energy demands of customers while maintaining a safe, reliable natural gas delivery system.

“We recognize that many of our customers fall below the federal poverty line and lack financial stability. Since our 2018 fiscal year, we allocated $126.9 million to support those customers in need,” said White. “PGW is planning to expand access to assistance programs to more customers and offer even more flexibility, as well as the insights they need to monitor their own consumption. Along with our low-income programs this approach helps keep natural gas affordable for all.”

PGW understands the financial hardships our customers face and the company is pursuing new revenue streams to help lessen that burden. In June 2019, Philadelphia City Council approved our Passyunk Plant P3 LNG expansion project with Passyunk Energy Center. Our project partner Passyunk Energy Center LLC will market and sell LNG, opening the door for a potential new revenue stream to PGW. This revenue will be reinvested right back into PGW– helping to keep rates low.

PGW has produced LNG for approximately 50 years. In that time, the use of LNG reserves at our Passyunk and Port Richmond facilities has saved PGW customers nearly $4 billion.

PGW is requesting that the new gas rates take effect on April 28, 2020. We encourage our customers to take advantage of the variety of financial assistance programs and grants available.

For more information, on PGW’s base rate filing, please visit puc.state.pa.us
 


Philadelphia Gas Works Cold Weather Survey Shows Decrease in Homes Entering Winter Season Without Gas Service

(Philadelphia, Pa. – Dec. 13, 2019) – On Friday, December 13, Philadelphia Gas Works (PGW) submitted its annual Cold Weather Survey to the Pennsylvania Public Utility Commission (PUC). The survey gathers data on the number of households that enter the Cold Weather Season without natural gas service. The Cold Weather Survey also allows PGW to reach out to those customers with the greatest level of need.

This year’s survey indicates that 7,318 of PGW’s approximately 475,000 residential customers do not have natural gas service, following the termination of their service during this calendar year. This year’s figure represents a 5.9 percent decrease over 2018.

“While the number of homes without gas service has decreased, PGW understands that there are many families who struggle to heat their homes or restore service,” said Denise Adamucci, Vice President of Regulatory Compliance and Customer Programs. “The Cold Weather Survey helps PGW provide those customers with information that can assist them in having service restored, and PGW engages in significant additional outreach to try to assist its customers who are struggling.”

Information provided through this survey supplements PGW’s outreach work with neighborhood organizations, first responders, churches, elected officials and community leaders. It enables PGW to better educate customers and support households attempting to secure assistance to resume and maintain natural gas service.

PGW urges low-income customers to see if they qualify for all available grants:

Customers who are not low-income may be eligible for affordable payment arrangements that allow the restoration of service. Those customers should contact PGW as soon as possible at 215-235-1777.

PGW urges its customers to visit pgworks.com or one of the company’s customer service centers for assistance. Philadelphians can also help to support those in need of heating assistance by donating to the Utility Emergency Services Fund (UESF). All donations are tax deductible. To donate, visit the Customer Care page of pgworks.com for Assistance Programs & Grants.

About PGW:

Founded in 1836, The Philadelphia Gas Works (PGW) is owned by the City of Philadelphia and is the largest municipally owned gas utility in the country. It manages a distribution system of approximately 6,000 miles of gas mains and service pipes supplying approximately 500,000 customers. PGW's operations are managed by a non-profit corporation, the Philadelphia Facilities Management Corporation (PFMC). More information about the company is available at pgworks.com.

SOCIAL MEDIA TAGS: PGW Twitter: @MyPGW ~ PGW Facebook: facebook.com/MyPGW ~ PGW YouTube: PhillyGasWorks ~ Nextdoor: nextdoor.com/MyPGW


LIHEAP is Now Open to Help Low-Income Customers Pay for Heating, Just as Philly Temperatures Drop

PGW estimates 135,000 Philadelphians are eligible for LIHEAP; PGW adding more ways to apply.

(Philadelphia, Pa. – November 1, 2019) – Starting today, low-income Philadelphia Gas Works’ (PGW) customers can text the word CASH to the number 75308 to see if they qualify for a free LIHEAP (Low Income Home Energy Assistance Program) grant of up to $1,000. LIHEAP is a federal grant that helps income-eligible families pay their heating bills or prevent shut off. Grants range from $200 to $1,000, are available to renters and homeowners, and do not have to be repaid. Grant amounts are based on household size and income.

PGW estimates 135,000 of its customers are eligible for LIHEAP. Last year, approximately 61,000 PGW customers received more than $21 million dollars in assistance. To apply, customers can:

“Philadelphia remains one of the poorest large cities in America. We take seriously our responsibility to help ensure our customers struggling to provide a warm home to their families know about LIHEAP, and make the application process as accessible as possible,” said Melanie McCottry, Vice President of Corporate Communications and External Affairs at PGW. “If natural gas is your primary home heating source, PGW encourages you to take advantage of this free money today. Grants are first-come, first-served, so we are urging people to apply now. Our texting service makes it easy: text CASH to 75308 to receive an application.”

This November, PGW’s West Philadelphia and Frankford Customer Service Centers have added Saturday hours of 8 a.m. to 4 p.m. for additional customer convenience. Also starting this month PGW is conducting outreach directly to neighborhood organizations, churches, elected officials and other community leaders to educate neighbors and support eligible households in applying for LIHEAP.

Applicants for LIHEAP assistance must meet the eligibility requirements, which means they must have a household income of less than 150 percent of the Federal Poverty Level. LIHEAP ends on April 10, 2020.    

LIHEAP grants for PGW customers are applied directly to the "Please Pay" amount of their bill. That means PGW’s Customer Responsibility Program (CRP) customers benefit from both their regular CRP discount and the additional LIHEAP grant when paying their bill. 

 

Customers that have received a 10-day shutoff notice or are without utility service can apply for both Crisis Assistance and LIHEAP together at one of PGW’s Customer Service Centers. Crisis Assistance is a federal grant that is awarded to income-eligible customers.

 

About PGW:

Founded in 1836, The Philadelphia Gas Works (PGW) is owned by the City of Philadelphia and is the largest municipally owned gas utility in the country. It manages a distribution system of approximately 6,000 miles of gas mains and service pipes supplying approximately 500,000 customers. PGW's operations are managed by a non-profit corporation, the Philadelphia Facilities Management Corporation (PFMC). More information about the company is available at www.pgworks.com


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