PGW Base Rate Case Settlement Approved
Posted on: Oct 09, 2025The rate request will address the energy burden of those vulnerable to poverty, further safety investments, and meet the City’s carbon reduction goals
(Philadelphia, Pa – October 9, 2025) – Today, the Pennsylvania Public Utility Commission (PUC) approved a settlement agreement that Philadelphia Gas Works (PGW) reached and advocated for with PUC prosecutorial staff, the Pennsylvania Consumer Advocate, the Pennsylvania Office of Small Business Advocate and other parties to PGW’s 2025 base rate case.
Although PGW’s settlement will increase base rates by approximately $62 million annually, the annual bill for a typical PGW heating customer has decreased by $259 or 18.5% over the past 10 years. Adjusted for inflation, those annual bills have been lowered by $662, or 36.7%. This settlement allows PGW to advance its ability to provide affordable energy and high-quality service and customer care, with the financial stability necessary to maintain a safe, reliable energy system.
Unprecedented Public Input
Unlike investor-owned utilities, PGW has no shareholders and there is not a rate of return included in PGW’s rates. PGW is proud of the hard work and cooperation involved in working together on this necessary increase and favorable settlement. With this year’s filing, PGW engaged in significant negotiations with third-party intervenors. The intervenors include a diverse number of consumer interests, community representatives, and environmental stakeholders, and incorporated a wide range of viewpoints and perspectives.
In concert with customer feedback gathered by the PUC’s public hearings and constructive discussions with intervening parties, this settlement aims to keep PGW customers at the forefront and supports the ongoing financial stability of the company and protection of the community.
“PGW’s base rate request is intended to protect the safety and well-being of our customers, their wallets, and Philadelphia’s quality of life. PGW does not make a profit as a city-owned utility. Every dollar collected is directly allocated to ensure the safe and reliable delivery of low-cost energy service to our customers – throughout every ZIP code in Philadelphia,” said Seth Shapiro, PGW’s President & CEO.
“The reality for customers today is that natural gas remains the most affordable energy option available on the market for Philadelphia’s families to heat their homes, do their laundry, and feed their families. We appreciate our customers’ trust in PGW to work responsibly on their behalf in our latest rate filing request and settlement. We care deeply about protecting our customer’s interests.”
Low Cost of Natural Gas Compared to Alternative Sources
PGW’s natural gas rates are made up of two main components: a delivery charge (or base rate) and a commodity charge (gas cost). The base rate reflects the cost of delivering natural gas to the customer’s residence, funding for low-income customer protection programs, distribution system maintenance and customer billing costs. The gas cost is what PGW pays for natural gas and is passed on to the customer without markup.
PGW recognizes there are customers who need assistance paying utility bills. We encourage eligible customers to take advantage of all available assistance programs including LIHEAP and PGW’s Hardship Fund and Customer Responsibility Program.
Information on payment assistance programs is available on pgworks.com
PGW also encourages customers to take advantage of its Energy Sense offerings to help reduce energy use and manage monthly bills.
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