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Philadelphia Gas Works Zeroes In On Greenhouse Gas Emissions Exceeding Forecasted Reduction Targets

Posted on: Jun 03, 2025

As a municipal utility, an environmental steward and an energy access advocate, PGW’s environmental efforts reach new milestones.

PHILADELPHIA (June 3, 2025) - Philadelphia Gas Works has released its 2024-2025 Greenhouse Gas Emissions Reduction Report and is pleased to have met or exceeded several targets of the company’s greenhouse gas (GHG) emissions reduction plans removing 10,000 metric tons of CO2e from the City’s atmosphere. These reductions are equivalent to removing more than 2,000 cars from the roadway for one year.  

Since 2011 PGW has significantly expanded its clean energy profile while lowering emissions as part of the company’s clean energy future goals including its commitment to helping the City of Philadelphia meet its carbon reduction goals.

In PGW’s 2024 fiscal year:

• PGW replaced 32.6 miles of cast iron main and unprotected services, reducing emissions from its distribution network by approximately 6,642 metric tons of CO2e.

• The company’s EnergySense program saved PGW customers about $680,000 in energy efficiency incentives, while the rebated equipment will mean around 22,000 fewer MMBtu of natural gas burned annually and 446,000 MMBtu over the expected lifetime of the equipment. These savings equate to 1,200 metric tons of CO2e annually, or 25,000 metric tons of CO2e over the equipment’s lifetime.

The effort to reduce emissions for the nation’s largest municipally owned natural gas utility comes down to more than just tackling a single source point. To make a sustainable impact PGW reduces emissions primarily through three different emissions categories- Scope 1, 2, and 3 emissions.

What are Scopes 1, 2, and 3?

• Scope 1: These are created directly and exclusively by PGW’s operations – for example, while running its facilities, driving fleet vehicles, and maintaining PGW’s infrastructure.
• Scope 2: Emissions that fall into the Scope 2 category – are those that PGW makes indirectly. These emissions come from purchased electricity, steam, heating, and cooling used for PGW’s own use across facilities.
• Scope 3: In this category, the emissions generated are not associated with the company itself, but emissions that PGW is indirectly responsible for throughout the consumer value chain. For example, purchased goods and services, leased assets, employee commuting, and customer use of PGW’s product.

The cost of lowering emissions

Last year marked the official start of the replacement of 66 miles of cast iron in historically disadvantaged Philadelphia neighborhoods as part of the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration’s (PHMSA) first ever grant funding from the Natural Gas Distribution Safety and Modernization Grant (NGDISM) Program. This valuable grant totaling $125 million will also create 120 new skilled jobs and reduce 412 metric tons of methane emissions.

Tremendous work is being done in our city streets – block by block -PGW’s EnergySense portfolio of programs offers customers financial incentives for energy efficiency upgrades. Each year PGW invests around $9 million in our low-income Home Comfort weatherization program and rebates for residential and commercial equipment and grants for new residential construction.

If customers are looking to make their homes more affordable and more comfortable, they are encouraged to visit pgwenergysense.com/.

What’s next?

In February, PGW announced its first kind collaboration with the School District of Philadelphia to source a firm to conduct a geothermal site survey and feasibility study. The exploration of geothermal technology is part of PGW’s diversification efforts, aiming to deliver increased value to customers while expanding on its clean energy portfolio and lowering emissions.

For more information on PGW’s sustainability initiatives and to read PGW’s complete Methane Reduction Program, visit pgworks.com/community-impact/sustainability.

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