(Philadelphia, PA – March 1, 2005) – The Philadelphia Gas Works (PGW) today filed with the Pennsylvania Public Utility Commission (PUC) an overall rate decrease of $110.5 million, effective September 1, 2005, as part of its annual Gas Cost Rate (GCR) filing.
If approved, this request would reduce the monthly bill of a typical residential heating customer using 100 thousand cubic feet (Mcf) of natural gas a year by $16 a month, from $143 to $127 per month, or approximately 11.2 percent.

Other customer classifications would be affected as follows: the monthly bill of a typical commercial heating customer using 460 Mcf a year would decrease from $623 to $549, or approximately 11.8 percent; the monthly bill of a typical industrial heating customer using 1,325 Mcf a year would decrease from $1,792 to $1,580, or approximately 11.9 percent; the monthly bill of a typical municipal service heating customer using 1,923 Mcf a year would decrease from $2,362 to $2,053, or approximately 13.1 percent; and the monthly bill for a typical Philadelphia Housing Authority (PHA) heating customer using 576 Mcf a year would decrease from $775 to $683, or approximately 11.9%.

The proposed reductions are result of a projected rate decrease of $1.9244 per Mcf based upon a comparison between the GCR in effect on December 1 ($9.8857 per Mcf) and the projected rate in PGW’s annual rate filing ($7.9613 Mcf).

This request is being filed on the same date as PGW’s March 1st quarterly Gas Cost Rate (GCR) filing, which will reduce customer bills immediately by 10.4 percent. The quarterly GCR adjustment provides a means to pass through to customers any increases or decreases in the cost of the natural gas that PGW purchases from gas suppliers. The rate is recalculated quarterly to reflect actual costs, and it may be changed if the recalculated rate differs from the approved annual rate by more than 2 percent.

To find out more about the filing, customers may contact PGW at 215-235-1000 or examine the material that was filed with the PUC at PGW’s main office, 800 W. Montgomery Avenue, Philadelphia, PA, Monday through Friday, 9 a.m. to 5 p.m.
Customers may challenge PGW’s request to change rates by filing a formal complaint or by sending the PUC a letter explaining why they object to the rate change request to the Pennsylvania Public Utility Commission, P.O. Box 3265, Harrisburg, PA 17105. Complaint forms also are available on the PUC Web site: http://www.puc.state.pa.us/general/onlineforms/pdf/official_complaint_form_final.pdf

Founded in 1836, PGW is the nation's largest municipally owned natural gas utility, serving a half million residential, commercial, and industrial customers, and Philadelphia's choice for quality energy solutions.