(Philadelphia, PA – September 26, 2005) –The Philadelphia Gas Works (PGW) is asking the Pennsylvania Public Utility Commission (PUC) to approve an interim Gas Cost Rate (GCR) increase due to the impact of recent hurricanes in the Gulf Coast. The increase would go into effect on October 7.

If approved, the GCR would increase from $9.7056 to $12.5632 per thousand cubic feet (Mcf).

The new GCR would increase the typical PGW residential heating customer’s bill by about $335 per year, or about 19.4 percent. This increase is in addition to the 4.9 percent increase that went into affect on September 1, which was calculated before Hurricanes Katrina and Rita.

The GCR is set annually based on gas cost estimates and may be adjusted upward or downward on a quarterly basis to reflect actual gas costs. The request for the interim GCR increase was filed with the PUC on September 23.

With the increase in cost for natural gas this year, it is more important than ever to take conservation measures to reduce all forms of energy use as much as possible. Even though the weather is still warm, PGW urges customers to prepare for the winter and conserve by sealing up air leaks, especially around windows and doors with caulk or weather-stripping and set water heater temperatures to “normal”, about 120 degrees.

In addition, PGW recommends that customers apply for budget billing to help spread out the cost of their heating bills over a 12-month period.

Low-income customers should contact PGW at 215-235-1000 or visit PGW’s Web site, www.pgworks.com, for information on several available energy assistance programs.

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