(November 2, 2006 – Philadelphia, Pa.) The Philadelphia Gas Works and the Utility Workers Union of America (UWUA), Local 686, have announced an extension to their current collective bargaining agreement.

The two-year extension goes into effect on May 15, 2008 through May 15, 2010. The agreement, which was unanimously recommended by the Union Executive Board and Representatives, and was overwhelmingly ratified by the union membership on October 26, continues many of the same provisions as the current contract. Provisions include a 2.5 percent wage increase in 2008 and 3.5 percent increase in 2009.

“This mid-term contract agreement is a tangible demonstration of how labor management relations have progressed under the current PGW and Local 686 administration”, said Thomas Knudsen, PGW President and Chief Executive Officer.

“We addressed PGW’s concerns regarding efficiency while attaining percentage wage increases at the industry standard and maintaining quality health care and job security protections,” said UWUA President Keith Holmes. “The contract extension demonstrates that we have reached a point where labor and management are working as partners rather than adversaries.”

“The stabilizing effect of true labor harmony cannot be stressed enough”, said Craig White, PGW’s Chief Operating Officer and Executive Vice President. “This spirit of cooperation has already resulted in significant company improvements at PGW, especially in the area of collections and our outlook in the financial markets. Maintaining success requires that labor and management continue to work closely together towards our common mission – being a financially, viable enterprise providing safe and reliable gas service to Philadelphia,” said White.

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.