(Philadelphia, Pa. – November 30, 2006) – As of tomorrow, December 1, the Philadelphia Gas Works (PGW) is reducing gas costs for its customers. The impact on typical natural gas residential heating customer bills will be a reduction of 3.5 percent. This reduction represents an annual savings of $62.24 for the typical home heating customer.

The rate reduction comes as the result of lower natural gas costs that are now being passed along to PGW customers.

This is PGW’s second quarterly Gas Cost Rate (GCR) reduction since June when customer bills were reduced by 4.5 percent. The GCR is set annually in September and adjusted quarterly to reflect actual gas costs.

“While we welcome the recent trend toward lower energy cost, we are continuing to encourage customers to reduced their cost even more by taking measures now to conserve and weatherize their homes to prepare for winter,” said Doug Oliver, PGW Director of Corporate Communications. “If we have colder than normal weather this winter, these savings could disappear quickly.”

In order to help customers prepare, conserve and save, PGW is joining with the City of Philadelphia to sponsor 100 Neighborhood Weatherization Workshops at locations throughout the city. The times and dates are posted on PGW’s Web site, www.pgworks.com. Residents also may receive information on the workshops by calling PGW at 215-684-6100.

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