(Philadelphia, PA – June 1, 2006) – The Philadelphia Gas Works (PGW) today is reducing customer bills by 4.5 percent.

This rate reduction is the result of lower natural gas costs that are now being passed along to PGW customers.

As of today, PGW reduced its quarterly Gas Cost Rate (GCR) from $12.5632 per thousand cubic feet (Mcf) to $11.2558 per Mcf. The typical PGW residential heating customer’s bill will be reduced by 4.5 percent, or $82.67 a year.

PGW has not increased or reduced its GCR since October 7 when it was necessary to seek an interim GCR increase due to the impact that Hurricanes Katrina and Rita had on natural gas prices.

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