(Philadelphia, Pa. – October 18, 2007) – The Philadelphia Gas Works (PGW) this week filed a motion in Commonwealth Court to appeal the Pennsylvania Public Utility Commission (PUC) decision to reject PGW's request for a $100 million base-rate increase. The PUC approved an increase of only $25 million.

"Essentially, the PUC's decision requires PGW to continue borrowing to pay for every dollar that is needed to operate the company," said Thomas E. Knudsen, PGW President and Chief Executive Officer. "In effect," he said, "PGW has been using one high-interest credit card to pay off another."

"We need to structure our rates to pay for operating costs now," Knudsen said, "because, in the end, more borrowing will only cost our customers more."

The base rate increase approved by the PUC's decision on September 28 increases the average residential customer bills by 3.3 percent, or $4.75 a month. PGW's proposal would have increased bills by 9.3 percent, about $13 a month.

Base rate revenues pay the cost of operating PGW but are not used to pay for natural gas supply. PGW's last request for a base-rate increase to cover operating costs was in 2002.

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.