In The News

PHILADELPHIA GAS WORKS TO RESUME INSTALLATION OF NEW NATURAL GAS MAINS AND SERVICE LINES

PHILADELPHIA (May 15, 2020) – Beginning Monday, May 18, Philadelphia Gas Works (PGW) will resume installation of new, modern natural gas main and service lines as part of PGW’s ongoing infrastructure improvement program to deliver safe, reliable service to City residents and businesses.

PGW had limited some construction in accordance with Gov. Tom Wolf’s initial COVID-19 stay at home orders, which have since been amended to allow construction. As work resumes on dozens of projects in City neighborhoods, PGW crews will strictly follow all state and federal safety guidelines to reduce exposure to and the spread of COVID-19. This includes enhanced personal protective equipment and social distancing when PGW employees enter customers’ homes.

                                                                                                  
PGW is notifying residents in advance of all projects about the scope and duration of construction in their respective neighborhoods. Residents are invited to visit pgworks.com/worksites to view work locations on PGW’s Pipeline Improvement Map. The map gives customers the options to search by address and zip code to see precisely where work is being done, the current status of the job, and when construction is expected to be completed. 

Crews will work Mondays through Fridays, between the hours of 7 a.m. and 3:30 p.m., unless otherwise noted. Vehicular traffic and access to parking may be redirected in the vicinity of the worksites, if necessary. When main and service line installations are complete, PGW will immediately backfill open trenches and restore paving impacted by the work.

The following page lists current and scheduled PGW construction projects. For information about PGW’s main replacement program, construction schedules and locations, visit https://worksites.pgworks.com/home.

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PGW EARNS POSITIVE OUTLOOK FROM FITCH RATINGS

Fitch affirms PGW’s bond rating at BBB+, while Moody’s says PGW’s outlook is “stable”

Philadelphia Gas Works’ (PGW) bond rating outlook by Fitch Ratings has improved to “positive” from “stable.” Fitch also affirmed PGW’s bond rating at BBB+.

Fitch noted that PGW’s “strong operating risk profile assessment is based on PGW's well-identified cost drivers (including labor costs and contracted purchases for natural gas supply), an ability to manage costs with shifts in demand, and manageable capital pressures.” The analysis also stated that “Fitch assesses PGW's financial profile to also be strong reflecting historically stable financial results that have improved over the past two years, leading to a lower leverage ratio of 5.1x in 2019.”

In addition, PGW’s bond rating from Moody’s Investors Services was affirmed at A3 with a stable outlook. In its ratings rationale, Moody’s noted that PGW has “sound management that has enhanced PGW's operating efficiencies and resulted in recurring cost savings that have led to a more stable and more predictable financial position that is expected to be maintained.”

“PGW’s positive bond outlook from Fitch and Moody’s rating affirmation reflects our longstanding efforts to manage costs and provide safe, reliable, and affordable gas service for residents and businesses in the City,” said Craig White, President and CEO of PGW. “Our focus is to continue to operate safely and efficiently while investing in new infrastructure that ensures service reliability for years to come.”  

In recent years, PGW has implemented a number of initiatives that reduced costs, increased efficiency and explored new income streams. Among these initiatives are PGW’s Long Term Infrastructure Improvement Program (LTIIP) for service reliability, and a proposed public-private partnership with Passyunk Energy Center LLC to market and sell liquefied natural gas, which has the potential to be a new revenue source. The project also proposes installing solar panels to help lower energy costs and reduce the net emissions of the new liquefier.

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PGW to Mark Earth Day 2020 as A New EPA Methane Challenge Partner

To start, Company will track and share methane emissions reductions from pipeline replacement by 2022   

PHILADELPHIA (April 21, 2020) – Philadelphia Gas Works (PGW) is pleased to announce its acceptance into the U.S. Environmental Protection Agency’s (EPA) Methane Challenge Program on the 50th anniversary of Earth Day. By joining the Challenge, PGW is voluntarily committing to lower its methane emissions by replacing at least two percent of its cast iron and vintage steel mains with newer, modern pipes, along with new service lines, every year by 2022.  

As a partner, PGW joins more than 60 companies from all segments of the industry — production, gathering and boosting, transmission and storage, and distribution — to set targets and track and share their progress to reduce emissions and improve air quality. PGW will also work with the EPA and peer companies to learn and share knowledge about the latest technologies, industry trends and new industry initiatives.

“PGW intends to meet or surpass the goals set by the Methane Challenge and strengthen our commitment to environmental responsibility,” said Janelle Johnson-Grummert, PGW’s director of sustainability. “Participation in this program helps PGW continue to play a role in creating a healthier environment and improving essential services in the City.”

The Methane Challenge is the latest in PGW’s conservation and efficiency efforts. PGW’s main and service replacement program has reduced 78,000 metric tons of CO2e since 2005. Last year, PGW invested $87 million to modernize and replace 34 miles of its infrastructure. With each new mile of main installed, emissions were reduced to zero. Along with reducing methane emissions, pipe upgrades ensure the long-term safety and reliability of the overall natural gas distribution system in Philadelphia.

Sustainability is core to PGW’s business operations and its future. Just over the last 10 years, PGW has invested $60 million to weatherize 21,880 low-income customer homes and 22 multi-family buildings (with a majority of low-income tenants) in Philadelphia through Home Comfort, a free, low income usage reduction program.

PGW has also awarded more than 6,200 rebates and grants to residential, commercial and industrial customers at a cost of $10.7 million through its EnergySense Rebate Program. Collectively, the estimated resources saved over the lifetime of PGW’s conservation measures in Philadelphia homes and businesses is equivalent to 846,000 metric tons of CO2e, or planting over 13.9 million trees.  To learn more about PGW’s conservation efforts, visit the Energy for All of Us page at pgworks.com.

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