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PGW Files Request with Regulators to Increase Distribution Base Rates

The $85.8 million request will address rising costs, improve safety, and accelerate the City’s carbon reduction goals

(Philadelphia, Pa – February 27, 2023) – Philadelphia Gas Works (PGW) announced today that it has filed a base rate case with the Pennsylvania Public Utility Commission (PUC). The filing requests permission to increase rates by $85.8 million per year. If the request is granted, the bill for the average residential customer using 71 thousand cubic feet (Mcf) of natural gas per year would increase by about $3 a week or $12 a month.

PGW’s natural gas rates are made up of two main components: a delivery charge (or base rate) and a commodity charge (gas cost). The base rate reflects the cost of delivering natural gas to the customer’s residence, distribution system maintenance and customer billing costs. The gas cost is what PGW pays for natural gas and is passed on to the customer without markup.

Juxtaposed with today’s base rate filing, PGW filed a Gas Cost Rate (GCR) adjustment last week (Feb. 24), which will dramatically decrease the amount PGW customers pay for natural gas by 15.9% or $238.92 annually. All customers will see those savings effective March 1, 2023.

The base rate change request filed today will address the recent rise in inflation for labor, materials, information technology, construction equipment, and capital costs.

The requested base rate increase will also reduce the time needed to replace PGW’s mature, cast iron infrastructure by 12.4% to 33.1 years. Increased investment in PGW’s 6,000-mile distribution system will improve system safety and further reduce methane emissions. As the energy provider that works for Philadelphia, and is owned by the City, the company is fully committed to supporting the City’s 2050 goal of carbon neutrality. Upgrades both reduce fugitive emissions and eliminate the cost of ongoing repairs that PGW customers would have to pay.

“PGW strives to deliver on our promise of safe, reliable, affordable, and sustainable energy,” said Seth Shapiro, PGW’s President & CEO. “We do not take lightly adding any dollars to our rate base; but we are committed to robust social programs to protect our most vulnerable customers and to doing everything possible to keep our systems operating safe for all Philadelphia residents. We constantly seek to find a balance between maintaining rates low enough to try to meet our affordability goals, while also sufficient to meet our safety, reliability and sustainability goals.”

Over the last two years, PGW has launched several initiatives to do more with less, carefully manage PGW’s expenses, and manage the costs of rate increases, including:

A facilities consolidation that will centralize PGW’s operations into three buildings and cut its emissions by half and the company’s expenses by $100 million over the next 25 years.
Launched new technologies to serve our customers more effectively and more efficiently with retail cash options and partnerships with Neighborhood Energy Centers.
Lowered the monthly bill amounts for low-income customers enrolled in PGW’s Customer Responsibility Program.

Launched the PGW Marketplace, where customers can receive significant discounts on smart thermostats that regulate energy usage and help lower monthly energy bills.

“Natural gas is the cleanest, most reliable, and cost-effective energy solution to meet the City’s energy needs, and it’s estimated that natural gas could be up to 50 percent more economical than other fuels for the next 25 years,” Shapiro said. “PGW recognizes our responsibility to help our customers better afford their natural gas bills and enjoy their natural gas service. We urge our customers to call us today to take advantage of programs and initiatives to reduce their energy burden and provide payment assistance.”

PGW Offices Will Close on MARTIN LUTHER KING JR. Day

PHILADELPHIA (January 13, 2023) – Philadelphia Gas Works (PGW) offices will be closed in observance of Martin Luther King, Jr. Day on Monday, January 16, 2023. PGW’s 24-hour Emergency Hotline will remain open for emergency calls. All odor calls or gas-related emergencies should be reported immediately by calling 215-235-1212.

PGW offices will resume regular business hours on Tuesday, January 17, 2023.

Philadelphia Gas Works encourages customers and residents to give back to their local communities and observe Martin Luther King Jr. Day as a “day on” instead of a “day off”. Participating in local volunteer events is a meaningful way to celebrate and honor the legacy of Dr. Martin Luther King, Jr. To locate a service opportunity in Philadelphia, please visit, mlkdayofservice.org/.

Customers who need to access account information or pay their bill online can log into their PGW My Account, pay by phone at 215-235-1000, or make cash payments in person at hundreds of local retailers, including Walmart, CVS, Dollar General, Family Dollar, 7-Eleven, and Rite Aid. For information, visit pgworks.com/customer-care/your-home/ways-to-pay.

PGW Statement: 3500 Bl of Miller Street, As of Jan. 9, 2023

On Thursday, January 5, PGW completed all surveying and testing of its natural gas infrastructure in the Port Richmond neighborhood near the site of the January 1, 2023 explosion. All PGW natural gas mains and service pipes were found in good operating condition and no leaks were found.

On Jan. 1: PGW conducted state-of-the-art leak detection surveys on all underground natural gas mains and service pipe on Miller, Gaul, Venango, Atlantic, and Belgrade Streets. Mains and service pipes were found to be in good operating condition and PGW identified no natural gas leaks on any surveyed PGW natural gas infrastructure. Each leak survey and safety check were conducted in coordination with the onsite PUC Safety Division.
On Jan. 2: PGW began testing the PGW pipeline infrastructure that runs from the main in the roadway to the meter inside each impacted property. This test investigates the integrity of the pipe. The first property tested was 3546 Miller.
- The service pipe at 3546 Miller was found to be in good operating condition, passed the pressure test, and no leaks were found.
On Jan. 3:
- The service pipe at 3548 Miller was tested and found to be in good operating condition, passed the pressure test, and no leaks were found.
- As additional due diligence, PGW also conducted a pressure test at 3552 Miller and 3554 Miller where the service pipes was also found to be in good operating condition, passed the pressure test, and no leaks were found.
On Jan. 5:
- The service pipe at 3550 Miller was tested and found to be in good operating condition, passed the pressure test, and no leaks were found.

It is important to note that, PGW’s control is limited to the infrastructure that ends at the first connection downstream of the gas meter (or the outlet of the natural gas meter). Everything beyond that outlet belongs to the property owner, so PGW is not able to determine the condition or integrity of inside piping or appliances that are beyond the meter.

As stated previously, the cause of the incident has not been identified by the Fire Marshall and remains under investigation.

PGW regularly monitors, inspects, and maintains our system and administers leak response 24/7. We survey our entire 3,000-mile system every year, as well. We investigate every odor call we receive and conduct maintenance, whenever needed.

If, at any time, someone believes they smell a gas odor – they should leave the area and immediately call PGW at 215-235-1212 or call 911.

All utilities including PGW add a rotten egg smell to natural gas. If you smell a rotten egg-like smell or odor, please call 215-235-1212 or call 911. These phone lines are available 24 hours a day, 7 days a week.

IMPORTANT CONTACTS:

Please refer all PGW media inquiries to PGW Corporate Communications Team.

If you have a damage claim it is vitally important that you call your insurance providers as soon as possible, for homeowners, renters, and auto (if applicable).