The rate request will address the energy burden of those vulnerable to poverty, further safety investments, and meet the City’s carbon reduction goals
(Philadelphia, Pa – February 27, 2025) – Philadelphia Gas Works (PGW) announced today that it has filed a base rate case with the Pennsylvania Public Utility Commission (PUC). PGW has not filed for a rate adjustment in two years. The current filing requests permission to increase rates by $105 million annually to build upon the company’s effectiveness in delivering safe, reliable, sustainable natural gas service; and introduces new, innovative programs to encourage energy efficiency and to support those vulnerable to poverty in a meaningful way.
In PGW's last rate case in 2023, the PUC approved $468 million in revenue. For 2026, PGW is asking for $523 million in revenue; that $55 million difference compared to 2023 is to cover the rising costs of inflation, wage and health insurance increases and capital improvements over the last two years – which results in a $105 million base rate increase for customers.
While the cost of delivering service to 500,000 customers has gone up in the near term; the low price of natural gas and PGW’s targeted energy conservation efforts have ushered in significant cost savings for PGW customers over the last ten years.
PGW is the largest municipally owned gas utility in the country serving the highest proportion of Pennsylvania customers whose incomes are below the federal poverty threshold, this current rate proposal seeks to continue supporting the conservation actions of its half a million customers and offering newer pathways to billing stability, enhanced services, and potentially fewer rate increases moving forward. Highlights of the rate filing proposal include:
Unlike investor-owned utilities, PGW does not make a profit. The company has no shareholders and there is not a rate of return included in PGW’s rates. In preparation for its filing, the company conducted an affordability analysis to assess the extent to which energy bills may pose a challenge for some customers. Some of the conclusions drawn from the analysis by PGW are:
“PGW’s base rate request is intended to protect the safety and well-being of our customers, their wallets, and Philadelphia’s quality of life. PGW does not make a profit as a city-owned utility. Every dollar collected is directly allocated to ensure the safe and reliable delivery of low-cost energy service to our customers – throughout every ZIP code in Philadelphia,” said Seth Shapiro, PGW’s President & CEO.
“The reality for customers today is that natural gas remains the most affordable energy option available on the market for Philadelphia’s residential families to heat their homes, do their laundry, and feed their families. We appreciate our customers’ trust in PGW to work responsibly on their behalf in our latest rate filing request. We care deeply about protecting our customer’s interests.”
If the company’s entire request is approved, the bill for a residential customer using 61 thousand cubic feet (Mcf) of natural gas per year would increase from $92.60 to $104.61 per month, or by 13%.
The trends of PGW’s bill to income (BTI) have steadily decreased over time, with proposed rates still showing lower BTI ratios for both low-income and non-low-income customers (shown below).
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.
PGW is ranked amongst the best in the industry in helping its customers lower the costs of their energy bills, according to JD Power *. And natural gas remains the most affordable way to heat a home compared to other sources like electric or home heating oil.
In recent years, PGW has launched several initiatives to do more with less, carefully control PGW’s expenses, and manage the costs of rate increases, including:
For questions, individuals and entities can contact the PUC at 1-800-692-7380 and leave their name and address to be notified of any public input hearings that may be scheduled related to this case.
*Source: 2024 Gas Utility Residential Customer Satisfaction Study
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A Low-Income Home Energy Assistance Program (LIHEAP) grant could cover a PGW customer’s heating costs for an entire winter
PHILADELPHIA (February 19, 2025) – Philadelphia Gas Works (PGW) is reminding families, students, Philadelphia renters and homeowners that there is still time to apply for the Low-Income Home Energy Assistance Program- LIHEAP to receive up to $1,000 in free money for their PGW natural gas bills. If a customer’s service has been terminated, or is in danger of termination, they could receive up to an additional $1,000 via LIHEAP’s Crisis program.
LIHEAP grants do not have to be repaid. The LIHEAP application period ends when funds run out or on Friday, April 4, 2025. Since the grant period opened in November, PGW has successfully processed more than 25,000 LIHEAP applications with more than $6 Million awarded to its customers to date.
Here are four easy ways to apply for LIHEAP.
Applicants must have a household income at or below 150 percent of the Federal Poverty Level to meet LIHEAP eligibility requirements. Eligibility guidelines are listed below and available here.
“All of our customers deserve access to affordable, safe, and reliable natural gas service without compromising their basic needs. Many Philadelphians are eligible for this money, that is free – don’t leave money on the table this winter,” said Denise Adamucci, Senior Vice President, Customer and Regulatory Affairs at PGW. “We are committed to easing the financial energy burden on hardworking Philadelphians. Please share this valuable information with family, friends, and neighbors who may benefit from the LIHEAP grant as we experience the cold of winter,” added Adamucci.
Customers enrolled in PGW’s Customer Responsibility Program (CRP) can also apply for LIHEAP for even more assistance with heating bills.
Prefer to apply in person or learn more about your eligibility for LIHEAP? Customers can visit any Neighborhood Energy Center across Philadelphia for help with applying for LIHEAP or learning about other heating assistance programs.
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Expert panelists from across the Commonwealth and Tri-state region discussed the clean energy future .
(PHILADELPHIA- January 17, 2025) Philadelphia Gas Works (PGW) hosted the second annual Energy Innovation Symposium at Temple University’s Howard Gittis Student Center on Wednesday, January 15. Leading energy experts discussed what is needed to achieve net zero emissions by 2050, how to equitably share the costs, and what success currently looks like.
“As the largest municipally owned gas utility in the country, Philadelphia Gas Works provides safe, reliable, affordable, and sustainable energy. As the City’s energy experts, we look to convene other energy experts and facilitators each year to discuss the state and future of the energy sector,” said Seth Shapiro, PGW President and Chief Executive Officer. “We believe strongly that new energy solutions require collaboration and partnerships, and our second annual Energy Symposium is vital as players in the energy space look at innovative solutions for the challenges the City of Philadelphia, region, state, and country are facing.”
The panelists on the three symposium panels discussed the impact of state and federal policies, opportunities, partnerships and collaboration in new energy solutions, finding equitable ways to share the cost burden, the need for local, state, and federal funding support, the importance of diverse new energy approaches, and emerging successes with new energy options.
Panel 1: The Roadmap to Net Zero: Opportunities and Realities
Achieving net zero emissions goals by 2050 will require transformational initiatives, monumental expenditures, and large-scale deployment of new technologies, some of which may not yet be commercially available.
The panel, comprised of Stephen DeFrank, Chairman, Pennsylvania Public Utility Commission; Aftab Khan, Executive Vice President, Operations and Planning and Security, PJM; and Sam Robinson, Deputy Chief of Staff, Office of Pennsylvania Governor Josh Shapiro, shared their perspective on the current state of infrastructure in the region. The conversation focused on the reliability of the electric grid, the impact of clean energy projects on the interconnection queue to the grid, and the current concerns from Governor Shapiro’s administration on the grid capacity auction prices that influence rising electricity costs.
Panel 2: Sharing Societal Costs: Who Bears the Burden?
All potential clean energy transition pathways will require trillions of dollars in new investments over the next few generations, from upgrading home heaters to installing new interstate transmission lines. In addition to understanding total costs, we must also collectively and carefully evaluate the best structures for funding these costs. The historical utility ratepayer-funded model may not suffice given the scale and complexity involved.
This panel, comprised of H Gil Peach, President, H. Gil Peach & Associates; Cara Goldenberg, Principal, Rocky Mountain Institute; Derek S. Green, Of Counsel, Obermayer, Rebmann Maxwell & Hippel LLP; and Jamie McClintock, Counsel to Commissioner Kathryn Zerfuss of the Pennsylvania Public Utility Commission, discussed the need for new utility ratepayer models, and the intricacy of balancing utility investment decisions, customer affordability, and sustainability during the energy transition.
Panel 3: What Does Success Look Like in 2025?
While current complexities and obstacles may seem insurmountable, success stories are emerging today, providing hope for solutions that may develop over time. This panel highlighted recent successes, specifically focusing on opportunities with the potential for significant societal emission reductions, including Utility Geothermal Networks, Renewable Natural Gas, Hybrid Electrification, and Carbon Capture.
The final panel was comprised of Tim Ashmore, Director of Geothermal Business Development, CDM Smith; Amy Cradic, Senior Vice President and COO of Non-Utility Business Strategy and External Affairs, New Jersey Resources; Frank King, Director of RNG Business Development, UGI Energy Services, LLC; Aaron Tasin, Vice President Business Development, Sales and Engineering, Northeast-Western Energy Systems USA LLC discussed their current projects. They outlined the importance of testing diverse new energy approaches like electrification, geothermal, and carbon capture, renewable natural gas and hybrid heating systems and investigating ways to leverage existing gas infrastructure to achieve decarbonization.
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