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PHILADELPHIA GAS WORKS ANNOUNCES NATURAL GAS COST DECREASE THIS QUARTER

(Philadelphia, Pa. – September 1, 2017) – Philadelphia Gas Works (PGW) today announced that this quarter’s gas cost rate will decrease for residential, commercial, industrial and municipal customers. For the next three months, the rate for typical residential customers, for instance, will be lowered to $1.217 per hundred cubic feet (Ccf) from $1.271 per Ccf. The new rate reflects what PGW pays for the gas.

On an annualized basis, the average residential customer using 760 Ccf of natural gas, will now pay $41.30 less per year, however this rate is readjusted quarterly.

PGW reviews its gas cost rate quarterly and determines, based on market conditions, whether it should change. The new rate, beginning September 1, 2017, will stay in effect through November, 30, 2017.

PGW’s residential natural gas rates are made up of two main components: a supply charge and delivery charge:

The supply charge is the part of the bill that reflects the cost and amount of gas used by the customer. This charge is what PGW pays for the gas and is passed on to the customer without markup.

The delivery charge reflects the cost of delivering natural gas to the customer’s residence, distribution system maintenance and customer billing costs, and the amount of gas used by the customer as well as weather adjustments.  

For ways to save, visit pgworks.com to learn great ways to conserve energy and save money on heating bills.


PHILADELPHIA GAS WORKS ANNOUNCES NATURAL GAS COST DECREASE THIS QUARTER

(Philadelphia, Pa. – June 1, 2017) – Philadelphia Gas Works (PGW) today announced that this quarter’s gas cost rate will decrease for residential, commercial, industrial and municipal customers. For the next three months, the rate for typical residential customers, for instance, will be lowered to $1.271 per hundred cubic feet (Ccf) from $1.309 per Ccf. The new rate reflects what PGW pays for the gas.

On an annualized basis, the average residential customer using 740 Ccf of natural gas, will now pay $28.40 less per year, however this rate is readjusted quarterly.

PGW reviews its gas cost rate quarterly and determines, based on market conditions, whether it should change. The new rate, beginning June 1, 2017, will stay in effect through August, 31, 2017.

PGW’s residential natural gas rates are made up of two main components: a supply charge and delivery charge:

  • The supply charge is the part of the bill that reflects the cost and amount of gas used by the customer. This charge is what PGW pays for the gas and is passed on to the customer without markup.
  • The delivery charge reflects the cost of delivering natural gas to the customer’s residence, distribution system maintenance and customer billing costs, and the amount of gas used by the customer as well as weather adjustments. 

For ways to save, visit pgworks.com to learn great ways to conserve energy and save money on heating bills.


PGW FILES REQUEST WITH REGULATORS TO INCREASE DISTRIBUTION BASE RATES

(Philadelphia, Pa. – February 27, 2017) – Philadelphia Gas Works (PGW) today announced that it has filed a base rate case with the Pennsylvania Public Utility Commission (PUC). The filing, PGW’s first in eight years, requests permission to increase rates by $70 million per year. If the request is granted, the bill for an average residential customer using 76 thousand cubic feet (Mcf) of natural gas per year would increase by about $2.44 a week. At this new rate, residential customers would pay $2.55 less per week than they did for the same amount of natural gas when rates were last adjusted, in 2010.

“We recognize the pressures on hardworking families and businesses in Philadelphia. That’s why we’ve worked so hard to reduce our operating costs and identify new sources of revenue since our last rate increase,” said Craig White, president and CEO of PGW. “However, changes in the local economy and rising regulatory, healthcare and equipment costs mean that this request is necessary so PGW can continue to safely provide gas service to our neighbors.”

Since 2010, PGW has put changes in place that have avoided over $75 million in healthcare costs, cut borrowing needs by over $185 million, and eliminated over $340 million of long-term debt. In addition, the way PGW manages its operations and finances has led to improved bond ratings, the net result of which is that we save $72 million in debt service payments, on behalf of our customers. Despite these and other cost control measures at PGW, service-line work related to the company’s infrastructure upgrade project, dynamic weather patterns, a flat customer base have meant a decline in sales volume and a net increase in operating costs.

“Since the last base rate increase, winters have become warmer and appliances and homes are more energy efficient,” said White. “That combination has caused our sales volume to drop by over 11% since 2009. To absorb that change, and others, while continuing to ensure that Philadelphia benefits from safe, reliable gas service we always look for cost savings and new revenue sources first. While that has delayed our base rate case, we now have no option but to request an increase.”

In addition to PGW’s efforts to increase top-line revenue – including its successful LNG sales pilot program – the company is also asking the PUC to approve the implementation of a new Technology and Economic Development Rider. Designed to boost economic development, enhance revenue and support local job creation, the rider will expand the use of natural gas by giving customers access to more energy options, including combined heat and power projects, natural gas vehicles, and fuel cells.

For small and medium sized commercial properties, PGW is asking the PUC to approve a pilot Micro- Combined Heat and Power (Micro-CHP) Incentive Program that will provide new incentives to increase the ability of qualifying customers to expand natural gas use.

Information on PGW’s Base Rate request can be found at www.pgworks.com including options for challenging the company’s request to change its rates.


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That “rotten egg” smell is the smell of natural gas. If you think you smell gas leave the area immediately, and then call PGW at 215-235-1212 from a safe location.

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Also if you smell gas:

  • Do not use electrical devices including cell phones which may cause a spark and ignite the gas.
  • Do not use an open flame, matches or lighters.
  • Do not try to locate the source of the gas leak.
  • Do not try to shut off any natural gas valves or gas appliances.
  • Do not start vehicles.
  • Do not re-enter the building or return to the area until a PGW employee or a qualified utility representative says it is safe to do so.
  • Do not put out the flames if natural gas ignites.