NO PGW Rate Hikes! Affordable and Sustainable Energy for ALL!

There is a cost of living crisis in Philadelphia, and PGW wants to add fuel to that fire. Earlier this year, the city-owned gas company submitted a proposal for a rate increase of approximately 16%, a $105 million annual revenue boost for the utility company. PGW, the largest municipally owned utility company in the United States, is regulated by the Pennsylvania Public Utility Commission (PAPUC) and must submit proposals to the commission for rate increases before they are implemented. The PUC’s job is to “ensure the lowest reasonable rate for consumers while maintaining the financial stability of utilities,” but nothing in this proposal has indicated that PGW is doing everything in its power to keep their prices affordable for customers. This has triggered an investigation by the PUC into PGW’s proposal with a final decision due later this year.

Part of the investigation process included a series of public input hearings last month where customers testified in universal opposition to the proposal. At these hearings, a number of workers and residents across sectors and neighborhoods spoke to their very real concerns. Many brought attention to the fact that PGW is facing a decline in revenue because homeowners who can afford it are opting to heat their properties with electric pumps rather than gas furnaces. One PGW customer and Philadelphia resident described this as a “vicious cycle.”

“Lower income households are stuck with old, worn out pipes and skyrocketing bills, while higher income households enjoy lower energy bills and a cleaner home environment,” he testified. He and others urged PGW to find innovative solutions to their revenue problem that don’t include shifting the burden onto customers.

“What other businesses allow you to guarantee your revenue rather than modify your business plan to meet the demands of the market?” another resident asked, shining a light on the fact that PGW has a monopoly on gas service in Philadelphia.

A representative of the non-profit advocacy group PennEnvironment attempted in her testimony to hold the gas company accountable to the environmental commitments the City previously laid out. “Philadelphia officials have made a commitment to be carbon neutral by 2050, and this is in line with what scientists agree we must do in order to stop the worst impacts of climate change,” she said. “I find it absurd that PGW is proposing to spend 6 to 8 billion dollars on new fossil fuel infrastructure in the form of new pipes with the expectation that Philadelphia will be paying for these pipes for the next 40 to 60 years,” she testified.

A proposal to raise energy prices demonstrates that PGW is out of touch with its customers. A new report found that 60% of Americans – a majority – cannot afford the “minimal quality of life.” In Philly, shut-off notices are becoming more regular, and customers are receiving . PGW should be focused on expanding its existing assistance programs like the Hardship Grant – not burdening Philadelphians with higher utility bills.