Groups gathered at Philadelphia City Hall to share updates on case, rally for cleaner, safer energy future; PGW is largest municipally owned gas utility in the country
PennEnvironment, PennPIRG, POWER Interfaith, Sierra Club Pennsylvania, Physicians for Social Responsibility Pennsylvania, Clean Air Council, Vote Solar Earthjustice, and Here4CJ rally alongside State Representatives Chris Rabb and Ben Waxman and the office of Nicolas O’Rourke to share updates on PGW’s ongoing rate case and discuss next steps for a cleaner, safer energy future for Philadelphians.Photo by TPIN | TPIN
Philadelphia, PA – PennEnvironment, PennPIRG and partner organizations rallied Wednesday at Philadelphia City hall to announce a proposed settlement agreement with PGW, the city’s municipally-owned gas utility. The proposed settlement slashes the increase to Philadelphians’ heating bills and includes an initial step toward expanding clean energy in Philadelphia.
The groups intervened in the case alongside POWER Interfaith, Sierra Club Pennsylvania, Physicians for Social Responsibility Pennsylvania, Clean Air Council and Vote Solar. The coalition was represented in the proceeding by Earthjustice.
“Philadelphians face real environmental and health risks from PGW gas, as well as unnecessary costs,” said PennEnvironment Deputy Director Flora Cardoni. “We took legal steps to intervene because we want to make sure Philadelphians have safe, clean, affordable energy powering our lives.”
PennEnvironment Deputy Director Flora Cardoni leads a rally calling on PGW to make a plan to move away from dirty, dangerous, expensive fossil fuels to a cleaner, safer energy futurePhoto by TPIN | TPIN
The proposed settlement would reduce PGW’s originally proposed annual rate increase by 40%, from $105 million to $62 million. It also requires PGW to drop its proposed “revenue guarantee”, which would have essentially charged PGW customers for gas that they don’t use, as gas usage in Philadelphia continues to decline thanks to electrification and energy efficiency.
The settlement also includes enhanced and expanded programs for energy efficiency and weatherization programs that will help PGW customers use less gas, in turn reducing their energy bills and pollution. Lastly, the settlement would create a community engagement process with a first-of-its-kind meeting for local Philadelphians to be able to comment on a long-term plan for PGW’s future.
The five-member Public Utilities Commission will make a final decision on the rate case by the end of November 2025.
“This settlement is a clear win for PGW’s customers, we urge the Public Utilities Commission to approve it as soon as possible,” said Belle Sherwood, Campaign Director with PennPIRG. “PGW remains on an unsustainable trajectory with its high concentration of leak-prone pipe, escalating spending and declining gas consumption. PennPIRG looks forward to tackling these challenges along with partners, state and local policymakers, and PGW.”
Belle Sherwood, PennPIRG Campaign Director, let’s the crowd know that “Here in Philadelphia, we own our utility. PGW should be facilitating, not frustrating, the transition to clean energy.”Photo by TPIN | TPIN
Advocates voiced concern about PGW having the highest concentrations of at-risk pipes for any major utility in the country, yet lacking the appropriate comprehensive plan or tools to address this risk.
In Philadelphia and across the country, utilities have spent hundreds of billions of dollars on pipe replacement programs without meaningfully reducing leaks or safety risks, according to federal pipeline safety regulators. PennEnvironment and PennPIRG are calling on local decision makers to follow the lead of other states that have recently reformed gas utility pipe replacement programs to cost less, while doing more to improve safety.
While this settlement represents an important step forward, PennEnvironment, PennPIRG and partners remain committed to campaigning for a long term plan to ensure safer, clean energy homes for Philadelphia.
Alongside the environmental and community groups, the settlement was negotiated alongside and signed on to by the Public Utility Commission’s Bureau of Investigation and Enforcement, the Office of Consumer Advocate, Office of Small Business Advocate, Tenant Union Representative Network, and Coalition for Affordable Utility Services and Energy Efficiency in Pennsylvania. The coalition was joined at the celebratory rally by State Representatives Chris Rabb and Ben Waxman as well as staff from the office of Nicolas O’Rourke.
State Rep Chris Rabb speaks at the PGW rally, urging PGW towards a clean energy transition. Rep. Ben Waxman, left of podium, also stressed the importance of Clean, Affordable energy for PhiladelphiaPhoto by TPIN | TPIN
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PennEnvironment works for clean air, clean water, clean energy, wildlife and open spaces, and a livable climate. Our members across the state put grassroots support behind our research and advocacy.
Find out more at www.pennenvironment.org
PennPIRG is an advocate for the public interest. We speak out for the public and stand up to special interests on problems that affect the public’s health, safety and wellbeing.
Find out more at www.pennpirg.org
