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PGW Announces Results of Geothermal Feasibility Study in Collaboration with School District of Philadelphia and Philadelphia Parks and Recreation

Study Confirms Technical Viability of Geothermal Heating and Cooling System at McCloskey Elementary School and Dorothy Emanuel Recreation Center

PHILADELPHIA (August 5, 2026) – Philadelphia Gas Works (PGW) is excited to share the results of the Geothermal Feasibility Study, conducted in collaboration with the School District of Philadelphia (SDP), the City of Philadelphia’s Parks and Recreation (PPR), and Alderson Engineering. The study was undertaken to assess the technical and economic viability of implementing a closed loop geothermal heating and cooling system at the site serving John F. McCloskey Elementary School and Dorothy Emanuel Recreation Center. 

The exploration of geothermal technology is part of PGW’s broader diversification efforts, which aim to grow revenue, deliver increased value to customers, expand its clean energy portfolio, and lower emissions. The study is one of the efforts PGW is taking to evaluate what role it can play in delivering innovative energy services beyond just natural gas in the future. In addition, PGW’s collaboration supports SDP’s GreenFutures Plan, with the goal to provide students and staff with a well-resourced, safe, healthy, clean, and comfortable learning and working environment.

The detailed study outlines geological conditions, available space for underground borefield installations, and the potential design for a decentralized geothermal unit with pumping capabilities. PGW and partners remain laser focused on exploring achievable ways to reduce emissions, offer cost-saving energy efficient options for customers, and sustain jobs across Philadelphia.

“As a leader in the energy industry, PGW is committed to delivering safe, reliable and affordable energy,” said Seth Shapiro, PGW President and Chief Executive Officer. “We have increasingly focused on innovation, partnering with other institutions to drive creative energy solutions across the City. We believe geothermal is one of many alternatives that can play a pivotal role in an ‘all of the above’ energy strategy for the City and Commonwealth.”

Background

The Geothermal Feasibility Study outlines a realistic solution to support keeping students and staff in a comfortable environment. While John F. McCloskey Elementary School and the Dorothy Emanuel Recreation Center are operating to the best of their abilities, extreme heat at times forces McCloskey School students and staff to participate in virtual learning and face canceled activities due to inadequate cooling. 

“By partnering with Philadelphia Gas Works to explore innovative energy solutions within our schools, we aim to provide clean and efficient heating and cooling options, enhance our school environment, reduce costs, and be part of a key feasibility study that can help pave the way for equitable, sustainable energy strategies that benefit all Philadelphians,” said Deputy Superintendent of Operations Oz Hill, School District of Philadelphia. 

Key Findings

The Geothermal Feasibility Study identified the following key findings:

• Favorable Geological Conditions: The geological conditions of the site are favorable for vertical borehole drilling (a hole that has been drilled straight down into the ground).
• Above-Average Thermal Conductivity: Local thermal conductivity tests, which measure how well the ground can transfer heat, indicated moderately above average thermal conductivity, which is an important factor in geothermal systems as they rely on the ground to extract heat in the winter and exchange heat in the summer.
• Aging HVAC Infrastructure: The existing oil-fired HVAC equipment at McCloskey does not provide cooling and has exceeded its expected lifetime and is recommended to be replaced. PPR recently completed an HVAC project at Dorothy Emmanuel Recreation Center.
• Viable System Design: To implement a geothermal system, the planned borehole systems, related delivery pump systems, and enclosures would be placed on the grass area next to the playing field area of the site. The geothermal utilities would deliver fluid to a heat exchanger system in each of the connected buildings. Two options are available for housing the pumping infrastructure – a prefabricated building, or in the school’s basement to reduce costs.
• Project Cost Estimates:
  • If only replacing the heating system, natural gas remains the most affordable and most efficient solution for the facilities. If replacing heating and adding cooling, the ability of geothermal to serve both functions with a single system creates synergies.
  • The primary geothermal solution is expected to cost approximately $19 million. With projected potential incentives reducing the cost by approximately $7.6 million, the net total cost of the project is estimated to be $11.4 million.
  • A second alternative solution is expected to cost approximately $25 million. With projected potential incentives reducing the cost by approximately $10 million, the estimated net total cost is $15 million.
  • These potential incentives are fully dependent on the Investment Tax Credit offsetting approximately 40% of the geothermal project cost.

• Future Scalability: The geothermal system design anticipates the ability for future scalability, providing the opportunity for additional properties or buildings to be safely integrated into the loop over time.

Procurement Process

In PGW’s effort to expand its clean energy portfolio and explore diversification efforts, PGW issued a Request for Proposals on March 17, 2025, and received applications through April 15, 2025. All were carefully reviewed before Alderson was selected as the Geothermal Feasibility study contractor. 

 To read the study, visit pgworks.com/fuelingthefuture.

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PGW AND PA DHS MAKE GETTING HELP EASIER FOR CUSTOMERS WITH NEW DATA SHARING PARTNERSHIP

Thanks to a data sharing partnership with Pennsylvania’s Department of Human Services, financial assistance program enrollment and participation is now faster and easier

PHILADELPHIA (July 31, 2026) – Philadelphia Gas Works (PGW) is making access to utility assistance programs even easier for eligible customers through a data sharing partnership with Pennsylvania’s Department of Human Services (PA DHS). Through this cooperation, PA DHS -- which administers the Low Income Home Energy Assistance Program (LIHEAP) -- now provides PGW with LIHEAP applicant information for those who have consented, to streamline enrollment and allow automatic recertification for eligible customers into PGW’s Customer Responsibility Program (CRP). CRP is a bill assistance program that helps low-income customers afford their PGW bills and receive pre-program debt forgiveness.

What does this mean for PGW customers? Thanks to this new partnership:

• More than 9,000 current PGW customers enrolled in CRP will be automatically re-certified into the program – no action needed by the customer.
• Over 6,000 PGW customers who applied for LIHEAP and consented to PA DHS sharing data with PGW will receive an enrollment letter from PGW to sign and return. This will enroll the customer in CRP, removing the steps of applying and providing documentation.

“It is exciting that through this data sharing agreement, PGW will improve program access for more low-income customers, while still maintaining high program integrity,” said Denise Adamucci, Senior Vice President of Customer and Regulatory Affairs at PGW. “This data sharing partnership with PA DHS reduces access burdens for our customers – by simplifying the process so they can focus on what matters most to them. We look forward to continuing to work in cooperation with PA DHS to help our customers in new and innovative ways.”

Customers enrolled in CRP who did not apply for LIHEAP or who used the LIHEAP grant for a different utility will need to re-certify. Those who are not already enrolled can apply online through My Account or by mail or fax using the CRP application (available to customers in 14 languages).

Beyond its data-sharing agreement with PA DHS, PGW has also teamed up with local peer utilities to better serve income-eligible households. This spring, PGW and two other local utilities contacted their income-eligible customers, sending more than 320,000 emails across Philadelphia to promote each other’s utility assistance programs. If a customer is eligible for one utility’s program, they are likely eligible for another utility’s program. Through this utility cooperation, more Philadelphians benefit from utility assistance and lower their overall household energy burden.

For information on each program and ways to enroll, eligible customers can apply to each program through the utility’s website:

• PGW Customer Responsibility Program (CRP)
• PECO Customer Assistance Program (CAP)
• Philadelphia Water Department’s Tiered Assistance Program (TAP)

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PGW Examines Pathways to Reduce Emissions

 PGW is identifying potential decarbonization options to shape future energy decisions

Philadelphia (July 29, 2026)  – Philadelphia Gas Works (PGW) is dedicated to leading Philadelphia’s clean energy future and is pursuing several different opportunities and initiatives to move the company and the City forward. One effort launched this year is PGW’s Low Carbon Pathways project, aimed at exploring possible long-term decarbonization pathways while also prioritizing safety, affordability and reliability to advance decarbonization goals and support a cleaner, greener Philadelphia. To undertake important work, PGW engaged a leading sustainability consulting firm, Environmental Resources Management, Inc. (ERM), which was competitively selected by PGW to support analytical modeling and stakeholder engagement.

“The goal of this study is to explore a range of viable options as representative examples for comparison, and to establish a foundation for future decision making,” said Janelle Johnson-Grummert, PGW’s Director of Sustainability. “As we drive sustainability efforts, we want to prioritize the greatest emission reductions possible while ensuring no customers are left behind and all have access to safe, reliable, and affordable energy.”

To continue reducing Greenhouse Gas Emissions (GHG) in Philadelphia, PGW has set annual emissions reductions targets since 2023, to meet its ambitious long-term goals. For its 2025 fiscal year (September to August), PGW’s target reduction was 10,500 metric tons of carbon dioxide equivalent (CO2e) and PGW notably exceeded this target, achieving  a total reduction of over 12,000 metric tons of CO2e. PGW currently accounts for approximately 21 percent of the City of Philadelphia’s city-wide GHG emissions.  While PGW’s share of GHG emissions is less than transportation and electricity, the reductions PGW is making a meaningful step in achieving the City of Philadelphia’s commitment to reach carbon neutrality by 2050.

 Led by ERM and PGW, the comprehensive analysis will look at outcomes from several scenarios, including:

1. PGW’s current natural gas network and emission-reduction programs;
2. a hybrid, or mix of electric and gas systems; and
3. a shift away from natural gas towards more electricity usage for space heating, cooking, drying, and water heating.

The Low Carbon Pathways Project study and will be completed in fall 2026. As part of the study PGW will host two virtual community engagement sessions to discuss and gather feedback from Philadelphians to help inform PGW’s ongoing and future work. More information about the Low Carbon Pathways study and PGW’s ongoing sustainability work can be found at pgworks.com/sustainability.

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