In The News

PGW Base Rate Case Settlement Approved

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 – October 9, 2025) – Today, the Pennsylvania Public Utility Commission (PUC) approved a settlement agreement that Philadelphia Gas Works (PGW) reached and advocated for with PUC prosecutorial staff, the Pennsylvania Consumer Advocate, the Pennsylvania Office of Small Business Advocate and other parties to PGW’s 2025 base rate case.

Although PGW’s settlement will increase base rates by approximately $62 million annually, the annual bill for a typical PGW heating customer has decreased by $259 or 18.5% over the past 10 years. Adjusted for inflation, those annual bills have been lowered by $662, or 36.7%. This settlement allows PGW to advance its ability to provide affordable energy and high-quality service and customer care, with the financial stability necessary to maintain a safe, reliable energy system.

Unprecedented Public Input

Unlike investor-owned utilities, PGW has no shareholders and there is not a rate of return included in PGW’s rates. PGW is proud of the hard work and cooperation involved in working together on this necessary increase and favorable settlement.  With this year’s filing, PGW engaged in significant negotiations with third-party intervenors. The intervenors include a diverse number of consumer interests, community representatives, and environmental stakeholders, and incorporated a wide range of viewpoints and perspectives. 

In concert with customer feedback gathered by the PUC’s public hearings and constructive discussions with intervening parties, this settlement aims to keep PGW customers at the forefront and supports the ongoing financial stability of the company and protection of the community.

“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 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 and settlement.  We care deeply about protecting our customer’s interests.”

Low Cost of Natural Gas Compared to Alternative Sources

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, funding for low-income customer protection programs, 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 recognizes there are customers who need assistance paying utility bills. We encourage eligible customers to take advantage of all available assistance programs including LIHEAP and PGW’s Hardship Fund and Customer Responsibility Program.

Information on payment assistance programs is available on pgworks.com

PGW also encourages customers to take advantage of its Energy Sense offerings to help reduce energy use and manage monthly bills.

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PGW Offers Free Methane Detectors to Customers

(Philadelphia, Pa – September 29, 2025) Philadelphia Gas Works (PGW) customers can now order a free methane detector at pgworks.com/customerkits, while supplies last. The kit includes information on methane detectors and instructions on where to install them. Detectors do not notify the utility directly; however, detectors provide an audible alarm should gas levels exceed safe limits to alert anyone in the property to call PGW at 215-235-1212 or call 911 immediately from a safe location.

Whether the property has a methane detector kit or not, if you smell gas, leave the area and call PGW’s emergency hotline at 215-235-1212. Methane detectors can offer an additional layer of safety especially if you have a weak sense of smell.

Natural gas is odorless and PGW adds a safe, non-toxic, odorant to natural gas that has a distinctive smell, similar to sulfur or rotten eggs for quick detection. Odorizing natural gas is a vitally important safety feature required of all natural gas utilities. You may also be able to identify natural gas by sight or sound – like hissing or roaring sounds or seeing blowing dirt, bubbling water, or dead or dying plants – which can be caused by a natural gas leak. Natural gas leaks can infrequently occur for various reasons such as faulty appliances, damaged pipelines, or improper piping installation.

Again, while these methane detectors will alert a customer to the odor of natural gas, they will not notify PGW. A customer must call our 24/7 gas odor hotline at 215-235-1212. PGW responds to all odor calls in less than an hour.

PGW's most important responsibility is protecting the safety of our employees, customers, and community. We are improving service safety and reliability with our robust Pipeline Improvement Program to replace vintage gas mains with newer, safer alternatives.

For added safety, PGW encourages customers to check on the safety of their natural gas appliances by having them inspected by a licensed professional every year, or as often as the manufacturer recommends. Customers may also take advantage of PGW’s Parts & Labor Appliance Protection Plan. For one low-cost annual payment, PGW will provide maintenance and service to your natural gas appliances at no additional cost to the customer.

For more appliance safety tips and steps to take if you smell natural gas, visit our Appliance Safety page.

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Fitch Upgrades Philadelphia Gas Works’ Bond Rating to ‘A’

This upgrade is the first time in the company’s 189-year history all three rating agencies have rated its bonds in the ‘A’ category.

PHILADELPHIA (September 3, 2025) – At the close of PGW’s fiscal year, Fitch Ratings upgraded its rating on Philadelphia Gas Works Revenue Bonds to ‘A’ from ‘A-’ and assigned a Stable outlook. This is the second Philadelphia Gas Works (PGW) upgrade by Fitch in two years, and PGW now has its highest ever combination of credit ratings.

PGW’s bonds are now rated in the ‘A’ category by all three rating agencies. In addition to the Fitch ‘A’ rating, Moody’s Investors Service and Standard & Poor’s Global Ratings maintain Stable outlooks and ratings of ‘A3’ and ‘A’, respectively on PGW’s outstanding bonds. In general, higher credit ratings can result in lower borrowing costs as investors view those securities as less risky.

Fitch cited PGW’s “sustained strong financial performance”, sufficient liquidity, and effective management in its rating report.  Fitch noted that PGW effectively manages distribution, and supply costs and uses flexible and revenue-neutral rate mechanisms to respond to lower demand and stabilize its finances when needed

The upgrade further reflects rate relief that PGW is expected to receive beginning in FY 2026. PGW recently filed a $62 million Joint Petition for Settlement in its base rate case. The settlement and related Administrative Law Judge recommendation will be reviewed by the PUC in November.

“We appreciate the confidence Fitch has demonstrated in PGW by increasing our bond rating outlook from ‘A-’   to ‘A’,” said Seth Shapiro, President & CEO, PGW.  “The rating upgrade is an encouraging endorsement of PGW’s leadership team performance and the dedicated service of our entire workforce. PGW’s ability to constantly improve our operational excellence and grow revenue directly benefits our customers,” he said.

The ratings agency also credited PGW’s “strong revenue source characteristics and a stable demand profile, including a stable service territory with improving economic and demographic indicators.”

“The recent upgrade to ‘A’ is a major accomplishment and a testament to the continued hard work of PGW’s management team,” said City Treasurer Jacqueline Dunn regarding the Fitch action.

There are approximately $1.1 billion of outstanding gas works revenue bonds (Senior 1998 general ordinance) that are secured by the revenues of PGW in addition to a debt service reserve fund.

Read the full rating report HERE.

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