Your gas bill might go up soon — but it’s still a lower increase than PGW wanted

Philadelphia Gas Works customers may soon see higher bills, but they won’t be as high as the city-owned utility originally wanted.

The rate increase — which will yield a 3.15% boost in PGW’s annual distribution rate revenue, generating $26.2 million for the nonprofit, municipal-owned utility — was approved by the Pennsylvania Public Utility Commission last week. But PGW had originally requested an increase of 10.2%, to generate $85 million in revenue a year, citing improvements to infrastructure, safety, efficiency, and customer service.

The commission also directed PGW to “scale back” new customer rates while taking steps to increase enrollment and retention in its customer assistance programs for low-income Philadelphians. The Office of the Consumer Advocate found that PGW enrolled fewer than half of its low-income customers in its Customer Responsibility Program, which can cut gas bills in half and forgive past debt.

The PUC has asked PGW to submit plans for how they’ll use consumer outreach and data, including from the Low Income Home Energy Assistance Program, to assist with enrollment in these assistance programs.

» READ MORE: You can now apply for up to $1,000 off your heating bill this winter

PGW officials were “disappointed” by the commission’s decision, a spokesperson said Monday, saying the smaller-than-requested revenue increase would make it harder for them to fund those low-income programs without taking on additional debt, for which customers would eventually have to pay.

“It is the view of PGW that the Commission’s decision will hinder PGW’s ability to sufficiently meet the current needs of the utility while also adding an additional financial burden to customers,” PGW spokesperson Melanie O. McCottry said in a statement. “Reduced rate relief will potentially remove or lessen funding for low-income programs,” as well as for safety upgrades and emission-reducing investments.

Meanwhile, POWER Interfaith, the group of faith-based organizers that intervened in the case as part of its push for more renewable energy, said in a statement that the commission’s decision came with “significant victories” in terms of energy affordability and environmental impact.

In the short term, it is not yet known how much residential and business customers will be impacted by the approved base rate revenue increase. PUC awaits a compliance filing from PGW that would contain the rate increase information for its 516,000 customers.

Whatever the rate changes are, they will go into effect for service received starting Nov. 29, so customers are unlikely to see any impact until next month’s bill.

While gas customers were among those who saw particularly high bills last winter, they are projected to see lower bills this year, even if temperatures are slightly colder.