PHILADELPHIA (KYW Newsradio) — PGW customers will face a rate hike next year, but it will be smaller than requested under a settlement announced Wednesday by a coalition of environmental groups.
PGW has agreed to cut its rate hike request from $105 million to $62 million, and, according to Val Sherwood of PennPIRG, it will drop its request for what it called a “revenue guarantee.”
“This shortsighted proposal would have shockingly forced local PGW customers to pay more when gas consumption is down,” Sherwood said.
PGW also agrees to put more money into weatherization and energy efficiency programs and offer discounts to low-income customers.
Flora Cardoni of PennEnvironment says it’s a win for Philadelphians, but more reforms are needed.
“It is time to stop business as usual at PGW. PGW should be lowering system costs through energy efficiency, electrification and more targeted repairs,” Cardoni said.
To that end, the settlement also creates a community engagement process on climate change, including public meetings with PGW officials. The settlement must still receive approval from the Public Utility Commission.
PGW declined to comment until the PUC rules on the settlement, but a post on its website said it “Will maintain the company’s financial health, further modernize its infrastructure, and deliver safety and quality of life enhancements for its customers.”
New rates would take effect at the end of November.