Philadelphia Gas Works Seeks Rate Hike as Winter Nears

Philadelphia Gas Works is seeking permission to raise rates as winter approaches, a move that would increase heating bills for hundreds of thousands of customers across the city.

The city-owned utility filed its request with the Pennsylvania Public Utility Commission, which must approve any rate change before it takes effect. The commission’s review process typically takes several months and includes public hearings.

PGW serves about 500,000 customers in Philadelphia, making it the largest municipally owned gas utility in the country. Most of its customers are residential households that rely on natural gas for winter heating.

The utility says the increase is needed to cover rising operating costs and continued investment in replacing aging cast-iron gas mains, some of which date back more than a century. The pipe replacement program is a long-term safety and reliability effort.

Customer advocates are expected to scrutinize the filing closely. Rate cases routinely draw intervention from the state Office of Consumer Advocate and community groups concerned about affordability for low-income households.

For customers worried about winter bills, PGW offers budget billing, which spreads heating costs evenly across the year, and the federal Low Income Home Energy Assistance Program provides grants to qualifying households. The utility also runs a customer assistance program with discounted rates for eligible low-income customers.

The commission will set a schedule for hearings and public comment in the coming weeks. Customers can track the case on the commission’s website and submit comments before a final decision.

Until the commission rules, current rates remain in effect. Any approved increase would appear on bills after the commission issues its final order.