PHILADELPHIA, SEPT. 14, 2007 – State Sen. Mike Stack today applauded the Pennsylvania Public Utility Commission’s (PUC) decision to deny Philadelphia Gas Works' (PGW) its proposed $100 million rate increase.

“PGW customers already pay the highest rates for natural gas in the state. They should not pay one more nickel than necessary for gas,” Stack said. “PGW’s plan was expensive, flawed and opposed by my constituents. Fortunately, the PUC agreed.”

The financially strapped PGW requested a rate increase that would total $100 million. After reviewing the request and hosting several public hearings for customers, the PUC approved a $25 million increase.

“I applaud the PUC for holding public hearings and carefully reviewing this rate increase request,” Stack said. “I also thank my constituents for participating in the public hearings and for testifying against the rate increase. The PUC heard your opposition to the plan and made the right decision by trimming the fat off PGW’s proposed rate increase.”

This is not the first time PGW has tried to request a substantial rate increase.
In 2002, PGW requested a $60 million base-rate increase. PUC conducted an aggressive review, scrutinized the request and instead approved a $36 million increase.

“Once again, PGW tried to pawn off its unnecessary expenses and costly poor decisions — like the failed attempt to place a liquefied natural-gas import terminal in Port Richmond — on good-paying customers,” Stack said. “While I agree that PGW needs to address its ongoing financial situation, it should not place the burden on its customers. I encourage PGW to continue to improve operations without harming rate payers.”

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