The Philadelphia Gas Commission’s (PGC) long term role as soleregulator of Philadelphia Gas Works’ (PGW) is coming to an end. PGWwill have to answer to a new governing body, the PennsylvaniaPublic Utility Commission (PUC). The state agency will now set theutility’s rates, as well as follow up on customer complaints andconcerns.

The transfer of regulatory duties makes good on a promiseincluded in Pennsylvania’s comprehensive deregulation bill signedlast summer by Gov. Tom Ridge.

The bill included a section requiring PGW to fall under theregulation of PUC. PGW is an acquisition, storage, processing, anddistribution municipal, the largest city-owned gas utility in thecountry serving over 518,00 customers in Philadelphia. In recentyears, the company has been marred by computer system problems,debt, and customer discontent. Last year’s brand new $70 millioncomputer system over-billed some customers, and did not bill othersat all.

The municipality had been solely regulated by the gas commissionever since a three member board was appointed in 1927.

“Essentially, it (PGW) was not taken away from the gascommission, PGC remains in place, and does everything we’vetraditionally done, the only thing that really moved from the gascommission is the adjudication of customer disputes,” said ChrisKimmerle, executive director of the gas commission. “We stillresolve disputes, we just don’t have the final say anymore.”

Kimmerle went on to explain the other duty that will be passedon to the PUC. “Traditionally we have had total rate-makingauthority. Now our rates will come regulated from the publicutility commission, but we still will be involved in the overallmanagement of PGW. The Philadelphia Gas Commission is the body thatoversees the operation of the assets of the city of Philadelphia,which are collectively known as the Philadelphia Gas Works. PGW isnot a company as such; it is just a collection of assets,” Kimmerleexplained.

Alex Steis

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