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.

Calpine, Native Americans Partner in Power

Calpine Corp., the nation’s top independent power producer, islooking to increase its already-bulging power plant portfolio evenmore. Yesterday, it said it acquired the rights to develop, build,own and operate a 600 MW gas-fired generation facility near thetown of Thermal in Riverside County, CA, through a development dealwith Adair International Oil and Gas and a long-term leaseagreement with the Torres Martinez Desert Cahuilla Indians. The$275 million facility, to be called the Teayawa Energy Center, willbe sited on the Cahuilla Indians’ land in the Coachella Valley,with construction to possibly begin as early as mid-2001 andcommercial operation to get under way in late 2003.

The Cahuilla tribe got involved in the project because they sawit as a good investment. “The Torres Martinez people have beenlooking for a long-term economic development alternative tocasinos,” said tribal Chairperson Mary Belardo. Also, the tribe wasattracted to Calpine’s “proven record of environmental andcommunity responsiveness.”

©Copyright 2000 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.