The Philadelphia Gas Works (PGW) has filed a settlement proposal with the Pennsylvania Public Utility Commission, including a gas cost reduction of 20%, that adds up to about $171 million.

“Natural gas prices have been dropping, after reaching an all-time high last winter, and we’ve worked overtime to capture as much of these reductions as possible for our customers,” Craig White, PGW senior vice president, said. The settlement calls for a two-tiered reduction in customer rates. On Sept. 1, there will be a 16% or $135 million cut in the Gas Cost Rate (GCR) and on Dec. 1 another 4% or $36 million will be dropped.

The settlement also sets up rules for Philadelphia-based PGW to continually review and update natural gas prices for the remainder of the year.”We’re watching natural gas costs very carefully, and if their downward trend continues, we’ll be able to reflect those reductions in our rates.” The distribution company serves more than 520,000 residential, commercial and industrial customers.

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