For Sale: Philadelphia Gas Works

A new report recommends the city should sell the Philadelphia Gas Works, the government-run natural gas utility.

The 48 page report says the city should sell off PGW in order to cut costs to customers while also making a profit.  It says the deal could be done while preserving discounts to seniors.

Budget Director Rebecca Reinhart says the consultant who wrote the study says now is the time to sell.

“A private buyer was not likely to need a rate increase as soon as a city-owned PGW and quality of service would be maintained since a privately owned PGW would still be regulated by Pennsylvania Utility Commission,” said Reinhart.

Keith Holmes, the head of the union representing over 1,100 PGW workers says he will fight the sale over concerns about job security.

“I would like to see them honor all of our employees jobs our retiree benefits and have some long-term guarantee that we are going to be here,” said Holmes.

The report says PGW could sell for as much as $1.8 billion.  But the utility has around $1.5 billion in debt and other liabilities.

Mayor Nutter says he supports trying to sell the utility.