Money shifts from PGW to city of Philadelphia for sake of budget

The city of Philadelphia will attempt to balance its budget by shifting into its coffers money tied up in Philadelphia Gas Works.

The city of Philadelphia will attempt to balance its budget by shifting into its coffers money tied up in Philadelphia Gas Works.

City officials have decided PGW is stable enough financially that the municipality can take $1.7-million in interest earnings that has sat untouched for two years.

Councilwoman Jannie Blackwell says she’s surprised the city has chosen to do this at a time when people can’t pay their bills and the utility might need the cash.

Blackwell:
PGW isn’t able to pay that money because of these issues with people who can’t pay their bills. I’m always afraid that they are trying to take it out on the ratepayer and they just don’t have it.

The head of the gas commission that oversees PGW says the move is legitimate since the city loaned the utility $45-million interest free. The $1.7-million was interest on that money.

As part of that deal, the city retained the right to take back any interest and was just exercising its right to do so.