PGW could have to pay more to city under new plan

The Philadelphia Gas Works might have to pay 10 percent more to the city as part of a new bill that could be approved by City Council before it goes on summer break.

The bill would demand another $1.8 million on top of the $18 million annual payment PGW already makes to Philadelphia.

Covering that increase would probably mean cutting back on infrastructure improvements, according to Janet Parrish of the Philadelphia Gas Commission, which oversees the city-owned utility.

“We are facing a situation where currently PGW is utilizing every available dollar of its internally generated funds to pay for its capital investments,” Parrish said.

Councilman Curtis Jones, who proposed the increase, said it’s nothing more than an inflation adjustment for a payment that began 30 years ago.

“If we would have adjusted to the rate of inflation over that period of time, this body, the city of Philadelphia, would have received upwards of $34 million,” he said.

An attorney testifying at the hearing said that PGW customers pay the highest rates in Pennsylvania. The bill will move to the full council for approval.