The city of Philadelphia has narrowed the field of potential bidders for the city-owned Philadelphia Gas Works as Mayor Michael Nutter proceeds toward what he hopes will be a sale to private investors.
In August more than 30 qualified parties responded to the city’s Request for Qualifications and expressed interest in owning PGW.
“We have now gone to the next level and reduced that number to a number that for competitive reasons we’re not able to disclose,” said Mayor Nutter’s Spokesman Mark McDonald. “But this smaller group of interested parties will receive much more detailed information about the company.”
McDonald says the remaining bidders will sign non-disclosure agreements in exchange for confidential information about the financials of PGW.
“(They’ will) get that information, be able to come to the company, have briefings and receive detailed documents that reflect how the company is performing in preparation for final bids, binding bids that would come in January,” McDonald said.
Once all the bids are in, the city will enter into negotiations with the goal of finalizing sale terms by Feburary. If an agreement is reached the sale must be authorized by City Council and approved by the Pennsylvania Public Utilities Commission.
Mayor Nutter has said he hopes to use the proceeds of the sale to shore up the city’s sagging pension fund.