Who's paying for advisors to possible PGW sale?
Councilwoman Marian Tasco, who serves as chairwoman of the Gas Commission, this week fired off an angry letter to the mayor, saying the commissioners were concerned that PGW funds were being used to hire consultants to help sell the public utility and noting that “no one has submitted any specific budget requests to us for approval.”
The road to a possible Philadelphia Gas Works sale clearly won't be paved with hearts and flowers.
Councilwoman Marian Tasco, who serves as chairwoman of the Gas Commission, this week fired off an angry letter to the mayor, saying the commissioners were concerned that PGW funds were being used to hire consultants to help sell the public utility and noting that "no one has submitted any specific budget requests to us for approval."
In the March 20th letter, Tasco says the city has agreed to $60,000 in consultant contracts for a lobbyist and communications consultant. Tasco said any such expenditures should be subject to a review by the five-member commission and a public hearing.
Mayoral spokesman Mark McDonald said the city solicitor has deemed it appropriate for PGW funds to be spent on those two consultants because she considers it within the scope of normal operating expenses and because ultimately a sale could be beneficial to ratepayers. The city has hired law firm Kleinbard, Bell and Brecker as a lobbyist and communications consultant Ceisler Media.
Mayor Nutter last month announced plans to explore a sale of PGW, but said the city would only consider a deal if certain conditions were met, like the buyer honoring programs for low-income residents and current labor contracts. A consultant hired by the city -– and paid for by PGW -- estimated that the sale of the 175-year-old utility could net the city as much as $496 million in profit.
The union representing the gas workers has been vocal in their opposition to a sale. Frank Keel, acting as spokesman for UWUA Local 686 said in a statement that: "it does not seem at all appropriate for the administration to be trying to stick PGW's customers with a big bill for a lobbyist and communications specialist to help grease the skids for the sale of the utility."