The Pennsylvania Public Utility Commission will conduct a full-scale review of a proposed 11.6 percent rate increase by Philadelphia Gas Works, targeting a final decision for Nov. 28.
The commission voted, 5-0, to investigate PGW’s proposal, which would increase revenues by $70 million a year. The decision to conduct a formal examination and hearings of the request is considered routine in any contested rate filing.
PGW's proposal would boost the average monthly bill for a typical residential customer using 76 thousand cubic feet of gas per year to $104.65 from $94.06 per month, or 11.3 percent.
The city-owned utility says it needs higher rates to maintain revenue to counter declining consumption due to warming weather trends. The increase is concentrated in a proposed 50 percent boost of the fixed customer charge, from $12 a month to $18.