Limited utility

It took hundreds of millions of years for geologic forces to form the natural gas coursing below Philadelphia's streets. And it took more than a century for many of the pipes carrying it to reach their questionable state of repair. In that context, Darrell Clarke's City Council threw the system's future into doubt with impressive speed.

Now the city, still in possession of the nation's oldest and largest municipally owned gas utility, is starting to grapple with the consequences of Council's thoughtless rejection of a $1.86 billion offer for the system.

Porous pipes are the most serious danger, as evidenced by last week's evacuation of 17 South Philadelphia residents due to a leaking main. Councilwoman Marian B. Tasco, who heads the city Gas Commission, has called safety concerns a "red herring," but her willful ignorance won't protect anyone from the hazard.

One recent study judged Philadelphia Gas Works' system to be second only to New York City's in leaks, with nearly 5,500 in a year, or about one per mile of pipeline. The utility has been working to replace its outmoded cast iron and bare steel pipes for decades, but at a cost of about $1 million a mile, it expects the project to take the rest of this century. A private owner's capacity to speed replacement was part of the convincing case for a sale.

Barring that, PGW has few prospects for raising capital beyond its generally overtaxed and underprivileged customer base. The utility is exploring expanded sales of liquefied natural gas, but the revenue is likely to be modest and uncertain.

The state Public Utility Commission this month ordered a review of PGW's pipeline replacement schedule to "determine what may be done to accelerate this process and avoid tragic accidents," Chairman Robert Powelson said. He also questioned PGW's $18 million annual payment to the city, noting correctly that it will become difficult to justify against urgent maintenance needs. The city therefore stands to lose that income on top of the windfall promised by a sale.

Speaking of which, the city's fiscal oversight board warned last week that its underfunded pension system is hampering economic growth. It recommended reducing employee benefits and increasing contributions. Selling PGW represented a rare chance to substantially reduce the $5 billion pension shortfall.

In the aftermath of such missed opportunities, Clarke's latest announcement was almost comically underwhelming: A new committee will study PGW and issue a report. Which brings us back to geologic time.