PGW wants to raise rates by 11 percent, to cover cost of new pipes

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Creative Commons Licence

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Contributed date

April 24, 2020 - 11:44pm

Critical Commentary

This is a very recent article from WHYY the local public news site for Philadelphia.  It outlines a proposed rate increase for households in Philadelphia by PGW, the local gas company. The reason this article interested me was how it touches on household costs for energy as well as physical infrastructure as a varied element of vulnerability. 

PGW is proposing an increase of about $11 per month per household in order to finance pipe replacement and maintain the safety of the community as a whole. In December, 2 people were killed and a dozen homes were damaged due to aging and faulty infrastructure. This sheds light on another form of energy vulnerability, how infrastructure can harm or kill. It also brings up the question of agency and responsibility and who should bear the costs of renovation.  Philadelphia is one of the poorest big cities in the country and the gas company is municipally owned making their revenue stream a precarious situation. 

A visit to PGW's website from the link provided in the article show's the company is addressing the vulnerability of the city's poor through expanding assistance programs, something not mentioned in the article. 

“We recognize that many of our customers fall below the federal poverty line and lack financial stability. Since our 2018 fiscal year, we allocated $126.9 million to support those customers in need,” said White. “PGW is planning to expand access to assistance programs to more customers and offer even more flexibility, as well as the insights they need to monitor their own consumption. Along with our low-income programs this approach helps keep natural gas affordable for all.” "PGW understands the financial hardships our customers face and the company is pursuing new revenue streams to help lessen that burden. In June 2019, Philadelphia City Council approved our Passyunk Plant P3 LNG expansion project with Passyunk Energy Center. Our project partner Passyunk Energy Center LLC will market and sell LNG, opening the door for a potential new revenue stream to PGW. This revenue will be reinvested right back into PGW– helping to keep rates low." https://www.pgworks.com/business/customer-care/rates

This proposal is not a new practice, but one in a series of incremental rate increases over recent years. In addition to rates, the article also rounds out the discussion with other elements such as demand, the energy market for natural gas, climate change and energy efficiency. 

Overall this sheds a nice light on several systems, physical, financial, and political as they have to do with energy vulnerablity and every day life. 

Language

English

Cite as

Susan Phillips, "PGW wants to raise rates by 11 percent, to cover cost of new pipes", contributed by Roya Haider, The Energy Rights Project, Platform for Experimental Collaborative Ethnography, last modified 24 April 2020, accessed 28 March 2024. https://energyrights.info/content/pgw-wants-raise-rates-11-percent-cover-cost-new-pipes