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PUC Approves Without Modification ALJ’s Adoption Of Joint Settlement Filed In Gas Utility’s Rate Case

Category: Pennsylvania

The Pennsylvania Commission adopts the Recommended Decision of Administrative Law dated September 3, 2025, regarding Philadelphia Gas Works rate case petition.

From the Order:

“That Philadelphia Gas Works be permitted to file a tariff supplement, incorporating the terms of the Joint Petition of Settlement and changes to its rates, rules and regulations as set forth in Exhibits 1 and 2 of the Joint Petition, to become effective upon at least one day’s notice after entry of the Commission’s Order approving the Settlement. Said tariff supplement shall be accompanied by a red-lined version that shall fully set forth all changes that will be made to Philadelphia Gas Works’ current tariffs.” {***}

{***} “Joint Petition for Settlement that Philadelphia Gas Works, the Pennsylvania Public Utility Commission’s Bureau of Investigation and Enforcement, the Office of Consumer Advocate, the Office of Small Business Advocate, Tenant Union Representative Network and Coalition for Affordable Utility Services and Energy Efficiency in Pennsylvania, and the Energy Justice Advocates executed and submitted at Docket No. R-2025-3053112 on August 7, 2025, be approved without modification.”

Excerpts from the Press Release:

The Pennsylvania Public Utility Commission (PUC) today approved smaller than requested rate changes for natural gas distribution services provided by Philadelphia Gas Works (PGW) and further directed PGW to continue evaluating key initiatives related to methane gas detection, decarbonization and customer assistance programs.

The Commission voted 5-0 to approve a Joint Petition for Settlement (joint settlement) without modification as detailed in the Recommended Decision of PUC Administrative Law Judge Eranda Vero.  The joint settlement was submitted by PGW, the PUC’s independent Bureau of Investigation and Enforcement, the Office of Consumer Advocate, the Office of Small Business Advocate (OSBA), Tenant Union Representative Network and Coalition for Affordable Utility Services and Energy Efficiency in Pennsylvania, and the Energy Justice Advocates.

PGW Rate Changes

{***} “Under the settlement, PGW is granted a base rate revenue increase of $62 million (approximately 9.3%) – $43 million less than the company’s initial request of $105 million (15.7%).  Additionally, the settlement includes a $1 adjustment to the monthly residential customer charge, from $16.25 to $17.25.

Under the settlement, the total monthly bill for an average residential customer using 61 Mcf/year will increase from $92.60 to approximately $98.70 per month (about 6.6%) instead of a monthly adjustment from $92.60 to $104.61 (approximately 13%) as initially proposed by PGW.

The new rates will be applicable to service rendered on and after Nov. 28, 2025.”  {***}

Press Release  (10/9/2025)
Order  (10/9/2025)
Statement of Chair DeFrank  (10/9/2025)
2025-3053112
(Petition of Philadelphia Gas Works to Modify Definition of the Charges Subject to Distribution System Improvement Charge Cap or Alternatively to Increase Current DSIC Cap)