Authorizing City Council's Committee on Transportation and Public Utilities to investigate and hold hearings on the Petition of the Philadelphia Gas Works ("PGW") to the Pennsylvania Public Utilities Commission to establish a cash receipts reconciliation clause ("CRRC"), in order to reconcile PGW's projected and actual cash receipts with billed revenues on an ongoing basis; the causes and necessity for a CRRC; and further authorizing the Committee to issue subpoenas and such other process as may be appropriate to compel the attendance of witnesses and the production of documents in furtherance of the investigation to the full extent authorized by Section 2-401 of the Philadelphia Home Rule Charter.

WHEREAS, The Philadelphia Gas Works (“PGW”) has filed a petition with the Pennsylvania Public Utilities Commission (“PUC”) to establish a cash receipts reconciliation clause (“CRRC”) to reconcile PGW’s projected and actual cash receipts with billed revenues on an ongoing basis; and

WHEREAS, The establishment of a CRRC would create a non-bypassable clause to be charged to all firm transportation or sales customers as part of the distribution rate; and

WHEREAS, The effect of such a clause on a customer’s gas bill would not be stated separately in the customer’s bill; and

WHEREAS, PGW attributes the need to have a CRRC to the spiraling cost of natural gas and a dramatic increase in its uncollectible or bad debt expenses; and

WHEREAS, The effect of such a clause would be to pass the cost of uncollectible revenues on to PGW’s paying customers; and

WHEREAS, Such a pass through of an additional charge of $47 million would add an additional annual cost of $80 to a typical PGW customer; and

WHEREAS, PGW customers are already struggling to pay for the high cost of gas and the apparent inability of PGW to improve on its rate of collections; now therefore

RESOLVED, THAT THE COUNCIL OF THE CITY OF PHILADELPHIA, hereby authorizes City Council’s Committee on Transportation and Public Utilities to investigate and hold hearings on the Petition of the Philadelphia Gas Works (“PGW”) to the Pennsylvania Public Utilities Commission to establish a cash receipts reconciliation clause (“CRRC”), in order to reconcile PGW’s projected and actual cash receipts with billed revenues on an ongoing basis; the causes and necessity for a CRRC; and

RESOLVED, Further that the Council authorize the Chairperson of the Committee on Transportation and Public Utilities to issue subpoenas and such other process as may be necessary or appropriate in furtherance of such investigation to the full extent authorized under Section 2-401 of the Philadelphia Home Rule Charter.

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