WHEREAS, Pursuant to the two recent hurricanes in the Gulf of Mexico and a shortage of natural gas, the Philadelphia Gas Works has asked the state for permission to raise its rates by about 19.4 percent starting Oct. 7; and
WHEREAS, Such a rate increase would result in a hike of about $335 per year in the typical residential heating customer's bill; and
WHEREAS, This hike would be in addition to the 4.9 percent increase the utility was allowed to put in place on Sept. 1; and
WHEREAS, PGW has warned that customers' average heating bills could rise by about 27 percent from last year's average of $1,572 a year; and
WHEREAS, Such a hike would come at a time when the state has given the utility the ability to shut off service during the winter months, from Dec. 1 to March 31, to customers who do not pay; and
WHEREAS, Because PGW must purchase gas on the wholesale market the proposed increase could not be avoided; and
WHEREAS, The effect off the increase could be catastrophic for low-income customers; and
WHEREAS, Although there are a programs available that can reduce low-income customers bills, many citizens are either unaware of their availability or don't take advantage of such relief; and
WHEREAS, Due to the recent energy-rate hikes additional assistance may be needed; now therefore, be it
RESOLVED, THAT City Council's Transportation and Public Utilities Committee be authorized to hold public hearings to discuss the impact of the proposed PGW 19.4% rate hike on the citizens of Philadelphia and explore methods of providing resources and relief to those most severely affected by such a dramatic increase.
End