Philadelphia Gas Works

Philadelphia Gas Works (PGW) is the municipally owned natural gas utility serving Philadelphia and is the largest city-owned gas utility in the United States. The City owns it, but it is run by the Philadelphia Facilities Management Corporation, a nonprofit under contract with the city, and it has no shareholders.^[1] Its president and CEO is Seth Shapiro.^[2]

1 Ownership and governance

PGW traces its origins to 1836, when Philadelphia began gas service, and it is now owned by the city. Because the city owns the system, its debt and finances interact with the city's budget and bond rating, and its dividends or payments to the city have been a subject of mayoral and Council attention. PGW's board of directors is appointed through city processes, and the mayor and City Council have historically influenced it. PGW is not a state-created authority like SEPTA; it is a city asset managed through a nonprofit contractor.

2 Regulation: from Gas Commission to the PUC

For decades PGW was the only major Pennsylvania gas utility not regulated by the state utility commission; rates were instead reviewed by the Philadelphia Gas Commission, a body of Council appointees. State law moved PGW under the Pennsylvania Public Utility Commission, ending the Gas Commission's role as sole regulator. The PUC now sets rates, investigates complaints and reviews safety and customer service.^[3] The change was supported by consumer advocates who sought professional, independent review, and it brought PGW into the same process as other Pennsylvania utilities. See Pennsylvania State Government and Philadelphia.

3 How a rate case works

1. PGW files a request with the PUC to increase base rates; in 2025 the request was $105 million (about 15.7 percent).
2. The PUC suspends the increase and investigates; parties such as the Office of Consumer Advocate, the Office of Small Business Advocate, the PUC's Bureau of Investigation and Enforcement, and advocacy coalitions intervene.
3. Testimony is filed and public input hearings are held.
4. Parties may settle. In October 2025 the PUC approved a settlement of about $62 million (about 9.3 percent), $43 million less than requested, and directed PGW to continue evaluating methane detection, decarbonization and customer assistance.^[3]

PGW says a typical heating customer's annual bill has fallen $259 (18.5 percent) over ten years despite the increase.^[4] Opponents, including environmental and consumer coalitions, argued the proposed increase would raise residential bills substantially and opposed a revenue-guarantee mechanism.^[5] Rate complaints from the Office of Consumer Advocate and the Office of Small Business Advocate were also docketed in early 2026 (dockets C-2026-3060261 and C-2026-3060961).

4 Assistance and complaints

Customers struggling with bills can use the Customer Responsibility Program (income-based payment), PGW's Hardship Fund and the federal LIHEAP heating grants.^[4] Billing or service complaints are filed with PGW first; if unresolved, customers can contact the PUC's consumer services bureau. Gas leaks and smells of gas should be reported immediately to PGW's emergency line and 911.

5 Climate and sale debates

PGW is central to debates over decarbonization. The Office of Sustainability goal of carbon neutrality by 2050 implies reducing natural gas use, while PGW argues gas remains the most affordable heating option. In the past the city explored selling PGW (a proposed sale of PGW to UGI Corporation was negotiated by the Nutter administration but was not approved by Council and lapsed in 2014), and workers and consumer advocates have opposed privatization. Utility bills also feature in tenant disputes; see Tenant and Housing Advocacy Groups.

See also: Philadelphia Water Department, Philadelphia Taxes, Organized Labor in Philadelphia.

References

1. Philadelphia Gas Works, pgworks.com (about PGW and ownership).
2. Reporting and filings identifying Seth Shapiro as PGW President and CEO, 2026.
3. Pennsylvania Public Utility Commission, press release, "PUC approves rate case settlement with Philadelphia Gas Works," October 9, 2025, puc.pa.gov.
4. Philadelphia Gas Works, "PGW base rate case settlement approved," pgworks.com.
5. PennEnvironment and PennPIRG, coalition testimony opposing PGW's proposed rate hike, 2025.