PGW has them steamed

By Tom Waring
Times Staff Writer

Debra David, of Olney, was shocked when she opened a recent bill from Philadelphia Gas Works.
The amount due for the month was $524.70. David and her husband are used to paying about that amount for a monthly mortgage payment, not to heat their West Tabor Road home.
Citing, in part, PGW’s monopoly on natural gas distribution in Philadelphia, David described the city-owned utility’s billing practices as "legalized theft."
"The citizens of this city are being robbed," she said.
David was one of 21 people who testified last week at a public hearing at George Washington High School’s auditorium. The state Public Utility Commission held the hearing, conducted by Administrative Law Judges Cynthia W. Fordham and Angela T. Jones, to accept public comment on a proposed rate increase by the gas works.
In December, PGW — which serves about 496,000 customers — filed to increase the base rate by about $107 million. Under the proposal, the average annual residential bill would increase from $1,727 to $1,887, or 9.3 percent.
The PUC will make a final decision by Sept. 28.
PGW regulatory counsel Dan Clearfield and corporate communications director Doug Oliver were on hand to defend against the anticipated criticism by the public. They noted that the utility hasn’t increased its base rate since 2002 and that its bill collections have increased in recent years to 97 percent.
Oliver said PGW is "absolutely sensitive" to the impact the increase would have on customers.
Phil Bertocci, an attorney who works with Action Alliance of Senior Citizens and the Tenants Action Group, described the proposed rate hike as "huge."
Many consumers who testified do not qualify for the Low Income Home Energy Assistance Program (LIHEAP), with one urging the PUC not to turn a "cold shoulder" to paying customers.
Al Taubenberger spoke as president of the Greater Northeast Philadelphia Chamber of Commerce. Taubenberger, the Republican mayoral candidate, offered testimony repeated during much of the night — that PGW makes its best customers subsidize deadbeats.
"PGW must streamline its operations and collect overdue bills from irresponsible users before it penalizes the businesses and families who make our city thrive," he said.
Matt Taubenberger, the business leader’s son and an aide to state Rep. George Kenney, told the commission that Kenney opposes the rate hike because the utility repeatedly raises rates that burden people in the Northeast.
City Councilman Frank Rizzo said it wasn’t fair to make paying customers erase PGW’s debt.
Councilman Brian O’Neill opposes the increase because it would affect people who live paycheck to paycheck. He called for a management audit of PGW, adding that no company wants to buy the utility because of its debt.
"Every penny that they’re spending should be analyzed," he said.
State Sen. Mike Stack is skeptical of the increase, pointing out that PGW already has the highest rate for natural gas in Pennsylvania.
The PUC, he said, has an obligation to the public to prevent "frivolous spending" on lawyers, lobbyists and executive bonuses.
"Customers need relief, not an increase," he said.
Members of the general public sided with the public officials.
"We cannot afford it," said Mary Jane Hazell, president of the Somerton Civic Association.
Al Reichardt, of Fox Chase, is eight years away from retirement and plans to drop PGW if it keeps raising rates.
"I will go to propane or oil," he said.
Steve Richman, of Bell’s Corner, had back-to-back bills of $263 and $271. He called that "outrageous" for his modest home on Algon Avenue.
"I’m just floored by the enormity of these numbers," he said.
To keep costs low, Normandy’s John Burke and Somerton’s Selma Brockman keep their thermostats at 67-68 degrees and wear sweaters in the house. Don Staller, of Fox Chase, sets it at 58 to 60 degrees and wears a coat to avoid $400 bills.
Maria Pero, who lives on Susquehanna Road in Fox Chase, thought she would get a break on her bill when she went on a nine-day vacation in February. She turned down her thermostat to 58 degrees.
Still, her bill was $342.70. When she called PGW to complain, a customer service representative told her that, by lowering the thermostat, it somehow caused the heat to turn on.
High gas bills are one reason people move out of Philadelphia, in Pero’s view.
"PGW has a stranglehold on all of us," she said. ••
The state Public Utility Commission will hold two more public input hearings on the proposed rate increase by Philadelphia Gas Works. They will take place on Monday at 1 p.m. and 7 p.m. at Community College of Philadelphia’s conference room c2-28, at 18th and Callowhill streets.
To testify, call the state Office of Consumer Advocate at 1-800-684-6560. Or, fill out a form at www.puc.state.pa.us or write a letter to Pennsylvania Public Utility Commission, Bureau of Consumer Services, P.O. Box 3265, Harrisburg, PA 17105.
Reporter Tom Waring can be reached at 215-354-3034 or twaring@phillynews.com