August 20, 2025
Molly McVety/PhillyVoice
A coalition of climate and environmental advocacy groups under the name Energy Justice Advocates gather in front of City Hall on Wednesday to celebrate a joint settlement reached with PGW.
Philadelphia gas customers will likely see increased energy bills starting this fall, but a settlement reached between the utility company and environmental advocates will reduce the proposed hike, set up a public engagement process and invest in assistance programs geared toward low-income users.
A coalition of community groups and elected officials gathered at Philadelphia's City Hall on Wednesday morning to celebrate the newly announced agreement, which will be subject to approval from the Pennsylvania Public Utility Commission before changes are finalized in November.
In February, PGW filed a request with the PUC to increase rates across its customer base by $105 million annually. It also requested that the PUC approve a "weather normalization" charge to stabilize customers' bills and make them more predictable.
Energy Justice Advocates, which consists of climate and environmental advocacy groups, engaged in the PUC's legal process as an “intervenor,” or a party to join the case, to fight for lower customer rates. The group announced its joint settlement with the utility Wednesday morning.
The agreement includes reducing the total proposed increase from $105 million to $62 million and removes the company's revenue guarantee clause, which would have charged customers more if PGW's revenue fell short. Limits may also be placed on the weather normalization charge and the budget for low-income weatherproofing programs are suggested to increase to help customers limit their energy usage during extreme conditions.
Additionally, the agreement calls for PGW to convene two public engagement meetings within one year of the PUC's approval where community members can contribute feedback to the utility's plan for reducing greenhouse gas emissions in the city.
According to the filing, monthly residential customer rate would still increase by $1 — to a proposed $17.25 — for a 6% increase. If approved, these new rates would be implemented by Nov. 28.
"This proposed settlement represents an important step toward a clean energy future for Philadelphia and it provides critical protections for Philadelphians against increasing energy costs," Patrick Houston, campaign manager with HERE 4 Climate Justice, said during Wednesday's rally. "No one should have to deal with the mental and physical stress of inadequate energy and sky-high energy bills at this time. ... We understand there is so much more work to be done for so many Philadelphians that are struggling right now."
A representative with PGW and PUC acknowledged the proposal but declined to speak in depth on what it represents for the company or its nearly 500,000 customers in Philadelphia.
"PGW believes that the Settlement is in the best interest of PGW and its customers and provides customer service enhancements that will benefit low-income and residential customers," according to the PGW website.
