PRINTER'S NO. 4211
No. 819 Session of 2004
INTRODUCED BY PETRI, KELLER, BUTKOVITZ, KENNEY, J. TAYLOR,
McGEEHAN, LEDERER, DONATUCCI, YOUNGBLOOD, HORSEY AND COHEN,
JUNE 29, 2004
REFERRED TO COMMITTEE ON RULES, JUNE 29, 2004
A RESOLUTION
1 Directing the Consumer Affairs Committee to study financial
2 problems of Philadelphia Gas Works.
3 WHEREAS, Philadelphia Gas Works is a public utility supplying
4 natural gas to an estimated 505,963 commercial and residential
5 customers in southeastern Pennsylvania; and
6 WHEREAS, The General Assembly's enactment of 66 Pa.C.S. Ch.
7 22 (relating to natural gas competition) conferred regulatory
8 jurisdiction of Philadelphia Gas Works to the Pennsylvania
9 Public Utility Commission effective July 1, 2000, to address its
10 financial and managerial problems; and
11 WHEREAS, Despite the transfer of regulatory power to the
12 commission, Philadelphia Gas Works' financial woes continue to
13 exist as evidenced by the estimated $125,000,000 in the
14 utility's short-term debt and the fact that 60% of the utility's
15 receivables are more than 90 days in arrears; and
16 WHEREAS, By the end of its 2003 fiscal year, Philadelphia Gas
17 Works began to experience a serious drop in collections of
1 delinquent accounts and was only collecting 86.5 cents on every
2 dollar as compared to the normal collection of 92 cents on every
3 dollar; and
4 WHEREAS, As of March 31, 2004, there were 185,925 residential
5 Philadelphia Gas Works customers with accounts in arrears
6 totaling $106,069,314; and
7 WHEREAS, On May 13, 2004, the Appropriations Committee of the
8 House of Representatives requested from Philadelphia Gas Works a
9 comprehensive listing of each delinquent residential natural gas
10 customer with an account over $1,000 in arrears, and that
11 request was denied; and
12 WHEREAS, Philadelphia Gas Works' debt per customer is an
13 estimated $2,000; and
14 WHEREAS, Only an estimated 57,600 customers are enrolled in
15 Philadelphia Gas Works' customer assistance programs, which
16 provide alternative payment plans to traditional methods of
17 collection for low-income and troubled customers; and
18 WHEREAS, The average bill per family per year in Philadelphia
19 has increased 60% in two years from approximately $900 in 2002
20 to approximately $1,450 as projected in 2004; and
21 WHEREAS, Philadelphia Gas Works filed a petition with the
22 commission requesting that, among other things, it be allowed to
23 impose a surcharge on all customers to recover the costs
24 associated with the increasing number of nonpayments by
25 customers with accounts in arrears; and
26 WHEREAS, It is unreasonable for Philadelphia Gas Works to
27 expect customers who are current on their bills to pay
28 additional assessments to make Philadelphia Gas Works whole; and
29 WHEREAS, It is in the public interest for the General
30 Assembly to ensure that current law regulating public utilities
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1 works in favor of the customers and the public interest to
2 ensure the safe, reliable and affordable delivery of natural
3 gas; and
4 WHEREAS, The General Assembly should make every effort to
5 acquire as much information as possible in order to remedy this
6 situation; therefore be it
7 RESOLVED, That the Consumer Affairs Committee hold hearings
8 and take testimony regarding Philadelphia Gas Works'
9 uncollectibles and its plans to reduce those uncollectibles as
10 well as its rationale for spreading charges for uncollectibles
11 among customers whose bills are current; and be it further
12 RESOLVED, That the committee further review the current and
13 future plans of the Pennsylvania Public Utility Commission
14 regarding uncollectibles at Philadelphia Gas Works; and be it
15 further
16 RESOLVED, That the committee be empowered to issue subpoenas
17 under the hand and seal of the chairman commanding any person to
18 appear before it and answer questions touching matters regarding
19 Philadelphia Gas Works and its operations in this Commonwealth,
20 including uncollectibles and regarding the role of the
21 commission in developing and approving rates, policies and
22 procedures relating to Philadelphia Gas Works; and be it further
23 RESOLVED, That the committee report back to the House of
24 Representatives with any recommendations for changes in law by
25 November 24, 2004.
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