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Josephs to PUC and PGW: Increasing rates is not the solution

PHILADELPHIA, April 13 -- Concerned that Philadelphia Gas Works customers cannot afford another increase in their utility bills, state Rep. Babette Josephs recently testified before the Public Utility Commission and offered her own solution to the problems facing both PGW and its customers.

As a PGW customer herself, Josephs said her own utility bill is high even though she keeps the heat low, so she understands how people can struggle to pay their bill. But she said increasing rates by 11 percent is not the answer.

"Raising the rates will make the problem worse, because more people will not be able to pay," Josephs testified. "There will be more homelessness and the cost to the city will be astronomical. PGW and the PUC must have a more holistic view. PGW is the most important, in some ways virtually the only, energy source for our city. If the city doesn't prosper and grow, if customers who are on limited incomes cannot pay, the utility suffers in the long run.

"The overwhelming majority of people who are not paying on time now or have suffered disconnects are people who simply can't afford the bills. I am a co-sponsor of legislation that would help people pay their bills by extending their payments over time in order to regain service and reduce the excessively high reconnect fees," Josephs said.

"I cannot be for raising rates when these fees are so high and when payment arrangements are impossible to make."

Josephs has co-sponsored H.B. 824, which would require more reasonable payment plans for customers to pay outstanding utility bills to get service restored, rather than requiring the entire outstanding balance as currently is the case; cap the cost of utility reconnection fees at $50 and the maximum security deposit for reconnection at $100; and require utility companies to accept grants from the Low Income Home Energy Assistance Program as utility payments during the winter.

"I do not have the answer, but I have a partial solution and I offer my help," Josephs said. "I will work to increase state dollars for low-income heating programs; I will do any kind of publicity the company thinks will be helpful to bring more people to limited income assistance programs."

Josephs made her remarks at the final of three hearings recently held by the PUC to gather input on PGW's proposed 11 percent rate increase.