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Old 11-08-2004, 04:36 PM
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Default PGW - Opinions on their new 'Get Tough' attitude

Quote:
Posted on Mon, Nov. 08, 2004
PGW MESS: PIN THE TAIL ON THE DEMON

THERE'S A BETTER WAY TO FIX THE UTILITY MESS

OUT OF the mess that is Philadelphia Gas Works has grown a popular game to try to explain the utility's problems. It's called pin the tail on the demon, and you've seen it being played if you've heard any of the following:

Deadbeats are killing PGW by continuing to scam the system.

The Public Utility Commission ties PGW's hands too rigidly and keeps it from collecting bills or shutting off people who don't pay.

PGW is still trying to climb out of a long legacy of poor operations and corrupt management.

The city bleeds PGW dry by insisting on taking its $18 million annual fee.

The state is at fault for not funding Low Income Home Energy Assistance Program (LIHEAP).

While there may be truth in all of these statements, the problem is that none is the single truth that can explain or solve the PGW problem - a problem that is now defined as a debt of over $1 billion, facing a winter predicted to be especially cold, and gas prices at an all-time high. This is a new disaster in the making.

Due in part to the loosening of some restrictions by the PUC, PGW has begun to more aggressively shut off nonpaying customers, and predicts that 20,000 customers will be shut off this winter.

When do we call the National Guard?

PGW can't afford to bankroll customers who can't afford its gas, but we can't afford to deny people essentials like heat just because they're poor. This is the rock and a hard place that PGW too often finds itself between.

Trying to get out of that hard place, PGW is banking on a number of things. One of them is Senate Bill 689, in which the Legislature is trying to loosen up more regulatory restrictions that keep PGW scrambling for solvency. The bill would override the PUC and allow PGW to collect larger deposits before signing up customers, whatever their circumstance. The bill would also raise the income limit on who is protected from shut-off, and allow PGW to shut off more people.

This is, at best, a half-step solution, even though PGW predicts an additional $5 million in its coffers if the bill passes. While we have urged the loosening of some PUC restrictions and the tightening up of PGW's collections, and we think the PUC could be more helpful to PGW in its attempt to collect on its delinquent accounts, we still prefer the formal controls and independence that the PUC has in place, like public hearings, to make sure the public interest is protected. (One telling aspect of the bill: it imposes a fee of $40 for filing a formal complaint.)

We urge the Legislature to dump Senate Bill 689 and instead write legislation that would fund LIHEAP, the federal program that provides heating assistance to the poor, at the state level. We're only one of two cold-weather states that don't.

Secondly, we urge Gov. Rendell to step in and hold an energy summit that would bring all the players together: PUC, PGW, the city, the Legislature, and other interested parties who will all have to deal with the fall-out from high gas prices, a cold winter, and a struggling utility.

Instead of creating a new demon to try to explain away the problem, let's get all the demons together in a single room and not let them out until they solve this.
The above is from today's DN editorial.
http://www.philly.com/mld/dailynews/10126233.htm

I was curious about various Philly blogger's opion on PGW's new get tough policy. On the one hand repeated incredibly frustrating interactions with PGW have convinced me that PGW is a veritable poster child for a mismanaged, top-heavy city-owned bureaucracy, originally established as a patronage factory.

On the other hand, when I read about all the new shutoffs, I can't help but imagine a veritable tidal wave of kerosene and electrical space heater caused fires breaking out in the poorer sections of town this winter.

I am curious about both people's opions of the shut-off policy and how we should solve PGW's debt problems (and high rates) in general.
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Old 11-08-2004, 05:05 PM
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Default The fix

The answers are there, it's the lack of political leadership!

The fix is that the public utility should be allowed to operate more like a business, and LIHEAP should be fully funded.
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Old 11-09-2004, 01:19 PM
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It is about time that PGW began to "get tough". The situation now is untenable. The gas company is not a social agency. It must operate like a business in order to generate sufficient revenue to keep the system in good repair, to be able to deliver the service, to pay the employees, and yes, to make a profit.

The nature of this business, like medicine, does set it aside in some ways. Regulators and politicians have made it difficult or even impossible to get rid of non-paying customers during the winter. Perhaps that is a decent and humanitarian thing to do but someone is paying for that. There is the LIHEAP program which is not enough.

PGW can only respond to its shortfalls by raising the rates on those customers who do pay and it has done so, often hobbled by the PUC. But is it fair to excessively charge its paying customers in order to subsizide those who do not pay? I think not since the burden of subsidy is falling only on PGW customers, not those individuals and companys using other heating fuels.

The situation is a nasty one. Hopefully PA politicians will come up with a sensible plan. But that is hoping a lot.
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Old 11-09-2004, 01:25 PM
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Is there no alternative to PGW? Just wondering.
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Old 11-09-2004, 02:00 PM
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Yes, private heating oil companies, if you are willing to switch you furnace to a dirtier, less efficient burning fuel. I have some friends who invetigating retrofitting oil furnaces and boilers to burn old frying oil, just like people are doing biodiesel conversion for cars.

But if you use natural gas, PGW is a city owned monopoly.
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Old 11-09-2004, 02:06 PM
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I think we went down this road before but I fully believe that much of PGW's complaining about deadbeats is a smoke screen to hide their own incompetence.

I've mentioned on the blog before that I was one such "deadbeat." PGW reported me to my credit agency for just over $6 that they claimed I owed. I knew I didn't owe it but I paid it anyway to clear my credit so that I could get an apartment. A few months later, I received a refund check - they admitted their error.

I've also mentioned horror stories I've experienced on behalf of clients, many of them elderly, who have been subjected to rude PGW workers, incorrect readings, etc. One of my clients was owed hundreds of dollars after he died because PGW's "estimated" readings were consistently wrong. Many of the elderly are similarly situated and PGW won't respond.

My "Next Day Air" package to PGW's billing on behalf of a client got a reply - over two months later. I called the PUC to complain and they said (no kidding) that they receive so many complaints about PGW that they can't address all of them and I should just understand that it wouldn't be resolved. It wasn't. My client ended up paying the overage rather than fight.

We just sold our building in July. I had to call PGW three times to get them to switch off the gas once it was vacant. Each time, PGW had "no record" of my call.

And on and on.

PGW is the most incompetent agency in the City, and that's saying a lot. Their execs, as we well know, get paid well and take little perks with them as they go. I think the average bill is $40-50/month or something. How many of those does it take to add up to the millions squandered by the execs and lazy, incompetent employees?
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Old 11-10-2004, 07:09 PM
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if I owned I'd switch to electric even though it's generally more expensive (outside PGW's svc area) b/c at least you know what you get with PECO. turning off everything furing the day seems to sav money. with PGW there is little rhyme or reason it seems. plus the surcharge for deadbeats makes me angry. I used to pay $35/mo just for my stove.
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Old 11-10-2004, 09:05 PM
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There is gas deregulation in the Commonwealth of Pennsylvania. Unfortunately, it doesn't work.

As of fall 2003, you have the power to purchase gas through a competitor to PGW. Unfortunately, now suppliers have stepped forward.

Same in PPL, one in PECO.

Its' pretty hard to find a deregulated competitor when none exist.

And El, was curious about competitive pricing. You say that Peco is more expensive. Really.

Any one else out there have experience with other area gas companies (since the pipeline charges, etc. would be comperable). Gas companies using other pipelines would be different so they don't interest me.

But, anyone have experience with PPL, PECO, First Energy (or UGI), AND PGW.
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Old 11-10-2004, 09:23 PM
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Quote:
Originally Posted by chrissayer
There is gas deregulation in the Commonwealth of Pennsylvania. Unfortunately, it doesn't work.

As of fall 2003, you have the power to purchase gas through a competitor to PGW. Unfortunately, now suppliers have stepped forward.

Same in PPL, one in PECO.
Why not?

I was part of the group that was given a chance to switch to PECO's competitor -- whoever they are, I don't even remember. I suppose I saved a bit of money, but my electric bills are generally low. Point is, it can happen.

Something needs to be done. PGW is a running sore on this city.

tmcgeee
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Old 11-10-2004, 09:31 PM
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That was electric dereg . . . a horse of a different color. And totally different legislation.

And that hasn't worked very well either (check out the statistics on the Pa. Consumer Advocate's web site - most electric suppliers have left.)

Under electric dereg, the only residential choices are for "environmentally friendly" stuff like Green Mountain Energy. It will be interesting to see what happens when the caps come off over the next few years.

In gas dereg, the only company in the Peco service area is ANC - and I don't know what sort of prices they offer compared to Peco.

No competitors have come forward in Philadelphia.
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