Philadelphia Gas Works outlines LNG storage, programs and $125 million federal investment to speed main replacements

Melanie McCoughtry, chief of staff and senior vice president of Philadelphia Gas Works, told the House Consumer Protection, Technology and Utilities Committee that the city‑owned utility serves more than half a million customers and is using federal and internal funds to replace aging infrastructure and support low‑income ratepayers.

"We are not an investor owned utility. We are a municipally owned utility, which is extremely unique. We are the largest natural gas utility in the country, and so we serve over over half a million customers," McCoughtry said, describing PGW's customer base as "overwhelmingly residential" and noting the utility employs about 1,600 people, roughly 1,100 of whom are union covered.

McCoughtry outlined three tools PGW uses to manage service: uncover new revenue, cut costs and increase efficiencies, or raise rates. She told the committee PGW collected roughly $700,000,000 in revenue in the last year to pay commodity costs and credited its in‑city liquefied natural gas (LNG) storage for savings to customers. "One of the reasons that we were able to keep prices so low is our LNG facility," she said, and estimated city customers have saved more than $4,000,000,000 because the utility can store gas on‑site.

On infrastructure, McCoughtry said PGW owns about 6,000 miles of underground gas mains and that approximately 1,100 miles remain cast iron. She told members PGW received $125,000,000 from the federal reinvestment act to accelerate main replacement and that the funds will reduce an additional 66 miles of older pipe without passing the immediate cost to customers. PGW is also subject to multiple layers of oversight, she said: the Pennsylvania Public Utility Commission and local city oversight, including mayoral and city council appointments to a gas commission.

McCoughtry described customer assistance and efficiency efforts as significant parts of PGW's work. She said the utility spends about $80,000,000 annually on programs to support financially vulnerable customers and has invested more than $75,000,000 in its Energy Sense weatherization and housing‑stock improvement program. "PGW isn't often viewed this way, but we're probably 1 of the largest social service agencies in the city of Philadelphia," she said.

She also described climate and emissions work: PGW measures emissions across scope 1, 2 and 3 and cited its cast‑iron replacement program and energy efficiency efforts as central methane‑reduction measures. McCoughtry said PGW has launched a pilot feasibility study on geothermal with a Philadelphia school, and said any broader changes need careful study to ensure cost recovery and replicability.

Why it matters: The committee heard details about the operational and financial structure of a large municipally‑owned utility that serves low‑income customers and manages large in‑city LNG capacity. PGW emphasized customer assistance, infrastructure replacement and emission‑reduction programs while warning of constraints on rapid change because of cost recovery and regulatory oversight.

The committee made no formal determination during the informational meeting. Members asked follow‑up questions about methane reduction programs and permitting and restoration costs that can affect project timelines and budgets.