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City treasurer, PGW officials back reauthorization of $150M commercial paper program
Summary
City Treasurer Jackie Dunn and Philadelphia Gas Works officials told the finance committee bill 260112 would reauthorize a commercial paper program (up to $150 million outstanding) for PGW working capital; Treasury and PGW said the program preserves short‑term liquidity, PGW is rated single‑A, and officials have received five RFP responses.
Jackie Dunn, Philadelphia’s city treasurer, told the Committee on Finance she supports bill 260112, which would authorize the city and Philadelphia Gas Works (PGW) to continue issuing gasworks revenue commercial paper notes in an aggregate principal amount not to exceed $150 million outstanding at any time, extending the current authorization for an additional five years.
Dunn said proceeds would be available for PGW working capital demands and to pay issuance costs or capitalized interest as needed. PGW witnesses said the working capital element has not been used since 2009 but is a prudential tool that preserves access to short‑term financing at competitive rates in the event of an unforeseen liquidity need. Officials told the committee PGW is currently rated single‑A and the annual facility fee on the current program was 12 basis points (quoted from a 2021 arrangement); they also said they received five responses to the current RFP for facility providers.
Committee members asked whether the program affects the city's overall debt service; PGW representatives said the authorization is specific to PGW and would be tracked in PGW financial reporting and counts toward PGW’s debt limits, not the city’s general obligation debt service. Dunn and PGW representatives requested a favorable recommendation and asked that council suspend rules to permit first reading at the next council session.
The committee reported bill 260112 favorably by voice vote and asked for rules to be suspended for first reading. The transcript records the committee’s favorable reporting but does not record a roll‑call tally of individual member votes.
