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Finance committee reports PGW FY27 capital budget; public advocates call for alternatives and transparency on LNG plan
Summary
The committee reported favorably on PGW's FY27 capital budget (bill 260,511) and a FY26 amendment (260,512). PGW sought roughly $208 million for FY27 capital projects, while advocates urged scrutiny of a proposed Port Richmond LNG project and asked council to demand analysis of non‑fossil alternatives and greater transparency.
Philadelphia Gas Works officials presented the utility’s FY27 capital budget and a FY26 amendment to the Committee on Finance. Melanie McCoughtry, PGW senior vice president and chief of staff, said PGW's FY27 capital request includes roughly $208 million focused on core gas processing, distribution and field services and noted infrastructure investments that support advanced metering and revenue opportunities.
Jamila McClendon, executive director of the Philadelphia Gas Commission, said the commission had reviewed the proposal in public sessions and unanimously endorsed an FY27 capital authorization in the amount requested by PGW, with constraints and conditions reflected in the commission’s resolution.
Public reaction and key debate: multiple public commenters urged the committee to withhold approval of large fossil fuel investments pending thorough study of alternatives. Speakers and advocates pointed to a proposed replacement or expansion of PGW’s Port Richmond LNG facility (a project that previously surfaced at an estimated cost north of $180 million) and said the Gas Commission had temporarily removed or delayed that project pending further study. Concerned groups asked council to require PGW to analyze non‑fossil alternatives (for example, geothermal or demand‑reduction strategies), to be transparent about enrollment and outreach for low‑income programs, and to provide a timeline for the geothermal feasibility study.
Direct quote: "Before council considers approving spending almost $200,000,000 on a fossil fuel infrastructure project, we really need a thorough examination of alternative strategies," said Mitch Shannon, a public commenter and longtime energy advocate.
Committee action: bills 260,511 and 260,512 (as amended) were reported from committee with a favorable recommendation and the committee moved to suspend rules to permit first reading at the next council session.
Next steps: Council will consider the ordinances at first reading; advocates and council members signaled plans for follow‑up oversight on specific capital projects and on PGW's analysis of alternatives.
