Report suggests PGW upgrade infrastructure soon

PHILADELPHIA (WPVI) -- The authority that oversees Philadelphia Gas Works released a new report Tuesday suggesting ways PGW can upgrade its aging infrastructure - sooner than later.

The Public Utility Commission's report suggests a bunch of ways the PGW can speed up the replacement of its aging pipeline infrastructure, and it will more than likely include raising rates for its customers.

PUC Spokesperson Nils Hagen-Frederiksen says, "They're degrading and it is concerning."

Hagen-Frederiksen is talking about the approximately 3,000 miles of PGW's underground pipes, approximately 1,900 of which is classified as "at risk."

And the reason is quite simple - PGW's infrastructure is old and antiquated.

Hagen-Frederiksen says, "50 percent of the cast iron pipe in Pennsylvania is in Philadelphia. And we're dealing with trends that are concerning."

Back in 2013 there were 6,200 PGW gas leaks reported, and 3,122 of them were labeled hazardous.

One year later, the number of reported leaks rose to 7,600, with 3,448 considered hazardous.

And so today, the PUC released a report on the situation that includes seven suggestions for speeding up the process by which PGW's infrastructure is fixed, with the goal of avoiding potential explosions like the one that rocked the area near the corner of Toorsdale Avenue and Disston Street four years ago.

Now while PGW officials admit that safety is their number one concern, they're also concerned about how this multi-million dollar upgrade may affect the rates they currently charge their customers.

However, that's not to say that PGW customers will be footing the entire bill.

The report also suggests that the city's only utility borrow some of the money and curb the $18 million payment PGW makes to the city every year.

PGW officials say the time is right to upgrade the system.

Barry O'Sullivan from PGW explains, "When it was first installed, cast iron and some of the other materials, including the uncoated steel that was used in the 60's, were state of the art. However, new materials have been developed in the meantime, new processes have been developed in the meantime."

O'Sullivan continues, "We want to make sure that as those materials and processes become available and become widely adopted in the industry that we're certainly upgrading our infrastructure to keep pace with those developments."

The Utility commission emphasizes that the report does not offer seven commandments, but rather seven suggestions.

And PGW has certainly been receptive to the commission's input thus far.

Read PUC's full report here: http://www.puc.pa.gov/NaturalGas/pdf/PGW_Staff_Report_042115.pdf