Standard&Poor's has placed Philadelphia, Pa.'s $794.24 million gas works revenue bonds and $20 million subordinate gas works revenue bonds on CreditWatch with negative implications. The rating action reflects Philadelphia Gas Works' (PGW) very weak cash flows arising from a convergence of budgeting that did not reflect the trend towards warmer winters, historic ongoing problems with high revenue receivables and the faulty implementation of a new billing system. Rate relief is needed by this fall. The tariffs that PGW has filed before the state Public Utilities Commission (PUC) are projected to generate an additional $52 million and increase base rates and monthly charges by 10%. The proposed tariff will increase rates to above average in a service area with
