Standard&Poor's 'BBB' underlying rating (SPUR) on Philadelphia Gas Works' (PGW) Ordinance 1975 and 1998 senior bonds, and its 'BBB-' SPUR on PGW's 1998 Ordinance subordinated bonds remain on CreditWatch with negative implications where they were placed July 20, 2000, despite the favorable ruling from the Pennsylvania Public Utility Commission (PUC) granting approval of a $36 million emergency rate relief. The PUC approval results in a permanent base-rate increase of about $69 million over the rates prevailing in July 2000. PGW, the largest municipally owned gas utility in the U.S., purchases, sells, and distributes gas to more than a half-million customers within the city of Philadelphia. At fiscal year-end August 2001, PGW had about $900 million of debt outstanding.
