The Philadelphia Gas Works said Friday it will increase its rates for at least the next three months.
PGW said the increase will raise the monthly bill of the city-owned utility’s average residential heating customer by $4.50 beginning Sept. 1. Large commercial, industrial and municipal customers also will see their bills rise, although the amount of the increase will depend on their contracts with PGW.
PGW’s residential gas bills have two components: the supply charge, which is the amount PGW pays for gas with no markup; and the delivery charge, which includes the cost of delivering gas, maintaining the gas distribution system, billing costs and weather adjustments.
The increase includes bumps in both. The supply charge is increasing to $1.60 from $1.49 per 100 cubic feet for residential gas customers. PGW was granted a 1.81 percent increase in its delivery charge late last month by the Pennsylvania Public Utility Commission.
PGW can adjust the supply charge, based on market conditions, every three months, so that rate could change in December.