Philadelphia Gas Works
| Company type | Municipal utility |
|---|---|
| Industry | Natural gas utility |
| Founded | 1836 |
| Founder | Samuel V. Merrick |
| Headquarters | Philadelphia , United States |
Area served | Philadelphia, Pennsylvania, United States |
| Products | Natural gas distribution |
| Owner | City of Philadelphia |
Philadelphia Gas Works (PGW) stands as the largest municipally owned natural gas provider in the United States. The utility's construction was finalized by engineer Samuel V. Merrick on January 22, 1838, and it has been operational since the 19th century.
History
After the city ordinance authorized its creation in 1835, Philadelphia Gas Works commenced service in 1836, initially illuminating Second Street with 46 gas lamps. The facility’s construction was completed two years later under the direction of Samuel V. Merrick.
Ownership of PGW transferred to the city government in 1841. In 1897, operational responsibilities were assigned to the United Gas Improvement Company, now known as UGI Corporation. By the 1940s, PGW was delivering gas to approximately half a million customers, providing nearly all of Philadelphia’s supply—primarily carbureted water gas. The City assessed PGW’s value at more than $100 million in 1947.
The arrangement with UGI and similar contracts persisted until 1972. That year, Mayor Frank Rizzo and City Council appointed the nonprofit Philadelphia Facilities Management Corporation (PFMC) to manage PGW starting in 1973. PFMC is governed by a seven-member board appointed by the mayor, overseeing daily operations through an executive leadership team including a CEO, COO, and CFO.
In 2014, the City proposed selling PGW to UIL Holdings Corporation for $1.86 billion; however, this transaction was halted after City Council rejected approval.
In response to Philadelphia’s commitment to achieving net zero carbon emissions by 2050, PGW leadership initiated efforts in 2021 to identify methods for reducing its environmental impact.
By 2022, state regulatory authorities approved PGW’s proposal to upgrade its infrastructure by replacing more than 1,000 miles of outdated gas mains installed prior to World War II, aiming to enhance system reliability and modernize service delivery.
Awards
PGW received the Marketing and Sales Award from the American Public Gas Association in 2010. The previous year, PGW introduced a marketing campaign designed to emphasize the benefits of natural gas to both consumers and the broader community.