Philadelphia's plan to sell gas utility is dead

AP News
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Posted: Oct 27, 2014 6:45 PM

PHILADELPHIA (AP) — Philadelphia Mayor Michael Nutter is calling the City Council's decision to effectively kill the proposed sale of the city's gas utility a "cop-out."

Council President Darrell Clarke says there was "no appetite" for the proposed $1.86 billion sale of Philadelphia Gas Works to UIL Holdings Corp.

Nutter said in March that the sale would inject $424 million into the city's distressed pension fund, freezing rates for three years and maintaining low-income and senior discount programs while safeguarding pensions.

Union leaders and several environmental organizations opposed the idea.

Nutter told reporters that the council's decision was "quite possibly the biggest cop-out that we've seen in recent legislative history in Philadelphia."

PGW is the nation's largest city-owned gas utility. It has more than half a million customers and more than 1,600 employees.