No one wants to compete with PGW - Since Natural Gas is Cheap, and No One in Philly Pays Their Bill

PGW's campaign to promote Gas Choice is the culmination of an effort that began when the utility went to the PUC in 2008 for an emergency rate increase amid the nation's financial meltdown.

The commission granted the rate hike on the condition that PGW remove barriers to competition. That launched negotiations toward a 2013 settlement between PGW and gas suppliers, consumer advocates, and the PUC.

The settlement required PGW to upgrade its billing system so it could take over billing and collecting on behalf of suppliers. PGW also agreed to educate customers about competitive markets.

PGW customers would pay for 90 percent of the $1.7 million cost of system upgrades and for half the $1 million education campaign. Suppliers would pay for remaining implementation costs through a 2 percent administrative "discount" PGW assesses to all funds it collects.

But suppliers say they are put off by the discounts for administrative costs and uncollectible accounts.

Under the settlement, PGW is allowed to discount the amount it collects by 4.68 percent, reflecting its rate of uncollectible residential billings. Adding in the 2 percent administrative discount, a supplier would receive only 93.3 cents for every dollar it billed.

Can we get more background on the financial meltdown? It may have something to do with why no one wants to pay their fucking bill.

/r/philadelphia Thread Link - philly.com