Friday, October 24, 2014

Natural pass: Council stalls on PGW sale



STEP ON the gas already. That was the feeling among a few in City Council when polled yesterday about the stalled sale of PGW.

There had been talk for weeks that Council President Darrell Clarke would schedule hearings on the sale of the largest city-owned gas utility, but yesterday's meeting came and went - once again - with no action.


"This is the way we do our business," Clarke said yesterday.

"If there is, in fact, a notion that somehow there's a deliberate attempt to slow this process down, it's totally untrue."

Mayor Nutter is upping the pressure. He said the time is now to take action.

"I think we're at a point where, clearly, the time has come for a public discussion and debate," the mayor said. "You'll have proponents. You'll have opponents. But the only way that happens is to have a bill introduced, have a public hearing, let people testify, and then do what legislators do - vote."

Clarke has had time to review the analytical report by Concentric Energy Solutions, the company paid $425,000 in taxpayer money to dissect the deal. Those findings were ready in August. He said Council members have been briefed, but some are less sure than others.

"I haven't seen it," said Councilwoman Jannie Blackwell.

"I went to a briefing. I know that in general, people don't seem interested in the sale."

Councilwoman Maria Quinones-Sanchez said it was urgent to have an open, public discussion on the matter, which requires the approval of City Council and the Philadelphia Gas Commission.

"There's a lot of data and information that comes to the table that's not part of a traditional review," she said.

"That's why it's important that we quickly have hearings so that we can have the public discussion that a global deal like this deserves."

Councilman Curtis Jones Jr. gave Clarke the benefit of the doubt.

"I think he's trying to do his best to evaluate all options," Jones said. "Now, at the end of the day, when you have the largest municipal sale in the country, you have to give it the light of day to be evaluated."

Clarke yesterday denied any foot-dragging, but said he's being thorough and meticulous.

"Every time you look at a document as complicated as this, you always have questions," he said.

"We want to make sure that all the questions are answered and whatever decision is made should be made based on knowledge and a clear understanding of the proposal and its impact for the city and its citizens."

UIL Holdings Corp. has offered $1.86 billion for PGW. It has promised to replace bad pipes, protect the jobs of the existing workers and maintain programs for low-income residents and seniors. Nutter said the sale would put a half-billion dollars in proceeds into the city's beleaguered pension fund.

"This is a great deal all the way around," Nutter said.

"It was always expected that City Council would take a certain amount of time for due diligence. . . . Clarke left me with the impression that sometime this week we could get some detailed information. As of today, I have not received anything."

Council has five more meetings scheduled this year, at the end of which UIL could bow out of the deal.

Source: Philly.com

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