PGW Sale Hopes Dim

Photo | Jeff Fusco

Photo | Jeff Fusco

The proposed sale of Philadelphia Gas Works to a private Connecticut company — a sale long considered on life support, at best — is one step closer to outright death.

UIL Holdings said Thursday that it is ending its pursuit of the Philadelphia utility; it will not renew its option to buy when that agreement ends at the end of December. The announcement came after Thursday’s City Council meeting, considered the last chance to jump-start the process to result in a sale by year’s end.

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Mayor: Council Is Fibbing! Council: Nuh-Uh!

Photo | Jeff Fusco

Photo | Jeff Fusco

So City Council has just released a rebuttal to a rebuttal to a letter summarily rejecting the sale of PGW. At least, I think that’s where things stand. It seems like everyone has a lot to say. Maybe — and I’m just spitballing here — a hearing on the proposed sale would have been a good place to air some of these issues out?

There will be no hearing on the sale, of course, which is at the root of this dysfunctional display. After two years, $21.3 million spent by the leading bidder, and two expensive reports from different analysts, Mayor Nutter figured he would at least get a Council hearing on the potential sale. Council President Darrell L. Clarke and the rest of council leadership — in what increasingly looks like a big political misstep — figured if council didn’t want the deal, why waste time with hearings?

You’ll find Council’s latest salvo below, as well as the Nutter administration’s effective, if dense, six pages of spin on the sale, which was first published last week by the Philadelphia Business Journal.

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Analysis: What the PGW Flop Means

Photo | Jeff Fusco

Photo | Jeff Fusco

Philadelphia’s bid to become the nation’s next great energy hub is a stool built on three legs. The pitch goes a little like this.

“Hey petrochemical and energy behemoths, Philly is the city that loves you back. 1) We’re just 100 miles from the Marcellus Shale, the biggest gas reserve in the nation. 2) We’ve got infrastructure! Ports. Rail lines. Refineries. Proximity to markets. 3) The political climate is warm and welcoming. Come on down. You’re going to get those approvals, you’ve got a political class anxious for jobs and economic development. No undue hassles here!”

On Monday, in rejecting the privatization of the city-owned Philadelphia Gas Works, City Council gave a swift kick to that third leg of the stool.

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Nutter Still Wants PGW Sale Hearing

Photo | Jeff Fusco

Photo | Jeff Fusco

Though seemingly dead for good after a City Council announcement on Monday, there may still be life in the proposal to sell Philadelphia Gas Works to a private company.

Mayor Nutter, for example, hopes the deal can be resuscitated — saying the proposal should’ve received public hearings before a decision was made.
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City Council Spending $20K on Ads Defending Delay on PGW Sale

In February, Mayor Michael Nutter announced the sale of PGW for $1.86 billion. But City Council has questions, and didn’t review the sale before the summer recess. That delay matters: Since Council hasn’t taken any action yet, UIL Holdings can back out of the proposed sale after July 15.

Now, of course, the latest twist: City Council is spending $20,000 on radio ads defending the delay. Wait, what?

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Council Will Consider PGW Sale on Its Timeline — Not the Mayor’s

CBS Philly reports that the City Council will adjourn for the summer on June 19th without deciding whether to approve the sale of Philaelphia Gas Works to a Connecticut company — even though the company can, under contract, walk away from the deal if it’s not finalized before July 15.

Council President Darrell Clarke said that deadline was agreed to by Mayor Nutter and the company, UIL Holdings. The council had no input. And that’s not the only problem, he says.

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