Can Risk-Averse Phila. Gas Works Successfully Expand LNG Plant?

Philadelphia Gas Works (PGW) was up for sale, a winsome suitor was found (UIL Holdings from Connecticut) and the deal to sell the nation's largest publicly-owned gas utility was obliterated by a corrupt City Council. We won't recount the history (see our stories here). With the $1.86 billion deal now dead, PGW is moving on and trying to act and behave like a private sector company--except it's not a private sector company. Last week they announced a 12-day "open season" to gauge interest in expanding their liquefied natural gas plant, a plant that would be fed by Marcellus Shale gas (see Phila. Gas Works Launches 12-Day Open Season to Expand LNG). However, LNG is not regulated like the delivery of natural gas, PGW's main "business." That is, there's risk involved--and the people who bear the risk for PGW, being a municipal-owned utility--are the ratepayers, not the investors/owners, which would be the case if PGW were a private sector company. Are Philly residents willing to risk higher rates if PGW bungles the LNG expansion?...

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