Philadelphia Gas Works

Division: Governmental


Philadelphia Gas Works (PGW) is the nation's largest municipally-owned natural gas utility with 6,000 miles of gas mains. PGW provides gas service to a half million residential customers and 19,000 industrial and commercial users within the City of Philadelphia.


PGW was in imminent danger of defaulting on its $800 million in public bonds—a result, in part, of its operating without senior management in place for a number of years.


Phoenix Management Services, Inc. was appointed by the City of Philadelphia to: 1) develop a plan to revitalize PGW, 2) take over the day-to-day operations of the utility, and 3) continue its stewardship until permanent senior management could be retained. Phoenix placed a team of five full-time professionals on-site at PGW, assuming the positions of Chief Executive Officer, Chief Operating Officer, Chief Financial Officer, Head of Customer Affairs, and Head of Strategic Planning. The team immediately tackled the financial and operational crises confronting the $550 million Company, while also managing the delicate political sensitivities presented by a government environment. The steps initiated, recommended, and implemented by Phoenix were aggressive, but necessary to restore PGW’s financial health and avoid bond default. These steps also positioned PGW for the impending deregulation of the natural gas industry.