Title
Authorizing an amendment of the Philadelphia Facilities Management Corporation Agreement to extend the repayment period for temporary financing that the City may provide the Philadelphia Gas Works under certain terms and conditions, and authorizing the extension of the repayment date of a $45 million temporary advance previously made by the City pursuant to such Agreement.
Body
WHEREAS, The Philadelphia Gas Works ("PGW") is in the process of implementing a management reorganization and a financial recovery program in order to benefit ratepayers and residents of The City of Philadelphia; and
WHEREAS, PGW has submitted a plan of cost containment and rate increases to the Pennsylvania Public Utility Commission in furtherance of PGW's financial recovery; and
WHEREAS, On April 11, 2002, the Pennsylvania Public Utility Commission granted PGW extraordinary rate relief in the amount of $36 million dollars, leaving a request for base rate relief of an additional $24 million pending before the Pennsylvania Public Utility Commission; and
WHEREAS, PGW expects that the extraordinary rate relief, as the revenues are realized, will enable significant progress in restoring the utility to financial health, but remains in need of additional rate relief and fiscal assistance; and
WHEREAS, Pursuant to the Philadelphia Facilities Management Corporation Agreement and the terms of a Loan Agreement between PGW and The City of Philadelphia dated November 27, 2000, the City has advanced forty-five million dollars to PGW, which must be repaid in full within twenty-four months of the loan; and
WHEREAS, The present advance repayment schedule represents a difficult challenge to PGW in light of PGW's current cash flow and operational requirements; and
WHEREAS, The recent extraordinary rate litigation with the Pennsylvania Public Utility Commission pertaining to PGW's request for rate relief, highlighted the need for the advance repayment schedule to be exten...
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