PHILADELPHIA—Operating on the assumption that the proposal to sell the Philadelphia Gas Works is dead, the City Council held a hearing on Thursday that is scheduled to be continued today on what course the city should embark on for its embattled utility.
The city's deal to sell PGW for $1.86 billion to UIL Holdings Corp., a New Haven, CT utilities operator, expires at year's end if the Council does not approve the sale. In late October, Philadelphia City Council president Darrell Clarke notified the Nutter administration that City Council would not endorse the sale of the Philadelphia Gas Works.
Opponents and supporters of the ULI purchase of PGW are expected to dominate the hearings. Despite the City Council rebuke, officials with the Nutter administration and UIL say they're still working behind the scenes to salvage the deal, according to The Inquirer.
Philadelphia Mayor Michael Nutter has proposed that net proceeds from the sale, estimated at more than $420 million, would be deposited in the city's pension fund to reduce a deficit. See story in The Inquirer.
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