One of the more complicated and not-so-glamorous issues of the 2007 mayor's race is going to be what should be done with the Philadelphia Gas Works. Saddled as it is with over a billion dollars in debt, apparently from being mortgaged so many times to pay off the city's bill when it landed on Boardwalk with a hotel (500,000 times), no other mayoral administration since Rizzo has known what to do with this utility. (And apparently, Rizzo's idea was to use it as a patronage haven.)
Now, to the debt, add (1)the fact that the infrastructure is aging (hmmm, "aging infrastructure" + explosive gas, this ought to be interesting), (2)many of the customers are low income, and (3)PGW is restricted by law from selling its product outside of city limits and you get the following equation:
$1 billion debt + explosive gas in old pipes + poor people in the cold + no wealthy suburban customers = Can I run for Food Court Judge?
PICA, not an agency that's staffed with crazy, hyberbolic fortune tellers, actually said:
As PICA has said in its last several staff reports, PGW is one of the most difficult issues facing the City. Not only is it one of the few issues that could quickly create a fiscal crisis for the City, but it is also unlikely the City will be able to craft a solution to PGW’s financial problems without outside help.
It's no wonder no mayor has wanted to deal with this. Perhaps we need a Paul Vallas-type to fix this hopeless situation.
So part of my evaluation of our potential mayoral candidates will be based on whether or not they raise these issues and at least try to offer some solutions, no matter how difficult those solutions may be or how hard it will be for people to hear them. As Catherine Lucey, Wendy, and Michael Currie Schaffer & Marcia Gelbart said in their accounts of yesterday's African American Chamber of Commerce forum, none of the candidates really stepped out on the major issues of crime, jobs and education.
I suppose Nutter came close when he proposed dismantling MBEC and replacing it with a small business department with a clear mission that could provide better aid to minority businesses. Afterall, he does risk having an opponent run his comments out of context in an ad that says "Michael Nutter wants to dismantle the city agency that helps minority businesses. Michael Nutter doesn't care about black people." But I do give him credit for making perhaps the boldest statement of the event.
However, today's winner for taking on the difficult issue referenced in the title of this post is Dwight Evans. From today's DN:
State Rep. Dwight Evans plans to introduce legislation giving the state Public Utility Commission the power to force the sale of the city-owned Philadelphia Gas Works.
...
According to Evans' proposal, before ordering the sale of PGW, the PUC would have to look at: reorganizing PGW under new management, contracting PGW's management to another company, appointing a receiver to run PGW, expanding PGW's service territory beyond city limits, or securing state, federal or local government funds to place the company on sound financial footing.
Now, when I was a young lad working on a doomed mayoral campaign in 2003, I had to write a briefing for the candidate as he prepared to meet with the union representing the gas workers. I spoke to the President of the union to get some information and was essentially told that any proposal to sell the gas works was a deal breaker for getting the support of the union. I passed that info along to the candidate and he went into that meeting and told them that he absolutely wouldn't sell the gas works. He pretty much said that with a billion dollars in debt, who would want to buy it anyway? Regardless, he got their endorsement.
Now, it's almost always better to have the endorsement of a union instead of not having it. So unless the union's position on the sale of PGW has changed, on the metric of "is this a risky announcement?" the answer is yes. The general public probably can't grasp the fine points of his proposed legislation and the likelihood that passing such a law would lead to a miraculous healing of PGW in time for Evans to run on it in the spring is low. He may never have counted on the support of the Gas Workers union but still, he could have at least avoided being actively targeted by them.
Clearly, PGW is in trouble and every time my gas rates go up or they forget to mail me a bill, I see just how much that trouble affects the residents of Philadelphia. I'll keep my opinion about the soundness of Evans's policy to myself but as I said before, he gets credit for putting something out there.