Study Shows Low-Income Philadelphians Pay More

A Brookings Institution study titled 'The Price is Wrong' says low-income working families in Philadelphia often spend more for the same basic necessities – groceries, natural gas, cars, auto and homeowners insurance, home appliances and furniture – than do higher-income families in the surrounding area.

Focusing on gas services provided by the city's municipal utility PGW, the study says Philadelphia households can pay about $300 more per year for natural gas than households in the suburbs, and low-income households are more likely to pay a security deposit. The average annual gas bill for a PGW customer is $1,805, whereas PECO customers in suburban Philadelphia pay $1,496, according to the study.

The study suggested ways government, business and others can make the market work more fairly. It called upon the state of Pennsylvania to supplement LIHEAP with its own programs and to expand investments in home energy efficiency.

Source: philly.com, Brookings Institution

Page Last Updated: May 23, 2007