Commissioner James H. Cawley said the commission wanted to avoid a repeat of last year's gas-main explosion in Tacony, which killed a PGW worker.
"It is another disaster waiting to happen," Cawley said about PGW's aging infrastructure, which was a subject of an Inquirer investigative series published in December.
"We're talking about the health and safety of the public," he said. "It's that serious."
Commissioner Wayne E. Gardner said that Cawley's assessment did not necessarily represent the opinion of the entire five-member panel. But he and Chairman Robert F. Powelson indicated that the idea of selling the utility had appeal.
The PUC members expressed frustration that the city has not completed a study of PGW's privatization that it promised after state regulators granted a rate increase in 2009.
The city entered into a $200,000 contract with Lazard Freres & Co. L.L.C. in 2010 for an "in-depth assessment" of the feasibility of selling PGW compared to retaining ownership.
Suzanne Biemiller, Mayor Nutter's first deputy chief of staff, said Wednesday the Lazard's report was still in draft form and needed more work before its release.
Some commissioners expressed concern that the city was dragging its feet.
"Other than hiring a financial adviser, we haven't heard anything more about it being sold," said Cawley. "We have here an untenable situation."
Powelson noted that PGW resumed annual $18 million dividend payments to the city last year that had been suspended because of the utility's financial fragility. He said the resumption of income to the city might have reduced its incentive to sell.
Craig White, PGW's chief executive, on Wednesday said the utility was systematically replacing its aging cast-iron mains at a rate of 18 miles per year.
"I don't believe we're in a situation where you can make the statement that there's going to be a higher propensity for failure in the future," he said.
