Landlord ire over PGW's lien policy

February 17, 2012|BY WILLIAM BENDER, benderw@phillynews.com 215-854-5255
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  • Gail Newman , standing in the yard of her rental property in Chestnut Hill, is fighting PGW's $15,000 lien based on a former tenant's unpaid gas bills.
  • Gail Newman , standing in the yard of her rental property in Chestnut Hill, is fighting PGW's $15,000 lien based on a former tenant's unpaid gas bills. (DAVID MAIALETTI / STAFF…)
  • Cheryl and Raymond Perfetti in front of their Passyunk Avenue storefront, against which PGW has filed $7,000 in liens for bills unpaid by tenants. (DAVID MAIALETTI / STAFF…)

YOU'D ASSUME that Gail Newman is using hyperbole when she calls the Philadelphia Gas Works a "fascist" regime run by "devious gangsters" relying on "Mafia-like" tactics to shake her down for $15,000 worth of natural gas she never used.

Bit over the top, right? Turns out, Newman's not the only one who feels that way.

"They know they can extort the money . . . " she said. "I'm just a middle-class person trying to make a buck, and they're taking their boot and squashing us. I'm so pissed!"

Newman speaks her mind, but she's not a raving lunatic. She's a dental hygienist from the suburbs. Her husband works with autistic children at the Devereux Foundation. They rent out a rowhouse they own in Chestnut Hill to supplement their income.

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But the Newmans and other Philly landlords are livid over PGW's cutthroat policy of supplying free gas to deadbeat tenants - likely millions of dollars worth citywide - then pressuring landlords to pick up the tab, sometimes years after the tenants have left the building.

And if the landlords don't pay their tenants' bills - including penalties and interest - then PGW files a lien on the property, making it difficult to sell or refinance. In some cases, landlords say, PGW has filed liens without any warning, explanation or opportunity to contest the amount owed.

"This is a scam," Newman said. "Would a grocery store deliver thousands and thousands of dollars worth of groceries for years and not get paid? What legitimate organization would ever do that?"

Newman and others feel like they're victims of a shakedown. And, in some respects, that's exactly what it is. Except, it has been authorized by lawmakers in Harrisburg and carried out by the city-owned gas utility.

 

Legal . . . but is it right?

Here's how it went down at Newman's building on Germantown Avenue near Abington:

In 2006, a tenant moved out of the apartment and requested that PGW take the service out of her name. They did. But for the next three years, PGW continued to supply gas to the new tenant through a placeholder account. They didn't even know his name.

"Could you imagine Comcast doing that?" Newman asked.

In 2009, PGW finally threatened to shut off service to the apartment. The tenant then admitted that he'd moved in three years ago and had been using gas without paying and without his name on the account. PGW put the account in his name and he continued using the gas. It was shut off last year for nonpayment.

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