With the money in hand, we will come back with that requesting that approval. 61 Bill No. 990810
As you know, during our preliminary discussion about this, I raised many questions similar to Councilman Nutter relative to the money, if it's being really to generate additional income for PGW or is it really going generate money for gas mains. If we use the $8 million in the interim, we have a warm winter, and you get to the spring and your revenue is lower than you planned, how plan to recapture this money for main replacement?
In the worst case scenario where we have absolutely no revenue in which to replace -- if the money is spent in the early part of January and we have no money to replace it when the revenue comes in later in the winter, we'll have a lot of serious problems that will transcend. It is our commitment that we will replace the money insofar as we are able with the revenue that comes in and dedicate it to infrastructure replacement.
It would be a wash. We'd have the revenue coming in from the payment of the swap and we would have the payment expense for the 62 Bill No. 990810 additional main replacement.
Then we won't spend it. Our intention is to capture it from the revenue that comes in, as you know, in the late winter and into the spring, if we have to spend it. Our preference, of course, is to simply have it as cushion.
So it would be just better to say that we're using this swap as a mechanism to generate additional funds for PGW and just not add to the main --
No, I can't say that. This money will be dedicated for infrastructure replacement.
I have a question that Councilman O'Neill asked which triggered in my mind, what are you doing in terms of future proposals to generate the use of gas for air conditioning? Is that a consideration on the marketing table for PGW?
Yes. In fact, you have before or will have before you a request to change the tariff to make our air conditioning rates more 63 Bill No. 990810 competitive. Mr. White is not here, but Craig White, the head of marketing and gas supply, can go into that with greater detail. I believe he intends to testify for that Commission at such time a hearing is held on that. They are actively trying to market air-conditioning. They have intended symposiums, they have tried to increase the presence of the industry. Because glass air-conditioning sound like a contradiction in terms, we still have a lot of education of engineers to perform where they gas is a source of energy for air-conditioning, and we have taken people to our convention center to prove that it works and works quite effectively.
Thank you. CHAIRWOMAN BLACKWELL: All right, let me --
Madam Chair, I don't want characterize Councilman Nutter's questions or what he expects tomorrow. I think I know what it is. I just want over 29 years where the terms of the bonds are. It's going to cost us in each year. I know it slides down if we want to get out of this at some point in time, something triggers our wanting to get. 64 Bill No. 990810 CHAIRWOMAN BLACKWELL: Is it clear Councilman O'Neill is requesting? Is it clear the information you need to give on financial forecast for Councilman Nutter? If we're clear, then this Committee hearing will be recessed until 1 o'clock tomorrow. Thank you. (Hearing recessed at 12:30 p.m.) - - - 65 Ñ›-œ C E R T I F I C A T I O N I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of December 7, 1999, were reported fully and accurately by me, and that this is a correct transcript of the same. RE: COMMITTEE ON FINANCE ___________________________ Lisa C. Bradley, RPR and Notary Public