Philadelphia May Gain $496 Million on Gas Sale, Lazard Says

Philadelphia should sell its gas utility, the largest municipally owned system in the U.S., to reduce the city’s financial risk, Lazard Ltd. said in a report.

The city may gain as much as $496 million from a sale, after accounting for costs tied to the utility, Lazard said in the study released yesterday. It placed the 176-year-old Philadelphia Gas Works Co.’s potential value to a buyer at $1.4 billion to more than $2 billion, depending on what is included.