UGI Utilities, Inc. petitioned the Pennsylvania Public Utility Commission (PUC) to lower the maximum allowed increase on its purchased gas cost (PGC) rate increase to 10%, to be effective for its March 1, 2026 quarterly adjustment. UGI updates its natural gas supply costs on a quarterly basis to reflect actual gas costs paid on behalf of customers for the purchase of gas supply, consistent with a process described in its tariff. Without approval of the request, UGI’s PGC would have increased by 25% at the time of its quarterly rate adjustment. The PUC granted the Company’s request, preventing an increase of 25%, and instead capping the increase at 10%.
Colder temperatures have led to increased demand for natural gas across the Northeast, and increased gas supply costs. By law, utilities are required to pass the cost of the natural gas supply they purchase on behalf of customers directly through to PGC customers without any profit margin added.
As a result of the 10% cap, with UGI’s March 1, 2026 adjustment, the average residential heating customer receiving gas supply from UGI will see a bill increase of 4.2%. The average monthly residential bill will increase from $119.67 per month to $124.72. The March 1, 2026 rate filing also includes an adjustment to the Universal Service Program rate for residential customers, bringing the total anticipated impact for the average customer to 4.5%.
There are multiple options for paying UGI bills, including via UGI’s online account center and app, as well as an auto-pay program to assist customers in managing bill payments. UGI recognizes some customers may have difficulty paying their heating bill. The Company offers budget billing and billing plans that pay off past-due balances over time. In addition, customers with a limited or fixed income should visit www.ugi.com/customerassistance or call UGI at 1-800-UGI-WARM to determine if they are eligible for one of several energy assistance programs. Further, UGI can assist eligible customers in applying for federally funded Low-Income Home Energy Assistance Program (LIHEAP) grants.
UGI encourages customers to use energy wisely and make efficiency improvements in their homes. Additional information on energy efficiency programs is available on UGI’s website at www.ugi.com/energy-saving-tips .
Pennsylvania customers can choose an energy supplier and shop for competitive natural gas rates at www.PAGasSwitch.com. Terms and conditions vary on shopping products.
