UGI Utilities, Inc. - Gas Division (UGI) filed a request today with the Pennsylvania Public Utility Commission (PUC) to increase its base rates for residential, commercial, and industrial customers by $99.4 million annually. The proposed increase would recover UGI’s investment in system upgrades and maintain safe and reliable natural gas service.
Proposed Customer Impacts
If approved, the total monthly bill for a:
- Residential heating customer using 68.7 ccf per month would increase from $113.64 to $123.55 per month or by 8.7%.
- Commercial heating customer using 26.8 mcf per month would increase from $336.74 to $358.17 per month or by 6.4%.
- Industrial customer using 54.6 mcf per month would increase from $647.57 to $688.65 per month or by 6.3%.
These estimates apply to customers who purchase their gas commodity from UGI. Customers utilizing an alternate natural gas supplier may see differing impacts. The UGI rate increase request would impact only the distribution charge portion of customer’s bill, which funds the installation, operation and maintenance of the gas distribution system as well as customer service, emergency response services, and many other activities required at the gas utility.
Infrastructure Investment
UGI’s filing includes over $468 million in investments, including critical safety improvements to its natural gas distribution system, as well as upgrades to its facilities and information technology, which are not currently reflected in rates. This includes funding for the ongoing replacement of all non-contemporary pipelines with those made of contemporary materials. The filing also includes a request to extend UGI’s current Weather Normalization Adjustment by an additional five years with certain modifications.
Supporting Customers In Need
UGI remains committed to keeping natural gas service affordable. Over the next three years, the Company is making a commitment to contribute $1 million annually to the Company’s Operation Share Energy Fund, which will assist qualifying low and moderate-income customers. Through Operation Share, energy assistance grants of up to $600 are provided to eligible customers who require assistance paying their heating bills. This funding for Operation Share is a donation from UGI and is not included in rates.
Timeline
UGI is requesting that the new gas rates take effect March 29, 2026. However, the PUC typically suspends the effective date for general base rate proceedings to allow for investigation and public hearings. The full PUC proceeding is expected to last approximately nine months from the date of filing, which would delay implementation of the new rates until October 2026.
Customers and interested parties may view UGI’s base rate filing materials on the UGI website at (www.ugi.com) and clicking on the “rate filing” link on the home page. Customers with questions may also call UGI toll-free at 1-800-276-2722 to receive further information on the proposed rate increase or to find out what actions they may take.
