UGI Utilities Seeks $110.4 Million Annual Natural Gas Rate Increase in Pennsylvania

UGI Utilities, Inc. has submitted a request to the Pennsylvania Public Utility Commission (PUC) for a significant natural gas base rate increase of $110.4 million annually. The proposed rate adjustment aims to support ongoing infrastructure improvements and maintain safe, reliable natural gas service across its service territory. If fully approved, the rate increase would result in notable bill changes for different customer segments. Residential heating customers using 73.7 ccf per month would see their monthly bill rise from $104.47 to $115.74, representing a 10.8% increase. Commercial heating customers using 28.3 mcf monthly would experience an 8.6% increase, with bills climbing from $305.44 to $331.80. Industrial customers using 75.4 mcf per month would face a 7.5% increase, with monthly bills rising from $765.99 to $823.42.

The filing encompasses over $786 million in investments targeting improvements to the natural gas distribution system, facilities, and information technology infrastructure. A significant portion of these investments focuses on replacing older pipelines with contemporary materials, enhancing system reliability and safety. Importantly, the proposed rate increase would only affect the delivery charge portion of customer bills. This charge covers the utility's costs for owning, operating, and maintaining the gas distribution system, as well as providing customer service and emergency response capabilities.

UGI initially requests the new gas rates take effect on March 28, 2025. However, the PUC typically suspends the effective date for such proceedings to conduct investigations and public hearings. The complete PUC review process is expected to last approximately nine months, potentially delaying rate implementation until October 2025. The proposed rate increase reflects UGI's ongoing commitment to infrastructure modernization. With service spanning 46 counties in Pennsylvania and supporting more than 700,000 customers, the utility's investment aims to ensure continued safe and reliable natural gas distribution. Customers utilizing alternate natural gas suppliers may experience different bill impacts, and the actual rate adjustment will be subject to PUC review and approval.