UGI Utilities, Inc. has formally requested a $110.4 million annual increase in natural gas base rates from the Pennsylvania Public Utility Commission (PUC), a move aimed at funding extensive infrastructure improvements and ensuring the continued safety and reliability of natural gas services. This proposed adjustment would see varying impacts across customer segments, with residential heating customers facing a 10.8% increase, commercial heating customers an 8.6% increase, and industrial customers a 7.5% increase in their monthly bills.
The rate hike is part of a broader $786 million investment plan by UGI, focusing on upgrading the natural gas distribution system, facilities, and IT infrastructure. A key component of this investment is the replacement of aging pipelines with modern materials, a critical step toward enhancing system reliability and safety. The proposed increase would specifically affect the delivery charge portion of customer bills, which covers the costs associated with the operation, maintenance, and ownership of the gas distribution system, alongside customer service and emergency response capabilities.
UGI has proposed an effective date of March 28, 2025, for the new rates, though the PUC is expected to suspend this date to allow for a thorough investigation and public hearings. The review process, typically lasting around nine months, could delay the implementation of the new rates until October 2025. This proposal underscores UGI's dedication to modernizing its infrastructure across its 46-county service area in Pennsylvania, serving over 700,000 customers. The actual impact on customers using alternate natural gas suppliers may vary, with the final rate adjustment subject to PUC approval.
For more information on the proposed rate increase and its implications, visit https://www.ugi.com.
