UGI Seeks $110.4 Million Rate Increase for Natural Gas Services in Pennsylvania

UGI Utilities, Inc. has proposed a significant base rate increase for its natural gas delivery services, seeking to recover ongoing operational and infrastructure costs. The utility's request of $110.4 million annually would impact residential, commercial, and industrial customers across Pennsylvania, with potential bill increases ranging from 7.5% to 10.8%.

The proposed rate adjustment would directly support substantial investments totaling over $786 million in the utility's natural gas distribution system. A key focus of these investments is the comprehensive replacement of older pipelines with contemporary materials, enhancing system safety and reliability.

For residential customers using an average of 73.7 ccf per month, the monthly bill would increase from $104.47 to $115.74. Commercial heating customers could see their monthly bills rise from $305.44 to $331.80, while industrial customers might experience an increase from $765.99 to $823.42.

Importantly, the proposed rate increase would only affect the delivery charge portion of customer bills. This charge covers the utility's costs for system maintenance, infrastructure improvements, customer service, and emergency response capabilities.

UGI initially requested the new rates take effect March 28, 2025. However, the Pennsylvania Public Utility Commission typically conducts a thorough investigation and holds public hearings, which could potentially delay implementation until October 2025.

The rate increase reflects the ongoing challenges utility companies face in maintaining and modernizing aging infrastructure. By investing in pipeline replacements and system upgrades, UGI aims to ensure safe, reliable natural gas service for its more than 700,000 customers across 46 Pennsylvania counties.

Customers utilizing alternate natural gas suppliers may experience different billing impacts. The proposed rate adjustment underscores the continuous need for infrastructure investment to support reliable energy distribution in an evolving utility landscape.