UGI Utilities Inc. said it will be decreasing its purchased gas cost rates starting Sunday.

It said the average residential heating customer’s bill will drop by 3% as a result.

A bill of $79.56 would decrease to $77.18 per month.

By law, utilities are required to pass the cost of the natural gas they purchase directly through to customers without any markup.

Meanwhile, as expected, the Pennsylvania Utility Commission has hit pause on a request from UGI for a separate 8.5% rate increase toward its operating revenue by about $74.6 billion per year.

The PUC board voted 5-0 on Thursday to suspend the rate increase request, which otherwise would have become effective Sunday.

It has delayed the request for up to seven months, as is typical for such procedures, so the commission can investigate the need for the increase and to take public input.

Public input hearings to gather comments about UGI’s rate increase request from concerned residents will be scheduled and publicized by the PUC and UGI when dates and locations have been finalized.

The PUC is expected to make a final decision about UGI’s request by Oct. 28.

UGI Utilities Inc. is based in Denver, Lancaster County and serves more than 640,000 natural gas customers in 45 counties in Pennsylvania.