PUC and UGI agree on smaller, two-step rate increase

The Pennsylvania Public Utility Commission (PUC) has approved a joint settlement with UGI Utilities’ Gas Division that will phase in a rate increase over two steps and at a substantially smaller rate than the company originally requested. 

The joint settlement allows for a $38 million increase in UGI revenues, effective Oct. 29,2022 to be followed by an additional $11.45 million increase, effective Oct. 1, 2023. 

 The PUC said under the terms of the settlement, the average bill for a residential customer using 73.1 cubic feet per month of natural gas will increase from a current bill of $92.49 per month to $96.93, effective Oct. 29, 2022 – and rise to $98.21, effective Oct. 1, 2023.  

That two-step process will result in a total increase in the average bill of $5.71 (6.2%) between now and October 2023, compared to a $9.39 per month (9.5%) increase that was included in UGI’s initial request. 

The settlement also includes enhancements to UGI’s customer assistance and universal service programs, including: 

• Additional annual funding, extended eligibility, and increased maximum project size for the Low-Income Usage Reduction Program (LIURP). 
• Expanded eligibility for UGI’s Operation Share grant program, along with additional funding for winter 2022-2023. 
• A pilot program to identify and engage with potential low-income customers. 
• Continued simplified application process for LIHEAP recipients seeking to enroll in UGI’s Customer Assistance Program (CAP). 
• Continued active outreach to customers who have not recertified for CAP. 

UGI provides natural gas service to approximately 672,000 residential, commercial, and industrial customers in over 45 counties across Pennsylvania.