UGI Electric Division (IUGI Electric) is seeking to raise base rates for electric distribution by $11.4 million annually, increasing the average rate for residential customers by 8.9%, commercial customers by 10.8% and industrial customers by less than 1%.
The Denver-based company filed a request with the Pennsylvania Public Utility Commission Friday saying the rate increase would fund ongoing system improvements and certain information technology investments necessary to support customer service activities and maintain safe and reliable electric service.
“UGI Electric is working hard to manage costs and improve system performance while continuing our commitment to safely and reliably deliver electricity to our customers and the many communities we serve,” Eric Sorber, vice president and general manager- UGI Electric Division, said.
Sorber noted that since its last base rate case in 2021, UGI Electric has made and continues to make system investments to improve the quality and reliability of service to the company’s customers. These include construction of a new substation and upgrading of UGI’s Outage Management System.
“Adding anticipated investments included in this base rate increase request, UGI Electric will have invested nearly $70.5 million in the distribution system since the last time UGI Electric filed a base rate case,” Sorber said.
The investments include accelerated repair, replacement or improvement of aged and aging distribution infrastructure on its system and the ongoing upgrade of UGI Information Technology systems.
UGI Electric’s base rate increase request will impact only the delivery charge component of customers’ electric bills. The delivery charge, which this proposal would increase for certain customers, provides a utility with the funds needed to own, operate and maintain the electric distribution system and provide customer service and emergency response services.
If approved, the total bill for a residential customer using 1,000 kilowatt-hours (kWh) per month and receiving default power supply service from the company would increase from $192.73 to $209.96 per month or by 8.9%.
The total bill for a commercial customer using 1,000 kWh per month would increase from $199.06 to $220.49 per month or by 10.8% and an industrial customer using 50,000 kWh per month would increase from $6,455.07 to $6,475.18 per month or by 0.3 percent.
UGI Electric is requesting that the new electric rates take effect March 28, 2023. However, the PUC typically suspends the effective date for general base rate proceedings to allow for investigation and public hearings. The PUC proceeding is expected to last approximately nine months, which would delay the implementation of the new rates until fall 2023.