UGI Electric seeks $8.7 million annual base rate increase

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UGI Electric is looking to raise its base rate by more than 12%, but industrial customers may see a slight break.

UGI’s Electric Division said it has asked the Pennsylvania Public Utility Commission to allow it to increase its base rates for electric distribution by $8.7 million a year starting April 9.

The company said the rate increase request, its first since 2018, is needed to fund ongoing system improvements and make information technology investments.

“Adding anticipated investments included in this base rate increase request, UGI Electric will have invested nearly $51 million in the distribution system since the last UGI Electric base rate case,” said Christopher Brown, UGI vice president and general manager of rates and supply.

He said investments the company has made include accelerated repair, replacement or improvement of aged and aging distribution.

If the entire rate increase is approved, the total bill for a commercial customer using 1,000 kilowatt-hours per month and receiving default power supply service from the company would increase from $120.40 to $135.62 per month or by 12.6%.

The total bill for an industrial customer using 50,000 kilowatt-hours per month and receiving default power supply service from the company would decrease from $3,931.30 to $3,897.36 per month or by 0.9%.

The total bill for a residential customer using 1,000 kilowatt-hours per month and receiving default power supply service from the company would increase from $110.18 to $123.83 per month or by 12.4%.

UGI Electric’s base rate increase request will impact the delivery charge component of customers’ electric bills.

In addition to the requested rate increase, UGI is separately proposing an Emergency Relief Program to assist customers who have been financially impacted by the COVID-19 pandemic.

UGI is also supporting electric vehicle (EV) charging infrastructure development within its service territory by both  the proposed ownership and operation of three DC Fast Charge (DCFC) electric vehicle charging stations, as well as modified service extension provisions which may help lower the installation costs for customers planning EV charging station installations.