UGI Utilities customers are set to experience a notable rise in natural gas prices, affecting over 700,000 individuals. This increase, sanctioned by the state Public Utility Commission, will occur in two phases, heightening costs by nearly 6% overall.
The initial phase has already taken effect, lifting the average monthly bill for residential consumers who use approximately 6,880 cubic feet of gas to $117.69 from $113.76. The next phase will raise this to $120.21 by October 1, marking a total increase of 5.7%.
UGI’s Past and Future Rate Adjustments
This marks the second consecutive yearly increase in UGI’s base rates. Previously, in September 2025, a 6.7% rise was approved for typical residential users. The decision was made following a 3-1 vote by the commission, adopting a proposal from two administrative law judges.
The agreement, which received no opposition from the Coalition for Affordable Utility Services and Energy Efficiency in Pennsylvania (CAUSE-PA), involves a $40 million operational boost for UGI for this year and an additional $25 million for the following year, a total revenue increment of 5.3%.
Changes in Residential Customer Charges
Residential customer charges will also see an increase from $16.25 to $19 monthly, and to $20 by next October. UGI’s initial proposal was for a $23 charge. The settlement ensures that UGI cannot propose another rate hike until January 15, 2029, though adjustments based on gas costs remain permissible.
Additional Settlement Provisions
- Automatic enrollment and recertification for low-income customers in the utility’s assistance programs, aligning with the federal Low Income Home Energy Assistance Program.
- An additional $250,000 contribution to UGI’s hardship fund, maintaining a $1.5 million total annual contribution.
- Expansion of a program offering income-qualified customers a 24-month payment plan for 50% of their overdue bills.
UGI serves about 706,000 natural gas consumers across 46 counties, reflecting a broad impact of these changes.
