UGI Utilities, serving over 700,000 customers, seeks approval for an increase in basic rates following a recent hike in October. The proposed adjustments aim to raise residential rates by 8.7%, commercial by 6.4%, and industrial by 6.3%.
In the previous month, the Pennsylvania Public Utility Commission (PUC) had already sanctioned a 6.7% rise in basic rates for residential consumers. These basic rates are exclusive of gas cost fluctuations, which can lead to periodic changes in customer bills throughout the year.
UGI projects that the new base rate increases would generate an additional $99.4 million annually. This revenue is intended to support the utility’s infrastructure improvements and ensure the continued provision of safe and reliable natural gas services, as highlighted in a UGI statement.
Projected Customer Impact
For residential heating users consuming 6,870 cubic feet of natural gas monthly, bills would rise from $113.64 to $123.55, marking an 8.7% increase. Commercial consumers with a monthly usage of 26,800 cubic feet would see their rates grow from $336.74 to $358.17, a 6.4% escalation. Industrial users consuming 54,600 cubic feet would experience a 6.3% hike, with rates moving from $647.57 to $688.65.
These adjustments pertain to UGI gas purchasers, while those with alternate suppliers might experience different pricing.
The proposed increase pertains solely to distribution fees, funding the installation, operation, and maintenance of UGI’s gas distribution network alongside customer and emergency response services. Gas costs themselves are subject to market-driven adjustments throughout the year.
Allocation of Funds
UGI’s filing incorporates over $468 million earmarked for essential safety enhancements, targeting gas distribution pipelines, IT systems, and other facilities. The utility intends to upgrade outdated pipes with modern materials and proposes a five-year extension of its weather normalization bill adjustment.
This adjustment offers credits or surcharges based on temperature deviations exceeding 3% from the norm.
Additionally, UGI pledges continued contributions of $1 million towards a fund offering grants of up to $600 for bill assistance to low- and moderate-income customers.
While UGI aims for the new rates to commence on March 29, the PUC typically delays rate increases for further review and public hearings. Approval would likely see the new rates implemented by October.
For comprehensive details, visit UGI’s official site at UGI Rate Filing. Customers can direct inquiries to UGI’s toll-free number at 1-800-276-2722.
UGI’s service area covers 46 of Pennsylvania’s 67 counties.
