Log In


Reset Password

PUC postpones UGI rate increase

The Pennsylvania Public Utility Commission voted this week to suspend a proposed rate increase submitted last month by UGI Utilities Inc. — Gas Division for up to seven months from the time the rates would otherwise have become effective.

The case will be assigned to the PUC’s Office of Administrative Law Judge for a recommended decision.

Filed on Jan. 28, the UGI rate increase request would impact the delivery charge portion of a customer’s bill. The delivery charge provides a utility with the funds needed to own, operate and maintain the gas distribution system and provide customer service and emergency response services.

UGI had requested that the new gas rates take effect March 28.

The UGI request would increase its operating revenues by about $74.6 million per year, or by 8.5%.

Under the request, the total average monthly bill of a residential customer using 73.5 cubic feet (Ccf) per month would increase from $81.54 to $90.22 per month, or by 10.6%; the total bill for a typical commercial heating customer using 28.7 mcf per month would increase from $251.83 to $273.05 per month or by 8.4% for customers in the former North rate district, and for all other commercial heating customers, the total bill would increase from $262.21 to $273.05 per month or by 4.1%.

The total bill for a typical industrial customer using 93.0 mcf per month would increase from $762.99 to $817.18 per month or by 7.1% for customers in the former North rate district. For all other industrial customers, the total bill would increase from $796.61 to $817.18 per month or by 2.6%.

The company’s filing includes over $373 million in budgeted system investments for system infrastructure, facilities and information technology investments which are not yet included for recovery in current rates.

Public input hearings to gather comments about UGI’s rate increase request from concerned residents will be scheduled by the Administrative Law Judge and publicized by the PUC and UGI when dates and locations have been finalized. More information on the rate-making process is available on the Commission’s website.

UGI provides service to about 650,000 residents and businesses in 45 counties across Pennsylvania. A final decision by the Commission regarding the UGI request is due by Oct. 28.