PUC approves settlement for smaller rate increase for UGI Utilities

The Pennsylvania Public Utilities Commission (PUC) approved a smaller natural gas distribution rate increase for UGI Utilities, Inc. – Gas Division Thursday.

The rate increase, which the PUC called substantially smaller, will be phased in using a two-step process through October 2023. UGI provides natural gas service to an estimated 672,000 customers in 45 counties across the state.

The commission voted unanimously to approve a joint settlement that increases the base rate revenues of $49.45 million per year. The settlement is nearly half (40 percent) of what UGI initially requested – $82.7 million. The increase will be split into two phases – a $38 million increase effective Oct. 29, 2022, and an additional $11.45 million increase, effective Oct. 1, 2023.

Under the settlement terms, the average residential bill will increase from $92.49 per month to $96.93 effective in 2022 and $98.21 in 2023. The average bill’s increase of $5.71 is far below UGI’s initial increase request, which would have seen a $9.39 increase for residential customers each month.

The settlement also includes provisions for enhanced customer assistance and universal service programs, including more funding and extended eligibility for Low Income Usage Reduction Program, expanded eligibility for UGI’s Operations Share grant program, and other enhancements to assist low-income customers.

The settlement was supported by the PUC’s independent Bureau of Investigation and Enforcement, the Pennsylvania Office of Consumer Advocate, the Office of Small Business Advocate, the Coalition for Affordable Utility Services and Energy Efficiency in Pennsylvania (CAUSE-PA), the Commission on Economic Opportunity (“CEO”), NRG Energy, Inc, and UGI.