UGI Utilities, Inc. announced that its purchased gas cost rates for natural gas customers will remain unchanged on June 1, 2026. The utility, which serves more than 760,000 natural gas and electric customers across 46 counties in Pennsylvania and one county in Maryland, cited stable market conditions for the near term. However, UGI cautioned that a substantial rate increase is projected for December 2026, driven by anticipated higher wholesale natural gas prices during the winter heating season.
The current supply rate of $0.45 per therm will continue through the summer months, providing some relief to customers as energy demand typically rises with air conditioning use. UGI noted that the projected December increase reflects updated forward price curves for natural gas, which have risen due to factors including increased export demand and lower storage levels. The company emphasized that the exact rate change will be determined after the Pennsylvania Public Utility Commission (PUC) reviews and approves the quarterly adjustment.
UGI purchases natural gas on the open market and passes the cost directly to customers without markup. This means the supply portion of customer bills fluctuates with market prices. The upcoming winter increase is expected to be more pronounced than typical seasonal adjustments, according to UGI's analysis. Customers are encouraged to explore options to manage their energy costs, such as budget billing plans that average payments over the year.
For more information, UGI provides resources on its website at www.ugi.com, and updates on social media via Facebook and X.
The announcement underscores the volatility of natural gas markets and the importance of planning for seasonal cost changes. UGI will provide more details on the December rate adjustment in the coming months, pending PUC approval.
