UGI Utilities, Inc. - Gas Division announced today that it has filed a request with the Pennsylvania Public Utility Commission (PUC) to increase its base rates for residential, commercial, and industrial customers by $99.4 million annually. The proposed increase is intended to recover UGI’s investment in system upgrades and maintain safe and reliable natural gas service for its more than 700,000 customers across 46 counties in Pennsylvania.
According to the filing, the rate adjustment is necessary to fund critical infrastructure improvements, including pipeline replacements, modernization of metering and regulation stations, and enhancements to the distribution network. These upgrades aim to improve system integrity, reduce emissions, and support growing demand for natural gas. UGI noted that the proposed increase reflects the company’s ongoing commitment to safety and reliability, as well as its obligations under Pennsylvania’s Act 11, which requires utilities to invest in infrastructure replacement.
The request comes amid a period of increased regulatory scrutiny on utility rates and infrastructure spending. If approved by the PUC, the rate increase would affect all customer classes, though the exact impact on individual bills will depend on usage and rate design. UGI has stated that the average residential customer could see a monthly increase of approximately $8 to $12, depending on consumption patterns. The company emphasized that the proposed rates are designed to be phased in gradually to minimize immediate financial burden on customers.
UGI Utilities, Inc. - Gas Division serves more than 700,000 customers in 46 counties across Pennsylvania. Additional information about UGI Utilities, Inc. is available at www.ugi.com.
The PUC will review the filing and hold public hearings before making a final determination. Stakeholders, including consumer advocates and industrial customers, are expected to comment on the proposal. The outcome of this rate case could set a precedent for other natural gas utilities in the state seeking similar infrastructure cost recovery.
For more details, the full announcement is available here.
