UGI Seeks $110.4 Million Rate Increase, Pennsylvania Customers Face Higher Natural Gas Bills

Pennsylvania's natural gas consumers are facing potential price hikes as UGI Utilities filed a request with the state's Public Utility Commission for a $110.4 million annual base rate increase. The proposed increase, which would affect residential, commercial, and industrial customers across 46 counties, represents significant changes to monthly bills for all customer categories.

Under the proposed rate structure, residential heating customers using 73.7 ccf monthly would see their bills rise from $104.47 to $115.74, marking a 10.8% increase. Commercial customers would face an 8.6% increase, while industrial users would see a 7.5% jump in their monthly bills.

The rate increase request is tied to UGI's substantial infrastructure investment of over $786 million, focusing primarily on system improvements and the replacement of aging pipelines with contemporary materials. This infrastructure upgrade represents a significant modernization effort in Pennsylvania's natural gas distribution network, which could enhance system reliability and safety.

The timing of the implementation is crucial for consumers and businesses planning their future budgets. While UGI has requested the new rates to take effect March 28, 2025, the regulatory review process typically results in a delayed implementation, with rates likely taking effect in October 2025 following the standard nine-month review period.

This rate adjustment would only affect the delivery charge portion of customers' bills, which covers the utility's operational costs, maintenance, and emergency response services. The proposed increase highlights the growing costs of maintaining and upgrading natural gas infrastructure, a trend that could influence similar rate decisions by other utilities across the region as they face similar infrastructure modernization needs.