Have UGI? Expect a nearly 9% rate hike for natural gas after PUC approves new numbers

HARRISBURG- The Pennsylvania Public Utility Commission (PUC) today approved a smaller than requested rate change for natural gas distribution services provided by UGI Utilities Inc. – Gas Division (UGI Gas), along with a series of enhancements to the utility’s consumer protection and gas safety programs.

The Commission voted 5-0 to approve a Joint Petition for Approval of Settlement (joint settlement) without modification as detailed in the Recommended Decision of PUC Deputy Chief Administrative Law Judge Mark A. Hoyer and Administrative Law Judge Charece Z. Collins. 

UGI Gas provides natural gas distribution service to approximately 690,000 residential, commercial and industrial customers in 46 counties across Pennsylvania.

UGI Gas Rate Changes

Under the settlement, UGI Gas may increase base rate revenues by $69.5 million (8.9%) – approximately $40.9 million less than the company’s initial request of $110.4 million (14.1%).  Additionally, the settlement includes a $1.25 adjustment to the monthly residential customer charge, as opposed to the $4.95 increase proposed by the company.

Under the settlement the average bill for a residential customer using 72.9 hundred cubic feet (Ccf) of natural gas per month would increase from $103.57 to $110.51 per month (6.7%) as opposed to the 10.8% proposed increase in UGI Gas’ initial filing.

The new rates will be applicable to service rendered on and after Oct. 28, 2025.

Customer Assistance Improvements

The joint settlement also directs numerous improvements to the company’s customer assistance programs, highlighted by the following steps that UGI Gas is already taking, or has agreed to undertake:

• Implement the PUC’s Common Application Form (CAF) for enrollment in the utility’s Customer Assistance Program (CAP). In 2024, the Commission directed a statewide CAF among all energy, water and wastewater utilities to break down barriers to essential public assistance programs for eligible families.
• Increase its annual LIURP budget by $1 million, effective Jan. 1, 2026.
• Continue its Low-Income Customer Assessment and Outreach Pilot as part of its Universal Service and Energy Conservation Plan (USECP). The pilot focuses on identifying and assisting low-income customers who may be eligible for energy efficiency services but have not yet enrolled.
• Increase outreach efforts through additional in-person Winter Assistance Relief Mobilization (WARM) events.
• Increase its annual shareholder donation to Operation Share by $500,000.
• Agreement to not assess reconnection fees for any confirmed income-qualified customers that provide verification of household income.
• Modify its Weather Normalization Adjustment (WNA) Pilot, which will no longer apply to the month of May; no longer apply to income-qualified customers enrolled in CAP; include additional periodic reporting requirements on WNA adjustments; and improve the company’s communication efforts with customers regarding the WNA Pilot.

Service Quality Performance & Consumer Protection Enhancements

The joint settlement includes important service quality performance standards and enhanced consumer protections to be undertaken by UGI Gas, including but not limited to:

• Maintain its call center performance levels, consistent with its 2024 performance levels as reported to the Commission in 2025 and 2026.
• Provide annual performance reports to its Universal Service Advisory Committee once the annual reporting data is submitted to the Commission, which will include year over year comparison results.
• Develop additional training materials for its field representatives by April 1, 2026, regarding making personal contact with customers prior to termination – and incorporate these materials into the training of its field representatives.

Gas Safety

The joint settlement also reinforces two of UGI Gas’ key gas safety requirements:

• Methane Detectors – UGI Gas will implement a two-year pilot methane detector (“MD”) program within its service territory. A minimum of 500 units will be deployed, utilizing a combination of Smart Remote Methane Detectors (“SRMDs”) and MDs to allow UGI Gas to study the effectiveness of the SRMDs and MDs and monitor related costs, benefits, concerns, and other issues related to methane detector deployment.
• Pipeline Restoration Costs – The company will continue producing an annual report for pipeline replacements as part of its Annual Asset Optimization Plan filing, identifying its ten most expensive restoration projects per year over the past three years and specifically identifying costs incurred in excess of the Pennsylvania Department of Transportation restoration standards. The Company will discuss the results of the annual reporting on restoration costs with the Commission’s Pipeline Safety Division.