HARRISBURG, PA — The Pennsylvania Public Utility Commission (PUC) is calling for public feedback on a proposed settlement with UGI Utilities Inc. – Gas Division (NYSE: UGI). This follows an investigation into the utility’s failure to properly notify thousands of residential customers prior to the termination of their gas service in 2022 and 2023, as required by state regulations.
The PUC voted unanimously, 5-0, to open a public comment period regarding the settlement, submitted as a Joint Petition for Approval by the PUC’s independent Bureau of Investigation and Enforcement (I&E) and UGI.
Basis for the Settlement
The investigation centered on UGI’s noncompliance with Chapter 56 of the PUC’s regulations, which mandate personal customer contact at least three days before services are terminated. According to the findings, UGI failed to meet this requirement for 3,957 customers over two incidents in March 2022 and April 2023.
I&E’s examination also revealed additional issues related to reconnection fees. Over the two incidents, 1,957 customers were charged fees for service reconnection, even though their service was terminated unlawfully due to the company’s failure to provide proper notice. Further shortcomings were disclosed during settlement discussions in July 2023, where UGI self-reported additional lapses related to its auto-dialer system.
Terms of the Settlement
To address these issues, UGI has agreed to the following as part of the proposed settlement:
- Civil Penalty: UGI will pay a $90,000 civil penalty that cannot be deducted for tax purposes or passed on to customers.
- Refund of Reconnection Fees: The company acknowledges that it refunded all reconnection fees previously collected from affected customers.
- Corrective Actions: UGI has implemented changes to prevent future compliance breaches, including significant upgrades to its auto-dialer system and the addition of new procedural safeguards. These include a daily manual review of dialer logs to ensure consistent adherence to contact requirements.
PUC officials emphasized that the settlement, if approved, aims to reinforce regulatory compliance and protect Pennsylvania consumers. Copies of the proposed agreement will also be sent to the Pennsylvania Office of Consumer Advocate and the Pennsylvania Office of Small Business Advocate for review.
Public Comment Process
The proposed settlement is set to be published in the Pennsylvania Bulletin, triggering a 25-day public comment period. Detailed instructions on how to submit comments will be provided at that time. The PUC urged residents, businesses, and stakeholders to participate, noting that all submitted feedback will be carefully reviewed before the Commission reaches a final decision.
Implications for UGI and Its Customers
UGI’s compliance failures, which affected over 5,000 customers across multiple incidents, have raised significant concerns about operational reliability and fairness. These lapses prompted accelerated corrective action by the utility company, aimed at improving internal processes and restoring customer trust.
The proposed settlement represents an effort by the PUC to address past violations while reinforcing customers’ rights under Pennsylvania’s utility regulations. From a broader perspective, it underscores the importance of accountability for public utilities operating within the Commonwealth.
Summary and Outlook
The settlement proposal marks a key step in resolving issues involving UGI’s failure to meet critical notification standards. Moving forward, both the PUC and UGI will work to ensure adherence to state regulations, providing clarity and improved safeguards for residential utility customers.
Residents and stakeholders are encouraged to take advantage of the public comment period, as the results will shape the outcome of this significant regulatory decision. This process reflects the PUC’s ongoing commitment to transparency, fairness, and consumer protection in Pennsylvania’s utility services.
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