PUC Approves Lower Rate Increase than Requested by UGI Utilities, Inc. – Gas Division

Pennsylvania Public Utility Commission

HARRISBURG, PA — The Pennsylvania Public Utility Commission (PUC) approved a settlement that reduces a base rate increase request filed by UGI Utilities Inc. – Gas Division (UGI) for natural gas distribution services.

The Commission voted 4-0 to adopt a Recommended Decision issued on Aug. 29, 2020, by Deputy Chief Administrative Law Judge Christopher P. Pell, approving a lower increase than originally requested by UGI with annual operating revenues increasing $20 million (2.7%) during a three-step, phased in method of implementation.  The UGI request, filed on Jan. 28, 2020, would have increased annual operating revenues by approximately $74.6 million per year (8.5%).

In total, over the settlement’s three-year phase-in, the average residential heating customer’s bill will increase by approximately $3.13 per month (3.8%), as compared to the Company’s as-filed increase of $8.68 per month (10.6%).   The breakdown of the annual phased-in increases for residential heating customers is as follows:

Under UGI’s original request, the total average monthly bill of a residential customer using 73.5 Cubic Feet (Ccf) per month would have increased from $81.54 to $90.22 per month (10.6%).

Additionally, the settlement provides for a number of changes to UGI’s tariff provisions, effective on Oct. 9, 2020 – including but not limited to changes to line extensions, modifications to UGI’s Universal Service Program and updated rules for competitive natural gas suppliers.

The Joint Petition for Approval of Unopposed Settlement was entered into among UGI, the PUC’s independent Bureau of Investigation & Enforcement, Pennsylvania’s Office of Consumer Advocate, the Commonwealth’s Office of Small Business Advocate, Industrial Energy Consumers of Pennsylvania, the U.S. Department of Defense and other Federal Executive Agencies, the Coalition for Affordable Utility Services and Energy Efficiency in Pennsylvania, the Commission on Economic Opportunity, Calpine Energy Services LP and Direct Energy.

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UGI provides service to approximately 650,000 residents and businesses in 45 counties across Pennsylvania.

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