UGI Utilities, Inc. announced today that its purchased gas cost rates will remain unchanged on June 1, 2026, providing temporary relief for its more than 760,000 natural gas and electric customers across Pennsylvania and Maryland. However, the company indicated that a rate increase is projected for December 2026, citing expected fluctuations in wholesale natural gas markets.
The announcement, made on May 15, 2026, means that customers will not see a change in their supply rates during the summer months. This stability comes as a welcome reprieve for households and businesses that have faced volatile energy costs in recent years. The projected December increase could affect winter heating bills, a critical period when natural gas demand peaks.
UGI Utilities, headquartered in Denver, Pennsylvania, serves customers in 46 counties in Pennsylvania and one county in Maryland. The company’s rates are tied to the purchased gas cost (PGC) mechanism, which passes through the actual cost of natural gas to customers without markup. The PGC rate is adjusted quarterly to reflect market conditions, and the current decision to hold rates steady for June reflects relatively stable near-term pricing.
The projected increase for December suggests that UGI anticipates higher wholesale natural gas prices later this year, potentially driven by seasonal demand, storage levels, or broader energy market trends. For customers, this means that while summer bills will remain predictable, they should prepare for potentially higher costs heading into the winter season. The impact could be significant for low-income households and small businesses that are particularly sensitive to energy price swings.
UGI offers resources for customers seeking assistance, including payment plans and energy efficiency programs. More information about UGI and its services can be found at www.ugi.com. The company also maintains a presence on social media, including Facebook and X (formerly Twitter), where customers can receive updates and tips.
The announcement underscores the ongoing volatility in natural gas markets and the importance of monitoring energy costs. For the broader industry, UGI’s projection aligns with forecasts of tighter supply and higher demand, which could influence other utilities’ rate adjustments. The December increase, if realized, may prompt customers to explore fixed-rate plans or energy conservation measures to mitigate the financial impact.
UGI Utilities, a subsidiary of UGI Corporation, continues to invest in infrastructure and reliability. The company’s service area spans diverse climates and communities, making the timing of rate changes particularly relevant for residential and commercial customers alike.
