UGI Utilities, Inc. has proposed a significant base rate increase for natural gas delivery across Pennsylvania, seeking to recover ongoing infrastructure and operational costs. The utility's request of $110.4 million annually would impact more than 700,000 customers in 46 counties, with potential rate changes affecting residential, commercial, and industrial service tiers.
The proposed rate adjustment would result in varied bill increases across customer segments. Residential heating customers using 73.7 ccf per month could see their monthly bills rise from $104.47 to $115.74, representing a 10.8% increase. Commercial heating customers might experience an 8.6% increase, with monthly bills climbing from $305.44 to $331.80. Industrial customers could face a 7.5% increase, with monthly bills rising from $765.99 to $823.42.
Central to UGI's rate increase request is a substantial investment of over $786 million in system improvements. These investments primarily focus on replacing outdated pipeline infrastructure with contemporary materials, enhancing system reliability and safety. The proposed rate adjustment would exclusively impact the delivery charge portion of customer bills, which funds system maintenance, customer service, and emergency response operations.
The utility has requested the new rates take effect on March 28, 2025. However, the Pennsylvania Public Utility Commission typically suspends rate implementation to conduct thorough investigations and public hearings. Consequently, the full proceeding is expected to last approximately nine months, potentially delaying rate changes until October 2025.
This rate increase reflects broader challenges in natural gas infrastructure maintenance and modernization. By seeking to recover investment costs, UGI aims to ensure continued safe and reliable service for its extensive customer base while addressing aging infrastructure requirements.
Customers utilizing alternate natural gas suppliers may experience different rate impacts. The proposed changes underscore the ongoing need for infrastructure investment in utility services and the potential financial implications for consumers as utilities work to maintain and upgrade critical energy infrastructure.
