Press Release

PUC to Investigate Rate Increases for UGI Central Penn Gas, UGI Penn Natural Gas

Published on 3/26/2009

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today voted to investigate proposed rate increases for UGI Central Penn Gas Inc. and UGI Penn Natural Gas Inc.

The Commission voted 5-0 to investigate the two companies’ proposals.  UGI Central Penn is proposing an increase in annual rates of approximately $19.6 million (12.05 percent) while UGI Penn proposes an annual increase in rates of $38.1 million (11.42 percent). 

Under the proposal for UGI Central Penn, the bill for the average residential customer using approximately 78.1 dekatherms of gas per year would increase from $114.72 to $132.79 a month (15.8 percent).   UGI Central Penn provides gas service to approximately 77,000 retail customers in portions of 35 counties. 

For UGI Penn customers, the monthly bill for an average residential customer using 1,066 hundred cubic feet (ccf) per year would increase from $138.32 to $155.94 a month (12.7 percent).  UGI Penn furnishes metered natural gas distribution service to approximately 157,000 residential, commercial and industrial customers in portions of Clinton, Columbia, Lackawanna, Luzerne, Lycoming, Montour, Northumberland, Pike, Snyder, Union, Wayne and Wyoming counties.

According to both of the companies’ filings, the proposed increases are needed to continue to provide safe and reliable service, maintain the integrity of existing capital, attract additional capital at reasonable rates and have a reasonable opportunity to earn a fair rate of return on its property used and useful in rendering gas service to the public.

The proposals are suspended for up to seven months until Oct. 29, 2009, and will be assigned to the Office of Administrative Law Judge for a recommended decision or settlement.  More information on the ratemaking process is available on the Commission’s Web site.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities to ensure safe and reliable utility service at reasonable rates; protect the public interest; educate consumers to make independent and informed utility choices; further economic development; and foster new technologies and competitive markets in an environmentally sound manner.

For recent news releases, audio of select Commission proceedings or more information about the PUC, visit our Web site at www.puc.state.pa.us.

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Docket Nos.     R-2008-2079675; R-2008-2079660

Contact:

• Denise McCracken
  Senior Communications Specialist
  717-787-5722
  demccracken@pa.gov