Press Release

PUC Approves Lower Rate Increase than Requested by UGI Gas

Published on 9/1/2016

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a settlement that reduces a base rate increase request filed by UGI Utilities Inc. - Gas Division (UGI) on Jan. 19, 2016. 

The Commission voted 5-0 to approve the settlement, which reduces UGI’s rate increase by nearly 54 percent and resolves all other issues related to the company’s request.  UGI’s initial request called for a $58.6 million (17.5 percent) increase in annual base rate operating revenues.  Today’s action by the Commission approved a revenue increase of $27 million (11.3 percent), which becomes effective Oct. 19, 2016. 

Under the settlement, a typical monthly bill for an UGI residential customer using 57.3 ccf per month will increase from $51.77 to $56.11, or 8.4 percent.  Under UGI’s original proposal, the average total monthly bill for a residential customer using 57.3 ccf of gas per month would have increased from $51.77 to $61.97, or 19.7 percent.  The company provides service to approximately 388,000 Pennsylvania customers in fifteen eastern and south central counties.

Additionally, in the approved settlement parties agreed that nearly $2.7 million of the overall $27 million increase would go toward funding the first year of UGI’s new Energy Efficiency and Conservation (EE&C) plan.  In its original proposal, UGI proposed a voluntary, five-year EE&C plan to offer energy efficiency programs and a Combined Heat and Power Program to reduce customers’ energy consumption.

Prior to the Commission’s vote, Vice Chairman Andrew Place offered a motion clarifying certain points of the recommended decision from the Commission’s Administrative Law Judge.   The motion was adopted, and the amended settlement unanimously approved.  Chairman Gladys M. Brown and Commissioner David Sweet also offered a joint statement in support of the company’s EE&C plan and Combined Heat and Power program.                                        

A joint petition to approve the settlement was supported by numerous parties, including UGI, the Commission’s Bureau of Investigation and Enforcement, the Office of Consumer Advocate, the Office of Small Business Advocate, UGI Industrial Intervenors, and three self-represented complainants. 

The UGI request was the subject of the Commission’s ongoing efforts to enhance public input in rate cases.  In March, the Commission hosted two online “Smart Hearings” in an effort to make it easier for UGI customers to comment on the company’s proposed rate increase request.  These hearings were live-streamed on the PUC website and allowed consumers across the UGI service territory to submit their testimony remotely or in-person.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner.

For recent news releases and video of select Commission proceedings or more information about the PUC, visit our website at www.puc.pa.gov. Follow the PUC on Twitter – @PA_PUC for all things utility.  “Like” Pennsylvania Public Utility Commission on Facebook for easy access to information on utility issues.

 # # #

 Docket No.: R-2015-2518438

Contact:

• David Hixson
  Deputy Press Secretary
  717-772-2766
  dhixson@pa.gov