Press Release

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

Published on 10/8/2020

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) 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:

Average              Current               Increase              Increase               Increase
Usage                  Bill                     1/1/2021            7/1/2021               10/1/2021

73.5 Ccf              $ 81.54                $ 82.75              $ 83.96               $ 84.67

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.

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

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.

Visit the PUC’s website at www.puc.pa.gov for recent news releases and video of select proceedings. You can also follow us on Twitter, Facebook, LinkedIn, Instagram and YouTube. Search for the “Pennsylvania Public Utility Commission” or “PA PUC” on your favorite social media channel for updates on utility issues and other helpful consumer information.

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Docket No.: R-2019-3015162

Contact:

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