BETHLEHEM, Pa. — Natural gas prices will go up for UGI customers in the near future, but the rate hike will be lower than expected.
The state Public Utility Commission on Thursday approved a reduced rate increase for UGI Utilities Inc.–Gas Division, while also requiring the company to expand customer assistance and strengthen its gas safety programs.
For the average residential customer using 72.9 hundred cubic feet of natural gas per month, bills will increase from $103.57 to $110.51.State Public Utilities Commission
In a 5-0 vote, the PUC signed off on a settlement that allows UGI to raise base rate revenues $69.5 million, about $40.9 million less than the utility’s original $110.4 million request, according to a release.
The settlement also lowers the company’s proposed increase to the monthly residential customer charge from $4.95 to $1.25.
For the average residential customer using 72.9 hundred cubic feet of natural gas per month, bills will increase from $103.57 to $110.51 — a 6.7% increase instead of the 10.8% hike initially proposed.
The new rates take effect Oct. 28.
Customer assistance improvements
UGI Gas, which serves about 690,000 customers across 46 Pennsylvania counties, also agreed to a series of consumer protection and service quality measures.
As part of the settlement, these are among the steps the company already is taking or has agreed to undertake, according to the release:
- Adopt the PUC’s Common Application Form for Customer Assistance Program enrollment. The form aims to streamline the process for income-eligible customers to apply for and recertify in multiple public utility assistance programs — reducing the burden on eligible households.
- Add $1 million to its Low-Income Usage Reduction Program, or LIURP, budget starting in 2026.
- Continue a pilot program to identify low-income customers eligible for energy efficiency services.
- Expand outreach through Winter Assistance Relief Mobilization, or WARM, events.
- Increase annual shareholder donations to Operation Share by $500,000.
- Waive reconnection fees for income-qualified customers who verify their household income.
The settlement also modifies UGI’s Weather Normalization Adjustment pilot program to exclude the month of May and income-qualified customers enrolled in assistance programs, while requiring more detailed reporting and improved communication with customers.
Service quality and gas safety
The agreement also requires UGI to maintain current call center performance levels, provide more detailed reports to advisory committees, and, by April 1, 2026, improve training for field representatives on making personal contact with customers before service disconnections.
On gas safety, the company must continue annual reporting on pipeline restoration costs and will launch a two-year pilot program to deploy at least 500 methane detectors, combining smart remote units and standard detectors to test effectiveness and cost.
The settlement was reached with input from the PUC’s Bureau of Investigation and Enforcement, the Office of Consumer Advocate, the Office of Small Business Advocate, labor and consumer groups and energy suppliers.
