PUC Approves Settlement Substantially Reducing Rate Changes for UGI Utilities Inc. – Gas Division

PUC Approves Settlement Substantially Reducing Rate Changes for UGI Utilities Inc. - Gas Division

Published on 10/1/2026

Filed under: Gas

Settlement will expand programs for income-qualified residents, enhance customer service and advance gas safety

HARRISBURG - The Pennsylvania Public Utility Commission (PUC) today approved a settlement that substantially reduces rate changes sought by UGI Utilities Inc. - Gas Division (UGI) - cutting UGI's initial request by nearly 35% while enhancing customer service, expanding programs for income-qualified residents, and advancing new gas safety measures.

The Commission voted 3-1 to adopt the recommended decision of PUC Administrative Law Judges F. Joseph Brady and Alphonso Arnold III, who recommended the approval, without modification, of a Joint Petition for Approval of Settlement filed by the PUC's independent Bureau of Investigation & Enforcement, UGI, the Office of Consumer Advocate, the Office of Small Business Advocate, and the Retail Energy Suppliers Association. Additionally, the Coalition for Affordable Utility Services and Energy Efficiency in Pennsylvania (CAUSE-PA) filed a letter indicating that it does not oppose the settlement.

UGI provides natural gas distribution services to approximately 706,000 residents and businesses in 46 counties throughout Pennsylvania. In early spring, the PUC conducted a total of 12 public input hearings in the UGI rate case proceeding.

Revenues and Rates

As approved, the settlement provides for an additional $65 million (5.3%) in annual operating revenues for UGI, compared to the company's initial request for an additional $99.368 million (8.05%). The $65 million rate adjustment will be "phased in" - spread out over two phases to mitigate its potential impact on UGI customers:

• $40 million, effective Oct. 1, 2026, and
• $25 million, effective Oct. 1, 2027.

Under this framework, the average monthly bill for a residential customer using 68.8 Ccf per month will increase by a total of $6.45 (5.7%) with a similar two-step phase-in - from $113.76 to $117.69, effective Oct. 1, 2026, and then from $117.69 to $120.21, effective Oct. 1, 2027. In its filing, the company had initially proposed a one-time increase of $9.91 (8.7%) for the same residential customer, from $113.76 to $123.55 (8.7%).

UGI also proposed an increase in its residential customer charge, from the current $16.25 to $23 per month. Today's settlement allows for a smaller, incremental increase in the residential customer charge from $16.25 to $20 per month - with the customer charge set at $19, effective Oct. 1, 2026, and then $20, effective Oct. 1, 2027.

Additionally, the settlement contains a "stay-out" provision in which UGI agrees not to file another base rate increase until at least January 15, 2029.

Customer Assistance

UGI's low-income customers can benefit from several customer assistance measures included in the settlement, highlighted by:

• Automatic enrollment and recertification for the UGI's Customer Assistance Programs (CAPs) - Ensuring UGI customers eligible for assistance through the federal Low Income Home Energy Assistance Program (LIHEAP) can be enrolled or recertified.
  
  
• Additional Contribution to "Operation Share" - A one-time, additional contribution of $250,000 by UGI to its Hardship Fund, along with a company commitment to maintain $1.5 million in total annual contributions.
  
  
• Expanded Arrearage Forgiveness Pilot Program - On April 1, 2027, UGI will implement an expanded program that gives income-qualified customers the option of a 24-month payment plan on 50% of their current arrears.
  
  
• Low-Income Customer Assessment and Outreach Pilot - Regular progress updates on this pilot primarily focused on identifying and assisting low-income customers eligible for energy efficiency and assistance services but have not yet enrolled.
  
  
• Victims of Domestic Violence - Updating protections for victims of domestic violence to also accept a written certification from a domestic violence counselor/advocate.
  
  
• Security Deposit Refunds - A company monthly review to ensure security deposits are not being collected from customers who are confirmed to be income eligible for CAP.
  
  
• Low Income Screening - A renewed effort to increase awareness among new and moving customers, non-emergency callers, and customers identified as low income through regular screening processes on their eligibility to participate in customer assistance programs.
  
  
• Targeted Customer Communications - Convening a collaborative with interested stakeholders to discuss targeted customer communications regarding natural gas shopping.

Weather Normalization Pilot

UGI will conduct a new pilot with respect to its Weather Normalization Adjustment (WNA). Under this Second WNA Pilot, which will begin on Nov. 1, 2027, and continue through the company's next base rate proceeding, the WNA will not apply to customers enrolled in UGI's CAPs and a 5% deadband will apply.

Gas Safety

UGI will continue reporting to the PUC's Pipeline Safety Division (Pipeline Safety) on pipeline restoration costs and on its ten most expensive restoration projects per year over the past three years.

Additionally, UGI will provide a copy of any analysis produced at the conclusion of the Gas Technology Institute ("GTI") pilot program investigating the use of Smart Remote Methane Detectors ("SRMDs") to Pipeline Safety. Furthermore, the Company also agrees to host a technical conference open to parties, Commission personnel, and other natural gas distribution companies to review the results of the GTI pilot and to discuss policy and operational considerations regarding further deployment of Remote Methane Detectors and SRMDs.

About the PUC

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 puc.pa.gov for recent news releases and video of select proceedings. You can also follow us on X, 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-2025-3059523

Contact:

• Nils Hagen-Frederiksen
  Press Secretary
  717-418-2701
  [email protected]
• David Hixson
  Deputy Press Secretary
  717-772-2766
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