UGI Utilities Inc. customers will pay more to heat homes and businesses starting Sunday.
The utility announced Wednesday its purchased gas rate went up so an average residential heating customers’ bill will rise 8.7% - from $95.40 to $103.69 a month.
It’s the second increase this year. On June 1, a 4.5% hike pushed the same customer’s bill up to its present level from $90.94 a month.
A typical residential customer uses 73.6 hundred cubic feet of natural gas a month.
The purchased gas rate rises or falls depending on gas’ wholesale price. Based on the price, utilities may update customer rates twice a year.
Wholesale natural gas prices are soaring as demand outstrips supply, partly because utilities are switching to natural gas from coal and other fuels.
“UGI continues to work to find the lowest cost supply options for our customers. This increase reflects the general rise in wholesale natural gas supply prices,” chief regulatory officer Paul Szykman said in a statement. “Despite this increase, natural gas continues to be a clean, safe, reliable, and affordable energy choice for homes and businesses.”
UGI projected the increase during its June rate hike request.
Utilities must pass gas costs on directly to customers without any profit.
The utility urged customers who might have trouble paying bills to visit www.ugi.com/customerassistance or call 1-800-UGI-WARM to determine eligibility energy assistance programs. UGI also helps eligible customers in applying for federally funded Low-Income Home Energy Assistance Program (LIHEAP) grants.
Based in Denver, Pa., UGI serves more than 740,000 natural gas and electric customers in 46 counties.
