More than 700,000 UGI Utilities customers will pay almost 6% more for natural gas as rates rise this year and next.
The state Public Utility Commission approved a two-phase rate hike that will first raise the average monthly bill for residential customers (who use 6,880 cubic feet of gas a month) to $117.69 from $113.76.
That phase went into effect Thursday.
Rates will rise to $120.21 as of next Oct. 1, leaving them a combined 5.7% higher.
In January, UGI asked for an 8.7% increase (to $123.55 for the same customer).
Another rate hike
This is UGI’s second base-rate hike in two years.
In September 2025, the PUC approved higher residential basic rates of 6.7% for a typical residential customer.
The commission voted 3-1 to adopt the recommended decision of two administrative law judges. The judges recommended backing a settlement worked out among the company, the PUC’s independent Bureau of Investigation & Enforcement, the state Office of Consumer Advocate, the state Office of Small Business Advocate, and the Retail Energy Suppliers Association.
The Coalition for Affordable Utility Services and Energy Efficiency in Pennsylvania (CAUSE-PA) filed a letter indicating no opposition.
The settlement boosts UGI’s operating by $40 million for the year that started Thursday and $25 million for the year starting next Oct. 1. That translates to 5.3% more in revenues.
The company asked for $99.4 million, or 8.1%.
Residential charge up, too
The settlement also increases the residential customer charge to $19 a month from $16.25 as of Thursday and $20 next Oct. 1. The utility wanted $23 a month.
The settlement blocks UGI from asking for another rate hike before Jan. 15, 2029. The utility is still allowed to increase rates based on the cost of gas.
Other provisions
The settlement also:
- Allows low-income customers to automatically enroll and get recertified for the utility’s bill-paying help programs. That means a customer becomes eligible for the federal Low Income Home Energy Assistance Program.
- Requires the company to add $250,000 to its hardship fund and commits the company to maintain $1.5 million in total annual contributions.
- Requires UGI to expand a program that gives income-qualified customers the option of a 24-month payment plan on 50% of their current overdue bills.
UGI distributes natural gas to about 706,000 residents and businesses in 46 counties.
