HARRISBURG — A distribution rate increase proposed by UGI Utilities’ natural gas division was cut by 40% in a settlement with the Pennsylvania Public Utility Commission, the oversight agency announced Thursday.
The increase will be phased in over two steps: the initial increase begins Oct. 29 with the second increase set for Oct. 1, 2023.
When combined, the average residential customer using 73.1 cubic feet of natural gas monthly will pay an additional $5.71 a month, or $68.52 more annually.
UGI had sought a monthly increase of $9.39, or $112.68 annually, that was reduced by the joint settlement.
Commission members voted 3-0 to approve the settlement. As a result, UGI will realize an increase in base rate distribution revenues of $49.45 million annually. A company spokesman said the additional revenues will fund infrastructure and technology improvements.
The distribution rate charge is separate from UGI’s recently announced increases for natural gas supplies.
Supply rates for UGI gas customers climbed 7.4%, or $7.36 on average monthly, beginning in June. Another supply rate increase began Sept. 1, pushing that charge higher by 7.6%, or about $8.14 on average monthly. Combined, it represents an increase of $186 annually.
Utilities can adjust supply rates quarterly. The next adjustment could come in December.
According to UGI, the company provides natural gas to approximately 672,000 residential, commercial and industrial customers in 45 counties across Pennsylvania.
