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Saturday, March 2, 2019

PUC to Investigate Rate Increase Request Filed by UGI Utilities

HARRISBURG – February 28, 2019--The Pennsylvania Public Utility Commission (PUC) today voted to investigate a proposed rate increase submitted by UGI Utilities Inc. – Gas Division (UGI) for natural gas distribution services.

The Commission voted 5-0 to suspend the proposed rate increase request for up to seven months from the time the rates would otherwise have become effective, and to assign the case to the PUC’s Office of Administrative Law Judge for corresponding proceedings and the issuance of a recommended decision.

The UGI request, filed on Jan. 28, 2019, would increase its operating revenues by approximately $71.1 million per year (8.9 percent).

Under the UGI request, which would create uniform rates by rate classes across the utility’s three rate districts – UGI Gas South, UGI Gas North and UGI Central – the average monthly bill for a residential heating customer in the South district would increase from $62.45 to $72.93, an increase of $10.48 or 16.8 percent; the average monthly bill for a residential heating customer in the North district would increase from $89.72 to $97.37, an increase of $7.65 or 8.5 percent; and the average monthly bill for a residential heating customer in the Central district would decrease from $93.68 to $85.91, a reduction of $7.77 or
8.3 percent reduction.

Additionally, the UGI proposal would extend the current temporary federal tax credit on customer bills for a 12-month period, beginning on the effective day of new rates, which would reduce the distribution rate portion of customer bills by 4.5 percent during that 12-month period.

NOTE: In May 2018 the PUC ordered 17 major utilities (including UGI) to begin returning excess federal tax savings to customers, in the form of a monthly credit on customer bills, until each of those utilities could come before the commission with new rate filings – at which point any future tax savings would be considered as part of new rates.

Public input hearings to gather comments about UGI’s rate increase request from concerned residents will be scheduled by the Administrative Law Judge and publicized by the PUC and UGI when dates and locations have been finalized. More information on the ratemaking process is available on the Commission’s website.

UGI provides service to more than 639,000 residents and businesses in 45 counties across Pennsylvania. A final decision by the Commission regarding the UGI request is due by October 29, 2019.


Anonymous said...

Dear UGI,
Here in our dear Potter County, you allow gas (methane pollutant) to spew out of the ground all over the county, even though many of these leaks have been reported for well over 20 years. We residents reside in unconventional Fracking pollutant hell, ruining our environment, roads and water for your (and foreign) financial benefit. And now you want to raise our rates! That is just the icing on the cow patty cake!

Anonymous said...

@10:48. Bravo on bringing up gas line leaks.
There are numerous leaks in Eulalia, Hebron and Roulette Twps. that have been reported for years but never addressed by UGI. A waste of natural resources with the losses being put on the backs of UGI residential customers.
Let's also bring up the UGI employee that likes to nap by the Tri County REC substation at the old tannery ground in Coudersport. If you're gonna grab some zzzz's, ya gotta hide better.
This attitude is the same as Verizon, "We're not gonna fix it til we have to and you better appreciate it!"