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UGI Rates To Rise

By Denise AllabaughMay 18, 2019

The average UGI residential customer’s bill will increase by about 1.9 percent, the utility announced Friday.

Company officials said the increase is the result of gas cost rates rising for UGI Utilities Inc. - North District on June 1.

But, UGI will submit its Dec. 1 natural gas cost rate project in an annual filing with the Public Utility Commission and company officials project a 2.2 percent decrease for typical residential customers from the rates implemented June 1.

“These changes reflect actual and projected gas costs related to wholesale supply purchases,” said Chris Brown, UGI vice president and general manager of rates and supply. “Natural gas remains a strong value for our customers, backed by low-cost and reliable shale gas supplies.”

UGI officials said they are required to file gas cost rates annually for review with the PUC and the utility may adjust rates quarterly to reflect changes in wholesale natural gas prices.

By law, utilities cannot earn a profit on the natural gas commodity portion of a customer’s bill. Utilities are required to pass the cost of the natural gas they purchase directly through to customers without any markup.

Beginning June 1, the bill for a typical residential heating customer who uses 91.0 hundred cubic feet of natural gas per month will increase from $92.75 to $94.50. If UGI’s proposed rates for Dec. 1 are approved, that bill will decrease to $92.42.

According to UGI, the bill for a typical commercial retail customer using 31.2 thousand cubic feet per month will increase from $250.59 per month to $256.62 on June 1, then decrease to $249.25 on December 1.

Customers can call UGI at 1-800-276-2722 to receive more information on proposed rates or to find out what actions they may take.

They are encouraged to sign up for UGI’s free budget billing program, which spreads bills out over a 12-month period.

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