PUC Suspends UGI’s Proposed Gas Rate Hike for Further Investigation

Pennsylvania Public Utility Commission

HARRISBURG, PA — The Pennsylvania Public Utility Commission (PUC) announced that it has voted unanimously on Thursday, February 20, to suspend and investigate a proposed rate increase by UGI Utilities Inc. – Gas Division. The proposal, which affects approximately 690,000 residential, commercial, and industrial customers across 46 counties, aims to boost annual operating revenues for natural gas distribution services by $110.4 million, representing a 9.7% increase.

If approved, the plan would raise the average residential customer’s monthly bill, based on usage of 73.7 hundred cubic feet (Ccf) of natural gas, from $104.47 to $115.74, reflecting a 10.8% hike. This significant adjustment has prompted the Commission to assign the matter to its Office of Administrative Law Judge for thorough evidentiary hearings and a recommended decision.

The Commission’s vote to suspend the increase—pending a detailed investigation—was unanimous at 5-0. The PUC emphasized the need for a comprehensive review to ensure fairness and transparency. A final decision on the proposed rate change is expected by October 28, 2025.

This decision aims to balance the interests of both the gas company and its customers, ensuring that adequate revenues are generated to cover necessary infrastructure and maintenance costs while also preventing an excessive burden on consumers.

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