Notice of Proposed Distribution System Improvement Charge
UGI Utilities, Inc. – Electric Division (UGI Electric) has filed a request with the Pennsylvania Public Utility Commission (PUC) to implement a Distribution System Improvement Charge (DSIC) to recover reasonable costs incurred for UGI Electric to accelerate the improvement and replacement of infrastructure that UGI Electric uses to deliver electric distribution services to its customers.
The PUC encourages the use of a DSIC, which allows natural gas, electric, water and wastewater companies to accelerate the replacement of aging facilities. DSIC charges reduce the frequency and the associated costs of base rate cases while maintaining a high level of customer protection. DSIC charges are designed to provide customers with improved service quality, greater rate stability, increased safety and fewer system interruptions.
UGI Electric’s request is subject to review by the PUC, and the PUC may approve, modify, or reject the request. The PUC will examine the requested DSIC and may delay the implementation of a DSIC until it investigates and/or holds hearings on the request. You may examine the material filed with the PUC, which explains the requested DSIC and the reasons for it. A copy of this material is also kept at UGI Electric’s office.
If the PUC approves the DSIC, it must be updated on a quarterly basis to reflect eligible infrastructure that UGI Electric places in service. The DSIC charge is limited to 5 percent of distribution revenues.
The proposed effective date for the initial DSIC is January 1, 2020. The actual effective date will depend on when the DSIC is approved by the PUC. The proposed initial rate is 0.00%, until such time as UGI Electric exceeds the plant included in its base rate proceeding at Docket No. R-2017-2640058.
There are three ways to challenge a company’s request to implement a DSIC:
- You may file a formal complaint. If you want a hearing before a judge, you must file a formal complaint. By filing a formal complaint, you assure yourself the opportunity to take part in any hearing about the DSIC request. All complaints should be filed as soon as possible. The PUC may grant all, some, or none of the request without holding a hearing before a judge.
- You may send the PUC a letter stating your objection to the requested DSIC. Information in these letters can be helpful when the PUC reviews the DSIC request. Send your letter to the Pennsylvania Public Utility Commission, P.O. Box 3265, Harrisburg, PA 17105-3265.
- You may be a witness at a public input hearing. Public input hearings are held if the PUC opens an investigation of the company’s DSIC request and if there are a large number of customers interested in the case. At these hearings, you have the opportunity to present your views to the PUC judge hearing the case and the company representatives. All testimony given under oath becomes part of the official rate record.
For more information, call the PUC at 1-800-692-7380. You may leave your name and address so that you can be notified of any hearings that may be scheduled in this case.
UGI UTILITIES – GAS DIVISION BASE RATE FILING:
January 28, 2019 – UGI Utilities, Inc.’s Gas Division (UGI Gas) is filing a request with the Pennsylvania Public Utility Commission (PUC) to increase your natural gas distribution rates as of March 29, 2019.
UGI Gas has requested an overall distribution rate increase of $71.1 million per year or 8.9%, which will be recovered from customers served in each of the three rate districts of UGI Gas (South District, North District, and Central District). This request also includes a proposal to create uniform distribution rates and purchased gas cost rates so that all customers of a rate class, in all three rate districts, will be charged the same amount for the same level of service. Creation of a uniform rate will affect customers in each of the districts differently based on the current level of the rates charged in each district.
Read full notices based on your district. These notices describe the UGI Gas rate request, the PUC’s role, and what actions you can take.:
- UGI South District Customers – Read Full Customer Notice
- UGI North District Customers – Read Full Customer Notice
- UGI Central District Customers – Read Full Customer Notice
To view the full base rate filing, click here.