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UGI Central Penn Gas to Increase Natural Gas Costs on June 1; Company Projects No Additional Change for December

17 May 2017

UGI Central Penn Gas (UGI) announced that its purchased gas cost rates will increase on June 1, 2017. As a result, the average residential heating customer’s bill will increase by 8.0 percent.

UGI will also submit its December 1 natural gas cost rate projection in an annual filing with the Pennsylvania Public Utility Commission (PUC) on June 1. At this time, UGI projects no change from the rates implemented on June 1, 2017.

“Wholesale natural gas prices have been subject to upward price pressure over the past six months, and this adjustment reflects those higher costs,” Paul Szykman, UGI’s Chief Regulatory Officer, said. “Nevertheless, with the abundant shale gas resources in Pennsylvania, UGI anticipates natural gas to remain an excellent value compared to other energy sources.”

UGI is required to file its gas cost rates annually for review with the PUC and may adjust these 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.

If UGI’s proposed rates are approved, the bill for a typical residential retail heating customer who uses about 68.4 hundred cubic feet (ccf) of natural gas per month will increase from $86.17 per month to $93.08 on June 1 with no additional change on December 1.

The bill for a typical commercial retail customer using 23.7 thousand cubic feet (Mcf) per month will increase from $206.20 per month to $229.65 on June 1 with no additional change on December 1.

The bill for a typical industrial retail customer using 154.6 Mcf per month will increase from $1,168.54 per month to $1,321.42 on June 1 with no additional change on December 1.

Customers may call UGI at 1-800-652-0550 to receive further information on the proposed rates or to find out what actions they may take.   UGI encourages customers to use energy wisely and make efficiency improvements in their homes.  All customers are encouraged to sign up for UGI’s free budget billing program, which spreads bills out over a 12-month period.  Customers with a limited or fixed income should call UGI at 1-800-UGI-WARM to determine if they are eligible for one of several energy assistance programs.  Finally, any customer who is behind on their gas bills should contact the utility as soon as possible to discuss a payment arrangement.

UGI Central Penn Gas serves approximately 85,000 customers in 35 counties in eastern and central Pennsylvania, including customers in and around Bedford, Clearfield, Coudersport, Hamburg, Huntington, Lewistown, Lock Haven, Fryburg, Lehighton, Oxford, Pittston, Pottsville, Port Allegany, Shamokin, Shippensburg, Stroudsburg, Troy, Waynesboro and Wellsboro. Additional information about UGI Central Penn Gas is available at www.ugi.com.