UGI Electric Division Files Base Rate Increase Request
26 Jan 2018
Reading, PA – UGI Electric Division (UGI Electric) today filed a request with the Pennsylvania Public Utility Commission (PUC) to increase its base rates for electric distribution service to customers by $9.2 million annually. The base rate increase would, in large portion, fund ongoing system improvements and information technology investments necessary to support customer service activities and maintain safe and reliable electric service.
The base rate increase request for UGI Electric is the first since 1996.
“UGI Electric is working hard to manage costs and improve system performance while continuing our commitment to safely and reliably deliver electricity to our customers and the many communities we serve,” Paul Szykman, UGI Chief Regulatory Officer, said.
Szykman also noted that since its last rate case 22 years ago, UGI Electric has made significant system investments.
“Adding anticipated investments included in this base rate increase request, UGI Electric will have invested nearly $70 million in the distribution system since the last UGI Electric base rate case,” Szykman said.
These investments include accelerated repair, replacement or improvement of aged and aging distribution infrastructure on its system; the recent installation of a new state-of-the-art Customer Relationship and Billing (CRB) system, providing greater customer access to UGI programs and services; and new facilities which replace outdated facilities and consolidate operations personnel, materials, supplies and field crews into one location.
The filing also includes a proposed electric vehicle rider, designed to accommodate the expected increase in requests for vehicle charging devices for electric cars and trucks in the future, as well as a storm expense rider designed to track the recovery of significant storm costs.
UGI Electric’s base rate increase request will impact one of the two major cost components that appear on customers’ electric bills. The delivery charge, which this proposal would increase, provides a utility with the funds needed to own, operate and maintain the electric distribution system and provide customer service and emergency response services.
The other component of customers’ bills, which will not be affected by today’s base rate filing, is the generation supply rate commodity charge and reflects the actual cost the Company pays to purchase electricity on the wholesale market, with no profit markup. This rate is applicable to customers who receive default power service from the Company.
If the company’s entire request is approved, the total bill for a residential customer using 1,000 kilowatt-hours (kWh) per month and receiving default power supply service from the company would increase from $112.28 to $125.56 per month or by 11.8 percent.
The total bill for a commercial customer using 1,000 kWh per month and receiving default power supply service from the company would not change from the current bill of $120.74 per month.
Rates for an industrial customer using 50,000 kWh per month and receiving default power supply service from the company would increase from $4,792.16 to $4,860.44 per month or by 1.4 percent.
UGI Electric is requesting that the new electric rates take effect March 27, 2018. However, the PUC typically suspends the effective date for general base rate proceedings to allow for investigation and public hearings. The PUC proceeding is expected to last approximately nine months, which would delay implementation of the new rates until late October 2018.
Customers and interested parties may view UGI Electric’s base rate filing materials on the Company’s website at www.ugi.com and clicking on the “rate filing” tab on the home page.
Customers with questions may also call UGI Electric toll-free at 1-800-276-2722 to receive further information on the proposed rate increase or to find out what actions they make take.
UGI Electric serves approximately 62,000 customers in Luzerne and Wyoming Counties. Additional information about UGI Electric is available at www.ugi.com on Facebook at www.facebook.com/ugiutilities; and Twitter at www.twitter.com/ugi_utilities.