UGI Electric Files Base Rate Increase Request
27 Jan 2023
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 $11.4 million annually. The base rate increase would fund ongoing system improvements and certain information technology investments necessary to support customer service activities and maintain safe and reliable electric service.
“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,” Eric Sorber, Vice President and General Manager- UGI Electric Division, said.
Sorber noted that since its last base rate case in 2021, UGI Electric has made and continues to make significant system investments to improve the quality and reliability of service to the Company’s customers. These include construction of a new substation and upgrading of UGI’s Outage Management System.
“Adding anticipated investments included in this base rate increase request, UGI Electric will have invested nearly $70.5 million in the distribution system since the last time UGI Electric filed a base rate case,” Sorber said.
These investments include accelerated repair, replacement or improvement of aged and aging distribution infrastructure on its system and the ongoing upgrade of UGI Information Technology systems.
UGI Electric’s base rate increase request will impact only the delivery charge component of customers’ electric bills. The delivery charge, which this proposal would increase for certain customers, 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 $192.73 to $209.96 per month or by 8.9 percent.
The total bill for a commercial customer using 1,000 kWh per month and receiving default power supply service from the company would increase from $199.06 to $220.49 per month or by 10.8 percent.
The total bill for an industrial customer using 50,000 kWh per month and receiving default power supply service from the company would increase from $6,455.07 to $6,475.18 per month or by 0.3 percent.
UGI Electric is requesting that the new electric rates take effect March 28, 2023. 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 the Fall 2023.
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” link 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 63,000 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.