Wilkes-Barre, PA (May 16, 2011) – UGI Penn Natural Gas, Inc. (UGI PNG) announced that its purchased gas cost rates will increase on June 1, 2011 due to building price pressure on overall energy costs. As a result, the average residential heating customer’s bill will increase by approximately 3.6%.
On June 1, UGI PNG will also submit its annual filing with the Pennsylvania Public Utility Commission (PUC) to establish purchased gas cost rates for December 1, 2011. UGI PNG currently projects no change from the rates implemented on June 1, 2011.
“Increased upward price pressure on energy commodities, particularly oil, has contributed to a rise in the cost of energy across the board,” said Robert F. Beard, Vice President Marketing, Rates and Gas Supply. “Comparatively speaking, natural gas is the most economical energy choice. Even with this modest price increase, customers who heat with natural gas save on average $1,000 or more per year on their home energy costs over oil or electric.”
By law, utilities can not 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. UGI PNG 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.
If UGI PNG’s proposed rates are approved, the bill for a typical residential retail heating customer who uses about 89 ccf (hundred cubic feet) of natural gas per month will increase from $105.06 per month to $108.80 on June 1 with no additional change on December 1. The bill for a typical commercial retail customer using 26.2 Mcf per month will increase from $256.05 per month to $265.96 on June 1 with no additional change on December 1. The bill for a typical industrial retail customer using 405 Mcf per month will increase from $3,488.74 per month to $3,642.01 on June 1 with no additional change on December 1.
Customers may call UGI PNG at 1-800-276-2722 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. Customers with a limited or fixed income should call UGI PNG 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 Penn Natural Gas, Inc., headquartered in Wilkes-Barre, Pennsylvania, is a wholly owned subsidiary of UGI Utilities, Inc. UGI Penn Natural Gas serves approximately 158,000 customers in 13 counties throughout northeastern and central Pennsylvania. For more information, visit www.ugi.com.