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UGI Utilities – Gas Division to Increase Natural Gas Costs on June 1; Company Projects No Additional Change for December 1

19 May 2014

READING, PA, May 19, 2014 – UGI Utilities, Inc., Gas Division (UGI) announced that its purchased gas cost rates will increase on June 1, 2014 due to record-breaking winter temperatures and demand during the 2013/2014 winter heating season. As a result, the average residential heating customer’s bill will increase by approximately 4.0%.

UGI will also submit its December 1 natural gas cost rate projection in an annual filing with the Pennsylvania Public Utility Commission (PUC). At this time, UGI projects no change from the rates implemented on June 1, 2014.

“Despite unprecedented demand for natural gas during the 2013/2014 winter heating season, UGI is pleased to announce that we have been able to keep natural gas costs stable for our customers,” said Paul Szykman, Vice President, Rates, UGI Utilities. “As proposed, UGI customers will see minimal increases in two of our three gas divisions and a decrease in cost for our Central Penn Gas customers as we enter the 2014 winter heating season in December.”

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 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. 

If UGI’s proposed rates are approved, the bill for a typical residential retail heating customer who uses about 85 hundred cubic feet (ccf) of natural gas per month will increase from $86.38 per month to $89.85 on June 1 with no additional change on December 1.  The bill for a typical commercial retail customer using 39.3 thousand cubic feet (Mcf) per month will increase from $394.45 per month to $410.24 on June 1 with no additional change on December 1.  The bill for a typical industrial retail customer using 100.6 Mcf per month will increase from $984.11 per month to $1,024.49 on June 1 with no additional change on December 1.

Customers may call UGI 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.  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’s Gas Division is headquartered in Reading, PA and serves 391,000 customers in 15 southeastern Pennsylvania counties. Additional information about UGI Gas Division is available at www.ugi.com.

 

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