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UGI Utilities – South District to Increase Natural Gas Costs on June 1; Company Projects Additional Increase for December 1

17 May 2019

UGI Utilities, Inc. – South Division (UGI) announced that its purchased gas cost rates will increase on June 1, 2019. As a result, the average residential heating customer’s bill will increase by approximately 1.5 percent.

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 an additional increase of 3.8 percent for typical residential heating customers from the rates implemented on June 1, 2019.

“These changes reflect actual and projected gas costs related to wholesale supply purchases,” Chris Brown, UGI Vice President and General Manager of Rates and Supply, said. “Natural gas remains a strong value for our customers, backed by low-cost and reliable shale gas supplies.”

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.

Beginning June 1, the bill for a typical residential heating customer who uses 62.3 hundred cubic feet (ccf) of natural gas per month will increase from $67.38 to $68.39.

If UGI’s proposed rates for December 1 are approved, that bill will increase to $70.97.

The bill for a typical commercial retail customer using 27.1 thousand cubic feet (Mcf) per month will increase from $266.46 per month to $270.78 on June 1 and increase to $281.76 on December 1.

The bill for a typical industrial retail customer using 58.5 Mcf per month will increase from $557.27 per month to $566.59 on June 1 and increase to $590.33 on December 1.

The proposed December 1, 2019 PGC rate may be impacted by the PUC’s final order in the UGI Gas Division base rate proceeding currently under consideration by the PUC. In that case, the Company proposed consolidating the existing stand-alone PGC rates for each rate district (North, Central and South) into a single consolidated PGC rate applicable to all PGC customers.

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 is headquartered in Denver, PA. UGI Utilities, Inc. – South District serves approximately 400,000 customers in 16 southeastern Pennsylvania counties. Additional information about UGI is available at www.ugi.com.

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