UGI wants another rate hike for natural gas customers

UGI proposes 8.7% rate hike for natural gas customers
UGI proposes 8.7% rate hike for natural gas customers Photo credit Visions/iStock/Getty Images Plus

UGI Utilities filed a formal request with the Pennsylvania Public Utility Commission (PUC) on Wednesday, January 28, seeking to increase its annual natural gas base rates by $99.4 million. If the proposal is approved, a typical residential heating customer would see their total monthly bill rise by approximately 8.7%, or about $10 per month. Commercial and industrial customers would face average increases of 6.4% and 6.3%, respectively.

The company stated that the additional revenue is necessary to fund over $468 million in infrastructure investments, including safety improvements to its distribution system and the replacement of older pipelines with modern materials. While UGI has requested that the new rates take effect on March 29, 2026, the PUC traditionally suspends such requests for a nine-month investigation and public hearing process. This means that if any increase is granted, it likely would not appear on customer bills until October 2026. This filing comes only months after the PUC approved a separate 6.7% rate increase for the utility that went into effect in late 2025.

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