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UGI Utilities has filed a request with the Pennsylvania Public Utility Commission (PUC) to increase natural gas base rates for its customers, potentially raising monthly bills later this year.
The utility company is seeking a $99.4 million annual increase that would affect residential, commercial, and industrial customers across its service area, according to the UGI Website. If approved, residential heating customers using 68.7 ccf per month would see their bills increase from $113.64 to $123.55 monthly, representing an 8.7% jump.
Commercial and industrial customers would face smaller percentage increases of 6.4% and 6.3% respectively, though their actual dollar amounts would be higher due to greater usage volumes.
UGI states the rate increase is necessary to recover investments in system upgrades and maintain reliable natural gas service. The filing includes over $468 million in investments for critical safety improvements to the gas distribution system and upgrades to facilities and information technology.
"This increase request would only impact the distribution charge portion of the customer's bill," UGI explained in its filing. This charge funds installation, operation and maintenance of the gas distribution system as well as customer service and emergency response services.
The company has requested the new rates take effect March 29, 2026, but WFMZ reports that the PUC typically suspends the effective date to allow for investigation and public hearings. The full regulatory review process is expected to take approximately nine months, which would delay implementation until October 2026.
This request comes less than three months after UGI's most recent rate increase. In September 2025, the PUC approved a distribution service rate increase that raised typical residential bills by about 6.7%, with those rates taking effect in October 2025. Additionally, UGI's purchased gas cost rates increased by just under 1% in December 2025.
Customers who purchase natural gas from alternative suppliers may see different impacts from the proposed rate changes. UGI has also requested to extend its current Weather Normalization Adjustment by an additional five years with certain modifications.
UGI Utilities serves approximately 760,000 customers across 46 Pennsylvania counties and one Maryland county. Customers interested in reviewing the complete filing can find documents on UGI's website under the "rate filing" link or by searching for Docket No. R-2025-3059523 on the Pennsylvania Utility Commission website.