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PUC Adopts Gas Utility Ratee Case Settlement Without Modifications
On October 1, 2026 the Pennsylvania Public Utility Commission (PUC) issued a press release announcing the approval of a settlement that substantially reduces rate changes sought by UGI Utilities Inc. – Gas Division (UGI) – cutting UGI’s initial request by nearly 35% while enhancing customer service, expanding programs for income-qualified residents, and advancing new gas safety measures.
The Commission voted 3-1 to adopt the recommended decision of PUC Administrative Law Judges F. Joseph Brady and Alphonso Arnold III, who recommended the approval, without modification, of a Joint Petition for Approval of Settlement filed by the PUC’s independent Bureau of Investigation & Enforcement, UGI, the Office of Consumer Advocate, the Office of Small Business Advocate, and the Retail Energy Suppliers Association. Additionally, the Coalition for Affordable Utility Services and Energy Efficiency in Pennsylvania (CAUSE-PA) filed a letter indicating that it does not oppose the settlement.
Revenues and Rates
As approved, the settlement provides for an additional $65 million (5.3%) in annual operating revenues for UGI, compared to the company’s initial request for an additional $99.368 million (8.05%). The $65 million rate adjustment will be “phased in” – spread out over two phases to mitigate its potential impact on UGI customers:
- $40 million, effective Oct. 1, 2026, and
- $25 million, effective Oct. 1, 2027.
Under this framework, the average monthly bill for a residential customer using 68.8 Ccf per month will increase by a total of $6.45 (5.7%) with a similar two-step phase-in – from $113.76 to $117.69, effective Oct. 1, 2026, and then from $117.69 to $120.21, effective Oct. 1, 2027. In its filing, the company had initially proposed a one-time increase of $9.91 (8.7%) for the same residential customer, from $113.76 to $123.55 (8.7%).
UGI also proposed an increase in its residential customer charge, from the current $16.25 to $23 per month. Today’s settlement allows for a smaller, incremental increase in the residential customer charge from $16.25 to $20 per month – with the customer charge set at $19, effective Oct. 1, 2026, and then $20, effective Oct. 1, 2027.
Additionally, the settlement contains a “stay-out” provision in which UGI agrees not to file another base rate increase until at least January 15, 2029.
