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Parties filed settlement agreement effective December 1, 2024, that includes among other things: 

• Purchased Gas Cost (“PGC”) rate of $5.4483 per Mcf;
• UGI Gas will be permitted to use a design day figure of 2.32 BCF, which includes 2.26 BCF of design cold firm requirements and 0.06 BCF of capacity reserves for the utility’s firm core market (PGC and Choice Customer markets) needs;
• UGI Gas will accept the peak day offer from Supplier A for 8,394 Dth per day for a 5-year term to address the utility’s identified peak day capacity shortfall;
• UGI Gas will accept the Uniondale 282 Mobile liquefied natural gas (“LNG”) offer from Supplier B for 10,000 Dth per day for a 2-year term beginning with the 2024-2025 winter season;
• UGI Gas will be permitted recovery of costs related to the firm storage capacity Eastern Gas Transmission and Storage (“EGTS”) Open Season for 56,667 Dth per day of deliverability through the utility’s upstream capacity on Texas Eastern and Tennessee and with a term of 21 years;
• UGI Gas will implement a 5-year capacity shortfall plan to establish a capacity target and optimal step-up capacity targets for intermediate years. This 5-year plan will be incorporated into annual Requests for Proposal (“RFP”) processes and refreshed each year;
• UGI Gas will implement recommendations from a hedging strategy consultant including change the strategy of the current hedge program from an even distribution of monthly hedge purchases to a plan that is flexible and has “trigger hedge” amounts that are more heavily weighted towards months where the futures prices have historically been lower than other purchasing months and revise the current schedule for hedge purchases from fixed days on a weekly basis to a market data-driven and informed, analytical determination of the most effective days within each month to purchase hedge positions; and
• UGI Gas agrees to withdraw its proposal for recovery of FERC Participation Costs through PGC rates without prejudice.

Settlement Agreement  (08/15/2024)
R-2024-3048828 (Opened 05/02/2024)
UGI Gas filed its annual 1307(f) pre filing/supporting information 30 days prior to its annual 1307(f).