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Parties Reach Settlement in Utility’s Purchased Gas Cost Proceeding
On August 25, 2026, a Joint Petition for Settlement and Joint Stipulation for Admission of Evidence was filed with the Pennsylvania PUC in the UGI Utilities UGI’s annual 1307(f) purchased gas cost (PGC) proceeding at the Commission.
This stipulation remains subject to the PA PUC’s final approval.
The settlement is among the Bureau of Investigation and Enforcement (I&E) of the Pennsylvania PUC and the Office of Consumer Advocate, UGI Utilities Gas Division.
This stipulation includes a recommendation to increase in UGI’s hedging of natural gas supplies procured to serve default service customers.
Under the settlement, for the Winter 2027-2028 hedge planning cycle, UGI Gas would work with its existing hedging manager to establish an increased hedging volume target and to extend the hedge purchasing window to a two-year horizon.
UGI Gas would evaluate opportunities to incorporate additional storage capacity into its supply portfolio on an ongoing basis, and would include an economic analysis of any added storage contract(s) in UGI’s next annual PGC filing following contract execution.
UGI Gas has also agreed to explore analytical tools to modernize UGI’s planning and forecasting practices and would present recommendations in its 2027 PGC proceeding.
As part of the statement filed with the PUC in support of the settlement, UGI stated, “[t]hese modifications to the Company’s practices are expected to provide long-term cost benefits and are intended to reduce volatility over time to UGI Gas customers”.
