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On February 19, 2026 UGI Utilities, Inc. – Gas Division filed a Petition for Emergency Order from the Pennsylvania Public Utilities (PUC) Commission to cap the amount of supply cost rate change scheduled for March 1, 2026.  The Commission responded quickly issuing an  order granting UGI’s emergency petition.

Specifically, UGI sought to temporarily reduce the Purchased Gas Adjustment (PGC) Quarterly Adjustment Mechanism (QAM) rate change cap from 25%, as set in a prior proceeding, to 10%, for the March 1, 2026 quarterly C-factor adjustment.

UGI cited “significant price increases” in gas supply costs due to Winter Storm Fern, and said that, under the normal operation of the gas cost rate changes, the PGC would otherwise increase 25% on March 1, 2026

Even if the normal 25% limit on price changes were applied, UGI said that such higher rate would still not fully reflect the gas costs that UGI has incurred since December 1, 2025

UGI said, “Increasing the PGC rate by 25% would further challenge affordability during a very cold winter.”

UGI’s current PGC is $6.7486 per Mcf

A 25% increase in the PGC, as would apply under the normal operation of the PGC quarterly change mechanism, would be $8.4358 per Mcf

UGI’s sought 10% increase would result in a PGC of $7.4235 per Mcf

UGI said that its proposed modification would allow the gas costs to be recovered over a longer period of time, “with a lower bill impact.”

UGI said, “Critically, the temporary 10% cap will help avoid clear and present dangers to life and property by enabling customers, including non-low-income customers, to reduce affordability challenges that could limit access to essential natural gas heating service.”

UGI said, “The Company notes that it is not proposing any modification to the previously utilized process for the recovery of costs over the cap at this time; those costs may be addressed in the Company’s upcoming PGC proceeding.”

UGI Gas requested emergency approval on an ex parte basis, with approval at the PUC’s February 19, 2026 meeting

In its petition, UGI represented that the Office of Consumer Advocate does not oppose the emergency request.

UGI Utilities, Inc. submitted an Ex Parte Petition for Emergency Relief to temporarily reduce the gas utility’s Purchased Gas Adjustment (“PGC”) Quarterly Adjustment Mechanism (“QAM”) rate change cap from 25% to 10% for the March 1, 2026 quarterly C-factor adjustment.

In its petition, UGI Gas requests that the Commission grant its Petition for Emergency relief by the next Public Meeting date scheduled to occur on February 19, 2026.

In the petition, UGI indicated that the Office of Consumer Advocate has indicated does not oppose the petition for emergency relief.

As background, the 2023 PGC Settlement at Docket No. R-2023- 3040290, the Company agreed to cap quarterly PGC rate changes at 25% of the current PGC rate and to bring forward amounts over this cap for inclusion in subsequent quarterly adjustments. The Company agreed to continue this approach in Paragraph 30 of its 2025 PGC Settlement at Docket No.  R-2025-3054938.

UGI has indicated, however, that “[d]uring this current winter period, UGI Gas has experienced natural gas commodity prices that are above the amount forecasted in its December 1 PGC rate, including significant price increases due to Winter Storm Fern.

UGI Gas further indicates that if the utility applies “the currently approved QAM method for its March 1, 2026 adjustment, the PGC rate will increase by 25%. Even at the 25% cap, UGI Gas will not be able to fully reflect the gas costs incurred since December 1, 2025.”

“In light of the very cold winter, UGI Gas customers have received winter heating bills that are larger than in recent winters, due to larger gas consumption. Increasing the PGC rate by 25% would further challenge affordability during a very cold winter.”

“UGI Gas seeks a temporary modification to its QAM for March 1, 2026 to support PGC customer affordability during the peak winter heating season. Specifically, UGI Gas requests permission to lower the 25% PGC rate cap to 10% for the QAM effective June 1, 2026. The total bill impacts on an average residential customer bill are as follows:

Current                        10% Increase              25% Increase

PGC Rate ($/Mcf)                              $6.7486                       $7.4235                       $8.4358

Average Residential Bill                    $119.67                       $124.72                       $132.29

Average Residential Bill Increase (%)                                   4.2%                            10.5%