Press Release

PUC Approves Lower Rate Increase than Requested by UGI Penn Natural Gas Inc.

Published on 8/31/2017

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a settlement that reduces a base rate increase request filed by UGI Penn Natural Gas Inc. (UGI PNG) on Jan. 19, 2017.

The Commission voted 4-0 to approve the settlement, which reduces UGI PNG’s requested rate increase by more than 48 percent and resolves all other issues related to the company’s request.  UGI PNG’s initial request called for a $21.7 million (10.4 percent) increase in annual distribution operating revenues.  Today’s action by the Commission approved a revenue increase of $11.25 million (5.4 percent), which becomes effective Oct. 20, 2017.

Under the settlement, the typical monthly bill for a residential customer using 91.2 hundred cubic feet of gas (ccf) per month will increase by $4.46, from $78.53 to $82.99 (5.7 percent), including purchased gas costs and other surcharges.  Under UGI PNG’s original proposal, the average total monthly bill for the same residential customer would have increased by $8.34 from $78.53 to $86.87 (10.6 percent).

Meanwhile, the typical monthly bill for a commercial heating customer using 29.6 thousand cubic feet (Mcf) per month will increase by $10.78, from $194.25 to $205.03 (5.6 percent). Under the company’s original proposal, the average total monthly bill for the same commercial customer would have increased by $22.35 from $194.25 to $216.60 (11.5 percent).

Additionally, in the approved settlement the parties agreed:

• UGI PNG can implement a three-year pilot Technology and Economic Development Rider to facilitate new gas load and line extensions on the company’s system;

• UGI PNG will designate $100,000 per year of its Energy Efficiency and Conservation Plan for low income projects administered through the company’s Low Income Usage Reduction Program (LIURP); and

• UGI PNG will increase its annual LIURP budget by nearly $50,000, an amount equal to the percentage distribution rate increase for residential customer classes.

A joint petition to approve the settlement was supported by numerous parties, including UGI PNG, the PUC’s Bureau of Investigation and Enforcement, the state Office of Consumer Advocate, the state Office of Small Business Advocate, CAUSE-PA, CEO, Direct Energy, the United States Department of Defense, and two self-represented complainants.

UGI PNG provides natural gas service to about 166,000 residential, commercial and industrial customers in portions of 13 counties throughout northeastern and central Pennsylvania.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner.

For recent news releases and video of select Commission proceedings or more information about the PUC, visit our website at www.puc.pa.gov. Follow the PUC on Twitter – @PA_PUC for all things utility.  “Like” PAPowerSwitch on Facebook for easy access to information on electric shopping.

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 Docket No.: R-2016-2580030

Contact:

• David Hixson
  Deputy Press Secretary
  717-772-2766
  dhixson@pa.gov