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UGI Utilities Inc. Friday said it filed a request with the Pennsylvania Public Utility Commission for an $82.7 million annual base rate increase to recover costs for the company’s natural gas service system upgrades.
Monthly rates would increase across the board with residential heating customers seeing the highest monthly jump of 9.5 % if the request is approved, the utility said. The total bill for a residential heating customer using 73.1 hundred cubic feet of natural gas per month would increase to $108.01 from $98.62 if the rate hike was fully approved, the utility said.
UGI Utilities, Inc., Gas Division, serves more than 672,000 customers in 45 counties statewide, including Northeastern Pennsylvania.
In a press release, Christopher Brown, UGI Vice President and General Manager, Rates and Supply, said,“This rate increase will support ongoing distribution system improvements and technology system upgrades.”
The increase would cover more than $795 million in infrastructure, facilities and information technology upgrades not included in the existing delivery charge rates, the utility said.
“A significant part of our ongoing investments is an infrastructure betterment initiative designed to replace all non-contemporary pipelines with those made of contemporary materials,” Brown said.
Also included in the filing is a Weather Normalization Adjustment rate that’s designed to stabilize distribution charges when usage changes due to colder or warmer than normal temperatures. The adjustment would be reflected in the distribution charge and apply to residential and certain commercial customers and go into effect in the November 2022 billing cycle, the utility said.
The utility asked that the increase go into effect on March 29, but the PUC typically suspends the effective date in order to investigate the request and hold public hearings. It’s estimated the process would take nine months, delaying any increase until late October.
Customers and interested parties may view UGI’s base rate filing materials on the UGI website at www.ugi.com and click on “View Customer Notice” on the Rate Filing link. Customers with questions may also call UGI toll-free at 1-800-276-2722 to receive further information on the proposed rate increase or to find out what actions they make take.