UGI announced Tuesday that a monthly rate increase of 7.4% percent for the average residential heating customer will take effect June 1 and that the company is seeking an additional increase in December.
The monthly bill for a typical residential heating customer will increase on June 1 from $99.38 to $106.74, UGI said in a release.
If the proposed projected rates for Dec. 1 are approved, that customer’s monthly bill will increase to $112.36 or an additional 5.3%.
“UGI understands the impact higher energy prices has on the families and businesses that we serve,” Chris Brown, UGI vice president and general manager of rates and supply, said in the release. “While we work diligently to provide value to our customers, the wholesale cost of nearly all forms of energy has increased across the world, including natural gas. Despite the increases announced today, natural gas continues to provide a clean, reliable, and cost-effective energy choice.”
Brown said UGI’s proximity to natural gas from Marcellus shale has helped to mitigate the impact of price increases when compared to the cost of natural gas nationwide.
UGI is required to file its gas cost rates annually for review with the PUC and may adjust these rates quarterly to reflect changes in wholesale natural gas prices. Utilities are not permitted by law to earn a profit on the natural gas commodity portion of a customer’s bill. Utilities are required to pass the cost of the natural gas they purchase directly through to customers without any markup.
UGI said the monthly bill for a typical commercial heating customer will increase on June 1 from $319.28 to $347.69 or 8.9%. If the December rate is approved, that customer’s bill will increase to $369.39 or an additional 6.2%. In the former North rate district, the bill will increase on June 1 from $308.35 to $336.76 or 9.2% and to $358.46 or an additional 6.4% on Dec.1.
The monthly bill for a typical industrial retail customer will increase on June 1 from $967.96 to $1,059.22 of 9.4%, UGI said. If the December rate is approved, that customer’s bill will increase to $1,128.92 or an additional 6.6%. In the former North rate district, the bill will increase on June 1 from $932.85 to $1,024.12 or 9.8% and to $1,093.82 or an additional 6.8% on Dec. 1.
For more information, customers can call UGI at 1-800-276-2722. UGI encourages all customers to sign up for its free budget billing program that spreads bills over a 12-month period. Customers with a limited or fixed income can call UGI at 1-800-UGI-WARM to determine if they are eligible for energy assistance programs.
UGI Utilities Inc. is a natural gas and electric utility headquartered in Denver, Lancaster County, serving more than 730,000 customers in 45 Pennsylvania counties and one county in Maryland.
Source: Berkshire mont