UGI Utilities, Inc. announced that its purchased gas cost rates will not change on June 1, 2026, providing temporary relief to customers. However, the company projects an increase in supply rates effective December 1, 2026, due to expected higher market prices for natural gas.
The announcement, made on May 15, 2026, maintains the current supply rates for the summer months, which typically see lower demand. UGI explained that the projected December increase is driven by anticipated wholesale natural gas price trends. The company adjusts its purchased gas cost rates semi-annually to reflect changes in the market price of natural gas, as part of its purchased gas cost recovery mechanism approved by the Pennsylvania Public Utility Commission.
UGI Utilities, based in Denver, Pennsylvania, serves more than 760,000 natural gas and electric customers across 46 counties in Pennsylvania and one county in Maryland. The company emphasized its commitment to providing reliable energy at the lowest reasonable cost. For more details, customers can visit the full announcement at UGI's website.
The unchanged rates for June come as a welcome development for consumers facing other rising costs. However, the projected increase in December highlights the volatility of natural gas prices and the importance of planning for seasonal changes. UGI encourages customers to explore energy assistance programs and budget billing options to manage their bills. More information is available on Facebook at UGI Utilities Facebook page and on X at UGI Utilities Twitter.
The announcement underscores the broader trends in energy markets, where natural gas prices have been subject to fluctuations due to supply and demand dynamics. UGI's rate adjustment mechanism ensures that customers pay only the actual cost of natural gas, without markup. The company will provide further updates as the December rate change approaches.
