UGI Utilities, Inc. - Gas Division (UGI) has filed a request with the Pennsylvania Public Utility Commission (PUC) to increase its base rates for residential, commercial, and industrial customers by $99.4 million annually. The proposed increase, announced on January 28, 2026, is intended to recover UGI’s investment in system upgrades and maintain safe and reliable natural gas service.
The company, which serves more than 700,000 customers in 46 counties across Pennsylvania, stated that the rate adjustment is necessary to fund ongoing infrastructure improvements. These upgrades are designed to enhance the safety and reliability of the natural gas distribution system, which is critical for meeting the energy needs of homes and businesses throughout the region.
According to UGI, the proposed rate increase reflects the costs associated with modernizing pipelines, replacing aging equipment, and implementing new technologies to improve operational efficiency. The company emphasized that these investments are essential to ensure continued compliance with federal and state safety regulations and to support future demand growth.
The filing is now subject to review by the PUC, which will evaluate the justification for the rate increase and determine whether to approve, modify, or reject the proposal. The process includes public hearings and opportunities for customer input, with a final decision expected later this year.
If approved, the rate increase would affect all customer classes, including residential, commercial, and industrial users. UGI noted that the exact impact on individual bills would depend on usage patterns and the final rate design approved by the PUC.
For more details on the announcement, including downloadable images and additional information, visit the full announcement at UGI's website. The company also provides resources for customers seeking assistance with energy costs or understanding the rate review process.
UGI Utilities, Inc. - Gas Division is a subsidiary of UGI Corporation, a distributor and marketer of energy products and services. Additional information about the company is available at http://www.ugi.com.
The proposed rate increase underscores the ongoing challenges faced by natural gas utilities in balancing the need for infrastructure investment with affordability for customers. As energy demands evolve, utilities like UGI are under pressure to modernize systems while managing regulatory and cost constraints.
