UGI’s natural gas customers could see higher bills later this year.
UGI Utilities’ gas division filed a request Wednesday with the Pennsylvania Public Utility Commission (PUC) to increase its base rates for residential, commercial and industrial customers by $99.4 million annually.
According to UGI, if the increase is approved, the total monthly bill for a:
– Residential heating customer using 68.7 ccf per month would increase from $113.64 to $123.55 per month, or by 8.7%.
– Commercial heating customer using 26.8 mcf per month would increase from $336.74 to $358.17 per month, or by 6.4%.
– Industrial customer using 54.6 mcf per month would increase from $647.57 to $688.65 per month, or by 6.3%.
These estimates apply to customers who purchase their natural gas directly from UGI. Those who use an alternate supplier may see differing impacts, the company said.
The rate increase would impact only the distribution charge portion of the bill. According to UGI, that charge funds the installation, operation and maintenance of the gas distribution system as well as customer service, emergency response services, and other activities. UGI’s filing includes over $468 million in investments, the company said.
UGI is requesting that the new gas rates take effect March 29, 2026. However, it’s typical for the PUC to push back the effective date to allow for investigation and public hearings.
According to UGI, the full PUC proceeding is expected to last about nine months from the date of filing, which would delay implementation of the new rates until October 2026.
UGI natural gas customers last saw their bills go up less than two months ago. In September 2025, the PUC approved a rate increase for distribution services that raised the typical residential bill by about 6.7%. UGI had been seeking a larger increase, which would have led to a more than 10% increase.
Those new rates took effect in October 2025.
In addition, UGI’s purchased gas cost rates went up just under 1% in December 2025. The company doesn’t make any money from those types of increases; rather, the wholesale price of natural gas is passed on to consumers.
UGI Utilities, headquartered in Denver, Pa., serves 760,000 customers in portions of 46 counties in Pennsylvania and one county in Maryland.
