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UGI plans 8.3% rate hike

A miscalculation in gas costs means UGI customers will pay more for natural gas going into the colder season.

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UGI Utilities says its purchased natural gas cost rates will increase on September 1.

Pennsylvania Public Utility Commission Administrative Law Judge Susan Colwell, second from right beside a court reporter, presides over a hearing April 4, 2016, outside Allentown on UGI Utilities Inc.’s request for an increase in the base rate portion of residential customers’ bills.

UGI Utilities customers will be paying about 8 percent more for natural gas beginning Thursday.

In a news release, UGI said it is the first hike in the purchased gas cost since June 2014. UGI customers have enjoyed both savings and price stability in their natural gas bills in recent years thanks to locally produced shale gas.

Also as part of the settlement with the PUC, UGI agreed to put almost $2.7 million of the overall $27 million base rate increase toward funding for the first year of a new Energy Efficiency and Conservation plan. Utilities earn no profit on the rate. The original request would have increased the same bill from $51.77 to $61.97, or 19.7 percent, officials said.

UGI offers a budget billing program, which spreads bills out evenly over a 12-month period.

In addition, customers with a limited or fixed income should call UGI at 1-800-UGI-WARM (1-800-844-9267) to determine if they are eligible for one of several energy assistance programs. Services include payment arrangements.

According to the press release, UGI encourages customers to use energy wisely and make efficiency improvements in their homes.

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The company sells natural gas to 372,000 customers in 16 counties.

UGI's 19.7 percent rate hike criticized at Lehigh Valley hearing