The Pennsylvania Public Utility Commission has approved a smaller-than-requested rate increase for UGI Utilities Inc. – Gas Division, while requiring new consumer protections and safety measures.

The commission voted 5-0 to adopt a settlement that allows UGI Gas to raise base rate revenues by $69.5 million (8.9%) — $40.9 million less than the $110.4 million (14.1%) the company originally sought.

For residential customers, the monthly customer charge will rise by $1.25 instead of the $4.95 proposed by the company. A typical household using 72.9 hundred cubic feet of gas per month will see its bill increase from $103.57 to $110.51 (6.7%), compared to the 10.8% hike UGI requested. The new rates take effect Oct. 28, 2025.

UGI Gas provides natural gas distribution service to approximately 690,000 residential, commercial and industrial customers in 46 counties across Pennsylvania.

Customer Assistance Improvements

• The settlement requires UGI Gas, which serves about 690,000 customers in 46 counties, to expand aid for low-income households, including:

• Using the PUC’s new statewide application for customer assistance programs.

• Adding $1 million annually to its Low-Income Usage Reduction Program starting in 2026.

• Continuing its Low-Income Customer Outreach Pilot.

• Hosting more Winter Assistance Relief Mobilization events.

• Increasing its Operation Share donation by $500,000.

• Waiving reconnection fees for verified low-income customers.

• Modifying its Weather Normalization Adjustment to exclude May and income-qualified customers, with better reporting and communication.Service and Consumer Protections

Other operations

UGI Gas also agreed to:

• Maintain 2024 call center performance levels through 2026.

• Provide annual performance reports to its Universal Service Advisory Committee.

• Expand training for field staff on personal contact before service termination.

Gas Safety

The joint settlement also reinforces two of UGI Gas’ key gas safety requirements:

• Pipeline Restoration Costs – The company will continue producing an annual report for pipeline replacements as part of its Annual Asset Optimization Plan filing, identifying its ten most expensive restoration projects per year over the past three years and specifically identifying costs incurred in excess of the Pennsylvania Department of Transportation restoration standards.

• Methane Detectors – UGI Gas will implement a two-year pilot methane detector program within its service territory. A minimum of 500 units will be deployed, utilizing a combination of Smart Remote Methane Detectors and MDs to allow UGI Gas to study the effectiveness of the SRMDs and MDs and monitor related costs, benefits, concerns, and other issues related to methane detector deployment.