Northeastern Pennsylvania -
After proposing to increase natural gas rates, UGI announced Friday that customers' rates will decrease starting March 1.
The average residential heating customer's bill will drop by 3% from $79.56 per month to $77.18 per month, according to a press release from UGI.
UGI announced the rate decrease is a result of its purchased gas cost rates decreasing on March 1.
“UGI is pleased to pass along these lower costs to our customers,” Chris Brown, UGI vice president and general manager of rates and supply, said in the press release. “Natural gas remains an excellent energy choice, backed by local low-cost, reliable shale gas supplies. UGI works closely with our suppliers to ensure our customers continue to receive strong value in choosing natural gas.”
By law, utilities are required to pass the cost of the natural gas they purchase directly through to customers without any markup.
UGI's announcement Friday that it will decrease natural gas rates for customers comes after the Pennsylvania Public Utility Commission voted 5-0 Thursday to suspend a decision on UGI's proposal to increase natural gas rates for residential, commercial and industrial customers by $74.6 million annually.
UGI spokesman Joe Swope said there are two parts to a customer's bill: the delivery charge and the actual cost of natural gas.
Since UGI's purchased gas cost rates are dropping, customers' rates will decrease, Swope said. The delivery charge allows UGI to conduct business and the utility is requesting an increase to cover its ongoing costs related to system improvements, he said.
If approved, the total average monthly bill of a residential customer using 73.5 cubic feet per month would increase 10.6% or $8.68 from $81.54 to $90.22 a month.
The PUC will investigate UGI's proposal to raise rates and that process will include public hearings before an administrative law judge, said PUC spokesman Nils Hagen-Frederiksen. The PUC will make a final decision about UGI's request to raise rates by Oct. 28, he said.
Despite the decrease announced Friday, UGI officials said they recognize some customers may have difficulties paying their heating bill.
The company offers budget billing as well as multiple free payment options to customers who enroll in UGI's online bill payment program or the auto-deduction program to assist customers in managing bill payments.
Customers with a limited or fixed income should call UGI at 1-800-UGI-WARM to determine if they are eligible for one of several energy assistance programs.
