Curated News
By: NewsRamp Editorial Staff
February 27, 2026
UGI Wins PUC Approval to Cap Gas Rate Hike at 10%, Saving Customers from 25% Increase
TLDR
- UGI Utilities secured regulatory approval to cap its natural gas cost increase at 10%, protecting customers from a potential 25% rate hike and demonstrating effective cost management.
- UGI Utilities petitioned the Pennsylvania PUC to lower its purchased gas cost rate increase from 25% to 10% for its March 1, 2026 quarterly adjustment, which was approved.
- This decision by UGI Utilities and the PUC helps over 760,000 customers by limiting rate increases, making energy more affordable and reducing financial strain on households.
- UGI Utilities serves natural gas and electric customers across 46 Pennsylvania counties and one Maryland county, updating rates quarterly based on actual supply costs.
Impact - Why it Matters
This regulatory decision directly impacts over 760,000 UGI customers across Pennsylvania and Maryland by significantly reducing their upcoming natural gas bills. With energy costs being a substantial portion of household expenses, particularly during winter months, this cap prevents what would have been a dramatic 25% increase, instead limiting it to 10%. For families and businesses already facing inflationary pressures, this represents meaningful savings and greater budget predictability. The outcome demonstrates how utility regulation can effectively balance company cost recovery with consumer protection, especially important as energy markets remain volatile. It also sets a precedent for how utilities can proactively work with regulators to mitigate price shocks, potentially influencing future rate cases in Pennsylvania and beyond.
Summary
In a significant regulatory development, UGI Utilities, Inc. successfully petitioned the Pennsylvania Public Utility Commission (PUC) to substantially reduce a scheduled natural gas rate increase for its customers. The company, which serves over 760,000 natural gas and electric customers across 46 Pennsylvania counties and one Maryland county, requested that the maximum allowed increase on its purchased gas cost (PGC) rate be lowered from a potential 25% to just 10%, effective for its March 1, 2026 quarterly adjustment. This proactive move by the Denver, Pennsylvania-based utility provider demonstrates its commitment to customer affordability amid fluctuating energy markets, as the PGC mechanism allows UGI to update natural gas supply costs quarterly to reflect actual costs paid on behalf of customers.
The Pennsylvania Public Utility Commission granted UGI's request, preventing what would have been a substantial 25% increase and instead capping the increase at 10%. This decision represents a meaningful victory for consumers who might otherwise have faced significantly higher heating bills during the winter season. The regulatory approval process highlights the important oversight role that state utility commissions play in balancing company needs with consumer protection. For those interested in viewing the full announcement with additional details, they can click here to access downloadable images, executive bios, and comprehensive information about this development.
UGI Utilities maintains an active public presence through its website at www.ugi.com and social media channels including Facebook and X (formerly Twitter), where customers can stay informed about company developments and service updates. The company's regular quarterly adjustments to natural gas supply costs follow established tariff procedures designed to ensure transparency in how energy costs are passed through to consumers. This particular rate case outcome illustrates how utility companies and regulators can work together to mitigate the impact of volatile energy markets on household budgets, particularly important for the hundreds of thousands of Pennsylvania and Maryland residents who rely on UGI for their natural gas service.
Source Statement
This curated news summary relied on content disributed by Reportable. Read the original source here, UGI Wins PUC Approval to Cap Gas Rate Hike at 10%, Saving Customers from 25% Increase
