UGI Electric Division files for $8.7M annual base rate increase in Pennsylvania
In an effort to fund system improvements and information technology investments for reliability’s sake, UGI Electric Division filed a request with the Pennsylvania Public Utility Commission (PUC) this week to increase its base rates for electric distribution by $8.7 million annually.
UGI’s last base rate case was in 2018. Since then, it has made significant system investments into improving the quality and reliability of its service, including accelerated repair, replacement, and improvement of old infrastructure and updates to its IT systems. If the new rate increases are approved, it will have invested nearly $51 million into the distribution system since that last case, according to Christopher Brown, UGI vice president and general manager of rates and supply.
“UGI Electric is working hard to manage costs and improve system performance while continuing our commitment to safely and reliably deliver electricity to our customers and the many communities we serve,” Brown said. “Our electric distribution rates remain among the lowest rates in Pennsylvania.”
An average residential customer using approximately 1,000 kilowatt-hours per month could see their monthly bills increase from $110.18 to $123.83 if the PUC approves. For commercial customers using the same, bills could go from $120.40 to $135.62. However, industrial customers using 50,000 kWh per month would actually see their bills decrease, from $3,931.30 to $3,897.36 per month. All of this would take effect as of April 9, 2021, although PUC proceedings are expected to last around nine months, delaying implementation until November.
In addition to the rate increase request, UGI may also launch an Emergency Relief Program to assist customers financially hit by the ongoing COVID-19 pandemic.
