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UGI Utilities announced Wednesday its purchased gas cost rates will rise by 7.6% on Sept. 1. As a result, the average residential heating customer's bill will increase from $106.69 per month to $114.83 per month. Above, a mechanic fuels a truck with natural gas.
UGI Utilities announced Wednesday its purchased gas cost rates will rise by 7.6% on Sept. 1. As a result, the average residential heating customer's bill will increase from $106.69 per month to $114.83 per month. Above, a mechanic fuels a truck with natural gas.
UGI natural gas customers' purchased rates will increase 7.6% starting Thursday, the company announced Wednesday, the fifth such hike in 15 months.
The latest increase means the average UGI residential heating customer will pay more than $8 more per month with their monthly bill increasing from $106.69 to $114.83.
Customers saw their purchased rates increase by 7.4% on June 1.
"Unfortunately, all energy markets have seen significant upward price pressure and natural gas is no different than a number of other fuels that have seen increases over the past year or two," said Joe Swope, a spokesman for UGI. "There has still been strong demand domestically and increased global demand driven in part by political instability, especially in Europe, as well as other factors."
The utility may adjust rates quarterly — March 1, June 1, Sept. 1 and Dec. 1 — to reflect wholesale natural gas price changes.
UGI's purchased gas cost rates increased three times over a six-month period in 2021. Those hikes on June 1, Sept. 1 and Dec. 1 increased the average residential heating customer's bill by about 2.1%, 6.1% and 9.6%, respectively.
Swope stressed UGI doesn't profit on the actual cost of the natural gas.
"We're required to purchase gas at the lowest possible cost and pass it through to our customers with no markup, but energy prices have continued to rise," he said. "No one is happy with higher prices ... it impacts both UGI and our customers."
The delivery charge portion of the bill allows utilities to recoup operational costs, pay for capital projects and earn a profit.
Lisa Durkin, president and CEO of United Neighborhood Centers of Northeastern Pennsylvania, worries residents already struggling to endure challenging economic circumstances will suffer most from the added costs.
"It's getting to a point where I don't know how people are going to stay afloat, let alone get ahead, at least not the families we're working with on a regular basis," she said. "Between the rising costs of food and gasoline, added utility costs price them out of some housing options. It's going to probably make what's been a difficult situation much, much worse."
Since some customers may have difficulty paying their natural gas bill, UGI officials said 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 them in managing bill payments.
Customers with a limited or fixed income should call 1-800-UGI-WARM to determine if they are eligible for energy assistance programs. UGI can also assist eligible customers apply for federally-funded Low-Income Home Energy Assistance Program grants.
UGI Utilities Inc., based in Denver, Pennsylvania, serves more than 670,000 natural gas customers in 45 counties in Pennsylvania.
Contact the writer: rtomkavage@timesshamrock.com; 570-348-9131; @rtomkavage on Twitter.
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