UGI Requests Nearly 9% Gas Rate Hike in Pennsylvania

Proposed increase would raise average residential heating bill from $113.64 to $123.55 per month.

Jan. 30, 2026 at 10:23am

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UGI Utilities, a natural gas provider in Pennsylvania, has filed a request with the state's Public Utility Commission to increase gas rates by nearly 9% starting March 29. If approved, the average residential heating bill would rise from $113.64 to $123.55 per month, a $10 increase.

Why it matters

The proposed rate hike would significantly impact many Pennsylvania residents who are already struggling with the high cost of living. Community organizations are concerned that families will have to make difficult choices between paying for utilities, healthcare, and other basic necessities.

The details

UGI's rate increase request would only impact the distribution charge portion of customers' bills, which covers the installation, operation, and maintenance of the gas distribution system, as well as customer service and emergency response. The company cites over $468 million in investments, including safety improvements and system upgrades, as the reason for the proposed hike.

  • UGI has filed the rate increase request to take effect on March 29, 2026.
  • However, the Pennsylvania Public Utility Commission typically suspends the effective date for general base rate proceedings to allow for investigation and public hearings, which would delay implementation of the new rates until October 2026.

The players

UGI Utilities

A natural gas utility company that serves 690,000 residential, commercial, and industrial customers across 46 counties in Pennsylvania.

Pennsylvania Public Utility Commission

The state agency that regulates public utilities in Pennsylvania and will review and rule on UGI's rate increase request.

Jessica Wallo

The director of community services for United Neighborhood Centers of Northeastern Pennsylvania, who is concerned about the impact of the proposed rate hike on struggling families.

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What they’re saying

“We're hearing concerns, all around, and we have been, from clients who are consumers of UGI. The cost of living, in general, is so expensive and so difficult to maintain that families are choosing which bills to pay. They're maybe putting their health care on the back burner in order to make sure they have heat and electricity, and a roof over their head.”

— Jessica Wallo, Director of Community Services (The Times-Tribune)

What’s next

The Pennsylvania Public Utility Commission is expected to take about 9 months to investigate UGI's rate increase request and hold public hearings before making a final decision, which could result in approving all, some, or none of the proposed hike.

The takeaway

This proposed gas rate increase by UGI highlights the ongoing struggle many Pennsylvania residents face in affording basic utilities and necessities, as the high cost of living continues to strain household budgets. Community organizations are concerned that families will have to make difficult trade-offs to cover these rising utility costs.