UGI Utilities, Inc. announced a smaller-than-expected increase in the purchased gas cost rate, effective December 1, 2025, leading to a 0.9% rise in total bills for average residential heating customers receiving gas supply from UGI. The average monthly bill will increase from $118.43 to $119.49, reflecting the utility's ongoing adjustments to natural gas supply costs.
The purchased gas cost rate is a pass-through charge that reflects the price UGI pays to acquire natural gas for its customers. This adjustment, approved by the Pennsylvania Public Utility Commission, ensures that UGI recovers its actual gas supply costs without markup. The 0.9% increase is notably lower than typical seasonal fluctuations, as UGI has managed to secure favorable supply contracts and leverage storage assets to mitigate price volatility.
UGI Utilities serves more than 760,000 customers across Pennsylvania, providing natural gas and electric services. The company emphasizes that the rate change is driven by market conditions, including increased demand and supply constraints during the winter heating season. Customers can find additional information about the rate adjustment and energy-saving tips on UGI's website at www.ugi.com.
This announcement comes amid broader energy market trends, where natural gas prices have risen due to colder weather forecasts and reduced storage levels. UGI's proactive approach to supply management has helped minimize the impact on customers, compared to potential double-digit increases seen in other regions. The utility encourages customers to explore budget billing options and energy assistance programs to manage their bills.
For further details, UGI has provided a full announcement with downloadable resources. Customers can also follow UGI on social media for updates: www.facebook.com/ugiutilities and www.twitter.com/ugi_utilities. Media inquiries can be directed to John Mason at (610) 334-7135.
