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Pennsylvania Utility Seeks Emergency Cap On Supply Cost
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UGI Utilities, Inc. – Gas Division sought emergency relief from the Pennsylvania PUC to cap the amount of supply cost rate change scheduled for March 1, 2026
Specifically, UGI sought to temporarily reduce the Purchased Gas
Adjustment (PGC) Quarterly Adjustment Mechanism (QAM) rate change cap from 25%, as set in a prior proceeding, to
10%, for the March 1, 2026 quarterly C-factor adjustment.
UGI cited "significant price increases" in gas supply costs due to Winter Storm Fern, and said that, under the normal operation of the gas cost rate changes, the PGC would otherwise increase 25% on March 1, 2026
Even if the normal 25% limit on price changes were applied, UGI said that such higher rate would still not fully reflect the gas costs that UGI has incurred since December 1, 2025
UGI said, "Increasing the PGC
rate by 25% would further challenge affordability during a very cold winter."
UGI's current PGC is $6.7486 per Mcf
A 25% increase in the PGC, as would apply under the normal operation of the PGC quarterly change mechanism, would be $8.4358 per Mcf
UGI's sought 10% increase would result in a PGC of $7.4235 per Mcf
UGI said that its proposed modification would allow the gas costs to be recovered over a longer period of
time, "with a lower bill impact."
UGI said, "Critically, the temporary 10%
cap will help avoid clear and present dangers to life and property by enabling customers,
including non low-income customers, to reduce affordability challenges that could limit access
to essential natural gas heating service."
UGI said, "The Company notes that it is not proposing any modification to
the previously utilized process for the recovery of costs over the cap at this time; those costs
may be addressed in the Company’s upcoming PGC proceeding."
UGI Gas requested emergency approval on an ex parte basis, with approval at the PUC's February 19, 2026 meeting
UGI represented that the Office of Consumer Advocate does not oppose the request
Docket P-2026-3060521
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February 18, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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