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Pennsylvania PUC Grants Emergency Order Capping Supply Rate Change, Despite Concerns From PUC Enforcement Staff
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Pennsylvania PUC Chair Stephen DeFrank granted an emergency order sought by UGI Utilities - Gas Division which will limit the otherwise normally calculated natural gas supply rate change for March 1, 2026
As first reported by EnergyChoiceMatters.com, UGI had sought to decrease the limit of the permissible quarterly supply rate (PGC) change from the current cap of 25%, to a lower rate change cap of 10%.
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
As more fully discussed in our prior story, UGI had cited increased supply costs due to winter storms, higher customer usage due to such weather, and general affordability concerns, in support of its sought 10% cap
DeFrank agreed that, "implementation of a PGC at the 25% cap will
likely result in affordability issues for affected customers," with DeFrank citing such higher supply rate as constituting, "irreparable injury".
"[T]he granting of the request will not be injurious to
the public," DeFrank said
Specifically, UGI was granted authority to reduce its Purchased Gas Adjustment
Quarterly Adjustment Mechanism rate change cap from 25% to 10% for the March 1,
2026 quarterly C-factor adjustment.
UGI had represented that the Office of Consumer Advocate did not oppose the request
However, the PUC's Bureau of Investigation and Enforcement (I&E) did oppose the granting of emergency relief on an ex parte basis
While I&E did not at this time take an ultimate position on the level of the rate cap itself, I&E opposed ex parte emergency relief absent further consideration of concerns that I&E raised
I&E said that the "true impact" of the lower rate cap on future customer bills has not been fully reviewed
I&E said in a Feb. 19 filing that I&E intended to file a formal answer within the 5-day period provided under the PUC's rules
I&E requested a "full and complete" review of UGI's proposal
In granting the lower rate change cap in a Feb. 19 ex parte emergency order, DeFrank said that cost recovery for costs above the cap may be addressed in UGI's upcoming PGC proceeding.
P-2026-3060521
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February 19, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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