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Pennsylvania Gov. Opposes Utility Rate Case Settlement, Which Addresses Retail Market Issues
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Pennsylvania Governor Josh Shapiro has opposed a settlement, which did not appear to be opposed be any active party to the case, which has been proposed in the natural gas rate case of UGI Utilities, Inc. – Gas Division, with the Governor's office stating that the settlement, "is inconsistent with principles that the Governor has articulated as a fair barometer of whether utility rate proposals would result in excessive costs for Pennsylvania customers."
The Governor's office objects to return on equity and capital structure matters
As first reported by EnergyChoiceMatters.com (see full details here, the settlement addresses various retail market issues (including improvements to the market as well as requiring reporting and collaboratives on additional consumer protections regarding POR and retail supplier rates). The Governor's office did not state any objection to the settlement's retail market terms, but any potential modification to the settlement as a result of the Governor's overall position on the settlement could disturb settlement terms negotiated among the parties, or result in rejection of the settlement outright
Parties supporting the settlement include, among others, the PUC's Bureau of Investigation and Enforcement, the Pennsylvania Office of Consumer Advocate, and the Pennsylvania Office of Small Business Advocate, with the Coalition for Affordable Utility Services and Energy Efficiency not opposing the settlement
The Governor's office in a July 28 letter urged the Pa. PUC to reject or modify the settlement by reducing UGI Gas’s ROE to the lowest number supported by the case record, and by imputing to UGI Gas the capital structure of its parent company, or alternatively imputing to UGI Gas the lowest-equity capital structure supported by the record. The Shapiro administration is not an intervenor in the rate case
Only July 31, two Pa. PUC ALJs recommended approval of the settlement without modification, finding that the settlement provides, "a reasonable balance of the competing needs of the stakeholders subject to the ratemaking process: residential consumers -- both those who struggle to pay their bills and those who struggle less -- and small businesses, large industrial customers, and the utility investors".
Among other things, the ALJs stated, "Notably, through approval of the Settlement, UGI customers will be subject to a rate increase that is less than what was initially proposed. The phase-in of the rates over two phases benefits UGI customers by mitigating the impact that the rate increase will have on the customers by spreading out the increase over time. UGI’s agreement through the Settlement to not file for another base rate increase until January 2029 provides its customers with a stability in rates for at least the next few years."
R-2025-3059523
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August 3, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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