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<p>VALLEY FORGE &#8212; UGI natural gas customers will see their rates increase in October, the company announced Thursday.</p><p>The Pennsylvania Public Utility Commission voted to approve, with certain amendments, a settlement on the base rate case of UGI Utilities Inc. &#8211; Gas Division.</p><p>UGI&#8217;s Gas Division serves 372,000 customers in 16 eastern and south central counties in Pennsylvania. Subject to the entry of a final order reflecting Thursday&#8217;s vote, the base rates will increase by $27 million and go into effect on Oct. 19, the company said.</p><p>That means the typical residential customer will see their bill increase $4.17, or 7 percent. The typical commercial customer bill will increase $5.79, or 1.5 percent. The typical industrial customer will see their bill increase $29.41, or 2.2 percent.</p><p>UGI had sought base rate hikes of 19.7 percent, 7.4 percent and 3.2 percent from those three customer classes, respectively.</p><p>Base rates cover the cost of operating and maintaining the natural gas distribution system. These rates also cover the costs associated with customer services such as billing, meter reading and 24-hour emergency response, UGI said.</p><p>A large portion of the base rate is the &#8220;customer charge.&#8221; The settlement with the PUC allows UGI to raise that customer charge by $3.20 a month &#8212; to $11.75 &#8212; or 37 percent. UGI had sought to raise the customer charge to $17.50 a month &#8212; a 105 percent increase.</p><p>UGI said it sought the increase &#8220;in recognition of changes in the natural gas market over the past two decades which include: expanded use of high-efficiency appliances; more energy-efficient housing; and greater consumer awareness of energy conservation. The result of these changes is the average customer uses significantly less natural gas today than at the time of UGI&#8217;s last rate case in 1995.&#8221;</p><p>The base rate hike comes on the heels of an increase in the company&#8217;s purchased gas rates announced Wednesday, which for typical residential customer will increase about $4.28 or 8 percent. The new purchased gas rates took effect Thursday.</p><p>The combined rate hikes will likely increase a typical customer&#8217;s bill by about 10 percent.</p><style>
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<div class="metaInfo"><bylineMeta><p>By Times Leader Staff</p><p>news@www.timesleader.com</p></bylineMeta></div><div class="metaInfo"><shirttailMeta><p>Reach the Times Leader newsroom at 570-829-7242 or on Twitter @TLnews.</p></shirttailMeta></div>

UGI gets OK to raise natural gas customers’ base rates, on top of gas prices