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<p>Temperatures are on the rise and so is the cost of natural gas for UGI Penn Natural Gas customers.</p><p>The utility Wednesday said the wholesale cost of the fuel is behind the increase to go into effect on June 1 with expected approval by the Pennsylvania Public Utility Commission. The average residential heating customer&#8217;s bill will increase by 9.8 percent.</p><p>&#8220;Wholesale natural gas prices have been subject to upward price pressure over the past six months, and this adjustment reflects those higher costs,&#8221; Paul Szykman, UGI&#8217;s Chief Regulatory Officer, said in a prepared statement.</p><p>However, Szykman said, &#8220;Nevertheless, with the abundant shale gas resources in Pennsylvania, UGI anticipates natural gas to remain an excellent value compared to other energy sources.&#8221;</p><p>The rate increase is the second consecutive one for UGI PNG customers since March 1. At that time a higher purchased gas cost rate pushed up the average residential heating bill by 2.9 percent.</p><p>Under the new rate the typical residential retail heating customer who uses about 91 hundred cubic feet (Ccf) of natural gas per month will increase to $88.50 per month from $80.58. Similarly, commercial and industrial customers&#8217; bill will increase: the bill for a typical commercial retail customer using 29.6 thousand cubic feet per month (Mcf) will increase to $226.59 from $201.45; the bill for a typical industrial retail customer using 97 Mcf per month will increase to $667.21 per month from $584.58.</p><p>The purchased gas cost rate is not expected to change on Dec. 1 when the utility submits its annual filing. UGI PNG must file its gas cost rate with the PUC and can adjust it quarterly to reflect market conditions. The utility is prohibited by law from earning a profit on it and must pass it along to customers without a markup.</p><p>The June 1 rate will be $4.24 Mcf, UGI PNG said. On March 1 it was $3.39 Mcf and even lower at $3.02 Mcf on June 1, 2016, according to the PUC.</p><p>The utility encouraged customers to use energy wisely and make efficiency improvements in their homes. UGI Penn Natural Gas is headquartered in Reading snd serves 166,000 customers in 15 Northeastern Pennsylvania counties.</p><p>UGI PNG customers can obtain additional information about the rates by calling 1-800-276-2722. The utility offers a free budget billing program that spreads out bills over a 12-month period. Customers with a limited or fixed income should call UGI at 1-800-UGI-WARM to determine if they are eligible for one of several energy assistance programs. Any customer who is behind on their bill should contact the utility as soon as possible to discuss a payment arrangement.</p><p><ins>For other business stories, <a href="https://www.timesleader.com/category/business" rel="noopener noreferrer" target="_blank">click here</a>.</ins></p><style>
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<div class="metaInfo"><bylineMeta><p>By Jerry Lynott</p><p>jlynott@www.timesleader.com</p></bylineMeta></div><div class="metaInfo"><shirttailMeta><p>Reach Jerry Lynott at 570-991-6120 or on Twitter @TLJerryLynott.</p></shirttailMeta></div>

Higher cost of natural gas to hike UGI PNG customers’ bills in June