Millions in Pa. to see water, sewer, natural gas bills grow
May 19—HARRISBURG — Prices are rising for water and natural gas customers of several utilities, adding to previously announced increases in electric bills.
The gas division of UGI Utilities informed customers on Tuesday that the rate for gas supplies will rise 7.4% beginning June 1 and are projected to rise again on Dec. 1 by 5.3%. With both increases combined, average monthly residential bills will rise to $112.36 for those using 73.1 hundred cubic feet of gas.
Commercial and industrial rates are projected even higher.
The Pennsylvania Public Utility Commission (PUC) previously warned that charges for electric generation across varied utilities would rise beginning June 1 from 6% to 45% on those consumers who don't shop for suppliers in the online marketplace.
UGI has 672,000 customers in 45 counties across Pennsylvania. The increases apply only to customers who use UGI as a default supplier rather than, like in the electric market, those who shop for competitive suppliers.
Gas companies cite rising costs of wholesale gas supplies. It's a dollar-for-dollar pass-through cost and there is no profit to the distributors on the rate.
The purchased gas cost rate for Erie's National Fuel rose on average by $3.36 for residential customers on May 1. The next adjustment date is anticipated on Aug. 1. In its annual projections released last December, the company had projected decreases beginning this summer. However, those projections predate Russia's war in Ukraine and inflation that spiked energy costs.
Adjustments in purchased gas costs are industry standard. They typically occur quarterly. And, it's not always an increase.
Peoples Gas Co. in western Pennsylvania, for example, proposes a slight decrease that would reduce monthly bills for residential customers by about $1.07. The company is in the midst of a merger with a sibling firm pending PUC approval. Columbia Gas of Pennsylvania, with a territory largely in the state's western part, proposes an average 71-cent monthly decrease for residential customers, too. Both would take effect Oct. 1.
However, in UGI's case, the utility is separately proposing an additional 9.5% increase to its base distribution rate, citing infrastructure investments. That adjustment, which would raise monthly residential bills by about $10, is under review by the Pennsylvania Public Utility Commission. If approved as is, UGI would realize an additional $82.7 million in annual revenue. A ruling is expected in late October.
Columbia Gas is proposing a base rate increase, as well, with a ruling expected in mid-December. Average residential bills would rise by more than $12 monthly for the base rate plus an additional increase of $8 monthly in customer charges. The company looks to generate $82.2 million more in annual revenue, citing continued investments in distribution system upgrades.
In the water utility sector, Aqua Pennsylvania's water and wastewater companies were approved by Pennsylvania PUC for respective rate increases. Water customers, the bulk of the business, will see an increase of 9.8% while wastewater customer rates will rise about 50.5%.
Commensurate annual revenue increases approved by PUC equal $50.5 million for water service and $18.7 million for wastewater. The company had sought an additional $86.1 million and $11.5 million annually, respectively.
Aqua hasn't yet submitted a new tariff schedule reflecting how average customer costs will be affected by the dollar, as first reported by The Philadelphia Inquirer. For water service alone, it will be under the near $14 monthly adjustment initial requested by Aqua.
Combined, the two companies serve about 1.5 million Pennsylvanians.
Like Aqua, Pennsylvania American Water has petitioned to raise its own rates as it seeks to raise an additional $173.2 million in annual revenue.
Under the company's proposal, residential customers of PA American would see monthly water bills rise by $15 and wastewater by nearly $20. A decision is pending by PUC with rate changes not anticipated before early 2023.
PA American serves about 2.3 million people in Pennsylvania.
