Residential heating customers of UGI Utilities Inc.’s Gas Division will see their monthly gas bills decrease by an average of $1.81 beginning July 1 due to a tax relief credit, the company announced in a news release Thursday.
“This decrease comes on top of a previously announced 2.8 percent cut based on lower purchased gas costs effective June 1,” the company said. “The average residential heating customer bill will decrease from $69.36 to $67.55 on July 1.”
In addition, UGI said it has projected that an additional 9.5 percent decrease will become effective Dec. 1, as a result of lower purchased gas costs.
The Pennsylvania Public Utility Commission directed utility companies to provide a credit to customers based on the decrease in federal corporate tax rates and other tax changes under the Tax Cuts and Jobs Act of 2017.
“UGI is pleased to be able to pass on these benefits associated with the Tax Cut and Jobs Act to our customers and we thank the Public Utility Commission for their support,” Paul Szykman, UGI Chief Regulatory Officer, said. “The credit provides additional savings to customers on their energy bills. Combined with the competitive price of economical, locally-produced natural gas, Pennsylvania homes and businesses continue to receive a clear benefit.”
UGI is providing a 5.78 percent credit on the base rate portion of the bill, which is typically comprised of the customer charge and distribution charge of a customer’s bill.
“UGI makes no profit on the purchased gas cost portion of the bill,” the news release said.
UGI’s Gas Division is headquartered in Reading, Berks County and serves approximately 400,000 customers in 16 southeastern Pennsylvania counties, the company said.
Additional information about UGI Gas Division is available at www.ugi.com.
