Rep. Bresnahan sends letter urging PUC to reject UGI rate increase

WILKES-BARRE — U.S. Rep. Rob Bresnahan Jr., on Thursday sent a letter to the Pennsylvania Public Utility Commission PUC urging the agency to reject a 10.8% rate hike on utilities recently proposed by UGI Utilities UGI.

“I write to express my absolute opposition to the proposed 10.8% rate hike which UGI Utilities (UGI) is seeking to impose on my constituents in Pennsylvania’s 8th Congressional District, which is home to more than 764,000 residents,” Bresnahan wrote. “This proposed rate hike will severely hurt a population still feeling the impacts of record inflation. It is reckless in nature and should immediately be withdrawn.”

On Jan. 27, UGI submitted a petition to the PUC requesting a rate hike for residential, commercial and industrial customers. These increases — which range from 7.5% for industrial customers to 10.8% for residential customers — would raise $110.4 million annually for UGI.

Bresnahan said UGI most recently increased rates on residential customers by 8.7% in December 2024 — just a month before the Jan. 27 request.

In addition to Rep. Bresnahan’s request for PUC to reject the proposal, the freshman member of Congress also requested that the PUC “hold a public field meeting in Northeastern Pennsylvania, so residents can voice their concerns about how this proposed hike will cause immediate financial agony.”

Bresnahan first addressed the issue on Jan. 28 — one day after UGI filed its request.

In his letter to the PUC, Bresnahan said the 8th Congressional District has the second lowest median income of all Congressional districts in Pennsylvania. The median household income in the district is $61,140, ranking 353rd of all Congressional districts.

“My district ranks in the bottom quartile of lowest median income districts nationwide,” Bresnahan wrote. “While the price of natural gas commodities has decreased, our corner of Pennsylvania still reels from the loss of coal and textile jobs. Recent food and energy inflation still hurts my constituents, who I hear from on a daily basis.”

Bresnahan also wrote that the recent proposed rate increase came on the same day that UGI Energy Services — a subsidiary of UGI Corporation and the parent company of UGI Utilities — announced a $120 million acquisition of Superior Midstream Appalachian LLC, through a joint venture with Stonehenge Energy Resources.

Bresnahan also noted in his letter that on Feb. 20, the PUC voted 5-0 to suspend and investigate the recent proposed rate increase, stating that the case has been referred to the PUC’s Office of Administrative Law Judge for a final decision due by Oct. 28.

“I am grateful for this intervention, and I invite the PUC to hold a public field meeting in Northeastern Pennsylvania, so residents can voice their concerns about how this proposed hike will cause immediate financial agony,” Bresnahan wrote. “Rather than focus on delivering relief to consumers and ensuring residents don’t have to choose between food, medicine and heat during a historically cold winter, UGI Corporation is choosing to invest in a bloated leadership regime.”

Rep. Bresnahan wrote that in fiscal year 2024, UGI:

• Reported record earnings before interest and taxes (EBIT).

• A $75 million reduction in operating and administrative expenses.

• A $460 million reduction in debt.

• And $318 million in dividend payments to shareholders.

“Additionally, their executive compensation packages can range up to a $1.15 million base salary, $300,000 signing bonus, annual bonus plan (125% of annual base salary), relocation reimbursement and equity plan (valued at $5.11 million) for certain high-level executives” Bresnahan wrote. “While an additional $10 per billing cycle may not be much to multi-million-dollar executives, it is a lot to the working families, single parents and seniors in Northeastern Pennsylvania.”

Bresnahan closed his letter by stating, “The people of Northeastern Pennsylvania deserve better than this. I strongly urge the PUC to reject this proposed rate hike, hold a public field hearing in my district and protect our most vulnerable residents. This is an opportunity for the PUC to protect the public interest and ensure our communities and neighbors can continue to grow without undue rate hikes on this essential service.”