PUC Modifies Settlement with UGI Gas to Provide More Direct Support to Customers Impacted by Improper Service Terminations

PUC Modifies Settlement with UGI Gas to Provide More Direct Support to Customers Impacted by Improper Service Terminations

Published on 4/16/2026

Filed under: Gas

Modified settlement requires the Company to contribute $200,000 to its Hardship Fund following self-reported incidents in 2022 and 2023

HARRISBURG - The Pennsylvania Public Utility Commission (PUC) today modified a joint settlement with UGI Utilities Inc. - Gas Division (UGI or the Company) regarding the Company's alleged failure to personally contact customers prior to terminating residential natural gas service in 2022 and 2023, in violation of PUC regulations.

The Commission voted 4-1 to approve a Tentative Opinion and Order modifying a March 2025 joint settlement agreement reached by UGI and the PUC's Bureau of Investigation and Enforcement (I&E). The settlement agreement centered on UGI's failure to make personal contact at least three days prior to terminating residential service for thousands of its customers in 2022 and 2023, as well as the Company charging many of those customers a reconnection fee even though the initial service termination was not lawful.

Finding insufficient information to determine if the settlement agreement was in the public interest, last fall the PUC sought supplemental comments from the parties on eight specific inquiries. Following a careful review of this supplemental record, the PUC determined that UGI's delay in undertaking corrective actions weighs in favor of a higher penalty, and therefore has modified the original settlement agreement to reflect the following:

• UGI will contribute $200,000 to its Hardship Fund, Operation Share, in lieu of paying a civil penalty of $90,000 - a modification that can directly help UGI customers impacted by the improper service terminations. This contribution may not be passed through as an additional charge to UGI's customers in Pennsylvania.

According to the settlement, the parties acknowledge that upon identification of the error, UGI restored service and refunded reconnection fees to any customers who had paid them. Additionally, the parties acknowledge UGI's implementation of appropriate corrective measures, in particular with the Company's auto dialer system, as well as remedial measures and modifications to internal policies and procedures.

With today's action, both UGI and I&E may elect to withdraw from the modified settlement agreement by providing written notice to the Secretary of the PUC within twenty days from the date that the Tentative Opinion and Order is entered.

I&E's Informal Investigation

On June 1, 2022, I&E began an informal investigation of UGI based on a referral from the PUC's Bureau of Consumer Services (BCS) regarding UGI's compliance with the PUC's regulations involving the personal contact requirement prior to the termination of residential gas service.

Based on its investigation, which included UGI's responses, I&E determined that compliance issues did occur between March 29, 2022, and March 31, 2022, based on the failure of a UGI vendor's auto-dialer system to make personal contact at least three days prior to the Company terminating residential service for 3,345 customers.

While settlement negotiations were ongoing between I&E and UGI pertaining to the March 2022 incidents, UGI self-reported additional lapses with its auto-dialer system in April 2023 in which another 612 customers were not properly contacted. Of the 612 customers, 184 had their gas service improperly terminated.

I&E's investigation also revealed that, between the 2022 and 2023 incidents, UGI improperly charged reconnection fees to more than 1,900 customers who had their service terminated, also in violation of the PUC's regulations.

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Docket No.: M-2025-3032708

Contact:

• Nils Hagen-Frederiksen
  Press Secretary
  717-418-2701
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• David Hixson
  Deputy Press Secretary
  717-772-2766
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