The typical natural gas bill will go up 4.2 percent starting June 1 for customers of UGI Penn Natural Gas.
At the new rate, the monthly heating bill for a customer using 8.9 thousand cubic feet (Mcf) of gas, will increase from $92.75 to $96.67.
An improving economy and late cold snap prompted increased demand for natural gas, resulting in a dip in supply for the first half of the year, said UGI spokesman Joe Swope. Despite the pending increase, rates remain more than one-third lower than five years ago.
The increase results from a jump in the price UGI pays for natural gas, the "purchased gas cost rate," which will go from the present $5.12 per Mcf to $5.55, an increase of 8.4 percent. Other parts of the bill will not change.
Although UGI has the ability to adjust rates Sept. 1, it rarely does. The new rate will likely stand until Dec. 1.
UGI credits the availability of natural gas with the persistence of comparatively low rates.
"The availability of increasing volumes of reasonably priced, locally produced supply from the Marcellus Shale ... has allowed costs to remain below their 2008 levels," said Vicki O. Ebner, senior vice president at UGI.
The company also issued a tentative Dec. 1 rate, predicting another increase, but a smaller one. Under its projections, gas prices will increase 5 percent to $5.81 per Mcf. That would move the average monthly bill to $99.17, an additional 2.6 percent greater than the current rate.
However, a growing number of gas companies that have shut in supplies from idled wells may be reconsidering as the price of gas inches up to where drawing it becomes economical.
"After being artificially low for some time, prices may be coming into balance," Mr. Swope said.
Contact the writer: dfalchek@timesshamrock.com