(WHTM) — Natural gas users will see a smaller than expected rate change this year.

The Pennsylvania Public Utility Commission, which regulates utility services in the state, announced it approved a rate case settlement with UGI Gas on Thursday.

UGI Gas did not get as large an increase as it wanted.

Under the agreement, a residential customer using 72.9 hundred cubic feet of natural gas a month can expect their bill to increase by 6.7% from $103.57 to $110.51 a month. The new rates apply starting Oct. 28, 2025.

UGI wanted to increase base rate revenues by $110.4 million. Instead, that revenue will increase by $69.5 million, or 8.9%.

The settlement includes a $1.25 adjustment to the monthly residential customer charge, as opposed to the $4.95 increase the company proposed.

UGI also agreed to implement PUC’s common application form, which allows income-eligible customers to apply and recertify for multiple programs through one form, and to increase its investments in certain programs designed for low-income customers.

UGI serves about 690,000 customers across 46 counties in Pennsylvania.