PA Overhang Removed? UGI Settlement A Positive Step... But Not an All Clear

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PA Overhang Removed? UGI Settlement A Positive Step... But Not an All Clear

NORTH AMERICA | Power & Utilities EquityJulyResearch14, 2026

Exhibit 1 - UGI Utilities $Mn Rate RequestPA Overhang Removed? UGI Settlement A

2026 Rate Case is a pending settlement

$120 70%

Request Approved Approved %

60%Positive Step... But Not an All Clear $100

$80 50%

40%

$60Constructive UGI gas rate case settlement at 67% of the request: meaningfully 30%

better than expected even when split across two years. Strong outcome and $40$20 20%10%

a positive readthrough to other cases but not a full relief. Governors Office $0 0%

emphasizes a difference between rate cases filed before and after his April 29th .Source: S&P Capital IQ

letter. Still, the settlement clears much of the overhang on UGI shares, turning We are closely watching UGI's electric rate

case (R-2025-3059430) in which both the

attention back to pace of AmeriGas recovery. Governor and State Representative Jim

Haddock have publicly opposed the 11.9%

UGI: Gas settlement de-risks the regulatory overhang. UGI Utilities Gas (UGI) recently filed a revenue increase - potential action to provide

settlement with +$65M rate relief ($40Mn October 2026 and $25Mn October 2027) and a stay-out a lens for persistent PA utilities overhang.

of a rate case before January 15, 2029 (R-2025-3059523). Intervenors point to 9.7-9.8% implied

ROE as part of the black box settlement, a reasonable outcome and meaningfully better than feared.

We originally estimated rate case outcome of $41mn for FY27. Assuming the rate case settlement is

approved, UGI will not have PA regulatory activity for ~30 months, leaving the focus on the pace of

AmeriGas recovery.

Pancaked rate case but still comes with strong settlement. The award represents roughly two-