PUC Approves UGI CPG Base Rate Increase August 2009

Reading, PA – UGI Central Penn Gas (UGI CPG) announced today that the Pennsylvania Public Utility Commission has approved a settlement of UGI CPG’s base rate case. The settlement results in a UGI CPG increase of $10.0 million, compared to an original request of $19.6 million, filed on January 28, 2009.

The higher base rates for customers will become effective on August 28, 2009. The typical residential heating customer who consumes about 80 Dekatherms of natural gas per year will see their overall bill increase by $8.68 per month, from $94.42 to $103.10 per month, or by 9.2%. Bills for commercial and industrial retail customers will increase by approximately 4.6% as a result of the higher base rates, with the level of increase varying according to the type of service provided. This comparison reflects UGI CPG’s current Purchased Gas Cost (PGC) rates.

In fact, UGI CPG expects that the base rate increase will be more than offset by a projected 19% drop in PGC rates to begin on December 1. While actual market conditions for natural gas may result in a larger or smaller decrease, UGI CPG customers are expected to pay significantly lower prices for retail natural gas service this coming winter than they paid last year.

Base rates cover the cost of operating and maintaining UGI CPG’s natural gas distribution system. These rates also cover the costs associated with customer services such as billing, meter reading and 24-hour emergency response.

According to Peter G. Terranova, UGI CPG’s vice president of marketing, rates and supply, “We believe that the settlement represents a fair outcome for both the Company and our customers. We are sensitive to the impact that any rate increase will have on customers during these difficult economic times. Throughout the settlement process we worked to balance the rate impact on our customers with the need to maintain safe and reliable gas service.”

Natural gas continues to be an excellent value. UGI CPG recommends that customers use energy wisely and improve the efficiency of their homes. UGI CPG offers a free budget billing plan which helps spread bill payments more evenly throughout the year. Customers with a limited or fixed income are encouraged to call UGI CPG to determine if they are eligible for one of several energy assistance programs. Finally, any customer who is behind on their gas bills should contact UGI CPG as soon as possible to discuss a payment arrangement.

UGI Central Penn Gas, Inc. is a wholly owned subsidiary of UGI Utilities, Inc. UGI Central Penn Gas serves approximately 76,000 customers in 35 counties in eastern and central Pennsylvania, including customers in and around Bedford, Clearfield, Coudersport, Hamburg, Huntington, Lewistown, Lock Haven, Fryburg, Lehighton, Oxford, Pittston, Pottsville, Port Allegany, Shamokin, Shippensburg, Stroudsburg, Troy, Waynesboro and Wellsboro. Additional information about UGI Central Penn Gas is available at www.ugi.com.