UGI Central Penn Gas to Decrease Natural Gas Rates 9% on June 1, 2009; Utility Requests Additional 19% Rate Decrease for December 1

Reading, PA (May 15, 2009) – UGI Central Penn Gas (UGI CPG) announced that its purchased gas cost rates will decrease on June 1, 2009 due to lower wholesale natural gas prices.  As a result, the average residential heating customer’s bill will decrease by approximately 9%.

On June 1, UGI CPG will also submit its annual filing with the Pennsylvania Public Utility Commission (PUC) to establish purchased gas cost rates for December 1, 2009.  UGI CPG has requested an additional rate decrease of 19% for the average residential heating customer’s bill.

UGI CPG most recently decreased rates by 11% on March 1, 2009 and also by 6% on December 1, 2008.  If UGI CPG’s proposed December rates are approved as filed, the average residential heating bill will be 35% lower on December 1, 2009 than one year earlier.  According to Peter G. Terranova, Vice President of Marketing & Supply, “We are extremely pleased to be passing these saving on to our customers, especially during these difficult economic times.”

If UGI CPG’s proposed December rates are approved, the bill for a typical residential retail heating customer who uses about 6.5 dekatherms of natural gas per month will decrease from $101.64 per month to $92.68 on June 1 and then decrease again on December 1 to $74.91.  The bill for a typical commercial retail customer using 29 dekatherms per month will decrease from $374.51 per month to $334.35 on June 1and then decrease again on December 1 to $254.91.   The bill for a typical industrial retail customer using 171 dekatherms per month will decrease from $2,010.27 per month to $1,774.72 on June 1 then decrease again on December 1 to $1.308.73.

Customers may call UGI CPG at 1-800-652-0550 to receive further information on the proposed rates.  Any customer who is struggling to pay their gas bills should contact UGI CPG to determine if they are eligible for one of several energy assistance programs or discuss a payment arrangement for any past due balances.

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.