UGI Central Penn Gas to Increase Natural Gas Rates on June 1, 2011; Company Projects No Additional Rate Change for December 1

Reading, PA (May 16, 2011) – UGI Central Penn Gas (UGI CPG) announced that its purchased gas cost rates will increase on June 1, 2011 due to building price pressure on overall energy costs.  As a result, the average residential heating customer’s bill will increase by approximately 5.9%.

On June 1, UGI will also submit its annual filing with the Pennsylvania Public Utility Commission (PUC) to establish purchased gas cost rates for December 1, 2011.  UGI currently projects no change from the rates implemented on June 1, 2011.

“Increased upward price pressure on energy commodities, particularly oil, has contributed to a rise in the cost of energy across the board,” said Robert F. Beard, Vice President Marketing, Rates & Gas Supply. “Comparatively speaking, natural gas is the most economical energy choice. Even with this modest price increase, customers who heat with natural gas save on average $1,000 or more per year on their home energy costs over oil or electric.”

By law, utilities can not earn a profit on the natural gas commodity portion of a customer’s bill.  Utilities are required to pass the cost of the natural gas they purchase directly through to customers without any markup.  UGI is required to file its gas cost rates annually for review with the PUC and may adjust these rates quarterly to reflect changes in wholesale natural gas prices.
If UGI CPG’s proposed December rates are approved, the bill for a typical residential retail heating customer who uses about 7 dekatherms (Dth) (or 6.8 thousand cubic feet (Mcf)) of natural gas per month will increase from $87.08 per month to $92.20 on June 1 with no additional change on December 1.

The bill for a typical commercial retail customer using 24.4 dekatherms (Dth) (or 23.75 thousand cubic feet (Mcf)) per month will increase from $226.10 per month to $243.39 on June 1 with no additional change on December 1.  The bill for a typical industrial retail customer using 159 dekatherms (Dth) (or 154.6 thousand cubic feet (Mcf)) per month will increase from $1,368.74 per month to $1,481.43 on June 1 with no additional change on December 1.

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.