UGI CPG to Decrease Natural Gas Rates 9.1% on September 1, 2009

Reading, PA (September 1, 2009) – UGI Central Penn Gas (UGI CPG) announced today that its purchased gas cost rates will decrease on September 1, 2009 due to its purchase of natural gas at lower wholesale prices. As a result, the average residential heating customer’s overall bill will decrease $9.34 per month, from $103.10 to $93.76, or by 9.1%.

According to Peter G. Terranova, vice president marketing, supply & rates, “This is great news for customers as we approach the winter heating season. UGI CPG has decreased purchased gas cost rates four times in the past year. As a result, the average customer bill is approximately 30% lower than it was one year ago, including UGI CPC’s recently announced base rate increase.” Terranova added that UGI CPG expects to decrease purchased gas cost rates again on December 1st, assuming a continued decline in wholesale prices.

Utilities pass the cost of the natural gas they purchase directly through to customers without any markup. Purchased gas cost rates may be adjusted quarterly.

While natural gas remains an excellent value conserving energy is both environmentally responsible and reduces household bills. UGI CPG encourages customers to continue to take steps to use energy wisely and improve the efficiency of their homes.

In addition, UGI CPG offers a free Budget Billing Plan that is designed to spread payments out evenly each month. 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.