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UGI Electric Files Conservation and Efficiency Plan

Wilkes-Barre, PA (November 10, 2010) – UGI Utilities, Inc. – Electric Division submitted an Electric Energy Efficiency and Conservation plan to the Pennsylvania Public Utility Commission (PUC) for approval. The plan is designed to help UGI customers use energy more wisely and reduce overall electric consumption.

UGI is submitting the plan voluntarily, but was encouraged to develop the program by the PUC. The plan is similar to those required by larger electric utilities by Pennsylvania Act 129 of 2008, which was designed to help reduce electricity usage in the state and assist customers in becoming more energy efficient.

The UGI plan includes more than a dozen energy efficiency and conservation programs, ranging from residential appliance equipment rebates to custom energy efficiency programs for commercial and industrial customers.

“Even though UGI is not required to submit an energy efficiency and conservation plan, we believe such a program is in the best interests of our customers, the community and our environment,” John L. Walsh, president and CEO of UGI Utilities, said. “These programs will help customers save energy, make wise energy decisions, and reduce their energy bills.”

Walsh added that “energy conservation programs such as these represent an expansion of UGI’s sustainability initiative to use energy and resources wisely in an effort to preserve our environment.”

The plan provides program options for all customer groups, ranging from large industrial customers to small businesses to residential customers, including lowincome residential customers. The goal of the plan is to reduce electric energy consumption by approximately 41,000 megawatt-hours over a three year period, or more than three percent of UGI’s total electric load. The start date is contingent on the PUC approval process, but UGI hopes to start the program by November 2011.

An enhanced program element of the UGI plan, compared to plans developed by most other electric utilities, is a heavier emphasis on fuel substitution to reduce electricity consumption. UGI’s plan includes programs that encourage customers to convert electric heating, hot water and other equipment to natural gas or other more environmentally-friendly fuels.

“The direct use of natural gas in the home for heating and water heating is far more efficient and environmentally-friendly than using electricity that has been generated by natural gas and other fuels for those same applications,” Walsh said. “You might not expect your electric utility to be telling you to use natural gas, but for certain applications, it’s just the right thing to do – for our customers and the communities we serve.”

Other plan components for residential customers include:
• Appliance rebates for energy efficient appliance purchases.

• Appliance recycling that will include free pickup, recycling, and disposal of inefficient refrigerators and freezers.

• A program to lower the cost of compact fluorescent light bulbs for consumers at retail stores.

• A school energy conservation education program for 4th through 7th grade students, which will include an energy savings take-home toolkit.

• A fuel-switching program for water heaters, dryers and central heating systems that include incentives to replace electric appliances with cost effective natural gas appliances.

Plan components for commercial and industrial customers include:
• Appliance rebates for energy efficient appliance purchases.
• Incentives to install combined heat and power distributed generation systems.
• Incentives for maintaining and retrofitting of heating, cooling and other HVAC equipment.
• Incentives for custom energy efficiency measures.

Similar to the programs developed by the larger utilities under Act 129, the UGI program will be funded through a surcharge on customer bills. The goal of the plan is to reduce overall electric costs for customers through savings from energy efficiency gains and lower generation costs. UGI estimates that the customer surcharge, if all program elements are approved, will result in approximately a three percent increase in customer rates. Many customers will save more than
three percent by adopting some of these measures and all customers stand to gain by putting downward pressure on electric generation demand and usage.

UGI Utilities Electric Division services 62,000 customers in portions of Luzerne and Wyoming counties. Additional information about UGI’s Electric Division is available online at www.ugi.com

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