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UGI Penn Natural Gas Customers to See Gas Cost Increase June 1

READING, PA, May 17, 2016 – UGI Penn Natural Gas (UGI) announced that its purchased gas cost rates will increase on June 1, 2016. As a result, the average residential heating customer’s bill will increase by 4.4 percent. Commercial customers will see a 5.4 percent increase, and industrial retail customers will see a 6.4 percent increase.

UGI will also submit its December 1 purchased gas cost rate projection in an annual filing with the Pennsylvania Public Utility Commission (PUC). At this time, UGI projects no additional change in purchased gas costs in December.

“Nearly 90 percent of UGI’s natural gas supplies now come from locally produced Marcellus Shale. Even with this increase, our customers are benefitting from this plentiful, reliable supply,” Paul Szykman, vice president of rates at UGI, said. “Over the past eight years, UGI customers have seen a decrease of more than 40 percent in their bills due to declining gas costs.”

UGI is required to file its gas cost rates each year in June for review with the PUC. The Company may adjust these rates quarterly to reflect changes in wholesale natural gas prices. By law, utilities cannot 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.

Beginning June 1, the bill for a typical residential heating customer who uses about 89 hundred cubic feet (ccf) of natural gas per month will increase from $72.48 to $75.69.

The bill for a typical commercial retail customer using 26.2 thousand cubic feet (Mcf) per month will increase from $163.69 per month to $172.46 on June 1.

The bill for a typical industrial retail customer using 405 Mcf per month will increase from $2,044.37 per month to $2,175.85 on June 1.

Customers may call UGI at 1-800-276-2722 to receive further information on the proposed rates or to find out what actions they may take.   UGI encourages customers to use energy wisely and make efficiency improvements in their homes. All customers are encouraged to sign up for UGI’s free budget billing program, which spreads bills out over a 12-month period. Customers with a limited or fixed income should call UGI at 1-800-UGI-WARM 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 the utility as soon as possible to discuss a payment arrangement.

UGI Penn Natural Gas serves 178,000 customers Northeast Pennsylvania. Additional information about UGI Gas Division is available at www.ugi.com

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