UGI Requests Approval to Lower Gas Rates March 2006 | UGI Utilities
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UGI Requests Approval to Lower Gas Rates a Second Time in Two Months – March 2006

24 Mar 2006

Reading, PA (March 24, 2006) – Today, UGI Utilities filed a request with the Pennsylvania Public Utility Commission (PUC) to decrease its purchased gas cost rates prior to the utility’s normal June 1 filing date. If the Company’s request is approved, the bill for a typical residential heating customer will decrease approximately 2%, from $147.39 to $144.17 per month, effective April 7, 2006. This follows a 3% decrease in UGI gas bills on February 10 after the PUC approved a similar request from the utility to lower rates prior to its normal March 1 filing date.

UGI’s proactive filing for a rate decrease seeks to lower customers’ natural gas bills two months ahead of the normal filing date. Approval of the filing would also result in UGI’s second rate decrease in two months. The PUC’s next scheduled public meeting will be held on April 6 and UGI’s request to lower gas rates could be approved at that time.

According to Vicki O. Ebner, UGI’s vice president of marketing & gas supply, UGI requested the expedited rate reduction because “we want customers to receive the benefit of lower natural gas prices as soon as possible.” Wholesale natural gas prices have continued to decline since UGI’s last rate decrease. Ebner said that “projected natural gas prices have fallen below the projections UGI used when setting the February rates.”

By law, a utility cannot make a profit by charging customers more that it pays to purchase natural gas. The PUC reviews and approves each utility’s gas cost rates annually, and rates may be recalculated and adjusted quarterly to reflect significant changes in actual and projected purchased gas costs. UGI has the option to adjust its purchased gas cost rates on March 1, June 1, September 1 and December 1 of each year. However, a utility may also petition the PUC to request a change in its purchased gas cost rates between regularly scheduled filing dates.

UGI Utilities’ headquarters is located in Reading, Pennsylvania. The utility serves 307,000 customers in 14 southeastern Pennsylvania counties. Additional information about UGI is available at