UGI to Decrease Natural Gas Rates 16% December 1, 2008 | UGI Utilities
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UGI to Decrease Natural Gas Rates 16% on December 1, 2008

24 Nov 2008

Reading, PA (November 24, 2008) – UGI Utilities, Inc. – Gas Division (UGI) announced today that its purchased gas cost rates will decrease on December 1, 2008 due to lower wholesale natural gas costs. As a result, the average residential heating customer’s bill will decrease approximately 16 percent, from $151.47 to $127.59 per month.

The rate decrease is a direct result of UGI’s lower actual and projected prices for natural gas. According to Peter Terranova, Vice President Marketing, Supply & Rates, “We are pleased by the drop in wholesale natural gas prices and our ability to pass these savings on to our customers prior to the winter heating season. In these times of extreme price volatility for oil, and the pending large increases in electricity prices, natural gas, which is an efficient and reliable American fuel, remains the energy of choice for homes and businesses.”

By law, utilities cannot earn a profit on the natural gas commodity portion of a customer’s bill. They are required to 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 is an extremely clean fuel, conserving energy is both environmentally responsible and reduces household bills. “Natural gas remains an excellent value. However, we urge customers to continue to take steps to use energy wisely and improve the efficiency of their homes,” Terranova stated.

In addition, UGI 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 at 1-800-UGI-WARM (844-9276) 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 as soon as possible to discuss a payment arrangement.

UGI’s Gas Division is headquartered in Reading, Pennsylvania and serves approximately 320,000 customers in 15 southeastern Pennsylvania counties. Additional information about UGI’s Gas Division is available online at