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UGI Utilities – Gas Division Projects No Increase in Gas Costs Until December 1

17 May 2016

READING, PA, May 17, 2016 – In an annual filing with the Pennsylvania Public Utility Commission (PUC), UGI Utilities, Inc., Gas Division (UGI) announced its purchased gas cost rates will not change on June 1, 2016, but are projected to increase on December 1, 2016.

UGI’s projects its December 1 purchased gas cost rate for residential heating customers to increase 6.0 percent from current rates. Commercial customers are projected to see a 6.4 percent increase, while industrial retail customers are projected to see a 6.7 percent increase.

“Nearly 90 percent of UGI’s natural gas supplies now come from locally produced Marcellus Shale. Even with this projected 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 purchased 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 December 1, 2016, the bill for a typical residential retail heating customer using 57.3 hundred cubic feet (ccf) per month will increase from $51.44 per month to $54.55 per month.

The bill for a typical commercial retail customer using 32.3 thousand cubic feet (Mcf ) per month will increase from $269.00 per month to $286.18 per month.

The bill for a typical industrial retail customer using 132.7 Mcf per month will increase from $1056.08 per month $1,126.75 per month.

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’s Gas Division is headquartered in Reading, PA and serves 400,000 customers in 15 southeastern Pennsylvania counties. Additional information about UGI Gas Division is available at www.ugi.com.