UGI Utilities – Gas Division to Decrease Natural Gas Rates 2.3% on June 1, 2010; Utility Requests Additional 5.7% Rate Decrease for December 1

Reading, PA (May 17, 2010) – Residential customers of UGI Utilities, Inc. – Gas Division (UGI) may pay 7.8 percent less for next winter’s natural gas bills thanks to a 2.3 percent decrease on June 1 and another projected 5.7 percent decrease on December 1.

UGI will submit its annual filing with the Pennsylvania Public Utility Commission (PUC) on June 1 to establish purchased gas cost rates for December 1, 2010. The June decrease and the projected December decrease are both due to lower wholesale natural gas prices.

UGI most recently decreased rates by 3 percent on December 1, 2009, which followed decreases of 6.6 percent on March 1, 2009 and 16 percent on December 1, 2008.

“We are pleased we are able to achieve these savings for our customers,” Peter G. Terranova, vice president, marketing and supply, said. “Natural gas continues to be the preferred energy choice among homeowners and businesses. It is competitively priced, clean, abundant and produced in the United States, including here in Pennsylvania.”

If UGI’s proposed December rates are approved, the bill for a typical residential retail heating customer who uses about 85 hundred cubic feet (ccf) of natural gas per month will decrease from $115.70 per month to $113.06 on June 1 and then decrease again on December 1 to $106.63.

The bill for a typical commercial retail customer using 39.3 thousand cubic feet (Mcf) per month will decrease from $529.53 per month to $517.32 on June 1and then decrease again on December 1 to $487.51. The bill for a typical industrial retail customer using 100.6 thousand cubic feet (Mcf) per month will decrease from $1,329.49 per month to $1,298.26 on June 1 then decrease again on December 1 to $1,222.04.

Customers may call UGI at 1-800-276-2722 to receive further information on the proposed rates.  Any customer who is struggling to pay their gas bills should contact UGI to determine if they are eligible for one of several energy assistance programs or discuss a payment arrangement for any past due balances.

UGI’s Gas Division is headquartered in Reading, Pennsylvania and serves approximately 325,000 customers in 15 southeastern Pennsylvania counties, including customers in and around Allentown, Bethlehem, Easton, Hazleton, Harrisburg, Lancaster and Reading.  Additional information about UGI’s Gas Division is available at www.ugi.com.