Press Release

PUC Approves Interim Gas Cost Recover Decrease for UGI

Published on 4/6/2006

Filed under: Gas

HARRISBURG, Pa – The Pennsylvania Public Utility Commission (PUC) today approved an interim purchased gas cost rate (PGC) decrease of about $.38 per MCF for UGI Utilities Inc.

UGI lowered its gas rate from $13.098 to $12.718 per MCF. The average residential customer will see their natural gas bill go from about $147 to $144. The new rate is effective for service rendered on or after April 7, 2006.

The Commission approved the decrease by a vote of 5-0. In its application for the decrease, UGI said if current gas prices remain unchanged, the company would experience an overcollection.

Natural gas utilities file for a gas cost recovery annually. By law, the utility cannot make a profit by charging consumers more than what it pays for the natural gas. Companies can apply for interim increases or decreases to reflect significant changes in the wholesale natural gas market.

In doing so, the utility company recalculates its rates to reflect what it expects to pay for the natural gas, and includes a reconciliation of undercollections or overcollections resulting from differences between prior projected prices and costs actually paid.

The Pennsylvania Public Utility Commission ensures safe, reliable and reasonably priced electric, natural gas, water, telephone and transportation service for Pennsylvania consumers, by regulating public utilities and by serving as responsible stewards of competition. For recent news releases, or more information about the PUC, visit our website at www.puc.state.pa.us.

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Docket No. P-00062209

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