Press Release

PUC OKs Schedule for Consideration of UGI Proposal to Purchase PG Energy Natural Gas Assets

Published on 5/4/2006

Filed under: Gas

HARRISBURG, Pa. – The Pennsylvania Public Utility Commission (PUC) today denied a request by UGI and Southern Union Co. to establish an expedited schedule for consideration of the proposed UGI purchase of PG Energy’s natural gas assets from Southern Union Co.

“We are mindful of the necessary balance that must be struck between allowing for quick consideration of a merger proposal and fulfilling our responsibility to determine that a proposed merger produces a benefit for the public,” said Commission Chairman Wendell F. Holland. “Our quick response must be tempered by the need to provide others the opportunity to participate in the case.”

UGI and PG Energy requested that the time for consideration be abbreviated with final consideration by the Commission to take place at its July 20, 2006, public meeting. During an April 6, 2006, pre-conference hearing, PUC Administrative Law Judge Susan D. Colwell had established a modified schedule that concludes with reply briefs on July 13, 2006. Her final decision and action by the full Commission would then follow.

The Commission voted 5-0 to maintain the schedule established by the judge, denying the companies request.

On Feb. 16, 2006, UGI Corp. filed with the Commission to acquire PG Energy from Southern Union Co. PG Energy, based in Wilkes-Barre, serves 158,000 customers in 13 counties in northeastern and central Pennsylvania including Scranton and Williamsport. Southern Union will move its headquarters from Wilkes-Barre to Houston once the deal closes. UGI serves 307,000 natural gas customers in 14 Pennsylvania counties including Harrisburg, Lancaster, Reading, the Lehigh Valley and their surrounding suburbs.

Judge Colwell will conduct the public input hearings on this case at 2 and 7 p.m., May 17, 2006, at McGowan School of Business, Kings College, Burke Auditorium, Corner of North River and West Union streets, Wilkes-Barre.

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. A-120011F2000; A-125146F5000; A-125146

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