Press Release

PUC Approves Default Service Pricing for UGI Utilities

Published on 6/22/2006

Filed under: Electric

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved provider of last resort (POLR) rates for UGI Utilities Inc. that sets prices for UGI consumers through 2009.

The Commission voted 5-0 to approve the default service generation rates. Commission Vice Chairman James Cawley and Commissioner Terrance Fitzpatrick made statements on the issue.  A Commission Administrative Law Judge recommended approval of the settlement saying that the rates are consistent with the actual and projected wholesale power prices. If default service rates are implemented below these levels, the reductions would be applied to all rate classes.

The 1996 electric competition law requires electric companies to provide service to customers who have not selected an alternative generation supplier. This is commonly called provider of last resort service, or POLR. The Commission is obligated to approve a POLR pricing that reflects prevailing market prices and allows UGI to recover all reasonable costs for service. UGI’s electric division serves about 62,000 customers in two northeastern counties near Wilkes-Barre.

Under the default service generation rates, non-heating consumers using about 500 KWH could see their monthly bill increase by about $19.40 (34.5 percent) to $75.65 in 2007. Prices could then increase by 3.25 percent in 2008 and .35 percent in 2009.

Under the default service generation rates, heating consumers using about 2,000 KWH could see their monthly bill increase by about $61.34 (36.7 percent) to $228.47 in 2007. Prices could then increase by 5.8 percent in 2008 and 1.2 percent in 2009.

According to the settlement, establishing default service generation rates permits UGI to begin to lock in a portion of its supplies. The settlement was reached between the company and parties who filed complaints against the plan including the Office of Consumer Advocate, the Office of Small Business Advocate, Constellation NewEnergy Inc. and Constellation Energy Commodities Group Inc.

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 Internet homepage www.puc.state.pa.us.

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Docket No:      P-00062212

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