Press Release

PUC Approves Interim Gas Cost Recovery Decreases for UGI, PG Energy

Published on 2/9/2006

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission today approved an interim purchased gas cost rate (PGC) decreases for UGI, Inc. and PG Energy.

            UGI lowered its gas rate from $13.624 to $13.098 per MCF, a decrease of about $.53 per MCF. The average customer would see their bill go from $151 to $147 per month. The new rate is effective for service rendered on or after Feb. 10, 2006.

            PG Energy lowered its gas rate from $12.1297 to $11.1897 per MCF, a decrease of about $.94 per MCF. The average customer would see their gas rate go from about $155 to $144. The new rate is effective for service rendered on or after Feb. 10, 2006.

            The Commission approved the decreases by a vote of 5-0. In its application for the decrease, UGI noted that warmer-than-normal weather across most of the United States and the steady recovery of gas production losses caused by Hurricanes Katrina and Rita have contributed to gas prices falling below the projections used to establish the company’s rates.

             Natural gas utilities file for a gas cost recovery annually, but rates can be adjusted quarterly. 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 paid for the natural gas, and includes a reconciliation of undercollections or overcollections resulting from differences in actual sales and actual gas costs from prior projections.

              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 more information about the PUC and additional press releases, visit our website at www.puc.state.pa.us.

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Docket No. P-00062201, P-00062202

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