UGI Choice Program Update

Shaun HartThursday, February 23, 2012

Agenda

• Current Choice programs• 2011 PGC settlement• Summary of new program structure– UGI Utilities (“UGI”)– UGI Penn Natural Gas (“PNG”)– UGI Central Penn Gas (“CPG”)

• Core market capacity contracts• Choice statistics

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Current Choice Programs

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UGI Current Program

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Nov 2011 – Oct 2012 Nov 2012 – Oct 2013

Normal January Day Peak Day

Option I 100% FT 100% FT

Option II* 50% FT,50% Bundled Sale

62% FT, 38% Bundled Sale

Peak Day

Option III 100% FT N/A

Option IV 62% FT,38% Bundled Sale N/A

* Option II was the default selection. Election due date was July 15th.

PNG Current Program

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Nov 2011 – Oct 2012 Nov 2012 – Oct 2013

Normal January Day Peak Day

Option I 100% FT 100% FT

Option II* 35% FT,65% Bundled Sale

35% FT, 65% Bundled Sale

Peak Day

Option III 100% FT N/A

Option IV 35% FT,65% Bundled Sale N/A

* Option II was the default selection. Election due date was March 1st.

CPG Current Program

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Nov 2011 – Oct 2012 Nov 2012 – Oct 2013

Average Day of Peak Month Peak Day

Option I 100% FT 100% FT

Option II N/A 59% FT, 41% Bundled Sale

2011 PGC Settlement

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2011 PGC Settlement

• July 15th election date for all 3 companies• Demand charge credit– UGI and PNG only– December 2011 through October 2012

• Bundled sale changes effective November 2012– Peak day allocation percentages– Daily flexibility

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Peak Day Allocation

• Current peak day allocation– Firm transportation– Bundled sales

• New peak day allocation– Firm transportation– Bundled sales– Peaking sales

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Current Peak Day Allocation

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Firm Transportation

BundledSale

UGI 62% 38%

PNG 35% 65%

CPG 59% 41%

* Percentage of Peak Day DDR

New Peak Day Allocation

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Firm Transportation

Bundled Sale

Peaking Sale

UGI 52% 28% 20%

PNG 35% 56% 9%

CPG 59% 36% 5%

* Percentage of Peak Day DDR

Bundled Sales

• Current bundled sales– Must-take monthly and daily quantities• Percentage of pre-month DDR for Average January Day

option (Option II)• Percentage of DDR for Peak Day option (Option IV)

• New bundled sales– Must-take monthly bundled sale quantity– Daily flexibility

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Must-Take Bundled Sales

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Nov Dec Jan Feb Mar

UGI 5% 22% 38% 42% 44%

PNG 26% 68% 54% 77% 78%

CPG 18% 33% 55% 52% 44%

* Percentage of pre-month average DDR x number of days in month

Maximum Daily Bundled Sale

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Nov Dec Jan Feb 1 – Feb 15

Feb 16 – Feb 28 Mar

UGI 15% 100% 100% 100% 75% 65%

PNG 25% 100% 100% 100% 80% 65%

CPG 25% 100% 100% 100% 70% 50%

* Percentage of peak day bundled sale quantity

Minimum Daily Bundled Sale

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* Percentage of peak day bundled sale quantity

Nov Dec Jan Feb Mar

UGI 0% 0% 0% 0% 0%

PNG 0% 0% 0% 0% 0%

CPG 0% 0% 0% 0% 0%

Bundled Sale Example #1

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Company = PNG Month = JanuaryPre-month average DDR = 500 dth per dayPeak Day DDR = 1,000 dth

• Must-take monthly bundled sale = 8,370 dth (54% * 500 dth * 31 days)

• Max daily bundled sale = 560 dth (100% * 56% * 1,000 dth)•Average daily bundled sale = 270 dth (8,370 dth ÷ 31 days)•Min daily bundled sale = 0 dth (0% * 56% * 1,000 dth)

Bundled Sale Example #2

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Company = UGI Month = MarchPre-month average DDR = 300 dth per dayPeak Day DDR = 1,000 dth

• Must-take monthly bundled sale = 4,092 dth (44% * 300 dth * 31 days)

• Max daily bundled sale = 182 dth (65% * 28% * 1,000 dth)•Average daily bundled sale = 132 dth (4,092 dth ÷ 31 days)•Min daily bundled sale = 0 dth (0% * 28% * 1,000 dth)

Bundled Sale Nominations

• 8:45 a.m. EST nomination deadline• If no nomination is received by deadline,

default nomination quantity = 0• If monthly quantity is not fully nominated,

shortfall will be cashed-in• UGI has right to issue OFO to modify daily

flexibility of bundled sales (slide #14)

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Peaking Sales• If DDR exceeds peak day FT allocation plus

Bundled Sales allocation– UGI >80% of PDDR– PNG >91% of PDDR– CPG >95% of PDDR

• Sale price = peaking commodity cost– Current rates (subject to change)• UGI: NYMEX Settle x 1.1628• PNG: Transco Zone 3 GDA x 1.06• CPG: Dominion South Point GDA

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Summary of New Program Structure

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UGI Choice

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UGI Capacity Options

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Nov 2011 – Oct 2012 Nov 2012 – Oct 2013**

Normal January Day Peak Day

Option I 100% FT 100% FT

Option II* 50% FT,50% Bundled Sale

52% FT, 28% Bundled Sale,

20% PeakingPeak Day

Option III 100% FT N/A

Option IV 62% FT,38% Bundled Sale N/A

* Option II is the default selection.** Elections are due July 15, 2012 and each July 15th thereafter.

UGI Capacity Releases

• Texas Eastern (45%)– ELA to M3

• Columbia (45%)– Columbia Gulf (Rayne to Leach)– Tennessee (Zone 0 to Broad Run)

• Transco (10%)– Leidy to Zone 6

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PNG Choice

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PNG Capacity Options

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Nov 2011 – Oct 2012 Nov 2012 – Oct 2013**

Normal January Day Peak Day

Option I 100% FT 100% FT

Option II* 35% FT,65% Bundled Sale

35% FT, 56% Bundled Sale,

9% PeakingPeak Day

Option III 100% FT N/A

Option IV 35% FT,65% Bundled Sale N/A

* Option II is the default selection.** Elections are due July 15, 2012 and each July 15th thereafter.

PNG Capacity Releases

• Dependent on location of customer– Honesdale (100% Tennessee)– North (56% Tennessee, 44% Transco)– Central and South (100% Transco)

• Tennessee– Zone L to Zone 4

• Transco– Zone 3 to Zone 6

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CPG Choice

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CPG Capacity Options

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* Option II is the default selection for Nov 2012 forward.** Elections are due July 15, 2012 and each July 15th thereafter.

Nov 2011 – Oct 2012 Nov 2012 – Oct 2013**

Average Day of Peak Month Peak Day

Option I 100% FT 100% FT

Option II* N/A59% FT,

36% Bundled Sale,5% Peaking

CPG Capacity Releases

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• Dependent on location of customer• Columbia– Rayne to Leach– Leach to CPG

• Tennessee – Zone L to Zone 4• Texas Eastern – ELA to M3• Transco – Zone 3 to Zone 6

Core Market Capacity Contracts

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UGI Capacity Contracts

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UGI Capacity Contracts• Renewals– Columbia FTS K#80021 renewed through May 2020– Texas Eastern FT and CDS extended one year– Transco ESS and SS-2 extended one year

• RFP results– November 2011 – RFP for Peaking Service to replace two

contracts set to expire March 31, 2012• New peaking contracts effective Nov 1, 2012

– 34,500 dth/day through March 2013– 40,000 dth/day through March 2017

• Upcoming decisions– Extend Transco ESS and GSS storage contracts– Texas Eastern LLFT contracts notice due by Nov 2012

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UGI Capacity Contracts – Pg. 1Pipe / Rate Schedule / Contract Number MDQ/ SCQ End Date Notice DateANR FSS - 114585 2,771,343 3/31/2019 11/1/2018ANR FTS-1 - 114586 14,800 3/31/2019 11/1/2018ANR FTS-1 - 114588 5,311 3/31/2019 11/1/2018ANR FTS-1 - 114590 10,575 3/31/2019 11/1/2018ANR FTS-1 - 114591 8,600 3/31/2019 11/1/2018ANR FTS-1 - 114592 21,150 3/31/2019 11/1/2018ANR FTS-1 - 114593 12,440 3/31/2019 11/1/2018ANR FTS-1 - 114594 5,123 3/31/2019 11/1/2018ANR FTS-1 - 114595 13,945 10/31/2018 5/1/2018Columbia Gas FSS - 79028 5,090,400 3/31/2014 11/1/2013Columbia Gas FTS - 46284 50,412 10/31/2013 5/1/2013Columbia Gas FTS - 78653 42,000 10/31/2029 5/1/2029Columbia Gas FTS - 80021 20,000 10/31/2020 5/1/2020Columbia Gas FTS - 80095 18,020 3/31/2019 10/1/2018Columbia Gas FTS - 80835 10,000 10/31/2013 5/1/2013Columbia Gas FTS - 80836 1,500 10/31/2019 5/1/2019Columbia Gas NTS - 80837 19,520 10/31/2019 5/1/2019Columbia Gas SST - 79133 93,867 10/31/2014 5/1/2014Columbia Gulf FTS-1 - 46283 51,598 10/31/2013 5/1/2013Columbia Gulf FTS-1 - 80834 10,219 10/31/2013 5/1/2013Dominion GSS - 300126 666,667 3/31/2022 4/1/2020Dominion GSS TE - 600038 941,176 3/31/2016 4/1/2014Egan FSS - 310191 500,000 3/31/2019 12/30/2018Panhandle EFT - 011579 10,513 10/31/2013 5/1/2013Tennessee FT-A - 73903 10,492 10/31/2013 8/2/2013Tennessee FT-A - 73905 10,000 10/31/2013 8/2/2013Texas Eastern CDS - 800239 25,000 10/31/2013 11/1/2012Texas Eastern CDS - 800397 41,000 10/31/2013 11/1/2012

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UGI Capacity Contracts – Pg. 2Pipe / Rate Schedule / Contract Number MDQ/ SCQ End Date Notice DateTexas Eastern CDS - 820019 10,000 10/31/2013 11/1/2012Texas Eastern FT-1 - 800240 25,000 10/31/2013 11/1/2012Texas Eastern FT-1 - 800345 4,000 10/31/2013 11/1/2012Texas Eastern FT-1 - 800373 20,000 10/31/2014 11/1/2012Texas Eastern FT-1 - 800394 32,475 10/31/2013 11/1/2012Texas Eastern FT-1 - 800468 10,000 10/31/2015 11/1/2013Texas Eastern FT-1 - 830067 10,000 10/31/2014 11/1/2012Texas Eastern FT-1 - 910180 10,000 10/31/2013 11/1/2012Texas Eastern FT-1 - 910181 12,000 10/31/2013 11/1/2012Texas Eastern FT-1 - 910417 11,713 10/31/2013 11/1/2012Texas Eastern FT-1 - 800504 4,000 10/31/2014 11/1/2012Texas Eastern FTS-5 – 330910 6,667 3/31/2015 4/1/2013Texas Eastern FTS-7 – 331721 5,880 4/15/2015 4/16/2013Texas Eastern LLFT - 870001 10,575 3/31/2015 4/1/2013Texas Eastern LLFT - 870004 10,468 10/31/2014 11/1/2012Texas Eastern LLFT - 870202 12,390 10/31/2013 11/1/2012Transco ESS - 9072829 19,716 2/28/2013 9/1/2012Transco FT - 1002594 5,072 3/31/2017 4/1/2014Transco FT - 1002595 2,081 3/31/2017 4/1/2014Transco FT - 1005004 1,346 3/31/2017 4/1/2014Transco FT - 1013596 22,770 3/31/2017 3/31/2016Transco FT – 9089608 7,000 10/31/2029 11/1/2027Transco GSS - 1000749 102,129 3/31/2013 10/1/2012Transco SS-2 - 1003973 796,950 3/31/2014 4/1/2013Trunkline FT – 013199 10,619 10/31/2013 5/1/2013UGI Central Penn Gas 2,500 N/A N/AUGI Energy Services – Peaking 34,500 3/31/2013 N/AUGI Energy Services – Peaking 40,000 3/31/2017 N/AUGI Energy Services – Peaking 25,000 3/31/2017 N/A

PNG Capacity Contracts

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PNG Capacity Contracts• Renewals– Transco FT extended one year

• RFP results– October 2011 – RFP to replace 74,000 dth/day of

long-haul capacity on Transco and Tennessee set to expire in 2015• 40,000 dth/day firm Marcellus supply

– 31,500 dth/day effective January 1, 2012– Increases to 40,000 dth/day effective August 1, 2015

• 34,000 dth/day of Tennessee short-haul capacity (Zone 4-4)• Upcoming decisions– Extend Transco GSS, LSS, and SS-2 storage contracts

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Pipe / Rate Schedule / Contract Number MDQ/ SCQ End Date Notice Date

Columbia Gas FSS - 79615 797,898 3/31/2020 10/31/2019

Columbia Gas FTS - 79625 7,750 3/31/2020 10/31/2019

Columbia Gas SST - 79616 11,282 3/31/2020 10/31/2019

Columbia Gulf FTS-1 - 79617 6,324 3/31/2020 10/31/2019

Tennessee FS-MA - 62546 3,834,291 11/1/2015 11/1/2014

Tennessee FT-A - 62427 18,609 11/1/2015 11/1/2014

Tennessee FT-A - 62428 23,768 11/1/2015 11/1/2014

Tennessee FT-G - 62498 1,500 11/1/2015 11/1/2014

Tennessee FT-G - 62499 2,060 11/1/2015 11/1/2014

Transco ESS - 1006655 312,526 10/31/2013 5/4/2013

Transco FT - 1003690 48,542 7/31/2015 8/1/2012

Transco FT - 1004999 3,416 7/31/2015 8/1/2012

Transco FT – 1010430 15,737 7/31/2015 8/1/2012

Transco FT – 1021106 500 10/31/2017 5/4/2017

Transco GSS – 1000798 2,746,576 3/31/2013 10/1/2012

Transco LSS – 1000796 827,053 3/31/2013 3/31/2012

Transco SS-2 – 1004032 2,846,250 3/31/2013 3/31/2012

UGI Energy Services – Bundled Marcellus 31,500 3/31/2013 N/A

UGI Energy Services – Peaking 29,000 2/28/2014 N/A

UGI Energy Services – Peaking 18,500 3/31/2017 N/A

PNG Capacity Contracts

CPG Capacity Contracts

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CPG Capacity Contracts• Renewals– Dominion FT extended one year with lower MDQ– Tennessee FT extended one year with lower MDQ– Texas Eastern FT and CDS extended one year– Transco FT extended one year

• RFP results– Sept 2011 – RFP for peaking service for Nov 2011

through March 2012• Upcoming decisions– Extend UGI Storage contract– RFP’s for peaking service effective Nov 2012

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Pipe / Rate Schedule / Contract Number MDQ/ SCQ End Date Notice DateColumbia Gas FSS - 80935 762,243 3/31/2014 11/1/2013Columbia Gas FTS - 80780 14,250 10/31/2014 6/1/2014Columbia Gas SST - 80934 11,324 3/31/2014 11/1/2013Columbia Gulf FTS - 80691 7,610 10/31/2014 6/1/2014Dominion FT - 200004 4,962 12/31/2013 12/31/2012Dominion FT - 700046 2,000 3/31/2022 4/1/2021Dominion GSS - 300109 200,000 3/31/2022 4/1/2020Dominion GSS - 300110 200,000 3/31/2022 4/1/2020Tennessee FT-A - 611 11,000 10/31/2013 11/1/2012TETCO CDS - 800376 8,068 10/31/2013 11/1/2012TETCO FT-1 - 800404 16,136 10/31/2013 11/1/2012TETCO FT-1 - 830060 4,000 3/31/2014 4/1/2012TETCO FT-1 - 8921708 5,291 10/31/2012 N/ATETCO SS-1 - 400190 541,908 4/30/2014 4/30/2012Transco FT - 1003692 10,712 3/31/2018 4/1/2015Transco FT - 1005005 311 7/31/2016 8/1/2013Transco FT - 1005007 3,763 7/31/2016 8/1/2013Transco FT - 1006503 4,566 10/31/2013 11/1/2012Transco FT - 1012119 828 3/31/2016 4/1/2015Transco FT- 1021107 1,500 10/31/2012 5/4/2012Transco GSS - 1000780 57,881 3/31/2013 10/1/2012Transco LG-A - 1000783 4,140 10/31/2012 5/1/2012Transco WSS - 1027109 517,500 3/31/2014 3/31/2013UGI Energy Services – Peaking 9,221 3/31/2012 N/AUGI Storage Company FSS 879,200 3/31/2012 ROFR

CPG Capacity Contracts

Choice Statistics

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Choice Statistics

• Choice % of core market peak day (Feb 1, 2012)– 22% on UGI– 10% on PNG– 8% on CPG– 100% FT Option I not viable as Choice grows

• Choice supplier defaults on UGI and PNG– 80 occurrences in 153 days from Sept 1, 2011

through Jan 31, 2012 (52% of days)

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Contact Information

Shaun Hart David LahoffManager – Supply Manager – Rates SHart@ugi.com DLahoff@ugi.com610-796-3522 610-796-3520

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