UGI Choice Program Update Shaun Hart Thursday, 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 2

Current Choice Programs 3

UGI Current Program 4 Nov 2011 – Oct 2012Nov 2012 – Oct 2013 Normal January DayPeak Day Option I100% FT Option II* 50% FT, 50% Bundled Sale 62% FT, 38% Bundled Sale Peak Day Option III100% FTN/A Option IV 62% FT, 38% Bundled Sale N/A * Option II was the default selection. Election due date was July 15 th.

PNG Current Program 5 Nov 2011 – Oct 2012Nov 2012 – Oct 2013 Normal January DayPeak Day Option I100% FT Option II* 35% FT, 65% Bundled Sale 35% FT, 65% Bundled Sale Peak Day Option III100% FTN/A Option IV 35% FT, 65% Bundled Sale N/A * Option II was the default selection. Election due date was March 1 st.

CPG Current Program 6 Nov 2011 – Oct 2012Nov 2012 – Oct 2013 Average Day of Peak MonthPeak Day Option I100% FT Option IIN/A 59% FT, 41% Bundled Sale

2011 PGC Settlement 7

July 15 th 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 8

Peak Day Allocation Current peak day allocation – Firm transportation – Bundled sales New peak day allocation – Firm transportation – Bundled sales – Peaking sales 9

Current Peak Day Allocation 10 Firm Transportation Bundled Sale UGI62%38% PNG35%65% CPG59%41% * Percentage of Peak Day DDR

New Peak Day Allocation 11 Firm Transportation Bundled Sale Peaking Sale UGI52%28%20% PNG35%56%9% CPG59%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 12

Must-Take Bundled Sales 13 NovDecJanFebMar UGI5%22%38%42%44% PNG26%68%54%77%78% CPG18%33%55%52%44% * Percentage of pre-month average DDR x number of days in month

Maximum Daily Bundled Sale 14 NovDecJan Feb 1 – Feb 15 Feb 16 – Feb 28 Mar UGI15%100% 75%65% PNG25%100% 80%65% CPG25%100% 70%50% * Percentage of peak day bundled sale quantity

Minimum Daily Bundled Sale 15 * Percentage of peak day bundled sale quantity NovDecJanFebMar UGI0% PNG0% CPG0%

Bundled Sale Example #1 16 Company = PNG Month = January Pre-month average DDR = 500 dth per day Peak 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 17 Company = UGI Month = March Pre-month average DDR = 300 dth per day Peak 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) 18

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 PNG: Transco Zone 3 GDA x 1.06 CPG: Dominion South Point GDA 19

Summary of New Program Structure 20

UGI Choice 21

UGI Capacity Options 22 Nov 2011 – Oct 2012Nov 2012 – Oct 2013** Normal January DayPeak Day Option I100% FT Option II* 50% FT, 50% Bundled Sale 52% FT, 28% Bundled Sale, 20% Peaking Peak Day Option III100% FTN/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 15 th 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 23

PNG Choice 24

PNG Capacity Options 25 Nov 2011 – Oct 2012Nov 2012 – Oct 2013** Normal January DayPeak Day Option I100% FT Option II* 35% FT, 65% Bundled Sale 35% FT, 56% Bundled Sale, 9% Peaking Peak Day Option III100% FTN/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 15 th 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 26

CPG Choice 27

CPG Capacity Options 28 * Option II is the default selection for Nov 2012 forward. ** Elections are due July 15, 2012 and each July 15 th thereafter. Nov 2011 – Oct 2012Nov 2012 – Oct 2013** Average Day of Peak MonthPeak Day Option I100% FT Option II*N/A 59% FT, 36% Bundled Sale, 5% Peaking

CPG Capacity Releases 29 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 30

UGI Capacity Contracts 31

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

33 UGI Capacity Contracts – Pg. 1 Pipe / Rate Schedule / Contract NumberMDQ/ SCQEnd DateNotice Date ANR FSS ,771,3433/31/201911/1/2018 ANR FTS ,8003/31/201911/1/2018 ANR FTS ,3113/31/201911/1/2018 ANR FTS ,5753/31/201911/1/2018 ANR FTS ,6003/31/201911/1/2018 ANR FTS ,1503/31/201911/1/2018 ANR FTS ,4403/31/201911/1/2018 ANR FTS ,1233/31/201911/1/2018 ANR FTS ,94510/31/20185/1/2018 Columbia Gas FSS ,090,4003/31/201411/1/2013 Columbia Gas FTS ,41210/31/20135/1/2013 Columbia Gas FTS ,00010/31/20295/1/2029 Columbia Gas FTS ,00010/31/20205/1/2020 Columbia Gas FTS ,0203/31/201910/1/2018 Columbia Gas FTS ,00010/31/20135/1/2013 Columbia Gas FTS ,50010/31/20195/1/2019 Columbia Gas NTS ,52010/31/20195/1/2019 Columbia Gas SST ,86710/31/20145/1/2014 Columbia Gulf FTS ,59810/31/20135/1/2013 Columbia Gulf FTS ,21910/31/20135/1/2013 Dominion GSS ,6673/31/20224/1/2020 Dominion GSS TE ,1763/31/20164/1/2014 Egan FSS ,0003/31/201912/30/2018 Panhandle EFT ,51310/31/20135/1/2013 Tennessee FT-A ,49210/31/20138/2/2013 Tennessee FT-A ,00010/31/20138/2/2013 Texas Eastern CDS ,00010/31/201311/1/2012 Texas Eastern CDS ,00010/31/201311/1/2012

34 UGI Capacity Contracts – Pg. 2 Pipe / Rate Schedule / Contract NumberMDQ/ SCQEnd DateNotice Date Texas Eastern CDS ,00010/31/201311/1/2012 Texas Eastern FT ,00010/31/201311/1/2012 Texas Eastern FT ,00010/31/201311/1/2012 Texas Eastern FT ,00010/31/201411/1/2012 Texas Eastern FT ,47510/31/201311/1/2012 Texas Eastern FT ,00010/31/201511/1/2013 Texas Eastern FT ,00010/31/201411/1/2012 Texas Eastern FT ,00010/31/201311/1/2012 Texas Eastern FT ,00010/31/201311/1/2012 Texas Eastern FT ,71310/31/201311/1/2012 Texas Eastern FT ,00010/31/201411/1/2012 Texas Eastern FTS-5 – ,6673/31/20154/1/2013 Texas Eastern FTS-7 – ,8804/15/20154/16/2013 Texas Eastern LLFT ,5753/31/20154/1/2013 Texas Eastern LLFT ,46810/31/201411/1/2012 Texas Eastern LLFT ,39010/31/201311/1/2012 Transco ESS ,7162/28/20139/1/2012 Transco FT ,0723/31/20174/1/2014 Transco FT ,0813/31/20174/1/2014 Transco FT ,3463/31/20174/1/2014 Transco FT ,7703/31/20173/31/2016 Transco FT – ,00010/31/202911/1/2027 Transco GSS ,1293/31/201310/1/2012 Transco SS ,9503/31/20144/1/2013 Trunkline FT – ,61910/31/20135/1/2013 UGI Central Penn Gas2,500N/A UGI Energy Services – Peaking34,5003/31/2013N/A UGI Energy Services – Peaking40,0003/31/2017N/A UGI Energy Services – Peaking25,0003/31/2017N/A

PNG Capacity Contracts 35

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 ,000 dth/day firm Marcellus supply – 31,500 dth/day effective January 1, 2012 – Increases to 40,000 dth/day effective August 1, ,000 dth/day of Tennessee short-haul capacity (Zone 4-4) Upcoming decisions – Extend Transco GSS, LSS, and SS-2 storage contracts 36

37 Pipe / Rate Schedule / Contract NumberMDQ/ SCQEnd DateNotice Date Columbia Gas FSS ,8983/31/202010/31/2019 Columbia Gas FTS ,7503/31/202010/31/2019 Columbia Gas SST ,2823/31/202010/31/2019 Columbia Gulf FTS ,3243/31/202010/31/2019 Tennessee FS-MA ,834,29111/1/201511/1/2014 Tennessee FT-A ,60911/1/201511/1/2014 Tennessee FT-A ,76811/1/201511/1/2014 Tennessee FT-G ,50011/1/201511/1/2014 Tennessee FT-G ,06011/1/201511/1/2014 Transco ESS ,52610/31/20135/4/2013 Transco FT ,5427/31/20158/1/2012 Transco FT ,4167/31/20158/1/2012 Transco FT – ,7377/31/20158/1/2012 Transco FT – /31/20175/4/2017 Transco GSS – ,746,5763/31/201310/1/2012 Transco LSS – ,0533/31/20133/31/2012 Transco SS-2 – ,846,2503/31/20133/31/2012 UGI Energy Services – Bundled Marcellus31,5003/31/2013N/A UGI Energy Services – Peaking29,0002/28/2014N/A UGI Energy Services – Peaking18,5003/31/2017N/A PNG Capacity Contracts

CPG Capacity Contracts 38

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

40 Pipe / Rate Schedule / Contract NumberMDQ/ SCQEnd DateNotice Date Columbia Gas FSS ,2433/31/201411/1/2013 Columbia Gas FTS ,25010/31/20146/1/2014 Columbia Gas SST ,3243/31/201411/1/2013 Columbia Gulf FTS ,61010/31/20146/1/2014 Dominion FT ,96212/31/201312/31/2012 Dominion FT ,0003/31/20224/1/2021 Dominion GSS ,0003/31/20224/1/2020 Dominion GSS ,0003/31/20224/1/2020 Tennessee FT-A ,00010/31/201311/1/2012 TETCO CDS ,06810/31/201311/1/2012 TETCO FT ,13610/31/201311/1/2012 TETCO FT ,0003/31/20144/1/2012 TETCO FT ,29110/31/2012N/A TETCO SS ,9084/30/20144/30/2012 Transco FT ,7123/31/20184/1/2015 Transco FT /31/20168/1/2013 Transco FT ,7637/31/20168/1/2013 Transco FT ,56610/31/201311/1/2012 Transco FT /31/20164/1/2015 Transco FT ,50010/31/20125/4/2012 Transco GSS ,8813/31/201310/1/2012 Transco LG-A ,14010/31/20125/1/2012 Transco WSS ,5003/31/20143/31/2013 UGI Energy Services – Peaking9,2213/31/2012N/A UGI Storage Company FSS879,200 3/31/2012ROFR CPG Capacity Contracts

Choice Statistics 41

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) 42

Contact Information Shaun HartDavid Lahoff Manager – SupplyManager – Rates