What Will We Cover Today • An Introduction to UGI • UGI’s Infrastructure Replacement & Betterment • UGI’s Growth Results and New Expansion Initiatives • UGI Online Tools
Introduction To UGI
UGI Is A Leading Gas Utility In PA Total Gas Customers 617,362 Total Electric Customers 61,735 Miles of UGI Gas Main Infrastructure 12,190 miles
Infrastructure Replacement & Betterment
UGI – Pipeline System Materials Contemporary 88% CI / BS / WI 12% ~ 366 miles CI/ WR ~ 1,018 miles BS UGI has an aggressive capital replacement plan • EOY 2026 – All Cast Iron Eliminated • EOY 2041 – All Bare Steel and Wrought Iron Eliminated • Estimated cost of $1.2 Billion
UGI Replacement & Betterment Investment Replacement & Betterment Investment ($MM) 160 150 140 113.2 120 101.1 100 84.5 80 63.4 60.3 60 50 40.5 40 20 0 2009 2010 2011 2012 2013 2014 2015 2016 Budget Accelerated infrastructure replacement: record level of capital expenditure • Replaced 32 miles Cast Iron in FY 2015 • Replaced 26 miles Bare Steel / Wrought Iron in FY 2015
Growth Results and New Initiatives
Why Growth – Move to Natural Gas • Unique Situation o Gas remains economically favorable as heating source compared to Oil, Propane, & Electric o Gas prices continue to stabilize near historic lows o Gas is an American = “Pennsylvania Fuel” Average Annual Savings Switching from Oil to Natural Gas* Price of Oil per Gallon Annual Consumption $1.00 $1.50 $2.00 $2.50 $3.00 (Gal/yr) OIL 2,000 - 3,000 $1,200 - $1,7000 $2,200 - $3,200 $3,200 - $4,700 $4,200 - $6,200 $5,200 - $7,700 3,000 - 4,000 $1,700 - $2,300 $3,200 - $4,300 $4,700 - $6,300 $6,200 - $8,300 $7,700 - $10,300 4,000 - 5,000 $2,300 - $2,900 $4,300 - $5,400 $6,300 - $7,900 $8,300 - $10,400 $10,300 - $12,900 5,000 - 6,000 $2,900 - $3,500 $5,400 - $6,500 $7,900 - $9,500 $10,400 - $12,500 $12,900 - $15,500 *Natural gas costs based on PNG rates as of December 2015 Savings may vary based on rate of consumption and usage For a personalized savings estimate (including the GET Gas monthly surcharge), please use our Online Savings Calculator
Natural Gas Conversion Statistics Since 2008 UGI converted: • • 53,000 households • 73 large commercial & Industrial facilities • $72M in 2015 to extend service to new customers (~$76M in 2016) • Pre-2015 average annual spend was $40 million In 2015, the 53,000 households that converted to natural gas saved • approximately $91 Million!!! • New Technologies / Future Demand • 11 Combined Heat and Power Projects • 16 Natural Gas Vehicle Fueling Stations • 46 Large potential Industrial Customers on Deck
PA Natural Gas Benefits Natural Gas Customer Impact 2008 vs. 2015 • Savings due to lower gas costs (Marcellus Shale Impact): • $700 a customer per year • $415 Million saved in 2015 compared to 2008 • More than 90% of the natural gas UGI delivers through our system is • produced in the Marcellus Shale Region Marcellus NG priced at +33% discount to NYMEX • UGI Is First Gas Utility in PA with Direct Connection to Utica Shale • Released on 11/4/14 to further help in price stability • – Connection links 2 Marcellus and 1 Utica Shale Well in Northern Tioga County – Supply from 3 wells can provide the needs to meet > 50,000 homes
Successful Conversions
Kalahari Site/Project Description: • – Location: Mount Pocono, Monroe County – Role/Purpose: Mixed-Use Development, Resort and Water Park Project Type: New construction • UGI Project Details: • – Project supports new construction in Mount Pocono resort area – Two-Part Project • Part 1: 22,500 ft of 12-inch plastic main extension • Part 2: 9,500 ft of 8-inch steel high pressure main extension – Project supported by $5M RACP grant obtained by Pocono Mountain EDC Community/Business Impact: • – Attracted over $200M in private investment to the area – Added estimated +1,000 jobs to region
Sanofi-Pasteur Site/Project Description: • – Location: Swiftwater, Monroe County – Role/Purpose: Mixed Commercial/Residential Use Project Type: Main Installation/Extension • UGI Project Details: • – Project supports commercial and residential expansion in Monroe County – Installed 35,000 ft of 12-inch HDPE and 7,500 ft of 12-inch steel Community/Business Impact: • – Begins in Arcadia Business Park and can provide direct access to approx. 100 residential properties and 20 commercial properties it passes – Allowed for service expansion to Mt. Airy Casino and Pocono Mountain School District
Trillium CNG Station Site/Project Description: • – Location: Gordon Borough and Butler Township, Schuylkill County – Role/Purpose: CNG Station Project Type: Natural Gas Fueling Station • UGI Project Details: • – First phase of CNG refueling project supported heavy-duty vehicles – Second phase allows for firm service at station, rather than interruptible – Installed 9,200 of HDPE and 7,500 ft of 12-inch steel – Awarded +$1.3M in grants from Department of Environmental Protection and Department of Economic Development Community/Business Impact: • – Original project resulted in a 1.25M pound reduction in CO2 emissions. – Second phase can increase CO2 emissions reductions to +2M pounds
Panda Patriot Project Site/Project Description: • – Location: Muncy, Lycoming County – Role/Purpose: Power generation plant Project Type: New construction • UGI Project Details: • – Installation of ~42,000 feet of 12-inch high pressure steel natural gas main – Also installed two stations at either end of the pipe: Panda Patriot Meter Station and Transco Gate Station – Project operational in July 2015; commercially operational in July of 2016 Community/Business Impact: • – Panda Patriot Plant can supply power for ~1M homes in N. PA (829 mW) – Creates approximately 500 construction jobs, as well as 27 jobs to directly operate the plant and 45 jobs to indirectly support the plant
Gatorade CHP Site/Project Description: • – Location: Mountain Top, Luzerne County – Role/Purpose: Manufacturing and Warehousing Project Type: Combined Heat and Power • UGI Project Details: • – Project will retain majority of existing 6-in HDPE lines, retiring small sections of existing 6-in HDPE and installing new HDPE sections – Facility must continue normal operations during installation of lines and equipment Community/Business Impact: • – Largest manufacturing facility at the company, producing +43M cases annually – Provides additional +250 permanent full-time jobs at plant and warehouse
GET Gas Program • The UGI Growth Extension Tariff(GET) is designed to provide natural gas service to Unserved or Underserved areas • Goal was to develop an innovative and creative way to expand natural gas service outside of current tariff extension guidelines • Available as a 5-year pilot to customers of UGI Utilities • GET Gas customers will pay a monthly surcharge over a 10-year-period to cover the cost of the main extension • UGI designated $75 million for the approved pilot program Visit www.ugi.com/getgas
Forecasted Underserved and Unserved Lead Saturation Demand $180 $171 $160 $140 $120 M i $100 l l BUDGET i o $80 n FORECAST $60 $44 $40 $31 $20 $- UGI PNG CPG Company GET Leads : ~ 4,859 • Potential Exceeding $200 Million vs. Pilot of $75 Million •
Riverside Borough
GET Gas Program Demand - Riverside • GET Gas Unserved Community Example : Riverside Community – Construction In-Progress • Proactive Community Leadership • Outreach to potential customers • Permit Fees to be waived – Declaration Signed • Low cost installations • Prequalifies for GET Gas • 636 Parcels • Estimated GET Market Share = 445 • Estimated Cost per Customer maximum = $8,263 • Current Leads = 136
Online Tools
Tools For Businesses • Fuel Cost Comparison Calculator o Compare fuel costs for your business www.ugi.com/businesscalculator • Check for Natural Gas Availability o Find out if natural gas is available to your business www.ugi.com/gasavailability • Business Energy Advisor o Get energy savings advice specific to your industry and type of use www.ugi.com/energyadvisor • Our Blog, UGI Connection o Read real life examples from other businesses who have made the switch http://blog.ugi.com
Thank You
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