What Will We Cover Today An Introduction to UGI UGIs Infrastructure - - PowerPoint PPT Presentation

what will we cover today
SMART_READER_LITE
LIVE PREVIEW

What Will We Cover Today An Introduction to UGI UGIs Infrastructure - - PowerPoint PPT Presentation

What Will We Cover Today An Introduction to UGI UGIs Infrastructure Replacement & Betterment UGIs Growth Results and New Expansion Initiatives UGI Online Tools Introduction To UGI UGI Is A Leading Gas Utility In PA


slide-1
SLIDE 1

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
slide-2
SLIDE 2

Introduction To UGI

slide-3
SLIDE 3

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

slide-4
SLIDE 4

Infrastructure Replacement & Betterment

slide-5
SLIDE 5

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
slide-6
SLIDE 6

UGI Replacement & Betterment Investment

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

Replacement & Betterment Investment ($MM)

40.5 50 60.3 63.4 84.5 101.1 113.2 150 20 40 60 80 100 120 140 160 2009 2010 2011 2012 2013 2014 2015 2016 Budget

slide-7
SLIDE 7

Growth Results and New Initiatives

slide-8
SLIDE 8

Why Growth – Move to Natural Gas

  • Unique Situation
  • Gas remains economically favorable as heating source compared to

Oil, Propane, & Electric

  • Gas prices continue to stabilize near historic lows
  • Gas is an American = “Pennsylvania Fuel”

Annual Consumption (Gal/yr) $1.00 $1.50 $2.00 $2.50 $3.00 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 OIL Average Annual Savings Switching from Oil to Natural Gas* Price of Oil per Gallon

slide-9
SLIDE 9

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
slide-10
SLIDE 10

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

slide-11
SLIDE 11

Successful Conversions

slide-12
SLIDE 12

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

slide-13
SLIDE 13

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

slide-14
SLIDE 14

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

slide-15
SLIDE 15

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

  • perate the plant and 45 jobs to indirectly support the plant
slide-16
SLIDE 16

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

  • f 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

slide-17
SLIDE 17

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
  • ver 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

slide-18
SLIDE 18

Forecasted Underserved and Unserved Lead Saturation Demand

$171 $31 $44 $- $20 $40 $60 $80 $100 $120 $140 $160 $180 UGI PNG CPG M i l l i

  • n

Company BUDGET FORECAST

  • GET Leads: ~ 4,859
  • Potential Exceeding $200 Million vs. Pilot of $75 Million
slide-19
SLIDE 19

Riverside Borough

slide-20
SLIDE 20
  • 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

GET Gas Program Demand - Riverside

slide-21
SLIDE 21

Online Tools

slide-22
SLIDE 22

Tools For Businesses

  • Fuel Cost Comparison Calculator
  • Compare fuel costs for your business

www.ugi.com/businesscalculator

  • Check for Natural Gas Availability
  • Find out if natural gas is available to

your business www.ugi.com/gasavailability

  • Business Energy Advisor
  • Get energy savings advice specific to

your industry and type of use www.ugi.com/energyadvisor

  • Our Blog, UGI Connection
  • Read real life examples from other

businesses who have made the switch http://blog.ugi.com

slide-23
SLIDE 23

Thank You