UGI Receives Regulatory Approval for a Renewable Natural Gas Pilot Project

Rhea-AI Summary

UGI Utilities has received regulatory approval from the Pennsylvania Public Utility Commission for a five-year pilot program to purchase renewable natural gas (RNG). This initiative is the first of its kind in Pennsylvania, aimed at integrating RNG into UGI's supply portfolio while reducing costs for customers. The program, which received unanimous support from PA PUC Commissioners, will leverage economic incentives to mitigate the expenses associated with RNG procurement. UGI has also established an interconnect agreement with Archaea Energy, which will enable the delivery of up to 16,000 mcf of RNG daily, making it the largest RNG supply point in the U.S.

Positive

• Regulatory approval for a five-year pilot program to purchase renewable natural gas.
• First pilot of its kind in Pennsylvania, indicating innovation.
• Support from PA PUC Commissioners highlights the program's economic and environmental significance.
• Interconnect agreement with Archaea Energy allows delivery of substantial RNG supply, enhancing infrastructure.

Negative

• None.

DENVER, Pa.--(BUSINESS WIRE)-- UGI Utilities has received regulatory approval from the Pennsylvania Public Utility Commission (“PA PUC”) to purchase renewable natural gas as part of a five-year pilot program. The pilot, the first of its kind in Pennsylvania, is intended to explore how UGI Utilities can integrate renewable natural gas (RNG) into its supply portfolio to produce economic and environmental benefits for its Purchased Gas Cost (PGC) customers. The pilot allows UGI Utilities to test adding RNG to its supply portfolio while leveraging certain available economic incentives for renewables to lessen the cost impact of purchasing RNG for customers. UGI Utilities, a subsidiary of UGI Corporation (NYSE: UGI), is the second largest regulated gas utility in Pennsylvania.

The PA PUC Commissioners voted unanimously to approve the pilot program, with all three commissioners issuing statements in support of the program. In a joint statement, Commissioners Ralph V. Yanora and John F. Coleman, Jr. commended UGI Utilities for the pilot program, stating that it “represents an innovative economic model that balances environmental, customer, and gas supply requirements consistent with the Commonwealth’s least-cost gas supply requirements.”

“The approval of this pilot program is a significant step forward as we continue to develop sustainable, environmentally responsible energy solutions for our customers,” said Robert F. Beard, Executive Vice President - Natural Gas, Global Engineering & Construction and Procurement. “UGI remains committed to developing renewable energy sources for the communities we serve.”

Earlier this year, UGI Utilities signed an interconnect agreement with Archaea Energy to accept delivery of RNG into its high-pressure natural gas pipeline that serves its distribution system. When fully operational, the system will be designed to take up to 16,000 mcf (thousand cubic feet) per day of RNG supply, making this the largest RNG supply point in the United States to-date.

RNG is a low or negative carbon energy solution that is derived from organic waste including farm, municipal, landfill and industrial waste. It is a sustainable and reliable energy source that is highly compatible with existing infrastructure when blended with natural gas. RNG can also be used directly in a manner consistent with natural gas for residential, commercial, industrial and transportation.

About UGI Corporation

UGI Corporation is a distributor and marketer of energy products and services. Through subsidiaries, UGI operates natural gas and electric utilities in Pennsylvania, natural gas utilities in West Virginia, distributes LPG both domestically (through AmeriGas) and internationally (through UGI International), manages midstream energy assets in Pennsylvania, Ohio, and West Virginia and electric generation assets in Pennsylvania, and engages in energy marketing, including renewable natural gas in the Mid-Atlantic region of the United States and California and internationally in France, Belgium, the Netherlands and the UK.

Comprehensive information about UGI Corporation is available on the Internet at https://www.ugicorp.com.

About UGI Utilities

UGI Utilities is a natural gas and electric utility with headquarters in Denver, Pennsylvania. UGI serves more than 740,000 customers in 45 Pennsylvania counties and one county in Maryland. Customers and community members are invited to visit the UGI website at www.ugi.com; our Facebook page at www.facebook.com/ugiutilities; or follow us on Twitter at www.twitter.com/ugi_utilities.

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Source: UGI Corporation

FAQ

What is UGI's renewable natural gas pilot program approved by the PA PUC?

UGI's pilot program is the first in Pennsylvania to purchase renewable natural gas over five years, aimed at integrating RNG into its supply portfolio.

How much renewable natural gas will UGI Utilities be able to deliver?

UGI Utilities will be able to deliver up to 16,000 mcf of renewable natural gas daily when the system is fully operational.

Who supported UGI's RNG pilot program?

The Pennsylvania Public Utility Commission Commissioners unanimously supported the pilot program, noting its innovative economic model.

What are the benefits of UGI's renewable natural gas program?

The program aims to provide economic and environmental benefits, reduce costs for customers, and enhance UGI's energy sustainability.

What is the significance of the interconnect agreement UGI signed?

The interconnect agreement with Archaea Energy is crucial as it facilitates the delivery of RNG, positioning UGI as a leader in renewable energy supply in the U.S.