1. UGI Utilities – Electric Division Energy Efficiency & Conservation Collaborative Meeting June 9, 2010

2. About UGI Electric Division Service Territory – Luzerne and Wyoming counties – Surrounded by PPL Electric Size – ~55,000 Residential Customers – ~8,000 Commercial and Industrial Customers – ~1,000,000 MWh/yr in Sales

3. Why we are here Act 129 – Energy Efficiency and Conservation Program (EE&C) – Applied only to Electric Utilities with greater than 100,000 customers PUC Secretarial Letter requested Electric Utilities with less than 100,000 customers to file voluntary EE&C Programs UGI Electric has decided to file a voluntary EE&C Program

4. Comparison to Act 129 Act 129 EE&C – Base Year: June 1, 2007 to May 31, 2008 – Normalized Load Reduction Requirements: 1% by May 31, 2011 3% by May 31, 2013 – Peak Demand Reduction Requirement: 4.5% by May 31, 2013 – Government/Municipal class specific reduction requirements – Fines for not meeting goals UGI Electric EE&C – Base Year: October 1, 2008 to September 30, 2009 – Normalized Load Reduction Requirement: 1% by May 31, 2012 3% by May 31, 2014 – Peak Demand Reduction Requirement: N/A – No class specific reduction requirements – No fines for not meeting goals – UGI Electric will evaluate all programs based on the TRC Test

5. UGI Electric EE&C Plan Goals Reductions to Normalized Load – 1% by tentative date of May 31, 2012 – 3% by tentative date of May 31, 2014 Craft a program within a limited budget that meets standard load reduction targets Minimize costs while maximizing benefits

6. Proposed Programs Residential – CFL Lighting – Energy Audits – Appliance Rebates – Appliance Recycling – Water Heater Fuel Switching – Clothes Dryer Fuel Switching – Space Heat Fuel Switching Low Income Residential – CFL Lighting – Water Heater Fuel Switching – Low Income Usage Reduction Plan (LIURP)

7. Proposed Programs (cont.) Commercial and Industrial – CFL Lighting – Appliance Rebates – C&I Custom Incentive – HVAC Tune-Up – Water Heater Fuel Switching – Clothes Dryer Fuel Switching – Space Heat Fuel Switching – C&I Combined Heat and Power (CHP) Fuel Switching

8. Budget 2% of Fiscal Year 2009 Revenues – $2.0 million per year Minimize Administration Costs

9. CSPs Appliance rebate processing Appliance recycling CFL Program Energy Audits HVAC Tune-Up Program Other CSPs possible for consideration

10. Timing Filing Date: Summer 2010 Implementation of the UGI Electric EE&C Program will follow the PUC approval of the EE&C Plan Proposal Program duration will be 3 years from the implementation date

11. Cost Recovery UGI Electric will propose a cost recovery mechanism

12. Feedback For program updates, please visit: – http://eec.ugi.com http://eec.ugi.com For questions or comments please send emails to: – eec@ugi.com eec@ugi.com Next tentative collaborative meeting: – July 14, 2010