1. AGA Workshop Resource Management and Work Forecasting
David Amory, Manager Capital Planning
UGI Utilities, Inc.

2. UGI Service Territory

3. UGI Company Profile 89% Residential 11% Industrial/Commercial
UGI Gas
370,000
UGI Penn Natural Gas
167,000
UGI Central Penn Gas
82,000
Total Gas Customers
619,000
UGI Electric
62,000
89% Residential
11% Industrial/Commercial
UGI Utilities Gas Main Infrastructure: ~ 12,000 miles

4. Replacement Plan
Settlement adopted January 24, 2013 requires UGI to do the following:
All Cast Iron mains are required to be replaced over a 14 year period beginning February 2013 ending February 2027.
All Bare Steel mains are required to be replaced over a 30 year period beginning September 2011 ending September 2041.
The UGI LTIIP calls for UGI to replace 62 miles on average of cast iron and bare steel over the next 5 years

5. Assignment of Work to Contractors
Coordinated by three work groups
Engineering – prepares and coordinates Capital work with Operations, 3 Engineering Managers
Operations – responsible to execute both Capital and O&M projects, 2 Directors, 4 Operations Mangers, 10 Supervisors
Capital Planning – Assists with the preparation and execution of the Capital plan company-wide.
The majority of new and replacement main and service projects.
Operations and Maintenance work utilizing vacuum excavation equipment.

6. FY 2015 Capital Budget
All Business Units
Project Type
Budget Total
Replacement and Betterment
114,451,357
Growth
73,618,175
Other
24,598,627
Removal and Salvage
7,217,676
Information Services
5,510,000
225,395,835
30 Contractor Companies Performing Capital and O&M in multi-year contracts
140 Contractor Crews – 2 person crews to 10 person crews
$150 million 12 month contractor spend

7. Work/Data Management
Varying degrees of paper and paperless data transfer between companies
UGI Gas division operates in a 20 year old work management system acquired from IBM/Severn Trent
UGI Penn Natural Gas division operates in a home grown work management system developed more than 30 years ago
A Mobile Dispatch Verisae Mobile Field is used for dispatching and tracking field work
Facility data maintained and designed using GE Mapframe and GE Design Manager
Document stored in EMC Documentum

8. Quality Program and Contractor Incentives
6 Safety and Compliance Inspectors
Operations Inspectors from one on one to one on four inspector to crew ratio
Inspectors review billable items with contractor foreman
Construction Supervisors and Operations Managers review and approve billing units reported.
Quality Inspection metrics drive the contractors opportunity to maintain and grow resources

9. Contracting Strategy
Competitively-bid a multi-year pipeline construction contract
Attracts new qualified contractors to increase competitive process
Retain a solid contractor base to perform blanket work
Establish blanket units for a standard set of work consistent for all of UGIs divisions
Introduced Fixed Maximum Unit Prices for all Extras
Levels playing field between new and existing contractors
Able to compare projects based on base unit pricing
Simplifies the bid process by reducing number of competitive units
Able to prioritize contractors by base price and by region

10. Contract Strategy Craft special bids for large projects
Allows for competitive pricing based on known project conditions
Quantity of work
Potential for new Contractors to work on UGI projects