UGI's Broad Mountain Project to Generate Green Power

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Wed Jul 23, 2008 5:24pm EDT

VALLEY FORGE, Pa.--(Business Wire)--
UGI Corporation (NYSE:UGI) announced today that one of its
subsidiaries will soon be generating nearly 11 megawatts of
electricity using recovered landfill methane gas. The Broad Mountain
project is located at a Hegins, PA landfill owned and operated by
Commonwealth Environmental Systems, L.P. UGI Energy Services, Inc.,
with headquarters in Wyomissing, Pennsylvania, is the non-regulated
subsidiary of UGI that will own and operate the plant. When completed,
the $36 million project will be one of the largest of its kind in the
United States.

   Lon R. Greenberg, chairman and chief executive officer of UGI,
said, "It gives me great pleasure to announce our second landfill gas
project in less than a year. We take our responsibilities as an energy
provider seriously and we will continue to seek out clean and
sustainable energy projects in the future that have attractive returns
for our shareholders."

   Bradley C. Hall, president of UGI Energy Services, added, "From
our base in Pennsylvania, UGI Energy Services is uniquely positioned
to recognize and evaluate opportunities like the Broad Mountain
project. We are a premier distributor and marketer of energy products
and services with a diversified portfolio of assets to serve customers
throughout the mid-Atlantic region."

   Landfill gas is generated during the natural decomposition of
solid waste and the byproduct gas is largely comprised of methane, a
primary greenhouse gas. Landfill gas was given the highest preference,
along with other energy sources such as wind, solar, biomass and
low-impact hydro, as an alternative energy by the Commonwealth of
Pennsylvania when the Alternative Energy Portfolio Standard was
enacted into law almost 4 years ago. The legislation requires that
within 15 years, 18 percent of the state's electric power come from
alternative energy sources.

   In addition to installation of electric power generators, the
project involves installation of gas processing equipment and
reinforcement of power lines that interconnect the project to the PJM
system which transmits the electricity throughout the mid-Atlantic
region.

   There are many environmental benefits associated with this
renewable energy project. In addition to providing electric generating
capacity to serve the equivalent of 7,000 homes, the project will
result in the equivalent of removing over 86,000 vehicles from our
roads. The project is expected to reduce total annual greenhouse gas
(carbon dioxide) emissions by over 60,000 tons per year.

   UGI Energy Services has completed the design phase of the project
and has ordered electric generators that are specifically designed for
landfill gas operation. In addition, special equipment will be needed
to compress, filter, and dry the landfill gas prior to fueling the
generators. The project should be completed and electric power
production initiated by the end of December 2008.

   UGI Energy Services, the energy marketing unit of UGI, markets
natural gas, electricity, and fuel oil to over 11,000 commercial and
industrial customers throughout the mid-Atlantic region, owns and
operates natural gas storage and peaking plants for utility clients,
and owns 144 megawatts of electric generation capacity.

   UGI is a holding company with propane marketing, utility and
energy marketing subsidiaries. Through subsidiaries, UGI owns 44% of
AmeriGas Partners, L. P. (NYSE:APU), the nation's largest retail
propane marketer, and owns Antargaz, one of the largest LPG
distributors in France

   Additional information about UGI Energy Services is available at
www.ugienergyservices.com. Additional information about UGI is
available at www.ugicorp.com.

UGI Corporation
Robert W. Krick, 610-337-1000 ext. 3645
or
Brenda Blake, 610-337-1000 ext. 3202
or
UGI Energy Services
Matt Dutzman, 610-373-7999

Copyright Business Wire 2008
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