UGI Receives Regulatory Approval for a Renewable Natural Gas Pilot Project
October 21 2021 - 8:30AM
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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