Electric Power Outlook - Pennsylvania Public Utility Commission

UGI Utilities Inc.—Electric Division
The Electric Division of UGI Utilities Inc. (UGI),
a subsidiary of UGI Corporation, provides electric
service to 62,250 customers in Northwestern
Luzerne and Southern Wyoming counties in
Pennsylvania. In 2010, UGI had energy sales
totaling 981 GWh—up 2.7 percent from 2009.
Residential sales continued to dominate UGI’s
market with 54.4 percent of the total sales,
followed by commercial (33.9 percent) and industrial (11.1 percent). Average annual use per
residential customer was 9,742 kWh at an average cost of 13.58 cents per kWh; operating revenues
totaled $115.2 million.
Over the five-year planning horizon, UGI expects total energy demand to drop in 2011 and then
increase at an average annual rate of 0.2 percent. This includes an average annual increase in
residential sales of 0.1 percent and an annual increase in commercial sales of 0.4 percent.
Industrial sales are expected to remain flat. See Figure 27.
UGI is basically a winter peaking utility, although the differential is inconsequential. One or 2
MW separates the two peaks. Peak load on the UGI system occurred on Jan. 24, 2011, and totaled
198 MW, or 2.6 percent above the 2009-10 winter peak load of 193 MW. The 2010 summer peak
load of 197 MW was 8.8 percent higher than the peak load experienced during summer 2009. The
actual average annual peak load growth rate over the past 10 years was 1.5 percent. The five-year
forecast indicates an average increase in peak load of 0.8 percent. Peak load is projected to
increase from 198 MW in 2010-11 to 206 MW in 2015-16. See Figure 28.
For Calendar Year 2010, there were five EGSs serving UGI’s customers, providing 185 GWh, or
18.8 percent of total consumption. UGI does not own electric generation supply and acquires
supply for its customers through a series of competitive solicitations. Default service supply for
customers with peak loads in excess of 500 kW is purchased in the spot market.
At the end of 2010, EGSs were serving 400 customers, or 18 percent of total sales volumes.
UGI offered a Voluntary Load Reduction Program to commercial and industrial customers in
2009, and three customers enrolled. However, since no load reduction events were called, the
program has been discontinued, in favor of PJM’s economic and emergency demand response
programs. If called upon, the 13 participating customers can provide six MW in total demand
response reduction.
UGI is a member of PJM.
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Pennsylvania Public Utility Commission