Glossary

Antargaz / AGZ (International Propane)

• AGZ Holding - A 100%-owned subsidiary of UGI that conducts an LPG distribution business in France through its ownership of Antargaz and its subsidiaries (generically, abbreviated AGZ).
• Commercial Subsidiaries - Antargaz’ wholly-owned operating subsidiaries involved in LPG distribution, directly (cylinder activity) or indirectly (bulk activity).
• Logistic Subsidiaries - Partially-owned, but consolidated Antargaz operating subsidiaries involved in storage, filling and maintenance activities.

Barrel

A volumetric unit of measurement equivalent to 42 U.S. gallons.

Base Rate (Utilities)

The Tariff Rate a utility is allowed to charge for distributing natural gas (or electricity) through its pipelines (or its wires). It is from these rates that the utility derives its gross margin.

Basis

Basis is the transportation component in the cost of energy, including Propane, natural gas and electricity, delivered to our distribution point. It reflects the cost of interstate pipeline transportation capacity, barges, transports, etc., and losses enroute.

Basis Lock

The purchase, or commitment to purchase, Basis for a future period at a fixed price.

BCF (or Bcf)

Billion cubic feet.

Broad Mountain (UGI Energy Services)

An 11 megawatt renewable electric generation plant fueled by recovered landfill methane gas.

BTU (or Btu)

British Thermal Unit - the quantity of heat necessary to raise the temperature of one pound of water one degree Fahrenheit from 58.5 to 59.5 degrees Fahrenheit under standard pressure of 30 inches of mercury. One Btu equals 252 calories or 293 watt-hours. Each form of energy can be compared to its Btu equivalent.

Butane

A paraffin hydrocarbon that vaporizes at +15 degrees Fahrenheit; generally stored and delivered in liquefied form under modest pressure and used in gaseous form; obtained by processing natural gas and crude oil refining. Chemically, C3H4, it contains approximately 102,000 Btu’s per gallon or 3,300 Btu’s per cubic foot.

Calypso (AGZ)

The marketing program for Butane sold in cylinders made of composite materials.

Conemaugh (UGI Energy Services)

A 1,711 megawatt base load, coal fired generation station in western PA. UGID has a 6% ownership interest in the station, which equates to 102 megawatts.

Control (AGZ)

The marketing program for Propane sold in cylinders that include a fuel gauge.

Degree Days

A measure of cold weather, based on the extent to which the daily mean temperature falls below a reference temperature, usually 65 degrees Fahrenheit. The daily mean temperature represents the sum of the high and low readings for the day divided by two. For example, on a day when the mean temperature is 35 degrees Fahrenheit, there would be 30 degree days experienced.

Dekatherm (or Dth)

A unit of heating value equivalent to 10 therms or 1 million Btu’s.

• Therm - A unit of heating value equivalent to 100,000 Btu’s.

Distributable Cash Flow (AmeriGas)

A measure of cash available for distribution to partners; equal to Earnings Before Interest Expense, Income Taxes, Depreciation and Amortization (EBITDA) less Interest Expense less Maintenance Capital Expenditures.

Distribution Coverage (AmeriGas)

Distributable Cash Flow attributable to limited partners divided by Common Unit cash distributions.

Elfi (AGZ)

A proprietary small cylinder containing 5.5 kilograms of Butane or Propane.

Flaga (International Propane)

• Flaga GmbH - A wholly-owned subsidiary of UGI that conducts an LPG distribution business in Austria ,Denmark, Czech Republic, Hungary, Poland, Romania, Slovakia, and Switzerland.

Forward Strip

The current market price of energy, such as natural gas, Propane and electricity, for delivery in each future month as reflected on the NYMEX. Such prices provide buyers and sellers with the opportunity to hedge physical transactions with derivatives.

Free Cash Flow (AmeriGas)

Distributable Cash Flow less Common Unit distributions less GP distributions less growth capital plus proceeds from asset sales.

FTRs (Utilities and Energy Services)

Financial Transmission Rights – a form of Basis Lock for electric generators.

Gathering System

The gathering pipelines and associated tanks and pumps used to transport natural gas from the production wellhead to the main pipeline for delivery to a processing plant or end user.

Hunlock Repowering (Energy Services)

Project to convert a 48MW coal generation station into a 125MW natural gas-fired plant with completed in the summer of 2012.

Interruptible Market

Customers who obtain special pricing for delivery of electricity or natural gas in exchange for the right of the utility to interrupt service. Interruptions usually occur during times of high demand.

Large Firm Market (Utilities)

Customers who qualify for volume-based discounts on distribution charges for either electric or gas service.

LNG - Liquefied Natural Gas

Natural gas that has been liquefied by reducing its temperature while increasing its pressure. It remains a liquid at minus 116 degrees Fahrenheit and pressure of 673 pounds per square inch. In volume, it occupies 1/600 of that of the vapor at standard conditions.

LNG Plant

An LNG manufacturing plant used to meet peak day needs. The UGI plant is located along the Texas Eastern pipeline supplying the greater Reading area of the Gas Division. Plant output can be hauled by truck to other utilities in specially designed trailers.

LPG

Liquefied Petroleum Gas - a gas containing certain specific hydrocarbons which are gaseous under normal atmospheric conditions, but can be liquefied under moderate pressure at normal temperatures. Propane and Butane are the principal examples.

Marcellus Shale

One of the largest unconventional natural gas resource plays in North America, the Marcellus Shale is a geological formation estimated to contain between 168 and 516TCF of natural gas. The Marcellus Shale stretches from Southwest New York, across Central and Western Pennsylvania and into West Virginia and Ohio.

MCF (or Mcf)

The quantity of natural gas occupying a volume of one thousand cubic feet at a temperature of 60º Fahrenheit and at a pressure of 14.73 pounds per square inch. It contains approximately 1.08 million Btu’s.

MLP (Master Limited Partnership)

A form of business that passes tax benefits and liabilities directly to its owners, thus avoiding two levels of tax on any cash distributions. AmeriGas Partners, L.P. is an MLP.

MMBtu

A thermal unit of energy equal to 1 million Btus.

MMcf

One million cubic feet.

Natural Gas

A naturally occurring mixture of hydrocarbon and non-hydrocarbon gases found in porous geologic formations beneath the earth’s surface, often in association with crude oil. The principal constituent is methane. Chemically CH4, it contains 1,000 Btu’s per cubic foot.

No. 2 Oil

A distillate fuel oil designed to be used primarily for heating homes and small commercial establishments. It contains approximately 138,500 Btu’s per gallon.

No. 6 Oil

A distillate fuel oil that is heavier and contains higher levels of sulfur than #2 fuel oil. This oil is typically used in industrial applications. It contains approximately 150,000 Btu’s per gallon.

OLP

Operating Limited Partnership - the unit of an MLP that contains all of the operating assets. AmeriGas Propane, L.P. is an OLP.

Peaking

A service which provides customers, primarily utilities, with supplemental natural gas on days of peak usage. UGI Energy Services uses LNG storage and propane air plants to support this “insurance-like” product offering.

PGC (Utilities)

Purchased Gas Cost – the cost of gas that is permitted to be passed through directly to customers.

Piped Systems (Antargaz and AmeriGas)

A propane delivery system designed to distribute propane from large shared tanks through a network of pipelines to a housing development located beyond the natural gas delivery infrastructure.

PJM Interconnection

Regional transmission organization (an “independent system operator”) that coordinates the movement of wholesale electricity in all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia.

POLR (Utilities)

Provider of Last Resort - under retail choice legislation, the LDC that will provide service to a customer who can not be served, or chooses not to be served, by another supplier.

Propane

A paraffin hydrocarbon that vaporizes at -44 degrees Fahrenheit; generally stored and delivered in liquefied form under modest pressure and used in gaseous form; obtained by processing natural gas and crude oil refining. Chemically C3H8, it contains approximately 91,500 Btu’s per gallon or 2,500 Btu's per cubic foot.

Propane-Air Plants (Energy Services)

Facilities that convert liquid Propane, air, and natural gas into a mixed gas vapor with combustion characteristics similar to natural gas. UGI has plants in Harrisburg, Reading, White Deer and Bethlehem that are used to supplement natural gas deliveries during periods of peak consumption.

SOX (SO2) Allowances

The amount of sulfur dioxide that may be emitted from an electric generating plant or industrial site. As part of the EPA’s acid rain program implemented in 1995, each plant was allocated a maximum amount of SO2 that it could generate in a 12 month period. The allocations were done in one-ton increments called Allowances. If a plant generates less than the maximum amount allocated by the EPA, the excess Allowances may be traded in the open market and used by a plant that generates more than it was allocated.

Stranded Costs (Utilities)

Costs to serve customers incurred by utilities that were deemed unrecoverable in the newly-created competitive market of the 1990’s. Regulatory agencies permitted utilities to recover these costs as surcharges to their customers over time.

Strategic Accounts (AmeriGas)

Classification of large multi-location commercial customers requiring a single point of contact for their sales and service needs.

Tariff Rates

Fees charged by state or federally regulated companies – typically public utilities or interstate pipelines - for energy or services. Rates are published in a commission- approved tariff schedule.

TCF (or Tcf)

Trillion cubic feet.

Temple II

Project to build an additional LNG storage tank with a capacity of 1.0 BCF and send out system of 100,000 dekatherms/day completed summer of 2012.

Throughput

Total of all energy volumes delivered.

• Throughput - Firm (Utilities) - Total of transportation volumes and tariff sales that are delivered on a firm, uninterruptible basis.
• Throughput - Interruptible (Utilities) - Total of transportation volumes and tariff sales that are delivered on an interruptible basis.

Ton (of LPGs)

A volumetric unit of measure equal to approximately 516 U.S. gallons.

•  KT (or Kiloton) - one thousand Tons or approximately 516,000 U.S. gallons

UGI Energy Services (Unregulated Gas and Electric)

•  GASMARK® - The trademark of the UGI Energy Services energy marketing business that serves over 12,500 commercial and industrial sites on over 30 utility systems in the mid-Atlantic region.
•  UGI Energy Services, Inc. - A 100% owned subsidiary that conducts the energy marketing business of UGI, owns and operates natural gas storage and peaking plants for utility clients, and conducts UGI’s electric generation business.
•  UGI Development Company - A 100% owned subsidiary that owns electric generation assets including 102 MW of base load, coal fired generation through 6% interest in the Conemaugh plant; 11MW landfill gas plant; several solar projects under construction totaling less than 5MW; and a 125MW natural gas fired plant scheduled to be in service by the summer of 2011.

UGI Utilities (Regulated Gas and Electric)

•  UGI Utilities, Inc. - A wholly-owned subsidiary of UGI that conducts the regulated gas and electric utility businesses throughout Pennsylvania.
•  Gas Division - UGI’s “legacy” gas distribution business that serves more than 300,000 customers in eastern Pennsylvania.
•  Electric Division - Electric distribution business that serves approximately 62,000 customers in northeastern Pennsylvania.
•  UGI Central Penn Gas - Gas utility operations acquired from PPL on October 1, 2008 that serve approximately 78,000 customers in 33 counties throughout Pennsylvania and a small portion of Maryland.
•  UGI Penn Natural Gas - Gas utility operations acquired from Southern Union in 2006 that serve more than 170,000 customers in eastern and northeastern Pennsylvania.

Volume Categories – AmeriGas

•  ACE - Classification of sales volume of AmeriGas Cylinder Exchange.
•  Agricultural - Classification of sales volume where the primary customer use is for agribusiness, such as crop drying or animal husbandry.
•  Commercial - Classification of sales volume where the primary customer use is in the operation of a business.
• District Transport - Classification of sales volume where the customer purchases large quantities per delivery (>9,000 gallons) and delivery method is through large transport vehicles.
•  Motor Fuel - Classification of sales volume where the primary customer use is for operation of a motor vehicle, primarily fork lifts.
•  Resale - Classification of sales volume where the primary customer use is reselling Propane to an end-user.
•  Residential Heat - Classification of sales volume where the primary customer use is for heating.
•  Residential Non-Heat - Classification of sales volume where the primary customer use is for cooking, pool heating, water heating, etc.

Volume Categories – Antargaz

• Autogas - Classification of sales volumes for use as a motor fuel. Although quantities are sold to customers in metric litres, results are reported in Tons.
• Commercial / Industrial - Classification of sales volumes of Butane and Propane in quantities greater than 6 Tons.
• Cylinders - Classification of sales volumes of Butane and Propane in cylinders. There are 3 different packages:
  • 5.5 Kg (“Elfi”)
  • 13 Kg
  • 13 Kg “+ Control” with a gauge
• Propane Small Bulk - Classification of sales volume in quantities up to 12 Tons. It is divided in two sub-segments:
  • B0 = 0 to 6 Tons
  • B1 = 6 to 12 Tons
• Propane Medium Bulk - Classification of Propane sales volumes in quantities between 12 Tons and 80 Tons.
• Propane Large Bulk - Classification of Propane sales volumes in quantities greater than 80 Tons.
• Residential - Classification of Propane sales volumes to customers in quantities of less than 6 Tons.

Volume Categories – Flaga

•  Autogas & Butane - Sum of sales volume classification of Autogas and Butane.
•  Bulk - Classification of all gas sales, except Autogas and Butane.
•  Cylinders - Classification of all gas sales of all sizes in cylinders.

Watt

The electrical unit of power or rate of doing work; the power dissipated by a current of one ampere flowing across a resistance of one ohm. One horsepower equals 746 Watts.

• Kilowatt (KW or kw) – 1,000 Watts
• Megawatt (MW or mw) – 1,000 KW or one million Watts
• Gigawatt (GW or gw) – 1,000 MW, on million KW, or one billion Watts

Weighted Climate Index (AGZ)

Comparison of the temperature, as measured in Degree Days, of the reported calendar period with the 30 year average (1971 to 2000) for the same calendar period. The Index is provided by “Meteo France,” the French Climate Agency; an Index above 1 means that the period is colder than the 30 year average; an Index below 1 means that the period is warmer than the 30 year average. The 30 year average is considered “normal.”