UGI : Consolidated Financial Statements for the year ended September 30, 2021

UGI UTILITIES, INC.

AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

for the years ended September 30, 2021 and 2020

UGI UTILITIES, INC. AND SUBSIDIARIES
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
	Pages
Glossary of Terms and Abbreviations	1
Financial Statements:
Report of Independent Auditors	4
Consolidated Balance Sheets as of September 30, 2021 and 2020	5
Consolidated Statements of Income for the years ended September 30, 2021 and 2020	6
Consolidated Statements of Comprehensive Income for the years ended September 30, 2021 and 2020	7
Consolidated Statements of Cash Flows for the years ended September 30, 2021 and 2020	8
Consolidated Statements of Stockholder's Equity for the years ended September 30, 2021 and 2020	9
Notes to Consolidated Financial Statements	10

GLOSSARY OF TERMS AND ABBREVIATIONS

Terms and abbreviations used are defined below:

UGI Utilities, Inc. and Related Entities

Company - UGI Utilities or collectively UGI Utilities and its subsidiaries

Electric Utility - UGI Utilities' regulated electric distribution utility

Energy Services - UGI Energy Services, LLC, an indirect wholly owned subsidiary of UGI and affiliate of UGI Utilities

Gas Utility - UGI Utilities' regulated natural gas distribution business

UGI - UGI Corporation, parent company of UGI Utilities

UGI Utilities - UGI Utilities, Inc., a wholly owned subsidiary of UGI

Other Terms and Abbreviations

1.59% Senior Note - A private placement of $100 million principal amount of senior notes due June 2026, issued by UGI Utilities, Inc.

1.64% Senior Note - A private placement of $75 million principal amount of senior notes due September 2026, issued by UGI Utilities, Inc.

ABO - Accumulated Benefit Obligation

AFUDC - Allowance For Funds Used During Construction

AOCI - Accumulated Other Comprehensive Income (Loss)

ASC - Accounting Standards Codification

ASC 606 - ASC 606, "Revenue from Contracts with Customers"

ASC 740 - ASC 740, "Income Taxes"

ASC 820 - ASC 820, "Fair Value Measurement"

ASC 980 - ASC 980, "Regulated Operations"

ASU - Accounting Standards Update

Bcf - Billions of cubic feet

CDC - Centers for Disease Control and Prevention

COA - Consent Order and Agreement

Core market - Comprises (1) firm residential, commercial and industrial customers to whom UGI Utilities has a statutory obligation to provide service who purchase their natural gas or electricity from UGI Utilities; and (2) residential, commercial and industrial customers to whom UGI Utilities has a statutory obligation to provide service who purchase their natural gas or electricity from others

COVID-19- A novel strain of coronavirus disease discovered in 2019

DS - Default service

1

DSIC - Distribution System Improvement Charge

EDFIT - Excess deferred federal income taxes

ERISA - Employee Retirement Income Security Act of 1974

FASB - Financial Accounting Standards Board

FERC - Federal Energy Regulatory Commission

Fiscal 2020 - The fiscal year ended September 30, 2020

Fiscal 2021 - The fiscal year ended September 30, 2021

Fiscal 2022 - The fiscal year ending September 30, 2022

Fiscal 2023 - The fiscal year ending September 30, 2023

Fiscal 2024 - The fiscal year ending September 30, 2024

Fiscal 2025 - The fiscal year ending September 30, 2025

Fiscal 2026 - The fiscal year ending September 30, 2026

GAAP - U.S. generally accepted accounting principles

IRPA - Interest rate protection agreement

IT - Information technology

MDPSC - Maryland Public Service Commission

MGP - Manufactured gas plant

NAV - Net asset value

NPNS - Normal purchase and normal sale

NYMEX - New York Mercantile Exchange

PADEP - Pennsylvania Department of Environmental Protection

PAPUC - Pennsylvania Public Utility Commission

PBO - Projected benefit obligation

Pension Plan - Defined benefit pension plan for employees hired prior to January 1, 2009 of UGI, UGI Utilities and certain of UGI's other domestic wholly owned subsidiaries

PGC - Purchased gas costs

PJM - PJM Interconnection, LLC

Retail core-market- Comprises firm residential, commercial and industrial customers to whom UGI Utilities has a statutory obligation to provide service that purchase their natural gas from Gas Utility

SCAA - Storage contract administrative agreements

TCJA - Tax Cuts and Jobs Act

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Temporary Rates Order - Order issued by the PAPUC on March 15, 2018, that converted PAPUC approved rates of a defined group of large Pennsylvania public utilities into temporary rates for a period of not more than 12 months while the PAPUC reviewed effects of the TCJA

UGI Utilities Credit Agreement - A five-year unsecured revolving credit agreement entered into by UGI Utilities on June 27, 2019 providing for borrowings up to $350 million, including a letter of credit subfacility of up to $100 million, scheduled to expire in June 2024

USD - U.S. Dollar

Utilities Savings Plan - A 401(k) savings plan for eligible employees

VEBA - Voluntary Employees' Beneficiary Association

WHO - World Health Organization

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