UGI's announcement Thursday that it would cut natural gas prices by 7 percent gives the utility a perfect rate-reduction record for 2006.

Starting today, the average residential-heating customer will see his or her UGI gas bill decrease from $138.43 to $128.37 per month.

It marks UGI's fifth rate change — all decreases — in 2006.

As a result of the price cuts, customer bills are about 15 percent lower than they were one year ago, saving the average customer more than $23 per month, Vicki Ebner, UGI's vice president of marketing and gas supply, said.

"Wholesale market conditions have allowed us to purchase natural gas at prices that were markedly lower than last year, and we are pleased to pass these savings on to our customers," Ebner said.

Last year, prices spiked after the battering of Gulf Coast natural gas-production facilities by hurricanes Katrina and Rita. But natural gas supplies are higher this year, and unseasonably warm temperatures coupled with a forecast of continued mild weather have helped drive down gas commodity prices, Ebner said.

By law, utilities cannot earn a profit on the natural gas-commodity portion of a customer's bill. They are required to pass the cost of the natural gas they purchase directly through to customers without markup.

This year's price cuts by UGI followed a trio of hikes in 2005 totaling more than 27 percent.

Despite lower wholesale gas prices, Lancaster County UGI customers are still paying 8.6 percent more for gas than they did in August 2005, when the average monthly bill was $118.29.

Headquartered in Reading, UGI's Gas Division serves more than 51,000 customers in Lancaster County and 307,000 customers in 15 southeastern Pennsylvania counties.

UGI encourages customers to sign up for its free budget-billing program, which spreads out bills over a 12-month period. Customers with a limited or fixed income can call UGI at (800) UGI-WARM to determine if they are eligible for one of several energy-assistance programs.

Additional information about UGI's Gas Division is available at www.ugi.com.