UGI Responds, I’m Unimpressed

https://twitter.com/#!/UGI_Utilities/status/155286257566617600

My response?

https://twitter.com/#!/ccocca/status/155364704930377728

Seriously.  You spent $40 million on infrastructure last year?  You want a cookie?  How much of that was spent in Allentown?  Five city residents died last year because you’re not moving fast enough or spending enough money.

How does that $40 million compare to the dividends you’re paying out? Let’s tweet about that.

8 thoughts on “UGI Responds, I’m Unimpressed”

  1. I don’t live in Allentown. I don’t live in Pennsylvania. Yet I feel like you’re using your words on my behalf, and for that [feeling], you have my gratitude. Just wanted you to know (or be reminded) that local action does make a global impact.

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  2. the pipes are 100+ years old. Great they spent $40 million in 2011. How much was spent when the pipes were 80 years old? We’ve known for a while that cast iron fails, yet UGI waited until the pipes were 100 years old to start the big investments. Fail!

    Have no fear, I’m sure soon the good folks in Harrisburg will allow UGI to start charging us a reinvestment fee to offset their costs and ensure shareholders continue to reap dividends.

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    1. Speaking of dividends, a friend who knows about these things told me the payout last year was something like $207 million. UGI has paid dividends EVERY YEAR since 1885. No wonder, since the pipes are almost that old, too.

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  3. You know it’s a pretty simple situation. You have pipelines in a state of bad repair? You replace them, the quicker the better. You start with the infrastructure that is the highest risk, and you work your way down the inventory as quick as possible… (Risk being determined based on a combination of the degree of disrepair and/or the location.. i.e. is it in a residential area or near a school or hospital etc…) Saying “hey we spent a lot of money and it’s cutting into our profits” is not an excuse to only fix 30% or 40% or 50% of your poorly maintained and/or structurally deficient and/or antiquated systems. If your profits take a beating this quarter or year or you need to extend your credit… it’s not a big deal, it’s money you’ll need to spend anyway. So spend it now or spend it later, if you spend it now, it’s money you’re not spending later, you’re profits will resume later.

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