Energy Services Accounts Receivable Securitization Facility

9 Months Ended

Jun. 30, 2012

Transfers and Servicing of Financial Assets [Abstract]

Energy Services Accounts Receivable Securitization Facility

Energy Services Accounts Receivable Securitization Facility

Energy Services has a $200 receivables purchase facility (“Receivables Facility”) with an issuer of receivables-backed commercial paper currently scheduled to expire in April 2013, although the Receivables Facility may terminate prior to such date due to the termination of commitments of the Receivables Facility back-up purchasers.

Under the Receivables Facility, Energy Services transfers, on an ongoing basis and without recourse, its trade accounts receivable to its wholly owned, special purpose subsidiary, Energy Services Funding Corporation (“ESFC”), which is consolidated for financial statement purposes. ESFC, in turn, has sold, and subject to certain conditions, may from time to time sell, an undivided interest in some or all of the receivables to a commercial paper conduit of a major bank. ESFC was created and has been structured to isolate its assets from creditors of Energy Services and its affiliates, including UGI. Energy Services continues to service, administer and collect trade receivables on behalf of the commercial paper issuer and ESFC. Trade receivables sold to the commercial paper conduit remain on the Company’s balance sheet; the Company reflects a liability equal to the amount advanced by the commercial paper conduit; and the Company records interest expense on amounts sold to the commercial paper conduit.

During the nine months ended June 30, 2012 and 2011, Energy Services transferred trade receivables to ESFC totaling $674.4 and $923.5, respectively. During the nine months ended June 30, 2012 and 2011, ESFC sold an aggregate $266.5 and $68.0, respectively, of undivided interests in its trade receivables to the commercial paper conduit. At June 30, 2012, the balance of ESFC receivables was $41.0 and there was $10.0 sold to the commercial paper conduit. At June 30, 2011, the outstanding balance of ESFC receivables was $50.9 and there were no amounts sold to the commercial paper conduit.