WILKES-BARRE, Pa., Sept. 17 /PRNewswire/ -- Pennsylvania Enterprises Inc.
(PEI) (NYSE: PNT) and its subsidiaries, PG Energy Inc. and Honesdale Gas
Company (collectively PEI), and Southern Union Company (NYSE: SUG) announced
that, in a public meeting held on September 15, the Pennsylvania Public
Utility Commission (PPUC) approved their joint application for the merger of
Southern Union and PEI.
The joint application was filed with the PPUC on July 6, 1999. The PPUC's
approval of the merger was unanimous and in its order the PPUC noted that the
merger is likely, over time, to provide consumers greater choice and price
reductions resulting from the pro-competitive benefits of the merger.
Additionally, the transfer will be virtually transparent to Pennsylvania
customers, who will continue to receive services pursuant to existing tariffs
and customer arrangements.
PEI's President and Chief Executive Officer Thomas F. Karam stated, "We
are extremely pleased with the timely action by our state's Public Utility
Commission. We look forward to redoubling our commitment to offer Choice to
Pennsylvanians with the added strength of being part of Southern Union. We
will continue to be resolute in providing safe and reliable service to all our
customers."
The PPUC stated, "We [PPUC] are further satisfied that Southern Union,
which has assets of approximately $1.1 billion and provides service to over
one million customers, is both technically and financially well-qualified to
consummate the proposed transaction."
The PPUC also wrote in the order, "... the combined companies will be in a
better position to compete in the newly deregulated natural gas market in
Pennsylvania." The order continued: "... the merger will create a more
financially stable company ... to better serve existing and new Pennsylvania
customers."
Southern Union Company's President and Chief Operating Officer Peter H.
Kelley stated, "Recognition by the Pennsylvania PUC of the benefits of this
merger is visionary. This action by the PPUC recognizes that competition is
the future in our changing industry."
PEI and Southern Union Company announced on June 7 that they had reached a
definitive merger agreement. The companies have stated that they expect the
merger to be completed by the end of this year. Shareholder approvals of both
companies are required and are expected at the shareholder meetings that are
scheduled for October 19, 1999.
Consummation of the merger requires approvals from the Missouri Public
Service Commission, the Florida Public Service Commission, and the Federal
Energy Regulatory Commission. It is expected that all approvals will be
obtained by November 1, 1999.
PEI, based in Wilkes-Barre, serves approximately 152,000 natural gas
customers in 13 counties in central and northeastern Pennsylvania. Its other
subsidiaries are PG Energy Services Inc., which markets energy and energy-
related services under the name PG Energy PowerPlus, PEI Power Corporation and
Theta Land Corp.
Southern Union is an international energy distribution company, serving
more than one million customers through three divisions -- Southern Union Gas,
Missouri Gas Energy and Atlantic Utilities; SUPro Energy Company and Atlantic
Gas Corporation, its propane distribution subsidiaries; and its equity
ownership in a natural gas distribution company serving Piedras Negras,
Mexico. In Texas, Southern Union Gas serves approximately 513,000 customers,
including the cities of Austin, El Paso, Brownsville, Galveston and Port
Arthur. Missouri Gas Energy serves approximately 484,000 customers in western
Missouri, including the cities of Kansas City, St. Joseph, Joplin and Monett.
Additional information about the merger is available at the companies' web
sites at http://www.southernunionco.com and http://www.pnt.com .
This release and other Company reports and statements issued or made from
time to time contain certain "forward-looking statements" concerning projected
future financial performance, expected plans or future operations. PEI
cautions that actual results and developments may differ materially from such
projections or expectations.
Investors should be aware of important factors that could cause actual
results to differ materially from the forward-looking projections or
expectations. These factors include, but are not limited to, weather
conditions in the Company's service territory; cost of gas; regulatory and
court decisions; the receipt of timely and adequate rate relief; the
achievement of operating efficiencies and the purchase and implementation of
new technologies for attaining such efficiencies; impact of relations with
labor unions of bargaining-unit employees; and the effect of strategic
initiatives on earnings and cash flow. Most of these factors are difficult to
accurately predict and are generally beyond the control of the Company.
SOURCE Pennsylvania Enterprises, Inc.
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Related links:
http://www.pnt.com
Company News On-Call:
http://www.prnewswire.com/comp/684209.html or fax,
800-758-5804, ext. 684209
CONTACT:
John J. Hambrose of Pennsylvania Enterprises,
570-829-8756, or George Yankowski, Director of Investor Relations
and Treasurer of Southern Union, 512-370-8305
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