WILKES-BARRE, Pa., Oct. 31 /PRNewswire/ -- PG Energy, the utility
subsidiary of Pennsylvania Enterprises, Inc. (PEI) (NYSE: PNT), announced
today that it had signed a Purchase Agreement to acquire the Honesdale Gas
Company.  The purchase includes approximately 75 miles of distribution
pipeline, related pressure regulation stations and other facilities, and two
operations centers.  Terms of the purchase were not disclosed.
    The Honesdale Gas Company serves approximately 3,200 customers in portions
of Wayne and Pike counties in northeastern Pennsylvania including Honesdale,
Hawley and Milford.  Gas is supplied to the company through two city gate
stations, or connections, with the Tennessee interstate pipeline at Honesdale
and Milford.
    Thomas F. Karam, PG Energy's President and Chief Executive Officer, said,
"This acquisition provides PG Energy with an opportunity to operate in the
growing Pocono Mountain region of Pennsylvania which is adjacent to our
existing service territory.  It is a natural extension for our company and
positions PG Energy for extensive future growth, particularly in Pike County
which is the fastest-growing county in the state."
    The purchase, which is subject to approval by the Pennsylvania Public
Utility Commission, is expected to be consummated by early next year.
    PEI is a holding company with regulated and non-regulated subsidiaries.
The regulated subsidiary is PG Energy which provides natural gas to
approximately 142,000 customers in ten counties in northeastern Pennsylvania.
The non-regulated group consists of Pennsylvania Energy Resources, Inc., its
subsidiary, Keystone Pipeline Services, Inc., and Theta Land Corporation.

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