For further information:

John P. Barnett, Director of External Affairs 713-989-7556

PANHANDLE ENERGY ANNOUNCES
LONG-TERM AMEREN CONTRACTS

HOUSTON, April 11, 2006 -Panhandle Energy today announced its Panhandle Eastern Pipe Line Company and Trunkline Gas Company business units have signed significant long-term transportation and storage contracts with Ameren Corporation subsidiaries, Ameren CILCO, AmerenCIPS, Ameren IP, AmerenUE and AmerenEnergy Generating Company effective April 1.

Panhandle Energy connects with all four of Ameren’s gas utility systems and a substantial portion of its gas-fueled electric generation facilities. The new agreements will enable Ameren to use the Panhandle Eastern and Trunkline Gas pipelines to operationally link its individual assets and move gas between those assets to where it is most needed.

"These contracts are a great example of the collaborative relationship Panhandle Eastern has with its customers," said Gregg Russell, vice president of marketing for Panhandle Eastern and Trunkline Gas Company. "It is this type of relationship that enables both companies to realize the mutual benefits of this long-term agreement. We are pleased to enter into these new contracts that allow us to meet our customer’s needs and to grow our business with an industry leader like Ameren."

The new transportation and storage contracts are for over 640 million cubic feet per day of transportation capacity and over 16 Bcf of storage capacity. Contract terms extend up to 2015.

"We are pleased with the results of our negotiations with Panhandle Eastern, especially their understanding of our new capacity requirements driven by Ameren’s recent acquisition of two major gas utilities and the growth of our gas-fired generation fleet. The new capacity agreements will allow us to operate our systems with greater flexibility at competitive rates along with diversified access to production basins and LNG facilities," said Scott Glaeser, vice president of gas supply and system control for Ameren.

With assets of $18 billion, Ameren serves 2.4 million electric customers and nearly 1 million natural gas customers in a 64,000-square-mile area of Illinois and Missouri.

Panhandle Energy, a Southern Union company, operates almost 18,000 miles of interstate pipelines that transport natural gas from the country’s producing regions to major markets in the Southeast, West, Midwest and Great Lakes region. Panhandle Eastern Pipe Line Company operates a 6,500-mile pipeline system with access to diverse Midcontinent supply sources and to major Midwest and Northeast markets.

About Southern Union Company

Southern Union Company, headquartered in Houston, is one of the nation’s leading diversified natural gas companies, engaged primarily in the transportation, storage, gathering, processing and distribution of natural gas. The company owns and operates the nation’s second largest natural gas pipeline system with more than 22,000 miles of gathering and transportation pipelines and one of North America’s largest liquefied natural gas import terminals.

Through Panhandle Energy, Southern Union’s interstate pipeline interests operate approximately 18,000 miles of interstate pipelines that transport natural gas from the San Juan, Anadarko and Permian Basins, the Rockies, the Gulf of Mexico, Mobile Bay, South Texas and the Panhandle regions of Texas and Oklahoma to major markets in the Southeast, West, Midwest and Great Lakes region.

Southern Union Gas Services, with approximately 4,800 miles of pipelines, is engaged in the gathering, transmission, treating, processing and redelivery of natural gas and natural gas liquids in Texas and New Mexico.

Through its local distribution companies, Missouri Gas Energy, PG Energy and New England Gas Company, Southern Union also serves approximately one million natural gas end-user customers in Missouri, Pennsylvania, Rhode Island and Massachusetts

For further information, visit www.southernunionco.com

Forward-Looking Information:

This news release includes forward-looking statements. Although Southern Union believes that its expectations are based on reasonable assumptions, it can give no assurance that such assumptions will materialize. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein are enumerated in Southern Union’s Forms 10-K and 10-Q as filed with the Securities and Exchange Commission. The company assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by the company, whether as a result of new information, future events, or otherwise.

# # #