For further information:

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

PANHANDLE ENERGY ANNOUNCES NON-BINDING OPEN SEASON
FOR PROPOSED EXPANSION OF
PANHANDLE EASTERN PIPE LINE

HOUSTON - December 6, 2005 -Panhandle Energy today announced a non-binding open season for a proposed expansion of its Panhandle Eastern Pipe Line Company natural gas transmission system that would make additional capacity available from multiple producing regions to the upper Midwest.

The open season will begin December 15 and end on January 31, 2006. The company will use the results of the open season to confirm the level of demand and then structure an appropriately sized expansion. Depending on the level of desired capacity, this project would provide up to an incremental 750 million cubic feet per day of natural gas capacity from Panhandle Eastern’s field zone through the Midwest to Michigan using additional pipeline looping and horsepower. The anticipated in-service date could be early 2008.

"Panhandle Eastern is uniquely positioned right now to provide value to customers on both ends of our pipeline," said Rob Bond, president and chief operating officer of Panhandle Energy. "There is a growing market for natural gas in the Midwest that needs to be met and the project could also be expanded to serve eastern markets through existing interconnects in Ohio. Several existing customers have already expressed significant interest in incremental capacity. The company has a long history of providing our customers with reliable, competitively-priced natural gas service. This project reaffirms our commitment to anticipate and meet the nation's growing energy needs."

Panhandle Eastern currently can deliver 2.8 Billion cubic feet per day (Bcf/d) of natural gas to the Midwest and East Coast markets, and has access to 74 Bcf of storage capacity. Panhandle Eastern also has a robust supply portfolio accessing the Anadarko, Permian and San Juan basins, as well as the prolific Rocky Mountain producing area.

Customers seeking more information or wanting to discuss this project in more detail may contact Coralie Carter Sculley at 713.989.7646.

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 is engaged primarily in the transportation, storage and distribution of natural gas.

Through Panhandle Energy, the company owns and operates 100% of Panhandle Eastern Pipe Line Company, Trunkline Gas Company, Sea Robin Pipeline Company, Southwest Gas Storage Company and Trunkline LNG Company - one of North America's largest liquefied natural gas import terminals. Through CCE Holdings, LLC, Southern Union also owns a 50% interest in and operates the CrossCountry Energy pipelines, which include 100% of Transwestern Pipeline Company and 50% of Citrus Corp. Citrus Corp. owns 100% of the Florida Gas Transmission pipeline system. Southern Union's 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.

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.

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