December 23, 2002

Dear Customer,

On Sunday, December 22, CMS Energy announced that it has reached a definitive agreement to sell the CMS Panhandle Companies to Southern Union Panhandle Corporation. Southern Union Panhandle is a newly formed acquisition company, owned by Southern Union Company and AIG Highstar Capital L.P. The sale includes Panhandle Eastern Pipe Line Company; CMS Trunkline Gas Company; CMS Trunkline LNG Company, which operates the Lake Charles, Louisiana LNG terminal; and Sea Robin Pipeline Company. Our interests in Guardian Pipeline, L.L.C. and Centennial Pipeline LLC will remain with CMS Energy and will likely be sold separately.

Southern Union is an international energy distribution company serving approximately 1.5 million natural gas customers through its major operating divisions in Texas, Missouri, Pennsylvania, Rhode Island, Massachusetts and Mexico. AIG Highstar is a private equity fund sponsored by American International Group to make structured equity investments in infrastructure related projects and operating companies. We expect the sale to be completed in the first quarter of 2003.

Southern Union Panhandle will provide the Panhandle Companies with a strong financial base to move forward with its capital expansion projects such as the Lake Charles LNG terminal expansion recently approved by the FERC, as well as our pipeline integrity projects and other business development efforts. This sale provides a platform to grow our business and continue to render the safe and reliable service as we have over the past 72 years.

We look forward to the opportunities the new affiliation will provide for our customers. As the sale closing draws nearer we will keep you informed to ensure a smooth transition.

For now, we wish you a Happy Holiday Season and a New Year of exciting opportunities.

Sincerely,

Christopher A. Helms

President and CEO