Pennsylvania Enterprises Inc and subsidiaries and Southern UnionCo. said the Pennsylvania Public Utility Commission (PPUC) approvedthe merger of the two companies.

The joint application was filed with the PPUC July 6. In itsorder the PPUC noted that the merger is likely, over time, toprovide consumers greater choice and price reductions.

The PPUC wrote in the order, “…the combined companies will bein a better position to compete in the newly deregulated naturalgas market in Pennsylvania.” The order continued: “… the mergerwill create a more financially stable company …to better serveexisting and new Pennsylvania customers.”

PEI and Southern Union said June 7 they agreed to merge. Thecompanies expect the merger to be completed by year-end.Shareholder meetings to vote on the merger are scheduled for Oct.19. Consummation of the merger requires approvals from the MissouriPublic Service Commission, the Florida Public Service Commission,and the Federal Energy Regulatory Commission. It is expected thatall approvals will be obtained by Nov. 1.

PEI, based in Wilkes-Barre, PA, serves 152,000 gas customers incentral and northeastern Pennsylvania.

Southern Union is an international energy distribution companyserving more than one million customers in Texas, Missouri andMexico.

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