Southern Union Co. said Friday that the Missouri Public Service Commission (“MoPSC”) unanimously approved the settlement agreement reached between it and the MoPSC’s staff and Office of Public Counsel regarding the company’s acquisition of Panhandle Eastern Pipe Line Co. and its subsidiaries from CMS Gas Transmission Company, a subsidiary of CMS Energy Corporation.

With approval in hand, the MoPSC order will become effective April 6.

Southern Union said that CMS Gas has agreed to waive any penalty that would have been due from Southern Union if closing occurred after March 31, noting that efforts continue to be made in connection with obtaining the regulatory approvals needed under the Panhandle Stock Purchase Agreement.

In addition, the company said discussions are ongoing with the staff of the Federal Trade Commission pertaining to its review of the acquisition under the Hart-Scott-Rodino Antitrust Improvements Act.

Earlier in the week (see Daily GPI, March 26), CMS Energy said that it had received approval from a consortium of banks to extend the maturity date of a revolving credit facility from March 31 to the earlier of June 30, 2003 or the closing date of the sale of CMS Panhandle Companies.

In late December (see Daily GPI, Dec. 24, 2002), Southern Union Co. and AIG HighStar Capital LP reached a definitive deal to buy CMS Energy’s Panhandle natural gas pipelines and liquefied natural gas (LNG) facilities for an estimated $1.83 billion. CMS Energy noted that its credit facility had an original obligation of $295.8 million, of which $172 million has been paid down.

Southern Union Company is an energy distribution company serving approximately 1 million customers through its natural gas operating divisions in Missouri, Pennsylvania, Rhode Island and Massachusetts. The Company also owns and operates electric generating facilities in Pennsylvania. For further information, visit www.southernunionco.com.

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