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**Exhibit      99.1**

**SOUTHERN        UNION REPORTS RECORD EARNINGS FROM ITS OPERATIONS;**

**Investor        Call & Webcast Scheduled for today at 2 P.M. ET**

**HOUSTON        -- (BUSINESS WIRE)—March 14, 2006 — **

|                                        |   | **Year                  Ended December 31,** |    |
|---------------------------------------------|--------|----------------------------------------------|---------|
|                                        |   | **2004**                                     |    | **2005** |   | **2005** |   |
|                                        |   | **Comparable**                               |    | **Without** |   | **As** |   |
| ($000's,                  except per share) |   | **Period**                                   |    | **Impairment** |   | **Reported** |   |
| Operating                  Revenues         |   |                                         | 1,855.7 |   |   | 2,019.4 |   |   | 2,019.4 |   |
| Net                  Earnings               |   |                                         | 76.7    |   |   | 178.3 |   |   | 3.3 |   |
| E.P.S.                                      |   | $                                            | 0.89    |   | $ | 1.58 |   | $ | 0.03 |   |

**Key        Factors Impacting 2005 Performance Relative to Prior        Year**

| ·   | In                December 2005, the Company recorded a non-cash impairment charge                to                goodwill of $175 million ($1.55 per share) related to the pending                sale of                its Pennsylvania and Rhode Island distribution                properties. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | During                2005, CCE Holdings contributed $70.4 million of earnings from                unconsolidated investments compared to $4.6 million in the prior                year.                Through CCE Holdings, a joint venture in which Southern Union acquired                a                50% interest in November 2004, Southern Union operates the CrossCountry                Energy pipelines which include the Transwestern Pipeline Company                and the                Florida Gas Transmission pipeline systems. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | For                the year ended December 31, 2005, EBIT for the transportation and                storage                segment, excluding earnings from unconsolidated investments, increased                $17.2 million after taking into account hurricane related impacts                of                approximately $10.0 million. Hurricane related impacts include lost                revenues of approximately $3.0 million and additional expenses of                approximately $7.0 million. A key contributor to the improved results                was                increased transportation and storage revenue, up $14.5 million, excluding                lost revenue related to the hurricanes, due to higher average rates                and                the placement of the Trunkline Loop into service in July. In addition,                the                segment benefited from a $6 million increase in LNG terminal service                revenue primarily due to the expanded vaporization capacity that                went into                service in September. The segment also benefited from a $7.4 million                net                reduction in operating, maintenance and general expenses primarily                associated with the workforce reduction and other synergies related                to the                integration of the CrossCountry Energy assets. Offsetting cost increases                include increased depreciation of $5.2                million. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | For                the year ended December 31, 2005, EBIT for the Company’s distribution                segment, excluding the goodwill impairment charge, increased by $24.9                million to $131.1 million. Essentially, all of the improvement was                generated from the Missouri Gas Energy (“MGE”) operating division. The                principal components of the change were: an increase in net operating                revenue of $9.0 million related to the increase in annual base revenues                granted to MGE in October 2004; decreased operating expenses of $7.5                million including decreased pension costs of $6.6 million primarily                related to the deferral of pension expense pursuant to MGE’s October 2004                rate case; and a decrease in taxes of $13.1 million due primarily                to MGE                property tax refunds. Offsetting cost increases include $2.3 million                of                higher insurance costs and a $2.5 million increase in depreciation                expense                due to normal plant growth. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | EBIT                from Corporate operations increased by $13.0 million year over year                primarily due to the recognition of a $4.3 million management fee                for                services provided to CCE Holdings in 2005 coupled with a reduction                in                charges of approximately $7.7 million. Charges incurred in 2005 include                $6.3 million for an other-than-temporary impairment of the Company’s                investment in technology companies, non-cash compensation expense                of $3.8                million related to separation agreements with former executives and                a $3.1                million charge for the curtailment and termination of a pension plan.                Charges in 2004 included $16.4 million for an other-than-temporary                impairment of the Company’s investment in a technology company, $3.0                million to reserve for estimated debt service payments in excess                of                projected tax revenues for the tax incremental financing obtained                for the                development of PEI Power Park, and $1.5 million related to a sales                and use                tax audit. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**2006        Earnings Guidance**

**Annual        Report on Form 10-K**

**Investor        Call & Webcast**

**About        Southern Union Company**

**Forward-Looking        Information**

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**Select        Financial Information**

|                                                                       |   | **Year                  Ended**                                  |                                    | **Quarter                  Ended** |   |
|----------------------------------------------------------------------------|--------|------------------------------------------------------------------|-----------------------------------------|------------------------------------|--------|
|                                                                       |   | **December                  31,**                                |                                    | **December                  31,**  |   |
|                                                                       |   | **2005**                                                    |                                    | **2004**                           |   | **2005** |   |   |   | **2004** |   |
|                                                                       |   | **(Unaudited)**                                                  |                                    | **(Unaudited)**                    |   | **(Unaudited)** |   |   |   | **(Unaudited)** |   |
|                                                                       |   | (In                  thousands of dollars, except share amounts) |
| Operating                  revenues, excluding D&A                     |   | $                                                                | 2,019,430                               |                               | $      | 1,855,705 |   | $ | 691,663 |   |   |   | $ | 559,762 |   |
|                                                                       |   |                                                             |                                    |                               |   |   |   |   |   |   |   |   |   |   |   |
| Operating                  expenses:                                       |   |                                                             |                                    |                               |   |   |   |   |   |   |   |   |   |   |   |
| Cost                  of gas and other energy                              |   |                                                             | 1,040,956                               |                               |   | 914,054 |   |   | 406,924 |   |   |   |   | 295,764 |   |
| Revenue-related                  taxes                                     |   |                                                             | 51,857                                  |                               |   | 45,971 |   |   | 18,253 |   |   |   |   | 13,602 |   |
| Operating,                  maintenance and general                        |   |                                                             | 417,663                                 |                               |   | 427,810 |   |   | 111,140 |   |   |   |   | 116,262 |   |
| Depreciation                  and amortization                             |   |                                                             | 126,393                                 |                               |   | 119,100 |   |   | 32,725 |   |   |   |   | 32,783 |   |
| Goodwill                  Impairment                                       |   |                                                             | 175,000                                 |                               |   | - |   |   | 175,000 |   |   |   |   | - |   |
| Taxes,                  other than on income and revenues                  |   |                                                             | 44,517                                  |                               |   | 55,768 |   |   | 11,524 |   |   |   |   | 13,214 |   |
| Total                  operating expenses                                  |   |                                                             | 1,856,386                               |                               |   | 1,562,703 |   |   | 755,566 |   |   |   |   | 471,625 |   |
| Operating                  income                                          |   |                                                             | 163,044                                 |                               |   | 293,002 |   |   | (63,903 | ) |   |   |   | 88,137 |   |
| Other                  income (expenses):                                  |   |                                                             |                                    |                               |   |   |   |   |   |   |   |   |   |   |   |
| Interest                                                                   |   |                                                             | (135,157                                | )                                  |   | (126,166 | ) |   | (34,972 | ) |   |   |   | (34,280 | ) |
| Earnings                  from unconsolidated investments                  |   |                                                             | 70,742                                  |                               |   | 4,822 |   |   | 12,996 |   |   |   |   | 4,745 |   |
| Other,                  net                                                |   |                                                             | (7,069                                  | )                                  |   | (16,909 | ) |   | (2,035 | ) |   |   |   | (18,449 | ) |
| Total                  other expenses, net                                 |   |                                                             | (71,484                                 | )                                  |   | (138,253 | ) |   | (24,011 | ) |   |   |   | (47,984 | ) |
| Earnings                  from operations before income taxes              |   |                                                             | 91,560                                  |                               |   | 154,749 |   |   | (87,914 | ) |   |   |   | 40,153 |   |
| Federal                  and state income taxes                            |   |                                                             | 70,877                                  |                               |   | 60,668 |   |   | 18,865 |   |   |   |   | 18,242 |   |
| Net                  earnings from operations                              |   |                                                             | 20,683                                  |                               |   | 94,081 |   |   | (106,779 | ) |   |   |   | 21,911 |   |
| Preferred                  stock dividends                                 |   |                                                             | (17,365                                 | )                                  |   | (17,365 | ) |   | (4,342 | ) |   |   |   | (4,342 | ) |
| Net                  earnings available for common stockholders            |   | $                                                                | 3,318                                   |                               | $      | 76,716 |   | $ | (111,121 | ) |   |   | $ | 17,569 |   |
|                                                                       |   |                                                             |                                    |                               |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                  average diluted shares outstanding               |   |                                                             | 112,794,210                             |                               |   | 86,403,380 |   |   | 111,395,340 |   |   |   |   | 94,065,993 |   |
|                                                                       |   |                                                             |                                    |                               |   |   |   |   |   |   |   |   |   |   |   |
| Cash                  flow before changes in working capital               |   |                                                             | 329,743                                 |                               |   | 297,034 |   |   | 90,668 |   |   |   |   | 78,961 |   |
| Working                  capital changes                                   |   |                                                             | (111,106                                | )                                  |   | 27,085 |   |   | (123,901 | ) |   |   |   | (30,354 | ) |
| Net                  Cash flows provided by operating activities           |   |                                                             | 218,637                                 |                               |   | 324,119 |   |   | (33,233 | ) |   |   |   | 48,607 |   |
| Net                  Cash flows used in investing activities               |   |                                                             | 282,529                                 |                               |   | 890,454 |   |   | 70,279 |   |   |   |   | 696,669 |   |
| Net                  Cash flows provided by (used in) financing activities |   |                                                             | 50,777                                  |                               |   | 575,578 |   |   | 119,814 |   |   |   |   | 650,743 |   |
|                                                                       |   |                                                             |                                    |                               |   |   |   |   |   |   |   |   |   |   |   |
|                                                                            |   |                                                             | **December                  31,**  |                               |   | **December                  31,** |   |   |   |   |   |   |   |   |   |
|                                                                       |   |                                                             | **2005**                                |                               |   | **2004** |   |   |   |   |   |   |   |   |   |
| Long                  Term Debt                                            |   |                                                             | 2,049,141                               |                               |   | 2,070,353 |   |   |   |   |   |   |   |   |   |
| Short                  Term Debt & Notes Payable                       |   |                                                             | 546,648                                 |                               |   | 788,650 |   |   |   |   |   |   |   |   |   |
| Preferred                  Stock                                           |   |                                                             | 230,000                                 |                               |   | 230,000 |   |   |   |   |   |   |   |   |   |
| Common                  Equity                                             |   |                                                             | 1,624,069                               |                               |   | 1,267,557 |   |   |   |   |   |   |   |   |   |
| Total                  Capitalization                                      |   |                                                             | 4,449,858                               |                               |   | 4,356,560 |   |   |   |   |   |   |   |   |   |
|                                                                       |   |                                                             |                                    |                               |   |   |   |   |   |   |   |   |   |   |   |
|                                                                       |   |                                                             |                                    |                               |   |   |   |   |   |   |   |   |   |   |   |

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**Select        Financial Information Continued**

|                                                              |   | **Years                    Ended**  |    | **Quarter                    Ended** |   |
|-------------------------------------------------------------------|--------|-------------------------------------|---------|--------------------------------------|--------|
|                                                              |   | **December                    31,** |    | **December                    31,**  |   |
|                                                              |   | **2005**                            |    | **2004**                             |   | **2005** |   | **2004** |   |
|                                                              |   | (Unaudited)                         |    | (Unaudited)                          |   | (Unaudited) |   | (Unaudited) |   |
|                                                              |   | (In                    thousands)   |
| EBIT:                                                             |   |                                |    |                                 |   |   |   |   |   |
| Transportation                    and storage segment             |   | $                                   | 281,344 |                                 | $      | 198,422 |   | $ | 73,371 |   | $ | 56,554 |   |
| Distribution                    segment                           |   |                                | (43,928 | )                                    |   | 106,178 |   |   | (125,288 | ) |   | 36,929 |   |
| Corporate                    and other                            |   |                                | (10,699 | )                                    |   | (23,684 | ) |   | (1,025 | ) |   | (19,050 | ) |
| Total                    EBIT                                     |   |                                | 226,717 |                                 |   | 280,915 |   |   | (52,942 | ) |   | 74,433 |   |
| Interest                                                          |   |                                | 135,157 |                                 |   | 126,166 |   |   | 34,972 |   |   | 34,280 |   |
| Earnings                    before income taxes                   |   |                                | 91,560  |                                 |   | 154,749 |   |   | (87,914 | ) |   | 40,153 |   |
| Federal                    and state income taxes                 |   |                                | 70,877  |                                 |   | 60,668 |   |   | 18,865 |   |   | 18,242 |   |
| Net                    earnings from operations                   |   |                                | 20,683  |                                 |   | 94,081 |   |   | (106,779 | ) |   | 21,911 |   |
| Preferred                    stock dividends                      |   |                                | 17,365  |                                 |   | 17,365 |   |   | 4,342 |   |   | 4,342 |   |
|                                                              |   |                                |    |                                 |   |   |   |   |   |   |   |   |   |
| Net                    earnings available for common stockholders |   | $                                   | 3,318   |                                 | $      | 76,716 |   | $ | (111,121 | ) | $ | 17,569 |   |
|                                                              |   |                                |    |                                 |   |   |   |   |   |   |   |   |   |