Houston, TX, Feb. 16, 2006 — Southern Union Co. announced the sale of the Rhode Island assets of New England Gas Co. to National Grid USA for $575 million less assumed debt of $77 million. Proceeds from the sale will be used to retire a portion of the bridge facility financing for the acquisition of Sid Richardson Energy Services, which is slated for an early March closing.
The Company will retain New England Gas Co.’s North Attleboro and Fall River, Massachusetts operations.
In January, the company announced that it had entered into a definitive agreement to sell the assets of its PG Energy natural gas distribution division in Pennsylvania to UGI Corp. for $580 million.
Both companies’ boards of directors have approved the transaction, which is contingent upon state and federal regulatory approval and other closing conditions. The sale is expected to close by the third quarter of 2006. Under the terms of the agreements, all active employees of the Rhode Island operations will be offered employment with National Grid.