SEC Filings
10-Q
SOUTHERN UNION CO filed this Form 10-Q on 11/10/1997
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           SOUTHERN UNION COMPANY AND SUBSIDIARIES

         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



DEBT

                                          September 30,  June 30,
                                              1997        1997
                                          -------------  --------
                                          (thousands of dollars)

7.60% Senior notes due 2024.............    $ 384,515    $384,515
Other...................................        9,203       2,329
                                            ---------    --------
Total debt..............................      393,718     386,844
  Less current portion..................          797         687
                                            ---------    --------
Total long-term debt....................    $ 392,921    $386,157
                                            =========    ========

The Company has availability under a $100,000,000 revolving
credit facility (Revolving Credit Facility) underwritten by a
syndicate of banks.  The Company has additional availability
under uncommitted line of credit facilities (Uncommitted Facili-
ties) with various banks.  Covenants under the Revolving Credit
Facility allow for up to $35,000,000 of borrowings under Uncom-
mitted Facilities at any one time.  Borrowings under these
facilities are available for Southern Union's working capital,
letter of credit requirements and other general corporate pur-
poses.  The amount outstanding under the Revolving Credit
Facility at September 30, 1997 and October 31, 1997 was
$60,300,000 and $72,900,000, respectively.

The Company is installing an Automated Meter Reading (AMR) system
at Missouri Gas Energy.  The installation of the AMR system
involves a potential investment of $27,000,000.  The Company is
accounting for this system as a capital lease obligation and has
recorded an increase in plant and long-term debt of $6,599,000
during the three-month period ended September 30, 1997.

UTILITY REGULATION AND RATES

Under the order of the Federal Energy Regulatory Commission, a
major supplier of gas to Missouri Gas Energy is allowed recovery
of certain unrecovered deferred gas costs with a remaining
balance of $7,600,000 at September 30, 1997.  Missouri Gas Energy
filed a mechanism to recover these costs with the MPSC which was
approved and allows recovery of these costs from its Missouri
customers.  The receivable and liability associated with these
costs have been recorded as a deferred charge and a deferred
credit, respectively, on the consolidated balance sheet as of
September 30, 1997 and 1996.

Missouri Gas Energy filed a $27,800,000 request for a rate
increase with the MPSC on October 3, 1997.  If a full review of
the case is conducted, new rates would become effective no later
than September 1998.  The increase includes recovery of the
ongoing Missouri Safety Program Costs, investments in customer
service, including the first phases of Automated Meter Reading
technology, and higher bad debt expense.  Proposed rates would
recover a larger percentage of fixed costs through the monthly
customer charge and a smaller percentage through the volumetric
charge.

CONTINGENCIES

Southern Union has entered into an agreement in principle with
another potentially responsible party for settlement of claims
associated with the removal of hazardous substances from the site
of a former coal gasification plan (Pine Street Canal Site) in
Burlington, Vermont.  The cost of the settlement will not have a
materially adverse effect on the Company's financial position,
results of operations or cash flows.


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