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Southern Star Central Gas Pipeline Announces
Rate Increase Filing
April 22, 2004, Owensboro, KY
Southern Star Central Gas Pipeline, Inc. (Southern
Star), a wholly-owned subsidiary of Southern Star Central Corp.
(SSTAR) announced today that it plans to file a general rate
case before the Federal Energy Regulatory Commission (Commission)
on April 29, 2004. Southern Star will propose the rate increase
to be effective June 1, 2004, but anticipates the Commission
will issue an order in late May suspending the effective date
of the increased rates to November 1, 2004, allowing them to
go into effect subject to refund. Southern Star anticipates that
the proposed annual revenue increase resulting from the increased
rates will approximate $49.4 million above the revenues collected
for the twelve months ended January 31, 2004. This increase primarily
reflects an additional investment in facilities and the related
increased return, income taxes and depreciation expenses. This
filing will be Southern Star’s first general rate case
filing since 1995.
About Southern Star
Southern Star, headquartered in Owensboro, Kentucky, is a natural gas transmission
system spanning over 6,000 miles in the Midwest and Mid-continent regions
of the United States. Southern Star’s pipeline system and facilities
are located throughout Kansas, Oklahoma, Nebraska, Missouri, Wyoming, Colorado,
Texas. It serves major markets such as St. Louis, Wichita, and Kansas City.
Southern Star is a wholly-owned subsidiary of Southern Star Central Corp.
(SSTAR), a subsidiary of AIG Highstar Capital, L.P.
The information in this release includes
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements relate to anticipated financial performance, management’s
plans and objectives for future operations, business prospects,
outcome of regulatory proceedings, market conditions and
other matters. Words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan” and “objective” and
other similar expressions identify some of the statements
that are forward-looking. These statements are based on management’s
beliefs and assumptions and on information currently available
to management. Actual results could differ materially from
those contemplated by the forward-looking statements. In
addition to any assumptions and other factors referred to
specifically in connection with such statements, factors
that could cause actual results to differ materially from
those contemplated in any forward-looking statement include,
among others, the following: future utilization of pipeline
capacity, which can depend on energy prices and the prices
for natural gas available on Southern Star’s system,
competition from other pipelines and alternative fuels, the
general level of natural gas demand, decisions by customers
not to renew expiring natural gas transportation contracts,
adequate supplies of natural gas, the construction or abandonment
of gas customer facilities, weather conditions and other
factors beyond Southern Star’s control; operational
risks and limitations of Southern Star’s pipeline system
and of interconnected pipeline systems; changes in federal,
state or local laws and regulations to which Southern Star
is subject, including allowed rates of return and related
regulatory matters, and tax, environmental and employment
laws and regulations; the ability of Southern Star’s
customers to pay for its services; the ability to obtain
governmental and regulatory approval of various expansion
projects; the cost and effects of legal and administrative
proceedings; the effect of accounting interpretations and
changes in accounting policies; and changes in general economic,
market or business conditions.
Other factors and assumptions not identified above may also have been involved
in deriving these forward-looking statements, and the failure of those other
assumptions to be realized, as well as other factors, may also cause actual
results to differ materially from those projected. Southern Star assumes no
obligation to update forward-looking statements to reflect actual results,
changes in assumptions or changes in other factors affecting forward-looking
statements.
Contacts
Rob Carlton
(270) 852-4500
Gayle Hobbs
(270) 852-4503
Form 8-K
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