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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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