8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 29, 2007

SOUTHERN UNION COMPANY

(Exact name of registrant as specified in its charter)

Delaware	1-6407	75-0571592
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

5444 Westheimer Road Houston, Texas (Address of principal executive offices) 77056-5306 (Zip Code)

Registrant's telephone number, including area code: (713) 989-2000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ]	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ]	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 8.01 OTHER EVENTS.

On February 1, 2007, the Company issued a press release to announce the settlement of litigation brought by Citrus Trading Corp. against Spectra Energy LNG Sales, Inc. (formerly known as Duke Energy LNG Sales, Inc.) for a cash payment to Citrus Trading of $100 million.

The litigation related to Spectra’s 2003 termination of natural gas purchase and sale arrangements with Citrus Trading.

The Company owns a 50 percent equity interest in Citrus Corp., which owns both Citrus Trading and Florida Gas Transmission Company. Through its subsidiary, CCE Holdings, LLC, Southern Union is contractually obligated to share a portion of its proceeds with the Enron bankruptcy estate.

A copy of the press release is attached hereto as Exhibit 99.1.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

(c) Exhibits.

                 Exhibit No.Exhibit

99.1  Southern Union Company February 1, 2007 Press Release.  

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	SOUTHERN UNION COMPANY
	(Registrant)
Date: February 1, 2007	By:	/s/ Robert M. Kerrigan, III
		Robert M. Kerrigan, III
		Vice President - Assistant General Counsel and Secretary

EXHIBIT INDEX

Exhibit No.Exhibit

  99.1   Press Release issued by Southern Union Company dated February 1, 2007.  

EX-99.1

Exhibit 99.1

[Missing Graphic]

07-01

For further information:

John P. Barnett, Director of External Affairs

713-989-7556

John F. Walsh, Director of Investor Relations

1-800-321-7423

SOUTHERN UNION ANNOUNCES

SETTLEMENT OF LITIGATION

HOUSTON, February 1, 2007— Southern Union Company (NYSE: SUG) today announced the settlement of litigation brought by Citrus Trading Corp. against Spectra Energy LNG Sales, Inc. (formerly known as Duke Energy LNG Sales, Inc.) for a cash payment to Citrus Trading of $100 million.

Southern Union owns a 50 percent equity interest in Citrus Corp., which owns both Citrus Trading and Florida Gas Transmission Company. Through its subsidiary, CCE Holdings, LLC, Southern Union is contractually obligated to share a portion of its proceeds with the Enron bankruptcy estate.

The litigation, before the Honorable Lynn N. Hughes in the United States District Court for the Southern District of Texas, related to Spectra’s 2003 termination of natural gas purchase and sale arrangements with Citrus Trading.

“We are delighted to have reached an amicable resolution of this matter. We have tremendous respect for Spectra and look forward to strengthening our relationship,” said Eric D. Herschmann, senior executive vice president of Southern Union, who served as lead negotiator for Citrus Trading.

Herschmann and Daniel W. Bishop, II of Bishop London Brophy & Dodds, P.C. served as lead trial counsel for Citrus Trading.

About Southern Union Company

Southern Union Company, headquartered in Houston, is one of the nation’s leading diversified natural gas companies, engaged primarily in the transportation, storage, gathering, processing and distribution of natural gas. The company owns and operates one of the nation’s largest natural gas pipeline systems with more than 20,000 miles of gathering and transportation pipelines and North America’s largest liquefied natural gas import terminal.

Through Panhandle Energy, Southern Union’s interstate pipeline interests operate more than 15,000 miles of interstate pipelines that transport natural gas from the Anadarko and San Juan basins, the Rockies, the Gulf of Mexico, Mobile Bay and South Texas to major markets in the Southeast, Midwest and Great Lakes region.

Southern Union Gas Services, with approximately 4,800 miles of pipelines, is engaged in the gathering, transmission, treating, processing and redelivery of natural gas and natural gas liquids in Texas and New Mexico.

Through its local distribution companies, Missouri Gas Energy and New England Gas Company, Southern Union also serves approximately half a million natural gas end-user customers in Missouri and Massachusetts.

For further information, visit www.sug.com.

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