EXHIBIT I


FOR IMMEDIATE RELEASE                                             PRESS RELEASE


   SANDELL SENDS A LETTER TO SOUTHERN UNION CHAIRMAN AND CEO GEORGE LINDEMANN
  EXPRESSING CONCERN OVER POOR SHARE PRICE PERFORMANCE AND FAILURE TO COMPLETE
                          GOALS OF 2007 STRATEGIC PLAN

                   SANDELL SEEKS IMMEDIATE SALE OF THE COMPANY

  SANDELL HAS BEGUN PROCESS OF IDENTIFYING CANDIDATES FOR SOUTHERN UNION BOARD
                                  OF DIRECTORS

NEW YORK, JULY 17, 2008 -Sandell Asset Management Corp. ("Sandell"), the largest
individual  shareholder of Southern Union Company ("SUG" or the "Company")  with
ownership  of 9.9% of shares  outstanding,  sent a letter  to George  Lindemann,
Chairman and CEO of SUG.  This letter,  which was also filed with the SEC today,
expressed  serious concern  regarding  management's  and the Board of Directors'
failure to achieve the goals of its 2007 strategic plan, which was the basis for
Sandell  agreeing to withdraw its nominees for the Company's  Board of Directors
at the 2006 annual meeting of stockholders.  Furthermore,  the letter identifies
this lack of action by the  company  as the driver of its  continued  poor stock
performance  on both an absolute  and  relative  basis.  That plan  specifically
stated  goals of forming  an MLP by the end of the third  quarter of 2007 and an
increased focus on return of capital to shareholders. Sandell believes there was
ample time before the recent  disruption in the capital  markets to achieve both
of these goals and credits the failure with a lack of  conviction  in management
and at the board level.  Sandell now believes that SUG's best  alternative is an
immediate  sale of the Company  given likely  interest  from  several  strategic
buyers and robust fundamental  environments in the Company's end markets. In the
event that the Company continues to underperform and management and the Board do
not take material action to deliver value to the shareholders,  Sandell may seek
to replace some or all of the existing  board members with a new slate of highly
qualified  candidates.  Sandell has  recently  begun the process of  identifying
these candidates.

Tom Sandell,  the CEO of Sandell  stated "We have been holders of Southern Union
for over three years now and took  management at their word that they would take
action to enhance  shareholder value. Our patience has not been rewarded and we,
along  with  other   shareholders,   have  witnessed  a  consistent   record  of
underperformance   and  complacency   toward  shareholder  value.  Our  research
indicates  that these  shares  should be worth at least $32 per share and likely
greater than $40 per share in the hands of a qualified,  appropriately motivated
team dedicated to driving value. We believe that our fellow  shareholders  share
our frustration  and we will continue to seek whatever  changes are necessary to
realize full value for this impressive collection of assets. "

For further information, contact:

Mr. Tom Sandell
Chief Executive Officer
Sandell Asset Management Corp.
(212) 603-5700

Sandell Asset  Management  Corp.  is a  multi-billion  dollar global  investment
management firm, founded by Thomas E. Sandell, which focuses on global corporate
events and  restructurings  throughout North America,  Continental  Europe,  the
United Kingdom, Latin America and the Asia-Pacific theatres.  Sandell frequently
will take an "active  involvement"  in  facilitating  financial or  organization
improvements accruing to the benefit of investors.