Change in Tetco Rates for June 1

Hello All-

Attached above are the cover letter and proposed tariff sheets filed by Texas
Eastern yesterday for a June 1 effective date. The rate changes reflect
under recoveries in their ASA account which tracks their cash-out mechanism
and increased cost of system fuel. The underrecovery in the ASA account has
increased from $22,000 to over $22,000,000 over the period September 1--March
31. Texas Eastern claims that this is largely a result of the gaming of
their currently monthly cash-out (which will likely be changed to weekly in
their 637 proceeding). As a result, Texas Eastern is seeking a waiver of the
annual filing period in order to begin collecting the underrecovery through a
surcharge that would amount to as much as $.0354 from ELA-M3. Texas Eastern
proposes to begin recovery in June so as to extend the recovery period from
12 months (Dec-Nov) to 18 months (Jun-Nov), which will lower the level of the
surcharge.

We'll review the filing to see if there are any grounds for protest /
comment. These types of dollars are usually "rubber-stamped" by FERC for
pass-through but the filing to change the recovery time period may give us
some grounds to protest the recovery.

The full filing can be found at :
http://infopost.link.duke-energy.com/infopost/default.asp?pipe=TE

Please let me know if you have any questions or need any additional
information.

Thanks,
Suzanne