Panhandle Eastern Pipe Line Company, LP

THIRD REVISED VOLUME NO. 1

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Effective Date: 06/30/2004, Docket: RP04-321-000, Status: Effective

Original Sheet No. 322 Original Sheet No. 322 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

18.7 Recovery of Miscellaneous Stranded Costs

(a) Purpose

This Section 18.7 establishes the means by which

Panhandle shall recover Miscellaneous Stranded Costs

in accordance with FERC Order No. 636 et seq., using

reservation and volumetric surcharges.

(b) Applicability

The Miscellaneous Stranded Cost Reservation and

Volumetric Surcharges shall apply as specified

herein below commencing with the effectiveness of

this Section 18.7 or the effective date of the

filing made to recover the Miscellaneous Stranded

Costs and continuing for a period of three (3) years

to those shippers served under Rate Schedules FT,

EFT, SCT, IT, EIT, LFT and HFT and thereafter for

such time as is described in Section 18.7(g).

(c) Definitions

The following defines certain terms as they are used

in this Section 18.7:

(1) "Miscellaneous Stranded Cost Reservation

Surcharge" shall mean the currently effective

surcharge applicable to service under Rate

Schedules FT, EFT, SCT, LFT and HFT as shown on

each of Tariff Sheet Nos. 4, 5, 6, 15 and 17 of

Third Revised Volume No. 1.