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. 332 Original Sheet No. 332 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

24. FUEL REIMBURSEMENT ADJUSTMENT

The Fuel Reimbursement Percentages under Rate Schedules FT, EFT,

SCT, IT, EIT, IOS, WS, PS, FS, IIOS, IWS, LFT and HFT shall be adjusted

downward to reflect reductions and may be adjusted upward to reflect

increases in fuel usage and lost and unaccounted for Gas in accordance

with this Section 24.

24.1 Filing of Fuel Reimbursement Adjustment

(a) Effective Date of Adjustment

The effective date of each Fuel Reimbursement

Adjustment shall be November 1 and April 1.

(b) Filing Procedure

At least thirty 30 Days prior to the effective date of

adjustment, Panhandle shall file with the Commission

and post, as defined by Section 154.2(d) of the

Commission's Regulations, a schedule of effective Fuel

Reimbursement Quantities, as determined in accordance

with Section 24.2 hereof, together with supporting

documentation. Such filing shall be in lieu of any

other rate change filing required by the Commission's

Regulations under the Natural Gas Act.

(c) Fuel Reimbursement Adjustment Period

The Fuel Reimbursement Adjustment Period shall be

billing periods beginning with each effective Date of

Adjustment.

24.2 Computation of Effective Fuel Reimbursement Percentage

The effective Fuel Reimbursement Percentage shall be the

sum of the current Fuel Reimbursement Percentage and the

Annual Fuel Reimbursement Surcharge.