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
judy.townsend@enron.com, dan.junek@enron.com, victor.lamadrid@enron.com, 