UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                 ---------------


                                    FORM 10-Q


                QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
                     OF THE SECURITIES EXCHANGE ACT OF 1934


 For Quarter Ended September 30, 2000             Commission File Number 1-4456


                     TEXAS EASTERN TRANSMISSION CORPORATION
             (Exact name of Registrant as Specified in its Charter)


                  Delaware                                72-0378240
(State or Other Jurisdiction of Incorporation) (IRS Employer Identification No.)

                              5400 Westheimer Court
                                  P.O. Box 1642
                             Houston, TX 77251-1642
                    (Address of Principal Executive Offices)
                                   (Zip code)

                                  713-627-5400
              (Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes [X] No [ ]

The Registrant meets the conditions set forth in General Instructions (H)(1)(a)
and (b) of Form 10-Q and is therefore filing this Form 10-Q with the reduced
disclosure format. Part I, Item 2 has been reduced and Part II, Item 4 has been
omitted in accordance with such Instruction H.

All of the Registrant's common shares are indirectly owned by Duke Energy
Corporation (File No. 1-4928), which files reports and proxy materials pursuant
to the Securities Exchange Act of 1934.

Indicate the number of shares outstanding of each of the Registrant's classes of
common stock, as of the latest practicable date:

Number of shares of Common Stock, $1 par value, outstanding at
    October 31, 2000.......................................................1,000

<PAGE>
                     TEXAS EASTERN TRANSMISSION CORPORATION
               FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2000
                                      INDEX

<TABLE>
<CAPTION>
Item                                                                                                        Page
----                                                                                                        ----
                          PART I. FINANCIAL INFORMATION
<S>  <C>                                                                                                    <C>
1.   Financial Statements....................................................................................1
     Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2000 and 1999.......1
     Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2000 and 1999.............2
     Consolidated Balance Sheets as of September 30, 2000 and December 31, 1999..............................3
     Notes to Consolidated Financial Statements..............................................................5
2.   Management's Discussion and Analysis of Results of Operations and Financial Condition...................7
</TABLE>
                           PART II. OTHER INFORMATION
<TABLE>
<CAPTION>
<S>  <C>                                                                                                    <C>
1.   Legal Proceedings.......................................................................................8
6.   Exhibits and Reports on Form 8-K........................................................................8

     Signatures..............................................................................................9
</TABLE>

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM
ACT OF 1995

From time to time, the Company's reports, filings and other public announcements
may include assumptions, projections, expectations, intentions or beliefs about
future events. These statements are intended as "forward-looking statements"
under the Private Securities Litigation Reform Act of 1995. The Company cautions
that assumptions, projections, expectations, intentions or beliefs about future
events may and often do vary from actual results and the differences between
assumptions, projections, expectations, intentions or beliefs and actual results
can be material. Accordingly, there can be no assurance that actual results will
not differ materially from those expressed or implied by the forward-looking
statements. Some of the factors that could cause actual achievements and events
to differ materially from those expressed or implied in such forward-looking
statements include state and federal legislative and regulatory initiatives that
affect cost and investment recovery, have an impact on rate structures and
affect the speed and degree to which competition enters the natural gas
industry; the weather and other natural phenomena; the timing and extent of
changes in commodity prices and interest rates; changes in environmental and
other laws and regulations to which the Company is subject or other external
factors over which the Company has no control; the results of financing efforts,
including the Company's ability to obtain financing on favorable terms, which
can be affected by the Company's credit rating and general economic conditions;
growth in opportunities for the Company; and the effect of accounting policies
issued periodically by accounting standard-setting bodies.

<PAGE>
                          PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

                     TEXAS EASTERN TRANSMISSION CORPORATION
                        CONSOLIDATED STATEMENTS OF INCOME
                                   (Unaudited)
                                  (In millions)

                                     Three Months Ended       Nine Months Ended
                                        September 30,           September 30,
                                       ---------------       -----------------
                                       2000      1999         2000       1999
                                       ----      ----         ----       ----
Operating Revenues
       Transportation of natural gas   $176      $187         $547       $582
       Storage of natural gas            18        16           55         48
       Other                             24        17           81         41
                                       ----      ----         ----       ----
            Total operating revenues    218       220          683        671
                                       ----      ----         ----       ----

Operating Expenses
       Operation and maintenance         88        96          268        254
       Depreciation and amortization     22        21           67         64
       Property and other taxes          12        11           36         34
                                       ----      ----         ----       ----
            Total operating expenses    122       128          371        352
                                       ----      ----         ----       ----

Operating Income                         96        92          312        319

Other Income and Expenses                 -         3            3          8
                                       ----      ----         ----       ----

Earnings Before Interest and Taxes       96        95          315        327

Interest Expense                         28        26           82         79
                                       ----      ----         ----       ----

Earnings Before Income Taxes             68        69          233        248

Income Taxes                             25        27           87         95
                                       ----      ----         ----       ----

Net Income                             $ 43      $ 42         $146       $153
                                       ====      ====         ====       ====


                 See Notes to Consolidated Financial Statements.


                                       1
<PAGE>

                     TEXAS EASTERN TRANSMISSION CORPORATION
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                  (In millions)

                                                          Nine Months Ended
                                                            September 30,
                                                          -----------------
                                                           2000        1999
                                                          -----       -----
CASH FLOWS FROM OPERATING ACTIVITIES
   Net income                                             $ 146       $ 153
   Adjustments to reconcile net income to net cash
       provided by operating activities:
       Depreciation and amortization                         70          67
       Deferred income taxes                                (11)          3
       Transition cost recoveries                            65          65
       Net change in current assets and liabilities          13           4
       Other, net                                           (11)        (21)
                                                          -----       -----
            Net cash provided by operating activities       272         271
                                                          -----       -----
CASH FLOWS FROM INVESTING ACTIVITIES
   Capital and investment expenditures                      (78)        (96)
   Net increase in advances receivable - parent            (203)       (175)
   Retirements and other                                      9         -
                                                          -----       -----
            Net cash used in investing activities          (272)       (271)
                                                          -----       -----
   Net change in cash and cash equivalents                  -           -
   Cash and cash equivalents at beginning of period         -           -
                                                          -----       -----
   Cash and cash equivalents at end of period             $ -         $ -
                                                          =====       =====
Supplemental Disclosures
   Cash paid for interest, net of amount capitalized      $  85       $  75
   Cash paid for income taxes                             $ 122       $ 100


                 See Notes to Consolidated Financial Statements.


                                       2
<PAGE>

                     TEXAS EASTERN TRANSMISSION CORPORATION
                           CONSOLIDATED BALANCE SHEETS
                                  (In millions)

                                                    September 30,   December 31,
                                                        2000            1999
                                                     (Unaudited)
                                                    -------------   ------------
ASSETS
Current Assets
       Accounts receivable                             $   85         $   83
       Inventory                                           25             27
       Current portion of regulatory assets                16             81
       Other                                               62             29
                                                       ------         ------
            Total current assets                          188            220
                                                       ------         ------
Investments and Other Assets
       Advances receivable - parent                     1,470          1,267
       Goodwill, net                                      142            146
                                                       ------         ------
            Total investments and other assets          1,612          1,413
                                                       ------         ------
Property, Plant and Equipment
       Cost                                             3,742          3,677
       Less accumulated depreciation and amortization   1,114          1,054
                                                       ------         ------
            Net property, plant and equipment           2,628          2,623
                                                       ------         ------
Regulatory Assets and Deferred Debits                     147            138
                                                       ------         ------

       Total Assets                                    $4,575         $4,394
                                                       ======         ======


                 See Notes to Consolidated Financial Statements.


                                       3
<PAGE>

                     TEXAS EASTERN TRANSMISSION CORPORATION
                           CONSOLIDATED BALANCE SHEETS
                       (In millions, except share amounts)


                                                     September 30,  December 31,
                                                         2000          1999
                                                     (Unaudited)
                                                     -------------  ------------
LIABILITIES AND STOCKHOLDER'S EQUITY

Current Liabilities
      Accounts payable                                  $    7        $   10
      Taxes accrued                                        140           157
      Current maturities of long-term debt                 310           200
      Other                                                140            98
                                                        ------        ------
           Total current liabilities                       597           465
                                                        ------        ------

Long-term Debt
      Notes payable - parent                               605           605
      Other                                                241           351
                                                        ------        ------
           Total long-term debt                            846           956
                                                        ------        ------

Deferred Credits and Other Liabilities
      Deferred income taxes                                614           601
      Other                                                170           170
                                                        ------        ------
           Total deferred credits and other liabilities    784           771
                                                        ------        ------

Common Stockholder's Equity
      Common stock, $1 par value, 1,000 shares
           authorized, issued and outstanding               -             -
      Paid-in capital                                    1,482         1,482
      Retained earnings                                    866           720
                                                        ------        ------
           Total common stockholder's equity             2,348         2,202
                                                        ------        ------

      Total Liabilities and Stockholder's Equity        $4,575        $4,394
                                                        ======        ======

                 See Notes to Consolidated Financial Statements.


                                       4
<PAGE>
                     TEXAS EASTERN TRANSMISSION CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

Note 1. Nature of Operations

Texas Eastern Transmission Corporation (TETCO) is a wholly owned subsidiary of
PanEnergy Corp, which is an indirect wholly owned subsidiary of Duke Energy
Corporation. TETCO and its subsidiaries (the Company) are primarily engaged in
the interstate transportation and storage of natural gas for customers primarily
in the Mid-Atlantic and New England states. The interstate natural gas
transmission and storage operations of the Company are subject to the rules and
regulations of the Federal Energy Regulatory Commission (FERC).

The consolidated financial statements include the accounts of the Company and
all majority-owned subsidiaries. These consolidated financial statements reflect
all normal recurring adjustments that are, in the opinion of management,
necessary to present fairly the financial position and results of operations for
the respective periods.

Note 2. Related Party Transactions

Certain balances due to or from related parties included in the Consolidated
Balance Sheets at September 30, 2000 and December 31, 1999 are as follows:

-------------------------------------------------------------------------------
 In millions
-------------------------------------------------------------------------------
                                                September 30,      December 31,
                                                     2000              1999
                                              -----------------  --------------
Accounts receivable                                $   3             $   7
Taxes accrued                                         94               113
--------------------------------------------- ----------------- ---------------

For the quarters ended September 30, 2000 and 1999, interest expense included
$15 million and $12 million, respectively, of interest associated with notes
payable to parent. Interest for the nine months ended September 30, 2000 and
1999 included $41 million and $35 million, respectively, of interest associated
with notes payable to parent.

Note 3. Gas Imbalances

The Consolidated Balance Sheets include in-kind balances as a result of
differences in gas volumes received and delivered. At September 30, 2000 and
December 31, 1999, other current assets included $53 million and $22 million,
respectively, and other current liabilities included $69 million and $15
million, respectively, related to gas imbalances.

Note 4. Commitments and Contingencies

Litigation. The Company is involved in legal, tax and regulatory proceedings
before various courts, regulatory commissions and governmental agencies
regarding performance, contracts and other matters arising in the ordinary
course of business, some of which involve substantial amounts. Management
believes that the final disposition of these proceedings will not have a
material adverse effect on consolidated results of operations or financial
position.

Other Commitments and Contingencies. In 1993, the U.S. Department of the
Interior announced its intention to seek additional royalties from gas producers
as a result of payments received by such producers in connection with past
take-or-pay settlements, buyouts and buydowns of gas sales contracts with
natural gas pipelines. The Company, with respect to certain producer contract
settlements, may be contractually required to reimburse or, in some instances,
to indemnify producers against such royalty claims. The potential liability of
the producers to the government and of the pipelines to the producers involves
complex issues of law and fact which are likely to take substantial time to
resolve. If required to reimburse or indemnify the producers, the Company will
file with FERC to recover a portion of these costs from pipeline customers.

                                       5
<PAGE>

Periodically, the Company may become involved in contractual disputes with
natural gas transmission customers involving potential or threatened abrogation
of contracts by the customers. If the customers are successful, the Company may
not receive the full value of anticipated benefits under the contracts.

Management believes that these commitments and contingencies will not have a
material adverse effect on consolidated results of operations or financial
position.

Note 5. New Accounting Standards

In June 1998, Statement of Financial Accounting Standard (SFAS) No. 133,
"Accounting for Derivative Instruments and Hedging Activities," was issued. The
Company is required to adopt this standard by January 1, 2001. SFAS No. 133
requires that all derivatives be recognized as either assets or liabilities and
measured at fair value, and changes in the fair value of derivatives are
reported in current earnings, unless the derivative is designated and effective
as a hedge. If the intended use of the derivative is to hedge the exposure to
changes in the fair value of an asset, a liability or a firm commitment, then
changes in the fair value of the derivative instrument will generally be offset
in the income statement by changes in the hedged item's fair value. However, if
the intended use of the derivative is to hedge the exposure to variability in
expected future cash flows then changes in the fair value of the derivative
instrument will generally be reported in Other Comprehensive Income (OCI). The
gains and losses on the derivative instrument that are reported in OCI will be
reclassified to earnings in the periods in which earnings are impacted by the
hedged item.

The Company manages its exposure to risk from existing contractual commitments
through over-the-counter swap agreements, which require the Company to receive
or make payments based on the difference between a specified price and the
actual price of the underlying commodity. As of September 30, 2000, the Company
utilized over-the-counter commodity agreements to hedge market price
fluctuations for natural gas and other energy-related products.

The Company has conducted a review of its contracts to identify derivative
instruments and document hedging activities. In conducting this review, it was
determined that the Company's derivative instruments were cash flow hedges and
such hedges were generally highly effective in offsetting or reducing the risks
of the underlying hedged items. Based on the overall results of this review,
management believes that the adoption of SFAS\ No. 133 will not have a material
adverse effect on the Company's consolidated results of operations or financial
position.

In December 1999, the Securities and Exchange Commission (SEC) released Staff
Accounting Bulletin No. 101 (SAB 101) which provides the SEC staff's views on
revenue recognition policies. The Company has adopted early the provisions of
SAB 101 as of April 1, 2000. The impact of adopting SAB 101 was not material to
the Company's consolidated results of operations or financial position.


                                       6
<PAGE>
Item 2. Management's Discussion and Analysis of Results of Operations and
Financial Condition.

Introduction

Texas Eastern Transmission Corporation (TETCO) is a wholly owned subsidiary of
PanEnergy Corp, which is an indirect wholly owned subsidiary of Duke Energy
Corporation (Duke Energy). TETCO and its subsidiaries (the Company) are
primarily engaged in the interstate transportation and storage of natural gas
for customers primarily in the Mid-Atlantic and New England states. The
interstate natural gas transmission and storage operations of the Company are
subject to the rules and regulations of the Federal Energy Regulatory Commission
(FERC).

RESULTS OF OPERATIONS

Net income for the nine months ended September 30, 2000 decreased $7 million,
compared to the same period in 1999. The decrease was mainly attributable to
1999 results reflecting a $28 million operating expense benefit related to the
completion of certain PCB (polychlorinated biphenyl) soil clean-up programs
below estimates. Increased operating revenues due to other service activities
partially offset this decrease.

LIQUIDITY AND CAPITAL RESOURCES

Capital and investment expenditures for the first nine months of 2000 and 1999
totaled $78 million and $96 million, respectively. Projected 2000 capital and
investment expenditures, including allowance for funds used during construction,
are approximately $110 million, with market-expansion expenditures approximating
25% of the capital budget. These projections are subject to periodic review and
revision. Actual expenditures incurred may vary from estimates due to various
factors, including business expansion opportunities and environmental matters.
Expenditures for 2000 are expected to be funded by cash from operations and/or
collection of intercompany advances receivable.

The Company has $310 million of long-term debt due in 2000. The Company plans to
initially refinance this obligation with Duke Capital Corporation, a subsidiary
of Duke Energy. The Company filed a shelf registration during October 2000 with
the Securities and Exchange Commission under which it will be able to issue up
to $500 million aggregate principal amount of debt securities in the form of
unsecured senior note obligations. Management intends to replace the
intercompany note with Duke Capital Corporation with proceeds from these debt
securities subject to favorable market conditions.

In 1998, the FERC approved the Company's settlement with customers which
included an accelerated recovery from customers of natural gas transition costs.
Effective December 1, 2000, subject to FERC approval, the Company's
transportation rates will be reduced to reflect the successful recovery of these
costs. This rate change is expected to increase the competitiveness of the
Company's transportation services. The reduction in cash flows from operations
that will result from this rate decrease will not have a material affect on the
Company's ability to fund operating and investing activities.

Current Issues

Environmental Matters. Air Quality Control. In October 1998, the Environmental
Protection Agency (EPA) issued a final ruling on regional ozone control that
requires revised State Implementation Plans (SIPs) for 22 eastern states and the
District of Columbia. This EPA ruling was challenged in court by various states,
industry and other interests, including the Company. In March 2000, the court
upheld most aspects of the EPA's rule. Most of the states subject to the rule
submitted their SIP revisions in October 2000. The District of Columbia Circuit
Court has extended the deadline for implementation of emission controls required
by the SIP revisions to May 1, 2004. The EPA has undertaken other ozone-related
actions having virtually identical goals to its October 1998 action. These
actions have likewise been challenged in court by the same or similar parties.
The final resolution of the October 1998 action is expected to resolve these
other ozone-related actions as well. Depending on the resolution of these
matters, costs to the Company may range up to $10 million for additional capital
improvements.
                                       7
<PAGE>

PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

For information concerning material litigation and other contingencies, see Note
4 to the Consolidated Financial Statements.

Item 6. Exhibits and Reports on Form 8-K.

(a)   Exhibits

      (27)  Financial Data Schedule (included in electronic filing only)

(b)   Reports on Form 8-K

      The Company filed no reports on Form 8-K during the third quarter of 2000.


                                       8
<PAGE>

                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.



                           TEXAS EASTERN TRANSMISSION CORPORATION



November 13, 2000          /s/ Dorothy M. Ables
                           -----------------------------------------------------
                           Dorothy M. Ables
                           Senior Vice President, Finance and Administration and
                           Chief Financial Officer

                                       9