##### 


















Form 10-Q




[X]


QUARTERLY REPORT PURSUANT TO SECTION 13 OR
15(d)


OF THE SECURITIES EXCHANGE ACT OF 1934


For the quarterly period ended September 30, 2005


OR


[ ]


TRANSITION REPORT PURSUANT TO SECTION 13 OR
15(d)


OF THE SECURITIES EXCHANGE ACT OF 1934


For the transition period
from                  to


Commission File Number 1-4101





Tennessee Gas Pipeline Company




|                                         |  |                    
|---------------------------------------- |  | -------------------
|Delaware                                 |  | 74-1056569         
|(State or Other Jurisdiction             |  | (I.R.S. Employer   
|of Incorporation or Organization)        |  | Identification No.)
|                                        
|El Paso Building                         |  |                    
|1001 Louisiana Street                    |  |                    
|Houston, Texas                           |  | 77002              
|(Address of Principal Executive Offices) |  | (Zip Code)         

(713) 420-2600


þ o


o þ


o þ






TENNESSEE GAS PIPELINE COMPANY MEETS THE CONDITIONS OF
GENERAL INSTRUCTION H(1)(a) AND (b) TO FORM 10-Q AND IS
THEREFORE FILING THIS REPORT WITH A REDUCED DISCLOSURE FORMAT AS
PERMITTED BY SUCH INSTRUCTION.










---



##### 



TENNESSEE GAS PIPELINE COMPANY


TABLE OF CONTENTS


|        |  |                                                                                                                                    |  |      |    | 
|------- |  | ---------------------------------------------------------------------------------------------------------------------------------- |  | ---- | -- | 
|        |  | Caption                                                                                                                            |  | Page |   
|        |  |                                                                                                                                    |  |      |   
|        |  | PART I  Financial Information                                                                                                     |  |      |    | 
|Item 1. |  | Financial Statements                                                                                                               |  |      | 1  | 
|Item 2. |  | Managements Discussion and Analysis of Financial Condition
    and Results of Operations                                          |  |      | 9  | 
|        |  | Cautionary Statements for Purposes of the Safe
    Harbor Provisions of the Private Securities Litigation
    Reform Act of 1995 |  |      | 13 | 
|Item 3. |  | Quantitative and Qualitative Disclosures About Market Risk                                                                         |  |      | *  | 
|Item 4. |  | Controls and Procedures                                                                                                            |  |      | 13 | 
|        |  | PART II  Other Information                                                                                                        |  |      |    | 
|Item 1. |  | Legal Proceedings                                                                                                                  |  |      | 15 | 
|Item 2. |  | Unregistered Sales of Equity Securities and Use of Proceeds                                                                        |  |      | *  | 
|Item 3. |  | Defaults Upon Senior Securities                                                                                                    |  |      | *  | 
|Item 4. |  | Submission of Matters to a Vote of Security Holders                                                                                |  |      | *  | 
|Item 5. |  | Other Information                                                                                                                  |  |      | 15 | 
|Item 6. |  | Exhibits                                                                                                                           |  |      | 15 | 
|        |  | Signatures                                                                                                                         |  |      | 16 | 






|  |                                                                                                                                                                                               
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | We have not included a response to this item in this document
    since no response is required pursuant to the reduced disclosure
    format permitted by General Instruction H to Form 10-Q.



|                                     |  |                          
|------------------------------------ |  | -------------------------
|/d = per day                         |  |                          
|BBtu = billion British thermal units |  | Bcf  = billion cubic feet





i



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##### 



PART I  FINANCIAL INFORMATION


Item 1. Financial Statements


TENNESSEE GAS PIPELINE COMPANY


CONDENSED CONSOLIDATED STATEMENTS OF INCOME


(In millions)


(Unaudited)


|                                       |                                          |               |     |             |               |   |     |      |  |   |      |     |  |   |     |     | 
|-------------------------------------- | ---------------------------------------- | ------------- | --- | ----------- | ------------- | - | --- | ---- |  | - | ---- | --- |  | - | --- | --- | 
|                                       |                                          |               |     | Nine Months |              
|                                       |                                          | Quarter Ended |     |             | Ended         |  
|                                       |                                          | September 30, |     |             | September 30, |  
|                                       |                                          |               |     |             |               |  
|                                       |                                          | 2005          |     |             | 2004          |   |     | 2005 |  |   | 2004 |    
|                                       |                                          |               |     |             |               |   |     |      |  |   |      |    
|Operating revenues                     |                                          | $             | 178 |             |               | $ | 166 |      |  | $ | 565  |     |  | $ | 573 |    
|                                       |                                          |               |     |             |               |   |     |      |  |   |      |    
|Operating expenses                     |                                          |               |     |             |               |   |     |      |  |   |      |     |  |   |     |    
|                                       | Operation and maintenance                |               |     | 75          |               |   |     | 64   |  |   |      | 233 |  |   |     | 197 | 
|                                       | Depreciation, depletion and amortization |               |     | 41          |               |   |     | 41   |  |   |      | 121 |  |   |     | 121 | 
|                                       | Taxes, other than income taxes           |               |     | 13          |               |   |     | 14   |  |   |      | 40  |  |   |     | 39  | 
|                                       |                                          |               |     |             |               |   |     |      |  |   |      |    
|                                       |                                          |               | 129 |             |               |   | 119 |      |  |   | 394  |     |  |   | 357 |    
|                                       |                                          |               |     |             |               |   |     |      |  |   |      |    
|Operating income                       |                                          |               | 49  |             |               |   | 47  |      |  |   | 171  |     |  |   | 216 |    
|Earnings from unconsolidated affiliate |                                          |               | 4   |             |               |   | 3   |      |  |   | 11   |     |  |   | 9   |    
|Other income, net                      |                                          |               | 1   |             |               |   | 1   |      |  |   | 3    |     |  |   | 3   |    
|Interest and debt expense              |                                          |               | (33 | )           |               |   | (33 | )    |  |   | (98  | )   |  |   | (97 | )  
|Affiliated interest income, net        |                                          |               | 8   |             |               |   | 4   |      |  |   | 15   |     |  |   | 8   |    
|                                       |                                          |               |     |             |               |   |     |      |  |   |      |    
|Income before income taxes             |                                          |               | 29  |             |               |   | 22  |      |  |   | 102  |     |  |   | 139 |    
|Income taxes                           |                                          |               | 12  |             |               |   | 9   |      |  |   | 40   |     |  |   | 56  |    
|                                       |                                          |               |     |             |               |   |     |      |  |   |      |    
|Net income                             |                                          | $             | 17  |             |               | $ | 13  |      |  | $ | 62   |     |  | $ | 83  |    
|                                       |                                          |               |     |             |               |   |     |      |  |   |      |    



1



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##### 



TENNESSEE GAS PIPELINE COMPANY


CONDENSED CONSOLIDATED BALANCE SHEETS


(In millions, except share amounts)


(Unaudited)


|                                       |                                                                                                    |                                                         |                                            |       |              |       |       |       |     |       | 
|-------------------------------------- | -------------------------------------------------------------------------------------------------- | ------------------------------------------------------- | ------------------------------------------ | ----- | ------------ | ----- | ----- | ----- | --- | ----- | 
|                                       |                                                                                                    | September 30,                                           |                                            |       | December 31, |      
|                                       |                                                                                                    | 2005                                                    |                                            |       | 2004         |      
|                                       |                                                                                                    |                                                         |                                            |       |              |      
|ASSETS                                
|Current assets                         |                                                                                                    |                                                         |                                            |       |              |       |       |      
|                                       | Cash and cash equivalents                                                                          |                                                         | $                                          |      |              |       | $     |      |    
|                                       | Accounts and notes receivable                                                                      |                                                         |                                            |       |              |       |       |       |    
|                                       |                                                                                                    | Customer, net of allowance of $1 in 2005 and $3 in 2004 |                                            |       | 111          |       |       |       | 103 |      
|                                       |                                                                                                    | Affiliates                                              |                                            |       | 15           |       |       |       | 16  |      
|                                       |                                                                                                    | Other                                                   |                                            |       | 5            |       |       |       | 38  |      
|                                       | Materials and supplies                                                                             |                                                         |                                            | 22    |              |       |       | 23    |    
|                                       | Deferred income taxes                                                                              |                                                         |                                            | 13    |              |       |       | 34    |    
|                                       | Other                                                                                              |                                                         |                                            | 31    |              |       |       | 14    |    
|                                       |                                                                                                    |                                                         |                                            |       |              |      
|                                       |                                                                                                    |                                                         | Total current assets                       |       |              | 197   |       |       |     | 228   | 
|                                       |                                                                                                    |                                                         |                                            |       |              |      
|Property, plant and equipment, at cost |                                                                                                    |                                                         | 3,270                                      |       |              |       | 3,180 |      
|                                       | Less accumulated depreciation, depletion and amortization                                          |                                                         |                                            | 503   |              |       |       | 440   |    
|                                       |                                                                                                    |                                                         |                                            |       |              |      
|                                       |                                                                                                    |                                                         | 2,767                                      |       |              |       | 2,740 |      
|                                       | Additional acquisition cost assigned to utility plant, net                                         |                                                         |                                            | 2,129 |              |       |       | 2,159 |    
|                                       |                                                                                                    |                                                         |                                            |       |              |      
|                                       |                                                                                                    |                                                         | Total property, plant and equipment, net   |       |              | 4,896 |       |       |     | 4,899 | 
|                                       |                                                                                                    |                                                         |                                            |       |              |      
|Other assets                           |                                                                                                    |                                                         |                                            |       |              |       |       |      
|                                       | Notes receivable from affiliates                                                                   |                                                         |                                            | 1,156 |              |       |       | 930   |    
|                                       | Investment in unconsolidated affiliate                                                             |                                                         |                                            | 98    |              |       |       | 151   |    
|                                       | Other                                                                                              |                                                         |                                            | 40    |              |       |       | 38    |    
|                                       |                                                                                                    |                                                         |                                            |       |              |      
|                                       |                                                                                                    |                                                         | 1,294                                      |       |              |       | 1,119 |      
|                                       |                                                                                                    |                                                         |                                            |       |              |      
|                                       |                                                                                                    |                                                         | Total assets                               |       | $            | 6,387 |       |       | $   | 6,246 | 
|                                       |                                                                                                    |                                                         |                                            |       |              |      
|                                      
|LIABILITIES AND STOCKHOLDERS EQUITY  
|                                      
|Current liabilities                    |                                                                                                    |                                                         |                                            |       |              |       |       |      
|                                       | Accounts payable                                                                                   |                                                         |                                            |       |              |       |       |       |    
|                                       |                                                                                                    | Trade                                                   |                                            | $     | 94           |       |       | $     | 73  |      
|                                       |                                                                                                    | Affiliates                                              |                                            |       | 26           |       |       |       | 27  |      
|                                       |                                                                                                    | Other                                                   |                                            |       | 15           |       |       |       | 15  |      
|                                       | Taxes payable                                                                                      |                                                         |                                            | 87    |              |       |       | 79    |    
|                                       | Accrued interest                                                                                   |                                                         |                                            | 44    |              |       |       | 25    |    
|                                       | Contractual deposits                                                                               |                                                         |                                            | 20    |              |       |       | 20    |    
|                                       | Other                                                                                              |                                                         |                                            | 22    |              |       |       | 25    |    
|                                       |                                                                                                    |                                                         |                                            |       |              |      
|                                       |                                                                                                    |                                                         | Total current liabilities                  |       |              | 308   |       |       |     | 264   | 
|                                       |                                                                                                    |                                                         |                                            |       |              |      
|Long-term debt                         |                                                                                                    |                                                         | 1,599                                      |       |              |       | 1,598 |      
|                                       |                                                                                                    |                                                         |                                            |       |              |      
|Other liabilities                      |                                                                                                    |                                                         |                                            |       |              |       |       |      
|                                       | Deferred income taxes                                                                              |                                                         |                                            | 1,260 |              |       |       | 1,228 |    
|                                       | Other                                                                                              |                                                         |                                            | 210   |              |       |       | 209   |    
|                                       |                                                                                                    |                                                         |                                            |       |              |      
|                                       |                                                                                                    |                                                         | 1,470                                      |       |              |       | 1,437 |      
|                                       |                                                                                                    |                                                         |                                            |       |              |      
|                                      
|Commitments and contingencies          |                                                                                                    |                                                         |                                            |       |              |       |       |      
|                                      
|Stockholders equity                   |                                                                                                    |                                                         |                                            |       |              |       |       |      
|                                       | Common stock, par value $5 per share; 300 shares
    authorized; 208 shares issued and outstanding |                                                         |                                            |      |              |       |       |      |    
|                                       | Additional paid-in capital                                                                         |                                                         |                                            | 2,207 |              |       |       | 2,206 |    
|                                       | Retained earnings                                                                                  |                                                         |                                            | 803   |              |       |       | 741   |    
|                                       |                                                                                                    |                                                         |                                            |       |              |      
|                                       |                                                                                                    |                                                         | Total stockholders equity                 |       |              | 3,010 |       |       |     | 2,947 | 
|                                       |                                                                                                    |                                                         |                                            |       |              |      
|                                       |                                                                                                    |                                                         | Total liabilities and stockholders equity |       | $            | 6,387 |       |       | $   | 6,246 | 
|                                       |                                                                                                    |                                                         |                                            |       |              |      



2



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TENNESSEE GAS PIPELINE COMPANY


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


(In millions)


(Unaudited)


|                                        |                                                                               |                                                                             |                                           |      |      |      |   |      |     |      |  
|--------------------------------------- | ----------------------------------------------------------------------------- | --------------------------------------------------------------------------- | ----------------------------------------- | ---- | ---- | ---- | - | ---- | --- | ---- | -
|                                        |                                                                               | Nine Months Ended                                                           |                                          
|                                        |                                                                               | September 30,                                                               |                                          
|                                        |                                                                               |                                                                             |                                          
|                                        |                                                                               | 2005                                                                        |                                           |      | 2004 |     
|                                        |                                                                               |                                                                             |                                           |      |      |     
|Cash flows from operating activities    |                                                                               |                                                                             |                                           |      |      |      |   |     
|                                        | Net income                                                                    |                                                                             | $                                         | 62   |      |      | $ | 83   |    
|                                        | Adjustments to reconcile net income to net cash from operating
    activities |                                                                             |                                           |      |      |      |   |      |    
|                                        |                                                                               | Depreciation, depletion and amortization                                    |                                           |      | 121  |      |   |      | 121 |     
|                                        |                                                                               | Deferred income taxes                                                       |                                           |      | 42   |      |   |      | 15  |     
|                                        |                                                                               | Earnings from unconsolidated affiliate, adjusted for cash
    distributions |                                           |      | 53   |      |   |      | (9  | )   
|                                        |                                                                               | Asset and liability changes                                                 |                                           |      | 67   |      |   |      | 59  |     
|                                        |                                                                               |                                                                             |                                           |      |      |     
|                                        |                                                                               |                                                                             | Net cash provided by operating activities |      |      | 345  |   |      |     | 269  |  
|                                        |                                                                               |                                                                             |                                           |      |      |     
|Cash flows from investing activities    |                                                                               |                                                                             |                                           |      |      |      |   |     
|                                        | Additions to property, plant and equipment                                    |                                                                             |                                           | (121 | )    |      |   | (83  | )  
|                                        | Net change in affiliate advances                                              |                                                                             |                                           | (226 | )    |      |   | (179 | )  
|                                        | Other                                                                         |                                                                             |                                           | 2    |      |      |   | (7   | )  
|                                        |                                                                               |                                                                             |                                           |      |      |     
|                                        |                                                                               |                                                                             | Net cash used in investing activities     |      |      | (345 | ) |      |     | (269 | )
|                                        |                                                                               |                                                                             |                                           |      |      |     
|Net change in cash and cash equivalents |                                                                               |                                                                             |                                          |      |      |      |  |     
|Cash and cash equivalents               |                                                                               |                                                                             |                                           |      |      |      |   |     
|                                        | Beginning of period                                                           |                                                                             |                                           |     |      |      |   |     |    
|                                        |                                                                               |                                                                             |                                           |      |      |     
|                                        | End of period                                                                 |                                                                             | $                                         |     |      |      | $ |     |    
|                                        |                                                                               |                                                                             |                                           |      |      |     



3



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TENNESSEE GAS PIPELINE COMPANY


NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Unaudited)


1. Basis of Presentation and Significant Accounting
Policies


Basis of Presentation




New Accounting Pronouncements Issued But
Not Yet Adopted




Accounting for Asset Retirement Obligations. Accounting for
Conditional Asset Retirement Obligations Accounting for Asset
Retirement Obligations


Accounting for Pipeline Integrity Costs.


2. Debt and Credit Facilities


Debt




4



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##### 



Credit Facilities




3. Commitments and Contingencies


Legal Proceedings


Grynberg. In re: Natural Gas Royalties Qui Tam
Litigation


Will Price (formerly Quinque). Will Price, et al. v.
Gas Pipelines and Their Predecessors, et al


Hurricane Litigation. George
Barasich, et al. v. Columbia Gulf Transmission Company, et
al. Charles Villa Jr., et al. v. Columbia Gulf
Transmission Company, et al.






5



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Environmental Matters






|                                    |  |   |    |  
|----------------------------------- |  | - | -- | -
|Balance at January 1, 2005          |  | $ | 42 |  
|Payments for remediation activities |  |   | (4 | )
|                                    |  |   |   
|Balance at September 30, 2005       |  | $ | 38 |  
|                                    |  |   |   



Polychlorinated Biphenyls (PCB) Cost Recoveries.


Kentucky PCB Project.


6



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##### 



CERCLA Matters.




Guarantees




4. Investment in Unconsolidated Affiliate and
Transactions with Affiliates




| |                                       
| | --------------------------------------
| | Investment in Unconsolidated Affiliate



|                        |                                                  |               |   |             |               |  |   |      |  |  |      |    |  |  |   |    | 
|----------------------- | ------------------------------------------------ | ------------- | - | ----------- | ------------- |  | - | ---- |  |  | ---- | -- |  |  | - | -- | 
|                        |                                                  |               |   | Nine Months |              
|                        |                                                  | Quarter Ended |   |             | Ended         | 
|                        |                                                  | September 30, |   |             | September 30, | 
|                        |                                                  |               |   |             |               | 
|                        |                                                  | 2005          |   |             | 2004          |  |   | 2005 |  |  | 2004 |   
|                        |                                                  |               |   |             |               |  |   |      |  |  |      |   
|                        |                                                  | (In millions) |  
|Operating results data: |                                                  |               |   |             |               |  |   |      |  |  |      |    |  |  |   |   
|                        | Operating revenues                               |               | $ | 4           |               |  | $ | 4    |  |  | $    | 13 |  |  | $ | 13 | 
|                        | Operating expenses                               |               |   | 1           |               |  |   | 2    |  |  |      | 5  |  |  |   | 6  | 
|                        | Income from continuing operations and net income |               |   | 4           |               |  |   | 3    |  |  |      | 11 |  |  |   | 9  | 



7



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Transactions with Affiliates


Cash Management Program.


Taxes.


Other Affiliate Balances.


|                              |  |               |    |  |              |   |   | 
|----------------------------- |  | ------------- | -- |  | ------------ | - | - | 
|                              |  | September 30, |    |  | December 31, |  
|                              |  | 2005          |    |  | 2004         |  
|                              |  |               |    |  |              |  
|                              |  | (In millions) |   
|Other current assets          |  | $             |   |  |              | $ | 2 | 
|Non-current note receivable   |  |               | 66 |  |              |   | 2 | 
|Contractual deposits          |  |               | 7  |  |              |   | 7 | 
|Other non-current liabilities |  |               | 1  |  |              |   | 1 | 



Affiliate Revenues and Expenses.


|                                                           |  |               |    |             |               |   |    |      |  |   |      |  |  |   |    | 
|---------------------------------------------------------- |  | ------------- | -- | ----------- | ------------- | - | -- | ---- |  | - | ---- |  |  | - | -- | 
|                                                           |  |               |    | Nine Months |              
|                                                           |  | Quarter Ended |    |             | Ended         |  
|                                                           |  | September 30, |    |             | September 30, |  
|                                                           |  |               |    |             |               |  
|                                                           |  | 2005          |    |             | 2004          |   |    | 2005 |  |   | 2004 | 
|                                                           |  |               |    |             |               |   |    |      |  |   |      | 
|                                                           |  | (In millions) |   
|Revenues from affiliates                                   |  | $             | 7  |             |               | $ | 4  |      |  | $ | 19   |  |  | $ | 15 | 
|Operations and maintenance expenses from affiliates        |  |               | 15 |             |               |   | 13 |      |  |   | 42   |  |  |   | 35 | 
|Reimbursements of operating expenses charged to affiliates |  |               | 20 |             |               |   | 20 |      |  |   | 59   |  |  |   | 56 | 

8



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|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 2. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations



Results of Operations




|                                       |                  |                                      |       |             |               |   |       |      |  |   |       |     |  |   |       |     | 
|-------------------------------------- | ---------------- | ------------------------------------ | ----- | ----------- | ------------- | - | ----- | ---- |  | - | ----- | --- |  | - | ----- | --- | 
|                                       |                  |                                      |       | Nine Months |              
|                                       |                  | Quarter Ended                        |       |             | Ended         |  
|                                       |                  | September 30,                        |       |             | September 30, |  
|                                       |                  |                                      |       |             |               |  
|                                       |                  | 2005                                 |       |             | 2004          |   |       | 2005 |  |   | 2004  |    
|                                       |                  |                                      |       |             |               |   |       |      |  |   |       |    
|                                       |                  | (In millions, except volume amounts) |      
|Operating revenues                     |                  | $                                    | 178   |             |               | $ | 166   |      |  | $ | 565   |     |  | $ | 573   |    
|Operating expenses                     |                  |                                      | (129  | )           |               |   | (119  | )    |  |   | (394  | )   |  |   | (357  | )  
|                                       |                  |                                      |       |             |               |   |       |      |  |   |       |    
|                                       | Operating income |                                      |       | 49          |               |   |       | 47   |  |   |       | 171 |  |   |       | 216 | 
|                                       |                  |                                      |       |             |               |   |       |      |  |   |       |    
|Earnings from unconsolidated affiliate |                  |                                      | 4     |             |               |   | 3     |      |  |   | 11    |     |  |   | 9     |    
|Other income, net                      |                  |                                      | 1     |             |               |   | 1     |      |  |   | 3     |     |  |   | 3     |    
|                                       |                  |                                      |       |             |               |   |       |      |  |   |       |    
|                                       | Other            |                                      |       | 5           |               |   |       | 4    |  |   |       | 14  |  |   |       | 12  | 
|                                       |                  |                                      |       |             |               |   |       |      |  |   |       |    
|                                       | EBIT             |                                      |       | 54          |               |   |       | 51   |  |   |       | 185 |  |   |       | 228 | 
|Interest and debt expense              |                  |                                      | (33   | )           |               |   | (33   | )    |  |   | (98   | )   |  |   | (97   | )  
|Affiliated interest income, net        |                  |                                      | 8     |             |               |   | 4     |      |  |   | 15    |     |  |   | 8     |    
|Income taxes                           |                  |                                      | (12   | )           |               |   | (9    | )    |  |   | (40   | )   |  |   | (56   | )  
|                                       |                  |                                      |       |             |               |   |       |      |  |   |       |    
|                                       | Net income       |                                      | $     | 17          |               |   | $     | 13   |  |   | $     | 62  |  |   | $     | 83  | 
|                                       |                  |                                      |       |             |               |   |       |      |  |   |       |    
|Throughput volumes (BBtu/d)            |                  |                                      | 4,146 |             |               |   | 3,858 |      |  |   | 4,492 |     |  |   | 4,520 |    
|                                       |                  |                                      |       |             |               |   |       |      |  |   |       |    

9



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|                                                                                            |                      |                         |    |      |                   |   |    |       |      |   |        |   |  |         |    |   |         |   |     |       |   |   |        |     |   |   |   |   |  |   |     |     |  
|------------------------------------------------------------------------------------------- | -------------------- | ----------------------- | -- | ---- | ----------------- | - | -- | ----- | ---- | - | ------ | - |  | ------- | -- | - | ------- | - | --- | ----- | - | - | ------ | --- | - | - | - | - |  | - | --- | --- | -
|                                                                                            |                      | Quarter Ended           |    |      | Nine Months Ended |  
|                                                                                            |                      | September 30,           |    |      | September 30,     |  
|                                                                                            |                      |                         |    |      |                   |  
|                                                                                            |                      |                         |    | EBIT |                   |   |    |       | EBIT |  
|                                                                                            |                      | Revenue                 |    |      | Expense           |   |    | Other |      |   | Impact |   |  | Revenue |    |   | Expense |   |     | Other |   |   | Impact |    
|                                                                                            |                      |                         |    |      |                   |   |    |       |      |   |        |   |  |         |    |   |         |   |     |       |   |   |        |    
|                                                                                            |                      | Favorable/(Unfavorable) |    |      |                  
|                                                                                            |                      | (In millions)           |    |      |                  
|Gas not used in operations and other natural gas sales                                      |                      | $                       | 12 |      |                   | $ |   |       |      | $ |       |   |  | $       | 12 |   |         | $ | 11  |       |   | $ | (2     | )   |   | $ |  |   |  | $ | 9   |    
|Resolution in 2004 of measurement dispute at a processing plant
    serving our system      |                      |                         |   |      |                   |   |   |       |      |   |       |   |  |         |   |   |         |   | (10 | )     |   |   |       |     |   |   |  |   |  |   | (10 | )  
|Higher electric compression costs                                                           |                      |                         |   |      |                   |   |   |       |      |   |       |   |  |         |   |   |         |   |    |       |   |   | (5     | )   |   |   |  |   |  |   | (5  | )  
|Completion of regulatory asset collection and regulatory
    liability amortization in 2004 |                      |                         | (1 | )    |                   |   |   |       |      |   |       |   |  |         | (1 | ) |         |   | (4  | )     |   |   |       |     |   |   |  |   |  |   | (4  | )  
|Higher benefits and allocation of overhead and shared service
    costs                     |                      |                         |   |      |                   |   | (5 | )     |      |   |       |   |  |         | (5 | ) |         |   |    |       |   |   | (19    | )   |   |   |  |   |  |   | (19 | )  
|Higher operating costs                                                                      |                      |                         |   |      |                   |   | (7 | )     |      |   |       |   |  |         | (7 | ) |         |   |    |       |   |   | (12    | )   |   |   |  |   |  |   | (12 | )  
|Other(1)                                                                                    |                      |                         | 1  |      |                   |   | 2  |       |      |   | 1      |   |  |         | 4  |   |         |   | (5  | )     |   |   | 1      |     |   |   | 2 |   |  |   | (2  | )  
|                                                                                            |                      |                         |    |      |                   |   |    |       |      |   |        |   |  |         |    |   |         |   |     |       |   |   |        |    
|                                                                                            | Total impact on EBIT |                         | $  | 12   |                   |   | $  | (10   | )    |   | $      | 1 |  |         | $  | 3 |         |   | $   | (8    | ) |   | $      | (37 | ) |   | $ | 2 |  |   | $   | (43 | )
|                                                                                            |                      |                         |    |      |                   |   |    |       |      |   |        |   |  |         |    |   |         |   |     |       |   |   |        |    






|    |                                              
|--- | ---------------------------------------------
|(1) | Consists of individually insignificant items.



Gas Not Used in Operations and Other Natural Gas Sales.


Allocated Costs.


Higher Operating Costs.


Accounting for Pipeline Integrity Costs.


10



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##### 



Other.


Affiliated Interest Income, Net




| |                                                  
| | -------------------------------------------------
| | Third Quarter 2005 Compared to Third Quarter 2004





| |                                                          
| | ---------------------------------------------------------
| | Nine Months Ended 2005 Compared to Nine Months Ended 2004



Income Taxes


|                   |  |                                 |    |             |               |   |    |      |  |   |      |   |  |   |    |  
|------------------ |  | ------------------------------- | -- | ----------- | ------------- | - | -- | ---- |  | - | ---- | - |  | - | -- | -
|                   |  |                                 |    | Nine Months |              
|                   |  | Quarter Ended                   |    |             | Ended         |  
|                   |  | September 30,                   |    |             | September 30, |  
|                   |  |                                 |    |             |               |  
|                   |  | 2005                            |    |             | 2004          |   |    | 2005 |  |   | 2004 |  
|                   |  |                                 |    |             |               |   |    |      |  |   |      |  
|                   |  | (In millions, except for rates) |   
|Income taxes       |  | $                               | 12 |             |               | $ | 9  |      |  | $ | 40   |   |  | $ | 56 |  
|Effective tax rate |  |                                 | 41 | %           |               |   | 41 | %    |  |   | 39   | % |  |   | 40 | %



Liquidity




11



---



##### 





Capital Expenditures






Commitments and Contingencies




12



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##### 



CAUTIONARY STATEMENTS FOR PURPOSES OF THE SAFE
HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995








|        |                                                           
|------- | ----------------------------------------------------------
|Item 3. | Quantitative and Qualitative Disclosures About Market Risk





|        |                        
|------- | -----------------------
|Item 4. | Controls and Procedures

Material Weaknesses Previously Disclosed




Evaluation of Disclosure Controls and Procedures




13



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##### 



Changes in Internal Control Over Financial Reporting






| |   |                                                                                                                                                                                                                                                                        
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Implemented automated and manual controls for our primary
    financial system to monitor unauthorized password changes;                                                                                                                                               
|
| |  | Performed an in-depth analysis of our primary financial
    accounting system to examine existing functional access to
    identify any potentially incompatible duties and developed an
    enhanced segregation of duties matrix based on this analysis;             
|
| |  | Modified our primary financial accounting system to eliminate or
    modify potentially conflicting functionality;                                                                                                                                                     
|
| |  | Implemented a process to evaluate all new user access requests
    against segregation of duties matrices to ensure no new
    conflicts are created for our applications described above;                                                                             
|
| |  | Separated security administration rights from system update
    capabilities for our applications described above; and                                                                                                                                                 
|
| |  | Implemented monitoring procedures to monitor activities of
    security administration roles for our applications described
    above;                                                                                                                                 
|
| |  | Formalized, issued and implemented various accounting policies
    including an accounting policy that requires a higher level of
    review of non-routine transactions; and                                                                                          
|
| |  | Developed and improved processes to ensure adequate
    communication between commercial and accounting personnel to
    allow for the complete and timely identification, communication
    and review of information required to record non-routine
    transactions.





| |   |                                                                                         
| | - | ----------------------------------------------------------------------------------------
| |  | Conducted training on company-wide accounting policies;                                 
|
| |  | Improved our procedures for managing information systems
    changes; and               
|
| |  | Enhanced the automated controls over the preparation and posting
    of journal entries.



14



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##### 



PART II  OTHER INFORMATION


Item 1. Legal Proceedings




Item 2. Unregistered Sales of Equity Securities and
Use of Proceeds




Item 3. Defaults Upon Senior Securities




Item 4. Submission of Matters to a Vote of Security
Holders




Item 5. Other Information




Item 6. Exhibits




|        |      |    |  |  |             |                                                                                                            
|------- | ---- | -- |  |  | ----------- | -----------------------------------------------------------------------------------------------------------
|Exhibit |      |    |  |  |            
|Number  |      |    |  |  | Description
|        |      |    |  |  |            
|        | *31  | .A |  |  |             | Certification of Principal Executive Officer pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.
|        | *31  | .B |  |  |             | Certification of Chief Financial Officer pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.    
|        | **32 | .A |  |  |             | Certification of Principal Executive Officer pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002.
|        | **32 | .B |  |  |             | Certification of Chief Financial Officer pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002.    





| |                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We hereby undertake, pursuant to
    Regulation S-K, Item 601(b),
    paragraph (4)(iii), to furnish to the U.S. Securities and
    Exchange Commission, upon request, all constituent instruments
    defining the rights of holders of our long-term debt not filed
    herewith for the reason that the total amount of securities
    authorized under any of such instruments does not exceed
    10 percent of our total consolidated assets.

15



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##### 



SIGNATURES






| |                               
| | ------------------------------
| | TENNESSEE GAS PIPELINE COMPANY



| |                                    
| | -----------------------------------
| | /s/ STEPHEN C. BEASLEY             
| |                                    
| | Stephen C. Beasley                 
| | Chairman of the Board and President
| | (Principal Executive Officer)      



| |                                             
| | --------------------------------------------
| | /s/ GREG G. GRUBER                          
| |                                             
| | Greg G. Gruber                              
| | Senior Vice President,                      
| | Chief Financial Officer and Treasurer       
| | (Principal Financial and Accounting Officer)

16



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##### 



TENNESSEE GAS PIPELINE COMPANY


EXHIBIT INDEX




|        |      |    |  |  |             |                                                                                                            
|------- | ---- | -- |  |  | ----------- | -----------------------------------------------------------------------------------------------------------
|Exhibit |      |    |  |  |            
|Number  |      |    |  |  | Description
|        |      |    |  |  |            
|        | *31  | .A |  |  |             | Certification of Principal Executive Officer pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.
|        | *31  | .B |  |  |             | Certification of Chief Financial Officer pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.    
|        | **32 | .A |  |  |             | Certification of Principal Executive Officer pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002.
|        | **32 | .B |  |  |             | Certification of Chief Financial Officer pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002.