| PANHANDLE      EASTERN PIPE LINE COMPANY, LP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                |   |   |                         |   |    |   |   |   |    |   |   |   |    |   |   |   |
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| RATIO      OF EARNINGS TO FIXED CHARGES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
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| The      following table sets forth the consolidated ratio of earnings to fixed      charges on an historical basis for the three months ended March 31, 2009      and the years ended December 31, 2008, 2007, 2006, 2005 and 2004. For      the purpose of calculating such ratios, “earnings” consist of pre-tax      income from continuing operations before income or loss from equity      investees, adjusted to reflect distributed income from equity investments,      and fixed charges, less capitalized interest. “Fixed charges” consist      of interest costs, amortization of debt discount, premiums and issuance      costs and an estimate of interest implicit in rentals. No adjustment      has been made to earnings for the amortization of capital interest for the      periods presented as such amount is immaterial. Interest on FIN 48      liabilities is excluded from the computation of fixed charges as it is      recorded by the Company in income tax expense versus interest      expense. |   |
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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 3      Months Ended |   |   |                         |   |    |   |   |   |    |   |   |   |    |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | March      31,      |   |   | Year      Ended December 31, |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 2009                |   |   | 2008                         |   |    | 2007   |   |   | 2006    |   |   | 2005   |    |   | 2004   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | (In      thousands) |   |
| FIXED      CHARGES:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                |   |   |                         |   |    |   |   |   |    |   |   |   |    |   |   |   |
| Interest      Expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $                   | 20,300 |   |                         | $      | 90,514  |   |   | $      | 83,748  |   |   | $      | 63,322  |   |   | $      | 49,578 |   |   | $ | 52,435 |   |
| Net      amortization of debt discount, premium and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                |   |   |                         |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
|   issuance      expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                | (119   | )      |                         |   | (1,457  | )      |   |   | (1,197  | )      |   |   | (1,333  | )      |   |   | (1,293 | ) |   |   | (4,006 | ) |
| Capitalized      Interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                | 5,471  |   |                         |   | 18,910  |   |   |   | 14,203  |   |   |   | 4,645   |   |   |   | 8,838 |   |   |   | 4,812 |   |
| Interest      portion of rental expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                | 1,061  |   |                         |   | 3,050   |   |   |   | 3,582   |   |   |   | 3,780   |   |   |   | 4,284 |   |   |   | 4,453 |   |
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| Total      Fixed Charges                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $                   | 26,713 |   |                         | $      | 111,017 |   |   | $      | 100,336 |   |   | $      | 70,414  |   |   | $      | 61,407 |   |   | $ | 57,694 |   |
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| EARNINGS:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                |   |   |                         |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Consolidated      pre-tax income (loss) from continuing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                |   |   |                         |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
|    operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $                   | 71,051 |   |                         | $      | 247,206 |   |   | $      | 246,742 |   |   | $      | 225,794 |   |   | $      | 166,189 |   |   | $ | 143,989 |   |
| Earnings      of equity investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                | (37    | )      |                         |   | (304    | )      |   |   | (299    | )      |   |   | (172    | )      |   |   | (226 | ) |   |   | (216 | ) |
| Distributed      income from equity investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                | -      |   |                         |   | -       |   |   |   | -       |   |   |   | 174     |   |   |   | 203 |   |   |   | 174 |   |
| Capitalized      interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                | (5,471 | )      |                         |   | (18,910 | )      |   |   | (14,203 | )      |   |   | (4,645  | )      |   |   | (8,838 | ) |   |   | (4,812 | ) |
| SFAS      145 Adjustment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                | -      |   |                         |   | -       |   |   |   | -       |   |   |   | -       |   |   |   | - |   |   |   | - |   |
| Minority      interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                | -      |   |                         |   | -       |   |   |   | -       |   |   |   | -       |   |   |   | - |   |   |   | - |   |
| Total      fixed charges (from above)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                | 26,713 |   |                         |   | 111,017 |   |   |   | 100,336 |   |   |   | 70,414  |   |   |   | 61,407 |   |   |   | 57,694 |   |
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| Earnings      Available for Fixed Charges                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $                   | 92,256 |   |                         | $      | 339,009 |   |   | $      | 332,576 |   |   | $      | 291,565 |   |   | $      | 218,735 |   |   | $ | 196,829 |   |
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| Ratio      of Earnings to Fixed Charges                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                | 3.5    |   |                         |   | 3.1     |   |   |   | 3.3     |   |   |   | 4.1     |   |   |   | 3.6 |   |   |   | 3.4 |   |