----

**UNITED        STATES SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON,        D. C. 20549**

**_______________**

**FORM        10-Q**

**For        the quarterly period ended **

**March        31, 2006**

**Commission        File No. 1-2921**

**_______________**

**PANHANDLE        EASTERN PIPE LINE COMPANY, LP**

| **Delaware**                                              | **44-0382470**                       |
|-----------------------------------------------------------|--------------------------------------|
| (State                  or other jurisdiction of          | (I.R.S.                  Employer    |
| incorporation                  or organization)           | Identification                  No.) |
|                                                      |                                 |
|                                                      |                                 |
| **5444                  Westheimer Road**                 | **77056-5306**                       |
| **Houston,                  Texas**                       | (Zip                  Code)          |
| (Address                  of principal executive offices) |                                 |

**(713)        989-7000**

| Title                  of each Class                   |   | Name                  of each exchange in which registered |
|--------------------------------------------------------|--------|------------------------------------------------------------|
| 4.80%                  Senior Notes due 2008, Series B |   | New                  York Stock Exchange                   |
| 6.05%                  Senior Notes due 2013, Series B |   | New                  York Stock Exchange                   |

**P**

**P**
** **

** **
**P**

----

**PANHANDLE        EASTERN PIPE LINE COMPANY, LP**

**FORM        10-Q**

**March        31, 2006**

**Index**

| **PART                  I. FINANCIAL INFORMATION:**                                                                                                                          | Page(s) |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|
|                                                                                                                                                                         |    |
| ITEM                  1. Financial Statements (Unaudited):                                                                                                                   |    |
|                                                                                                                                                                         |    |
| Condensed                  consolidated statement of operations - three months ended March                  31, 2006                  and 2005.                              | 2       |
|                                                                                                                                                                         |    |
| Condensed                  consolidated balance sheet - March 31, 2006 and                  December 31, 2005.                                                               | 3-4     |
|                                                                                                                                                                         |    |
| Condensed                  consolidated statement of cash flows                  -                  three months ended March 31, 2006 and 2005.                              | 5       |
|                                                                                                                                                                         |    |
| Condensed                  consolidated statement of partners’ capital and                  comprehensive income - three months                  ended March 31, 2006. | 6       |
|                                                                                                                                                                         |    |
| Notes                  to condensed consolidated financial                  statements.                                                                                      | 7-19    |
|                                                                                                                                                                         |    |
| ITEM                  2. Management's Discussion and Analysis of Financial                  Condition and Results of Operations.                                             | 20-22   |
|                                                                                                                                                                         |    |
| ITEM                  3. Quantitative and Qualitative Disclosures about                  Market Risk.                                                                        | 22      |
|                                                                                                                                                                         |    |
| ITEM                  4. Controls and Procedures.                                                                                                                            | 22      |
|                                                                                                                                                                         |    |
| **PART                  II. OTHER INFORMATION:**                                                                                                                             |    |
|                                                                                                                                                                         |    |
| ITEM                  1. Legal Proceedings.                                                                                                                                  | 24      |
|                                                                                                                                                                         |         |
|                          ITEM 1A. Risk Factors.                                                                                           | 24      |
|                                                                                                                                                                         |    |
| ITEM                  2. Unregistered Sales of Equity Securities and Use of                  Proceeds.                                                                       | 24      |
|                                                                                                                                                                         |    |
| ITEM                  3. Defaults Upon Senior                  Securities.                                                                                                   | 24      |
|                                                                                                                                                                         |    |
| ITEM                  4. Submission of Matters to a Vote of Security                  Holders.                                                                               | 24      |
|                                                                                                                                                                         |    |
| ITEM                  5. Other Information.                                                                                                                                  | 24      |
|                                                                                                                                                                         |    |
| ITEM                  6. Exhibits.                                                                                                                                           | 24      |
|                                                                                                                                                                         |    |
| SIGNATURES                                                                                                                                                                   | 26      |
|                                                                                                                                                                         |    |

*1*

----

**PANHANDLE        EASTERN PIPE LINE COMPANY, LP**

**CONDENSED        CONSOLIDATED STATEMENT OF OPERATIONS**

**(UNAUDITED)**

|                                                               |   | **Three                    Months Ended March 31,** |    |
|--------------------------------------------------------------------|--------|-----------------------------------------------------|---------|
|                                                               |   | **2006**                                            |    | **2005** |   |
|                                                               |   | (In                    thousands of dollars)        |    |
| **Operating                    revenue**                           |   |                                                |    |   |   |   |   |
| Transportation                    and storage of natural gas  |   | $                                                   | 121,332 |   | $ | 120,020 |   |
| LNG                    terminalling revenue                   |   |                                                | 19,555  |   |   | 13,208 |   |
| Other                    revenue                              |   |                                                | 3,756   |   |   | 2,172 |   |
|  Total                    operating revenue                   |   |                                                | 144,643 |   |   | 135,400 |   |
|                                                               |   |                                                |    |   |   |   |   |
| **Operating                    expenses**                          |   |                                                |    |   |   |   |   |
| Operation,                    maintenance and general         |   |                                                | 46,098  |   |   | 50,183 |   |
| Depreciation                    and amortization              |   |                                                | 17,474  |   |   | 15,367 |   |
| Taxes,                    other than on income                |   |                                                | 7,350   |   |   | 7,336 |   |
|  Total                    operating expenses                  |   |                                                | 70,922  |   |   | 72,886 |   |
|                                                               |   |                                                |    |   |   |   |   |
|                                                               |   |                                                |    |   |   |   |   |
| **Operating                    income**                            |   |                                                | 73,721  |   |   | 62,514 |   |
|                                                               |   |                                                |    |   |   |   |   |
| **Other                    income (expense)**                      |   |                                                |    |   |   |   |   |
| Interest                    expense, net                      |   |                                                | (12,875 | ) |   | (11,848 | ) |
| Other,                    net                                 |   |                                                | 3,241   |   |   | 897 |   |
|  Total                    other income (expense)              |   |                                                | (9,634  | ) |   | (10,951 | ) |
|                                                               |   |                                                |    |   |   |   |   |
| **Earnings                    before income taxes**                |   |                                                | 64,087  |   |   | 51,563 |   |
|                                                               |   |                                                |    |   |   |   |   |
| **Income                    taxes**                                |   |                                                | 25,022  |   |   | 20,093 |   |
|                                                               |   |                                                |    |   |   |   |   |
|                                                               |   |                                                |    |   |   |   |   |
| **Net                    earnings**                                |   | $                                                   | 39,065  |   | $ | 31,470 |   |
|                                                               |   |                                                |    |   |   |   |   |

*2*

----

**PANHANDLE        EASTERN PIPE LINE COMPANY, LP**

**CONDENSED        CONSOLIDATED BALANCE SHEET**

**(UNAUDITED)**

|                                                                                                                 |   | **March                    31, 2006**        |      | **December                    31, 2005** |   |
|----------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|-----------|------------------------------------------|--------|
| **Assets**                                                                                                           |   | (In                    thousands of dollars) |      |
|                                                                                                                 |   |                                         |      |                                     |   |
| **Property,                    plant and equipment**                                                                 |   |                                         |      |                                     |   |   |   |
| Plant                    in service                                                                             |   | $                                            | 2,219,069 |                                     | $      | 2,163,474 |   |
| Construction                    work-in-progress                                                                |   |                                         | 147,877   |                                     |   | 176,370 |   |
|                                                                                                                 |   |                                         | 2,366,946 |                                     |   | 2,339,844 |   |
| Less                    accumulated depreciation and amortization                                               |   |                                         | 162,267   |                                     |   | 145,550 |   |
|  Net                    property, plant and equipment                                                           |   |                                         | 2,204,679 |                                     |   | 2,194,294 |   |
|                                                                                                                 |   |                                         |      |                                     |   |   |   |
| **Investment                    in affiliate**                                                                       |   |                                         | 1,517     |                                     |   | 1,468 |   |
|                                                                                                                 |   |                                         |      |                                     |   |   |   |
| **Current                    assets**                                                                                |   |                                         |      |                                     |   |   |   |
| Cash                    and cash equivalents                                                                    |   |                                         | 136       |                                     |   | 585 |   |
| Accounts                    receivable, less allowances of $1,168 and $1,168, respectively                      |   |                                         | 58,239    |                                     |   | 55,786 |   |
| Accounts                    receivable - related parties                                                        |   |                                         | 11,750    |                                     |   | 9,556 |   |
| Gas                    imbalances - receivable                                                                  |   |                                         | 98,249    |                                     |   | 105,233 |   |
| System                    gas and operating supplies                                                            |   |                                         | 78,966    |                                     |   | 89,620 |   |
| Deferred                    income taxes, net                                                                   |   |                                         | 2,258     |                                     |   | 2,086 |   |
| Note                    receivable - Southern Union                                                             |   |                                         | 146,630   |                                     |   | 110,580 |   |
| Other                                                                                                           |   |                                         | 9,991     |                                     |   | 11,501 |   |
|  Total                    current assets                                                                        |   |                                         | 406,219   |                                     |   | 384,947 |   |
|                                                                                                                 |   |                                         |      |                                     |   |   |   |
| Intangibles,                    net                                                                             |   |                                         | 7,916     |                                     |   | 8,031 |   |
| Debt                    issuance cost                                                                           |   |                                         | 3,320     |                                     |   | 3,634 |   |
| Non-current                    system gas                                                                       |   |                                         | 20,761    |                                     |   | 25,087 |   |
| Other                                                                                                           |   |                                         | 2,559     |                                     |   | 1,853 |   |
|                                                                                                                 |   |                                         |      |                                     |   |   |   |
| **Total                    assets**                                                                             |   | $                                            | 2,646,971 |                                     | $      | 2,619,314 |   |
|                                                                                                                 |   |                                         |      |                                     |   |   |   |
|                                                                                                                 |   |                                         |      |                                     |   |   |   |

*3*

----

**PANHANDLE        EASTERN PIPE LINE COMPANY, LP**

**CONDENSED        CONSOLIDATED BALANCE SHEET**

**(UNAUDITED)**

|                                                                  |   | **March                    31, 2006**        |      | **December                    31, 2005** |   |
|-----------------------------------------------------------------------|--------|----------------------------------------------|-----------|------------------------------------------|--------|
|                                                                  |   | (In                    thousands of dollars) |      |
| **Partners'                    Capital**                              |   |                                         |      |                                     |   |
| Partners'                    capital                             |   | $                                            | 943,033   |                                     | $      | 903,968 |   |
| Accumulated                    other comprehensive income        |   |                                         | 1,061     |                                     |   | 1,339 |   |
| Tax                    sharing note receivable - Southern Union  |   |                                         | (43,699   | )                                        |   | (50,862 | ) |
|  Total                    partners' capital                      |   |                                         | 900,395   |                                     |   | 854,445 |   |
|                                                                  |   |                                         |      |                                     |   |   |   |
| Long-term                    debt                                |   |                                         | 729,057   |                                     |   | 1,179,534 |   |
|  Total                    capitalization                         |   |                                         | 1,629,452 |                                     |   | 2,033,979 |   |
|                                                                  |   |                                         |      |                                     |   |   |   |
| **Current                    liabilities**                            |   |                                         |      |                                     |   |   |   |
| Current                    portion of long-term debt             |   |                                         | 450,119   |                                     |   | - |   |
| Accounts                    payable                              |   |                                         | 2,856     |                                     |   | 3,054 |   |
| Accounts                    payable - overdrafts                 |   |                                         | 8,308     |                                     |   | 7,866 |   |
| Accounts                    payable - related parties            |   |                                         | 21,183    |                                     |   | 8,560 |   |
| Gas                    imbalances - payable                      |   |                                         | 105,705   |                                     |   | 124,297 |   |
| Accrued                    taxes                                 |   |                                         | 20,335    |                                     |   | 15,228 |   |
| Accrued                    interest                              |   |                                         | 7,640     |                                     |   | 19,569 |   |
| Fuel                    tracker obligation                       |   |                                         | 31,408    |                                     |   | 32,863 |   |
| Labor                    and benefit accruals                    |   |                                         | 8,809     |                                     |   | 16,643 |   |
| Other                    operating expense accruals              |   |                                         | 9,505     |                                     |   | 11,938 |   |
| Capital                    accruals                              |   |                                         | 9,872     |                                     |   | 11,681 |   |
| Post-retirement                    benefits-current              |   |                                         | 7,812     |                                     |   | 7,812 |   |
| Other                                                            |   |                                         | 28,142    |                                     |   | 22,365 |   |
|  Total                    current liabilities                    |   |                                         | 711,694   |                                     |   | 281,876 |   |
|                                                                  |   |                                         |      |                                     |   |   |   |
| Deferred                    income taxes, net                    |   |                                         | 218,726   |                                     |   | 205,787 |   |
| Post-retirement                    benefits                      |   |                                         | 24,029    |                                     |   | 26,103 |   |
| Other                                                            |   |                                         | 63,070    |                                     |   | 71,569 |   |
| Commitments                    and contingencies                 |   |                                         |      |                                     |   |   |   |
|                                                                  |   |                                         |      |                                     |   |   |   |
| **Total                    owners' equity and liabilities**      |   | $                                            | 2,646,971 |                                     | $      | 2,619,314 |   |
|                                                                  |   |                                         |      |                                     |   |   |   |

*4*

----

**PANHANDLEEASTERN        PIPE LINE COMPANY, LP**

**CONDENSED        CONSOLIDATED STATEMENT OF CASH FLOWS**

**(UNAUDITED)        **

|                                                                                                                      |   | **Three                    Months Ended March 31,** |    |
|---------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|---------|
|                                                                                                                      |   | **2006**                                            |    | **2005** |   |
|                                                                                                                      |   | (In                    thousands of dollars)        |    |
| Cash                    flows provided by (used in) operating activities:                                                 |   |                                                |    |   |   |   |   |
| Net                    earnings                                                                                           |   | $                                                   | 39,065  |   | $ | 31,470 |   |
| Adjustments                    to reconcile net earnings to net cash provided by operating                    activities: |   |                                                |    |   |   |   |   |
| Depreciation                    and amortization                                                                          |   |                                                | 17,474  |   |   | 15,367 |   |
| Deferred                    income taxes                                                                                  |   |                                                | 12,952  |   |   | 6,801 |   |
| Gain                    on sale of assets                                                                                 |   |                                                | (1,654  | ) |   | - |   |
| Debt                    premium and discount amortization, net                                                            |   |                                                | (323    | ) |   | (611 | ) |
| Changes                    in operating assets and liabilities:                                                           |   |                                                |    |   |   |   |   |
| Accounts                    receivable                                                                                    |   |                                                | (4,647  | ) |   | (2,061 | ) |
| Inventory                                                                                                                 |   |                                                | (1,106  | ) |   | (21,141 | ) |
| Gas                    imbalances - receivable                                                                            |   |                                                | -       |   |   | (870 | ) |
| Other                    assets                                                                                           |   |                                                | 475     |   |   | 1,872 |   |
| Payables                                                                                                                  |   |                                                | 12,425  |   |   | 1,129 |   |
| Accrued                    taxes                                                                                          |   |                                                | 12,455  |   |   | 15,219 |   |
| Interest                    accrued                                                                                       |   |                                                | (11,929 | ) |   | (9,734 | ) |
| Gas                    imbalances - payable                                                                               |   |                                                | 1,036   |   |   | 15,361 |   |
| Other                    liabilities                                                                                      |   |                                                | (12,816 | ) |   | (1,566 | ) |
| Net                    cash flows provided by operating activities                                                        |   |                                                | 63,407  |   |   | 51,236 |   |
|                                                                                                                      |   |                                                |    |   |   |   |   |
| Cash                    flows provided by (used in) investing activities:                                                 |   |                                                |    |   |   |   |   |
| Net                    increase in note receivable - Southern Union                                                       |   |                                                | (36,050 | ) |   | (3,000 | ) |
| Capital                    and investment expenditures                                                                    |   |                                                | (30,469 | ) |   | (37,074 | ) |
| Sale                    of assets                                                                                         |   |                                                | 2,450   |   |   | - |   |
| Other                                                                                                                     |   |                                                | (229    | ) |   | (161 | ) |
| Net                    cash flows used in investing activities                                                            |   |                                                | (64,298 | ) |   | (40,235 | ) |
|                                                                                                                      |   |                                                |    |   |   |   |   |
| Cash                    flows provided by (used in) financing activities:                                                 |   |                                                |    |   |   |   |   |
| Increase                    (decrease) in bank overdrafts                                                                 |   |                                                | 442     |   |   | (16,992 | ) |
| Debt                    retirements                                                                                       |   |                                                | -       |   |   | (2,807 | ) |
| Net                    cash flows provided by (used in) financing activities                                              |   |                                                | 442     |   |   | (19,799 | ) |
|                                                                                                                      |   |                                                |    |   |   |   |   |
| Net                    decrease in cash and cash equivalents                                                              |   |                                                | (449    | ) |   | (8,798 | ) |
|                                                                                                                      |   |                                                |    |   |   |   |   |
| Cash                    and cash equivalents at beginning of period                                                       |   |                                                | 585     |   |   | 26,054 |   |
| Cash                    and cash equivalents at end of period                                                             |   | $                                                   | 136     |   | $ | 17,256 |   |

*5*

----

**PANHANDLE        EASTERN PIPE LINE COMPANY, LP**

**CONDENSED        CONSOLIDATED STATEMENT OF PARTNERS’ CAPITAL AND COMPREHENSIVE        INCOME**

**(UNAUDITED)        **

|                                                                            |   | **Partners'                    Capital** |                                               | **Accumulated                    Other Comprehensive Income** |   |  **Tax                    Sharing Note Receivable-Southern Union** |   | **Total** |    |
|---------------------------------------------------------------------------------|--------|------------------------------------------|----------------------------------------------------|---------------------------------------------------------------|--------|-------------------------------------------------------------------------|--------|-----------|---------|
|                                                                                 |   |                                     | (In                    thousands of dollars)  |                                                          |
|                                                                            |   |                                     |                                               |                                                          |   |                                                                    |   |      |    |   |   |   |   |
| Balance                    January 1, 2006                                      |   | $                                        | 903,968                                            |                                                          | $      | 1,339                                                                   |   | $         | (50,862 | ) | $ | 854,445 |   |
|                                                                            |   |                                     |                                               |                                                          |   |                                                                    |   |      |    |   |   |   |   |
|                                                                            |   |                                     |                                               |                                                          |   |                                                                    |   |      |    |   |   |   |   |
| Comprehensive                    income:                                        |   |                                     |                                               |                                                          |   |                                                                    |   |      |    |   |   |   |   |
| Net                    earnings                                                 |   |                                     | 39,065                                             |                                                          |   | -                                                                       |   |      | -       |   |   | 39,065 |   |
| Net                    realized gain related to interest rate swaps, net of tax |   |                                     | -                                                  |                                                          |   | (278                                                                    | )      |      | -       |   |   | (278 | ) |
| Comprehensive                    income                                         |   |                                     |                                               |                                                          |   |                                                                    |   |      |    |   |   | 38,787 |   |
|                                                                            |   |                                     |                                               |                                                          |   |                                                                    |   |      |    |   |   |   |   |
| Settlement                    against tax sharing receivable - Southern Union   |   |                                     | -                                                  |                                                          |   | -                                                                       |   |      | 7,163   |   |   | 7,163 |   |
|                                                                            |   |                                     |                                               |                                                          |   |                                                                    |   |      |    |   |   |   |   |
| Balance                    March 31, 2006                                       |   | $                                        | 943,033                                            |                                                          | $      | 1,061                                                                   |   | $         | (43,699 | ) | $ | 900,395 |   |
|                                                                            |   |                                     |                                               |                                                          |   |                                                                    |   |      |    |   |   |   |   |

*6*

----

**PANHANDLE        EASTERN PIPE LINE COMPANY, LP**

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(UNAUDITED)**

**ITEM        1. Financial Statements**

*Panhandle        Eastern Pipe Line*
*the        Company*
** **
*SEC*
*GAAP*

**1.        Corporate Structure**

*Southern        Union Company*
*Southern        Union*
*LNG*
*FERC*

| ·   | Panhandle                Eastern Pipe Line; |
|--------------------|---------------------------------------------|
| ·   | Trunkline                Gas Company, LLC (*Trunkline*),                a direct wholly-owned subsidiary of Panhandle Eastern Pipe                Line; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Sea                Robin Pipeline Company, LLC (*Sea                Robin*),                an indirect wholly-owned subsidiary of Panhandle Eastern Pipe                Line; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Trunkline                LNG Holdings, LLC (LNG Holdings), an indirect wholly-owned subsidiary                of                Panhandle Eastern Pipe Line; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Trunkline                LNG Company, LLC (*Trunkline                LNG*),                a direct wholly-owned subsidiary of LNG Holdings;                and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | Pan                Gas Storage, LLC (d.b.a. *Southwest                Gas Storage*),                a wholly-owned subsidiary of Panhandle Eastern Pipe Line. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Bcf/d*
*Bcf*

**2.        System Gas and Operating Supplies**

*MMBtu*

*7*

----

**PANHANDLE        EASTERN PIPE LINE COMPANY, LP**

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(UNAUDITED)**

**3.        Regulatory Matters**

*Phase        I*
*Phase        II*
*Construction        work-in-progress*

**4.        Related Party Transactions**

*Panhandle        Acquisition*

|                                                               |   | **Three                  Months Ended March 31,** |   |
|--------------------------------------------------------------------|--------|---------------------------------------------------|--------|
| **Related                  Party Transactions**                    |   | **2006**                                          |   | **2005** |   |
|                                                               |   | (In                  thousands)                   |   |
|                                                               |   |                                              |   |   |   |   |   |
| Transportation                  and storage of natural gas revenue |   | $                                                 | 1,456  |   | $ | 895 |   |
| Operation                  and maintenance:                        |   |                                              |   |   |   |   |   |
| Management                  & royalty fees                     |   |                                              | 3,616  |   |   | 3,386 |   |
| Other                  expenses                                    |   |                                              | 3,141  |   |   | 3,704 |   |
| Other                  income, net                                 |   |                                              | 1,480  |   |   | 563 |   |

*8*

----

**PANHANDLE        EASTERN PIPE LINE COMPANY, LP**

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(UNAUDITED)**

*Other,        net*
*Note        receivable - Southern Union*

*CCE        Holdings*
*CrossCountry        Energy*
*Management        Agreement*
*Manager*
*Accounts        receivable - related parties*
*Accounts        receivable - related parties *
*Other        current liabilities*

**5.        Accounting for Derivatives and Hedging Activities**

*Credit        Agreement*
*Accumulated        other comprehensive income*

*9*

----

**PANHANDLE        EASTERN PIPE LINE COMPANY, LP**

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(UNAUDITED)**

*Note        6 - Debt*
*Accounting        for Derivative Instruments and Hedging Activities*

**6.        Debt**

| **Long-term                    Debt**                                                                                                         |   | **Year                    Due** |   | **March                    31, 2006**   |   | **December                    31, 2005** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|--------|-----------------------------------------|--------|------------------------------------------|--------|
|                                                                                                                                          |   |                            |   | (in                    thousands)  |   |
| 6.50%                    Senior Notes                                                                                                         |   |                            | 2009   |                                    | $      | 60,623                                   |   | $ | 60,623 |   |
| 8.25%                    Senior Notes                                                                                                         |   |                            | 2010   |                                    |   | 40,500                                   |   |   | 40,500 |   |
| 7.00%                    Senior Notes                                                                                                         |   |                            | 2029   |                                    |   | 66,305                                   |   |   | 66,305 |   |
| 4.80%                    Senior Notes                                                                                                         |   |                            | 2008   |                                    |   | 300,000                                  |   |   | 300,000 |   |
| 6.05%                    Senior Notes                                                                                                         |   |                            | 2013   |                                    |   | 250,000                                  |   |   | 250,000 |   |
| 2.75%                    Senior Notes                                                                                                         |   |                            | 2007   |                                    |   | 200,000                                  |   |   | 200,000 |   |
| Bank                    loans (floating rate)                                                                                                 |   |                            | 2007   |                                    |   | 255,626                                  |   |   | 255,626 |   |
| Total                    debt outstanding                                                                                                     |   |                            |   |                                    |   | 1,173,054                                |   |   | 1,173,054 |   |
| Interest                    rate swaps (2.75% Senior Notes)                                                                                   |   |                            |   |                                    |   | (5,445                                   | )      |   | (5,725 | ) |
| Unamortized                    debt premium, net                                                                                              |   |                            |   |                                    |   | 11,567                                   |   |   | 12,205 |   |
| Less:                    Current portion of long-term debt (1)                                                                                |   |                            |   |                                    |   | (450,119                                 | )      |   | - |   |
| Total                    long-term debt                                                                                                       |   |                            |   |                                    | $      | 729,057                                  |   | $ | 1,179,534 |   |
|                                                                                                                                          |   |                            |   |                                    |   |                                     |   |   |   |   |
| (1)                    Includes $5.4 million of fair value swaps related to debt classified                    as                    current. |   |                            |   |                                    |   |                                     |   |   |   |   |

*10*

----

**PANHANDLE        EASTERN PIPE LINE COMPANY, LP**

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(UNAUDITED)**

**7.        Comprehensive Income**

|                                                                                                                                              |   | **Three                    Months Ended March 31,** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|--------|
|                                                                                                                                              |   | **2006**                                            |   | **2005** |   |
|                                                                                                                                              |   | (in                    thousands)                   |   |
|                                                                                                                                              |   |                                                |   |   |   |
| Net                    earnings                                                                                                                   |   | $                                                   | 39,065 |   | $ | 31,470 |   |
|                                                                                                                                                   |   |                                                |   |   |   |   |   |
| Unrealized                      gain (loss) related to interest rate swaps, net of taxes of                      $0 and $1,412, respectively |   |                                                | (2     | ) |   | 2,160 |   |
|                                                                                                                                              |   |                                                |   |   |   |   |   |
| Realized                      gains in net earnings, net of tax benefit of $(185) and $(786),                      respectively                   |   |                                                | (276   | ) |   | (1,230 | ) |
|                                                                                                                                              |   |                                                |   |   |   |   |   |
| Total                    comprehensive income                                                                                                     |   | $                                                   | 38,787 |   | $ | 32,400 |   |
|                                                                                                                                              |   |                                                |   |   |   |   |   |

*Accumulated        other comprehensive income*

**8.        Benefits**

**Components        of Net Periodic Benefit Cost**

*OPEB*

|                                                  |   | **Three                    Months Ended March 31,** |   |
|-------------------------------------------------------|--------|-----------------------------------------------------|--------|
| **OPEB**                                              |   | **2006**                                            |   | **2005** |   |
|                                                  |   | (in                    thousands)                   |   |
|                                                  |   |                                                |   |   |   |   |   |
| Service                    cost                       |   | $                                                   | 440    |   | $ | 740 |   |
| Interest                    cost                      |   |                                                | 544    |   |   | 900 |   |
| Expected                    return on plan assets     |   |                                                | (344   | ) |   | (230 | ) |
| Amortization                    of prior service cost |   |                                                | (911   | ) |   | (55 | ) |
| Recognized                    actuarial gain          |   |                                                | 127    |   |   | 160 |   |
|                                                  |   |                                                |   |   |   |   |   |
| Net                    periodic benefit cost          |   | $                                                   | (144   | ) | $ | 1,515 |   |
|                                                  |   |                                                |   |   |   |   |   |

*11*

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**PANHANDLE        EASTERN PIPE LINE COMPANY, LP**

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(UNAUDITED)**

**9.        Stock Based Compensation **

**Stock        Award Plans.**
*Amended        2003 Plan*

**Stock        Options. **
*Share-Based        Payment*
*Statement        No. 123R*
*Accounting        for Stock Issued to Employees*
*Partners’        capital*

*Accounting        for Stock-Based Compensation*

*Operating        income*
*Earnings        before income taxes*
*Net        earnings*

*12*

----

**PANHANDLE        EASTERN PIPE LINE COMPANY, LP**

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(UNAUDITED)**

|                                                                |   |   |   |                                            |   |
|---------------------------------------------------------------------|--------|--------|--------|-------------------------------------------------|--------|
|                                                                |   |   |   | **Three                    Months Ended**  |   |
|                                                                |   |   |   | **March                    31, 2005**           |   |
|                                                                |   |   |   |  (In                    thousands)         |   |
|                                                                |   |   |   |                                            |   |
| Net                    earnings, as reported                        |   |   |   |                                            | $      | 31,470 |   |
| Deduct                    total stock-based employee compensation   |   |   |   |                                            |   |   |   |
| expense                    determined under fair value based method |   |   |   |                                            |   |   |   |
| for                    all awards, net of related taxes             |   |   |   |                                            |   | 51 |   |
| Pro                    forma net earnings                           |   |   |   |                                            | $      | 31,419 |   |
|                                                                |   |   |   |                                            |   |   |   |

|                                         |   | **Period                  ended**   |                               |
|----------------------------------------------|--------|-------------------------------------|------------------------------------|
|                                         |   | **March                  31, 2006** |                               |
| Expected                  volatility         |   |                                | 27.5%                  to 37.36%   |   |
| Weighted                  average volatility |   |                                | 35.85%                             |   |
| Expected                  dividend yield     |   |                                | 1.67%                              |   |
| Risk-free                  interest rate     |   |                                | 4.06%                  to 5.00%    |   |
| Expected                  life in years      |   |                                | 5.5                  to 6.25 years |   |
|                                         |   |                                |                               |   |

*13*

----

**PANHANDLE        EASTERN PIPE LINE COMPANY, LP**

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(UNAUDITED)**

|                                                      |   |       |    | **Weighted-** |   | **Weighted-**   |   |          |   |
|-----------------------------------------------------------|--------|------------|---------|---------------|--------|-----------------|--------|---------------|--------|
|                                                      |   |       |    | **Average**   |   | **Average**     |   | **Aggregate** |   |
|                                                      |   |       |    | **Exercise**  |   | **Contractual** |   | **Intrinsic** |   |
| **Stock                    Options**                      |   | **Shares** |    | **Price**     |   | **Life**        |   | **Value**     |   |
|                                                      |   |       |    |          |   |            |   |          |   |
| Outstanding                    options at January 1, 2006 |   |       | 353,861 |          | $      | 19.88           |   |          |   |   |   |   |   |
| Granted                                                   |   |       | -       |          |   |            |   |          |   |   |   |   |   |
| Exercised                                                 |   |       | (6,627  | )             | $      | 16.83           |   |          |   |   |   |   |   |
| Forfeited                                                 |   |       | (3,862  | )             | $      | 16.83           |   |          |   |   |   |   |   |
| Outstanding                    options at March 31, 2006  |   |       | 343,372 |          | $      | 19.97           |   |          | 8.75   |   | $ | 1,564,912 |   |
| Exercisable                    options at March 31, 2006  |   |       | 58,849  |          | $      | 16.83           |   |          | 7.86   |   | $ | 453,402 |   |
|                                                      |   |       |    |          |   |            |   |          |   |   |   |   |   |

**Restricted        Stock.  **

|                                                              |   | **Number                    of**         |   | **Weighted-Average** |    |        |   |
|-------------------------------------------------------------------|--------|------------------------------------------|--------|----------------------|---------|-------------|--------|
|                                                              |   | **Restricted                    Shares** |   | **Grant-Date**       |    |        |   |
| **Nonvested                    Restricted Shares**                |   | **Outstanding**                          |   | **Fair-Value**       |    |        |   |
|                                                              |   |                                     |   |                 |    |        |   |
| Nonvested                    restricted shares at January 1, 2006 |   |                                     | 43,050 |                 |  $ | 24.06  |   |   |   |
| Granted                                                           |   |                                     | -      |                 |    |        |   |   |   |
| Vested                                                            |   |                                     | -      |                 |    |        |   |   |   |
| Forfeited                                                         |   |                                     | -      |                 |    |        |   |   |   |
| Nonvested                    restricted shares at March 31, 2006  |   |                                     | 43,050 |                 |  $ | 24.06  |   |   |   |
|                                                              |   |                                     |   |                 |    |        |   |   |   |

*14*

----

**PANHANDLE        EASTERN PIPE LINE COMPANY, LP**

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(UNAUDITED)**

**10.        Commitments and Contingencies**

**Litigation.        **
*Accounting        for Contingencies*

*Hope        Land*

**Environmental        Matters**

*15*

----

**PANHANDLE        EASTERN PIPE LINE COMPANY, LP**

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(UNAUDITED)**

*Environmental        Remediation Liabilities,*

***Environmental        Remediation.***
*PCBs*

*Pierce        Waste Oil sites*
*U.S.        EPA*
*PRP*

*Illinois        EPA*

*16*

----

**PANHANDLE        EASTERN PIPE LINE COMPANY, LP**

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(UNAUDITED)**

|                                               |   | **March                    31,** |                                    | **December                    31,** |   |
|----------------------------------------------------|--------|----------------------------------|-----------------------------------------|-------------------------------------|--------|
|                                               |   | **2006**                         |                                    | **2005**                            |   |
|                                               |   |                             | (In                    thousands)  |                                |
|                                               |   |                             |                                    |                                |   |   |   |
| Current                                            |   | $                                | 2,138                                   |                                | $      | 2,337 |   |
| Noncurrent                                         |   |                             | 8,325                                   |                                |   | 8,385 |   |
| Total                    Environmental Liabilities |   | $                                | 10,463                                  |                                | $      | 10,722 |   |
|                                               |   |                             |                                    |                                |   |   |   |

***Air        Quality Control.***
*NOx*

*17*

----

**PANHANDLE        EASTERN PIPE LINE COMPANY, LP**

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(UNAUDITED)**

*HAPs*

***Spill        Control.***
*SPCC*

**Other        Commitments and Contingencies**
***.***

*MMS*

*18*

----

**PANHANDLE        EASTERN PIPE LINE COMPANY, LP**

**NOTES        TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(UNAUDITED)**

**Controlled        Group Pension Liabilities.**

*19*

----

**ITEM        2. Management's Discussion and Analysis of Results of        Operations and Financial Condition**

**Overview**

*TBtu*

*20*

----

**Results        of Operations**

|                                                         |   |                                                |    |     |   |       |   |
|--------------------------------------------------------------|--------|-----------------------------------------------------|---------|----------|--------|------------|--------|
|                                                         |   | **Three                    Months Ended March 31,** |    |     |   |
|                                                         |   | **2006**                                            |    | **2005** |   | **Change** |   |
|                                                         |   | (in                    thousands)                   |    |
|                                                         |   |                                                |    |     |   |       |   |
| Operating                    revenue:                        |   |                                                |    |     |   |       |   |   |   |   |
| Transportation                    and storage of natural gas |   | $                                                   | 121,332 |     | $      | 120,020    |   | $ | 1,312 |   |
| LNG                    terminalling revenue                  |   |                                                | 19,555  |     |   | 13,208     |   |   | 6,347 |   |
| Other                    revenue                             |   |                                                | 3,756   |     |   | 2,172      |   |   | 1,584 |   |
| Total                    operating revenue                   |   |                                                | 144,643 |     |   | 135,400    |   |   | 9,243 |   |
|                                                         |   |                                                |    |     |   |       |   |   |   |   |
| Operating                    expenses:                       |   |                                                |    |     |   |       |   |   |   |   |
| Operation,                    maintenance and general        |   |                                                | 46,098  |     |   | 50,183     |   |   | (4,085 | ) |
| Depreciation                    and amortization             |   |                                                | 17,474  |     |   | 15,367     |   |   | 2,107 |   |
| Taxes,                    other than on income and revenues  |   |                                                | 7,350   |     |   | 7,336      |   |   | 14 |   |
| Total                    operating expenses                  |   |                                                | 70,922  |     |   | 72,886     |   |   | (1,964 | ) |
| Operating                    income                          |   |                                                | 73,721  |     |   | 62,514     |   |   | 11,207 |   |
|                                                         |   |                                                |    |     |   |       |   |   |   |   |
| Other                    income (expense):                   |   |                                                |    |     |   |       |   |   |   |   |
| Interest                    expense, net                     |   |                                                | (12,875 | )        |   | (11,848    | )      |   | (1,027 | ) |
| Other,                    net                                |   |                                                | 3,241   |     |   | 897        |   |   | 2,344 |   |
| Total                    other expense, net                  |   |                                                | (9,634  | )        |   | (10,951    | )      |   | 1,317 |   |
|                                                         |   |                                                |    |     |   |       |   |   |   |   |
| Earnings                    before income taxes              |   |                                                | 64,087  |     |   | 51,563     |   |   | 12,524 |   |
|                                                         |   |                                                |    |     |   |       |   |   |   |   |
| Income                    taxes                              |   |                                                | 25,022  |     |   | 20,093     |   |   | 4,929 |   |
|                                                         |   |                                                |    |     |   |       |   |   |   |   |
|                                                         |   |                                                |    |     |   |       |   |   |   |   |
| Net                    earnings                              |   | $                                                   | 39,065  |     | $      | 31,470     |   | $ | 7,595 |   |
|                                                         |   |                                                |    |     |   |       |   |   |   |   |

***Operating        Revenue.***

***Operating        Expenses.***

***Other        Expense, Net.***
** **
*Note        4 - Related Party Transactions*
*** ***

*21*

----

***Income        Taxes.***

**OTHER        MATTERS**

***Contingencies***

*PART        I, ITEM 1. Financial Statements (Unaudited), Note 10 - Commitments and        Contingencies*

***Regulatory***

*PART        I, ITEM 1. Financial Statements (Unaudited), Note 3 - Regulatory        Matters*

***Insurance        Coverage Changes***

**ITEM        3. Quantitative and Qualitative Disclosures About Market        Risk**

**ITEM        4. Controls and Procedures**

***Evaluation        of Disclosure Controls and Procedures***

***Changes        in Internal Controls***

**Cautionary        Statement Regarding Forward-Looking Information**

*22*

----

| ·   | changes                in demand for natural gas by the Company’s customers, in the composition                of the Company’s customer base and in the sources of natural gas available                to the Company; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | the                effects of inflation and the timing and extent of changes in the                prices                and overall demand for and availability of natural gas as well as                electricity, oil, coal and other bulk materials and                chemicals; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | adverse                weather conditions, such as warmer than normal weather in the Company’s                service territories, and the operational impact of disasters such                as                Hurricanes Katrina and Rita; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | changes                in laws or regulations, third-party relations and approvals, decisions                of                courts, regulators and governmental bodies affecting or involving                the                Company, including deregulation initiatives and the impact of rate                and                tariff proceedings before FERC and various state regulatory                commissions; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | the                speed and degree to which additional competition is introduced to                the                Company’s business and the resulting effect on                revenues; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | the                outcome of pending and future litigation; |
|--------------------|--------------------------------------------------------------|
| ·   | the                Company’s ability to comply with or to challenge successfully existing or                new environmental regulations; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | unanticipated                environmental liabilities; |
|--------------------|---------------------------------------------------------|
| ·   | the                Company’s ability to acquire new businesses and assets and integrate those                operations into its existing operations, as well as its ability to                expand                its existing businesses and facilities; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | the                Company’s ability to control costs successfully and achieve operating                efficiencies, including the purchase and implementation of new                technologies for achieving such                efficiencies; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | the                impact of factors affecting operations such as maintenance or repairs,                environmental incidents, gas pipeline system constraints and relations                with labor unions representing bargaining-unit                employees; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | exposure                to customer concentration with a significant portion of revenues                realized                from a relatively small number of customers and any credit risks                associated with the financial position of those                customers; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | changes                in the ratings of the Company’s debt securities or any of its                subsidiaries; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------|
| ·   | changes                in interest rates and other general capital markets conditions, and                in the                Company’s ability to continue to access the capital                markets; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | acts                of nature, sabotage, terrorism or other acts causing damage greater                than                the Company’s insurance coverage limits; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | market                risks beyond the Company’s control affecting its risk management                activities including market liquidity, commodity price volatility                and                counterparty creditworthiness; and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   | other                risks and unforeseen events. |
|--------------------|---------------------------------------------------|

*23*

----

**PART        II. OTHER INFORMATION**

**ITEM        1. Legal Proceedings**

*ITEM        1. Financial Statements (Unaudited), Note 10 - Commitments and        Contingencies*
*ITEM        2. Management’s Discussion and Analysis of Financial Condition and Results of        Operations*
*Part        I. Financial Information*

**ITEM        1A. Risk Factors.**

**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        No.**
**                                        **
**Description**

| 3(a)   | Certificate                  of Formation of Panhandle Eastern Pipe Line  Company,                  LP. (Filed as Exhibit 3.A to the Form 10-K for the year ended December                  31,                  2004 and incorporated herein by reference.)                                                                                                                                               |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                            |
| 3(b)   | Limited                  Partnership Agreement of Panhandle Eastern Pipe Line Company, LP,                  dated as                  of June 29, 2004, between Southern Union Company and Southern Union                  Panhandle LLC. (Filed as Exhibit 3.B to the Form 10-K for the year                  ended                  December 31, 2004 and incorporated herein by                  reference.) |
|   |                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4(a)   | Indenture                  dated as of March 29, 1999, among CMS Panhandle Holding                  Company,Panhandle                  Eastern Pipe Line Company and NBD Bank, as Trustee. (Filed as Exhibit                  4(a)                  to the Form 10-Q for the quarter ended March 31, 1999, and incorporated                  herein by                  reference.)                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                            |

*24*

----

| 4(b)   | 1st                  Supplemental Indenture dated as of March 29, 1999, among CMS Panhandle                  Holding Company, Panhandle Eastern Pipe Line Company and NBD Bank,                  as                  Trustee, including a form of Guarantee by Panhandle Eastern Pipe                  Line                  Company of the obligations of CMS Panhandle Holding Company. (Filed                  as                  Exhibit 4(b) to the Form 10-Q for the quarter ended March 31, 1999,                  and                  incorporated herein by reference.) |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4(c)   | 2nd                  Supplemental Indenture dated as of March 27, 2000, between                  Panhandle, as Issuer and Bank One Trust Company, National Association,                  as                  Trustee. (Filed as Exhibit 4(e) to the Form S-4 filed on June 22,                  2000,                  and incorporated herein by reference.)                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4(d)   | 3rd                  Supplemental Indenture dated as of August 18, 2003, between Panhandle,                  as                  Issuer and Bank One Trust Company, National Association, as Trustee                  (Filed                  as Exhibit 4(d) to the Form 10-Q for the quarter ended September                  30, 2003,                  and incorporated herein by reference.)                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4(e)   | 4th                  Supplemental Indenture dated as of March 12, 2004, between Panhandle,                  as                  Issuerand                  J.P. Morgan Trust Company, National Association, as Trustee. (Filed                  as                  Exhibit 4.E                  to the Form 10-K for the year ended December 31, 2004 and incorporated                  hereinby                  reference.)                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4(f)   | Indenture                  dated as of February 1, 1993, between Panhandle and Morgan Guaranty                  Trust                  Company effective January 1, 1982, as amended December 3, 1999.                  (Filed as                  Exhibit 4 to the Form S-3 filed February 19, 1993, and incorporated                  herein                  by reference.)                                                                                                                                                                                                     |

| 31.1   | Certificate                  by President and Chief Operating Officer pursuant to Rule 13a -                  14(a) or                  15d - 14(a) promulgated under the Securities Exchange Act of 1934,                  as                  adopted pursuant to Section 302 of the Sarbanes-Oxley Act of                  2002.                                  |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                 |
| 31.2   | Certificate                  by Senior Vice President and Chief Financial Officer pursuant to                  Rule 13a                  - 14(a) or 15d - 14(a) promulgated under the Securities Exchange                  Act of                  1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley                  Act of                  2002.     |
|   |                                                                                                                                                                                                                                                                                                                                                                 |
| 32.1   | Certificate                  by President and Chief Operating Officer pursuant to Rule 13a -                  14(b) or                  15d - 14(b) promulgated under the Securities Exchange Act of 1934                  and                  Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section                  1350.                              |
|   |                                                                                                                                                                                                                                                                                                                                                                 |
| 32.2   | Certificate                  by Senior Vice President and Chief Financial Officer pursuant to                  Rule 13a                  - 14(b) or 15d - 14(b) promulgated under the Securities Exchange                  Act of                  1934 and Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C.                  Section                  1350. |

*25*

----

**SIGNATURES**

|                                |                                                                                                                                                                                                                |
|-------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                | PANHANDLE                  EASTERN PIPE LINE COMPANY, LP                                                                                                                                                            |
|                                |                                                                                                                                                                                                                |
|                                |                                                                                                                                                                                                                |
| Date:                  May 10, 2006 | By:                  /s/                   ROBERT                  O. BOND                                                                                                                                     |
|                                | Robert                  O. Bond                                                                                                                                                                                     |
|                                | President                  and Chief Operating Officer  /s/ GARY                  W. LEFELARGary                  W. LefelarSenior                  Vice President and Chief Accounting Officer |
|                                |                                                                                                                                                                                                                |
|                                |                                                                                                                                                                                                                |
|                                |                                                                                                                                                                                                                |

*26*

----