| PANHANDLE EASTERN PIPE LINE COMPANY, LP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |           |    |   |                    |   |    |   |   |   |    |   |   |   |    |   |
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| RATIO OF EARNINGS TO FIXED CHARGES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
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| The following table sets forth the consolidated ratio of earnings to fixed charges on an historical basis for the nine months ended September 30, 2009 and the years ended December 31, 2008, 2007, 2006, 2005 and 2004. For the purpose of calculating such ratios, “earnings” consist of pre-tax income from continuing operationsbefore income or loss from equity investees, adjusted to reflect distributed income from equity investments, and fixed charges, less capitalized interest. “Fixed charges” consist of interest costs, amortization of debt discount, premiums and issuance costs and an estimate of interest implicit in rentals. No adjustment has been made to earnings for the amortization of capital interest for the periods presented as such amount is immaterial. Interest on FIN 48 liabilities is excluded fromthe computation of fixed charges as it is recorded by the Company in income tax expense versus interest expense. |   |
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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 9 Months Ended |    |   |                    |   |    |   |   |   |    |   |   |   |    |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | September 30,  |    |   | Year Ended December 31, |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 2009           |    |   | 2008                    |   |    | 2007   |   |   | 2006    |   |   | 2005   |    |   | 2004 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | (In thousands) |    |
| FIXED CHARGES:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |           |    |   |                    |   |    |   |   |   |    |   |   |   |    |   |   |   |
| Interest Expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $              | 61,944  |   |                    | $      | 90,514  |   |   | $      | 83,748  |   |   | $      | 63,322  |   |   | $ | 49,578 |   |   | $ | 52,435 |   |
| Net amortization of debt discount, premium and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |           |    |   |                    |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
|   issuance expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |           | 1,255   |   |                    |   | (1,457  | )      |   |   | (1,197  | )      |   |   | (1,333  | )      |   |   | (1,293 | ) |   |   | (4,006 | ) |
| Capitalized Interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |           | 18,696  |   |                    |   | 18,910  |   |   |   | 14,203  |   |   |   | 4,645   |   |   |   | 8,838 |   |   |   | 4,812 |   |
| Interest portion of rental expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |           | 3,066   |   |                    |   | 3,050   |   |   |   | 3,582   |   |   |   | 3,780   |   |   |   | 4,284 |   |   |   | 4,453 |   |
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|          Total Fixed Charges                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $              | 84,961  |   |                    | $      | 111,017 |   |   | $      | 100,336 |   |   | $      | 70,414  |   |   | $ | 61,407 |   |   | $ | 57,694 |   |
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| EARNINGS:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |           |    |   |                    |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Consolidated pre-tax income (loss) from continuing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |           |    |   |                    |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
|    operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $              | 162,157 |   |                    | $      | 247,206 |   |   | $      | 246,742 |   |   | $      | 225,794 |   |   | $ | 166,189 |   |   | $ | 143,989 |   |
| Earnings of equity investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |           | (169    | )      |                    |   | (304    | )      |   |   | (299    | )      |   |   | (172    | )      |   |   | (226 | ) |   |   | (216 | ) |
| Distributed income from equity investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |           | -       |   |                    |   | -       |   |   |   | -       |   |   |   | 174     |   |   |   | 203 |   |   |   | 174 |   |
| Capitalized interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |           | (18,696 | )      |                    |   | (18,910 | )      |   |   | (14,203 | )      |   |   | (4,645  | )      |   |   | (8,838 | ) |   |   | (4,812 | ) |
| Minority interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |           | -       |   |                    |   | -       |   |   |   | -       |   |   |   | -       |   |   |   | - |   |   |   | - |   |
| Total fixed charges (from above)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |           | 84,961  |   |                    |   | 111,017 |   |   |   | 100,336 |   |   |   | 70,414  |   |   |   | 61,407 |   |   |   | 57,694 |   |
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| Earnings Available for Fixed Charges                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $              | 228,253 |   |                    | $      | 339,009 |   |   | $      | 332,576 |   |   | $      | 291,565 |   |   | $ | 218,735 |   |   | $ | 196,829 |   |
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| Ratio of Earnings to Fixed Charges                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |           | 2.7     |   |                    |   | 3.1     |   |   |   | 3.3     |   |   |   | 4.1     |   |   |   | 3.6 |   |   |   | 3.4 |   |

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