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| PANHANDLE EASTERN PIPE LINE COMPANY, LP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |               |   |   |                    |   |    |   |   |   |    |   |   |   |    |   |
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| RATIO OF EARNINGS TO FIXED CHARGES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |
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| The following table sets forth the consolidated ratio of earnings to fixed charges on an historical basis for the three months ended March 31, 2010 and the years ended December 31, 2009, 2008, 2007, 2006 and 2005. For the purpose of calculating such ratios, “earnings” consist of pre-tax income from continuing operations before income or loss from equity investees, adjusted to reflect distributed income from equity investments, and fixed charges, less capitalized interest. “Fixed charges” consist of interest costs, amortization of debt discount, premiums and issuance costs and an estimate of interest implicit in rentals. No adjustment has been made to earnings for the amortization of capital interest for the periods presented as such amount is immaterial. Interest on FIN 48 liabilities is excluded from the computation of fixed charges as it is recorded by the Company in income tax expense versus interest expense. |   |
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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Three Months Ended |   |   | Year Ended December 31, |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | March 31, 2010     |   |   | 2009                    |   |    | 2008   |   |   | 2007    |   |   | 2006   |    |   | 2005 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | (In thousands)     |   |
| FIXED CHARGES:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |               |   |   |                    |   |    |   |   |   |    |   |   |   |    |   |   |   |
| Interest Expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $                  | 22,026 |   |                    | $      | 82,881  |   |   | $      | 90,514  |   |   | $      | 83,748  |   |   | $ | 63,322 |   |   | $ | 49,578 |   |
| Net amortization of debt discount, premium and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |               |   |   |                    |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
|   issuance expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |               | 363    |   |                    |   | 1,615   |   |   |   | (1,457  | )      |   |   | (1,197  | )      |   |   | (1,333 | ) |   |   | (1,293 | ) |
| Capitalized Interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |               | 5,637  |   |                    |   | 25,701  |   |   |   | 18,910  |   |   |   | 14,203  |   |   |   | 4,645 |   |   |   | 8,838 |   |
| Interest portion of rental expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |               | 1,010  |   |                    |   | 4,122   |   |   |   | 3,050   |   |   |   | 3,582   |   |   |   | 3,780 |   |   |   | 4,284 |   |
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|         Total Fixed Charges                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $                  | 29,036 |   |                    | $      | 114,319 |   |   | $      | 111,017 |   |   | $      | 100,336 |   |   | $ | 70,414 |   |   | $ | 61,407 |   |
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| EARNINGS:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |               |   |   |                    |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Consolidated pre-tax income (loss) from continuing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |               |   |   |                    |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
|    operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $                  | 60,178 |   |                    | $      | 242,315 |   |   | $      | 247,206 |   |   | $      | 246,742 |   |   | $ | 225,794 |   |   | $ | 166,189 |   |
| Earnings of equity investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |               | (59    | )      |                    |   | (224    | )      |   |   | (304    | )      |   |   | (299    | )      |   |   | (172 | ) |   |   | (226 | ) |
| Distributed income from equity investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |               | -      |   |                    |   | -       |   |   |   | -       |   |   |   | -       |   |   |   | 174 |   |   |   | 203 |   |
| Capitalized interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |               | (5,637 | )      |                    |   | (25,701 | )      |   |   | (18,910 | )      |   |   | (14,203 | )      |   |   | (4,645 | ) |   |   | (8,838 | ) |
| Minority interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |               | -      |   |                    |   | -       |   |   |   | -       |   |   |   | -       |   |   |   | - |   |   |   | - |   |
| Total fixed charges (from above)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |               | 29,036 |   |                    |   | 114,319 |   |   |   | 111,017 |   |   |   | 100,336 |   |   |   | 70,414 |   |   |   | 61,407 |   |
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|         Earnings Available for Fixed Charges                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $                  | 83,518 |   |                    | $      | 330,709 |   |   | $      | 339,009 |   |   | $      | 332,576 |   |   | $ | 291,565 |   |   | $ | 218,735 |   |
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| Ratio of Earnings to Fixed Charges                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |               | 2.9    |   |                    |   | 2.9     |   |   |   | 3.1     |   |   |   | 3.3     |   |   |   | 4.1 |   |   |   | 3.6 |   |
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