Hello All-

Attached above are the cover letter and proposed tariff sheets filed by Texas Eastern yesterday for a June 1 effective date.  The rate changes reflect under recoveries in their ASA account which tracks their cash-out mechanism and increased cost of system fuel.  The underrecovery in the ASA account has increased from $22,000 to over $22,000,000 over the period September 1--March 31.  Texas Eastern claims that this is largely a result of the gaming of their currently monthly cash-out (which will likely be changed to weekly in their 637 proceeding).  As a result, Texas Eastern is seeking a waiver of the annual filing period in order to begin collecting the underrecovery through a surcharge that would amount to as much as $.0354 from ELA-M3.  Texas Eastern proposes to begin recovery in June so as to extend the recovery period from 12 months (Dec-Nov) to 18 months (Jun-Nov), which will lower the level of the surcharge.

We'll review the filing to see if there are any grounds for protest / comment.  These types of dollars are usually "rubber-stamped" by FERC for pass-through but the filing to change the recovery time period may give us some grounds to protest the recovery.

 The full filing can be found at :  http://infopost.link.duke-energy.com/infopost/default.asp?pipe=TE 

Please let me know if you have any questions or need any additional information.

Thanks,
Suzanne