SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report: January 21, 1994
Date of Earliest Event Reported: January 19, 1994
PANHANDLE EASTERN CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 1-8157 74-2150460
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation)
5400 Westheimer Court
P. O. Box 1642
Houston, Texas 77251-1642
(Address, including zip code, of principal executive offices)
Registrant's telephone number, including area code:
(713) 627-5400
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Item 5. Other Events.
On January 19, 1994, Texas Eastern Transmission
Corporation ("TETCO"), a subsidiary of Panhandle Eastern
Corporation ("PEC"), announced that it had sent its customers a
proposed settlement resolving all regulatory issues regarding
implementation of Order 636 and the bundled merchant service prior
to Order 636.
As a result of the settlement, TETCO will add a
nonrecurring provision of $100 million (pre-tax) to existing
reserves, which will be charged against 1993 earnings of PEC.
See the press release filed as Exhibit 99.1 hereto, which
is incorporated herein by reference.
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits.
(c) Exhibits.
99.1 Press Release dated January 19, 1994.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
PANHANDLE EASTERN CORPORATION
By:
Carl B. King
Senior Vice President and
General Counsel
Date: January 21, 1994
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<EX-99.1>
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PANHANDLE EASTERN CORPORATION
NEWS
Release: January 19, 1994
Contact: Media Relations--James W. Hart, Jr., (713) 627-4900
or John P. Barnett, (713) 627-4072
Investor Relations--Brad Porlier, (713) 627-4600 or
(800) 347-3636
TEXAS EASTERN TRANSMISSION CORPORATION
PROPOSES CUSTOMER SETTLEMENT
HOUSTON, January 19 - Texas Eastern Transmission Corporation,
(TETCO), a subsidiary of Panhandle Eastern Corporation, today
announced that it has sent its customers a proposed settlement
resolving all the regulatory issues regarding the implementation of
Order 636 and the bundled merchant service prior to Order 636 and
that it plans to file the comprehensive settlement with FERC by the
end of January 1994.
As a result of the settlement, TETCO will add a nonrecurring
provision of $100 million pretax to existing reserves which will be
charged against 1993 earnings of Panhandle Eastern Corporation,
TETCO's parent. Further, Panhandle stated the impact of the
provision will be offset, in part, by a $48 million pretax gain
from the sale of a portion of its Northern Border interest. The
company said its results, excluding these nonrecurring items, are
expected to be within the range of the financial community's
expectations, including an improvement in fourth quarter over the
prior year.
The proposed settlement resolves a broad range of issues
primarily related to transition costs and covers all aspects and
issues including the purchase gas adjustments (PGA), contract
assignment program (CAP), gas supply inventory reservation costs
(GSIRC), stranded costs (858), and eligibility and prudence among
other matters. The participants in the proposed settlement will be
TETCO's customers, which include local distribution companies and
pipelines, as well as various producers, marketers, and other
parties. The settlement, when approved, will conclude more than 30
months of extensive negotiations and FERC proceedings dating back
to 1985.
"We believe this proposed settlement is responsive to the
commission's actions which encourage settlement in these
proceedings," said George L. Mazanec, president and chief executive
officer of TETCO. "This proposed settlement represents a fair and
reasonable allocation among TETCO and its customers for costs
associated with the transition by the pipeline from a merchant to
a transporter. A settlement will allow us to concentrate on the
future instead of dealing with the past. The settlement avoids
very expensive FERC proceedings and litigation for all parties. It
will also give our customers, as well as other parties, rate
certainty relating to Order 636."
Panhandle Eastern Corporation, America's natural gas
transportation company, operates one of the nation's largest
interstate natural gas pipeline systems, providing natural gas
transportation and related services to the Midwest and Northeast
markets.
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