October 21, Texas Eastern Transmission, LP Compliance Filing - Docket Nos. RP88-67, et al. (Phase II/PCBs) Docket No. RP16-

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1 5400 Westheimer Court Houston, TX main Mailing Address: P.O. Box 1642 Houston, TX October 21, 2015 Ms. Kimberly D. Bose, Secretary Federal Energy Regulatory Commission 888 First Street, N.E. Washington, DC Re: Texas Eastern Transmission, LP Compliance Filing - Docket Nos. RP88-67, et al. (Phase II/PCBs) Docket No. RP16- Dear Ms. Bose: In compliance with the Stipulation and Agreement filed by Texas Eastern Transmission, LP ("Texas Eastern") in the above-captioned dockets ("Settlement") 1 and Section 26 of the General Terms and Conditions of Texas Eastern's FERC Gas Tariff, Eighth Revised Volume No. 1, Texas Eastern hereby submits for filing the tariff sections listed in Appendix A to this letter as part of its FERC Gas Tariff, Eighth Revised Volume No. 1. Such tariff sections reflect a small increase in the PCB-Related Cost component of certain of Texas Eastern's currently effective rates. This compliance filing reflects the last full billing cycle under the Settlement, which could terminate as early as March 18, 2017, with the agreement of the parties. Article XI.B of the Settlement specifically contemplates a meeting with the parties in the year preceding termination and provides for the effectuation of true ups at the end of the Settlement term, including the deferred account balance which is currently estimated at $8,769,434 as noted below. Texas Eastern therefore will schedule a meeting, to be held in the summer of 2016, to determine the appropriate mechanism to recover true up amounts and any unrecovered costs for the next partial billing period between December 2016 and March If there are any questions in the interim pertaining to the termination of the Settlement, please contact Christopher Perkins at (713) , or at ccperkins@spectraenergy.com. STATEMENT OF NATURE, REASONS AND BASIS 1 The Settlement was filed on December 17, 1991, and approved without modification by the Commission on March 18, FERC 61,295 (1992).

2 Ms. Kimberly D. Bose, Secretary October 21, 2015 Page 2 Article VI.B.1(c) of the Settlement and Section 26 of the General Terms and Conditions of Texas Eastern s tariff requires Texas Eastern to submit by October 31, 2015, tariff sections setting forth the rates under the Settlement from December 1, 2015 through November 30, 2016 ("Year 26"). The enclosed tariff sections meet this requirement and reflect Texas Eastern's estimate of its Year 26 Eligible PCB-Related Costs of approximately $2,085,000 of which approximately $1,198,875 is recoverable by Texas Eastern pursuant to the Settlement. Approximately $877,833 is eligible to be reflected in current rates proposed herein. This $877,833 reflects an IT revenue credit of approximately $15,038 and a deferred account balance of approximately $8,769,434, and a 15% increase limitation on the prior year s recoverable costs of $9,075,438. As a result of the 15% increase limitation, the cost increase is very small, only $114,500. The Year 26 filing is presented in the same format as in recent annual filings, including an executive summary that briefly describes all the major components of the filing. This filing includes workpapers showing both the cost basis for Texas Eastern's calculation of the PCB-Related Costs recoverable under the Settlement for Year 26 (Exhibits A through E) and the cost allocation and rate design supporting the tariff sections (Exhibits F through J-2). Consistent with its established practice in prior annual filings approved by the Commission, Texas Eastern has not included in this filing the workpapers supporting its calculation of the IT credit because they are so voluminous. A copy of this detail will be available for review in the offices of Spectra Energy Corporation in Washington, DC through December 31, As required by Article VI.G of the Settlement, the Year 26 PCB-Related Cost component of Texas Eastern's rates is included as a component of Texas Eastern's base tariff or, where applicable, total rates, rather than as a separate surcharge. The specific PCB-Related Cost component included in Texas Eastern's rates is set out in Appendix B to this letter, as required by the Settlement. PROPOSED EFFECTIVE DATE Texas Eastern respectfully requests any waivers that may be required for the Commission to accept the revised tariff sections listed in Appendix A to become effective on December 1, IMPLEMENTATION Pursuant to Section 154.7(a)(9) of the Commission's Regulations, 18 C.F.R (a)(9), Texas Eastern files this motion to place the revised tariff sections filed herein into effect on December 1, COMPLIANCE WITH REGULATIONS 2 Pursuant to Article VI.B.1.(b) of the Settlement, the annual PCB-Related Cost rate filings are not subject to suspension.

3 Ms. Kimberly D. Bose, Secretary October 21, 2015 Page 3 In compliance with Section 154.4(c) of the Commission's Regulations, 18 C.F.R (c), all contents of this filing are being submitted as part of an XML filing package in conformance with the Secretary of the Commission s instructions. In compliance with Section (a) of the Commission's Regulations, 18 C.F.R (a), a marked version of the tariff records with changes showing additions and deletions is attached. Copies of this filing are being posted in accordance with Section of the Commission's Regulations, 18 C.F.R In accordance with Section of the Commission s regulations, 18 C.F.R , copies of this filing are being sent to all parties on the service list in Docket Nos. RP88-67, et al. and to all other affected customers of Texas Eastern and interested state commissions. CORRESPONDENCE AND COMMUNICATION All correspondence and communications regarding this filing should be addressed to the following: * Emily L. Strait, Counsel Texas Eastern Transmission, LP P.O. Box 1642 Houston, TX (713) elstrait@spectraenergy.com and * Berk Donaldson, General Manager, Rates & Certificates Texas Eastern Transmission, LP P.O. Box 1642 Houston, TX (713) bdonaldson@spectraenergy.com *Parties to be designated on FERC's Official Service List. If there are any questions pertaining to this filing, please contact Joe Payne at (713) , by facsimile at (713) or at japayne@spectraenergy.com.

4 Ms. Kimberly D. Bose, Secretary October 21, 2015 Page 4 Respectfully submitted, /s/ Berk Donaldson BD:jap Attachment Berk Donaldson General Manager, Rates & Certificates

5 CERTIFICATE OF SERVICE I hereby certify that I have served a copy of the foregoing document upon all affected customers and interested state commissions. Dated at Houston, Texas, this 21 st day of October /s/ Christopher C. Perkins Christopher C. Perkins On behalf of Texas Eastern Transmission, LP

6 APPENDIX A TEXAS EASTERN TRANSMISSION, LP Eighth Revised Volume No. 1 Version Section (Description & Title, Narrative Name) Part 4 Statement of Rates Rate Schedule CDS, Statement of Rates Rate Schedule FT-1, Statement of Rates Rate Schedule IT-1, Statement of Rates Rate Schedule LLFT and LLIT, Statement of Rates Individual Certified Transportation Rate Schedule Notice of Rate Change Adjustments

7 TEXAS EASTERN TRANSMISSION, LP Docket Nos. RP88-67 et al. (Phase II/PCBs) Year 26 PCB-Related Costs Rate Components 12 Months Ending November 30, 2016 Appendix B Page 1 of 14 (1) (2) (3) (4) (5) (6) (7) Line RESERVATION CHARGE RESERVATION CHARGE ADJUSTMENT No Rate Schedule(s) Zone $/dth $/dth CDS & FT-1 MAXIMUM MINIMUM MAXIMUM MINIMUM ACCESS AREA 1 STX-AAB WLA-AAB ELA-AAB ETX-AAB STX-STX STX-WLA STX-ELA STX-ETX WLA-WLA WLA-ELA WLA-ETX ELA-ELA ETX-ETX ETX-ELA MARKET AREA MAXIMUM MINIMUM MAXIMUM MINIMUM 18 M1-M M1-M M1-M M2-M M2-M M3-M CDS & FT-1 USAGE CHARGES - $/dth 26 USAGE-1 - MAXIMUM STX WLA ELA ETX M1 M2 M3 27 from STX from WLA from ELA from ETX from M from M from M USAGE-1 - MINIMUM 36 from STX from WLA from ELA from ETX from M from M from M USAGE-1 - BACKHAUL MAXIMUM 45 from STX from WLA from ELA from ETX from M from M from M USAGE-1 - BACKHAUL MINIMUM 54 from STX from WLA from ELA from ETX from M from M from M USAGE-2 63 CDS FT USAGE

8 TEXAS EASTERN TRANSMISSION, LP Docket Nos. RP88-67 et. al. (Phase II/PCBs) Year 26 PCB-Related Costs Rate Components 12 Months Ending November 30, 2016 Appendix B Page 2 of 14 Line (1) (2) (3) (4) (5) (6) (7) No Rate Schedule(s) Zone RESERVATION CHARGE ADJUSTMENT/ CDS & FT-1 RESERVATION CHARGE VOLUMETRIC RESERVATION CHARGE CAPACITY RELEASE Mileage Non-Mileage TOTAL Mileage Non-Mileage TOTAL ACCESS AREA 1 STX-AAB WLA-AAB ELA-AAB ETX-AAB STX-STX STX-WLA STX-ELA STX-ETX WLA-WLA WLA-ELA WLA-ETX ELA-ELA ETX-ETX ETX-ELA MARKET AREA 17 M1-M M1-M M1-M M2-M M2-M M3-M USAGE-1 RATE - $/dth 25 STX WLA ELA ETX M1 M2 M3 26 MILEAGE 27 from STX from WLA from ELA from ETX from M from M from M NON-MILEAGE 35 from STX from WLA from ELA from ETX from M from M from M TOTAL 43 from STX from WLA from ELA from ETX from M from M from M USAGE-1 BACKHAUL RATE - $/dth 52 STX WLA ELA ETX M1 M2 M3 53 MILEAGE 54 from STX from WLA from ELA from ETX from M from M from M NON-MILEAGE 62 from STX from WLA from ELA from ETX from M from M from M TOTAL 70 from STX from WLA from ELA from ETX from M from M from M

9 TEXAS EASTERN TRANSMISSION, LP Docket Nos. RP88-67 et. al. (Phase II/PCBs) Year 26 PCB-Related Costs Rate Components 12 Months Ending November 30, 2016 Appendix B Page 3 of 14 Line No Rate Schedule(s) Description CDS, FT-1 & SCT INCREMENTAL FACILITY CHARGES (1) INCREMENTAL FACILITY CHARGES $/dth 1 FT-1 To applicable customers converting from Rate Schedule FTS 2 in Docket No. CP82-446: RESERVATION CHARGE RESERVATION CHARGE ADJUSTMENT FT-1 To applicable customers converting from Rate Schedule FTS-4 5 in Docket No. CP87-4: RESERVATION CHARGE RESERVATION CHARGE ADJUSTMENT FT-1 To applicable customers converting from Rate Schedule FTS-5 8 in Docket No. CP87-312: RESERVATION CHARGE RESERVATION CHARGE ADJUSTMENT FT-1 To applicable customers converting from Rate Schedule FTS-7 11 in Docket No. CP80-170: RESERVATION CHARGE RESERVATION CHARGE ADJUSTMENT FT-1 To applicable customers converting from Rate Schedule FTS-8 14 in Docket No. CP85-803: RESERVATION CHARGE RESERVATION CHARGE ADJUSTMENT

10 TEXAS EASTERN TRANSMISSION, LP Docket Nos. RP88-67 et. al. (Phase II/PCBs) Year 26 PCB-Related Costs Rate Components 12 Months Ending November 30, 2016 Appendix B Page 4 of 14 (1) (2) Line Maximum Minimum No Rate Schedule(s) Description $/dth $/dth 1 APPLICABLE TO CUSTOMERS UTILIZING CAPACITY PURSUANT TO INCREMENTAL 2 FACILITY EXPANSIONS IMPLEMENTED ON OR AFTER JUNE 1, 1993: 3 Docket No. CP (Columbia Liberty Expansion): 4 FT-1 5 Pursuant to Section 3.2 of Rate Schedule FT-1: 6 RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT Pursuant to Section 3.14 of the General Terms and Conditions: 11 VOLUMETRIC RESERVATION CHARGE Docket No. CP02-32 (TIME Project): 13 FT-1 14 Pursuant to Section 3.2 of Rate Schedule FT-1: 15 RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT Pursuant to Section 3.14 of the General Terms and Conditions: 20 VOLUMETRIC RESERVATION CHARGE Docket No. CP (North Carolina Project): 22 FT-1 23 Pursuant to Section 3.2 of Rate Schedule FT-1: 24 RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT Pursuant to Section 3.14 of the General Terms and Conditions: 29 VOLUMETRIC RESERVATION CHARGE Docket No. CP (Riverside Project): 31 FT-1 32 Pursuant to Section 3.2 of Rate Schedule FT-1: 33 RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT Pursuant to Section 3.14 of the General Terms and Conditions: 38 VOLUMETRIC RESERVATION CHARGE Docket No. CP95-76 and CP95-2 (Philadelphia Lateral Expansion): 40 FT-1 41 Pursuant to Section 3.2 of Rate Schedule FT-1: 42 RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT Pursuant to Section 3.14 of the General Terms and Conditions: 47 VOLUMETRIC RESERVATION CHARGE Docket No. CP (1997 Line No. 1-A Expansion): 49 FT-1 50 Pursuant to Section 3.2 of Rate Schedule FT-1: 51 RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT Pursuant to Section 3.14 of the General Terms and Conditions: 56 VOLUMETRIC RESERVATION CHARGE Docket No. CP (Ironwood Lateral): 58 FT-1 59 Pursuant to Section 3.2 of Rate Schedule FT-1: 60 RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT Pursuant to Section 3.14 of the General Terms and Conditions: 65 VOLUMETRIC RESERVATION CHARGE

11 TEXAS EASTERN TRANSMISSION, LP Docket Nos. RP88-67 et. al. (Phase II/PCBs) Year 26 PCB-Related Costs Rate Components 12 Months Ending November 30, 2016 Appendix B Page 5 of 14 (1) (2) Line Maximum Minimum No Rate Schedule(s) Description $/dth $/dth 1 APPLICABLE TO CUSTOMERS UTILIZING CAPACITY PURSUANT TO INCREMENTAL 2 FACILITY EXPANSIONS IMPLEMENTED ON OR AFTER JUNE 1, 1993: 3 FT-1 Docket No. CP (M1 Expansion Project): 4 5 Pursuant to Section 3.2 of Rate Schedule FT-1: 6 RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT Pursuant to Section 3.14 of the General Terms and Conditions: 11 VOLUMETRIC RESERVATION CHARGE FT-1 Docket No. CP (Time II Project): Pursuant to Section 3.2 of Rate Schedule FT-1: 15 RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT Pursuant to Section 3.14 of the General Terms and Conditions: 20 VOLUMETRIC RESERVATION CHARGE FT-1 Docket No. CP09-68 (TIME III Project): Pursuant to Section 3.2 of Rate Schedule FT-1: 24 RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT Pursuant to Section 3.14 of the General Terms and Conditions: 29 VOLUMETRIC RESERVATION CHARGE FT-1 Docket No. CP09-68 (TEMAX Project): Pursuant to Section 3.2 of Rate Schedule FT-1: 33 RESERVATION CHARGE USAGE-1 CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT Pursuant to Section 3.14 of the General Terms and Conditions: 39 VOLUMETRIC RESERVATION CHARGE FT-1 Docket No. CP09-68 (FIRM MARIETTA EXTENSION TRANSPORTATION): Pursuant to Section 3.2 of Rate Schedule FT-1: 43 RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT Pursuant to Section 3.14 of the General Terms and Conditions: 48 VOLUMETRIC RESERVATION CHARGE FT-1 Docket No. CP (TEAM 2012 Project): Pursuant to Section 3.2 of Rate Schedule FT-1: 52 RESERVATION CHARGE USAGE-1 CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT Pursuant to Section 3.14 of the General Terms and Conditions: 58 VOLUMETRIC RESERVATION CHARGE FT-1 Docket No. CP (Philadelphia Lateral Expansion Project): Pursuant to Section 3.2 of Rate Schedule FT-1: 62 RESERVATION CHARGE USAGE-1 CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT Pursuant to Section 3.14 of the General Terms and Conditions: 68 VOLUMETRIC RESERVATION CHARGE

12 TEXAS EASTERN TRANSMISSION, LP Docket Nos. RP88-67 et. al. (Phase II/PCBs) Year 26 PCB-Related Costs Rate Components 12 Months Ending November 30, 2016 Appendix B Page 6 of 14 (1) (2) Line Maximum Minimum No Rate Schedule(s) Description $/dth $/dth 1 APPLICABLE TO CUSTOMERS UTILIZING CAPACITY PURSUANT TO INCREMENTAL 2 FACILITY EXPANSIONS IMPLEMENTED ON OR AFTER JUNE 1, 1993: 3 FT-1 Docket No. CP11-56 (New Jersey-New York Expansion Project): 4 5 Pursuant to Section 3.2 of Rate Schedule FT-1: 6 RESERVATION CHARGE USAGE-1 CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT Pursuant to Section 3.14 of the General Terms and Conditions: 12 VOLUMETRIC RESERVATION CHARGE FT-1 Docket No. CP11-56 (FIRM MANHATTAN EXTENSION TRANSPORTATION): Pursuant to Section 3.2 of Rate Schedule FT-1: 16 RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT Pursuant to Section 3.14 of the General Terms and Conditions: 21 VOLUMETRIC RESERVATION CHARGE FT-1 Docket No. CP (TEAM 2014 Project): Pursuant to Section 3.2 of Rate Schedule FT-1: 25 RESERVATION CHARGE USAGE-1 CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT Pursuant to Section 3.14 of the General Terms and Conditions: 31 VOLUMETRIC RESERVATION CHARGE FT-1 Docket No. CP (Ohio Pipeline Energy Network Project): Pursuant to Section 3.2 of Rate Schedule FT-1: 35 RESERVATION CHARGE USAGE-1 CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT Pursuant to Section 3.14 of the General Terms and Conditions: 41 VOLUMETRIC RESERVATION CHARGE

13 TEXAS EASTERN TRANSMISSION, LP Docket Nos. RP88-67 et. al. (Phase II/PCBs) Year 26 PCB-Related Costs Rate Components 12 Months Ending November 30, 2016 Appendix B Page 7 of 14 Line (1) (2) (3) (4) (5) (6) (7) No Rate Schedule(s) Zone RESERVATION CHARGE RESERVATION CHARGE ADJUSTMENT SCT ACCESS AREA MAXIMUM MINIMUM MAXIMUM MINIMUM 1 STX-AAB WLA-AAB ELA-AAB ETX-AAB STX-STX STX-WLA STX-ELA STX-ETX WLA-WLA WLA-ELA WLA-ETX ELA-ELA ETX-ETX ETX-ELA MARKET AREA MAXIMUM MINIMUM MAXIMUM MINIMUM 17 M1-M M1-M M1-M M2-M M2-M M3-M SCT DEMAND CHARGE 25 MAXIMUM MINIMUM 26 ACCESS AREA 27 WLA-ELA MARKET AREA MAXIMUM MINIMUM 30 M1-M M1-M M1-M USAGE RATES - $/dth 35 STX WLA ELA ETX M1 M2 M3 36 USAGE-1 - MAXIMUM 37 from STX from WLA from ELA from ETX from M from M from M USAGE-1 - MINIMUM 46 from STX from WLA from ELA from ETX from M from M from M USAGE-1 - BACKHAUL MAXIMUM 56 T/S : 42 from STX from WLA from ELA from ETX from M from M from M USAGE-1 - BACKHAUL MINIMUM 65 T/S : 42 from STX from WLA from ELA from ETX from M from M from M T/S: 42 USAGE T/S : 42 USAGE

14 TEXAS EASTERN TRANSMISSION, LP Docket Nos. RP88-67 et. al. (Phase II/PCBs) Year 26 PCB-Related Costs Rate Components 12 Months Ending November 30, 2016 Appendix B Page 8 of 14 (1) (2) (3) (4) (5) (6) (7) Line No Rate Schedule(s) Zone STX WLA ELA ETX M1 M2 M3 SCT 1 ALTERNATE USAGE - MAXIMUM 2 from STX from WLA from ELA from ETX from M from M from M ALTERNATE USAGE - MINIMUM 11 from STX from WLA from ELA from ETX from M from M from M ALTERNATE USAGE - BACKHAUL MAXIMUM 20 from STX from WLA from ELA from ETX from M from M from M ALTERNATE USAGE - BACKHAUL MINIMUM 29 from STX from WLA from ELA from ETX from M from M from M

15 TEXAS EASTERN TRANSMISSION, LP Docket Nos. RP88-67 et. al. (Phase II/PCBs) Year 26 PCB-Related Costs Rate Components 12 Months Ending November 30, 2016 Appendix B Page 9 of 14 Line (1) (2) (3) (4) (5) (6) (7) No Rate Schedule(s) Zone RESERVATION CHARGE ADJUSTMENT/ SCT RESERVATION CHARGE VOLUMETRIC RESERVATION CHARGE CAPACITY RELEASE $/dth $/dth CHARGES NON- NON- ACCESS AREA MILEAGE MILEAGE TOTAL MILEAGE MILEAGE TOTAL 1 STX-AAB WLA-AAB ELA-AAB ETX-AAB STX-STX STX-WLA STX-ELA STX-ETX WLA-WLA WLA-ELA WLA-ETX ELA-ELA ETX-ETX ETX-ELA MARKET AREA 17 M1-M M1-M M1-M M2-M M2-M M3-M DEMAND CHARGE 25 $/dth NON- 28 MILEAGE MILEAGE TOTAL 29 ACCESS AREA 30 WLA-ELA MARKET AREA 33 M1-M M1-M M1-M

16 TEXAS EASTERN TRANSMISSION, LP Docket Nos. RP88-67 et. al. (Phase II/PCBs) Year 26 PCB-Related Costs Rate Components 12 Months Ending November 30, 2016 Appendix B Page 10 of 14 (1) (2) (3) (4) (5) (6) (7) Line No Rate Schedule(s) Zone STX WLA ELA ETX M1 M2 M3 SCT CAPACITY RELEASE CHARGES USAGE-1 RATE - $/dth 1 MILEAGE 2 from STX from WLA from ELA from ETX from M from M from M NON-MILEAGE 10 from STX from WLA from ELA from ETX from M from M from M TOTAL 18 from STX from WLA from ELA from ETX from M from M from M USAGE-1 BACKHAUL RATE - $/dth MILEAGE 30 from STX from WLA from ELA from ETX from M from M from M NON-MILEAGE 38 from STX from WLA from ELA from ETX from M from M from M TOTAL 46 from STX from WLA from ELA from ETX from M from M from M

17 TEXAS EASTERN TRANSMISSION, LP Docket Nos. RP88-67 et. al. (Phase II/PCBs) Year 26 PCB-Related Costs Rate Components 12 Months Ending November 30, 2016 Appendix B Page 11 of 14 Line (1) (2) (3) (4) (5) (6) (7) No Rate Schedule(s) Zone STX WLA ELA ETX M1 M2 M3 1 IT-1 USAGE-1 MAXIMUM 2 from STX from WLA from ELA from ETX from M from M from M USAGE-1 MINIMUM 11 from STX from WLA from ELA from ETX from M from M from M USAGE-1 BACKHAUL MAXIMUM 20 from STX from WLA from ELA from ETX from M from M from M USAGE-1 BACKHAUL MINIMUM 29 from STX from WLA from ELA from ETX from M from M from M USAGE

18 TEXAS EASTERN TRANSMISSION, LP Docket Nos. RP88-67 et. al. (Phase II/PCBs) Year 26 PCB-Related Costs Rate Components 12 Months Ending November 30, 2016 Appendix B Page 12 of 14 (1) (2) Line Maximum Minimum No Rate Schedule(s) Description $/dth $/dth 1 MLS-1 MARKET LATERAL FACILITY CHARGES 2 3 Docket No. CP02-17 (Freehold Lateral): 4 5 Pursuant to Section 3.2 of Rate Schedule MLS-1: 6 RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT Pursuant to Section 3.14 of the General Terms and Conditions: 11 VOLUMETRIC RESERVATION CHARGE Docket No. CP02-45 (Hanging Rock Lateral): Pursuant to Section 3.2 of Rate Schedule MLS-1: 15 RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT Pursuant to Section 3.3 of Rate Schedule MLS-1: 20 USAGE-1 CHARGE USAGE-2 CHARGE Pursuant to Section 3.14 of the General Terms and Conditions: 24 VOLUMETRIC RESERVATION CHARGE Docket No. RP03- (Fayette Lateral): Pursuant to Section 3.2 of Rate Schedule MLS-1: 28 RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT Pursuant to Section 3.3 of Rate Schedule MLS-1: 33 USAGE-1 CHARGE USAGE-2 CHARGE Pursuant to Section 3.14 of the General Terms and Conditions: 37 VOLUMETRIC RESERVATION CHARGE Docket No. CP (Cedar Bayou Lateral): Pursuant to Section 3.2 of Rate Schedule MLS-1: 41 RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT Pursuant to Section 3.3 of Rate Schedule MLS-1: 46 USAGE-1 CHARGE USAGE-2 CHARGE Pursuant to Section 3.14 of the General Terms and Conditions: 50 VOLUMETRIC RESERVATION CHARGE Docket No. CP (Hot Spring Lateral): Pursuant to Section 3.2 of Rate Schedule MLS-1: 54 RESERVATION CHARGE USAGE-2 CHARGE RESERVATION CHARGE ADJUSTMENT Pursuant to Section 3.3 of Rate Schedule MLS-1: 59 USAGE-1 CHARGE USAGE-2 CHARGE Pursuant to Section 3.14 of the General Terms and Conditions: 63 VOLUMETRIC RESERVATION CHARGE

19 TEXAS EASTERN TRANSMISSION, LP Docket Nos. RP88-67 et. al. (Phase II/PCBs) Year 26 PCB-Related Costs Rate Components 12 Months Ending November 30, 2016 Appendix B Page 13 of 14 (1) (2) (3) (4) (5) (6) (7) Line No Description Rate Schedules Rate Schedule(s) ---> SS-1 FSS-1 ISS-1 SS X-28 1 MAXIMUM RESERVATION CHARGE NA NA SPACE CHARGE INJECTION CHARGE WITHDRAWAL CHARGE EXCESS INJECTION CHARGE NA NA EXCESS WITHDRAWAL CHARGE NA RESERVATION CHARGE ADJUSTMENT NA TRANSMISSION COMPONENT OF RESERVATION CHARGE NA NA NA NA 9 TRANSMISSION COMPONENT OF WITHDRAWAL CHARGE NA NA NA NA MINIMUM RESERVATION CHARGE NA NA NA 12 SPACE CHARGE NA NA 13 INJECTION CHARGE NA NA 14 WITHDRAWAL CHARGE NA NA 15 EXCESS INJECTION CHARGE NA NA NA 16 EXCESS WITHDRAWAL CHARGE NA NA NA 17 RESERVATION CHARGE ADJUSTMENT NA NA NA CAPACITY RELEASE CHARGES 21 CAPACITY RELEASE CHARGES Rate Schedule(s) ---> SS-1 FSS NON- 27 MILEAGE MILEAGE TOTAL TOTAL 28 MAXIMUM RESERVATION CHARGE SPACE CHARGE VOLUMETRIC RESERVATION CHARGE DAILY SPACE CHARGE MINIMUM RESERVATION CHARGE SPACE CHARGE VOLUMETRIC RESERVATION CHARGE DAILY SPACE CHARGE

20 TEXAS EASTERN TRANSMISSION, LP Docket Nos. RP88-67 et. al. (Phase II/PCBs) Year 26 PCB-Related Costs Rate Components 12 Months Ending November 30, 2016 Appendix B Page 14 of 14 (1) (2) (3) (4) (5) (6) (7) Line Rate Res Chg Usage-1 Usage-2 Comm Res Chg Vol Unscheduled No Schedules Description Adjmt Res Chg Usage 1 Volume 1 2 LLFT/ITP Maximum NA NA 3 LLFT on LL Maximum NA NA 4 LLFT/ITP Minimum NA NA NA 5 LLFT on LL Minimum NA NA NA 6 LLIT/ITP Maximum NA NA NA NA NA 7 LLIT on LL Maximum NA NA NA NA NA 8 LLIT/ITP Minimum NA NA NA NA NA NA 9 LLIT on LL Minimum NA NA NA NA NA NA 10 VKFT Maximum NA NA NA 11 VKFT Minimum NA NA NA 12 VKIT Maximum NA NA 13 VKIT Minimum NA NA 14 FTS NA NA NA NA 15 FTS NA NA NA NA 16 FTS NA NA NA NA 17 FTS NA NA NA NA 18 FTS-7 M1,M2,M NA NA NA NA 19 FTS-8 M1,M2,M NA NA NA NA 20 Volume X NA NA NA NA X NA NA NA NA X NA NA NA NA X NA NA NA NA X NA NA NA NA Operational Long Term Leases 28 Columbia Lease NA NA NA NA NA NA 29 WinterNet (CNG) Lease NA NA NA NA NA NA 30 Dominion Lease NA NA NA NA NA NA 31 Discovery Lease NA NA NA NA NA NA

21 Texas Eastern Transmission, LP Compliance Filing - Docket Nos. RP88-67 et al. (Phase II/PCBs) Docket No. RP16- Executive Summary

22 TEXAS EASTERN TRANSMISSION, LP Docket Nos. RP88-67, et al. (Phase II/PCBs) EXECUTIVE SUMMARY I. General This filing establishes revised PCB-related rate components to become effective December 1, Changes in rates proposed herein reflect changes only in the PCB-related cost rate component. The workpapers in this filing are organized in the same manner as in previous compliance filings and are listed below. Cost Workpapers Exhibit A -Derivation of costs for Year 26 rates Exhibit B -Summary of estimated eligible PCB-related costs Exhibit C -Detail of estimated eligible PCB-related costs Exhibit D -Calculation of deferred account balance Exhibit E -Not applicable (formerly refund credit calculation) Allocation and Rate Design Workpapers Exhibit F -Cost allocation to incrementals and SCT Exhibit F-1 -Cost allocation among incrementals Exhibit F-2 -Calculation of the SCT revenue adjustment Exhibit G -Adjusted EAM rates and revenue summary Exhibit H -Unadjusted EAM rates and revenue summary Exhibit I -EAM allocation of cost by zone Exhibit J -Calculation of Base Tariff Rates Exhibit J-1 -Calculation of Capacity Release Charges Exhibit J-2 -Calculation of Incremental Facility Charges Supplemental Information Exhibit K -Comparison of actual expenditures to $622MM cap II. Eligible Costs Texas Eastern's estimate of its Year 26 eligible PCB-related costs is approximately $2,085,000, as shown on line 1 of Exhibit A and as detailed on Exhibits B and C of the Cost Workpapers.

23 Executive Summary Page 2 The estimate for the twelve-month period ending November 30, 2016 includes: (a) maintenance and retirement of groundwater monitoring wells for the Long Term Groundwater Monitoring Program; (b) facility costs for waste incineration; (c) ongoing soil remediation; and (d) ongoing routine PCB waste disposal costs. Texas Eastern has considered actual experience to date and other current and anticipated market factors in developing its Year 26 estimate. The following is a summary of the major categories of PCB-related expenditures: $ Source Control 500,000 Assessment Costs 0 Oversight Costs (EPA, State Oversight) 0 Waste Disposal 1,500,000 Costs of Outside Services (Audit, Outside Legal) 85,000 Total Estimate $2,085,000 Historical Costs: From December 1, 1990 through July 31, 2015, Texas Eastern has expended approximately $379.0 million under the PCB-Related Cost Settlement. This figure has not been adjusted for the GNP Implicit Price Deflator Factor. The annual audited costs are shown on Exhibit K. The recoverable portion (57.5%) of Year 25 monthly amounts through July are presented, on a month lag, on lines 7-14 of Exhibit D. The costs for the completed years are recapped as follows: Total Audited 57.5% As-filed Recoverable */ Year 1 $38.8 MM $22.3 MM $22.4 MM Year 2 $68.3 MM $39.3 MM $25.7 MM Year 3 $53.1 MM $30.5 MM $29.6 MM Year 4 $48.5 MM $27.9 MM $34.0 MM Year 5 $42.7 MM $24.6 MM $18.4 MM Year 6 $47.6 MM $27.4 MM $17.0 MM Year 7 $36.5 MM $21.0 MM $10.6 MM Year 8 $ 7.6 MM $ 4.4 MM $12.2 MM Year 9 $ 4.1 MM $ 2.4 MM $14.0 MM Year 10 $ 2.8 MM $ 1.6 MM $ 6.3 MM Year 11 $ 2.9 MM $ 1.6 MM $ 1.4 MM Year 12 $ 2.4 MM $ 1.4 MM $ 1.2 MM

24 Executive Summary Page 3 Year 13 $ 1.4 MM $ 0.8 MM $ 1.1 MM Year 14 $ 1.2 MM $ 0.7 MM $ 0.8 MM Year 15 $ 1.8 MM $ 1.1 MM $ 0.9 MM Year 16 $ 1.8 MM $ 1.1 MM $ 0.2 MM Year 17 Year 18 $ 1.5 MM $ 1.2 MM $ 0.8 MM $ 0.7 MM $ 0.2 MM $ 0.3 MM Year 19 $ 1.3 MM $ 0.8 MM $ 0.3 MM Year 20 $ 2.2 MM $ 1.3 MM $ 0.4 MM Year 21 Year 22 Year 23 $ 3.0 MM $ 4.8 MM $ 1.5 MM $ 1.7 MM $ 2.8 MM $ 0.9 MM $ 0.4 MM $ 0.5 MM $ 0.7 MM Year 24 $ 2.6 MM $ 0.8 MM $ 0.9 MM */ Represents total recoverable costs (net of refunds) calculated in previous filings for firm rate recovery. Any over/under collections due to contract changes, derivative rates, etc. are reflected in the deferred account. III. Recoverable Costs Texas Eastern's PCB-related costs recoverable in Year 26 pursuant to the S&A, are approximately $877,833 as calculated below and on Exhibit A of the Cost Workpapers. $ Eligible Annual Cost 2,085,000 Recoverable Portion: 57.5% 1,198,875 LESS: IT Credit 15,038 ADD: Def. Acct. Balance, Principal & Interest 8,769,434 Net Recoverable PCB-Related Costs $9,953,271 LESS: Adjustment for 15% Increase Limitation 9,075,438 Costs Recoverable in Year 26 $877,833 Exhibit A includes a reference column for locating more detail on each cost item. The $15,038 IT Credit in recoverable costs for Year 26 is the total IT PCBrelated cost recovery during the transaction months of August 2014 through July A copy of the IT Credit detail will be maintained in Spectra Energy's Washington, DC office through December 31, 2015.

25 Executive Summary Page 4 August 31, 2015 deferred account balances, principal and interest, are included in Year 26 recoverable costs, as required by the Settlement. The deferred account matches 57.5% of actual incurred costs, reduced by applicable credits, against actual firm recoveries, as billed. The net principal balance, as calculated on Exhibit D, includes, as applicable: a. credits for PCB-related revenue recovered from new firm contracts or contract increases after December 1; b. credits for PCB-related revenue recovered through derivative rates; c. minor adjustments for corrections to prior period costs and recoveries; and d. minor under- or over-recoveries from rate rounding. IV. Rates Shown on the Allocation and Rate Design Workpapers is the calculation of the Year 26 Settlement rates, in accordance with the "EAM" methodology specified in the S&A. The EAM methodology is applied to Texas Eastern's restructured services under Order No. 636 consistent with previous filings. The costs recoverable in Year 26 are first allocated to incremental services, based on the.0064 assignment factor specified in the Settlement, as adjusted for MDQs at December 1, The remaining recoverable costs are allocated 50% on a volumetric basis and 50% on a mileage basis in a manner consistent with the sample EAM calculation contained in Exhibit D to the Settlement and the prior years' compliance filings. As required by the S&A, the volumetric allocation is based on annualized MDQs as of December 1, SCT customers are assigned 1.566% of the net recoverable costs after the allocation to incremental services. Rates are adjusted according to the EAM methodology prescribed in the Settlement.

26 Texas Eastern Transmission, LP Compliance Filing - Docket Nos. RP88-67 et al. (Phase II/PCBs) Docket No. RP16- Tariff Sheets

27 Texas Eastern Transmission, LP Part 4 - Statements of Rates FERC Gas Tariff 1. Rate Schedule CDS Eighth Revised Volume No. 1 Version Page 1 of 4 CDS RESERVATION CHARGES CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 Pursuant to Sections 3.2, 3.3, and 3.5 of Rate Schedule CDS: CDS RESERVATION CDS RESERVATION CHARGE* CHARGE ADJUSTMENT $/dth $/dth ACCESS AREA MAXIMUM MINIMUM MAXIMUM MINIMUM STX-AAB WLA-AAB ELA-AAB ETX-AAB STX-STX STX-WLA STX-ELA STX-ETX WLA-WLA WLA-ELA WLA-ETX ELA-ELA ETX-ETX ETX-ELA MARKET AREA MAXIMUM MINIMUM MAXIMUM MINIMUM M1-M M1-M M1-M M2-M M2-M M3-M * Reservation Charge reflects a storage surcharge of: ALL ZONES $/dth PRE-INJECTION CREDIT APPLICABLE TO CUSTOMERS' RESERVATION CHARGE PURSUANT TO SECTION 2.4 OF RATE SCHEDULE CDS Issued on: October 21, 2015 Effective on: December 1, 2015

28 Texas Eastern Transmission, LP Part 4 - Statements of Rates FERC Gas Tariff 1. Rate Schedule CDS Eighth Revised Volume No. 1 Version Page 2 of 4 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 CDS USAGE ZONE RATE CHARGES $/dth Pursuant to Sections 3.2 and 3.3 of Rate Schedule CDS: STX WLA ELA ETX M1 M2 M3 USAGE-1 - MAXIMUM from STX from WLA from ELA from ETX from M from M from M USAGE-1 - MINIMUM from STX from WLA from ELA from ETX from M from M from M USAGE-1 - BACKHAUL MAXIMUM from STX from WLA from ELA from ETX from M from M from M USAGE-1 - BACKHAUL MINIMUM from STX from WLA from ELA from ETX from M from M from M USAGE USAGE ACA COMMODITY SURCHARGE TO APPLICABLE CUSTOMERS, PURSUANT TO SECTION 15.5 OF THE GENERAL TERMS AND CONDITIONS. Issued on: October 21, 2015 Effective on: December 1, 2015

29 Texas Eastern Transmission, LP Part 4 - Statements of Rates FERC Gas Tariff 1. Rate Schedule CDS Eighth Revised Volume No. 1 Version Page 3 of 4 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 Pursuant to Section 3.14 of the General Terms and Conditions: CDS CAPACITY RELEASE RESERVATION CHARGE ADJUSTMENT/ CHARGES RESERVATION CHARGE* VOLUMETRIC RESERVATION CHARGE* $/dth $/dth NON- NON- ACCESS AREA MILEAGE MILEAGE TOTAL MILEAGE MILEAGE TOTAL STX-AAB WLA-AAB ELA-AAB ETX-AAB STX-STX STX-WLA STX-ELA STX-ETX WLA-WLA WLA-ELA WLA-ETX ELA-ELA ETX-ETX ETX-ELA MARKET AREA M1-M M1-M M1-M M2-M M2-M M3-M *Rates are exclusive of surcharges which can also be recovered. Issued on: October 21, 2015 Effective on: December 1, 2015

30 Texas Eastern Transmission, LP Part 4 - Statements of Rates FERC Gas Tariff 1. Rate Schedule CDS Eighth Revised Volume No. 1 Version Page 4 of 4 CURRENTLY EFFECTIVE SERVICE RATES APPLICABLE TO OPEN ACCESS, PART 284, RATE SCHEDULES IN FERC GAS TARIFF, EIGHTH REVISED VOLUME NO. 1 Pursuant to Section 3.14 of the General Terms and Conditions: CDS CAPACITY RELEASE CHARGES $/DTH USAGE-1 RATE* STX WLA ELA ETX M1 M2 M3 MILEAGE from STX from WLA from ELA from ETX from M from M from M NON-MILEAGE from STX from WLA from ELA from ETX from M from M from M TOTAL from STX from WLA from ELA from ETX from M from M from M USAGE-1 BACKHAUL RATE* STX WLA ELA ETX M1 M2 M3 MILEAGE from STX from WLA from ELA from ETX from M from M from M NON-MILEAGE from STX from WLA from ELA from ETX from M from M from M TOTAL from STX from WLA from ELA from ETX from M from M from M *Rates are exclusive of surcharges which can also be recovered. Issued on: October 21, 2015 Effective on: December 1, 2015