View Filing Data

Document And Entity Information	6 Months Ended
Document And Entity Information	Jun. 30, 2019 shares
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Amendment Flag	false
Entity Registrant Name	Panhandle Eastern Pipe Line Company, LP
Entity Central Index Key	0000076063
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Document Period End Date	Jun. 30, 2019
Entity File Number	1-2921
Entity Address, Address Line One	8111 Westchester Drive
Entity Address, Address Line Two	Suite 600
Entity Address, City or Town	Dallas
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75225
City Area Code	214
Local Phone Number	981-0700
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false
Entity Tax Identification Number	44-0382470
Entity Incorporation, State or Country Code	DE
Entity Common Stock, Shares Outstanding	0

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 2	$ 20
Accounts receivable, net	40	43
Accounts receivable from related companies	8	11
Exchanges receivable	6	8
Inventories	70	98
Other current assets	4	6
Total current assets	130	186
Property, plant and equipment:
Property, plant and equipment	3,217	3,196
Accumulated depreciation	(555)	(507)
Net property, plant and equipment	2,662	2,689
Operating Lease, Right-of-Use Asset	5	0
Other non-current assets, net	118	108
Goodwill	12	12
Total assets	2,927	2,995
Current liabilities:
Current maturities of long-term debt	0	152
Accounts payable and accrued liabilities	1	6
Accounts payable to related companies	18	46
Exchanges payable	53	85
Other current liabilities	53	69
Total current liabilities	125	358
Long-term debt, less current maturities	248	249
Note payable to related company	421	356
Deferred income taxes	444	437
Operating Lease, Liability, Noncurrent	5	0
Other non-current liabilities	231	233
Commitments and contingencies
Partners’ capital:
Partners’ capital	1,491	1,409
Accumulated other comprehensive loss	(38)	(47)
Total partners’ capital	1,453	1,362
Total liabilities and partners’ capital	$ 2,927	$ 2,995

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
OPERATING REVENUES:
Total operating revenues	$ 139	$ 134	$ 297	$ 283
OPERATING EXPENSES:
Cost of natural gas and other energy	0	1	0	2
Operating and maintenance	49	54	96	101
General and administrative	8	7	14	14
Depreciation and amortization	30	30	59	60
Total operating expenses	87	92	169	177
OPERATING INCOME	52	42	128	106
OTHER INCOME (EXPENSE):
Interest expense, net	(5)	(8)	(10)	(18)
Interest Expense, Related Party	(5)	(2)	(9)	(3)
Other, net	0	(1)	0	(2)
INCOME BEFORE INCOME TAX EXPENSE	42	31	109	83
Income tax expense	11	9	28	27
NET INCOME	31	22	81	56
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX
Actuarial income (loss) relating to postretirement benefit plans	3	0	9	(1)
COMPREHENSIVE INCOME	34	22	90	55
Natural Gas, US Regulated [Member]
OPERATING REVENUES:
Transportation and storage of natural gas	133	131	285	273
Product and Service, Other [Member]
OPERATING REVENUES:
Transportation and storage of natural gas	$ 6	$ 3	$ 12	$ 10

CONSOLIDATED STATEMENT OF PARTNERS' CAPITAL - USD ($) $ in Millions	Total	Limited partner	Accumulated Other Comprehensive Loss
Stockholders' Equity, Balance	$ 1,345	$ 1,348	$ (3)
Other Comprehensive Income (Loss), Net of Tax	(1)	0	(1)
Net income	34	34	0
Partners' Capital Account, Distributions	(24)	24	0
Non-Cash Equity Contribution	11	11	0
Stockholders' Equity, Other	(2)	(4)	2
Net income	56
Stockholders' Equity, Balance	1,367	1,373	(6)
Net income	22	22	0
Stockholders' Equity, Other	(1)	(1)	0
Stockholders' Equity, Balance	1,390	1,396	(6)
Stockholders' Equity, Balance	1,362	1,409	(47)
Other Comprehensive Income (Loss), Net of Tax	6	0	6
Net income	50	50	0
Net income	81
Stockholders' Equity, Balance	1,418	1,459	(41)
Other Comprehensive Income (Loss), Net of Tax	3	0	3
Net income	31	31	0
Stockholders' Equity, Other	1	1	0
Stockholders' Equity, Balance	$ 1,453	$ 1,491	$ (38)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
OPERATING ACTIVITIES:
Net income	$ 81	$ 56
Reconciliation of net income to net cash provided by operating activities:
Depreciation and amortization	59	60
Deferred income taxes	4	17
Amortization of deferred financing fees	(3)	(9)
Other non-cash	7	5
Changes in operating assets and liabilities	(47)	16
Net Cash Provided by (Used in) Operating Activities	101	145
INVESTING ACTIVITIES:
Capital expenditures	(34)	(31)
Net cash flows used in investing activities	(34)	(31)
FINANCING ACTIVITIES:
Distributions to partners	0	24
Repayments of Long-term Debt	150	400
Note payable issued from related company	152	380
Repayment of note payable from related company	87	66
Net cash flows used in financing activities	(85)	(110)
Net change in cash and cash equivalents	(18)	4
Cash and cash equivalents, beginning of period	20	2
Cash and cash equivalents, end of period	2	6
SUPPLEMENTAL INFORMATION:
Capital Expenditures Incurred but Not yet Paid	11	11
Non-Cash Contribution	0	11
Cash paid for interest	$ 14	$ 14

Operations and Organization (Notes)

6 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Operations and Organization

ORGANIZATION AND BASIS OF PRESENTATION

Organization

Panhandle Eastern Pipe Line Company, LP (“PEPL”) and its subsidiaries (collectively, the “Company”) primarily operate interstate pipelines that transport natural gas from the Gulf of Mexico, South Texas and the Panhandle region of Texas and Oklahoma to major United States markets in the Midwest and Great Lakes regions and natural gas storage assets and are subject to the rules and regulations of the FERC. The Company’s subsidiaries include Trunkline, Sea Robin and Southwest Gas.

Southern Union Panhandle LLC, an indirect wholly-owned subsidiary of Energy Transfer Operating, L.P. (“ETO”), owns a 1% general partner interest in PEPL and ETO indirectly owns a 99% limited partner interest in PEPL.

On July 1, 2019, ETO executed a series of internal restructuring transactions that resulted in PEPL becoming a subsidiary of a non-corporate subsidiary of ETO. As a result, PEPL’s tax status changed from a disregarded entity for federal income tax purposes wholly owned by a corporate entity to a disregarded entity for federal income tax purposes wholly owned by a limited partnership. In connection with this restructuring, PEPL’s tax sharing agreement with its former corporate parent was terminated, and PEPL expects to reverse all of its existing deferred tax assets and liabilities in July 2019, which will result in the recognition of a $444 million non-cash benefit in the consolidated statement of operations.

Certain prior period amounts have been reclassified to conform to the 2019 presentation. These reclassifications had no impact on net income, total partners’ capital or cash flows.

Basis of Presentation

The unaudited financial information included in this Form 10-Q has been prepared on the same basis as the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. In the opinion of the Company’s management, such financial information reflects all adjustments necessary for a fair presentation of the financial position and the results of operations for such interim periods in accordance with GAAP. All intercompany items and transactions have been eliminated in consolidation. Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with GAAP have been omitted pursuant to the rules and regulations of the SEC.

Use of Estimates

The unaudited consolidated financial statements have been prepared in conformity with GAAP, which includes the use of estimates and assumptions made by management that affect the reported amounts of assets, liabilities, revenues, expenses and disclosure of contingent assets and liabilities that exist at the date of the consolidated financial statements. Although these estimates are based on management’s available knowledge of current and expected future events, actual results could be different from those estimates.

Change in Accounting Policy

Adoption of Lease Accounting Standard

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-02, Leases (Topic 842), which has amended the FASB Accounting Standards Codification (“ASC”) and introduced Topic 842, Leases. On January 1, 2019, the Company has adopted Topic 842, which is effective for interim and annual reporting periods beginning on or after December 15, 2018. Topic 842 requires entities to recognize lease assets and liabilities on the balance sheet for all leases with a term of more than one year, including operating leases, which historically were not recorded on the balance sheet in accordance with the prior standard.

To adopt Topic 842, the Company recognized a cumulative catch-up adjustment to the opening balance sheet as of January 1, 2019 related to certain leases that existed as of that date. As permitted, we have not retrospectively modified our consolidated financial statements for comparative purposes. The adoption of the standard had a material impact on our consolidated balance sheet, but did not have an impact on our consolidated statements of operations, comprehensive income or cash flows. As a result of adoption, we have recorded additional net right-of-use (“ROU”) lease assets and lease liabilities of approximately

$6 million and $6 million, respectively, as of January 1, 2019. In addition, we have updated our business processes, systems, and internal controls to support the on-going reporting requirements under the new standard.

To adopt Topic 842, the Company elected the package of practical expedients permitted under the transition guidance within the standard. The expedient package allowed us not to reassess whether existing contracts contained a lease, the lease classification of existing leases and initial direct cost for existing leases. In addition to the package of practical expedients, the Company has elected not to capitalize amounts pertaining to leases with terms less than twelve months, to use the portfolio approach to determine discount rates, not to separate non-lease components from lease components and not to apply the use of hindsight to the active lease population.

Cumulative-effect adjustments made to the opening balance sheet at January 1, 2019 were as follows:



	Balance at December 31, 2018, as previously reported		Adjustments due to Topic 842 (Leases)		Balance at January 1, 2019
Assets:
Operating lease right-of-use assets	$	—	$	6	$	6
Liabilities:
Non-current operating lease liabilities	—		6		6

(Notes)

6 Months Ended

Jun. 30, 2019

Related Party Transactions

RELATED PARTY TRANSACTIONS

Accounts receivable from related companies reflected on the consolidated balance sheets primarily related to services provided to ETO and other affiliates. Accounts payable to related companies reflected on the consolidated balance sheets related to various services provided by ETO and other affiliates.

The following table provides a summary of the related party activity included in our consolidated statements of operations:



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Operating revenues	$	24	$	24	$	48	$	47
Operating and maintenance	1		1		2		2
General and administrative	5		5		9		11
Interest expense — related company	5		2		9		3

As of June 30, 2019 and December 31, 2018, the Company had $421 million and $356 million, respectively, outstanding under a note payable to a subsidiary of ETO. The note payable accrues interest monthly at an annual interest rate of 5.411% as of June 30, 2019. The note matures on July 31, 2027.

FAIR VALUE MEASURES (Notes)	6 Months Ended
FAIR VALUE MEASURES (Notes)	Jun. 30, 2019
Fair Value Disclosures [Abstract]
Fair Value Disclosures [Text Block]	FAIR VALUE MEASURES The Company had $29 million and $26 million of fair value of available for sale securities, included in other non-current assets, as of June 30, 2019 and December 31, 2018, respectively. At June 30, 2019, $19 million in equity securities were valued at Level 1 and $10 million in fixed income securities were valued at Level 2. At December 31, 2018, $17 million in equity securities were valued at Level 1 and $9 million in fixed income securities were valued at Level 2. The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value. Based on the estimated borrowing rates currently available to the Company and its subsidiaries for loans with similar terms and average maturities, the aggregate fair value of the Company’s consolidated debt obligations (excluding related company balances) was $250 million and $392 million at June 30, 2019 and December 31, 2018, respectively. The fair value of the Company’s consolidated debt obligations is a Level 2 valuation based on the observable inputs used for similar liabilities. The Company did not have any Level 3 instruments measured at fair value at June 30, 2019 or December 31, 2018, and there were no transfers between hierarchy levels during the periods presented.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

DEBT OBLIGATIONS (Notes)	6 Months Ended
DEBT OBLIGATIONS (Notes)	Jun. 30, 2019
Debt Obligations [Abstract]
Debt Disclosure [Text Block]	DEBT OBLIGATIONS Panhandle’s 8.125% Senior Notes in the amount of $150 million matured on June 1, 2019 and were repaid with borrowings under an affiliate loan agreement. Compliance with Our Covenants The Company is in compliance with all requirements, tests, limitations, and covenants related to our credit agreements as of June 30, 2019.

Regulatory Matters, Commitments, Contingencies and Environmental (Notes)	6 Months Ended
	Jun. 30, 2019
Regulatory Matters, Commitments, Contingencies And Environmental Liabilities [Abstract]
Commitments and Contingencies Disclosure	REGULATORY MATTERS, COMMITMENTS, CONTINGENCIES AND ENVIRONMENTAL LIABILITIES Contingent Residual Support Agreement with ETO Under a contingent residual support agreement with ETO and Citrus ETO Finance LLC, the Company provides contingent, residual support to Citrus ETO Finance LLC (on a non-recourse basis to the Company) with respect to Citrus ETO Finance LLC’s obligations to ETO to support the payment of $2 billion in principal amount of senior notes issued by ETO on January 17, 2012. FERC Proceedings By order issued January 16, 2019, the FERC initiated a review of PEPL’s existing rates pursuant to Section 5 of the Natural Gas Act to determine whether the rates currently charged by PEPL are just and reasonable and set the matter for hearing. PEPL filed a cost and revenue study on April 1, 2019. An initial decision is expected to be issued in the first quarter of 2020. By order issued February 19, 2019, the FERC initiated a review of Southwest Gas’s existing rates pursuant to Section 5 of the Natural Gas Act to determine whether the rates currently charged by Southwest Gas are just and reasonable and set the matter for hearing. Southwest Gas filed a cost and revenue study on May 6, 2019. On July 10, 2019, Southwest Gas Storage Company filed an Offer of Settlement in this Section 5 proceeding, which settlement was supported or not opposed by Commission Trial Staff and all active parties. In addition, on November 30, 2018, Sea Robin filed a rate case pursuant to Section 4 of the Natural Gas Act. On July 22, 2019, Sea Robin filed an Offer of Settlement in this Section 4 proceeding, which settlement was supported or not opposed by Commission Trial Staff and all active parties. Environmental Matters The Company’s operations are subject to federal, state and local laws, rules and regulations regarding water quality, hazardous and solid waste management, air quality control and other environmental matters. These laws, rules and regulations require the Company to conduct its operations in a specified manner and to obtain and comply with a wide variety of environmental regulations, licenses, permits, inspections and other approvals. Failure to comply with environmental laws, rules and regulations may expose the Company to significant fines, penalties and/or interruptions in operations. The Company’s environmental policies and procedures are designed to achieve compliance with such applicable laws and regulations. These evolving laws and regulations and claims for damages to property, employees, other persons and the environment resulting from current or past operations may result in significant expenditures and liabilities in the future. The Company engages in a process of updating and revising its procedures for the ongoing evaluation of its operations to identify potential environmental exposures and enhance compliance with regulatory requirements. The Company is responsible for environmental remediation at certain sites on its natural gas transmission systems for contamination resulting from the past use of lubricants containing PCBs in compressed air systems; the past use of paints containing PCBs; and the prior use of wastewater collection facilities and other on-site disposal areas. The Company has implemented a program to remediate such contamination. The primary remaining remediation activity on the Company’s systems is associated with past use of paints containing PCBs or PCB impacts to equipment surfaces and to a building at one location. The PCB assessments are ongoing and the related estimated remediation costs are subject to further change. Other remediation typically involves the management of contaminated soils and may involve remediation of groundwater. Activities vary with site conditions and locations, the extent and nature of the contamination, remedial requirements, complexity and sharing of responsibility. The ultimate liability and total costs associated with these sites will depend upon many factors. If remediation activities involve statutory joint and several liability provisions, strict liability, or cost recovery or contribution actions, the Company could potentially be held responsible for contamination caused by other parties. In some instances, the Company may share liability associated with contamination with other potentially responsible parties. The Company may also benefit from contractual indemnities that cover some or all of the cleanup costs. These sites are generally managed in the normal course of business or operations. The Company’s environmental remediation activities are undertaken in cooperation with and under the oversight of appropriate regulatory agencies, enabling the Company under certain circumstances to take advantage of various voluntary cleanup programs in order to perform the remediation in the most effective and efficient manner. The Company’s consolidated balance sheets reflected $2 million in non-current liabilities as of June 30, 2019 and December 31, 2018 to cover environmental remediation actions where management believes a loss is probable and reasonably estimable. The Company is not able to estimate the possible loss or range of loss in excess of amounts accrued. The Company does not have any material environmental remediation matters assessed as reasonably possible. Liabilities for Litigation and Other Claims The Company records accrued liabilities for litigation and other claim costs when management believes a loss is probable and reasonably estimable. When management believes there is at least a reasonable possibility that a material loss or an additional material loss may have been incurred, the Company discloses (i) an estimate of the possible loss or range of loss in excess of the amount accrued; or (ii) a statement that such an estimate cannot be made. As of June 30, 2019 and December 31, 2018, the Company has litigation and other claim-related accrued liabilities of $19 million and $20 million, respectively, included in other non-current liabilities on the consolidated balance sheets. The Company does not have any material litigation or other claim contingency matters assessed as probable or reasonably possible that would require disclosure in the financial statements. Other Commitments and Contingencies The Company is subject to the laws and regulations of states and other jurisdictions concerning the identification, reporting and escheatment (the transfer of property to the state) of unclaimed or abandoned funds, and is subject to audit and examination for compliance with these requirements. The Company is currently being examined by a third party auditor on behalf of nine states for compliance with unclaimed property laws.

LEASES (Notes)

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Lessee, Operating Leases [Text Block]

LEASES

The Company leases office space, land, and equipment under non-cancelable operating leases whose initial terms are typically 5 to 10 years, with some real estate leases having terms of 30 years or more, along with options that permit renewals for additional periods. At contract inception, we determine if the arrangement is a lease or contains an embedded lease and review the facts and circumstances of the arrangement to classify lease assets as operating or finance leases under Topic 842.

At present, the majority of the Company’s active leases are classified as operating in accordance with Topic 842. Balances related to operating leases are included in operating lease ROU assets, other current liabilities and operating lease liabilities in our consolidated balance sheet. Finance leases represent a small portion of the active lease agreements and are included in property and equipment, other current liabilities, and other long-term liabilities in our consolidated balance sheet. The ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation of the Company to make minimum lease payments arising from the lease for the duration of the lease term.

Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to 20 years or greater. The exercise of lease renewal options is typically at the sole discretion of the Company, and lease extensions are evaluated on a lease-by-lease basis. Leases containing early termination clauses typically require the agreement of both parties to the lease. At the inception of a lease, all renewal options reasonably certain to be exercised are considered when determining the lease term. Presently, the Company does not have leases that include options to purchase or automatic transfer of ownership

of the leased property to the Company. The depreciable life of lease assets and leasehold improvements are limited by the expected lease term.

To determine the present value of future minimum lease payments, we use the implicit rate when readily determinable. Presently, since many of our leases do not provide an implicit rate, the Company applies its incremental borrowing rate based on the information available at the lease commencement date, to determine the present value of minimum lease payments. The operating and finance lease ROU assets include any lease payments made and exclude lease incentives.

Minimum rent payments are expensed on a straight-line basis over the term of the lease. In addition, some leases require additional contingent or variable lease payments, which are based on the factors specific to the individual agreement. Variable lease payments the Company is typically responsible for include payment of real estate taxes, maintenance expenses and insurance.

For short-term leases (leases that have term of twelve months or less upon commencement), lease payments are recognized on a straight-line basis and no ROU assets are recorded.

For the six months ended June 30, 2019, the Company recognized $2 million of short term lease cost, which is reflected in operating and maintenance in the accompanying consolidated statement of operations.

The weighted average remaining lease terms and weighted average discount rate as of June 30, 2019 were as follows:



	June 30, 2019
Weighted-average remaining lease term (years)
Operating leases	13
Weighted-average discount rate (%)
Operating leases	4	%

Maturities of operating lease liabilities as of June 30, 2019 are as follows:



	Operating leases
2019 (remainder)	$	—
2020	1
2021	—
2022	1
2023	1
Thereafter	4
Total lease payments	7
Less: present value discount	2
Present value of lease liabilities	$	5

REVENUE (Notes)

6 Months Ended

Jun. 30, 2019

Revenues [Abstract]

Revenue from Contract with Customer [Text Block]

REVENUE

Contract Balances with Customers

The Company satisfies its obligations by transferring goods or services in exchange for consideration from customers. The timing of performance may differ from the timing the associated consideration is paid to or received from the customer, thus resulting in the recognition of a contract asset or a contract liability.

The Company recognizes a contract asset when making upfront consideration payments to certain customers or when providing services to customers prior to the time at which the Company is contractually allowed to bill for such services. As of June 30, 2019, no contract assets have been recognized.

The Company recognizes a contract liability if the customer's payment of consideration precedes the Company’s fulfillment of the performance obligations. As of June 30, 2019, no contract liabilities have been recognized.

Performance Obligation

At contract inception, the Company assesses the goods and services promised in its contracts with customers and identifies a performance obligation for each promise to transfer a good or service (or bundle of goods or services) that is distinct. To identify the performance obligations, the Company considers all the goods or services promised in the contract, whether explicitly stated or implied based on customary business practices. For a contract that has more than one performance obligation, the Company allocates the total expected contract consideration to each distinct performance obligation based on a standalone-selling price basis. Revenue is recognized when (or as) the performance obligations are satisfied, that is, when the customer obtains control of the good or service. Certain of our contracts contain variable components, which, when combined with the fixed component are considered a single performance obligation. For these types of contracts, only the fixed component of the contracts are included in the table below.

As of June 30, 2019, the aggregate amount of transaction price allocated to unsatisfied (or partially satisfied) performance obligations is approximately $2.74 billion, and the Company expects to recognize this amount as revenue within the time bands illustrated below:



	Years Ending December 31,
	2019 (remainder)		2020		2021		Thereafter		Total
Revenue expected to be recognized on contracts with customers existing as of June 30, 2019	$	223	$	381	$	311	$	1,828	$	2,743

OPERATIONS AND ORGANIZATION (Policies)	6 Months Ended
OPERATIONS AND ORGANIZATION (Policies)	Jun. 30, 2019
Accounting Policies [Abstract]
Basis of Presentation and Significant Accounting Policies [Text Block]	Basis of Presentation The unaudited financial information included in this Form 10-Q has been prepared on the same basis as the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. In the opinion of the Company’s management, such financial information reflects all adjustments necessary for a fair presentation of the financial position and the results of operations for such interim periods in accordance with GAAP. All intercompany items and transactions have been eliminated in consolidation. Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with GAAP have been omitted pursuant to the rules and regulations of the SEC.
Use of Estimates, Policy [Policy Text Block]	Use of Estimates The unaudited consolidated financial statements have been prepared in conformity with GAAP, which includes the use of estimates and assumptions made by management that affect the reported amounts of assets, liabilities, revenues, expenses and disclosure of contingent assets and liabilities that exist at the date of the consolidated financial statements. Although these estimates are based on management’s available knowledge of current and expected future events, actual results could be different from those estimates.
New Accounting Pronouncements, Policy [Policy Text Block]	Change in Accounting Policy Adoption of Lease Accounting Standard In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-02, Leases (Topic 842), which has amended the FASB Accounting Standards Codification (“ASC”) and introduced Topic 842, Leases. On January 1, 2019, the Company has adopted Topic 842, which is effective for interim and annual reporting periods beginning on or after December 15, 2018. Topic 842 requires entities to recognize lease assets and liabilities on the balance sheet for all leases with a term of more than one year, including operating leases, which historically were not recorded on the balance sheet in accordance with the prior standard. To adopt Topic 842, the Company recognized a cumulative catch-up adjustment to the opening balance sheet as of January 1, 2019 related to certain leases that existed as of that date. As permitted, we have not retrospectively modified our consolidated financial statements for comparative purposes. The adoption of the standard had a material impact on our consolidated balance sheet, but did not have an impact on our consolidated statements of operations, comprehensive income or cash flows. As a result of adoption, we have recorded additional net right-of-use (“ROU”) lease assets and lease liabilities of approximately $6 million and $6 million, respectively, as of January 1, 2019. In addition, we have updated our business processes, systems, and internal controls to support the on-going reporting requirements under the new standard. To adopt Topic 842, the Company elected the package of practical expedients permitted under the transition guidance within the standard. The expedient package allowed us not to reassess whether existing contracts contained a lease, the lease classification of existing leases and initial direct cost for existing leases. In addition to the package of practical expedients, the Company has elected not to capitalize amounts pertaining to leases with terms less than twelve months, to use the portfolio approach to determine discount rates, not to separate non-lease components from lease components and not to apply the use of hindsight to the active lease population.

LEASES (Policies)	6 Months Ended
LEASES (Policies)	Jun. 30, 2019
Leases [Abstract]
Lessee, Leases [Policy Text Block]	The Company leases office space, land, and equipment under non-cancelable operating leases whose initial terms are typically 5 to 10 years, with some real estate leases having terms of 30 years or more, along with options that permit renewals for additional periods. At contract inception, we determine if the arrangement is a lease or contains an embedded lease and review the facts and circumstances of the arrangement to classify lease assets as operating or finance leases under Topic 842. At present, the majority of the Company’s active leases are classified as operating in accordance with Topic 842. Balances related to operating leases are included in operating lease ROU assets, other current liabilities and operating lease liabilities in our consolidated balance sheet. Finance leases represent a small portion of the active lease agreements and are included in property and equipment, other current liabilities, and other long-term liabilities in our consolidated balance sheet. The ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation of the Company to make minimum lease payments arising from the lease for the duration of the lease term. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to 20 years or greater. The exercise of lease renewal options is typically at the sole discretion of the Company, and lease extensions are evaluated on a lease-by-lease basis. Leases containing early termination clauses typically require the agreement of both parties to the lease. At the inception of a lease, all renewal options reasonably certain to be exercised are considered when determining the lease term. Presently, the Company does not have leases that include options to purchase or automatic transfer of ownership of the leased property to the Company. The depreciable life of lease assets and leasehold improvements are limited by the expected lease term. To determine the present value of future minimum lease payments, we use the implicit rate when readily determinable. Presently, since many of our leases do not provide an implicit rate, the Company applies its incremental borrowing rate based on the information available at the lease commencement date, to determine the present value of minimum lease payments. The operating and finance lease ROU assets include any lease payments made and exclude lease incentives. Minimum rent payments are expensed on a straight-line basis over the term of the lease. In addition, some leases require additional contingent or variable lease payments, which are based on the factors specific to the individual agreement. Variable lease payments the Company is typically responsible for include payment of real estate taxes, maintenance expenses and insurance. For short-term leases (leases that have term of twelve months or less upon commencement), lease payments are recognized on a straight-line basis and no ROU assets are recorded.

REVENUE (Policies)	6 Months Ended
REVENUE (Policies)	Jun. 30, 2019
Revenue from Contract with Customer [Abstract]
Revenue from Contract with Customer [Policy Text Block]	Contract Balances with Customers The Company satisfies its obligations by transferring goods or services in exchange for consideration from customers. The timing of performance may differ from the timing the associated consideration is paid to or received from the customer, thus resulting in the recognition of a contract asset or a contract liability. The Company recognizes a contract asset when making upfront consideration payments to certain customers or when providing services to customers prior to the time at which the Company is contractually allowed to bill for such services. As of June 30, 2019, no contract assets have been recognized. The Company recognizes a contract liability if the customer's payment of consideration precedes the Company’s fulfillment of the performance obligations. As of June 30, 2019, no contract liabilities have been recognized. Performance Obligation At contract inception, the Company assesses the goods and services promised in its contracts with customers and identifies a performance obligation for each promise to transfer a good or service (or bundle of goods or services) that is distinct. To identify the performance obligations, the Company considers all the goods or services promised in the contract, whether explicitly stated or implied based on customary business practices. For a contract that has more than one performance obligation, the Company allocates the total expected contract consideration to each distinct performance obligation based on a standalone-selling price basis. Revenue is recognized when (or as) the performance obligations are satisfied, that is, when the customer obtains control of the good or service. Certain of our contracts contain variable components, which, when combined with the fixed component are considered a single performance obligation. For these types of contracts, only the fixed component of the contracts are included in the table below.

OPERATIONS AND ORGANIZATION (Tables)

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]

Cumulative-effect adjustments made to the opening balance sheet at January 1, 2019 were as follows:



	Balance at December 31, 2018, as previously reported		Adjustments due to Topic 842 (Leases)		Balance at January 1, 2019
Assets:
Operating lease right-of-use assets	$	—	$	6	$	6
Liabilities:
Non-current operating lease liabilities	—		6		6

(Tables)

6 Months Ended

Jun. 30, 2019

The following table provides a summary of the related party activity included in our consolidated statements of operations:



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Operating revenues	$	24	$	24	$	48	$	47
Operating and maintenance	1		1		2		2
General and administrative	5		5		9		11
Interest expense — related company	5		2		9		3

LEASES (Tables)

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Lease, Cost [Table Text Block]

Lessee, Operating Lease, Liability, Maturity [Table Text Block]

The weighted average remaining lease terms and weighted average discount rate as of June 30, 2019 were as follows:



	June 30, 2019
Weighted-average remaining lease term (years)
Operating leases	13
Weighted-average discount rate (%)
Operating leases	4	%

Maturities of operating lease liabilities as of June 30, 2019 are as follows:



	Operating leases
2019 (remainder)	$	—
2020	1
2021	—
2022	1
2023	1
Thereafter	4
Total lease payments	7
Less: present value discount	2
Present value of lease liabilities	$	5

REVENUE (Tables)

6 Months Ended

Jun. 30, 2019

Revenues [Abstract]

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block]



	Years Ending December 31,
	2019 (remainder)		2020		2021		Thereafter		Total
Revenue expected to be recognized on contracts with customers existing as of June 30, 2019	$	223	$	381	$	311	$	1,828	$	2,743

Operations and Organization (Details) - USD ($) $ in Millions	1 Months Ended	6 Months Ended
	Jul. 31, 2019	Jun. 30, 2018	Jun. 30, 2019	Jan. 01, 2019
Description of the Business
Operating Lease, Liability			$ 5	$ 6
Accounting Standards Update 2016-02 [Member]
Description of the Business
Lease, Right of Use Asset, Net				$ 6
Panhandle [Member]
Description of the Business
General partnership interest		1.00%
Limited partnership interest		99.00%
Subsequent Event [Member]
Description of the Business
Unrecognized Tax Benefits, Period Increase (Decrease)	$ (444)

OPERATIONS AND ORGANIZATION Schedule of Leases (Details) - USD ($) $ in Millions	Jun. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
Operating Lease, Right-of-Use Asset	$ 5	$ 6	$ 0
Operating Lease, Liability	5	6
Operating Lease, Liability, Noncurrent	$ 5	6	$ 0
Accounting Standards Update 2016-02 [Member]
Operating Lease, Right-of-Use Asset		6
Operating Lease, Liability, Noncurrent		$ 6

Related Party Transactions (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Related Party Transactions [Abstract]
Operating revenues	$ 24	$ 24	$ 48	$ 47
Operating and maintenance	1	1	2	2
General and administrative	5	5	9	11
Interest Expense, Related Party	$ 5	$ 2	$ 9	$ 3

Related Party (Narrative) (Details) - USD ($) $ in Millions	6 Months Ended
Related Party (Narrative) (Details) - USD ($) $ in Millions	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Related Party Transaction [Line Items]
Note payable to related company	$ 421		$ 356
Deemed contribution from partners	$ 0	$ 11
ETO [Member]
Related Party Transaction [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	5.411%

FAIR VALUE MEASURES (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Investments, Fair Value Disclosure	$ 29	$ 26
Debt Instrument, Fair Value Disclosure	250	392
Equity Securities [Member]
Investments, Fair Value Disclosure	19	17
Fixed Income Securities [Member]
Investments, Fair Value Disclosure	$ 10	$ 9

DEBT OBLIGATIONS (Details) $ in Millions	6 Months Ended
DEBT OBLIGATIONS (Details) $ in Millions	Jun. 30, 2019 USD ($)
Repayments of Senior Debt	$ 150

Regulatory Matters, Commitments, Contingencies and Environmental (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018
Regulatory Matters, Commitments, Contingencies And Environmental Liabilities [Abstract]
Contingent Residual Support Agreement, Amount	$ 2,000
Accrued Environmental Loss Contingencies, Noncurrent		$ 2	$ 2
Estimated litigation liability	$ 19	$ 20

LEASES (Details) - USD ($) $ in Millions	6 Months Ended
LEASES (Details) - USD ($) $ in Millions	Jun. 30, 2019	Jun. 30, 2018	Jan. 01, 2019	Dec. 31, 2018
Lessee, Lease, Description [Line Items]
Operating Lease, Right-of-Use Asset	$ 5		$ 6	$ 0
Operating Lease, Weighted Average Remaining Lease Term	13 years
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year	$ 0
Lessee, Operating Lease, Liability, Payments, Due Year Two	1
Lessee, Operating Lease, Liability, Payments, Due Year Three	0
Lessee, Operating Lease, Liability, Payments, Due Year Four	1
Lessee, Operating Lease, Liability, Payments, Due Year Five	1
Lessor, Operating Lease, Payments to be Received, Thereafter	4
Lessee, Operating Lease, Liability, Payments, Due	7
Lessee, Operating Lease, Liability, Undiscounted Excess Amount	2
Operating Lease, Liability	5		6
Net Cash Provided by (Used in) Operating Activities	101	$ 145
Net Cash Provided by (Used in) Financing Activities	$ (85)	$ (110)
Operating Lease, Weighted Average Discount Rate, Percent	4.00%
Short-term Lease, Cost	$ 2
Operating Lease, Liability, Noncurrent	$ 5		$ 6	$ 0
Equipment [Member] \| Minimum [Member]
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Term of Contract	5 years
Equipment [Member] \| Maximum [Member]
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Term of Contract	10 years
Real Estate [Member]
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Term of Contract	30 years

REVENUE (Details)	Jun. 30, 2019 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Contract with Customer, Asset, Gross	$ 0
Contract with Customer, Liability	0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-12-31
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	223,000,000
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-12-31
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	381,000,000
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-12-31
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	311,000,000
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-12-31
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	1,828,000,000
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	$ 2,743,000,000