News Release
Jan. 27, 1998

TEPPCO REFINANCES DEBT

HOUSTON, January 27 -- TE Products Pipeline Company, Limited Partnership (TEPPCO), the operating partnership of TEPPCO Partners, L.P. (NYSE: TPP), today closed an offering by TEPPCO for $390 million principal amount of senior unsecured debt in two issues. The offering was underwritten by Merrill Lynch & Co. and Goldman, Sachs & Co.

Sold in this offering were $180 million of 6.45 % Series A Senior Notes with a maturity date of January 15, 2008, and $210 million of 7.51 % Series B Senior Notes with a maturity date of January 15, 2028, subject to redemption after January 15, 2008, at the election of TEPPCO. Interest on the notes will be paid semiannually in arrears on January 15 and July 15 of each year, beginning July 15, 1998.

The net proceeds from the sale of the notes amounted to approximately $387 million and was used to repay TEPPCO’s First Mortgage Notes of approximately $327 million, including a redemption premium of approximately $70 million, which will be accounted for as an extraordinary charge for the quarter ending March 31, 1998.

The refinancing will result in improved income and cash flow for TEPPCO through TE Products Pipeline Company, Limited Partnership, the operating partnership of TEPPCO Partners, L.P., which is a publicly traded master limited partnership, is one of the largest common carrier pipelines of refined petroleum products and liquefied petroleum gases in the United States.

Contact: Eric W. Thode
Phone: 713 759-3635
24 Hour Phone: 704 382-8333
Email: media_relations@duke-energy.com