HOUSTON, TEXAS, MAY 30, 2000-El Paso Energy Foundation, the philanthropic arm of El Paso Energy Corporation (NYSE:EPG), announced today it is awarding college scholarships to approximately 175 Jefferson Davis High School graduating seniors. This represents 58% of the estimated graduating class. These students are receiving scholarships for successfully completing the requirements of the four-year El Paso Energy Foundation Scholarship Program, and they will be honored at a special awards ceremony Wednesday, May 31, at 6:30 p.m. at Jefferson Davis High School, located on Houston's near northside.

"We are proud to offer these students El Paso Energy Scholarships. We are not just investing in education, we are investing in the future of Houston and El Paso Energy," said William A. Wise, president and chief executive officer of El Paso Energy. "We place a high premium on dedication and perseverance, both of which these students have demonstrated."

Wise also said El Paso Energy is committed to bettering education for children through its participation in and funding of various education programs.

Houston Independent School District Superintendent Rod Paige said, "The El Paso Energy Scholarships offered to the students at Jefferson Davis High School are invaluable to help assure them of a bright future. The opportunity for college funds has given these students a goal to strive for, and now they can continue the quest for a higher education."

The El Paso Energy Foundation requires each student to complete several activities to receive a scholarship. Each student must attend at least two Jesse H. Jones Summer Academic Institute programs at the University of Houston-Downtown, take the PSAT, maintain a cumulative 2.5 grade-point average, and graduate in four years or less.

El Paso Energy began working with this year's graduating class as freshmen in 1996, when El Paso Energy moved its corporate headquarters to Houston. El Paso Energy recognizes Tenneco for initiating the scholarship program at Jefferson Davis High School, and more than 1,100 Jefferson Davis students received scholarships through the Tenneco program.

El Paso Energy also expresses its gratitude to its partners in the Jefferson Davis High School Scholarship program. These partners include Project GRAD, the University of Houston-Downtown, Communities in Schools, and the Houston Independent School District. The continued commitment to innovative education by all of these partners makes programs like this possible.

With over $16 billion in assets, El Paso Energy Corporation provides comprehensive energy solutions through its strategic business units: Tennessee Gas Pipeline Company, El Paso Natural Gas Company, Southern Natural Gas Company, El Paso Merchant Energy Company, El Paso Energy International Company, El Paso Field Services Company, and El Paso Production Company. The company owns North America's largest natural gas pipeline system, both in terms of throughput and miles of pipeline, and has operations in natural gas transmission, merchant energy services, power generation, international project development, gas gathering and processing, and gas and oil production. On May 5, the stockholders of both El Paso Energy and The Coastal Corporation overwhelmingly voted in favor of merging the two organizations. The combined company will have assets of $35 billion and be one of the world's leading integrated energy companies. The merger is expected to close in the fourth quarter of this year, concurrent with the completion of regulatory reviews. Visit El Paso Energy's web site at www.epenergy.com.