El Paso Corp. (ticker: EP, exchange: New York Stock Exchange (.N))
News Release -
Recent Industry Filings Confirm El Paso's Position That Sudden Increases in Demand-Not Market Manipulation-Caused Higher Natural Gas Prices in California
HOUSTON, TEXAS, August 1, 2001-Recent industry filings at
the Federal Energy Regulatory Commission (FERC) concerning capacity issues on
the El Paso Natural Gas pipeline substantiate El Paso Corporation's (NYSE:EPG)
position that the recent surge in demand both east and west of the California
border-not market manipulation-was the defining factor in high prices for
natural gas in the state. The demand clearly exceeded available pipeline
capacity of all pipelines serving Western markets.
These filings have been mischaracterized in the press. They do not address
any accusations of market manipulation by the pipeline or its merchant
affiliate. In fact, the filings involve a dispute between two groups of
customers, those within California and those east of the California border, over
how the existing pipeline capacity should be allocated.
El Paso Corporation is committed to meeting energy needs throughout North
America and the world with operations that span the energy value chain from
wellhead to electron. The company is focused on speeding the development of new
energy sources to address critical energy shortages across the globe. Visit El
Paso at www.elpaso.com.
This release includes forward-looking statements and projections, made
in reliance on the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. The company has made every reasonable effort to ensure that
the information and assumptions on which these statements and projections are
based are current, reasonable, and complete. However, a variety of factors could
cause actual results to differ materially from the projections, anticipated
results or other expectations expressed in this release. While the company makes
these statements and projections in good faith, neither the company nor its
management can guarantee that the anticipated future results will be achieved.
Reference should be made to the company's (and its affiliates') Securities and
Exchange Commission filings for additional important factors that may affect