HOUSTON, TEXAS, May 2, 2001—El Paso Power Finance L.L.C., an indirect subsidiary of El Paso Corporation (NYSE:EPG), has arranged debt financing that will enable Madera Power L.L.C. to acquire and refurbish an existing 25-megawatt (net) power plant located near Fresno, California.

The power generation facility, which makes use of 53 different forms of nearby biomass materials as environmentally friendly fuel sources, is expected to be operational in June 2001 in time for the peak load demand expected during the summer season. Biomass materials typically include grape by-products, wood chips, and tree trimmings that would otherwise be disposed of in local landfills. The facility began operations in 1990 but has been idle for the last five years.

Power generated by the Madera plant will be sold either in the wholesale merchant market or under a long-term contract arrangement. The project has attracted considerable interest due to its June operation date, and the company is currently in negotiations with several parties to purchase 100 percent of its power generation.

"El Paso Power Finance is pleased to participate in such an important and innovative renewable energy project," said Clark C. Smith, president of El Paso North America. "The Madera project is one of the few new sources of electric generating capacity that can help meet Governor Davis' goal of adding 5,000 megawatts to the California power grid by the summer of 2001, and it will do so in a way that is beneficial to the environment. This is truly a win-win project for all concerned."

El Paso Corporation, the largest and most broadly based natural gas company in the world, spans the energy value chain from wellhead to electron. With an enterprise value in excess of $50 billion, El Paso is a leader in every phase of the natural gas industry. The company owns and operates a significant portion of the North American natural gas delivery grid, operates the fastest growing, most sophisticated energy merchant group, and is the nation's third largest natural gas producer. El Paso, a leader in risk management techniques, is focused on maximizing shareholder value, transforming existing markets, and speeding the development of new markets. 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 actual results.