HOUSTON, TEXAS, March 12, 2001-El Paso Corporation (NYSE:EPG) announced today that the California Energy Commission granted the company approval to proceed with project development of Phase 1 of the United Golden Gate Power Project. The project, wholly owned by El Paso Corporation, is the first to be approved on a "fast track" under Assembly Bill 970, which was designed to expedite the permitting process associated with siting and implementing new power plants in California. The Commission's approval was conditioned on agreements to be ratified by the City and County of San Francisco regarding the project and site.

The United Golden Gate Power Project is a two-phase, gas-fired power generation project located at the San Francisco International Airport on a leasehold interest of United Airlines-a location on the power grid where there is a pressing need for new power supplies. The project is designed to provide, in Phase 1, critically needed peaking power for the San Francisco peninsula, and in Phase 2, efficient combined cycle power for the region.

"El Paso commends United Airlines and the San Francisco International Airport Authority for their farsighted recognition that an environmentally benign power project could be effectively sited on the airport grounds-perhaps the single best site for power generation in the entire San Francisco Bay area," said Clark C. Smith, president of El Paso North America. "This project represents a unique public-private partnership that has come together to help solve the Bay Area's and the entire state's electric power needs."

Phase 1, which was approved by the Commission, represents generation capability of up to 51 megawatts. Phase 2, which El Paso intends to move into the permitting stage as quickly as practical, is designed to generate more than ten times that amount of power. In total, the United Golden Gate Power Project will be able to supply the electrical needs of approximately 250,000 households.

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.