HOUSTON, July 14, 2005 /PRNewswire-FirstCall via COMTEX/ -- Southern Natural Gas (SNG), a wholly owned subsidiary of El Paso Corporation (NYSE: EP), announced today the Federal Energy Regulatory Commission (FERC) has approved a settlement of SNG's general rate case that was filed August 31, 2004. The settlement, which was approved by the FERC without condition or modification, resolves all of the issues set for hearing in the proceeding.

"We're pleased to have this rate case settled. Not only does the settlement benefit SNG, but it also benefits our customers by ensuring rate certainty for the next four to five years," said Jim Yardley, president of Southern Natural Gas. "Further, it provides extensions on the vast majority of our firm transportation contracts through August 31, 2010."

El Paso Corporation provides natural gas and related energy products in a safe, efficient, and dependable manner. The company owns North America's largest natural gas pipeline system and one of North America's largest independent natural gas producers. For more information, visit http://www.elpaso.com .

Cautionary Statement Regarding Forward-Looking Statements

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, including, without limitation, general economic conditions in geographic regions or markets served by El Paso Corporation and its affiliates, or where operations of the company and its affiliates are located; the uncertainties associated with governmental regulation; competition, and other factors described in the company's (and its affiliates') Securities and Exchange Commission filings. While the company makes these statements and projections in good faith, neither the company nor its management can guarantee that anticipated future results will be achieved. Reference must be made to those filings for additional important factors that may affect actual results. The company assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made by the company, whether as a result of new information, future events, or otherwise.

SOURCE El Paso Corporation

Investor and Public Relations, Bruce L. Connery, Vice President, 1-713-420-5855, or fax, 1-713-420-4417
or
Media Relations, Aaron Woods, Manager, 1- 713-420-6828, or fax, 1-713-420-6341
Both of El Paso Corporation

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