HOUSTON, Dec. 27 /PRNewswire-FirstCall/ -- El Paso Corporation (NYSE: EP)
announced today that it has reached a settlement, which has received final
approval from the Maricopa County Superior Court, with the state of Arizona over
the state's pending litigation from the western energy crisis in 2000 and 2001. As part of the settlement, El Paso will provide grants totaling approximately
$3.4 million for various programs in Arizona. Included is funding for the
state's Low-Income Energy Assistance Program, which is designed to provide
targeted assistance to low- income Arizonans confronting high energy prices; a
grant for "Energy for Arizona in the 21st Century," a study conducted
by an independent organization selected by El Paso and the state to analyze ways
to diversify Arizona's energy supply portfolio and reduce its reliance on any
one gas supply basin; and funding for an emergency preparedness/consequence
management training and assistance program. The settlement also includes El Paso investing approximately $43 million for
capital projects designed to improve interstate pipeline service in Arizona and
conserve water in the state. El Paso also agrees to accelerate $30 million in
already-planned pipeline integrity expenditures. El Paso will seek recovery of
these capital and pipeline integrity program expenses in its FERC-approved
rates. "This settlement not only allows the company to eliminate the
uncertainty of pending litigation but also fosters a new and positive
relationship with the state of Arizona and its people," said James Cleary,
president of El Paso's Western Pipeline Group. "El Paso has delivered
natural gas to its Arizona customers for more than 50 years, and the settlement
bodes well for a mutually beneficial relationship with Arizona into the 21st
century." El Paso Corporation provides natural gas and related energy products in a
safe, efficient, 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, the ability to implement and achieve our objectives in the
long-range plan, including achieving our debt-reduction targets; the
uncertainties associated with governmental regulation; 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
Visit http://www.powermarketers.com/index.shtml for excellent coverage on your energy news front.