HOUSTON, May 30, 2001 — El Paso Merchant Energy, a subsidiary of El Paso Corporation, announced today that it is moving forward with plans to build a natural gas-fired, simple-cycle power plant in Augusta Township, Michigan. The power generation facility will be managed by Augusta Park Energy, LLC, an affiliate of El Paso Merchant Energy.

The 340-megawatt peaking facility will supply electricity to the wholesale market during high demand periods to supplement the power generation of existing base load facilities. The Augusta Park complex will be built on approximately 30 acres with an additional 110-acre buffer zone surrounding the facility. The plant's expected commercial in-service date is May 2003.

"The demand for power in this region will continue to increase with projected growth in residential and commercial markets over the next 10 years," said Clark C. Smith, president of El Paso North America. "This project will enable Augusta Township to meet their power requirements, and we appreciate the continuing cooperation and participation from community officials in developing this power facility."

Earlier this month, Augusta Park Energy filed an air permit application with the State of Michigan's Department of Environmental Quality. In addition to being fueled by clean-burning natural gas, the company plans to use modern equipment meeting the latest U.S. and Michigan environmental standards.

Augusta Park Energy is hosting a public open house on Wednesday, May 30 from 7 to 10 p.m. at Lincoln High School, 8970 Whittaker Road, Augusta Township, where company representatives will be available to answer questions about the project. In addition, exhibits of the turbine technology and artistic renderings of the proposed power plant will be available for viewing. The public may obtain further information by calling toll-free 1-866-683-5587. For more information about the proposal, visit the Augusta Park Energy Web site at www.elpaso.com/augusta.

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.