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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report: March 16, 2000
(Date of earliest event reported: March 10, 2000)
EL PASO ENERGY CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 001-14365 76-0568816
(State or other jurisdiction (Commission File Number) I.R.S. Employer
of incorporation) Identification Number)
EL PASO ENERGY BUILDING
1001 LOUISIANA STREET
HOUSTON, TEXAS 77002
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (713) 420-2131
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ITEM 5. OTHER EVENTS.
On March 10, 2000, Southern Natural Gas Company, a subsidiary of El Paso
Energy Corporation, announced that it had filed a comprehensive settlement
agreement with the Federal Energy Regulatory Commission to settle all issues
related to its current rate proceeding. A press release announcing the
settlement was issued on March 14, 2000, a copy of which is attached as Exhibit
99.1 and incorporated herein by reference.
On March 14, 2000, El Paso Energy completed its sale of East Tennessee
Natural Gas Company to Duke Energy Corp. for $386.3 million. On March 15, 2000,
El Paso Energy completed its sale of Sea Robin Pipeline Company to CMS Energy
Corporation for $72 million. The sales were completed to comply with a Federal
Trade Commission order related to El Paso Energy's merger with Sonat Inc.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
EXHIBIT NO. DESCRIPTION
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99.1 Press Release dated March 14, 2000
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: March 16, 2000 El Paso Energy Corporation
By: /s/ JEFFERY I. BEASON
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Name: Jeffery I. Beason
Title: Senior Vice President and
Controller (Chief Accounting
Officer)
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EXHIBIT INDEX
Exhibit No. Description
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99.1 Press Release dated March 14, 2000
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EXHIBIT 99.1
SOUTHERN NATURAL GAS COMPANY FILES RATE SETTLEMENT THAT EXTENDS FIRM
TRANSPORTATION CONTRACTS TO 2005
HOUSTON, Texas, March 14, 2000 -- Southern Natural Gas Company, a business unit
of El Paso Energy Corporation (NYSE: EPG), today announced that it filed
a comprehensive settlement agreement with the Federal Energy Regulatory
Commission (FERC) on March 10, 2000. If approved by FERC, the settlement will
resolve all issues in Southern Natural's current rate proceeding.
As part of the settlement, all of Southern Natural's firm transportation and
storage contracts that end between now and 2003 will be extended until 2005 or
later. Substantially all of the extended contracts will be at or near maximum
tariff rates. In addition, South Georgia Natural Gas Company, a separate
910-mile interstate pipeline owned by Southern Natural Gas Company, will be
merged into the Southern Natural system following FERC authorization.
The settlement provides Southern Natural's customers reduced rates effective
March 1, 2000 as well as a four-year moratorium on future rate increases by
Southern Natural except in certain limited circumstances. It also requires
Southern Natural to file a new rate case with the FERC to be effective no later
than March 2005.
"We are pleased to have been able to achieve an acceptable commercial resolution
with our customers that settles our rate proceeding and provides for immediate
rate reductions and significant extensions of contracts," said James C. Yardley,
president of Southern Natural Gas Company. "This settlement enables us to
continue our focus on providing operationally excellent service to our customers
and on growing Southern Natural's pipeline business."
The settlement is the result of extensive negotiations between Southern Natural
and its customers. Customers representing more than 95 percent of Southern
Natural's annual revenues already have advised the company that they intend to
support the settlement.
With over $16 billion in assets, El Paso Energy Corporation provides
comprehensive energy solutions through its strategic business units: Tennessee
Gas Pipeline Company, El Paso Natural Gas Company, Southern Natural Gas Company,
El Paso Merchant Energy Company, El Paso Energy International Company, El Paso
Field Services Company, and El Paso Production Company. The company owns North
America's largest natural gas pipeline system, both in terms of throughput and
miles of pipeline, and has operations in natural gas transmission, merchant
energy services, power generation, international project development, gas
gathering and processing, and gas and oil production. On January 18, 2000, El
Paso Energy announced that it has agreed to merge with The Coastal Corporation
in a deal valued at $16 billion, including approximately $6 billion of assumed
debt and preferred equity. Visit El Paso Energy's web site at www.epenergy.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. 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.
