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EPE ANNOUNCES 1992 SECOND QUARTER FINANCIAL RESULTS

 EPE ANNOUNCES 1992 SECOND QUARTER FINANCIAL RESULTS
 EL PASO, Texas, Aug. 3 /PRNewswire/ -- El Paso Electric Company


(NASDAQ: ELPAQ) today reported a net loss applicable to common stock of $9.6 million ($.27 per share) for the three months ended June 30, 1992, compared to a net loss of $3.1 million ($.09 per share) for the same period in 1991. The net loss for the six months ended June 30, 1992, of $15.4 million ($.43 per share) was up from the net loss reported for the 1991 six-month period of $8.1 million ($.23 per share).
 The loss in 1992 is primarily attributable to: (i) cash rates that are not sufficient to recover the cost of providing service plus a return on investment; (ii) a one-time write-off of debt issue costs in the second quarter of 1992 in the amount of $8.8 million, net of tax; and (iii) the recognition of approximately $5.8 million of net reorganization expenses in connection with the company's bankruptcy proceedings. The loss was mitigated by: (i) continued increases in kilowatt-hour (KWH) sales; (ii) a surcharge related to recovery of certain regulatory costs that previously have been expensed; and (iii) the discontinuation of accruing interest on obligations not secured by first or second mortgages and dividends on preferred stock beginning in January 1992.
 Operating revenues increased in 1992 primarily due to: (i) cash rate increases of approximately $30 million and $7 million annually, effective August 1991 and September 1991, respectively, which were granted by the Public Utility Commission of Texas; (ii) an $11.9 million surcharge related to recovery of regulatory expenses; and (iii) increases in total system KWH sales of 14.4 percent for the six months ended June 30, 1992, compared to the same period in 199.
 The company achieved record peak demand in 1992, recording an all- time total system peak demand of 1,302 megawatts (MW) on July 7, 1992, which was a 14 percent increase over the prior record peak of 1,142 MW in 1991, primarily related to additional sales to Comision Federal de Electricidad, the national electric utility of Mexico, and the Imperial Irrigation District, a wholesale customer based in Southern California. The company's 1992 native system peak demand of 974 MW, which was also a new record, was a 5 percent increase from the previous record of 929 MW.
 El Paso Electric Company, which filed a voluntary petition under Chapter 11 of the United States Bankruptcy Code on Jan. 8, 1992, is an electric utility serving approximately 250,000 customers in El Paso, Texas, and an area of the Rio Grande Valley in West Texas and Southern New Mexico. The company currently owns or leases a 15.8 percent interest in each of the three 1,270-megawatt nuclear units at the Palo Verde Nuclear Generating Station located near Phoenix, Ariz.
 EL PASO ELECTRIC COMPANY
 Results of Operations (Unaudited)
 (In thousands except per share data)
 Three months ended June 30 1992 1991
 Operating revenues $ 124,762 $106,911
 Operating expenses 104,654 95,096
 Income (loss) before reorganization
 items (A) 1,142 (795)
 Net loss (9,589) (795)
 Net loss applicable to common stock $ (9,589) $ (3,069)
 Weighted average number of common
 shares outstanding 35,526 35,508
 Net loss per weighted average
 share of common stock $ (0.27) $ (0.09)
 Six months ended June 30 1992 1991
 Operating revenues $ 246,747 $209,283
 Operating expenses 208,692 190,677
 Loss before reorganization items (A) (844) (3,572)
 Net loss (15,440) (3,572)
 Net loss applicable to common stock $ (15,440) $ (8,119)
 Weighted average number of common
 shares outstanding 35,526 35,506
 Net loss per weighted average
 share of common stock $ (0.43) $ (0.23)
 (A) -- The company incurred reorganization costs resulting from the ongoing bankruptcy proceedings. Pursuant to the provisions of Statement of Position 90-7 "Financial Reporting by Entities in Reorganization Under the Bankruptcy Code," the company incurred a one-time write-off of debt issue costs in the second quarter of 1992 in the pre-tax amount of $13.3 million. Such costs are partially offset by interest earned on cash accumulating as a result of the bankruptcy proceedings.
 -0- 8/3/92
 /CONTACT: John Droubay of El Paso Electric Company, 915-543-5710/
 (ELPAQ) CO: El Paso Electric Company ST: Texas IN: UTI SU: ERN


GK -- NY061 -- 6238 08/03/92 14:25 EDT
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Date:Aug 3, 1992
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