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BANKRUPTCY COURT CONFIRMS EPE'S PROPOSED PLAN OF REORGANIZATION

 EL PASO, Texas, Dec. 6 /PRNewswire/ -- El Paso Electric Company ("EPE") (NASDAQ-NMS: ELPAQ) announced today that the United States Bankruptcy Court for the Western District of Texas, Austin Division, has confirmed the company's Third Amended Plan of Reorganization (the "Plan"), subject to entry of an appropriate court order tomorrow. The Plan proposes a reorganization wherein EPE would become a wholly-owned subsidiary of Central and South West Corporation ("CSW"), a public utility holding company based in Dallas.
 The Court's ruling, issued from the bench, culminated an afternoon of evidence and testimony in which it was revealed that at least 92 percent of each class of holders of claims or interests voted in favor of the company's Plan. Ninety-eight percent of EPE common shareholders also voted in favor of the Plan.
 "The Court's confirmation of our plan of reorganization is a major step toward EPE emerging from bankruptcy and returning to a healthy financial position," said David H. Wiggs Jr., chairman of the board, president and chief executive officer of El Paso Electric. "Throughout this process, our goal has been to achieve a solution that is fair and equitable for EPE's customers, creditors and shareholders. The Court's action reaffirms that this Plan will accomplish that goal."
 Completion of the merger still is subject to approval by numerous state and federal regulatory agencies, including the Public Utility Commission of Texas, the New Mexico Public Utility Commission, the Securities and Exchange Commission, the Federal Energy Regulatory Commission, and the Nuclear Regulatory Commission, among others. The company estimates it will take 18 to 24 months to obtain all necessary regulatory approvals.
 EPE, which filed a voluntary petition under Chapter 11 of the United States Bankruptcy Code on Jan. 8, 1992, is an electric utility serving approximately 258,000 customers in El Paso, Texas, and an area of the Rio Grande Valley in West Texas and Southern New Mexico, and to wholesale customers located in such diverse locations as Southern California and Mexico.
 -0- 12/6/93
 /CONTACT: Alan Lee Bunnell (media), corporate spokesperson, 915-543-5823, or John Droubay (financial analysts), treasurer, 915-543-5710, or Office of the Secretary (stockbrokers and shareholders), 800-592-1634 or 800-351-1621, all of El Paso Electric Company/
 (ELPAQ)


CO: El Paso Electric Company ST: Texas IN: UTI SU:

WB -- NY114 -- 1034 12/06/93 19:49 EST
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Publication:PR Newswire
Date:Dec 6, 1993
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