8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT PURSUANT TO SECTION 13 OR 15 (D)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):

February 19, 2003

El Paso Electric Company

(Exact name of registrant as specified in its charter)

Texas	0-296	74-0607870
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

Stanton Tower, 100 North Stanton, El Paso, Texas	79901
(Address of principal executive offices)	(Zip Code)

(915) 543-5711

(Registrant’s telephone number, including area code)

Item 5.    Other Events and Regulation FD Disclosure

El Paso Electric Company (the “Company”) issued a news release stating that it has received a letter from a shareholder requesting that the Company initiate a derivative action against its Board of Directors. A copy of the news release as issued by the Company is attached as an Exhibit.

INDEX TO EXHIBITS

Exhibit Number	Title
99.01—	News Release dated as of February 18, 2003, issued by El Paso Electric Company, disclosing request by a shareholder to initiate a derivative action.

SIGNATURES

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 thereunto duly authorized.

EL PASO ELECTRIC COMPANY
By:	/s/    Terry Bassham
	Terry Bassham Executive Vice President, Chief Financial and Administrative Officer (Duly Authorized Officer and Principal Financial Officer)

Dated:    February 19, 2003

EX-99.01

EXHIBIT 99.01

El Paso Electric [EL PASO LOGO]

NEWS RELEASE

For Immediate Release	Contact:
Date: February 18, 2003	Media	Analysts
	Teresa Souza	Cynthia Gamez
	915/543-5823	915/543-2213

EL PASO ELECTRIC REQUESTED TO CONDUCT INQUIRY

On February 10, 2003, El Paso Electric (NYSE: EE or the Company) received a letter initiating a legal proceeding known as a shareholder derivative action. The letter, written by a Pennsylvania law firm on behalf of the holder of approximately 200 shares of EE common stock (the shareholder), requests that EE commence a lawsuit against each member of the Board of Directors to recover damages allegedly sustained by EE as a result of alleged breaches of fiduciary duties by the Board.

The shareholder contends that from 1997 to 2002 the Board knowingly caused, or allowed, EE to participate in improper transactions with Enron Corporation and certain of its subsidiaries. The allegations appear to duplicate factual questions first raised by the Federal Energy Regulatory Commission (FERC) in an investigation of power markets in the Western United States during 2000 and 2001. The Company and the FERC Trial Staff reached a settlement of the FERC investigation which was announced on December 5, 2002. The Company has also reached a settlement with the principal intervenors in the FERC investigation, including the California Attorney General and the California Public Utility Commission. Each of these settlements is pending final FERC approval. In the settlements, EE has denied any violation of any statute or FERC rule in conducting its wholesale trading activities.

In accordance with Texas law, EE will conduct an independent inquiry to determine whether a lawsuit against the Board is in the best interest of the Company.

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El Paso Electric · P.O. Box 982 · El Paso, Texas 79960