283677854

                                (CUSIP Number)                                

CUSIP No. 283677854

NAMES OF REPORTING PERSONS

I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

            Highfields Capital Management LP

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

(a)  ¨

(b)  ¨

SEC USE ONLY

CITIZENSHIP OR PLACE OF ORGANIZATION

            Delaware

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

  5.    SOLE VOTING POWER

                —0—

  6.    SHARED VOTING POWER

                —0—

  7.    SOLE DISPOSITIVE POWER

                —0—

  8.    SHARED DISPOSITIVE POWER

                —0—

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

            —0—

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)

¨

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9

            0%

TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

            PN

CUSIP No. 283677854

NAMES OF REPORTING PERSONS

I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

            Highfields GP LLC

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

(a)  ¨

(b)  ¨

SEC USE ONLY

CITIZENSHIP OR PLACE OF ORGANIZATION

            Delaware

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

  5.    SOLE VOTING POWER

                —0—

  6.    SHARED VOTING POWER

                —0—

  7.    SOLE DISPOSITIVE POWER

                —0—

  8.    SHARED DISPOSITIVE POWER

                —0—

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

            —0—

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)

¨

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9

            0%

TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

            OO

CUSIP No. 283677854

NAMES OF REPORTING PERSONS

I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

            Jonathon S. Jacobson

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

(a)  ¨

(b)  ¨

SEC USE ONLY

CITIZENSHIP OR PLACE OF ORGANIZATION

            United States

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

  5.    SOLE VOTING POWER

                —0—

  6.    SHARED VOTING POWER

                —0—

  7.    SOLE DISPOSITIVE POWER

                —0—

  8.    SHARED DISPOSITIVE POWER

                —0—

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

            —0—

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)

¨

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9

            0%

TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

            IN

CUSIP No. 283677854

NAMES OF REPORTING PERSONS

I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

            Richard L. Grubman

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

(a)  ¨

(b)  ¨

SEC USE ONLY

CITIZENSHIP OR PLACE OF ORGANIZATION

            United States

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

  5.    SOLE VOTING POWER

                —0—

  6.    SHARED VOTING POWER

                —0—

  7.    SOLE DISPOSITIVE POWER

                —0—

  8.    SHARED DISPOSITIVE POWER

                —0—

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

            —0—

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)

¨

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9

            0%

TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

            IN

1.NAMES OF REPORTING PERSONS

I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

            Highfields Capital Ltd.

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

(a)  ¨

(b)  ¨

SEC USE ONLY

CITIZENSHIP OR PLACE OF ORGANIZATION

            Cayman Islands, B.W.I.

  5.    SOLE VOTING POWER

  6.    SHARED VOTING POWER

                —0—

  7.    SOLE DISPOSITIVE POWER

                —0—

  8.    SHARED DISPOSITIVE POWER

                —0—

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

            —0—

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)

¨

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9

            0%

TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

            CO

CUSIP No. 283677854

Item 1

(a).

Name of Issuer:

El Paso Electric Company (the “Issuer”)

Item 1

(b).

Address of Issuer’s Principal Executive Offices:

Stanton Tower, 100 North Stanton, El Paso, Texas 79901

Item 2

(a).

Name of Person Filing:

This statement is being filed by the following persons with respect to the shares of Common Stock of the Issuer directly owned by Highfields Capital I LP (“Highfields I”), Highfields Capital II LP (“Highfields II”) and Highfields Capital Ltd. (collectively, the “Funds”):

(i)     Highfields Capital Management LP, a Delaware limited partnership (“Highfields Capital Management”) and investment manager to each of the Funds,

(ii)    Highfields GP LLC, a Delaware limited liability company (“Highfields GP”) and the General Partner of Highfields Capital Management,

(iii)  Jonathon S. Jacobson, a Managing Member of Highfields GP, and

(iv)   Richard L. Grubman, a Managing Member of Highfields GP.

Highfields Capital Management, Highfields GP, Mr. Jacobson and Mr. Grubman are sometimes individually referred to herein as a “Reporting Person” and collectively as the “Reporting Persons.”

This statement is also being filed by Highfields Capital Ltd., an exempted limited company organized under the laws of the Cayman Islands, B.W.I., with respect to the shares of Common Stock of the Issuer owned by Highfields Capital Ltd. (which shares of Common Stock are also included in the filings for Highfields Capital Management, Highfields GP, Mr. Jacobson and Mr. Grubman).

Item 2

(b).

Address of Principal Business Office or, if None, Residence:

Address for Highfields Capital Management, Highfields GP,

Mr. Jacobson and Mr. Grubman:

c/o Highfields Capital Management

John Hancock Tower

200 Clarendon Street, 51st Floor

Boston, Massachusetts 02116

Address for Highfields Capital Ltd.:

c/o Goldman Sachs (Cayman) Trust, Limited

Harbour Centre, Second Floor

George Town, Grand Cayman

Cayman Islands, B.W.I.

Item 2

(c).

Citizenship:

Highfields Capital Management – Delaware

Highfields GP – Delaware

Jonathon S. Jacobson – United States

Richard L. Grubman – United States

Highfields Capital Ltd. – Cayman Islands, B.W.I.

Item 2

(d).

Title of Class of Securities:

Common Stock, no par value

Item 2

(e).

CUSIP Number:

283677854

CUSIP No. 283677854

Item 3.

Item 4.

Ownership.

Provide the following information regarding the aggregate number and percentage of the class of securities of the issuer identified in Item 1.

For Highfields Capital Management, Highfields GP, Mr. Jacobson and Mr. Grubman:

Item 5.

Ownership of Five Percent or Less of a Class.

If this statement is being filed to report the fact that as of the date hereof the reporting person has ceased to be the beneficial owner of more than five percent of the class of securities, check the following  x.

Item 6.

Ownership of More than Five Percent on Behalf of Another Person.

Not applicable.

Item 7.

Identification and Classification of the Subsidiary Which Acquired the Security Being Reported on by the Parent Holding Company.

Not applicable.

Item 8.

Identification and Classification of Members of the Group.

Not applicable.

Item 9.

Notice of Dissolution of Group.

Not applicable.

Item 10.

Certification.

By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect.

CUSIP No. 283677854

CUSIP No. 283677854