PanAmSat Corporation ordered its fifth satellite from Hughes Space and Communications Company in March 1995, an enhanced version of the Hughes HS 601 model designated HS-601HP for High Power. At the beginning of its life, it generates nearly 10 kilowatts. This version takes advantage of such advances as dual-junction gallium arsenide solar cells, new battery technology, and the first commercial use of a high-efficiency xenon ion propulsion system (XIPS). These features allow the Hughes HS-601HP to accommodate payloads twice as powerful as those of regular 601 models, while still offering lifetimes as long as 15 years.

PanAmSat became HSC's first customer to launch the new model, on Aug. 28, 1997, on a Russian Proton-K Blok-DM3 rocket from the Baikonur Cosmodrome in Kazakhstan. PAS-5 provides satellite services in the Americas, with access to Europe, including direct-to-home television services in Mexico.

Controllers began noticing degradation of the nickel-hydrogen battery in PAS-5 in early 1998. The effect on operations was analysed in June 1998. During periods of peak solar eclipse, which occur twice a year, PanAmSat will be required to shut off a portion of the satellite's payload for some time. PanAmSat reportedly received compensation of US$185 million from its insurers after the satellite was declared a "total loss" because its capacity was reduced by more than 50 percent.