1. A Future of Clean, Efficient Energy

2. Agenda Why does El Paso Electric offer EE Programs? Who is CLEAResult?
Listing of our Energy Efficiency Programs
What do the Programs offer?
A Little Secret . . .
Contact Information & Introductions
Questions
With regard to the electric utility industry, carbon footprint is measured by the amount of carbon dioxide produced per MWh generated. Note that the national average for CO2 emissions is EPE compares favorably with other regional utilities at 0.31.
Carbon Footprint is measured as tons of CO2 per MWh generated
2008 data, Source – Carbon Monitoring for Action - CARMA

3. Substantive Rule
Texas Energy Efficiency Goal: 30% of the electric utility’s annual growth in demand of residential and commercial customers by Dec. 31, Our goal is 11,160 kW
The House of Representatives has passed legislation that focuses on reducing carbon emissions.
This legislation is over 1000 pages in length. EPE has reviewed this legislation and made some preliminary observations as to its impact on our customers. We have now submitted this analysis to our congressional delegation and their staffs.
While the Senate does not seem to support the current House legislation, it is likely some sort of carbon emssions legislation will occur.
System Reliability and Security: A series of events, including 9/11, major blackouts in the Northeast US and a security breach of our national electrical grid led the federal government to place a greater emphasis on securing the electric grid. The federal government has implemented stricter security standards to protect the bulk electric system. Along with these standards and regulations came strict compliance measures with associated penalties for failure to comply with the law. EPE has implemented a program to ensure compliance with these regulations and providing reliability and security for its systems.
New Mexico:
The New Mexico Public Regulation Commission is requiring El Paso Electric to reduce the kWhs being sold to customers by 5 percent by the year 2014 and 10 percent by the year Once again, our challenge is to educate customers on ways to save energy and provide them with programs that will help them meet this challenge.
New Mexico (“NM”) also passed a Renewable Energy Act (“Act”) and Rule which requires:
6% of EE’s NM jurisdictional retail energy sales must be met with renewable energy. This will increase to 10% in 2011; 15% in
2015; and 20% in 2020.
Texas:
The Public Utility Commission of Texas has mandated that El Paso Electric achieve at least a 20 percent reduction in its annual growth demand of residential and commercial customers through energy efficiency programs. It is not incumbent upon our Company to reach out to our customers and offer them programs that will help them save money and energy. This issue has become a priority not only at the state level, but at all levels of government.
Texas has renewable requirements focused on securing RECs.
These sorts of tasks are being handed out all over the country and EPE is planning to meet or exceed each of them. 3

4. Transformation Drivers — Legislation
Federal Initiatives
Clean energy
System reliability and security
New Mexico
Energy efficiency
Renewable-generation requirements
Texas
Renewable requirements — RECs
The House of Representatives has passed legislation that focuses on reducing carbon emissions.
This legislation is over 1000 pages in length. EPE has reviewed this legislation and made some preliminary observations as to its impact on our customers. We have now submitted this analysis to our congressional delegation and their staffs.
While the Senate does not seem to support the current House legislation, it is likely some sort of carbon emssions legislation will occur.
System Reliability and Security: A series of events, including 9/11, major blackouts in the Northeast US and a security breach of our national electrical grid led the federal government to place a greater emphasis on securing the electric grid. The federal government has implemented stricter security standards to protect the bulk electric system. Along with these standards and regulations came strict compliance measures with associated penalties for failure to comply with the law. EPE has implemented a program to ensure compliance with these regulations and providing reliability and security for its systems.
New Mexico:
The New Mexico Public Regulation Commission is requiring El Paso Electric to reduce the kWhs being sold to customers by 5 percent by the year 2014 and 10 percent by the year Once again, our challenge is to educate customers on ways to save energy and provide them with programs that will help them meet this challenge.
New Mexico (“NM”) also passed a Renewable Energy Act (“Act”) and Rule which requires:
6% of EE’s NM jurisdictional retail energy sales must be met with renewable energy. This will increase to 10% in 2011; 15% in
2015; and 20% in 2020.
Texas:
The Public Utility Commission of Texas has mandated that El Paso Electric achieve at least a 20 percent reduction in its annual growth demand of residential and commercial customers through energy efficiency programs. It is not incumbent upon our Company to reach out to our customers and offer them programs that will help them save money and energy. This issue has become a priority not only at the state level, but at all levels of government.
Texas has renewable requirements focused on securing RECs.
These sorts of tasks are being handed out all over the country and EPE is planning to meet or exceed each of them.

5. House Bill 3693
State law that requires schools to establish goals to reduce electricity use by an average of 5% annually for 6 years.
Key requirements include:
Determine an electricity baseline.
Establish an electricity reduction goal.
Record energy improvements and electricity savings.
Report reductions in electricity consumption.
Why is traditional generation a transformation driver?
Significantly higher demand (even w/ efficiencies, more appliances in many homes; PDAs, computers, etc)
Larger population
Desire to reduce dependency of foreign oil with natural gas or other fuels
Environmental concerns around carbon emissions
Traditional Generation
Natural gas is the fuel of choice as it is the cleanest fossil fuel and abundant
Electric industry is moving towards more energy efficient generation, therefore replacing older generation equipment
Most electric utilities are making significant capital investments in new generation
Nuclear does not have wide support among the public as a whole. “Not in my backyard”
Coal is out of favor as a generation fuel due to its higher carbon emissions

6. CLEAResult CLEAResult - Implementer Located here in El Paso
Service some Texas and New Mexico programs
Headquartered in Austin, TX
Staff of engineers in Austin
With regard to the electric utility industry, carbon footprint is measured by the amount of carbon dioxide produced per MWh generated. Note that the national average for CO2 emissions is EPE compares favorably with other regional utilities at 0.31.
Carbon Footprint is measured as tons of CO2 per MWh generated
2008 data, Source – Carbon Monitoring for Action - CARMA

7. Texas Programs Standard Offer Program – Commercial & Industrial
Solutions Programs – mirror image of SOP made simple but includes Residential and Low Income customers
Photovoltaic Program
Load Management
SCORE Program – Schools, City and County
HVAC Tune-up Program
LivingWise – 5th grade educational program
Appliance Recycling Program – refrigerators & freezers

8. Who may participate? All El Paso Electric customers: Texas Customers:
Schools, County and City – SCORE Program
> 100 kW – Large Commercial Solutions Program
EPE Customer signs into program
< 100 kW – Small Commercial Solutions Program
Contractor will enroll into program
New Mexico Customers:
School, County, City and Commercial Customers (> 100 kW)
SCORE Plus Program

9. What the program offers?
Cash Incentives for Retrofit and New Construction projects:
Texas:
SCORE: $240 kW
Large Commercial: $240 kW
Small Commercial: $400 kW
Residential: $425/$576 kW (retrofit only)
New Mexico:
SCORE Plus: $.07 kWh
Small Commercial: Rebate (See Brochure)

10. What the programs offer?
Non Cash Incentives:
Technical Assistance to help identify and evaluate energy efficiency opportunities
Lighting (also with New Construction)
HVAC (also with New Construction)
ENERGY STAR ® Roofing
Controls (HVAC/Lighting)
Custom Projects (Process Chiller)
Communications Support to help publicize your leadership and accomplishments in energy efficiency

11. HVAC Tune-up Program Commercial Customers
Systems between 5 to 25 tons & must be ducted
System must be at least 1 year old
Incentive of $150 for qualifying unit
Tune-up performed in at least 75 degree weather

12. Residential Programs
Incentive programs for refrigerated air, insulation, solar screens, Energy Star windows, air infiltration and duct efficiency
Photovoltaics
“Living Wise” educational program for fifth-grade students and their families
Refrigerator and/or freezer recycling program
We currently have residential and small commercial programs that have already saved some of our larger customers some money. Because the New Mexico and Texas Commissions have slightly different rules, some the programs we currently have may or may not be available in both states.
EPE offers its customers a mix and match energy efficiency program designed to improve comfort and save energy. Our “Multi-Pack” enables you, the customer, to choose the measures that suit your needs. On the residential side, you can see many of our offerings.
Our company has participated in a very successful program which allows customers to purchase CFL bulbs at a discounted price at outlets throughout El Paso and Las Cruces. Many of you have already taken advantage of this program. We hope to partner with these outlets in offering more energy efficient products.
5th graders in our schools are given a “Living Wise” kit which includes a CFL, water saving devices an other items that help them promote energy efficiency when they take the kits home. I DON’T BELIEVE THERE IS A MORE IMPORTANT AUDIENCE THAN OUR CHILDREN TO ASSIST ALL OF US IN IMPROVING OUR ENVIRONMENT.
One group of customers that we are especially working hard to reach is our low-income customers. Historically, usage among these customers is low but that does not preclude us from offering them cost savings programs. In 2007 and 2008, El Paso Electric in cooperation with Project Bravo and other local agencies, has invested $961,000 in weatherization and refrigerator replacement programs for low income families. In 2009, we anticipated investing another $540,000 in the program.

13. Our Contact Information
Jon Gaumer, CLEAResult Consultant
Delilah Buenrostro, CLEAResult Consultant
Derek Pearson, SOP & Load Mgmt. Coordinator

14. Visit www.epelectric.com
Our Contact Information
Desmond Machucha, Res & S.C. Prog. Coordinator
Victor Silva, HVAC Tune-up Program Coordinator
Araceli Perea, SCORE & Large Comm. Coordinator
Visit

15. Questions?
With regard to the electric utility industry, carbon footprint is measured by the amount of carbon dioxide produced per MWh generated. Note that the national average for CO2 emissions is EPE compares favorably with other regional utilities at 0.31.
Carbon Footprint is measured as tons of CO2 per MWh generated
2008 data, Source – Carbon Monitoring for Action - CARMA