FERC Form

THIS FILING IS

Item 1:

☑ An Initial (Original) Submission

OR

☐ Resubmission No.




FERC FINANCIAL REPORT FERC FORM No. 1: Annual Report of Major Electric Utilities, Licensees and Others and Supplemental Form 3-Q: Quarterly Financial Report

These reports are mandatory under the Federal Power Act, Sections 3, 4(a), 304 and 309, and 18 CFR 141.1 and 141.400. Failure to report may result in criminal fines, civil penalties and other sanctions as provided by law. The Federal Energy Regulatory Commission does not consider these reports to be of confidential nature

Exact Legal Name of Respondent (Company)

El Paso Electric Company

Year/Period of Report

End of:

2022

/

Q4

INSTRUCTIONS FOR FILING FERC FORM NOS. 1 and 3-Q

GENERAL INFORMATION

Purpose
FERC Form No. 1 (FERC Form 1) is an annual regulatory requirement for Major electric utilities, licensees and others (18 C.F.R. § 141.1). FERC Form No. 3-Q ( FERC Form 3-Q) is a quarterly regulatory requirement which supplements the annual financial reporting requirement (18 C.F.R. § 141.400). These reports are designed to collect financial and operational information from electric utilities, licensees and others subject to the jurisdiction of the Federal Energy Regulatory Commission. These reports are also considered to be non-confidential public use forms.
Who Must Submit
Each Major electric utility, licensee, or other, as classified in the Commission’s Uniform System of Accounts Prescribed for Public Utilities, Licensees, and Others Subject To the Provisions of The Federal Power Act (18 C.F.R. Part 101), must submit FERC Form 1 (18 C.F.R. § 141.1), and FERC Form 3-Q (18 C.F.R. § 141.400).
Note: Major means having, in each of the three previous calendar years, sales or transmission service that exceeds one of the following:
1. one million megawatt hours of total annual sales,
2. 100 megawatt hours of annual sales for resale,
3. 500 megawatt hours of annual power exchanges delivered, or
4. 500 megawatt hours of annual wheeling for others (deliveries plus losses).

What and Where to Submit

Submit FERC Form Nos. 1 and 3-Q electronically through the eCollection portal at https://eCollection.ferc.gov, and according to the specifications in the Form 1 and 3-Q taxonomies.
The Corporate Officer Certification must be submitted electronically as part of the FERC Forms 1 and 3-Q filings.
Submit immediately upon publication, by either eFiling or mail, two (2) copies to the Secretary of the Commission, the latest Annual Report to Stockholders. Unless eFiling the Annual Report to Stockholders, mail the stockholders report to the Secretary of the Commission at:
Secretary
Federal Energy Regulatory Commission 888 First Street, NE
Washington, DC 20426

For the CPA Certification Statement, submit within 30 days after filing the FERC Form 1, a letter or report (not applicable to filers classified as Class C or Class D prior to January 1, 1984). The CPA Certification Statement can be either eFiled or mailed to the Secretary of the Commission at the address above.

The CPA Certification Statement should:

Attest to the conformity, in all material aspects, of the below listed (schedules and pages) with the Commission's applicable Uniform System of Accounts (including applicable notes relating thereto and the Chief Accountant's published accounting releases), and

Be signed by independent certified public accountants or an independent licensed public accountant certified or licensed by a regulatory authority of a State or other political subdivision of the U. S. (See 18 C.F.R. §§ 41.10-41.12 for specific qualifications.)

Schedules	Pages
Comparative Balance Sheet	110-113
Statement of Income	114-117
Statement of Retained Earnings	118-119
Statement of Cash Flows	120-121
Notes to Financial Statements	122-123

The following format must be used for the CPA Certification Statement unless unusual circumstances or conditions, explained in the letter or report, demand that it be varied. Insert parenthetical phrases only when exceptions are reported.
“In connection with our regular examination of the financial statements of [COMPANY NAME] for the year ended on which we have reported separately under date of [DATE], we have also reviewed schedules [NAME OF SCHEDULES] of FERC Form No. 1 for the year filed with the Federal Energy Regulatory Commission, for conformity in all material respects with the requirements of the Federal Energy Regulatory Commission as set forth in its applicable Uniform System of Accounts and published accounting releases. Our review for this purpose included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.
Based on our review, in our opinion the accompanying schedules identified in the preceding paragraph (except as noted below) conform in all material respects with the accounting requirements of the Federal Energy Regulatory Commission as set forth in its applicable Uniform System of Accounts and published accounting releases.” The letter or report must state which, if any, of the pages above do not conform to the Commission’s requirements. Describe the discrepancies that exist.
Filers are encouraged to file their Annual Report to Stockholders, and the CPA Certification Statement using eFiling. Further instructions are found on the Commission’s website at https://www.ferc.gov/ferc-online/ferc-online/frequently-asked-questions-faqs-efilingferc-online.
Federal, State, and Local Governments and other authorized users may obtain additional blank copies of FERC Form 1 and 3-Q free of charge from https://www.ferc.gov/general-information-0/electric-industry-forms.

When to Submit
FERC Forms 1 and 3-Q must be filed by the following schedule:
1. FERC Form 1 for each year ending December 31 must be filed by April 18th of the following year (18 CFR § 141.1), and
2. FERC Form 3-Q for each calendar quarter must be filed within 60 days after the reporting quarter (18 C.F.R. § 141.400).
Where to Send Comments on Public Reporting Burden.
The public reporting burden for the FERC Form 1 collection of information is estimated to average 1,168 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data-needed, and completing and reviewing the collection of information. The public reporting burden for the FERC Form 3-Q collection of information is estimated to average 168 hours per response.
Send comments regarding these burden estimates or any aspect of these collections of information, including suggestions for reducing burden, to the Federal Energy Regulatory Commission, 888 First Street NE, Washington, DC 20426 (Attention: Information Clearance Officer); and to the Office of Information and Regulatory Affairs, Office of Management and Budget, Washington, DC 20503 (Attention: Desk Officer for the Federal Energy Regulatory Commission). No person shall be subject to any penalty if any collection of information does not display a valid control number (44 U.S.C. § 3512 (a)).

GENERAL INSTRUCTIONS

Prepare this report in conformity with the Uniform System of Accounts (18 CFR Part 101) (USofA). Interpret all accounting words and phrases in accordance with the USofA.
Enter in whole numbers (dollars or MWH) only, except where otherwise noted. (Enter cents for averages and figures per unit where cents are important. The truncating of cents is allowed except on the four basic financial statements where rounding is required.) The amounts shown on all supporting pages must agree with the amounts entered on the statements that they support. When applying thresholds to determine significance for reporting purposes, use for balance sheet accounts the balances at the end of the current reporting period, and use for statement of income accounts the current year's year to date amounts.
Complete each question fully and accurately, even if it has been answered in a previous report. Enter the word "None" where it truly and completely states the fact.
For any page(s) that is not applicable to the respondent, omit the page(s) and enter "NA," "NONE," or "Not Applicable" in column (d) on the List of Schedules, pages 2 and 3.
Enter the month, day, and year for all dates. Use customary abbreviations. The "Date of Report" included in the header of each page is to be completed only for resubmissions (see VII. below).
Generally, except for certain schedules, all numbers, whether they are expected to be debits or credits, must be reported as positive. Numbers having a sign that is different from the expected sign must be reported by enclosing the numbers in parentheses.
For any resubmissions, please explain the reason for the resubmission in a footnote to the data field.
Do not make references to reports of previous periods/years or to other reports in lieu of required entries, except as specifically authorized.
Wherever (schedule) pages refer to figures from a previous period/year, the figures reported must be based upon those shown by the report of the previous period/year, or an appropriate explanation given as to why the different figures were used.
Schedule specific instructions are found in the applicable taxonomy and on the applicable blank rendered form.

Definitions for statistical classifications used for completing schedules for transmission system reporting are as follows:

FNS - Firm Network Transmission Service for Self. "Firm" means service that can not be interrupted for economic reasons and is intended to remain reliable even under adverse conditions. "Network Service" is Network Transmission Service as described in Order No. 888 and the Open Access Transmission Tariff. "Self" means the respondent.

FNO - Firm Network Service for Others. "Firm" means that service cannot be interrupted for economic reasons and is intended to remain reliable even under adverse conditions. "Network Service" is Network Transmission Service as described in Order No. 888 and the Open Access Transmission Tariff.

LFP - for Long-Term Firm Point-to-Point Transmission Reservations. "Long-Term" means one year or longer and” firm" means that service cannot be interrupted for economic reasons and is intended to remain reliable even under adverse conditions. "Point-to-Point Transmission Reservations" are described in Order No. 888 and the Open Access Transmission Tariff. For all transactions identified as LFP, provide in a footnote the termination date of the contract defined as the earliest date either buyer or seller can unilaterally cancel the contract.

OLF - Other Long-Term Firm Transmission Service. Report service provided under contracts which do not conform to the terms of the Open Access Transmission Tariff. "Long-Term" means one year or longer and “firm” means that service cannot be interrupted for economic reasons and is intended to remain reliable even under adverse conditions. For all transactions identified as OLF, provide in a footnote the termination date of the contract defined as the earliest date either buyer or seller can unilaterally get out of the contract.

SFP - Short-Term Firm Point-to-Point Transmission Reservations. Use this classification for all firm point-to-point transmission reservations, where the duration of each period of reservation is less than one-year.

NF - Non-Firm Transmission Service, where firm means that service cannot be interrupted for economic reasons and is intended to remain reliable even under adverse conditions.

OS - Other Transmission Service. Use this classification only for those services which can not be placed in the above-mentioned classifications, such as all other service regardless of the length of the contract and service FERC Form. Describe the type of service in a footnote for each entry.

AD - Out-of-Period Adjustments. Use this code for any accounting adjustments or "true-ups" for service provided in prior reporting periods. Provide an explanation in a footnote for each adjustment.

DEFINITIONS

Commission Authorization (Comm. Auth.) -- The authorization of the Federal Energy Regulatory Commission, or any other Commission. Name the commission whose authorization was obtained and give date of the authorization.
Respondent -- The person, corporation, licensee, agency, authority, or other Legal entity or instrumentality in whose behalf the report is made.

EXCERPTS FROM THE LAW

Federal Power Act, 16 U.S.C. § 791a-825r

Sec. 3. The words defined in this section shall have the following meanings for purposes of this Act, to with:

’Corporation' means any corporation, joint-stock company, partnership, association, business trust, organized group of persons, whether incorporated or not, or a receiver or receivers, trustee or trustees of any of the foregoing. It shall not include 'municipalities, as hereinafter defined;
'Person' means an individual or a corporation;
'Licensee, means any person, State, or municipality Licensed under the provisions of section 4 of this Act, and any assignee or successor in interest thereof;

'municipality means a city, county, irrigation district, drainage district, or other political subdivision or agency of a State competent under the Laws thereof to carry and the business of developing, transmitting, unitizing, or distributing power; ......

"project' means. a complete unit of improvement or development, consisting of a power house, all water conduits, all dams and appurtenant works and structures (including navigation structures) which are a part of said unit, and all storage, diverting, or fore bay reservoirs directly connected therewith, the primary line or lines transmitting power there from to the point of junction with the distribution system or with the interconnected primary transmission system, all miscellaneous structures used and useful in connection with said unit or any part thereof, and all water rights, rights-of-way, ditches, dams, reservoirs, Lands, or interest in Lands the use and occupancy of which are necessary or appropriate in the maintenance and operation of such unit;

"Sec. 4. The Commission is hereby authorized and empowered

'To make investigations and to collect and record data concerning the utilization of the water 'resources of any region to be developed, the water-power industry and its relation to other industries and to interstate or foreign commerce, and concerning the location, capacity, development costs, and relation to markets of power sites; ... to the extent the Commission may deem necessary or useful for the purposes of this Act."

"Sec. 304.

Every Licensee and every public utility shall file with the Commission such annual and other periodic or special* reports as the Commission may by rules and regulations or other prescribe as necessary or appropriate to assist the Commission in the proper administration of this Act. The Commission may prescribe the manner and FERC Form in which such reports shall be made, and require from such persons specific answers to all questions upon which the Commission may need information. The Commission may require that such reports shall include, among other things, full information as to assets and Liabilities, capitalization, net investment, and reduction thereof, gross receipts, interest due and paid, depreciation, and other reserves, cost of project and other facilities, cost of maintenance and operation of the project and other facilities, cost of renewals and replacement of the project works and other facilities, depreciation, generation, transmission, distribution, delivery, use, and sale of electric energy. The Commission may require any such person to make adequate provision for currently determining such costs and other facts. Such reports shall be made under oath unless the Commission otherwise specifies*.10

"Sec. 309.

The Commission shall have power to perform any and all acts, and to prescribe, issue, make, and rescind such orders, rules and regulations as it may find necessary or appropriate to carry out the provisions of this Act. Among other things, such rules and regulations may define accounting, technical, and trade terms used in this Act; and may prescribe the FERC Form or FERC Forms of all statements, declarations, applications, and reports to be filed with the Commission, the information which they shall contain, and the time within which they shall be field..."

GENERAL PENALTIES

The Commission may assess up to $1 million per day per violation of its rules and regulations. See FPA § 316(a) (2005), 16 U.S.C. § 825o(a).

FERC FORM NO.

1

REPORT OF MAJOR ELECTRIC UTILITIES, LICENSEES AND OTHER

IDENTIFICATION

01 Exact Legal Name of Respondent

El Paso Electric Company

02 Year/ Period of Report

End of:

2022

/

Q4

03 Previous Name and Date of Change (If name changed during year)

/

04 Address of Principal Office at End of Period (Street, City, State, Zip Code)

P.O. Box 982, El Paso, TX 79960-0982; 100 North Stanton Street, El Paso, TX

05 Name of Contact Person

Cynthia S. Prieto

06 Title of Contact Person

Vice President & Controller

07 Address of Contact Person (Street, City, State, Zip Code)

P.O. Box 982, El Paso, TX 79960-0982; 100 North Stanton Street, El Paso, TX

08 Telephone of Contact Person, Including Area Code

(915) 543-4308

09 This Report is An Original / A Resubmission

(1)

☑ An Original

(2)

☐ A Resubmission

10 Date of Report (Mo, Da, Yr)

03/24/2023

Annual Corporate Officer Certification

The undersigned officer certifies that:

I have examined this report and to the best of my knowledge, information, and belief all statements of fact contained in this report are correct statements of the business affairs of the respondent and the financial statements, and other financial information contained in this report, conform in all material respects to the Uniform System of Accounts.

01 Name

/s/ Cynthia S. Prieto

02 Title

Vice President & Controller

03 Signature

/s/ Cynthia S. Prieto

04 Date Signed (Mo, Da, Yr)

03/24/2023

Title 18, U.S.C. 1001 makes it a crime for any person to knowingly and willingly to make to any Agency or Department of the United States any false, fictitious or fraudulent statements as to any matter within its jurisdiction.

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

LIST OF SCHEDULES (Electric Utility)
Enter in column (c) the terms "none," "not applicable," or "NA," as appropriate, where no information or amounts have been reported for certain pages. Omit pages where the respondents are "none," "not applicable," or "NA".
Line No.	Title of Schedule (a)	Reference Page No. (b)	Remarks (c)
	ScheduleIdentificationAbstract Identification	1
	ScheduleListOfSchedulesAbstract List of Schedules	2
1	ScheduleGeneralInformationAbstract General Information	101
2	ScheduleControlOverRespondentAbstract Control Over Respondent	102
3	ScheduleCorporationsControlledByRespondentAbstract Corporations Controlled by Respondent	103	Not Applicable
4	ScheduleOfficersAbstract Officers	104
5	ScheduleDirectorsAbstract Directors	105
6	ScheduleInformationOnFormulaRatesAbstract Information on Formula Rates	106
7	ScheduleImportantChangesDuringTheQuarterYearAbstract Important Changes During the Year	108
8	ScheduleComparativeBalanceSheetAbstract Comparative Balance Sheet	110
9	ScheduleStatementOfIncomeAbstract Statement of Income for the Year	114
10	ScheduleRetainedEarningsAbstract Statement of Retained Earnings for the Year	118
12	ScheduleStatementOfCashFlowsAbstract Statement of Cash Flows	120
12	ScheduleNotesToFinancialStatementsAbstract Notes to Financial Statements	122
13	ScheduleStatementOfAccumulatedOtherComprehensiveIncomeAndHedgingActivitiesAbstract Statement of Accum Other Comp Income, Comp Income, and Hedging Activities	122a
14	ScheduleSummaryOfUtilityPlantAndAccumulatedProvisionsForDepreciationAmortizationAndDepletionAbstract Summary of Utility Plant & Accumulated Provisions for Dep, Amort & Dep	200
15	ScheduleNuclearFuelMaterialsAbstract Nuclear Fuel Materials	202
16	ScheduleElectricPlantInServiceAbstract Electric Plant in Service	204
17	ScheduleElectricPropertyLeasedToOthersAbstract Electric Plant Leased to Others	213	None
18	ScheduleElectricPlantHeldForFutureUseAbstract Electric Plant Held for Future Use	214
19	ScheduleConstructionWorkInProgressElectricAbstract Construction Work in Progress-Electric	216
20	ScheduleAccumulatedProvisionForDepreciationOfElectricUtilityPlantAbstract Accumulated Provision for Depreciation of Electric Utility Plant	219
21	ScheduleInvestmentsInSubsidiaryCompaniesAbstract Investment of Subsidiary Companies	224	None
22	ScheduleMaterialsAndSuppliesAbstract Materials and Supplies	227
23	ScheduleAllowanceInventoryAbstract Allowances	228
24	ScheduleExtraordinaryPropertyLossesAbstract Extraordinary Property Losses	230a	None
25	ScheduleUnrecoveredPlantAndRegulatoryStudyCostsAbstract Unrecovered Plant and Regulatory Study Costs	230b	None
26	ScheduleTransmissionServiceAndGenerationInterconnectionStudyCostsAbstract Transmission Service and Generation Interconnection Study Costs	231
27	ScheduleOtherRegulatoryAssetsAbstract Other Regulatory Assets	232
28	ScheduleMiscellaneousDeferredDebitsAbstract Miscellaneous Deferred Debits	233
29	ScheduleAccumulatedDeferredIncomeTaxesAbstract Accumulated Deferred Income Taxes	234
30	ScheduleCapitalStockAbstract Capital Stock	250
31	ScheduleOtherPaidInCapitalAbstract Other Paid-in Capital	253
32	ScheduleCapitalStockExpenseAbstract Capital Stock Expense	254b
33	ScheduleLongTermDebtAbstract Long-Term Debt	256
34	ScheduleReconciliationOfReportedNetIncomeWithTaxableIncomeForFederalIncomeTaxesAbstract Reconciliation of Reported Net Income with Taxable Inc for Fed Inc Tax	261
35	ScheduleTaxesAccruedPrepaidAndChargedDuringYearDistributionOfTaxesChargedAbstract Taxes Accrued, Prepaid and Charged During the Year	262
36	ScheduleAccumulatedDeferredInvestmentTaxCreditsAbstract Accumulated Deferred Investment Tax Credits	266
37	ScheduleOtherDeferredCreditsAbstract Other Deferred Credits	269
38	ScheduleAccumulatedDeferredIncomeTaxesAcceleratedAmortizationPropertyAbstract Accumulated Deferred Income Taxes-Accelerated Amortization Property	272	Not Applicable
39	ScheduleAccumulatedDeferredIncomeTaxesOtherPropertyAbstract Accumulated Deferred Income Taxes-Other Property	274
40	ScheduleAccumulatedDeferredIncomeTaxesOtherAbstract Accumulated Deferred Income Taxes-Other	276
41	ScheduleOtherRegulatoryLiabilitiesAbstract Other Regulatory Liabilities	278
42	ScheduleElectricOperatingRevenuesAbstract Electric Operating Revenues	300
43	ScheduleRegionalTransmissionServiceRevenuesAbstract Regional Transmission Service Revenues (Account 457.1)	302	Not Applicable
44	ScheduleSalesOfElectricityByRateSchedulesAbstract Sales of Electricity by Rate Schedules	304
45	ScheduleSalesForResaleAbstract Sales for Resale	310
46	ScheduleElectricOperationsAndMaintenanceExpensesAbstract Electric Operation and Maintenance Expenses	320
47	SchedulePurchasedPowerAbstract Purchased Power	326
48	ScheduleTransmissionOfElectricityForOthersAbstract Transmission of Electricity for Others	328
49	ScheduleTransmissionOfElectricityByIsoOrRtoAbstract Transmission of Electricity by ISO/RTOs	331	Not Applicable
50	ScheduleTransmissionOfElectricityByOthersAbstract Transmission of Electricity by Others	332
51	ScheduleMiscellaneousGeneralExpensesAbstract Miscellaneous General Expenses-Electric	335
52	ScheduleDepreciationDepletionAndAmortizationAbstract Depreciation and Amortization of Electric Plant (Account 403, 404, 405)	336
53	ScheduleRegulatoryCommissionExpensesAbstract Regulatory Commission Expenses	350
54	ScheduleResearchDevelopmentOrDemonstrationExpendituresAbstract Research, Development and Demonstration Activities	352	None
55	ScheduleDistributionOfSalariesAndWagesAbstract Distribution of Salaries and Wages	354
56	ScheduleCommonUtilityPlantAndExpensesAbstract Common Utility Plant and Expenses	356	Not Applicable
57	ScheduleAmountsIncludedInIsoOrRtoSettlementAbstract Amounts included in ISO/RTO Settlement Statements	397	Not Applicable
58	SchedulePurchasesSalesOfAncillaryServicesAbstract Purchase and Sale of Ancillary Services	398
59	ScheduleMonthlyTransmissionSystemPeakLoadAbstract Monthly Transmission System Peak Load	400
60	ScheduleMonthlyIsoOrRtoTransmissionSystemPeakLoadAbstract Monthly ISO/RTO Transmission System Peak Load	400a	Not Applicable
61	ScheduleElectricEnergyAccountAbstract Electric Energy Account	401a
62	ScheduleMonthlyPeakAndOutputAbstract Monthly Peaks and Output	401b
63	ScheduleSteamElectricGeneratingPlantStatisticsAbstract Steam Electric Generating Plant Statistics	402
64	ScheduleHydroelectricGeneratingPlantStatisticsAbstract Hydroelectric Generating Plant Statistics	406	Not Applicable
65	SchedulePumpedStorageGeneratingPlantStatisticsAbstract Pumped Storage Generating Plant Statistics	408	Not Applicable
66	ScheduleGeneratingPlantStatisticsAbstract Generating Plant Statistics Pages	410
0	ScheduleEnergyStorageOperationsLargePlantsAbstract Energy Storage Operations (Large Plants)	414	None
67	ScheduleTransmissionLineStatisticsAbstract Transmission Line Statistics Pages	422
68	ScheduleTransmissionLinesAddedAbstract Transmission Lines Added During Year	424
69	ScheduleSubstationsAbstract Substations	426
70	ScheduleTransactionsWithAssociatedAffiliatedCompaniesAbstract Transactions with Associated (Affiliated) Companies	429	None
71	FootnoteDataAbstract Footnote Data	450
	StockholdersReportsAbstract Stockholders' Reports (check appropriate box)
	Stockholders' Reports Check appropriate box: ☐ Two copies will be submitted ☑ No annual report to stockholders is prepared

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

GENERAL INFORMATION
1. Provide name and title of officer having custody of the general corporate books of account and address of office where the general corporate books are kept, and address of office where any other corporate books of account are kept, if different from that where the general corporate books are kept. Cynthia S. Prieto Vice President & Controller Stanton Tower, 100 North Stanton StreetEl Paso, Texas 79901
2. Provide the name of the State under the laws of which respondent is incorporated, and date of incorporation. If incorporated under a special law, give reference to such law. If not incorporated, state that fact and give the type of organization and the date organized. State of Incorporation: TX Date of Incorporation: 1901-08-30 Incorporated Under Special Law:
3. If at any time during the year the property of respondent was held by a receiver or trustee, give (a) name of receiver or trustee, (b) date such receiver or trustee took possession, (c) the authority by which the receivership or trusteeship was created, and (d) date when possession by receiver or trustee ceased. (a) Name of Receiver or Trustee Holding Property of the Respondent: (b) Date Receiver took Possession of Respondent Property: (c) Authority by which the Receivership or Trusteeship was created: (d) Date when possession by receiver or trustee ceased:
4. State the classes or utility and other services furnished by respondent during the year in each State in which the respondent operated. Electric power generation, transmission and distribution for sale at retail in the states of Texas and New Mexico; and wholesale sales including sales for resale to other electric utilities primarily in the states of Texas, New Mexico and Arizona and sales for resale to power marketers.
5. Have you engaged as the principal accountant to audit your financial statements an accountant who is not the principal accountant for your previous year's certified financial statements? (1) ☐ Yes (2) ☑ No

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

CONTROL OVER RESPONDENT
1. If any corporation, business trust, or similar organization or a combination of such organizations jointly held control over the respondent at the end of the year, state name of controlling corporation or organization, manner in which control was held, and extent of control. If control was in a holding company organization, show the chain of ownership or control to the main parent company or organization. If control was held by a trustee(s), state name of trustee(s), name of beneficiary or beneficiaries for whom trust was maintained, and purpose of the trust.

El Paso Electric Company ("EPE") is wholly owned by Sun Jupiter Holdings LLC, a Delaware limited liability company.

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

CORPORATIONS CONTROLLED BY RESPONDENT
Report below the names of all corporations, business trusts, and similar organizations, controlled directly or indirectly by respondent at any time during the year. If control ceased prior to end of year, give particulars (details) in a footnote. If control was by other means than a direct holding of voting rights, state in a footnote the manner in which control was held, naming any intermediaries involved. If control was held jointly with one or more other interests, state the fact in a footnote and name the other interests. Definitions See the Uniform System of Accounts for a definition of control. Direct control is that which is exercised without interposition of an intermediary. Indirect control is that which is exercised by the interposition of an intermediary which exercises direct control. Joint control is that in which neither interest can effectively control or direct action without the consent of the other, as where the voting control is equally divided between two holders, or each party holds a veto power over the other. Joint control may exist by mutual agreement or understanding between two or more parties who together have control within the meaning of the definition of control in the Uniform System of Accounts, regardless of the relative voting rights of each party.
Line No.	NameOfCompanyControlledByRespondent Name of Company Controlled (a)	CompanyControlledByRespondentKindOfBusinessDescription Kind of Business (b)	VotingStockOwnedByRespondentPercentage Percent Voting Stock Owned (c)	FootnoteReferences Footnote Ref. (d)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

OFFICERS
Report below the name, title and salary for each executive officer whose salary is $50,000 or more. An "executive officer" of a respondent includes its president, secretary, treasurer, and vice president in charge of a principal business unit, division or function (such as sales, administration or finance), and any other person who performs similar policy making functions. If a change was made during the year in the incumbent of any position, show name and total remuneration of the previous incumbent, and the date the change in incumbency was made.
Line No.	OfficerTitle Title (a)	OfficerName Name of Officer (b)	OfficerSalary Salary for Year (c)	DateOfficerIncumbencyStarted Date Started in Period (d)	DateOfficerIncumbencyEnded Date Ended in Period (e)
1	President and Chief Executive Officer	Kelly A. Tomblin	769,903
2	Chief Financial Officer	Richard Ostberg	385,084
3	Senior Vice President - Operations	(a) Steven T. Buraczyk	105,308		2022-04-01
4	Vice President - System Operations and Resource Strategy	David C. Hawkins	277,077
5	Vice President - General Counsel and Corporate Secretary	(b) Cynthia Henry	266,900	2022-10-27
6	Vice President - Transmission and Distribution	(c) Omar Gallegos	228,595	2022-01-31
7	Vice President - Controller	Cynthia S. Prieto	239,192
8	Vice President - Customer Care and Corporate Communications	Cheryl Mele	254,634
9	Vice President - Sustainability and Energy Solutions	(d) Jessica Christianson	229,115	2022-05-09
10	Vice President - Human Resources and Safety	Victor F. Rueda	295,695
11	Vice President - Regulatory and Governmental Affairs	James A. Schichtl	286,431
12	Vice President - Power Generation	(e) David Rodriguez	221,616	2022-03-28
13	Treasurer	(f) Lisa D. Budtke	215,946

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

FOOTNOTE DATA

(a) Concept: OfficerName

On April 1, 2022, Steven T. Buraczyk, Senior Vice President, Operations retired from EPE.

(b) Concept: OfficerName

On October 27, 2022, the Board appointed Cynthia Henry to Corporate Secretary.

(c) Concept: OfficerName

On January 31, 2022, Omar Gallegos was appointed to Vice President, Transmission and Distribution.

(d) Concept: OfficerName

On May 9, 2022, Jessica Christianson was appointed to Vice President, Sustainability and Energy Solutions.

(e) Concept: OfficerName

On March 28, 2022, David Rodriguez was appointed to Vice President, Power Generation.

(f) Concept: OfficerName

On January 30, 2023, Lisa Budtke was appointed to Treasurer.

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

DIRECTORS
Report below the information called for concerning each director of the respondent who held office at any time during the year. Include in column (a), name and abbreviated titles of the directors who are officers of the respondent. Provide the principle place of business in column (b), designate members of the Executive Committee in column (c), and the Chairman of the Executive Committee in column (d).
Line No.	NameAndTitleOfDirector Name (and Title) of Director (a)	PrincipalBusinessAddress Principal Business Address (b)	MemberOfTheExecutiveCommittee Member of the Executive Committee (c)	ChairmanOfTheExecutiveCommittee Chairman of the Executive Committee (d)
1	Frank Cassidy - Director	El Paso Electric Company, 100 North Stanton, El Paso, Texas 79901	false	false
2	Kathleen D. Alexander - Director	El Paso Electric Company, 100 North Stanton, El Paso, Texas 79901	false	false
3	(a) Edward Escudero - Director	High Desert Capital, LLC, 6080 Surety Drive, El Paso, Texas 79905	false	false
4	L. Frederick Francis - Director	WestStar Bank, 500 N. Mesa, El Paso, Texas 79901	false	false
5	Andrew Gilbert - Director	J.P. Morgan Asset Management, 277 Park Ave, Floor 35, New York, New York 10172	false	false
6	Michael E. Jesanis - Director	El Paso Electric Company, 100 North Stanton, El Paso, Texas 79901	false	false
7	Peter Kind - Director	El Paso Electric Company, 100 North Stanton, El Paso, Texas 79901	false	false
8	Raymond Palacios, Jr. - Director	Bravo Cadillac, 6555 Montana Avenue, El Paso, Texas 79901	false	false
9	Preston T. Scherer - Director	J.P. Morgan Asset Management, 277 Park Ave, Floor 35, New York, New York 10172	false	false
10	Kelly A. Tomblin - Director, President and Chief Executive Officer	El Paso Electric Company, 100 North Stanton, El Paso, Texas 79901	false	false

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

FOOTNOTE DATA

(a) Concept: NameAndTitleOfDirector

On July 26, 2022, Edward Escudero was appointed as Vice Chair, a newly established position, of the Board of Directors and was elected to the Board of Directors for an additional three-year term as Disinterested Director. His original term as a Disinterested Director expired on July 29, 2022.

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

INFORMATION ON FORMULA RATES
Does the respondent have formula rates?		☑ Yes ☐ No
Please list the Commission accepted formula rates including FERC Rate Schedule or Tariff Number and FERC proceeding (i.e. Docket No) accepting the rate(s) or changes in the accepted rate.
Line No.	RateScheduleTariffNumber FERC Rate Schedule or Tariff Number (a)	ProceedingDocketNumber FERC Proceeding (b)
1	Rate Schedule FERC No. 18	ER19-2893-001
2	Open Access Transmission Tariff - Attachment H-1	ER22-282-000

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

INFORMATION ON FORMULA RATES - FERC Rate Schedule/Tariff Number FERC Proceeding
Does the respondent file with the Commission annual (or more frequent) filings containing the inputs to the formula rate(s)?			☑ Yes ☐ No
If yes, provide a listing of such filings as contained on the Commission's eLibrary website.
Line No.	AccessionNumber Accession No. (a)	DocumentDate Document Date / Filed Date (b)	DocketNumber Docket No. (c)	DescriptionOfFiling Description (d)	RateScheduleTariffNumber Formula Rate FERC Rate Schedule Number or Tariff Number (e)
1	20220908-5146	09/08/2022	ER19-2893	(a) 2022 Annual Update Filing	18
2	20220615-5183	06/15/2022	ER22-282	(b) 2022 Annual Update Filing	1, 7, and 8

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

FOOTNOTE DATA

(a) Concept: DescriptionOfFiling

The 2022 annual update is to the cost-based formula rate included in the Power Sales Agreement under ER19-2893.

(b) Concept: DescriptionOfFiling

The 2022 annual update is to the formula rate included in the Informational Filing for Attachment H-1 Open Access Transmission Tariff under ER22-282.

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

INFORMATION ON FORMULA RATES - Formula Rate Variances
If a respondent does not submit such filings then indicate in a footnote to the applicable Form 1 schedule where formula rate inputs differ from amounts reported in the Form 1. The footnote should provide a narrative description explaining how the "rate" (or billing) was derived if different from the reported amount in the Form 1. The footnote should explain amounts excluded from the ratebase or where labor or other allocation factors, operating expenses, or other items impacting formula rate inputs differ from amounts reported in Form 1 schedule amounts. Where the Commission has provided guidance on formula rate inputs, the specific proceeding should be noted in the footnote.
Line No.	PageNumberOfFormulaRateVariances Page No(s). (a)	ScheduleOfFormulaRateVariances Schedule (b)	ColumnOfFormulaRateVariances Column (c)	LineNumberOfFormulaRateVariances Line No. (d)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

IMPORTANT CHANGES DURING THE QUARTER/YEAR
Give particulars (details) concerning the matters indicated below. Make the statements explicit and precise, and number them in accordance with the inquiries. Each inquiry should be answered. Enter "none," "not applicable," or "NA" where applicable. If information which answers an inquiry is given elsewhere in the report, make a reference to the schedule in which it appears. Changes in and important additions to franchise rights: Describe the actual consideration given therefore and state from whom the franchise rights were acquired. If acquired without the payment of consideration, state that fact. Acquisition of ownership in other companies by reorganization, merger, or consolidation with other companies: Give names of companies involved, particulars concerning the transactions, name of the Commission authorizing the transaction, and reference to Commission authorization. Purchase or sale of an operating unit or system: Give a brief description of the property, and of the transactions relating thereto, and reference to Commission authorization, if any was required. Give date journal entries called for by the Uniform System of Accounts were submitted to the Commission. Important leaseholds (other than leaseholds for natural gas lands) that have been acquired or given, assigned or surrendered: Give effective dates, lengths of terms, names of parties, rents, and other condition. State name of Commission authorizing lease and give reference to such authorization. Important extension or reduction of transmission or distribution system: State territory added or relinquished and date operations began or ceased and give reference to Commission authorization, if any was required. State also the approximate number of customers added or lost and approximate annual revenues of each class of service. Each natural gas company must also state major new continuing sources of gas made available to it from purchases, development, purchase contract or otherwise, giving location and approximate total gas volumes available, period of contracts, and other parties to any such arrangements, etc. Obligations incurred as a result of issuance of securities or assumption of liabilities or guarantees including issuance of short-term debt and commercial paper having a maturity of one year or less. Give reference to FERC or State Commission authorization, as appropriate, and the amount of obligation or guarantee. Changes in articles of incorporation or amendments to charter: Explain the nature and purpose of such changes or amendments. State the estimated annual effect and nature of any important wage scale changes during the year. State briefly the status of any materially important legal proceedings pending at the end of the year, and the results of any such proceedings culminated during the year. Describe briefly any materially important transactions of the respondent not disclosed elsewhere in this report in which an officer, director, security holder reported on Pages 104 or 105 of the Annual Report Form No. 1, voting trustee, associated company or known associate of any of these persons was a party or in which any such person had a material interest. (Reserved.) If the important changes during the year relating to the respondent company appearing in the annual report to stockholders are applicable in every respect and furnish the data required by Instructions 1 to 11 above, such notes may be included on this page. Describe fully any changes in officers, directors, major security holders and voting powers of the respondent that may have occurred during the reporting period. In the event that the respondent participates in a cash management program(s) and its proprietary capital ratio is less than 30 percent please describe the significant events or transactions causing the proprietary capital ratio to be less than 30 percent, and the extent to which the respondent has amounts loaned or money advanced to its parent, subsidiary, or affiliated companies through a cash management program(s). Additionally, please describe plans, if any to regain at least a 30 percent proprietary ratio.

None.
None.
None.
None.
None.
See Note G of "Notes to Financial Statements."
None.
The annual merit award process salary increases for non-union employees, including officers, were made effective January 30, 2023. The total increase to base salaries for non-union employees and officers was approximately $2.7 million, an average of approximately 4.4%. Base salaries for union employees under contract were increased by 3.2% effective in September 2022 compared to the previous level. The annual effect of this increase was $1.1 million. On February 23, 2023, EPE reached an agreement on the terms of a new collective bargaining agreement with the International Brotherhood of Electrical Workers Local 960, to be effective March 3, 2023, for a five-year term ending March 3, 2028. See Note I of "Notes to Financial Statements."
See Note I of "Notes to Financial Statements."
None. See response to items 1 to 11 and 13 to 14 and Note D of "Notes to Financial Statements."

See changes in officers and directors that occurred during the reporting period in schedule page 104 - Officers and 105 - Directors.
None.

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

COMPARATIVE BALANCE SHEET (ASSETS AND OTHER DEBITS)
Line No.	Title of Account (a)	Ref. Page No. (b)	Current Year End of Quarter/Year Balance (c)	Prior Year End Balance 12/31 (d)
1	UtilityPlantAbstract UTILITY PLANT
2	UtilityPlant Utility Plant (101-106, 114)	200	5,960,015,511	5,729,770,417
3	ConstructionWorkInProgress Construction Work in Progress (107)	200	484,156,394	348,644,980
4	UtilityPlantAndConstructionWorkInProgress TOTAL Utility Plant (Enter Total of lines 2 and 3)		6,444,171,905	6,078,415,397
5	AccumulatedProvisionForDepreciationAmortizationAndDepletionOfPlantUtility (Less) Accum. Prov. for Depr. Amort. Depl. (108, 110, 111, 115)	200	2,662,878,225	2,554,424,917
6	UtilityPlantNet Net Utility Plant (Enter Total of line 4 less 5)		3,781,293,680	3,523,990,480
7	NuclearFuelInProcessOfRefinementConversionEnrichmentAndFabrication Nuclear Fuel in Process of Ref., Conv., Enrich., and Fab. (120.1)	202	0
8	NuclearFuelMaterialsAndAssembliesStockAccountMajorOnly Nuclear Fuel Materials and Assemblies-Stock Account (120.2)		0
9	NuclearFuelAssembliesInReactorMajorOnly Nuclear Fuel Assemblies in Reactor (120.3)		0
10	SpentNuclearFuelMajorOnly Spent Nuclear Fuel (120.4)		0
11	NuclearFuelUnderCapitalLeases Nuclear Fuel Under Capital Leases (120.6)		181,511,827	188,934,611
12	AccumulatedProvisionForAmortizationOfNuclearFuelAssemblies (Less) Accum. Prov. for Amort. of Nucl. Fuel Assemblies (120.5)	202	66,490,274	70,690,478
13	NuclearFuelNet Net Nuclear Fuel (Enter Total of lines 7-11 less 12)		(a) 115,021,553	118,244,133
14	UtilityPlantAndNuclearFuelNet Net Utility Plant (Enter Total of lines 6 and 13)		3,896,315,233	3,642,234,613
15	OtherElectricPlantAdjustments Utility Plant Adjustments (116)		0
16	GasStoredUndergroundNoncurrent Gas Stored Underground - Noncurrent (117)		0
17	OtherPropertyAndInvestmentsAbstract OTHER PROPERTY AND INVESTMENTS
18	NonutilityProperty Nonutility Property (121)		612,262	613,325
19	AccumulatedProvisionForDepreciationAndAmortizationOfNonutilityProperty (Less) Accum. Prov. for Depr. and Amort. (122)		0
20	InvestmentInAssociatedCompanies Investments in Associated Companies (123)		0
21	InvestmentInSubsidiaryCompanies Investment in Subsidiary Companies (123.1)	224	0
23	NoncurrentPortionOfAllowances Noncurrent Portion of Allowances	228	0
24	OtherInvestments Other Investments (124)		1,671,284	1,626,637
25	SinkingFunds Sinking Funds (125)		0
26	DepreciationFund Depreciation Fund (126)		0
27	AmortizationFundFederal Amortization Fund - Federal (127)		0
28	OtherSpecialFunds Other Special Funds (128)		348,815,044	411,725,366
29	SpecialFunds Special Funds (Non Major Only) (129)		0
30	DerivativeInstrumentAssetsLongTerm Long-Term Portion of Derivative Assets (175)		0
31	DerivativeInstrumentAssetsHedgesLongTerm Long-Term Portion of Derivative Assets - Hedges (176)		0
32	OtherPropertyAndInvestments TOTAL Other Property and Investments (Lines 18-21 and 23-31)		351,098,590	413,965,328
33	CurrentAndAccruedAssetsAbstract CURRENT AND ACCRUED ASSETS
34	CashAndWorkingFunds Cash and Working Funds (Non-major Only) (130)		0
35	Cash Cash (131)		4,798,592	5,303,235
36	SpecialDeposits Special Deposits (132-134)		4,666,667	2,500,000
37	WorkingFunds Working Fund (135)		44,581	139,532
38	TemporaryCashInvestments Temporary Cash Investments (136)		8,498,405	435,194
39	NotesReceivable Notes Receivable (141)		0
40	CustomerAccountsReceivable Customer Accounts Receivable (142)		114,934,101	78,537,384
41	OtherAccountsReceivable Other Accounts Receivable (143)		11,956,504	12,832,174
42	AccumulatedProvisionForUncollectibleAccountsCredit (Less) Accum. Prov. for Uncollectible Acct.-Credit (144)		15,434,372	11,921,339
43	NotesReceivableFromAssociatedCompanies Notes Receivable from Associated Companies (145)		0
44	AccountsReceivableFromAssociatedCompanies Accounts Receivable from Assoc. Companies (146)		0
45	FuelStock Fuel Stock (151)	227	2,464,542	3,323,586
46	FuelStockExpensesUndistributed Fuel Stock Expenses Undistributed (152)	227	0	0
47	Residuals Residuals (Elec) and Extracted Products (153)	227	0	0
48	PlantMaterialsAndOperatingSupplies Plant Materials and Operating Supplies (154)	227	90,180,840	72,103,172
49	Merchandise Merchandise (155)	227	0	0
50	OtherMaterialsAndSupplies Other Materials and Supplies (156)	227	0	0
51	NuclearMaterialsHeldForSale Nuclear Materials Held for Sale (157)	202/227	0	0
52	AllowanceInventoryAndWithheld Allowances (158.1 and 158.2)	228	567,683	42,572
53	NoncurrentPortionOfAllowances (Less) Noncurrent Portion of Allowances	228	0
54	StoresExpenseUndistributed Stores Expense Undistributed (163)	227	(b) 35,009	104,096
55	GasStoredCurrent Gas Stored Underground - Current (164.1)		0
56	LiquefiedNaturalGasStoredAndHeldForProcessing Liquefied Natural Gas Stored and Held for Processing (164.2-164.3)		0
57	Prepayments Prepayments (165)		18,667,186	17,421,747
58	AdvancesForGas Advances for Gas (166-167)		0
59	InterestAndDividendsReceivable Interest and Dividends Receivable (171)		50,891	84
60	RentsReceivable Rents Receivable (172)		0
61	AccruedUtilityRevenues Accrued Utility Revenues (173)		25,646,000	23,349,000
62	MiscellaneousCurrentAndAccruedAssets Miscellaneous Current and Accrued Assets (174)		87,713	65,479
63	DerivativeInstrumentAssets Derivative Instrument Assets (175)		0
64	DerivativeInstrumentAssetsLongTerm (Less) Long-Term Portion of Derivative Instrument Assets (175)		0
65	DerivativeInstrumentAssetsHedges Derivative Instrument Assets - Hedges (176)		0
66	DerivativeInstrumentAssetsHedgesLongTerm (Less) Long-Term Portion of Derivative Instrument Assets - Hedges (176)		0
67	CurrentAndAccruedAssets Total Current and Accrued Assets (Lines 34 through 66)		267,164,342	204,027,724
68	DeferredDebitsAbstract DEFERRED DEBITS
69	UnamortizedDebtExpense Unamortized Debt Expenses (181)		12,660,914	11,707,587
70	ExtraordinaryPropertyLosses Extraordinary Property Losses (182.1)	230a	0
71	UnrecoveredPlantAndRegulatoryStudyCosts Unrecovered Plant and Regulatory Study Costs (182.2)	230b	0
72	OtherRegulatoryAssets Other Regulatory Assets (182.3)	232	103,091,796	131,890,609
73	PreliminarySurveyAndInvestigationCharges Prelim. Survey and Investigation Charges (Electric) (183)		1,923,792	1,325,783
74	PreliminaryNaturalGasSurveyAndInvestigationChargesAndOtherPreliminarySurveyAndInvestigationCharges Preliminary Natural Gas Survey and Investigation Charges 183.1)		0
75	OtherPreliminarySurveyAndInvestigationCharges Other Preliminary Survey and Investigation Charges (183.2)		0
76	ClearingAccounts Clearing Accounts (184)		42,891	14,291
77	TemporaryFacilities Temporary Facilities (185)		0
78	MiscellaneousDeferredDebits Miscellaneous Deferred Debits (186)	233	13,344,962	24,536,368
79	DeferredLossesFromDispositionOfUtilityPlant Def. Losses from Disposition of Utility Plt. (187)		0
80	ResearchDevelopmentAndDemonstrationExpenditures Research, Devel. and Demonstration Expend. (188)	352	0
81	UnamortizedLossOnReacquiredDebt Unamortized Loss on Reaquired Debt (189)		12,360,983	13,311,239
82	AccumulatedDeferredIncomeTaxes Accumulated Deferred Income Taxes (190)	234	189,352,558	180,690,929
83	UnrecoveredPurchasedGasCosts Unrecovered Purchased Gas Costs (191)		0
84	DeferredDebits Total Deferred Debits (lines 69 through 83)		332,777,896	363,476,806
85	AssetsAndOtherDebits TOTAL ASSETS (lines 14-16, 32, 67, and 84)		4,847,356,061	4,623,704,471

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

FOOTNOTE DATA

(a) Concept: NuclearFuelNet

All of EPE's nuclear fuel financing is accomplished through the RGRT that has amounts borrowed through the issuance of senior notes and borrowings under a revolving credit facility. The assets and liabilities of the RGRT are reported on EPE's regulatory basis balance sheet. The total amount borrowed for nuclear fuel by the RGRT at December 31, 2022 was $120.8 million of which $10.8 million had been borrowed under the revolving credit facility, and $110 million was borrowed through senior notes.

(b) Concept: StoresExpenseUndistributed

Account 163 total activity for 2022 was $139,105:


Balance at Beginning of Year		Balance at End of Year
$	(104,096)	$	35,009


2022 Activity
$	139,105

Debits and Credits to Account 163 for 2021 and 2022 were as follow:

2021


Debits		Credits
$	2,718,599	$	(2,818,147)


Activity
$	(99,548)

2022


Debits		Credits
$	2,474,166	$	(2,335,061)


Activity
$	139,105

Credits to Stores Expense Undistributed (Account 163) were debited as follows:


CWIP	2021		2022
Production	$	51,048	$	482,886
Transmission	83,529		—
Distribution	149,401		296,161
General	1,566		6,300
Total	$	285,544	$	785,347


Plant
Production	$	19,215	$	177,657
Transmission	26,536		63,035
Distribution	1,328,358		1,024,908
General	1,968		1,037
Total	$	1,376,077	$	1,266,637


Operation and Maintenance
Production	$	947,441	$	147,988
Transmission	2,739		4,354
Distribution	163,241		101,147
Administrative and General	3,792		2,712
Total	$	1,117,213	$	256,201


Other
Other	$	39,313	$	26,876
Total	$	39,313	$	26,876


Total Debits			$	2,818,147		$	2,335,061

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

COMPARATIVE BALANCE SHEET (LIABILITIES AND OTHER CREDITS)
Line No.	Title of Account (a)	Ref. Page No. (b)	Current Year End of Quarter/Year Balance (c)	Prior Year End Balance 12/31 (d)
1	ProprietaryCapitalAbstract PROPRIETARY CAPITAL
2	CommonStockIssued Common Stock Issued (201)	250	10	10
3	PreferredStockIssued Preferred Stock Issued (204)	250	0
4	CapitalStockSubscribed Capital Stock Subscribed (202, 205)		0
5	StockLiabilityForConversion Stock Liability for Conversion (203, 206)		0
6	PremiumOnCapitalStock Premium on Capital Stock (207)		300,000,000	230,000,000
7	OtherPaidInCapital Other Paid-In Capital (208-211)	253	0
8	InstallmentsReceivedOnCapitalStock Installments Received on Capital Stock (212)	252	0
9	DiscountOnCapitalStock (Less) Discount on Capital Stock (213)	254	0
10	CapitalStockExpense (Less) Capital Stock Expense (214)	254b	0
11	RetainedEarnings Retained Earnings (215, 215.1, 216)	118	1,279,435,218	1,328,832,139
12	UnappropriatedUndistributedSubsidiaryEarnings Unappropriated Undistributed Subsidiary Earnings (216.1)	118	0
13	ReacquiredCapitalStock (Less) Reaquired Capital Stock (217)	250	0
14	NoncorporateProprietorship Noncorporate Proprietorship (Non-major only) (218)		0
15	AccumulatedOtherComprehensiveIncome Accumulated Other Comprehensive Income (219)	122(a)(b)	18,426,838	18,729,864
16	ProprietaryCapital Total Proprietary Capital (lines 2 through 15)		1,561,008,390	1,540,102,285
17	LongTermDebtAbstract LONG-TERM DEBT
18	Bonds Bonds (221)	256	159,835,000	159,835,000
19	ReacquiredBonds (Less) Reaquired Bonds (222)	256	0
20	AdvancesFromAssociatedCompanies Advances from Associated Companies (223)	256	0
21	OtherLongTermDebt Other Long-Term Debt (224)	256	1,325,000,000	1,125,000,000
22	UnamortizedPremiumOnLongTermDebt Unamortized Premium on Long-Term Debt (225)		6,109,177	6,263,575
23	UnamortizedDiscountOnLongTermDebtDebit (Less) Unamortized Discount on Long-Term Debt-Debit (226)		2,923,830	3,080,507
24	LongTermDebt Total Long-Term Debt (lines 18 through 23)		1,488,020,347	1,288,018,068
25	OtherNoncurrentLiabilitiesAbstract OTHER NONCURRENT LIABILITIES
26	ObligationsUnderCapitalLeaseNoncurrent Obligations Under Capital Leases - Noncurrent (227)		114,024,838	114,707,837
27	AccumulatedProvisionForPropertyInsurance Accumulated Provision for Property Insurance (228.1)		0
28	AccumulatedProvisionForInjuriesAndDamages Accumulated Provision for Injuries and Damages (228.2)		0
29	AccumulatedProvisionForPensionsAndBenefits Accumulated Provision for Pensions and Benefits (228.3)		57,157,108	66,330,713
30	AccumulatedMiscellaneousOperatingProvisions Accumulated Miscellaneous Operating Provisions (228.4)		0
31	AccumulatedProvisionForRateRefunds Accumulated Provision for Rate Refunds (229)		6,000,000
32	LongTermPortionOfDerivativeInstrumentLiabilities Long-Term Portion of Derivative Instrument Liabilities		0
33	LongTermPortionOfDerivativeInstrumentLiabilitiesHedges Long-Term Portion of Derivative Instrument Liabilities - Hedges		0
34	AssetRetirementObligations Asset Retirement Obligations (230)		142,080,565	130,401,129
35	OtherNoncurrentLiabilities Total Other Noncurrent Liabilities (lines 26 through 34)		319,262,511	311,439,679
36	CurrentAndAccruedLiabilitiesAbstract CURRENT AND ACCRUED LIABILITIES
37	NotesPayable Notes Payable (231)		295,000,000	300,000,000
38	AccountsPayable Accounts Payable (232)		110,860,040	120,403,513
39	NotesPayableToAssociatedCompanies Notes Payable to Associated Companies (233)		0
40	AccountsPayableToAssociatedCompanies Accounts Payable to Associated Companies (234)		0
41	CustomerDeposits Customer Deposits (235)		6,507,134	6,894,124
42	TaxesAccrued Taxes Accrued (236)	262	69,122,933	44,129,379
43	InterestAccrued Interest Accrued (237)		16,505,383	12,287,807
44	DividendsDeclared Dividends Declared (238)		0
45	MaturedLongTermDebt Matured Long-Term Debt (239)		0
46	MaturedInterest Matured Interest (240)		0
47	TaxCollectionsPayable Tax Collections Payable (241)		2,006,444	1,971,520
48	MiscellaneousCurrentAndAccruedLiabilities Miscellaneous Current and Accrued Liabilities (242)		28,947,990	25,844,470
49	ObligationsUnderCapitalLeasesCurrent Obligations Under Capital Leases-Current (243)		11,289,588	18,870,330
50	DerivativesInstrumentLiabilities Derivative Instrument Liabilities (244)		0
51	LongTermPortionOfDerivativeInstrumentLiabilities (Less) Long-Term Portion of Derivative Instrument Liabilities		0
52	DerivativeInstrumentLiabilitiesHedges Derivative Instrument Liabilities - Hedges (245)		0
53	LongTermPortionOfDerivativeInstrumentLiabilitiesHedges (Less) Long-Term Portion of Derivative Instrument Liabilities-Hedges		0
54	CurrentAndAccruedLiabilities Total Current and Accrued Liabilities (lines 37 through 53)		540,239,512	530,401,143
55	DeferredCreditsAbstract DEFERRED CREDITS
56	CustomerAdvancesForConstruction Customer Advances for Construction (252)		41,419,521	36,941,534
57	AccumulatedDeferredInvestmentTaxCredits Accumulated Deferred Investment Tax Credits (255)	266	17,729,902	17,720,077
58	DeferredGainsFromDispositionOfUtilityPlant Deferred Gains from Disposition of Utility Plant (256)		0
59	OtherDeferredCredits Other Deferred Credits (253)	269	33,906,616	33,704,166
60	OtherRegulatoryLiabilities Other Regulatory Liabilities (254)	278	304,472,608	306,338,458
61	UnamortizedGainOnReacquiredDebt Unamortized Gain on Reaquired Debt (257)		0
62	AccumulatedDeferredIncomeTaxesAcceleratedAmortizationProperty Accum. Deferred Income Taxes-Accel. Amort.(281)	272	0
63	AccumulatedDeferredIncomeTaxesOtherProperty Accum. Deferred Income Taxes-Other Property (282)		512,363,290	505,596,996
64	AccumulatedDeferredIncomeTaxesOther Accum. Deferred Income Taxes-Other (283)		28,933,364	53,442,065
65	DeferredCredits Total Deferred Credits (lines 56 through 64)		938,825,301	953,743,296
66	LiabilitiesAndOtherCredits TOTAL LIABILITIES AND STOCKHOLDER EQUITY (lines 16, 24, 35, 54 and 65)		4,847,356,061	4,623,704,471

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

STATEMENT OF INCOME
Quarterly Report in column (c) the current year to date balance. Column (c) equals the total of adding the data in column (g) plus the data in column (i) plus the data in column (k). Report in column (d) similar data for the previous year. This information is reported in the annual filing only. Enter in column (e) the balance for the reporting quarter and in column (f) the balance for the same three month period for the prior year. Report in column (g) the quarter to date amounts for electric utility function; in column (i) the quarter to date amounts for gas utility, and in column (k) the quarter to date amounts for other utility function for the current year quarter. Report in column (h) the quarter to date amounts for electric utility function; in column (j) the quarter to date amounts for gas utility, and in column (l) the quarter to date amounts for other utility function for the prior year quarter. If additional columns are needed, place them in a footnote. Annual or Quarterly if applicable Do not report fourth quarter data in columns (e) and (f) Report amounts for accounts 412 and 413, Revenues and Expenses from Utility Plant Leased to Others, in another utility column in a similar manner to a utility department. Spread the amount(s) over Lines 2 thru 26 as appropriate. Include these amounts in columns (c) and (d) totals. Report amounts in account 414, Other Utility Operating Income, in the same manner as accounts 412 and 413 above. Use page 122 for important notes regarding the statement of income for any account thereof. Give concise explanations concerning unsettled rate proceedings where a contingency exists such that refunds of a material amount may need to be made to the utility's customers or which may result in material refund to the utility with respect to power or gas purchases. State for each year effected the gross revenues or costs to which the contingency relates and the tax effects together with an explanation of the major factors which affect the rights of the utility to retain such revenues or recover amounts paid with respect to power or gas purchases. Give concise explanations concerning significant amounts of any refunds made or received during the year resulting from settlement of any rate proceeding affecting revenues received or costs incurred for power or gas purchases, and a summary of the adjustments made to balance sheet, income, and expense accounts. If any notes appearing in the report to stockholders are applicable to the Statement of Income, such notes may be included at page 122. Enter on page 122 a concise explanation of only those changes in accounting methods made during the year which had an effect on net income, including the basis of allocations and apportionments from those used in the preceding year. Also, give the appropriate dollar effect of such changes. Explain in a footnote if the previous year's/quarter's figures are different from that reported in prior reports. If the columns are insufficient for reporting additional utility departments, supply the appropriate account titles report the information in a footnote to this schedule.
Line No.	Title of Account (a)	(Ref.) Page No. (b)	Total Current Year to Date Balance for Quarter/Year (c)	Total Prior Year to Date Balance for Quarter/Year (d)	Current 3 Months Ended - Quarterly Only - No 4th Quarter (e)	Prior 3 Months Ended - Quarterly Only - No 4th Quarter (f)	Electric Utility Current Year to Date (in dollars) (g)	Electric Utility Previous Year to Date (in dollars) (h)	Gas Utiity Current Year to Date (in dollars) (i)	Gas Utility Previous Year to Date (in dollars) (j)	Other Utility Current Year to Date (in dollars) (k)	Other Utility Previous Year to Date (in dollars) (l)
1	UtilityOperatingIncomeAbstract UTILITY OPERATING INCOME
2	OperatingRevenues Operating Revenues (400)	300	1,310,484,628	1,059,818,108			1,310,484,628	1,059,818,108
3	OperatingExpensesAbstract Operating Expenses
4	OperationExpense Operation Expenses (401)	320	740,348,226	565,643,774			740,348,226	565,643,774
5	MaintenanceExpense Maintenance Expenses (402)	320	74,674,106	83,670,080			74,674,106	83,670,080
6	DepreciationExpense Depreciation Expense (403)	336	122,809,769	104,608,501			122,809,769	104,608,501
7	DepreciationExpenseForAssetRetirementCosts Depreciation Expense for Asset Retirement Costs (403.1)	336	1,350,702	1,329,631			1,350,702	1,329,631
8	AmortizationAndDepletionOfUtilityPlant Amort. & Depl. of Utility Plant (404-405)	336	11,703,034	10,430,867			11,703,034	10,430,867
9	AmortizationOfElectricPlantAcquisitionAdjustments Amort. of Utility Plant Acq. Adj. (406)	336
10	AmortizationOfPropertyLossesUnrecoveredPlantAndRegulatoryStudyCosts Amort. Property Losses, Unrecov Plant and Regulatory Study Costs (407)
11	AmortizationOfConversionExpenses Amort. of Conversion Expenses (407.2)
12	RegulatoryDebits Regulatory Debits (407.3)		2,316,560	1,361,701			2,316,560	1,361,701
13	RegulatoryCredits (Less) Regulatory Credits (407.4)
14	TaxesOtherThanIncomeTaxesUtilityOperatingIncome Taxes Other Than Income Taxes (408.1)	262	89,371,160	80,409,928			89,371,160	80,409,928
15	IncomeTaxesOperatingIncome Income Taxes - Federal (409.1)	262	53,311,758	16,486,386			53,311,758	16,486,386
16	IncomeTaxesUtilityOperatingIncomeOther Income Taxes - Other (409.1)	262	5,320,059	2,413,071			5,320,059	2,413,071
17	ProvisionsForDeferredIncomeTaxesUtilityOperatingIncome Provision for Deferred Income Taxes (410.1)	234, 272	51,906,425	70,240,844			51,906,425	70,240,844
18	ProvisionForDeferredIncomeTaxesCreditOperatingIncome (Less) Provision for Deferred Income Taxes-Cr. (411.1)	234, 272	87,406,970	60,912,711			87,406,970	60,912,711
19	InvestmentTaxCreditAdjustments Investment Tax Credit Adj. - Net (411.4)	266	9,825	1,619,641			9,825	1,619,641
20	GainsFromDispositionOfPlant (Less) Gains from Disp. of Utility Plant (411.6)
21	LossesFromDispositionOfServiceCompanyPlant Losses from Disp. of Utility Plant (411.7)
22	GainsFromDispositionOfAllowances (Less) Gains from Disposition of Allowances (411.8)
23	LossesFromDispositionOfAllowances Losses from Disposition of Allowances (411.9)
24	AccretionExpense Accretion Expense (411.10)		11,747,476	10,727,374			11,747,476	10,727,374
25	UtilityOperatingExpenses TOTAL Utility Operating Expenses (Enter Total of lines 4 thru 24)		1,074,760,726	882,130,543			1,074,760,726	882,130,543
27	NetUtilityOperatingIncome Net Util Oper Inc (Enter Tot line 2 less 25)		235,723,902	177,687,565			235,723,902	177,687,565
28	OtherIncomeAndDeductionsAbstract Other Income and Deductions
29	OtherIncomeAbstract Other Income
30	NonutilityOperatingIncomeAbstract Nonutilty Operating Income
31	RevenuesFromMerchandisingJobbingAndContractWork Revenues From Merchandising, Jobbing and Contract Work (415)		727,330	725,734
32	CostsAndExpensesOfMerchandisingJobbingAndContractWork (Less) Costs and Exp. of Merchandising, Job. & Contract Work (416)		1,107,991	982,702
33	RevenuesFromNonutilityOperations Revenues From Nonutility Operations (417)
34	ExpensesOfNonutilityOperations (Less) Expenses of Nonutility Operations (417.1)
35	NonoperatingRentalIncome Nonoperating Rental Income (418)
36	EquityInEarningsOfSubsidiaryCompanies Equity in Earnings of Subsidiary Companies (418.1)	119
37	InterestAndDividendIncome Interest and Dividend Income (419)		7,383,604	5,935,842
38	AllowanceForOtherFundsUsedDuringConstruction Allowance for Other Funds Used During Construction (419.1)		7,802,304	5,212,580
39	MiscellaneousNonoperatingIncome Miscellaneous Nonoperating Income (421)		5,057,767	43,121,504
40	GainOnDispositionOfProperty Gain on Disposition of Property (421.1)		8,266	18,000
41	OtherIncome TOTAL Other Income (Enter Total of lines 31 thru 40)		19,871,280	54,030,958
42	OtherIncomeDeductionsAbstract Other Income Deductions
43	LossOnDispositionOfProperty Loss on Disposition of Property (421.2)		116,935	676,389
44	MiscellaneousAmortization Miscellaneous Amortization (425)
45	Donations Donations (426.1)		1,594,069	1,628,686
46	LifeInsurance Life Insurance (426.2)		305,148	289,367
47	Penalties Penalties (426.3)		16,848	15
48	ExpendituresForCertainCivicPoliticalAndRelatedActivities Exp. for Certain Civic, Political & Related Activities (426.4)		382,408	831,772
49	OtherDeductions Other Deductions (426.5)		71,225,258	1,169,939
50	OtherIncomeDeductions TOTAL Other Income Deductions (Total of lines 43 thru 49)		73,640,666	4,596,168
51	TaxesApplicableToOtherIncomeAndDeductionsAbstract Taxes Applic. to Other Income and Deductions
52	TaxesOtherThanIncomeTaxesOtherIncomeAndDeductions Taxes Other Than Income Taxes (408.2)	262	12,872	18,194
53	IncomeTaxesFederal Income Taxes-Federal (409.2)	262	61,760	12,532,232
54	IncomeTaxesOther Income Taxes-Other (409.2)	262	52,078	456,740
55	ProvisionForDeferredIncomeTaxesOtherIncomeAndDeductions Provision for Deferred Inc. Taxes (410.2)	234, 272	9,175,130	13,173,950
56	ProvisionForDeferredIncomeTaxesCreditOtherIncomeAndDeductions (Less) Provision for Deferred Income Taxes-Cr. (411.2)	234, 272	20,991,279	16,457,614
57	InvestmentTaxCreditAdjustmentsNonutilityOperations Investment Tax Credit Adj.-Net (411.5)
58	InvestmentTaxCredits (Less) Investment Tax Credits (420)
59	TaxesOnOtherIncomeAndDeductions TOTAL Taxes on Other Income and Deductions (Total of lines 52-58)		11,917,115	9,723,502
60	NetOtherIncomeAndDeductions Net Other Income and Deductions (Total of lines 41, 50, 59)		41,852,271	39,711,288
61	InterestChargesAbstract Interest Charges
62	InterestOnLongTermDebt Interest on Long-Term Debt (427)		77,795,586	71,130,652
63	AmortizationOfDebtDiscountAndExpense Amort. of Debt Disc. and Expense (428)		1,188,549	1,096,678
64	AmortizationOfLossOnReacquiredDebt Amortization of Loss on Reaquired Debt (428.1)		950,256	950,256
65	AmortizationOfPremiumOnDebtCredit (Less) Amort. of Premium on Debt-Credit (429)		154,398	147,282
66	AmortizationOfGainOnReacquiredDebtCredit (Less) Amortization of Gain on Reaquired Debt-Credit (429.1)
67	InterestOnDebtToAssociatedCompanies Interest on Debt to Assoc. Companies (430)
68	OtherInterestExpense Other Interest Expense (431)		6,654,698	2,102,262
69	AllowanceForBorrowedFundsUsedDuringConstructionCredit (Less) Allowance for Borrowed Funds Used During Construction-Cr. (432)		5,883,139	3,948,821
70	NetInterestCharges Net Interest Charges (Total of lines 62 thru 69)		80,551,552	71,183,745
71	IncomeBeforeExtraordinaryItems Income Before Extraordinary Items (Total of lines 27, 60 and 70)		113,320,079	146,215,108
72	ExtraordinaryItemsAbstract Extraordinary Items
73	ExtraordinaryIncome Extraordinary Income (434)
74	ExtraordinaryDeductions (Less) Extraordinary Deductions (435)
75	NetExtraordinaryItems Net Extraordinary Items (Total of line 73 less line 74)
76	IncomeTaxesExtraordinaryItems Income Taxes-Federal and Other (409.3)	262	0
77	ExtraordinaryItemsAfterTaxes Extraordinary Items After Taxes (line 75 less line 76)
78	NetIncomeLoss Net Income (Total of line 71 and 77)		113,320,079	146,215,108

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

STATEMENT OF RETAINED EARNINGS
Do not report Lines 49-53 on the quarterly report. Report all changes in appropriated retained earnings, unappropriated retained earnings, and unappropriated undistributed subsidiary earnings for the year. Each credit and debit during the year should be identified as to the retained earnings account in which recorded (Accounts 433, 436-439 inclusive). Show the contra primary account affected in column (b). State the purpose and amount for each reservation or appropriation of retained earnings. List first Account 439, Adjustments to Retained Earnings, reflecting adjustments to the opening balance of retained earnings. Follow by credit, then debit items, in that order. Show dividends for each class and series of capital stock. Show separately the State and Federal income tax effect of items shown for Account 439, Adjustments to Retained Earnings. Explain in a footnote the basis for determining the amount reserved or appropriated. If such reservation or appropriation is to be recurrent, state the number and annual amounts to be reserved or appropriated as well as the totals eventually to be accumulated. If any notes appearing in the report to stockholders are applicable to this statement, attach them at page 122.
Line No.	Item (a)	Contra Primary Account Affected (b)	Current Quarter/Year Year to Date Balance (c)	Previous Quarter/Year Year to Date Balance (d)
	UnappropriatedRetainedEarningsAbstract UNAPPROPRIATED RETAINED EARNINGS (Account 216)
1	UnappropriatedRetainedEarnings Balance-Beginning of Period		1,328,832,139	1,310,993,031
2	ChangesAbstract Changes
3	AdjustmentsToRetainedEarningsAbstract Adjustments to Retained Earnings (Account 439)
4	AdjustmentsToRetainedEarningsCreditAbstract Adjustments to Retained Earnings Credit
9	AdjustmentsToRetainedEarningsCredit TOTAL Credits to Retained Earnings (Acct. 439)
10	AdjustmentsToRetainedEarningsDebitAbstract Adjustments to Retained Earnings Debit
15	AdjustmentsToRetainedEarningsDebit TOTAL Debits to Retained Earnings (Acct. 439)
16	BalanceTransferredFromIncome Balance Transferred from Income (Account 433 less Account 418.1)		113,320,079	146,215,108
17	AppropriationsOfRetainedEarningsAbstract Appropriations of Retained Earnings (Acct. 436)
22	AppropriationsOfRetainedEarnings TOTAL Appropriations of Retained Earnings (Acct. 436)
23	DividendsDeclaredPreferredStockAbstract Dividends Declared-Preferred Stock (Account 437)
29	DividendsDeclaredPreferredStock TOTAL Dividends Declared-Preferred Stock (Acct. 437)
30	DividendsDeclaredCommonStockAbstract Dividends Declared-Common Stock (Account 438)
30.1	DividendsDeclaredCommonStock Class: Common Stock $0.01 Par Value		162,717,000	128,376,000
36	DividendsDeclaredCommonStock TOTAL Dividends Declared-Common Stock (Acct. 438)		162,717,000	128,376,000
37	TransfersFromUnappropriatedUndistributedSubsidiaryEarnings Transfers from Acct 216.1, Unapprop. Undistrib. Subsidiary Earnings
38	UnappropriatedRetainedEarnings Balance - End of Period (Total 1,9,15,16,22,29,36,37)		1,279,435,218	1,328,832,139
39	AppropriatedRetainedEarningsAbstract APPROPRIATED RETAINED EARNINGS (Account 215)
45	AppropriatedRetainedEarnings TOTAL Appropriated Retained Earnings (Account 215)
	AppropriatedRetainedEarningsAmortizationReserveFederalAbstract APPROP. RETAINED EARNINGS - AMORT. Reserve, Federal (Account 215.1)
46	AppropriatedRetainedEarningsAmortizationReserveFederal TOTAL Approp. Retained Earnings-Amort. Reserve, Federal (Acct. 215.1)
47	AppropriatedRetainedEarningsIncludingReserveAmortization TOTAL Approp. Retained Earnings (Acct. 215, 215.1) (Total 45,46)
48	RetainedEarnings TOTAL Retained Earnings (Acct. 215, 215.1, 216) (Total 38, 47) (216.1)		1,279,435,218	1,328,832,139
	UnappropriatedUndistributedSubsidiaryEarningsAbstract UNAPPROPRIATED UNDISTRIBUTED SUBSIDIARY EARNINGS (Account Report only on an Annual Basis, no Quarterly)
49	UnappropriatedUndistributedSubsidiaryEarnings Balance-Beginning of Year (Debit or Credit)
50	EquityInEarningsOfSubsidiaryCompanies Equity in Earnings for Year (Credit) (Account 418.1)
51	DividendsReceived (Less) Dividends Received (Debit)
52	ChangesUnappropriatedUndistributedSubsidiaryEarningsCredits TOTAL other Changes in unappropriated undistributed subsidiary earnings for the year
53	UnappropriatedUndistributedSubsidiaryEarnings Balance-End of Year (Total lines 49 thru 52)		0

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

STATEMENT OF CASH FLOWS
Codes to be used:(a) Net Proceeds or Payments;(b)Bonds, debentures and other long-term debt; (c) Include commercial paper; and (d) Identify separately such items as investments, fixed assets, intangibles, etc. Information about noncash investing and financing activities must be provided in the Notes to the Financial statements. Also provide a reconciliation between "Cash and Cash Equivalents at End of Period" with related amounts on the Balance Sheet. Operating Activities - Other: Include gains and losses pertaining to operating activities only. Gains and losses pertaining to investing and financing activities should be reported in those activities. Show in the Notes to the Financials the amounts of interest paid (net of amount capitalized) and income taxes paid. Investing Activities: Include at Other (line 31) net cash outflow to acquire other companies. Provide a reconciliation of assets acquired with liabilities assumed in the Notes to the Financial Statements. Do not include on this statement the dollar amount of leases capitalized per the USofA General Instruction 20; instead provide a reconciliation of the dollar amount of leases capitalized with the plant cost.
Line No.	Description (See Instructions No.1 for explanation of codes) (a)	Current Year to Date Quarter/Year (b)	Previous Year to Date Quarter/Year (c)
1	NetCashFlowFromOperatingActivitiesAbstract Net Cash Flow from Operating Activities
2	NetIncomeLoss Net Income (Line 78(c) on page 117)	113,320,079	146,215,108
3	NoncashChargesCreditsToIncomeAbstract Noncash Charges (Credits) to Income:
4	DepreciationAndDepletion Depreciation and Depletion	122,809,769	104,608,501
5	NoncashAdjustmentsToCashFlowsFromOperatingActivities Amortization of (Specify) (footnote details)
5.1	NoncashAdjustmentsToCashFlowsFromOperatingActivitiesDescription Amortization of Other	32,579,879	26,707,666
5.2	NoncashAdjustmentsToCashFlowsFromOperatingActivitiesDescription Amortization of Nuclear Fuel	35,641,022	38,504,815
8	DeferredIncomeTaxesNet Deferred Income Taxes (Net)	47,316,694	6,044,469
9	InvestmentTaxCreditAdjustmentsNet Investment Tax Credit Adjustment (Net)	9,825	1,619,641
10	NetIncreaseDecreaseInReceivablesOperatingActivities Net (Increase) Decrease in Receivables	31,262,080	11,001,131
11	NetIncreaseDecreaseInInventoryOperatingActivities Net (Increase) Decrease in Inventory	8,272,270	8,079,205
12	NetIncreaseDecreaseInAllowancesInventoryOperatingActivities Net (Increase) Decrease in Allowances Inventory	525,111	14,039
13	NetIncreaseDecreaseInPayablesAndAccruedExpensesOperatingActivities Net Increase (Decrease) in Payables and Accrued Expenses	29,379,486	28,220,112
14	NetIncreaseDecreaseInOtherRegulatoryAssetsOperatingActivities Net (Increase) Decrease in Other Regulatory Assets	31,727,820	44,928,947
15	NetIncreaseDecreaseInOtherRegulatoryLiabilitiesOperatingActivities Net Increase (Decrease) in Other Regulatory Liabilities	20,611,619	191,670
16	AllowanceForOtherFundsUsedDuringConstructionOperatingActivities (Less) Allowance for Other Funds Used During Construction	7,802,304	5,212,580
17	UndistributedEarningsFromSubsidiaryCompaniesOperatingActivities (Less) Undistributed Earnings from Subsidiary Companies
18	OtherAdjustmentsToCashFlowsFromOperatingActivities Other (provide details in footnote):
18.1	OtherAdjustmentsToCashFlowsFromOperatingActivitiesDescription Other:
18.2	OtherAdjustmentsToCashFlowsFromOperatingActivitiesDescription Net (Gains) Losses on Decommissioning Trust Funds	70,788,830	38,482,337
18.3	OtherAdjustmentsToCashFlowsFromOperatingActivitiesDescription Amortization of Unearned Compensation	1,789,349	783,888
18.4	OtherAdjustmentsToCashFlowsFromOperatingActivitiesDescription Gain on Life Insurance	466,058
18.5	OtherAdjustmentsToCashFlowsFromOperatingActivitiesDescription Net (Gains) Losses on Sale of Property, Plant and Equipment	108,669	18,000
18.6	OtherAdjustmentsToCashFlowsFromOperatingActivitiesDescription Unrealized Gains on Investments in Debt Securities	47,338	22,554
18.7	OtherAdjustmentsToCashFlowsFromOperatingActivitiesDescription Other Operating Activities	80,996	86,547
18.8	OtherAdjustmentsToCashFlowsFromOperatingActivitiesDescription Deferred Charges and Credits	16,655,489	13,447,154
18.9	OtherAdjustmentsToCashFlowsFromOperatingActivitiesDescription Net (Increase) Decrease in Prepayments and Other	4,285,974	458,731
22	NetCashFlowFromOperatingActivities Net Cash Provided by (Used in) Operating Activities (Total of Lines 2 thru 21)	342,214,025	228,439,485
24	CashFlowsFromInvestmentActivitiesAbstract Cash Flows from Investment Activities:
25	ConstructionAndAcquisitionOfPlantIncludingLandAbstract Construction and Acquisition of Plant (including land):
26	GrossAdditionsToUtilityPlantLessNuclearFuelInvestingActivities Gross Additions to Utility Plant (less nuclear fuel)	397,318,121	354,538,451
27	GrossAdditionsToNuclearFuelInvestingActivities Gross Additions to Nuclear Fuel	32,218,670	31,286,940
28	GrossAdditionsToCommonUtilityPlantInvestingActivities Gross Additions to Common Utility Plant
29	GrossAdditionsToNonutilityPlantInvestingActivities Gross Additions to Nonutility Plant
30	AllowanceForOtherFundsUsedDuringConstructionInvestingActivities (Less) Allowance for Other Funds Used During Construction	7,802,304	5,212,580
31	OtherConstructionAndAcquisitionOfPlantInvestmentActivities Other (provide details in footnote):
31.1	OtherConstructionAndAcquisitionOfPlantInvestmentActivitiesDescription Other (provide details in footnote):
34	CashOutflowsForPlant Cash Outflows for Plant (Total of lines 26 thru 33)	421,734,487	380,612,811
36	AcquisitionOfOtherNoncurrentAssets Acquisition of Other Noncurrent Assets (d)
37	ProceedsFromDisposalOfNoncurrentAssets Proceeds from Disposal of Noncurrent Assets (d)	167,143	24,000
39	InvestmentsInAndAdvancesToAssociatedAndSubsidiaryCompanies Investments in and Advances to Assoc. and Subsidiary Companies
40	ContributionsAndAdvancesFromAssociatedAndSubsidiaryCompanies Contributions and Advances from Assoc. and Subsidiary Companies
41	DispositionOfInvestmentsInAndAdvancesToAssociatedAndSubsidiaryCompaniesAbstract Disposition of Investments in (and Advances to)
42	DispositionOfInvestmentsInAndAdvancesToAssociatedAndSubsidiaryCompanies Disposition of Investments in (and Advances to) Associated and Subsidiary Companies
44	PurchaseOfInvestmentSecurities Purchase of Investment Securities (a)
45	ProceedsFromSalesOfInvestmentSecurities Proceeds from Sales of Investment Securities (a)
46	LoansMadeOrPurchased Loans Made or Purchased
47	CollectionsOnLoans Collections on Loans
49	NetIncreaseDecreaseInReceivablesInvestingActivities Net (Increase) Decrease in Receivables
50	NetIncreaseDecreaseInInventoryInvestingActivities Net (Increase) Decrease in Inventory
51	NetIncreaseDecreaseInAllowancesHeldForSpeculationInvestingActivities Net (Increase) Decrease in Allowances Held for Speculation
52	NetIncreaseDecreaseInPayablesAndAccruedExpensesInvestingActivities Net Increase (Decrease) in Payables and Accrued Expenses
53	OtherAdjustmentsToCashFlowsFromInvestmentActivities Other (provide details in footnote):
53.1	OtherAdjustmentsToCashFlowsFromInvestmentActivitiesDescription Proceeds from Life Insurance	498,860	602,300
53.2	OtherAdjustmentsToCashFlowsFromInvestmentActivitiesDescription Other (provide details in footnote):
53.3	OtherAdjustmentsToCashFlowsFromInvestmentActivitiesDescription Investment in Decommissioning Trust Fund (Purchases)	16,480,435	140,670,777
53.4	OtherAdjustmentsToCashFlowsFromInvestmentActivitiesDescription Investment in Decommissioning Trust Fund (Sales and Maturities)	9,048,041	141,743,676
53.5	OtherAdjustmentsToCashFlowsFromInvestmentActivitiesDescription Others
53.6	OtherAdjustmentsToCashFlowsFromInvestmentActivitiesDescription Net Customer Advances for Construction	4,477,987	5,186,996
53.7	OtherAdjustmentsToCashFlowsFromInvestmentActivitiesDescription Net Salvage Value and Cost of Removal	2,885,229	3,371,729
53.8	OtherAdjustmentsToCashFlowsFromInvestmentActivitiesDescription Customer Revenue Agreements	1,510,249	1,786,560
53.9	OtherAdjustmentsToCashFlowsFromInvestmentActivitiesDescription Disposal of other	17,230
57	CashFlowsProvidedFromUsedInInvestmentActivities Net Cash Provided by (Used in) Investing Activities (Total of lines 34 thru 55)	425,415,101	375,311,785
59	CashFlowsFromFinancingActivitiesAbstract Cash Flows from Financing Activities:
60	ProceedsFromIssuanceAbstract Proceeds from Issuance of:
61	ProceedsFromIssuanceOfLongTermDebtFinancingActivities Long-Term Debt (b)	350,000,000
62	ProceedsFromIssuanceOfPreferredStockFinancingActivities Preferred Stock
63	ProceedsFromIssuanceOfCommonStockFinancingActivities Common Stock
64	OtherAdjustmentsToCashFlowsFromFinancingActivities Other (provide details in footnote):
64.1	OtherAdjustmentsToCashFlowsFromFinancingActivitiesDescription Other (provide details in footnote):
64.2	OtherAdjustmentsToCashFlowsFromFinancingActivitiesDescription Financing and Other Capital Lease Obligations - Proceeds	397,011,815	686,102,515
64.3	OtherAdjustmentsToCashFlowsFromFinancingActivitiesDescription Equity Contribution from Sun Jupiter Holdings LLC	70,000,000	105,000,000
66	NetIncreaseInShortTermDebt Net Increase in Short-Term Debt (c)
67	OtherAdjustmentsByOutsideSourcesToCashFlowsFromFinancingActivities Other (provide details in footnote):
67.1	DescriptionForOtherAdjustmentsByOutsideSourcesToCashFlowsFromFinancingActivities Other (provide details in footnote):
70	CashProvidedByOutsideSources Cash Provided by Outside Sources (Total 61 thru 69)	817,011,815	791,102,515
72	PaymentsForRetirementAbstract Payments for Retirement of:
73	PaymentsForRetirementOfLongTermDebtFinancingActivities Long-term Debt (b)	150,000,000
74	PaymentsForRetirementOfPreferredStockFinancingActivities Preferred Stock
75	PaymentsForRetirementOfCommonStockFinancingActivities Common Stock
76	OtherRetirementsOfBalancesImpactingCashFlowsFromFinancingActivities Other (provide details in footnote):
76.1	DescriptionOfOtherRetirementsImpactingCashFlowsFromFinancingActivities Other: (provide details in footnote):
76.2	DescriptionOfOtherRetirementsImpactingCashFlowsFromFinancingActivities Issuance Costs Related to Senior Notes	2,026,917
76.3	DescriptionOfOtherRetirementsImpactingCashFlowsFromFinancingActivities Other Financing Activities	25,000	15,903
76.4	DescriptionOfOtherRetirementsImpactingCashFlowsFromFinancingActivities Issuance Costs Related to RGRT Senior Notes	2,775	408,246
76.5	DescriptionOfOtherRetirementsImpactingCashFlowsFromFinancingActivities Financing and other Capital Lease Obligations - Payments	409,408,763	516,427,542
78	NetDecreaseInShortTermDebt Net Decrease in Short-Term Debt (c)
80	DividendsOnPreferredStock Dividends on Preferred Stock
81	DividendsOnCommonStock Dividends on Common Stock	162,717,000	128,376,000
83	CashFlowsProvidedFromUsedInFinancingActivities Net Cash Provided by (Used in) Financing Activities (Total of lines 70 thru 81)	92,831,360	145,874,824
85	NetIncreaseDecreaseInCashAndCashEquivalentsAbstract Net Increase (Decrease) in Cash and Cash Equivalents
86	NetIncreaseDecreaseInCashAndCashEquivalents Net Increase (Decrease) in Cash and Cash Equivalents (Total of line 22, 57 and 83)	9,630,284	997,476
88	CashAndCashEquivalents Cash and Cash Equivalents at Beginning of Period	8,377,961	9,375,437
90	CashAndCashEquivalents Cash and Cash Equivalents at End of Period	18,008,245	8,377,961

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

NOTES TO FINANCIAL STATEMENTS

Use the space below for important notes regarding the Balance Sheet, Statement of Income for the year, Statement of Retained Earnings for the year, and Statement of Cash Flows, or any account thereof. Classify the notes according to each basic statement, providing a subheading for each statement except where a note is applicable to more than one statement.
Furnish particulars (details) as to any significant contingent assets or liabilities existing at end of year, including a brief explanation of any action initiated by the Internal Revenue Service involving possible assessment of additional income taxes of material amount, or of a claim for refund of income taxes of a material amount initiated by the utility. Give also a brief explanation of any dividends in arrears on cumulative preferred stock.
For Account 116, Utility Plant Adjustments, explain the origin of such amount, debits and credits during the year, and plan of disposition contemplated, giving references to Cormmission orders or other authorizations respecting classification of amounts as plant adjustments and requirements as to disposition thereof.
Where Accounts 189, Unamortized Loss on Reacquired Debt, and 257, Unamortized Gain on Reacquired Debt, are not used, give an explanation, providing the rate treatment given these items. See General Instruction 17 of the Uniform System of Accounts.
Give a concise explanation of any retained earnings restrictions and state the amount of retained earnings affected by such restrictions.
If the notes to financial statements relating to the respondent company appearing in the annual report to the stockholders are applicable and furnish the data required by instructions above and on pages 114-121, such notes may be included herein.
For the 3Q disclosures, respondent must provide in the notes sufficient disclosures so as to make the interim information not misleading. Disclosures which would substantially duplicate the disclosures contained in the most recent FERC Annual Report may be omitted.
For the 3Q disclosures, the disclosures shall be provided where events subsequent to the end of the most recent year have occurred which have a material effect on the respondent. Respondent must include in the notes significant changes since the most recently completed year in such items as: accounting principles and practices; estimates inherent in the preparation of the financial statements; status of long-term contracts; capitalization including significant new borrowings or modifications of existing financing agreements; and changes resulting from business combinations or dispositions. However were material contingencies exist, the disclosure of such matters shall be provided even though a significant change since year end may not have occurred.
Finally, if the notes to the financial statements relating to the respondent appearing in the annual report to the stockholders are applicable and furnish the data required by the above instructions, such notes may be included herein.

Note A. Regulatory-Basis Financial Statements

The accompanying regulatory-basis financial statements are presented in accordance with the accounting requirements of the Federal Energy Regulatory Commission (the "FERC") as set forth in its applicable Uniform System of Accounts and published accounting releases which is a comprehensive basis of accounting other than United States ("U.S.") Generally Accepted Accounting Principles ("GAAP"). Notes A through N of the regulatory-basis financial statements are from the December 31, 2022 GAAP Financial Statements and have been revised where the presentation of regulatory-basis financial statements, in accordance with requirements under the Uniform System of Accounts and published accounting releases of the FERC, result in different financial statement amounts or disclosures than under GAAP. Because many types of transactions are susceptible to varying interpretations, the amounts and classifications reported in the accompanying regulatory-basis financial statements may be subject to change at a later date upon final determination by the FERC. The information contained in Notes A through N is supplemented for additional regulatory-basis disclosures.

Regulatory-Basis Financial Statements Compared to GAAP

The significant differences between El Paso Electric Company's ("EPE") regulatory-basis financial statements and those prepared in accordance with GAAP include the application of fresh-start reporting to the GAAP financial statements and the discontinuance and subsequent re-application of the provisions of Financial Accounting Standards Board (the "FASB") accounting guidance for regulated operations. In 1996, EPE adopted fresh-start reporting for its GAAP financial statements in accordance with the FASB guidance related to financial reporting by entities in reorganization under the U.S. Bankruptcy Code. The adoption of fresh-start reporting resulted in the creation of a new reporting entity having no retained earnings or accumulated deficit and significantly altered, compromised, or modified EPE's historical capital structure.

In addition, certain items in the accompanying regulatory-basis financial statements are classified differently under FERC requirements than in EPE's GAAP financial statements. If GAAP were followed, items in the accompanying regulatory-basis financial statements would be increased (decreased) as follows (in thousands):


Line No.		2022		2021
	Assets and Other Debits (Pages 110-111)
2	Utility plant	$	(925,455)	$	(929,931)
3	Construction work in progress	(45,295)		(15,575)
5	Accumulated provision for depreciation, amortization and depletion	(915,720)		(920,074)
11	Nuclear fuel under capital lease	(1,693)		(1,624)
12	Accumulated provision for amortization of nuclear fuel	(1,057)		(975)
18	Non utility property	(612)		(613)
24	Other investments	(1,671)		(1,627)
28	Other special funds	(348,815)		(411,725)
67	Total current and accrued assets	12,831		57,497
84	Total deferred debits	171,713		168,987

	Liabilities and Other Credits (Pages 112-113)
11	Retained earnings	$	(21,132)	$	(20,169)
15	Accumulated other comprehensive income	(265)		(688)
24	Total long-term debt	97,485		(109,612)
35	Total other noncurrent liabilities	(319,263)		(311,439)
54	Total current and accrued liabilities	48,876		232,166
65	Total deferred credits	(27,921)		(3,820)

	Statements of Income for the Year (Pages 114-117)
25	Total utility operating expenses	$	(3,688)	$	(12,013)
26	Net utility operating income	3,688		12,013
60	Net other income and deductions	16,109		31,850
70	Net interest charges	8,797		7,165
78	Net income	(964)		(499)

	Statement of Retained Earnings (Pages 118-119)
1	Balance – beginning of period	$	(20,168)	$	(19,669)
48	Total retained earnings	(21,132)		(20,168)

	Statement of Cash Flows (Pages 120-121)
22	Net cash provided by (used in) operating activities	$	(30,762)	$	(11,538)
57	Net cash provided by (used in) investing activities	30,762		11,538

	Statement of Accumulated Comprehensive Income, Comprehensive Income and Hedging Activities (Page 122a-122b)
9	Other comprehensive income	$	423	$	(56)

Statement of Cash Flows

Cash and cash equivalents and amortization of other presented on the statement of cash flows for the years ended December 31, 2022 and 2021 consist of the following (in thousands):


	2022			2021
Cash and Cash Equivalents:
Cash (131)	$		4,799	$		5,303
Special deposits (132-134)	4,667			2,500
Working funds (135)	44			140
Temporary cash investments (136)	8,498			435
Cash and cash equivalents at end of period	$		18,008	$		8,378
				.
Amortization of Other:
ARO depreciation (403.1)	$	(1,351)		$	(1,330)
Other utility plant (404)	11,703			10,431
Regulatory assets (407.3)	2,317			1,362
ARO accretion expense (411.10)	11,747			10,727
Debt expense (428)	1,189			1,097
Loss on reacquired debt (428.1)	950			950
Debt premium (429)	(154)			(147)
Interest rate lock losses	735			689
Operating lease assets amortization	717			713
Nuclear fuel financing issuance costs	83			141
Dry cask storage amortization	3,014			1,137
Coal reclamation amortization	817			739
Texas rate case amortization	487			36
New Mexico rate case amortization	326			163
	$		32,580	$		26,708

Summary of Significant Accounting Policies

General. EPE is a utility engaged in the generation, transmission and distribution of electricity in an area of approximately 10,000 square miles in west Texas and southern New Mexico. EPE also serves a full requirements wholesale customer in Texas. EPE is regulated by the Public Utility Commission of Texas ("PUCT"), the New Mexico Public Regulation Commission ("NMPRC"), and the FERC. On July 29, 2020, Sun Jupiter Holdings, LLC merged with and into EPE (the "Merger"), with EPE continuing as the surviving corporation in the Merger and becoming a wholly owned subsidiary of Sun Jupiter Holdings, LLC.

Coronavirus Disease 2019 ("COVID-19") Impacts. Since the outbreak of COVID-19, federal, state, and local governments have imposed varying degrees of restrictions on businesses and the social activities of citizens. In addition, both the PUCT and the NMPRC issued moratoriums preventing utilities from disconnecting service to their customers due to nonpayment. The Texas moratorium on disconnections expired on August 31, 2020, and the New Mexico moratorium on residential customers expired on August 12, 2021. EPE initiated the process of resumption of disconnection in mid-January 2021 for Texas customers and New Mexico nonresidential customers. In August 2021, EPE resumed the disconnection process for New Mexico residential customers.

EPE has observed a change in patterns of usage by customers. Generally, declines in usage by public authority and commercial customers have been offset by increases in usage by residential customers. Through the date of this report, EPE also experienced decreases in its collections primarily related to its residential and commercial customers. In response to COVID-19, EPE has increased its allowance for credit losses to $16.5 million and $11.3 million as of December 31, 2022 and 2021, respectively. This includes an increase of $5.2 million and $7.3 million in the years ended December 31, 2022 and 2021,

respectively, to take into account the estimated impact of COVID-19. EPE is continuing to monitor its collection rates and bad debt write-offs and will record additional allowances as appropriate. EPE incurred other incremental operations and maintenance ("O&M") costs related to COVID-19 of approximately $1.8 million in the year ended December 31, 2021, including contractors, medical claims, repairs and maintenance, material supplies, and rentals. In 2022, EPE did not incur material incremental operation and maintenance costs related to COVID-19. Additionally, the impacts of COVID-19 on manufacturing capabilities, rising inflation, and the global workforce have continued to put increasing pressure on the electric industry's supply chain. The industry continues to experience critical shortages of raw materials, critical equipment, skilled labor, and delivery/shipping availability while lead times for new production of critical equipment have remained extended. EPE continues to monitor current conditions to ensure the continuation of safe and reliable service to customers.

On September 9, 2021, President Joe Biden signed Executive Order 14042 directing the Safer Federal Workforce Task Force ("SFWTF") to issue guidance for federal contractors and subcontractors, like EPE. The SFWTF guidance was issued on September 24, 2021, and incorporated by reference in a new federal acquisition regulation ("FAR 52.223-99") on September 30, 2021. On October 7, 2021, the federal General Services Administration requested EPE to amend its 10-year area wide agreement governing EPE's business with federal entities in its service territory by adopting FAR 52.223-99 by November 14, 2021, and remain in good standing as a federal contractor. On December 7, 2021, enforcement of FAR 52.223-99 was suspended under a nationwide preliminary injunction issued by a federal court that remains in place, and subject to subsequent modifications or appellate review. President Biden also directed the federal Occupational Safety and Health Administration to issue an emergency temporary standard ("ETS") requiring all private employers with 100 or more workers to mandate COVID-19 vaccination or a weekly test for all employees. The ETS was released on November 4, 2021, but it excluded federal contractors subject to FAR 52.223-99, and was subsequently rejected by the United States ("U.S.") Supreme Court in a decision issued on January 13, 2022. Even so, EPE continues to follow the Centers for Disease Control and Prevention guidelines and work toward vaccination goals consistent with FAR 52.223-99 and SFWTF Federal Contractor guidance.

Basis of Presentation. EPE maintains its accounts in accordance with the accounting requirements of the FERC set forth in its applicable Uniform System of Accounts and published accounting releases, and applies such principles in its regulatory books of account to the rate treatment as ordered by each of EPE's three regulators (PUCT, NMPRC, and FERC), which is a comprehensive basis of accounting other than GAAP.

Use of Estimates. The preparation of regulatory- basis financial statements in conformity with regulatory accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the regulatory-basis financial statements and the reported amounts of revenues and expenses during the reporting period. EPE evaluates its estimates on an ongoing basis, including those related to depreciation, unbilled revenue (or "Accrued Utility Revenues"), income taxes, fuel and purchased power costs, pension and other post-retirement obligations and asset retirement obligations ("ARO"). Actual results could differ from those estimates.

Utility Plant. Utility plant is reported at cost, less regulatory disallowances and impairments. Costs include labor, materials, construction overheads and allowance for funds used during construction ("AFUDC"). Depreciation is provided on a straight-line basis at annual rates which generally amortize the undepreciated cost of depreciable property over the estimated remaining lives of the assets (ranging in average from 5 to 48 years). The average composite depreciation rates utilized in 2022 and 2021 was 2.17% and 2.25%, respectively. When property subject to composite depreciation is retired or otherwise disposed of in the normal course of business, its cost together with the cost of removal, less salvage is charged to accumulated depreciation. For other property dispositions, the applicable cost and accumulated depreciation is removed from the balance sheet accounts and a gain or loss is recognized, if applicable. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

The cost of nuclear fuel is amortized to fuel expense on a units-of-production basis. EPE is also amortizing its share of costs associated with on-site spent fuel storage casks at Palo Verde Generating Station ("Palo Verde") over the burn period of the fuel that will necessitate the use of the storage casks. See Note E of Notes to Financial Statements for further discussion.

Allowance for Funds Used During Construction and Capitalized Interest. AFUDC is determined by applying an accrual rate to the balance of certain Construction Work in Progress ("CWIP"). The FERC has promulgated procedures for the computation (a prescribed formula) of the accrual rate. The average AFUDC rates used in 2022 and 2021 were 4.56% and 5.33%, respectively. EPE capitalizes interest on nuclear fuel in accordance with the FERC Uniform System of Accounts as provided for in the FASB guidance for regulated operations.

On June 30, 2020, the FERC issued an order granting a waiver request related to the existing AFUDC rate calculation beginning March 1, 2020, which was extended through March 31, 2022. The order provided a simplified approach that companies may elect to implement in order to minimize the significant distorted effect on the AFUDC formula resulting from increased short-term debt financing during COVID-19. EPE adopted this simplified approach by using a simple average of the actual historical short-term debt balances for 2019 and has left all other aspects of the AFUDC formula composite rate calculation unchanged. The change in the composite rate calculation did not impact the accounting treatment for these costs.

Asset Retirement Obligations. EPE complies with FERC Order No.631, "Accounting, Financial Reporting,and Rate Filing Requirements for Asset Retirement Obligations", which sets forth accounting requirements for the recognition and measurement of liabilities associated with the retirement of tangible long-lived assets. Under the FERC Order No. 631, these liabilities are recognized as incurred if a reasonable estimate of fair value can be established and are capitalized as part of the cost of the related tangible long-lived assets. EPE records the increase in the ARO due to the passage of time as an operating expense (accretion expense). If EPE incurs or assumes any liability in retiring any asset at the end of its useful life without a legal obligation to do so, it will record such retirement costs as incurred. See Note F of Notes to Financial Statements for further discussion.

Cash, and Cash Equivalents Temporary cash investments with an original maturity of three months or less are considered cash equivalents. EPE's cash and cash equivalents do not include amounts held in trust by EPE's Palo Verde nuclear decommissioning trust funds ("NDT") or the pension and other post-retirement benefit trust funds.

Investments. EPE’s marketable securities, included in decommissioning trust funds that are reflected in Other Special Funds in the Regulatory-Basis Balance, are reported at fair value and consist of cash and equity securities held in the NDT. Investments in equity securities are measured at fair market value. Changes in the fair market value for equity securities are recognized in the Regulatory-Basis Statements of Income, with the exception of the FERC jurisdictional portion which is still accounted for in Regulatory-Basis Other Comprehensive Income. See Note K of Notes to Financial Statements for further discussion.

Inventories. Inventories, primarily parts, materials, supplies, fuel oil and natural gas are stated at average cost, which does not exceed recoverable cost.

Operating Revenues. EPE accrues revenues for services rendered, including unbilled electric service revenues which are reflected within Accrued Utility Revenues. EPE recognizes revenue associated with contracts with customers when performance obligations under the terms of the contract with the customer are satisfied. Revenue is measured as the amount of consideration received in exchange for transferring goods or providing services to the customer. Taxes collected concurrently with revenue producing activities are excluded from revenue. Accrued Utility Revenues are recorded for estimated amounts of energy delivered in the period following the customer's last billing cycle to the end of the reporting period. Accrued Utility Revenues are estimated based on monthly generation volumes and by applying an average revenue/kilowatt-hour ("kWh") to the number of estimated kWhs delivered but not billed.EPE recorded $25.6 million and $23.3 million of Accrued Utility Revenues as of December 31, 2022 and 2021, respectively. See Note C of Notes to Financial Statements for further discussion.

Texas retail customers are billed under base rates and a fixed fuel factor approved by the PUCT. New Mexico retail customers are billed under base rates and a fuel adjustment clause that is adjusted monthly, as approved by the NMPRC. FERC wholesale full requirements customer is billed under formula base rates and fuel factors and a fuel adjustment clause that is adjusted monthly. Recovery of fuel and purchased power expenses is subject to periodic reconciliations of actual fuel and purchased power expenses incurred to actual fuel revenues collected. The difference between fuel and purchased power

expenses incurred and fuel revenues charged to customers is reflected in the accompanying Regulatory-Basis Balance Sheets in Other Regulatory Assets and Other Regulatory Liabilities, as appropriate. See Note D of Notes to Financial Statements for further discussion.

Income Taxes. EPE accounts for federal and state income taxes under the asset and liability method of accounting for income taxes. Deferred income taxes are recognized for the estimated future tax consequences of "temporary differences" by applying enacted statutory tax rates for each taxable jurisdiction applicable to future years to differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities. Certain temporary differences are accorded flow-through treatment by EPE's regulators and impact EPE's effective tax rate. The FASB guidance requires that rate-regulated companies record deferred income taxes for temporary differences accorded flow-through treatment at the direction of the regulatory commission. The resulting deferred tax assets and liabilities are recorded at the expected cash flow to be reflected in future rates. Because EPE's regulators have consistently permitted the recovery of tax effects previously flowed-through earnings, EPE has recorded regulatory liabilities and assets offsetting such deferred tax assets and liabilities. The effect on deferred tax assets and liabilities of a change in tax rate is recognized in income in the period that includes the enactment date, unless those deferred taxes will be collected from or returned to customers in which case they are recorded as a regulatory asset or liability. EPE recognizes tax assets and liabilities for uncertain tax positions in accordance with the recognition and measurement criteria of the FASB guidance for uncertainty in income taxes as modified by FERC Docket No. AI07-2-000. See Note H of Notes to Financial Statements for further discussion.

Pension and Post-retirement Benefit Accounting. See Note J of Notes to Financial Statements for a discussion of EPE's accounting policies for its employee benefits.

Credit Losses. EPE is exposed to credit losses as a result of recording customer receivables related to retail and wholesale electric sales and the provision of transmission services to customers. The allowance for credit losses represents EPE's estimate of existing accounts receivable that will ultimately be uncollectible. The allowance is calculated by applying estimated write-off factors to various classes of outstanding receivables. The write-off factors used to estimate uncollectible accounts are based upon consideration of both historical collections experience and management's best estimate of future collections success given the existing collections environment and qualitative forecasts of future conditions. During the year ended December 31, 2022, and 2021, EPE performed its assessment in accordance with Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326), which included consideration of the ongoing impact of COVID-19. Based on that assessment, EPE recorded a charge for anticipated uncollectible customer accounts. Additions, deductions and balances for the allowance for credit losses for the years ended December 31, 2022 and 2021 are as follows (in thousands):


	Years Ended
	December 31,
	2022		2021
Balance at beginning of period	$	11,921	$	5,920
Additions:
Increase to provision (a)	7,721		10,058
Recovery of previous write-offs	1,747		1,602
Uncollectible receivables written off	(5,955)		(5,659)
Balance at end of period	$	15,434	$	11,921

____________

(a) Years ended December 31, 2022 and 2021, include $4.1 million and $5.5 million, respectively, for the estimated impact of COVID-19 which was charged to Regulatory Assets in EPE's Regulatory-Basis Balance Sheets.

Leases. EPE determines if an arrangement contains a lease and the classification of that lease at inception. Operating lease right-of-use ("ROU") assets represent EPE’s right to use an underlying asset for the lease term and operating lease liabilities represent the obligation to make payments under the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of the minimum lease payments over the lease term. In determining

lease terms, EPE considers any options to extend or terminate the lease that are reasonably certain of being exercised. As EPE’s leases do not include an implicit rate, EPE uses an estimated incremental borrowing rate, at lease commencement, to determine the present value of the future lease payments. In calculating the incremental borrowing rate, EPE takes into consideration recent debt issuances and other data for instruments with similar characteristics. EPE’s lease agreements do not contain residual value guarantees or restrictive covenants. For leases with lease and non-lease components, EPE has elected to account for the consideration as a single lease component. EPE has also elected not to record leases with a term of 12 months or less on the Regulatory-Basis Balance Sheet. The operating lease ROU assets are included as part of electric plant in service and lease liabilities are included as part of Current and Non-current Obligation Under Capital Lease in EPE’s Regulatory-Basis Balance Sheet in accordance with FERC Docket No. AI19-1-000. As of December 31, 2022, EPE does not have any material operating leases.

Long-Term Incentive Compensation. EPE's Long-term incentive plan ("LTIP") is a liability-classified award in accordance with FASB guidance for deferred compensation arrangements. EPE measures the cost of employee services received in exchange for a cash performance award. Such costs are recognized using the graded attribution vesting method over the period during which an employee is required to provide service in exchange for the award (requisite service period). Compensation cost is not recognized for anticipated forfeitures prior to vesting of the awards. See Note J of the Notes to Financial Statements for further discussion.

B. New Accounting Standards

The new accounting standards discussed below are issued by the FASB and are to be applied to financial statements prepared in accordance with GAAP. Differences may occur between financial statements prepared in accordance with GAAP and financial statements prepared in accordance with the Uniform System of Accounts when these standards are adopted.

New Accounting Standards Evaluated

In November 2021, the FASB issued ASU 2021-09. Leases (Topic 842), that provides lessees that are not public business entities with a practical expedient that allows them to elect, as an accounting policy, to use a risk-free rate as the discount rate for all leases. The amendments allow those lessees to make the risk-free rate election by class of underlying asset, rather than at the entity-wide level. An entity that makes the risk-free rate election is required to disclose which asset classes it has elected to apply a risk-free rate. The amendments require that when the rate implicit in the lease is readily determinable for any individual lease, the lessee use that rate (rather than a risk-free rate or an incremental borrowing rate), regardless of whether it has made the risk-free rate election. ASU 2021-09 will be effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption is permitted. Entities are required to apply the amendments on a modified retrospective basis to leases that exist at the beginning of the fiscal year of adoption. The adoption of the amendments should not be considered an event that would cause remeasurement and reallocation of the consideration in the contract (including lease payments) or reassessment of lease term or classification. EPE evaluated this ASU and elected not to adopt it due to the immaterial amount of its leases.

New Accounting Standards to be Adopted in the Future

In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848), Deferral of the Sunset Date of Topic 848, to further defer the sunset date of Topic 848 from December 31, 2022, to December 31, 2024. In March 2020, the FASB issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting, to provide optional guidance for a limited period of time to ease the potential burden in accounting for or recognizing the effect of the reference rate reform on financial reporting and establish the sunset date of Topic 848 to December 31, 2022. These updates apply to all entities that have transactions which utilize reference rates, including London Interbank Offered Rate or another reference rate expected to be discontinued because of the reference rate reform. EPE is currently assessing the future impact of the reference rate reform.

C. Revenues

The following table disaggregates revenue from contracts with customers, for the years ended December 31, 2022 and 2021 (in thousands):


	Years Ended December 31,
	2022		2021
Retail	$	1,001,612	$	904,799
Wholesale	258,148		118,257
Wheeling (transmission)	45,121		30,048
Total revenues from contracts with customers	1,304,881		1,053,104
Other	5,603		6,714
Total operating revenues	$	1,310,484	$	1,059,818

Retail. Retail contracts represent EPE's primary revenue source. EPE has determined that retail electric service to residential, commercial and industrial, and public authority customers represents an implied daily contract with the customer. The contract is comprised of an obligation to supply and distribute electricity and related capacity. Revenue is recognized, over time, equal to the product of the applicable tariff rates, as approved by the PUCT and the NMPRC, and the volume of the electricity delivered to the customer, or through the passage of time based upon providing the service of standing ready. Accrued Utility Revenues are recognized at month end based on estimated monthly generation volumes and by applying an average revenue per kWh to the number of estimated kWhs delivered but not billed to customers, and recorded as a receivable for the period following the last billing cycle to the end of the reporting period. Retail customers receive a bill monthly, with payment due sixteen days after issuance.

Wholesale. Wholesale contracts primarily include forward power sales into markets outside EPE’s service territory when EPE has competitive generation capacity available, after meeting its regulated service obligations. Pricing is either fixed or based on an index rate with consideration potentially including variable components. Uncertainties regarding the variable consideration will be resolved when the transaction price is known at the point of delivering the energy. The obligation to deliver the electricity is satisfied over time as the customer receives and consumes the electricity. Wholesale customers are invoiced monthly on the 10th day of each month, with payment due by the 20th day of the month. In the case of the sale of renewable energy certificates, the transaction price is allocated to the performance obligation to deliver the confirmed quantity of the certificates based on the stand alone selling price of each certificate. Revenue is recognized as control of the certificates is transferred to the customer. The customer is invoiced upon the completed transfer of the certificates, with payment due within ten business days. Wholesale also includes an annual agreement between EPE and one of its wholesale customers, Rio Grande Electric Cooperative ("RGEC"), which involves the provision of full requirements electric service from EPE to RGEC. The rates for this service are recalculated annually and require FERC approval.

Wheeling (transmission). Wheeling involves EPE providing point-to-point transmission service, which includes the receipt of capacity and energy at designated point(s) and the transfer of such capacity and energy to designated point(s) of delivery on either a firm or non-firm basis for periods of one year or less. The performance obligation to provide capacity and transmit energy is satisfied over time as EPE performs. Transmission customers are invoiced on a monthly basis, with payment due within twenty days of receipt of the invoice.

Accounts receivable. Accounts receivable is principally comprised of revenue from contracts with customers. EPE recognizes expense for accounts that are deemed uncollectible in operating expense. EPE recognized $2.8 million and $4.6 million of uncollectible expense for the years ended December 31, 2022 and 2021, respectively. See Note A of Notes to Financial Statement for a discussion of the COVID-19 impact on the EPE's uncollectible reserve.

D. Regulation

General

The rates and services of EPE are regulated by incorporated municipalities in Texas, the PUCT, the NMPRC and the FERC. Municipal orders, ordinances and other agreements regarding rates and services adopted by Texas municipalities are subject to review and approval by the PUCT. The FERC has jurisdiction over EPE's wholesale (sales for resale) transactions, transmission service and compliance with federally-mandated reliability standards. The decisions of the PUCT, the NMPRC and the FERC are subject to judicial review.

Texas Regulatory Matters

2021 Texas Retail Rate Case Filing. On June 1, 2021, EPE filed in Docket No. 52195, a request for an increase of approximately $69.7 million, or $41.8 million after accounting for the Distribution Cost Recovery Factor (“DCRF”) and Transmission Cost Recovery Factor (“TCRF”), in non-fuel base revenues with the PUCT and those Texas municipalities that retained original jurisdiction.

On September 15, 2022, the PUCT issued the PUCT Final Order in Docket No. 52195 ("2021 PUCT Final Order"), which provides among other things, for the following: (i) an annual non-fuel base rate increase of $5.1 million net of revenue EPE is already recovering through the DCRF and TCRF, effective for electricity consumed on and after November 3, 2021; (ii) a return on equity of 9.35%; (iii) recovery of reasonable rate case expenses of $4.3 million over a four-year period; (iv) increased depreciation rates beginning with the effective date of November 3, 2021; (v) recovery of COVID-19 costs of $6.3 million over a four-year period; (vi) removal of retiring generation plants from base rates and recovery through a separate rider, effective for electricity consumed on and after November 3, 2021; and (vii) a refund of $24.1 million of excess deferred income taxes to Texas customers over a four-year period through a credit rider.

The 2021 PUCT Final Order also establishes filing requirements on additional COVID-19 costs and bad-debt costs after the test year and deferred under the PUCT’s order filed in Docket No. 50664 on March 26, 2020.

New base rates, including additional surcharges associated with COVID-19 expenses, certain generating unit costs, and rate case expenses were implemented in August 2022. Surcharges to reflect the relate-back of rates for consumption on and after November 3, 2021 through July 31, 2022, to be offset against the existing regulatory liability for the excess deferred income tax credit owed to Texas customers, were approved on February 7, 2023. For financial reporting purposes, EPE deferred any recognition of EPE’s request in Docket No. 52195 until it received the 2021 PUCT Final Order on September 15, 2022. Accordingly, EPE reported the effect of the 2021 PUCT Final Order in the third quarter of 2022, a cumulative relate-back impact of $13.5 million, after-tax, for consumption from November 3, 2021 through July 31, 2022. The cumulative relate-back impact includes $3.2 million of bad debt expenses related to COVID-19 incurred through December 31, 2020, which were approved in the 2021 PUCT Final Order to be recovered from customers through a four-year period beginning August 2022. The impact recorded in the third quarter of 2022 was comprised of recurring and non-recurring items and is not indicative of the expected impact on future results.

Fuel and Purchased Power Costs. EPE's actual fuel costs, including purchased power energy costs, net of the cost of off-system sales and related shared margins, are recovered from customers through a fixed fuel factor. The PUCT has adopted a fuel cost recovery rule ("Texas Fuel Rule") that allows EPE to seek periodic adjustments to its fixed fuel factor. EPE can seek to revise its fixed fuel factor based upon the approved formula at least four months after its last revision except in the month of December. The Texas Fuel Rule requires EPE to request to refund fuel costs in any month when the over-recovery balance exceeds a threshold material amount and when it expects fuel costs to continue to be materially over-recovered. The Texas Fuel Rule also permits EPE to seek to surcharge fuel under-recoveries in any month the balance exceeds a threshold material amount and when it expects fuel cost recovery to continue to be materially under-recovered. Fuel over- and under-recoveries are considered material when they exceed 4% of the previous twelve months' fuel costs. All such fuel revenue and expense activities are subject to periodic final review by the PUCT in periodic fuel reconciliation proceedings.

On September 15, 2021, EPE filed a request with the PUCT, which was assigned PUCT Docket No. 52581, to implement a fuel surcharge effective October 1, 2021. EPE requested authorization to surcharge a total of $44.9 million over an 18-month period. This total represents a net under-recovery of recoverable fuel costs for the period of April 2019, the first month after the period reconciled in EPE's last fuel reconciliation, Docket No. 50058, through July 2021. Interim approval for the surcharge was issued on September 27, 2021, and EPE began billing the surcharge on October 1, 2021. Under the PUCT's rules, the surcharge became final when no party requested a hearing within 30 days of EPE's filing of the application.

On February 15, 2022, EPE filed a request with the PUCT, which was assigned PUCT Docket No. 53229, to reduce the Texas fixed fuel factor by approximately 13.1% to reflect decreased fuel expenses primarily related to a decrease in the price of natural gas used to generate power. On February 28, 2022, EPE's fixed fuel factor was approved by the Administrative Law Judges ("ALJ") on an interim basis effective for the first billing cycle of the March 2022 billing month. Under the PUCT's rules, this fuel factor became final when no parties requested a hearing within 30 days of EPE's filing of the application.

On June 15, 2022, EPE filed a request with the PUCT, which was assigned PUCT Docket No. 53723, to increase the Texas fixed fuel factor by approximately 42.0% to reflect increased fuel expense primarily related to an increase in the price of the natural gas used to generate power. On June 29, 2022, EPE's fixed fuel factor was approved by the ALJ on an interim basis effective for the first billing cycle of the July 2022 billing month. Under the PUCT's rules, this fuel factor became final when no parties requested a hearing within 30 days of EPE's filing of the application, and the case was dismissed by the State Office of Administrative Hearings (“SOAH”) on August 5, 2022.

On January 17, 2023, EPE filed a request with the PUCT, which was assigned PUCT Docket No. 54572, to decrease the Texas fixed fuel factor by approximately 62.5% to reflect lower fuel expenses primarily related to a decrease in the price of natural gas used to generate power. As of December 31, 2022, EPE had a net fuel over-recovery balance of approximately $10.6 million in Texas. On January 26, 2023, the ALJ found EPE's notice and application sufficient, and granted interim approval of the revision, effective February 1, 2023.

Fuel Reconciliation Proceedings. On September 27, 2019, EPE filed an application with the PUCT, which was assigned PUCT Docket No. 50058, to reconcile $363.0 million of Texas fuel and purchased power expenses incurred during the period of April 1, 2016, through March 31, 2019. The PUCT issued a final order on April 7, 2021, finding EPE's eligible fuel expenses prudent and approving a settlement amongst the parties that reduced EPE's eligible fuel-cost balance by $4.5 million and resolved all other issues in the case. The financial results for the year ended December 31, 2021, include a $2.8 million, pre-tax increase to income reflecting the Palo Verde performance rewards associated with the 2016 to 2019 performance periods net of disallowed fuel and purchased power costs as approved in the settlement.

On September 23, 2022, EPE filed an application with the PUCT, which was assigned PUCT Docket No. 54142, to reconcile $342.3 million of Texas fuel and purchased power expenses incurred during the period April 1, 2019, through March 31, 2022. A hearing is scheduled to be held May 9, 2023. EPE cannot predict the outcome of the filing at this time. The April 1, 2022, through December 31, 2022, Texas jurisdictional fuel and purchased power costs subject to a future prudence review by the PUCT total approximately $181.1 million.

Advanced Metering System ("AMS") Deployment Plan. On April 19, 2021, EPE filed an application with the PUCT for approval of its AMS deployment plan, AMS surcharge, and non-standard metering service fee. The case was assigned PUCT Docket No. 52040. EPE proposed to collect approximately $131.3 million for the Texas-jurisdictional deployment costs via an AMS surcharge over a 12-year period. On January 14, 2022, EPE filed an unopposed stipulation and settlement with the SOAH which was remanded back to the PUCT on January 20, 2022, for final disposition. The stipulation and settlement would authorize EPE to collect approximately $110.7 million over 12 years, with the opportunity to recover reasonable and necessary Texas deployment costs in excess of that amount through the PUCT AMS reconciliation process. On December 15, 2022, the PUCT issued its final order approving EPE’s stipulated AMS deployment plan and surcharge, which became effective in customer billings beginning January 1, 2023. On January 17, 2023, EPE filed to revise the surcharges in Schedule No. AMS to reflect EPE’s weighted average cost of capital approved in Docket No. 52195.

Other Required Approvals. EPE has obtained other required approvals for tariffs and other approvals required by the Texas Public Utility Regulatory Act and the PUCT.

New Mexico Regulatory Matters

2020 New Mexico Rate Case Filing. Pursuant to an NMPRC order in Case No. 15-00109-UT, on May 29, 2020, EPE filed its Application for Revision of Retail Electric Rates, requesting a base revenue requirement increase of $6.9 million. The application was assigned NMPRC Case No. 20-00104-UT. The NMPRC issued a final order on June 23, 2021, ordering a $3.8 million New Mexico base revenue reduction. On June 25, 2021, EPE filed a Notice of Appeal of the Final Order with the New Mexico Supreme Court in Docket No. S-1-SC-38874. Opening briefs were filed on October 15, 2021, answer briefs were filed December 23, 2021, and reply briefs were filed January 31, 2022. Oral arguments in the case were held on January 11, 2023. EPE cannot predict the outcome of the appeal.

Fuel and Purchased Power Costs. Pursuant to NMPRC Rule 550, fuel and purchased power costs, net of the cost of off-system sales and related shared margins, are reconciled to actual costs on a monthly basis and recovered or refunded to customers the second succeeding month through the New Mexico Fuel and Purchased Power Cost Adjustment Clause ("FPPCAC"). EPE must file an application for continued use of its FPPCAC no more than four years from the date its last FPPCAC was continued. As required, EPE filed a request to continue use of its FPPCAC with the NMPRC on January 5, 2018, which was assigned Case No. 18-00006-UT. The NMPRC issued a final order in the case on February 13, 2019, which authorized EPE to continue use of its FPPCAC without change and approved EPE's reconciliation of its fuel and purchased power costs for the period January 1, 2015, through December 31, 2016. New Mexico jurisdictional fuel and purchased power costs subject to a future prudence review are fuel and purchased power costs from January 1, 2017, through December 31, 2022, which totaled approximately $242.4 million. As of December 31, 2022, EPE had a net fuel over-recovery balance of approximately $10.5 million related to the FPPCAC in New Mexico. On February 13, 2023, EPE filed its next required request to continue use of its FPPCAC.

On March 17, 2021, EPE filed a Motion for Variance from the Approved FPPCAC Methodology ("Motion") docketing Case No. 21-00064-UT. The Motion requested a variance from EPE's approved FPPCAC methodology to authorize inclusion of $6.8 million of incremental fuel costs in the FPPCAC balancing account and the recovery of $0.6 million per month amortization for twelve months beginning with April 2021 bills. The $6.8 million of incremental fuel costs resulted from the extreme cold weather experienced by customers in EPE's service territory in February 2021. On March 31, 2021, the NMPRC issued an Order Setting a Temporary FPPCAC Adjustment and Appointing a Hearing Examiner of the NMPRC for Further Proceedings, which excluded the $6.8 million of incremental fuel costs from EPE’s FPPCAC and assigned the matter for further proceedings. The public hearing on EPE's Motion concluded on December 2, 2021, and opening briefs were filed on February 15, 2022. On December 28, 2022, the NMPRC issued a final order denying EPE’s Motion and reopening the record to develop additional evidence. EPE filed a motion for rehearing of the final order on January 27, 2023. EPE cannot predict the final outcome of this case at this time.

Amendments to the New Mexico Renewable Energy Act (the "REA"). The REA required electric utilities to meet a Renewable Portfolio Standard ("RPS") of twenty percent of its total retail sales to New Mexico customers by 2020. Effective June 14, 2019, the REA was amended when the New Mexico Energy Transition Act was enacted to, among other things: (i) increase the RPS to forty percent by 2025, fifty percent by 2030, and eighty percent by 2040; (ii) impose a zero-carbon standard by 2045; (iii) eliminate the reduction to the RPS requirement for sales to qualifying large non-governmental customers whose costs were capped under the REA prior to the amendments; (iv) set a statutory reasonable cost threshold; and (v) provide cost recovery for certain undepreciated investments and decommissioning costs, such as coal-fired generation, associated with generation required by the NMPRC to be discontinued and replaced with lower or zero-carbon generation. In administering the eighty percent RPS and zero-carbon standards, the REA requires the NMPRC to consider certain factors, including safety, reliability and rate impact to customers. On August 5, 2020, the NMPRC granted a Staff Motion to Bifurcate Case No. 19-00296-UT and opened new docket Case No. 20-00158-UT, to inquire into whether renewable energy riders should continue given the current REA requirements and line loss adjustments. On April 14, 2021, in Case No. 19-00269-UT, the NMPRC

issued an order adopting rule amendments to implement the REA amendments, which Southwestern Public Service Company ("SPS") appealed to the New Mexico Supreme Court and was docketed as Case No. S-1-SC-38815. EPE intervened in that appeal, and opening briefs were filed April 11, 2022. On August 8, 2022, the NMPRC reissued notice of further amendments in Case No. 20-00158-UT, and the NMPRC issued a final order promulgating further rule amendments on December 7, 2022. Those rule amendments include the establishment of an industry standard levelized cost of electricity methodology for the REA’s reasonable cost threshold, revisions to the rule’s provision for utility financial incentives, and limiting the use of net metered, distributed generation renewable energy credits for RPS compliance purposes. The December 7, 2022 final order also initiated a further rulemaking proceeding, which has not been docketed, to address required criteria for continued use of rate riders to recover REA costs. The NMPRC accepted 2021 Amended Integrated Resource Plan filed in NMPRC Case No. 21-00242-UT which models the long term cost associated with complying with the REA. EPE is currently evaluating the impact that the REA may have on its operations.

New Mexico RPS. Effective January 1, 2018, pursuant to the final order in NMPRC Case No. 17-00090-UT, the RPS costs for New Mexico are recovered through a separate RPS Cost Rider and not through the FPPCAC. As of December 31, 2022, EPE had a net fuel over-recovery balance related to the RPS Cost Rider of approximately $1.1 million.

In October 2018, pursuant to the REA, the NMPRC approved a Renewable Energy Credit ("REC") purchase procurement with a landfill gas facility in New Mexico and authorized the $30 per megawatt-hour (“MWh”) REC cost to be recovered from customers through EPE's RPS Rider. The NMPRC Final Order in Case No. 18-00109-UT approving the procurement was appealed to the New Mexico Supreme Court by the City of Las Cruces, New Mexico ("City of Las Cruces"). Payment to the landfill gas facility under the NMPRC-approved procurement was subsequently stayed by the NMPRC in November 2019. In December 2021, the New Mexico Supreme Court determined the REC purchase procurement was inconsistent with the REA, vacated the final order in Case No. 18-00109-UT, and remanded the order back to the NMPRC. Consistent with the NMPRC’s order on remand, and pursuant to a NMPRC-approved stipulation in EPE's 2021 REA Plan application (Case No. 21-00111-UT), EPE filed an adjustment to its RPS Rider to return approximately $0.7 million of REC procurement costs to customers who had been billed since 2019, and to remove remaining costs associated with the procurement going forward. The adjusted RPS Rider rates became effective February 1, 2022.

In Case No. 22-00093-UT, EPE sought and received Commission approvals to extend the May 1, 2022 filing date of its 2022 REA Plan application by five months. EPE filed its 2022 REA Plan Application on October 3, 2022 seeking 2022 REA plan approval including procurement of a proposed 130 megawatt (“MW”) solar and 65 MW energy battery storage project. Hearings were held January 30 and 31, 2023 and February 16, 2023. EPE cannot predict the outcome of this proceeding.

On July 29, 2022, EPE filed a Verified Motion for Expedited Approval of Amendments to Two Purchased Power Agreements in Case Nos. 19-00099-UT and 19-00348-UT, previously approved by the NMPRC in those dockets. EPE’s motion sought NMPRC approval to amend the October 17, 2019 Buena Vista Energy Center, LLC purchased power agreement ("PPA") for 100 MW of solar energy and 50 MW of energy storage and the March 18, 2020 Buena Vista Energy Center LCC PPA for an additional 20 MW of solar energy to increase pricing by $3.50 per MWh and to extend commercial operation date to June 1, 2023. On September 9, 2022, EPE filed a Notice of Waiver of Condition Precedent, waiving regulatory approval as a condition precedent of the amended PPAs. On November 14, 2022, EPE filed an Amended Application for Approval of Amendments to Four Purchased Power Agreements seeking NMPRC approval to amend two additional PPAs previously approved by the NMPRC in those dockets, the October 17, 2019 Hecate PPA for 100 MW of solar energy and the March 2020 Hecate PPA for an additional 50 MW of solar energy, to extend the commercial operations date of those PPAs to June 1, 2024. A hearing was held March 7 and 8, 2023. EPE cannot predict the outcome of this proceeding.

Expedited Approval for Certificate of Convenience and Necessity (“CCN”) (Solar/Storage Project at New Mexico State University ("NMSU")). On November 20, 2019, EPE filed an application with the NMPRC requesting a certificate of public convenience and necessity to construct, own and operate a three-MW solar powered generation facility coupled with a one-MW battery storage system to be located on NMSU property in Arrowhead Park in the EPE service territory in New Mexico. EPE’s application also sought approval of a special retail rate contract between EPE and NMSU to recover the costs of the new facility

and its operations from NMSU. The new facility is a dedicated Company-owned resource serving NMSU. This case was assigned NMPRC Case No. 19-00350-UT. The CCN and pricing contract for the new facility were approved by a final order of the NMPRC adopting the settlement on August 5, 2020, and construction on the project began in December 2020. The solar and battery energy storage facility began commercial operation on May 18, 2022.

New Mexico Efficient Use of Energy Recovery Factor. On May 22, 2020, EPE filed a motion to modify its 2019-2021 Energy Efficiency and Load Management Plan ("EE/LM Plan") to include a new Residential Load Management Program ("RLMP") for the remaining 2020 and 2021 plan years to be funded through a reallocation of EPE's approved EE/LM Plan budgets for 2020 and 2021. An order granting EPE's motion for the new RLMP was issued by the NMPRC on July 22, 2020. The program is also being offered in EPE's Texas jurisdiction. EPE recorded incentives in operating revenues of $0.4 million related to its 2019-2021 EE/LM Plan in 2021 and 2020. On July 15, 2021, in Case No. 21-00114-UT, EPE filed its Application for Approval of its 2022-2024 EE/LM Plan. A public hearing was held on January 11 and 12, 2022, and opening briefs were filed on February 23, 2022. On September 23, 2022, a Recommended Decision proposing approval of EPE’s application was issued by the assigned Hearing Examiner. The City of Las Cruces filed exceptions to the Recommended Decision on October 6, 2022, and EPE filed its response to those exceptions on October 14, 2022. On November 30, 2022, the NMPRC issued an order approving the Recommended Decision in its entirety.

AMS Application. On November 5, 2021, EPE filed an application with the NMPRC for approval of its Grid Modernization Project to Implement AMS, AMS rate rider, and non-standard metering service fee. The case was assigned NMPRC Case No. 21-00269-UT. If approved, EPE would be authorized to acquire and implement AMS at an estimated New Mexico AMS project cost of $35.5 million and to collect the project’s actual capital expenditures and estimated annual operating expenditures through the AMS rate rider which will be reconciled through an annual filing with the NMPRC. EPE, NMPRC Staff and parties filed a stipulation resolving all issues with the NMPRC on April 29, 2022, which was subsequently opposed. The Hearing Examiner in the case issued a Certification of Stipulation recommending approval of EPE’s stipulated AMS Project. The NMPRC approved the Certification of Stipulation and issued a final order approving EPE's AMS project on November 12, 2022.

On November 11, 2022, in Case No. 21-00266-UT, the NMPRC issued a Final Order promulgating a replacement rule 17.9.568 New Mexico Administrative Code ("NMAC") governing interconnection of generating facilities up to 10 MW. The replacement rule adopts an Interstate Renewable Energy interconnection model, whereby EPE is required to update 71 distribution circuits located in New Mexico at an estimated cost of $1.0 million in order to comply with the new rule. EPE expects to complete the required updates by December 31, 2024, to meet the new rule’s requirements by January 1, 2025, and EPE will seek required variances from the rule’s applicable implementation date, as well as other new requirements of the rule.

The New Mexico Community Solar Act ("the "NM Community Solar Act"), effective June 18, 2022, established a New Mexico Community Solar Program with an initial statewide capacity cap of 200 MWs through December 31, 2024, allocated amongst the states three electric investor owned utilities ("qualifying utilities"). The NM Community Solar Act requires qualifying utilities to interconnect at the distribution level with unregulated subscriber organizations, sized no larger than 5 MW, and to take 100 percent of their solar energy for a required 20-year PPA term. The NM Community Solar Act authorizes the subscriber organizations to resell community solar energy to EPE’s customers at an unregulated subscription price. As payment for subscribed community solar generation, qualifying utilities are required to credit their customers who subscribe to the program a customer bill credit. The NM Community Solar Act prohibits program subsidization by the utility and other utility customers and allows for up to a 3 percent program subsidy by other customers upon a NMPRC finding of public interest. On March 30, 2022, the NMPRC issued a Final Order promulgating Rule 17.9.573 NMAC which implements the NM Community Solar Act and allocates 10 MW of the program’s initial capacity to EPE. Pursuant to the rule, in NMPRC Case No. 20-00243-UT, EPE filed an Application for Commission approval of tariffs necessary to implement the program, including a customer bill credit, seeking an accounting order to track unavoidable costs included in the customer bill credit for future ratemaking purposes. SPS filed a Notice of Appeal of the Final Order with the New Mexico Supreme Court in Docket No. S-1-SC-39432, arguing due process and statutory conflicts including inadequate customer protections and unlawful program

subsidization. EPE intervened in the appeal. SPS filed three other separate appeals with the New Mexico Supreme Court, and on January 24, 2022, the court issued an order consolidating all four appeals and briefing and set a date of March 27, 2023, for opening briefs. EPE cannot predict the outcome of this appeal at this time.

On November 11, 2022, the NMPRC issued a Final Order Upon Reconsideration promulgating a replacement Rule 17.1.2 governing the integrated resource planning process for utilities which creates costly and inefficient resource and procurement rules which do not adequately address the circumstance of multi-state jurisdictional utilities. On December 1, 2022, EPE filed a Notice of Appeal with the Supreme Court in Docket No. S-1-SC-39673. On December 2, 2022, SPS filed a Notice of Appeal with the Supreme Court in Docket No. S-1-SC-39677, and Public Service Company of New Mexico filed a Notice of Appeal with the Supreme Court in Docket No. S-1-SC-39676. EPE cannot predict the outcome of this appeal at this time.

Revolving Credit Facility. On February 22, 2023, the NMPRC approved the recommended decision in Case No. 23-00004-UT approving EPE’s January 6, 2023, filing to increase its maximum borrowing limit under its revolving credit facility ("RCF") from $400.0 million to $550.0 million and issue long-term debt in an amount not to exceed $180.0 million.

Other Required Approvals. EPE has obtained other required approvals for tariffs and other approvals as required by the New Mexico Public Utility Act and the NMPRC.

Federal Regulatory Matters

FERC Audit. On February 6, 2019, the FERC notified EPE that it was commencing an audit intended to evaluate EPE's compliance with: (i) the approved terms, conditions, and rates of its Open Access Transmission Tariff ("OATT"); (ii) the accounting requirements of the Uniform System of Accounts; (iii) the reporting requirements of the FERC Form No. 1 Annual Report and Supplemental Form 3-Q Quarterly Financial Reports; and (iv) the regulations regarding Open Access Same-time Information Systems. The audit covered the period from January 1, 2016 to June 30, 2020, and was assigned FERC Docket No. PA19-3-000. The FERC issued its final audit report on January 28, 2021. The audit findings did not have a material impact to the financial statements and disclosures of EPE. EPE submitted its implementation plan to comply with the recommendations on March 1, 2021. On March 16, 2021, FERC Staff notified EPE that the implementation phase of the audit was closed.

Western Energy Imbalance Market ("EIM"). EPE requested two authorizations from FERC to join the California Independent System Operator’s ("CAISO") EIM: (i) a change of status of its market-based rate authority; and (ii) EIM-related changes to EPE’s OATT. On January 23, 2023, FERC approved the EIM tariff, thus allowing EPE to commence parallel operations with CAISO’s EIM before it officially joins the market. On March 24, 2023, FERC approved the market-based rate authority. Initial estimates indicate the cost of joining the EIM to be $16.8 million, while potential gross benefits of EIM membership range from $3.0 million to $24.5 million beginning 2023. EPE expects to join the EIM during the second quarter of 2023.

Transmission Formula Rate Case. On October 31, 2021, EPE filed a request with FERC to update its wholesale transmission rates for the first time since 1998 and to transition to a formula rate, instead of a stated rate. The formula rate mechanism will enable EPE to more timely update and recover its wholesale transmission costs on an annual basis. On December 30, 2021, the FERC issued an initial order setting the matter for hearing and settlement judge procedures. The FERC approved EPE's proposed rates on an interim basis, subject to refund for customer billing effective January 1, 2022. EPE, FERC Staff, and parties are actively engaged in settlement discussions. Based on these settlement discussions, EPE estimated and recorded a reserve of $6.0 million to Accumulated Provision for Rate Refunds on the Regulatory-Basis Balance Sheet as of December 31, 2022, for its wholesale transmission sales based on interim rates during 2022. EPE cannot predict the outcome of this case at this time.

Revolving Credit Facility, Issuance of Short-Term and Long-Term Debt. On January 20, 2023, the FERC issued an order in Docket No. ES23-11-000 approving EPE’s December 7, 2022, filing to increase its maximum borrowing limit under its RCF from $400.0 million to $550.0 million, issue short-term debt in an amount not to exceed $300.0 million, and issue long-term debt in an amount not to exceed $180.0 million. The authorization is effective from January 20, 2023, to January 19, 2025.

Other Required Approvals. EPE has obtained required approvals for rates, tariffs and other approvals as required by the Federal Power Act and the FERC.

U.S. Department of Energy ("DOE"). The DOE regulates EPE's exports of power to Mexico pursuant to a DOE grant of export authorization. In addition, EPE is the holder of two presidential permits issued by the DOE under which EPE constructed and operates border crossing facilities at the U.S./Mexico border.

Pursuant to the Nuclear Waste Policy Act of 1982, as amended in 1987, the DOE is legally obligated to accept and dispose of all spent nuclear fuel and other high-level radioactive waste generated by all domestic power reactors by 1998. See Note F of Notes to Financial Statements for further discussion of spent fuel storage and disposal costs.

Sales for Resale and Network Transmission Service to RGEC

EPE provides firm capacity and associated energy to the RGEC pursuant to an ongoing contract with a two-year notice to terminate provision. EPE also provides network integrated transmission service to the RGEC pursuant to EPE's OATT. The contract includes a formula-based rate that is updated annually to recover non-fuel generation costs and a fuel adjustment clause designed to recover all eligible fuel and purchased power costs allocable to the RGEC. EPE's service to RGEC is regulated by FERC.

E. Utility Plant, Palo Verde and Other Jointly-Owned Utility Plant

The tables below present the balance of each major class of depreciable assets at December 31, 2022 and 2021 (in thousands):


	December 31, 2022
	Gross Plant		Accumulated Depreciation		Net Plant
Nuclear production	$	2,049,881	$	(1,339,804)	$	710,077
Steam and other	1,256,597		(385,759)		870,838
Total production	3,306,478		(1,725,563)		1,580,915
Transmission	609,796		(263,360)		346,436
Distribution	1,607,480		(460,256)		1,147,224
General	284,704		(113,275)		171,429
Intangible	140,486		(100,424)		40,062
Total	$	5,948,944	$	(2,662,878)	$	3,286,066


	December 31, 2021
	Gross Plant		Accumulated Depreciation		Net Plant
Nuclear production	$	2,029,312	$	(1,325,284)	$	704,028
Steam and other	1,190,614		(354,921)		835,693
Total production	3,219,926		(1,680,205)		1,539,721
Transmission	579,569		(253,787)		325,782
Distribution	1,520,311		(430,918)		1,089,393
General	265,462		(100,682)		164,780
Intangible	133,973		(88,833)		45,140
Total	$	5,719,241	$	(2,554,425)	$	3,164,816

(a) Gross Plant excludes Capitalized Operating Leases of $4.3 million and Property Held for Future Development of $6.7 million as of December 31, 2022 and Capitalized Operating Leases of $5.2 million and Property Held for Future Development of $5.3 million as of December 31, 2021.

EPE owns a 15.8% interest in each of the three nuclear generating units and common facilities ("Common Facilities") at Palo Verde, in Wintersburg, Arizona. The operation of Palo Verde and the relationship among EPE and six other utilities: Arizona Public Service Company ("APS"), Southern California Edison Company, Public Service Company of New Mexico, Southern California Public Power Authority, Salt River Project Agricultural Improvement and Power District and the Los Angeles Department of Water and Power ("Palo Verde Participants") is governed by the Arizona Nuclear Power Project Participation Agreement dated August 23, 1973, as amended ("ANPP Participation Agreement"). The Palo Verde Participants share in power and energy entitlements, and bear certain allocated costs, with respect to Palo Verde pursuant to the ANPP Participation Agreement.

A summary of EPE’s investment in jointly-owned utility plant, excluding fuel inventories, at December 31, 2022 and 2021 is as follows (in thousands):


	December 31, 2022				December 31, 2021
	Palo Verde		Other (a)		Palo Verde		Other (a)
Electric plant in service	$	2,049,881	$	108,694	$	2,029,312	$	99,218
Accumulated depreciation	(1,339,804)		(72,554)		(1,325,284)		(71,017)
Construction work in progress	53,810		1,470		54,491		1,154
Total	$	763,887	$	37,610	$	758,519	$	29,355

_______________

(a) Includes three jointly-owned transmission lines.

Amortization of intangible plant (software) is provided on a straight-line basis over the estimated useful life of the asset (ranging from 3 to 15 years). The table below presents the actual and estimated amortization expense for intangible plant for 2021, 2022 and the next five years (in thousands):


2021	$	10,431
2022	11,703
2023 (estimated)	12,024
2024 (estimated)	10,077
2025 (estimated)	7,205
2026 (estimated)	3,941
2027 (estimated)	1,856

Palo Verde

The operation of Palo Verde and the relationship among the Palo Verde Participants is governed by the ANPP Participation Agreement. APS serves as operating agent for Palo Verde, and under the ANPP Participation Agreement, EPE has limited ability to influence operations and costs at Palo Verde. Pursuant to the ANPP Participation Agreement, the Palo Verde Participants share costs and generating entitlements in the same proportion as their percentage interests in the generating units, and each participant is required to fund its share of fuel, operating and maintenance ("O&M") expense, and capital costs. EPE’s share of direct expenses in Palo Verde is reflected in fuel expense, O&M expense, miscellaneous other deductions, and taxes other than income taxes in EPE’s Regulatory-Basis Statement of Income. The ANPP Participation Agreement provides that if a participant fails to meet its payment obligations, each non-defaulting participant shall pay its proportionate share of the payments owed by the defaulting participant. Because it is impracticable to predict defaulting participants, EPE cannot estimate the maximum potential amount of future payment, if any, which could be required under this provision.

Nuclear Regulatory Commission. The NRC regulates the operation of all commercial nuclear power reactors in the U.S., including Palo Verde. The NRC periodically conducts inspections of nuclear facilities and monitors performance indicators to enable the agency to arrive at objective conclusions about a licensee’s safety performance.

Palo Verde Operating Licenses. Operation of each of the three Palo Verde units requires an operating license from the NRC. The NRC issued full power operating licenses for Unit 1 in June 1985, Unit 2 in April 1986 and Unit 3 in November 1987 and issued renewed operating licenses for each of the three units in April 2011, which extended the licenses for Units 1, 2 and 3 to June 2045, April 2046 and November 2047, respectively.

Decommissioning. Pursuant to the ANPP Participation Agreement and federal law, EPE funds its share of the estimated costs to decommission Palo Verde Units 1, 2 and 3, including the Common Facilities, through the term of their respective operating licenses and is required to maintain a minimum accumulation and funding level in its decommissioning account at the end of each annual reporting period during the life of the plant. EPE has established the NDT with an independent trustee, which enables EPE to record a current deduction for federal income tax purposes for most of the amounts funded. At December

31, 2022, the NDT had a balance of $345.0 million, which is above its minimum funding level. EPE monitors the status of the NDT and adjusts contributions accordingly.

Decommissioning costs are estimated every three years based upon engineering cost studies performed by outside engineers retained by APS. In May 2020, the Palo Verde Participants approved the 2019 Palo Verde decommissioning study (the "2019 Study"). The 2019 Study estimated that EPE must fund approximately $467.3 million (stated in 2019 dollars) to cover its share of decommissioning costs which was a decrease in decommissioning costs of $2.3 million (stated in 2019 dollars) from the 2016 Palo Verde decommissioning study (the "2016 Study"). The effect of this change decreased the ARO by $1.0 million, which was recorded in 2020. Although the 2019 Study was based on the latest available information, there can be no assurance that decommissioning cost estimates will not increase in the future or that regulatory requirements will not change. In addition, until a new low-level radioactive waste repository opens and operates for a number of years, estimates of the cost to dispose of low-level radioactive waste are subject to uncertainty. As provided in the ANPP Participation Agreement, the Palo Verde Participants are required to conduct a new decommissioning study every three years. While EPE attempts to seek amounts in rates to meet its decommissioning obligations, it is not able to conclude given the evidence available to it now that it is probable these costs will continue to be collected over the period until decommissioning begins, which is expected to be in 2044. EPE is ultimately responsible for these costs and its future actions combined with future decisions from regulators will determine how successful EPE is in this effort.

Spent Fuel and Waste Disposal. Pursuant to the Nuclear Waste Policy Act of 1982, as amended in 1987, the DOE is legally obligated to accept and dispose of all spent nuclear fuel and other high-level radioactive waste generated by all domestic power reactors by 1998. The DOE's obligations are reflected in a contract for Disposal of Spent Nuclear Fuel and/or High-Level Radioactive Waste with each nuclear power plant. The DOE failed to begin accepting spent nuclear fuel by 1998. On December 19, 2012, APS, acting on behalf of itself and the Palo Verde Participants, filed a second breach of contract lawsuit against the DOE. This lawsuit sought to recover damages incurred due to the DOE’s failure to accept Palo Verde’s spent nuclear fuel for the period beginning January 1, 2007. Pursuant to the terms of the August 18, 2014 settlement agreement, and as amended with the DOE, APS files annual claims for the period July 1 of the then-previous year to June 30 of the then-current year on behalf of itself and those utilities that share in power and energy entitlements, and bear certain allocated costs, with respect to Palo Verde based upon the ANPP Participation Agreement dated August 23, 1973. The settlement agreement, as amended, provides APS with a method for submitting claims and receiving recovery for costs incurred through December 31, 2022. EPE's share of costs recovered in 2021 and 2020, respectively are presented below (in thousands):


Costs Recovery Period	Amount Refunded		Amount Credited to Customers through Fuel Adjustment Clauses		Period Credited to Customers

July 2020 - June 2021	$	1,932	$	1,717	May 2022
July 2019 - June 2020	1,916		801		April 2021

On October 31, 2022, APS filed a $14.3 million claim for the period July 1, 2021 through June 30, 2022. EPE's share of this claim is approximately $2.3 million. In February 2023, the DOE approved this claim. The majority of the reimbursement received by EPE is expected to be credited to customers through the applicable fuel adjustment clauses in April 2023.

Palo Verde has sufficient capacity at its on-site independent spent fuel storage installation ("ISFSI") to store all of the nuclear fuel that will be irradiated during the initial operating license period, which ends in December 2027. Additionally, Palo Verde has sufficient capacity at its on-site ISFSI to store a portion of the fuel that will be irradiated during the period of extended operation, which ends in November 2047. If uncertainties regarding the U.S. government’s obligation to accept and store spent fuel are not favorably resolved, APS will evaluate alternative storage solutions that may obviate the need to expand the ISFSI to accommodate all of the fuel that will be irradiated during the period of extended operation.

Liability and Insurance Matters. The Palo Verde Participants have insurance for public liability resulting from nuclear energy hazards to the full limit of liability under federal law, which is currently at $13.6 billion. This potential liability is

covered by primary liability insurance provided by commercial insurance carriers in the amount of $450.0 million, and the balance is covered by an industry-wide retrospective assessment program. If a loss at a nuclear power plant covered by the programs exceeds the accumulated funds in the primary level of protection, EPE could be assessed retrospective premium adjustments on a per incident basis. Under federal law, the maximum assessment per reactor under the program for each nuclear incident is approximately $137.6 million, subject to an annual limit of $20.5 million. Based upon EPE's 15.8% interest in the three Palo Verde units, EPE's maximum potential assessment per incident for all three units is approximately $65.2 million, with an annual payment limitation of approximately $9.7 million.

The Palo Verde Participants maintain $2.8 billion of "all risk" nuclear property insurance. The insurance provides coverage for property damage and decontamination at Palo Verde. For covered incidents involving property damage not accompanied by a release of radioactive material, the policy's coverage limit is $2.3 billion. EPE has also secured insurance against portions of any increased cost of generation or purchased power and business interruption resulting from a sudden and unforeseen outage of any of the three units. The insurance coverage discussed in this and the previous paragraph is subject to certain policy conditions and exclusions. A mutual insurance company whose members are utilities with nuclear facilities issues these policies. If losses at any nuclear facility covered by this mutual insurance company were to exceed the accumulated funds for these insurance programs, EPE could be assessed retrospective premium adjustments of up to $12.1 million for the current policy period.

Palo Verde Operations & Maintenance Expense. EPE's 15.8% share of Palo Verde's O&M expense was $87.3 million and $87.0 million for the years ended December 31, 2022 and 2021, respectively. These expenses were included in Operations and Maintenance in EPE's Regulatory-Basis Statement of Income.

Executive and Administrative Office

In September 2022, EPE's Board of Directors resolved to sell EPE's executive and administrative office building in El Paso, Texas ("Stanton Tower") which was purchased in February 2008. EPE reclassified Stanton Tower's net book value of $36.6 million as of September 30, 2022 to a held for sale account in the third quarter of 2022. On January 16, 2023, EPE’s Board of Directors resolved to not sell the Stanton Tower based on current market conditions and, as a result, EPE returned Stanton Tower's net book value to Utility Plant on the Regulatory-Basis Balance Sheet during the fourth quarter of 2022 and recorded depreciation expense for the fourth quarter of 2022 in December 2022.

F. Accounting for Asset Retirement Obligations

FERC Order No. 631 affects the accounting for the decommissioning of Palo Verde and the method used to report the decommissioning obligation. EPE records ARO obligations associated with the decommissioning of Palo Verde and for conditional AROs, which primarily affects the accounting for the disposal obligations of EPE’s fuel oil storage tanks, water wells, evaporative ponds and asbestos found at EPE’s gas-fired generating plants.

The ARO liability for Palo Verde is based upon the estimated cost of decommissioning the plant from the 2019 Study, as discussed in Note E of Notes to Financial Statements. The ARO liability is calculated by adjusting the estimated decommissioning costs for spent fuel storage and a profit margin and market-risk premium factor. The resulting costs are escalated over the remaining life of the plant and finally discounted using a credit-risk adjusted discount rate. As Palo Verde approaches the end of its estimated useful life, the difference between the ARO liability and future current cost estimates will narrow over time due to the accretion of the ARO liability. Because the DOE is obligated to assume responsibility for the permanent disposal of spent fuel, such costs have not been included in the ARO calculation. EPE maintains six external trust funds with an independent trustee that are legally restricted to settling its ARO at Palo Verde. The fair value of the funds at December 31, 2022, is $345.0 million.

FERC Order No. 631 requires EPE to revise its previously recorded ARO for any changes in estimated cash flows including changes in estimated probabilities related to timing of settlements. Any changes that result in an upward revision to estimated cash flows shall be treated as a new liability. Any downward revisions to the estimated cash flows result in a

reduction to the previously recorded ARO. The 2019 Study resulted in a downward revision of approximately $1.0 million which was recorded in 2020. EPE implemented the results of the 2019 Study and revised its ARO related to Palo Verde to decrease its estimated cash flows from the 2016 Study to the 2019 Study, as discussed in Note E of Notes to Financial Statements. The assumptions used to calculate the decreases to the Palo Verde ARO liability are as follows:


	Escalation Rate		Credit-Risk Adjusted Discount Rate
Original ARO liability	3.60	%	9.50	%
Incremental ARO liability (2010)	3.60	%	6.20	%
Incremental ARO liability (2016)	3.25	%	4.34	%

An analysis of the activity of EPE’s total ARO liabilities for all plants (Newman Power Station, Rio Grande Power Station, Montana Power Station, Copper Power Station, and Palo Verde) for the years ended December 31, 2022 and 2021, including the effects of each year’s estimate revisions, is presented below (in thousands).


	2022		2021
ARO liability at beginning of year	$	130,401	$	118,919
Liabilities settled	(68)		(87)
Revisions to estimate	—		841
Accretion expense	11,748		10,728
ARO liability at end of year	$	142,081	$	130,401

EPE has transmission and distribution lines which are operated under various land rights agreements. Upon the expiration of any non-perpetual land rights agreement, EPE may have a legal obligation to remove the lines; however, EPE has assessed the likelihood of this occurring as remote. The majority of these agreements are perpetual or include renewal options that EPE routinely exercises. The amount of cost of removal collected in rates for non-legal liabilities has not been material.

G. Long-Term Debt, Financing Obligations and Capital Lease Obligations

Outstanding long-term debt, financing obligations, and capital lease obligations, are as follows:


	December 31,
	2022		2021
	(In thousands)
Bonds (Account 221):
Pollution Control Bonds (1):
3.60% 2009 Series A refunding bonds, due 2040 (3.82% effective interest rate)	$	63,500	$	63,500
3.60% 2009 Series B refunding bonds, due 2040 (3.84% effective interest rate)	37,100		37,100
4.50% 2012 Series A refunding bonds, due 2042 (4.63% effective interest rate)	59,235		59,235
Total Bonds Account 221	159,835		159,835
Other Long-Term Debt (Accounts 224, 225, and 226):
Senior Notes (2):
Senior Notes-Public:
3.30% Senior Notes, net of discount, due 2022 (3.43% effective interest rate)	—		150,000
6.00% Senior Notes, net of discount, due 2035 (6.58% effective interest rate)	400,000		400,000
7.50% Senior Notes, net of discount, due 2038 (7.67% effective interest rate)	150,000		150,000
5.00% Senior Notes, net of premium, due 2044 (4.93% effective interest rate)	300,000		300,000
Senior Notes-Private Placement:
4.22% Senior Notes, net of discount, due 2028 (4.31% effective interest rate)........................	125,000		125,000
2.91% Senior Notes, net of discount, due 2032 (2.98% effective interest rate)........................	150,000		—
3.54% Senior Notes, net of discount, due 2052 (3.57% effective interest rate)........................	200,000		—
Total Other Long-Term Account 224	1,325,000		1,125,000
Unamortized premium on Long-Term Debt Account 225	6,109		6,264
Unamortized discount on Long-Term Debt Account 226	(2,924)		(3,081)
Total Long-Term Debt	$	1,488,020	$	1,288,018
Obligations Under Capital Lease - Noncurrent (Account 227):
4.07% Senior Guaranteed Notes, due 2025 (4.18% effective interest rate)(3)	$	65,000	$	65,000
2.35% Senior Guaranteed Notes, due 2031 (2.45% effective interest rate)(3)	45,000		45,000
Capitalized Operating Leases (4)	4,025		4,708
Total Capital Lease Obligations Noncurrent	$	114,025	$	114,708
Obligations Under Capital Lease - Current (Account 243):
Revolving Credit Facility (5)	$	10,761	$	18,223
Capitalized Operating Leases (4)	529		647
Total Capital Lease Obligations Current Account 243	$	11,290	$	18,870

_____________________

(1)Pollution Control Bonds ("PCBs")

EPE has three series of tax exempt unsecured PCBs in aggregate principal amount of $159.8 million as of December 31, 2022. The 2012 Series A PCBs have a fixed interest rate of 4.50% per annum until maturity on August 1, 2042. The 2012 Series A PCBs were subject to optional redemption at a redemption price of par on or after August 1, 2022. EPE has decided not to exercise the option given the current market conditions and reclassified the 2012 Series A PCBs to long-term debt from current maturities of long-term debt on the balance sheet in the third quarter of 2022. The 2009 Series A and the 2009 Series B PCBs have a fixed interest rate of 3.60% per annum until maturity on February 1, 2040 and April 1, 2040, respectively. The 2009 Series A and the 2009 Series B PCBs are subject to optional redemption at a redemption price of par on or after June 1, 2029.

(2)Senior Notes

The Senior Notes are unsecured obligations of EPE. The Senior Notes were issued under agreements with contractual covenants that provide limitations on EPE’s ability to enter into certain transactions. The 6.00% Senior Notes have an aggregate principal amount of $400.0 million and were issued in May 2005. EPE amortizes the loss associated with a cash flow hedge recorded in Accumulated Other Comprehensive Income ("AOCI") to earnings as interest expense over the life of the 6.00% Senior Notes. See Note K of Notes to Financial Statements. This amortization is included in the effective interest rate of the 6.00% Senior Notes.

The 7.50% Senior Notes due 2038 have an aggregate principal amount of $150.0 million and were issued in June 2008. The 3.30% Senior Notes due 2022 had an aggregate principal amount of $150.0 million and were issued in December 2012. On September 15, 2022, EPE elected to redeem equal to 100% of the principal amount of its 3.30% Senior Notes with principal amount of $150.0 million which had a maturity date of December 15, 2022, utilizing funds from the proceeds of the 2.91% Senior Notes issued on February 15, 2022 further discussed in below.

In December 2014, EPE issued 5.00% Senior Notes with an aggregate principal amount of $150.0 million. In March 2016, EPE issued additional 5.00% Senior Notes with an aggregate principal amount of $150.0 million. After the March 2016 issuance, EPE's 5.00% Senior Notes due 2044 have an aggregate principal balance amount of $300.0 million.

The 4.22% Senior Notes issued in June 2018 have an aggregate principal amount of $125.0 million and are due August 15, 2028. EPE pays interest on the notes semi-annually on February 15 and August 15 of each year until maturity, beginning on February 15, 2019. EPE may redeem the notes, in whole or in part, at any time at a redemption price equal to 100% of the principal amount to be redeemed together with the interest on such principal amount accrued to the date of redemption, plus a make-whole amount based on the prevailing market interest rates. The issuance and sale of these senior notes was made in reliance on a private placement exemption from the registration provisions of the Securities Act of 1933, as amended (the "Securities Act").

On February 15, 2022, EPE issued 2.91% Senior Notes with an aggregate principal amount of $150.0 million and a maturity date of September 1, 2032, and 3.54% Senior Notes with an aggregate principal amount of $200.0 million and a maturity date of February 15, 2052. The 3.54% Senior Notes were funded on February 15, 2022 and the 2.91% Senior Notes were funded on September 1, 2022. EPE pays interest on the notes semi-annually on February 15 and August 15 of each year until maturity, with the first payment on August 15, 2022 and February 15, 2023, respectively. EPE used the proceeds from the sale of these senior notes for the repayment of existing indebtedness and for general corporate purposes.

(3)RGRT Senior Notes

In 2018, EPE and the Rio Grande Resources Trust II ("RGRT"), a Texas grantor trust through which EPE finances its portion of fuel for Palo Verde, entered into a note purchase agreement with several institutional purchasers under which the RGRT issued and sold $65.0 million aggregate principal amount of 4.07% Senior Guaranteed Notes due August 15, 2025 ("RGRT Senior Notes"). RGRT pays interest on the Senior Notes on February 15 and August 15 of each year until maturity, beginning on February 15, 2019.

On September 22, 2021, the RGRT and EPE entered into a Note Purchase Agreement (the "RGRT Agreement") with one institutional purchaser. Under the terms of the RGRT Agreement, the RGRT issued and sold $45.0 million aggregate principal amount of 2.35% Senior Guaranteed Notes due September 22, 2031 (the "RGRT Senior Guaranteed Notes"). The net proceeds from the RGRT Senior Guaranteed Notes were used to repay outstanding short-term borrowings under the RCF to finance nuclear fuel purchases. The RGRT will pay interest on the RGRT Senior Guaranteed Notes semi-annually on April 15 and October 15 of each year until maturity, beginning on April 15, 2022.

EPE guaranteed the payment of principal and interest on the RGRT Senior Notes and Senior Guaranteed Notes. RGRT’s assets, liabilities and operations are consolidated in EPE’s Regulatory-Basis financial statements and the RGRT Senior Notes and Senior Guaranteed Notes are included as obligations under capital lease of nuclear fuel on the Regulatory-Basis Balance Sheet. RGRT may redeem the RGRT Senior Notes and Senior Guaranteed Notes, in whole or in part, at any time at a redemption price equal to 100% of the principal amount to be redeemed together with the interest on such principal amount accrued to the date of redemption, plus a make-whole amount based on the prevailing market interest rates. The

sale of the RGRT Senior Notes and Senior Guaranteed Notes were made in reliance on a private placement exemption from the registration provisions of the Securities Act.

(4)Capitalized Operating Leases

See Note A of Notes to Financial Statements "Leases" section for further discussion.

(5)Revolving Credit Facility

In 2018, EPE and The Bank of New York Mellon Trust Company, N.A., as trustee of the RGRT, entered into a third amended and restated credit agreement ("RCF Agreement") with MUFG Union Bank, N.A., as administrative agent and as syndication agent, various issuing banks and lending banks party thereto. Under the terms of the RCF Agreement, EPE had available a $350.0 million RCF with a $50.0 million subfacility for the issuance of letters of credit, and EPE extended the term of EPE's existing $350.0 million revolving credit agreement to September 13, 2023. On March 20, 2020, EPE exercised its option to extend the maturity of the RCF by one year to September 13, 2024 and to increase the borrowing commitments under the RCF by $50.0 million to $400.0 million. EPE has the option to extend the facility by one additional year to September 2025 upon the satisfaction of certain conditions set forth in the RCF Agreement, including requisite lender approval.

The RCF Agreement provides that amounts borrowed by EPE may be used for, among other things, working capital and general corporate purposes. Any amounts borrowed by the RGRT may be used, among other things, to finance the acquisition and cost to process nuclear fuel. Amounts borrowed by the RGRT are guaranteed by EPE and the balance borrowed under the RCF Agreement is recorded as a capital lease of nuclear fuel on the Regulatory-Basis Balance Sheet. Quarterly lease payments are made based upon units of heat production used by the plant. The RCF Agreement is unsecured. EPE also issues letters of credit utilizing the RCF. As of December 31, 2022, $295.0 million of borrowings were outstanding under the RCF for working capital and general corporate purposes. Additionally, as of December 31, 2022, the total amount borrowed by the RGRT under the RCF for nuclear fuel was $10.8 million which includes accrued interest of $1.3 million and issued letters of credit utilizing the RCF totaled $4.7 million, with an additional $90.8 million available to borrow. The total amount of letters of credit utilizing the RCF was amended to $1.2 million as of January 31, 2023. The weighted average interest rate on the RCF was 5.5% as of December 31, 2022.

As of December 31, 2022, the principal amount of scheduled maturities for the next five years of long-term debt are as follows (in thousands):


2023	$	—
2024	—
2025	65,000
2026	—
2027	—

Pursuant to the debt agreements, EPE is required to comply with various covenants and restrictions, including a total debt to capitalization ratio as required by each one of EPE’s and RGRT’s private placement debt securities and the RCF. EPE is in compliance with all of its debt covenants and restrictions.

H. Income Taxes

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31, 2022 and 2021 are presented below (in thousands):


	December 31,
	2022		2021
Deferred tax assets:
Plant, principally due to capitalized costs	$	49,970	$	45,370

Pensions and benefits	20,662		19,716
Regulatory liabilities related to income taxes	63,067		66,391
Asset retirement obligations	30,309		27,725
Strategic transaction costs	4,542		6,778
Other	20,803		14,711
Total gross deferred tax assets	189,353		180,691
Deferred tax liabilities:
Plant, principally related to depreciation and basis differences	(455,897)		(450,383)
Regulatory assets related to income taxes	(39,456)		(37,240)
Decommissioning	(38,223)		(51,933)
Other	(7,721)		(19,483)
Total gross deferred tax liabilities	(541,297)		(559,039)
Net accumulated deferred income taxes	$	(351,944)	$	(378,348)

During 2021, EPE fully utilized all remaining alternative minimum tax credit carryforwards, and all other tax loss and credit carryforwards. Based on the average annual earnings before taxes for the prior two years, and excluding the effects of unusual or infrequent items, EPE believes that the deferred tax assets will be fully realized.

EPE recognized income tax expense for the years ended December 31, 2022 and 2021 as follows (in thousands):


	Years Ended December 31,
	2022		2021
Income tax expense (benefit):
Federal:
Current	$	53,250	$	29,019
Deferred	(45,589)		6,690
Investment tax credit	10		(1,620)
Total federal income tax	7,671		34,089
State:
Current	5,268		2,870
Deferred	(1,728)		(646)
Total state income tax	3,540		2,224

Total income tax expense	$	11,211	$	36,313


Effective income tax expense			9.0		%				19.9		%

Federal income tax provisions differ from amounts computed by applying the statutory federal income tax rate of 21% for all periods to book income before federal income tax as follows (in thousands):


	Years Ended December 31,
	2022		2021
Federal income tax expense computed on income at statutory rate	$	26,152	$	38,331
Difference due to:
State income taxes (federal effect)	(744)		(467)
Investment tax credit, net of deferred taxes	8		(1,280)
Allowance for equity funds used during construction	(756)		(133)
Amortization of excess deferred taxes	(5,439)		(1,645)
Write-off of excess deferred taxes	(10,043)		—
Amortization of regulatory assets and liabilities	2		(340)
Permanent tax differences	(1,509)		(377)
Total federal income tax expense	$	7,671	$	34,089

In 2022, as part of the 2021 PUCT Final Order, certain timing differences related to the TCJA excess deferred taxes were disallowed. This resulted in an excess deferred taxes write-off of approximately $10.0 million.

EPE files its income tax returns as a consolidated group in the U.S. federal jurisdiction and in the states of Texas, New Mexico and Arizona. EPE's financial statements are presented on EPE's stand-alone basis. EPE made tax payments to affiliates of $30.0 million and $14.5 million in 2022 and 2021, respectively. As of December 31, 2022, EPE does not have any tax payments due to affiliates. EPE is no longer subject to tax examination by the taxing authorities in the federal, Arizona and New Mexico jurisdictions for years prior to 2018. On August 16, 2022, President Biden signed into law H.R. 5376, the Inflation Reduction Act of 2022 (“IRA”). EPE is currently evaluating the impact that the IRA will have on its financial statements.

The FASB guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. There were no changes to the recognized tax positions for the years ended December 31, 2022 and 2021.

EPE recognizes in interest and penalty expense accounts, interest and penalties related to tax benefits that are uncertain. For the years ended December 31, 2022 and 2021, EPE recognized a tax benefit of $0.4 million and of $0.3 million,

respectively. EPE had approximately $0.3 million and $0.7 million accrued for the payment of interest and penalties at December 31, 2022 and 2021, respectively.

I. Commitments, Contingencies and Uncertainties

Litigation

EPE is involved in various legal, environmental, tax and regulatory proceedings before various courts, regulatory commissions and governmental agencies regarding matters arising in the ordinary course of business. In many of these matters, EPE has excess casualty liability insurance that covers the various claims, actions and complaints. EPE regularly analyzes current information and, as necessary, makes provisions in its regulatory-basis financial statements for probable liabilities for the eventual disposition of these matters. While the outcome of these matters cannot be predicted with certainty, based upon a review of the matters and applicable insurance coverage, EPE believes that none of these matters will have a material adverse effect on the financial position, results of operations or cash flows of EPE. EPE expenses legal costs, including expenses related to loss contingencies, as they are incurred.

Power Purchase and Sale Contracts

To supplement its own generation and operating reserve requirements and to meet its RPS requirements, EPE engages in power purchase arrangements that may vary in duration and amount based on an evaluation of EPE’s resource needs, the economics of the transactions and specific RPS requirements. EPE filed for regulatory approval with the NMPRC for power purchase and energy storage agreements relating to both solar and battery storage resources as a result of EPE's 2021 New Mexico All Source Request for Proposal for Electric Power Supply and Load Management Resources on October 3, 2022, and an amended application on November 18, 2022. See Note D of Notes to Financial Statements for further discussion. EPE has entered into the following significant agreements with various counterparties for the purchase and sale of electricity:

Commercial

Operation

Type of Contract

Counterparty

Quantity

Term

Date

Power Purchase and Sale Agreement

Freeport

25

MW

December 2008 through December 2023

N/A

Power Purchase and Sale Agreement

Freeport

100

MW

June 2006 through December 2023

N/A

Power Purchase Agreement

Hatch Solar Energy Center I, LLC

5

MW

July 2011 through July 2036

July 2011

Power Purchase Agreement

Solar Roadrunner, LLC

20

MW

August 2011 through August 2031

August 2011

Power Purchase Agreement

SunE EPE1, LLC

10

MW

June 2012 through June 2037

June 2012

Power Purchase Agreement

SunE EPE2, LLC

12

MW

May 2012 through May 2037

May 2012

Power Purchase Agreement

Macho Springs Solar, LLC

50

MW

May 2014 through May 2034

May 2014

Power Purchase Agreement

Newman Solar, LLC

10

MW

December 2014 through December 2044

December 2014

Power Purchase and Sale Agreement

Dynasty Power, Inc

67

MW

August 2021 through December 2023

N/A

Power Sale Agreement

Public Service Company of New Mexico

40

MW

January 2023 through December 2023

N/A

Power Purchase and Sale Agreement

Tenaska Power Services Co.

125

MW

January 2023 through December 2023

N/A

Power Purchase and Sale Agreement

Tenaska Power Services Co.

125

MW

January 2024 through December 2024

N/A

Power Purchase Agreement

Buena Vista Energy Center, LLC

150

MW

Twenty years from Commercial Operation

Anticipated June 2023

Power Purchase Agreement

Buena Vista Energy Center II, LLC

20

MW

Twenty years from Commercial Operation

Anticipated June 2023

Power Purchase Agreement

Hecate Energy Santa Teresa, LLC

100

MW

Twenty years from Commercial Operation

Anticipated June 2024

Power Purchase Agreement

Hecate Energy Santa Teresa 2, LLC

50

MW

Twenty years from Commercial Operation

Anticipated June 2024

EPE has a firm 100 MW Power Purchase and Sale Agreement ("Power Purchase and Sale Agreement") with Freeport-McMoRan Copper & Gold Energy Services, LLC ("Freeport") that provides for Freeport to deliver energy to EPE from the Luna Energy Facility (a natural gas-fired combined cycle generation facility located in Luna County, New Mexico) and for EPE to deliver a like amount of energy at Greenlee, Arizona. EPE may purchase the quantities noted in the table above at a specified price at times when energy is not exchanged under the Power Purchase and Sale Agreement. The agreement was approved by the FERC and was set to continue through its initial term ending December 31, 2021, with subsequent rollovers until terminated; however, on October 19, 2021, the parties agreed to extend the term through December 31, 2023. Upon mutual agreement, the Power Purchase and Sale Agreement allows the parties to increase the amount of energy that is purchased and sold under the agreement. The parties have agreed to increase the amount up to 125 MW through December 2023.

EPE has entered into several power purchase agreements to help meet its RPS requirements. Namely, EPE has a 25-year purchase power agreement with Hatch Solar Energy Center I, LLC to purchase all of the output from a solar photovoltaic plant located in southern New Mexico, which began commercial operation in July 2011. In June 2015, EPE entered into a consent agreement with Hatch Solar Energy Center 1, LLC to provide for additional or replacement photovoltaic modules. EPE also has a 20-year contract with Solar Roadrunner, LLC, a subsidiary of Global Infrastructure Partners, (formerly known as NRG Solar Roadrunner, LLC) to purchase all of the output of a solar photovoltaic plant built in southern New Mexico, which began commercial operation in August 2011. In addition, EPE has 25-year purchase power agreements to purchase all of the output of two additional solar photovoltaic plants located in southern New Mexico, SunE EPE1, LLC and SunE EPE2, LLC, which began commercial operation in June 2012 and May 2012, respectively. In September 2017, Longroad Solar Portfolio Holdings, LLC purchased SunE EPE1, LLC, and in October 2017, Silicon Ranch Corporation purchased SunE EPE2, LLC with EPE's consent per the terms of both power purchase agreements.

EPE has a 20-year power purchase agreement with Macho Springs Solar, LLC to purchase the entire generation output delivered from the 50 MW Macho Springs solar photovoltaic plant located in Luna County, New Mexico, which began commercial operation in May 2014. Additionally, EPE has a 30-year power purchase agreement with Newman Solar, LLC to purchase the total output of approximately 10 MW from a solar photovoltaic plant on land subleased from EPE in proximity to Newman Power Generating Station. This solar photovoltaic plant began commercial operation in December 2014.

EPE also has four other purchase power agreements: (i) a 20-year power purchase agreement with Buena Vista Energy Center, LLC to purchase up to 100 MW plus up to 50 MW of battery storage from the Buena Vista Energy solar photovoltaic plant located in Otero County, New Mexico; (ii) a 20-year purchase power agreement with Hecate Energy Santa Teresa to purchase up to 100 MW from the Hecate photovoltaic plant located in Santa Teresa, New Mexico; (iii) a 20-year power purchase agreement with Buena Vista Energy Center II, LLC to purchase up to 20 MW from the Buena Vista Energy II, LLC photovoltaic plant located in Otero County, New Mexico; and (iv) a 20-year power purchase agreement with Hecate Energy Santa Teresa 2, LLC to purchase up to 50 MW from the Hecate Energy Santa Teresa 2, LLC photovoltaic plant located in Santa Teresa, New Mexico. The Buena Vista Energy Center II, LLC facilities were anticipated to begin commercial operation by November 2022; however, NextEra, the developer, notified EPE that both projects will be delayed beyond the original commercial operation dates. Both projects are anticipated to be commercially operational by June 2023. Hecate Energy Santa Teresa, LLC, a 100 MW photovoltaic facility, and Hecate Energy Santa Teresa 2, LLC, a 50 MW photovoltaic facility, had an original, anticipated commercial operation date of May 1, 2022; however, Hecate notified EPE that the projects will be delayed beyond the original commercial operation dates. Both projects are anticipated to be commercially operational by June 2024. On November 14, 2022, EPE filed for regulatory approval with the NMPRC for amendments to these four previously-approved power purchase agreements as a result of EPE's 2017 New Mexico All Source Request for Proposal for Electric Power Supply and Load Management Resources and to meet RPS requirements in New Mexico.

In September 2022, EPE entered into a unit contingent sale, effective January 1, 2023 through December 31, 2023, for 40 MW of Palo Verde Unit 3 that is approximately equal to the portion allocated to its New Mexico jurisdiction in response to the NMPRC final order in Case No. 20-00104-UT, which did not set a market proxy price for recovery of the costs of Palo Verde Unit 3.

EPE has also engaged in four exchange transactions: (i) with TransAlta Energy Marketing (U.S.) Inc., whereby EPE delivered up to 67 MW at Palo Verde and received an equal amount at Amrad 345kV switchyard from June 17, 2021 to September 30, 2021, with an option to continue the exchange for the June 1, 2022 to September 30, 2022 period as well as for the same period for 2023; (ii) with Dynasty Power Inc. through December 2023, whereby EPE delivers up to 67 MW at Palo Verde and receives an equal amount at Amrad 345kV switchyard; (iii) with Tenaska Power Services Co., whereby EPE delivers up to 125 MW at Palo Verde and receives an equal amount at the Palo Verde, San Juan or Four Corners delivery point from January 1, 2023 to December 31, 2023; and (iv) with Tenaska Power Services Co., whereby EPE delivers up to 125 MW at Palo Verde and receives an equal amount at the Palo Verde, San Juan or Four Corners delivery point from January 1, 2024 to December 31, 2024. On January 20, 2022, EPE filed a request with FERC in Docket No. ER22-855-000, to broaden the scope of the exchange agreement with Dynasty Power Inc. to permit such transactions at any time during the year and extend through December 2023. EPE's request was accepted by FERC and became effective in March 2022. EPE also entered into monthly/quarterly sale and purchase transactions for 2022 of various energy products, such as firm energy up to 100 MW and unit contingent energy up to 60 MW.

Environmental Matters

EPE is subject to extensive laws, regulations and permit requirements with respect to air and greenhouse gas ("GHG") emissions, water discharges, soil and water quality, waste management and disposal, natural resources and other environmental matters by federal, state, regional, tribal and local authorities. Failure to comply with such laws, regulations and requirements can result in actions by authorities or other third parties that might seek to impose on EPE administrative, civil and/or criminal penalties or other sanctions. In addition, releases of pollutants or contaminants into the environment can result in costly cleanup liabilities. These laws, regulations and requirements are subject to change through modification or reinterpretation, or the introduction of new laws and regulations and, as a result, EPE may face additional capital and operating costs to comply.

National Ambient Air Quality Standards ("NAAQS"). Under the U.S. Clean Air Act, the U.S. Environmental Protection Agency ("EPA") sets NAAQS for six criteria pollutants considered harmful to public health and the environment, including particulate matter, nitrogen oxide, carbon monoxide, ozone sulfur dioxide, and lead. In June 2018, the EPA designated El Paso County, Texas, as "attainment/unclassifiable" under the 2015 ozone NAAQS and designated a section of southern Doña Ana County, New Mexico, as "nonattainment."

On November 30, 2021, the EPA revised the initial air quality designation of the 2015 NAAQS for El Paso County, Texas to nonattainment. The EPA's modification of the initial attainment designation expands the boundary of the Dona Ana County, New Mexico nonattainment area to include multiple counties and thus, becomes a multi-state nonattainment area. On February 28, 2022, the Texas Commission on Environmental Quality ("TCEQ") submitted a demonstration to the EPA showing that El Paso County would have attained the 2015 eight-hour ozone NAAQS by the marginal attainment date of August 3, 2021, "but for" international contributions from neighboring Ciudad Juárez, in México. If the demonstration is approved by the EPA, the TCEQ would not be required by the EPA to create new rules to reduce emissions in El Paso County. States that contain any areas designated as nonattainment are required to develop implementation plans to address air quality. EPE continues to evaluate what impact these NAAQS designations could have on its operations. If EPE is required to install additional equipment to control emissions at its facilities, the nonattainment designations, individually or in the aggregate, could have a material impact on its operations and financial result.

On March 15, 2021, the EPA finalized the Revised Cross-State Air Pollution Rule Update for the 2008 ozone NAAQS. Starting with the 2021 ozone season, the rule required additional emissions reductions of nitrogen oxides (NOx) from power plants in 12 states in the eastern portion of the U.S. Although Texas was not part of the 12 state's group, the implementation of the rule beginning with the 2021 ozone season emissions had a direct impact on the availability and price of allowances in the market. To further continue reducing pollution that significantly contributes to problems attaining and maintaining the 2015 ozone NAAQS in downwind states, the EPA proposed the "Good Neighbor" Plan on February 28, 2022. Several states, including Texas, will become part of the Group 3 Trading Program. The EPA will hold a public hearing on the proposal and will open a 60-day public comment period after publication in the Federal Register. EPE will continue to monitor the status of the proposal and will evaluate any potential impacts on its operation.

On January 6, 2023, the EPA announced its proposed decision to revise the primary annual fine particulate matter (PM2.5) standard from its current level of 12.0 µg/m3 to within the range of 9.0 to 10.0 µg/m3. The EPA expects to issue a final decision on the PM standard in 2024. Currently, the City of El Paso is in attainment for PM2.5. However, depending on the final standard set by the EPA, the City of El Paso's attainment designation could change. EPE will continue to monitor any future updates on the proposed decision.

Climate Charter. Ground Game Texas, based in Austin, and Sunrise El Paso, a chapter of the National Sunrise Movement, submitted a proposal to amend the City of El Paso's city charter and create the El Paso Climate Charter ("Climate Charter"). The proposal will be placed for vote on the City of El Paso's special election ballot on May 6, 2023. Two sections in the Climate Charter are most impactful to EPE. First, Section 9.12 Water Conservation, which bans the use of the City of El Paso's water for fossil fuel industry activities outside of El Paso's city limits. The Climate Charter language specifically names EPE as a fossil fuel industry, therefore, EPE facilities outside of El Paso city limits would not be able to purchase City of El Paso's water for power generation. Second, Section 9.10 Municipalization of EPE, which calls for the City of El Paso to employ all available efforts to convert EPE to municipal ownership, including the compilation of an annual report created by El Paso's Climate Director and City Manager, describing the feasibility of converting EPE into a municipal electric company, and actions required to advance this objective. If passed, this proposed ordinance would have a significant impact on the reliability and affordability of electric service for EPE customers. EPE will continue to monitor the progress of this proposal.

Climate Change. The federal government has considered, proposed and/or finalized legislation or regulations to address climate change and limit GHG emissions, including carbon dioxide. In particular, the Biden Administration in January 2021, issued an Executive Order broadly addressing means to tackle climate change, including the proposition of decarbonizing the power sector by 2035.

Internationally, the United Nations Framework Convention on Climate Change finalized an agreement among 195 nations at the 21st Conference of the Parties in Paris with an overarching goal of preventing global temperatures from rising more than 2 degrees Celsius (the "Paris Agreement"). The Paris Agreement includes provisions requiring every country to lower emissions, but there are no requirements specifying how or by what amount emissions should be lowered. In January 2021, the U.S. committed to rejoining the Paris Agreement.

New legislation, regulations or international agreements could result in increased costs to operate and maintain our facilities, capital expenditures to install new emission controls at EPE's facilities, and costs to administer and manage any potential GHG emissions or carbon trading or tax programs. These costs and capital expenditures could be material. The potential impact of the Paris Agreement, GHG regulations, and climate initiatives on EPE is unknown at this time, but could result in significant costs, limitations on operating hours, and/or changes in construction schedules for future generating units.

Union Matters

EPE employs approximately 1,100 individuals, about 37% of which are covered by a collective bargaining agreement. The International Brotherhood of Electrical Workers Local 960 ("Local 960") represents EPE’s employees working primarily in power generation, transmission and distribution, communications, material services, fleet services, facilities services, customer services, meter reading, and field services. On October 15, 2019, EPE reached agreement on the terms of a collective bargaining agreement with Local 960, to be effective September 3, 2019, for a four-year term ending September 3, 2023. The agreement provided for pay increases for bargaining unit employees of 3.00% on September 3, 2021 and 3.20% on September 3, 2022. On February 23, 2023, EPE reached agreement on the terms of a new collective bargaining agreement with Local 960, to be effective March 3, 2023, for a five-year term ending March 3, 2028. The agreement provides for pay increases for bargaining unit employees of 8.0% on March 3, 2023; 5.0% on March 3, 2024; 4.0% on March 3, 2025 and 2026; and 3.0% on March 3, 2027.

Franchises

EPE operates under franchise agreements with several cities in its service territory, including one with the City of El Paso, Texas, the largest city it serves. The franchise agreement allows EPE to utilize public rights-of-way necessary to serve its customers within the City of El Paso. Pursuant to the El Paso franchise agreement, EPE pays to the City of El Paso, on a quarterly basis, a fee equal to 5.00% of gross revenues EPE receives for the generation, transmission and distribution of electrical energy and other services within the City of El Paso. EPE sought approval from the City of El Paso on September 20, 2019, for a deemed assignment of the franchise agreement as a result of the merger between EPE and Sun Jupiter Holdings, LLC ("Parent"), which approval was granted on February 4, 2020. The El Paso franchise agreement expires on July 31, 2060.

EPE does not have a written franchise agreement with the City of Las Cruces, the second largest city in its service territory. EPE utilizes public rights-of-way necessary to service its customers within the City of Las Cruces under an implied franchise pursuant to state law by satisfying all obligations under the franchise agreement that expired on April 30, 2009. EPE pays the City of Las Cruces a franchise fee of 2.00% of gross revenues EPE receives from services within the City of Las Cruces.

EPE also maintains franchise agreements with other municipalities, and applicable counties, within its service territories.

Significant Customers - Military Installations

EPE serves Holloman Air Force Base ("HAFB"), White Sands Missile Range ("White Sands") and Fort Bliss U.S. Army Post ("Fort Bliss"). These military installations represent approximately 2.00% of EPE's annual retail revenues in 2022. In July 2014, EPE signed an agreement with Fort Bliss under which Fort Bliss takes retail electric service from EPE under the applicable Texas tariffs. EPE serves White Sands under the applicable New Mexico tariffs. In August 2016, EPE signed a contract with HAFB under which EPE provides retail electric service and limited wheeling services to HAFB under the applicable New Mexico tariffs. Pursuant to the contract, HAFB purchases the full output of an EPE-owned 5-MW solar facility. HAFB's other power requirements are provided under the applicable New Mexico tariffs with limited wheeling services under the contract.

J. Employee Benefits

EPE adopted ASU 2017-07, Compensation-Retirement Benefits, effective January 1, 2018 for GAAP purposes. EPE records all components of net periodic pension cost as an operating expense in its regulatory-basis financial statements and has elected to conform to the GAAP capitalization policy, which is that only the service cost component is eligible for capitalization.

The cumulative impact of the change in capitalization policy, effective January 1, 2018, resulted in additional capitalized benefits cost which will increase rate base in the future, while lowering cost of service by an offsetting amount. As the assets impacted by the change in rate base are depreciated over their useful life, rate base will decrease, offset by an increase in cost of service due to higher depreciation expense. EPE filed its Application for Revision of Retail Electric Rates on May 29, 2020 with NMPRC and NMPRC issued a final order on June 23, 2021. NMPRC did not reject this new capitalization policy. EPE filed its 2021 Retail Rates Case on June 1, 2021 with PUCT and PUCT issued a final order on September 15, 2022. PUCT did not reject this new capitalization policy.

Retirement Plans

EPE’s Retirement Income Plan ("Retirement Plan") is a qualified noncontributory defined benefit plan. Upon retirement or death of a vested plan participant, assets of the Retirement Plan are used to pay benefit obligations under the Retirement Plan. Contributions from EPE are based on various factors, such as the minimum funding amounts required by the U.S. Internal Revenue Service, state and federal regulatory requirements, amounts requested from customers in EPE's Texas and New Mexico jurisdictions, and the annual net periodic benefit cost of the Retirement Plan, as actuarially calculated. The assets of the

Retirement Plan are primarily invested in common collective trusts which hold equity securities, debt securities and cash equivalents and are managed by a professional investment manager appointed by EPE.

EPE has two non-qualified retirement plans that are non-funded defined benefit plans. EPE's Supplemental Retirement Plan was adopted in 1986 and covers certain former employees and directors of EPE. The Excess Benefit Plan was adopted in 2004 and covers certain active and former employees of EPE. The net periodic benefit cost for the non-qualified retirement plans are based on substantially the same actuarial methods and economic assumptions as those used for the Retirement Plan.

The Retirement Plan was amended effective April 1, 2014 to offer a cash balance pension benefit as an alternative to its existing final average pay pension benefit for employees hired prior to January 1, 2014. Employees hired after January 1, 2014 are automatically enrolled in the cash balance pension benefit.

Prior to December 31, 2013, employees who completed one year of service with EPE and worked at least a minimum number of hours each year were covered by the final average pay formula of the Retirement Plan. For participants that continue to be covered by the final average pay formula, retirement benefits are based on the employee’s final average pay and years of service. The cash balance pension benefit covers employees beginning on their employment commencement date or re-employment commencement date. Retirement benefits under the cash balance pension benefit are based on the employee’s cash balance account, consisting of pay credits and interest credits.

EPE offered a retirement incentive to 150 of its retirement-eligible employees in August 2021 to manage retirement eligible employee departures and restructure the workforce. Ninety employees chose to take the cash incentive, and the majority retired between September 1, 2021 and December 31, 2021. The cost of the retirement incentive program was $0.6 million and $7.5 million in 2022 and 2021, respectively.

The cash incentives were made outside of the Retirement Plan, and therefore, termination benefits accounting did not apply for this event. However, as participants were eligible to retire under the Retirement Plan and able to take lump sum payments where applicable, EPE informed its actuaries of this event as part of their annual actuarial assumptions review. EPE also reviewed applicable accounting guidance under ASC 715 Compensation – Retirement Benefits and determined that this event did not trigger settlement or curtailment accounting.

The obligations and funded status of the plans are presented below (in thousands):


	December 31,
	2022				2021
	Retirement Income Plan		Non-Qualified Retirement Plans		Retirement Income Plan		Non-Qualified Retirement Plans
Change in projected benefit obligation:
Benefit obligation at end of prior year	$	421,643	$	28,934	$	442,014	$	30,975
Service cost	9,519		199		10,448		235
Interest cost	10,375		611		8,874		525
Actuarial (gain) loss	(108,758)		(6,176)		(11,516)		15
Benefits paid	(23,391)		(2,249)		(28,177)		(2,816)
Benefit obligation at end of year	309,388		21,319		421,643		28,934
Change in plan assets:
Fair value of plan assets at end of prior year	389,310		—		375,327		—
Actual return on plan assets	(94,425)		—		37,114		—
Employer contribution	1,700		2,249		7,300		2,816
Benefits paid	(23,391)		(2,249)		(28,177)		(2,816)
Administrative and investment expenses	(1,523)		—		(2,254)		—
Fair value of plan assets at end of year	271,671		—		389,310		—
Funded status at end of year	$	(37,717)	$	(21,319)	$	(32,333)	$	(28,934)

Amounts recognized in EPE's Regulatory-Basis Balance Sheets consist of the following (in thousands):


	December 31,
	2022				2021
	Retirement Income Plan		Non-Qualified Retirement Plans		Retirement Income Plan		Non-Qualified Retirement Plans
Current liabilities	$	—	$	(1,879)	$	—	$	(1,847)
Noncurrent liabilities	(37,717)		(19,440)		(32,333)		(27,087)
Total	$	(37,717)	$	(21,319)	$	(32,333)	$	(28,934)

The accumulated benefit obligation in excess of the plans' assets is as follows (in thousands):


	December 31,
	2022				2021
	Retirement Income Plan		Non-Qualified Retirement Plans		Retirement Income Plan		Non-Qualified Retirement Plans
Projected benefit obligation	$	(309,388)	$	(21,319)	$	(421,643)	$	(28,934)
Accumulated benefit obligation	(291,359)		(20,958)		(386,669)		(27,546)
Fair value of plan assets	271,671		—		389,310		—

Pre-tax amounts for the plans recognized in AOCI consist of the following (in thousands):


	Years Ended December 31,
	2022				2021
	Retirement Income Plan		Non-Qualified Retirement Plans		Retirement Income Plan		Non-Qualified Retirement Plans
Net loss	$	87,835	$	4,779	$	81,590	$	12,069
Prior service benefit	(3,074)		—		(6,541)		—
Total	$	84,761	$	4,779	$	75,049	$	12,069

The plans' actuarial gains were due to the changes in assumptions for the year ended 2022, and the demographic experience. Significant reasons for these changes include the following: (i) the single equivalent discount rate used to measure the accumulated and projected benefit obligations increased compared to the year ended December 31, 2021, which improved the funded position, and (ii) contributions to the plan during the prior year improved the funded status.

The following are the weighted-average actuarial assumptions used to determine the benefit obligations under the plans:


	December 31,
	2022						2021
			Non-Qualified						Non-Qualified
	Retirement Income Plan		Supplemental Retirement Plan		Excess Benefit Plan		Retirement Income Plan		Supplemental Retirement Plan		Excess Benefit Plan
Discount rate	5.54	%	5.42	%	5.51	%	2.95	%	2.56	%	2.96	%
Rate of compensation increase	4.5	%	N/A		4.5	%	4.5	%	N/A		4.5	%

EPE reassesses various actuarial assumptions at least on an annual basis. The discount rate is reviewed and updated at each measurement date. The discount rate used to measure the fiscal year end obligation is based on a segmented spot rate yield curve that matches projected future payments with the appropriate interest rate applicable to the timing of the projected future benefit payments.

The cash balance interest crediting rate is based on a 20-year expectation of long-term government bonds, since the plan credits interest to cash balance accounts using the 30-year Treasury rate, but with a minimum interest crediting rate of 3.8%.

The components of net periodic benefit cost (income) for the plans are presented below (in thousands):


	Years Ended December 31,
	2022				2021
	Retirement Income Plan		Non-Qualified Retirement Plans		Retirement Income Plan		Non-Qualified Retirement Plans
Service cost (a)	$	11,042	$	199	$	12,702	$	235
Interest cost	10,375		611		8,874		525
Expected return on plan assets	(25,335)		—		(23,066)		—
Amortization of:
Net loss	4,757		1,113		9,441		1,326
Prior service benefit	(3,467)		—		(3,467)		(29)
Net periodic benefit cost (income)	$	(2,628)	$	1,923	$	4,484	$	2,057

_____________________

(a) Service cost for the Retirement Plan includes expenses of $1.5 million and $2.3 million for 2022 and 2021, respectively, for administrative and investment expenses paid from plan assets during the year.

The changes in benefit obligations and plan assets recognized in other comprehensive income for the plans are presented below (in thousands):


	Years Ended December 31,
	2022				2021
	Retirement Income Plan		Non-Qualified Retirement Plans		Retirement Income Plan		Non-Qualified Retirement Plans
Net (gain) loss	$	11,002	$	(6,176)	$	(25,564)	$	15
Amortization of:
Net loss	(4,757)		(1,113)		(9,441)		(1,326)
Prior service benefit	3,467		—		3,467		29
Total recognized in other comprehensive income	$	9,712	$	(7,289)	$	(31,538)	$	(1,282)

The total amount recognized in net periodic benefit costs and other comprehensive income for the plans are presented below (in thousands):


	Years Ended December 31,
	2022				2021
	Retirement Income Plan		Non-Qualified Retirement Plans		Retirement Income Plan		Non-Qualified Retirement Plans
Total recognized in net periodic benefit cost and other comprehensive income	$	7,084	$	(5,366)	$	(27,054)	$	775

The following are the weighted-average actuarial assumptions used to determine the net periodic benefit cost for the plans for the years ended December 31:


	2022						2021
			Non-Qualified						Non-Qualified
	Retirement Income Plan		Supplemental Retirement Plan		Excess Benefit Plan		Retirement Income Plan		Supplemental Retirement Plan		Excess Benefit Plan
Discount rate
Benefit obligation	2.97	%	2.65	%	2.94	%	2.66	%	2.05	%	2.65	%
Service cost	3.18	%	N/A		2.87	%	2.97	%	N/A		2.72	%
Interest cost	2.51	%	2.01	%	2.51	%	2.04	%	1.40	%	2.10	%
Expected long-term return on plan assets	7.0	%	N/A		N/A		7.0	%	N/A		N/A
Rate of compensation increase	4.5	%	N/A		4.5	%	4.5	%	N/A		4.5	%

Effective January 1, 2021, EPE’s overall expected long-term rate of return on plan assets was reduced to 7.0%, which is both a pre-tax and after-tax rate as pension funds are generally not subject to income tax. The expected long-term rate of return is based on the weighted average of the expected returns on investments based upon the target asset allocation of the plans.

EPE’s target allocations for the Retirement Plan assets are presented below:


	December 31, 2022
Equity securities	50.0	%
Fixed income	42.0	%
Alternative investments	8.0	%
Total	100.0	%

The Retirement Plan invests the majority of its plan assets in common collective trusts which includes a diversified portfolio of domestic and international equity securities and fixed income securities. Alternative investments of the Retirement Plan are comprised of equity securities of real estate companies, primarily in real estate investment trusts and equity securities of listed companies involved in infrastructure activities. The expected rate of returns for the funds are assessed annually and are based on long-term relationships among major asset classes and the level of incremental returns that can be earned by the successful implementation of different active investment management strategies. Equity, real estate equity and infrastructure equity returns are based on estimates of long-term inflation rate, real rate of return, 10-year Treasury bond premium over cash, an expected equity risk premium, as well as other economic factors. Fixed income returns are based on maturity, long-term inflation, real rate of return and credit spreads. These assumptions also capture the expected correlation of returns between these asset classes over the long term.

Fair Value Measurements. The FASB requires EPE to provide expanded quantitative disclosures for financial assets and liabilities recorded on the Regulatory-Basis Balance Sheet at fair value. To increase consistency and comparability in fair value measurements, the FASB guidance on fair value measurements established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels as follows:

•Level 1 – Observable inputs that reflect quoted market prices for identical assets and liabilities in active markets. Financial assets utilizing Level 1 input include investments that are in a highly liquid and active market. Prices of securities held in the mutual funds and underlying portfolios are primarily obtained from independent pricing services. These prices are based on observable market data. The investments are valued using the Net Asset Value ("NAV") provided by the administrator of the fund. The NAV price is quoted on a restrictive market although the underlying investments are traded on active markets. The NAV used for determining the fair value of the investments have readily determinable fair values. Accordingly, such fund values are categorized as Level 1.

•Level 2 – Inputs other than quoted market prices included in Level 1 that are observable for the asset or liability either directly or indirectly. The fair value of these investments is based on evaluated prices that reflect observable market information, such as actual trade information of similar securities, adjusted for observable differences.

•Level 3 – Unobservable inputs using data that is not corroborated by market data and primarily based on internal Company analysis using models and various other analysis.

The fair value of EPE’s Retirement Plan assets at December 31, 2022 and 2021, and the level within the three levels of the fair value hierarchy defined by the FASB guidance on fair value measurements are presented in the table below (in thousands):


Description of Securities	Fair Value as of December 31, 2022		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and Cash Equivalents	$	2,452	$	2,452	$	—	$	—
Common Collective Trusts (a)
Equity funds	134,762		134,762		—		—
Fixed income funds	112,752		112,752		—		—
Real asset funds	21,705		21,705		—		—
Total Common Collective Trusts	269,219		269,219		—		—
Total Plan Investments	$	271,671	$	271,671	$	—	$	—


Description of Securities	Fair Value as of December 31, 2021		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and Cash Equivalents	$	4,397	$	4,397	$	—	$	—
Common Collective Trusts (a)
Equity funds	197,089		197,089		—		—
Fixed income funds	156,007		156,007		—		—
Real asset funds	31,817		31,817		—		—
Total Common Collective Trusts	384,913		384,913		—		—
Total Plan Investments	$	389,310	$	389,310	$	—	$	—

_____________________

(a)The Common Collective Trusts are invested in equity and fixed income securities, or a combination thereof. The investment objective of each fund is to produce returns in excess of, or commensurate with, its predefined index.

There were no purchases, issuances, and settlements related to the assets in the Level 3 fair value measurement category during the twelve-month periods ended December 31, 2022 and 2021.

EPE and the fiduciaries responsible for the Retirement Plan adhere to the traditional capital market pricing theory which maintains that over the long term, the risk of owning equities should be rewarded with a greater return than available from fixed income investments. EPE and the fiduciaries responsible for the Retirement Plan seek to minimize the risk of owning equity securities by investing in funds that pursue risk minimization strategies and by diversifying its investments to limit its risks during falling markets. The investment manager has full discretionary authority to direct the investment of plan assets held in trust within the guidelines prescribed by EPE and the fiduciaries responsible for the Retirement Plan through the plan’s investment policy statement including the ability to hold cash equivalents. The investment guidelines of the investment policy statement are in accordance with the Employee Retirement Income Security Act of 1974 ("ERISA") and U.S. Department of Labor ("DOL") regulations.

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid from the Retirement Plan and non-qualified retirement plans are presented in the table below (in thousands):


	Retirement Income Plan		Non-Qualified Retirement Plans
2023	$	21,175	$	1,927
2024	21,221		2,028
2025	22,048		2,040
2026	22,248		1,983
2027	22,637		1,899
2028-2032	119,120		8,671

401(k) Defined Contribution Plans

EPE sponsors 401(k) defined contribution plans, which include the El Paso Electric Company Savings Plan for Collective Bargaining Employees ("401(k) Union Plan") and the El Paso Electric Company Savings Plan, covering substantially all employees. EPE provides a 50 percent matching contribution up to 6 percent of the employee’s compensation for employees who are enrolled in the final average pay pension benefit of the Retirement Plan and a 100 percent matching contribution up to 6 percent of the employee's compensation for employees who are enrolled in the cash balance pension benefit of the Retirement Plan, subject to certain other limits and exclusions. Annual matching contributions made to the savings plans for the years 2022 and 2021 were $5.5 million and $5.4 million, respectively. On September 7, 2022, the El Paso Electric Company Benefit Oversight Committee resolved that the 401(k) Union Plan be merged into the existing El Paso Electric Company Savings Plan effective November 1, 2022. The merged plan name will remain as the El Paso Electric Company Savings Plan. The benefits offered did not change as a result of the plan merger.

Other Post-Retirement Benefits

EPE provides certain other post-retirement benefits, including health care benefits for retired employees and their eligible dependents and life insurance benefits for retired employees only ("OPEB Plan"). On September 7, 2022, EPE resolved to discontinue the post-retirement medical and life insurance benefits to retirees who are hired or rehired on or after January 1, 2023. Substantially all of EPE’s employees who are hired or rehired prior to January 1, 2023 may become eligible for those benefits if they retire while working for EPE. Contributions from EPE are based on various factors such as the OPEB Plan's funded status, tax deductibility of contributions to the OPEB Plan, state and federal regulatory requirements, amounts requested from customers in EPE's Texas and New Mexico jurisdictions and the annual net periodic benefit cost of the OPEB Plan, as actuarially calculated. The assets of the OPEB Plan are primarily invested in institutional funds which hold equity securities, debt securities and cash equivalents and are managed by a professional investment manager appointed by EPE.

Effective February 1, 2020, EPE amended the OPEB Plan and restructured the OPEB Plan’s Voluntary Employee Benefit Association ("VEBA") trust fund into four separate VEBA trust funds to reduce federal income tax on the OPEB Plan’s unrelated business income without modifying OPEB Plan benefits offered to retirees. The restructuring involved establishing separate trust arrangements for the distinction between collective and non-collective bargaining retirees and between health and life insurance benefits. The transfer of trust assets to the new trusts was initiated on September 9, 2020, as specified in the amended trust agreements effective August 1, 2020.

The following table contains a reconciliation of the change in the benefit obligation, the fair value of plan assets and the funded status of the OPEB Plan (in thousands):


	December 31,
	2022		2021
Change in benefit obligation:
Benefit obligation at end of prior year	$	57,100	$	50,852
Service cost	3,212		3,318
Interest cost	1,415		1,051
Actuarial (gain) loss	(19,641)		3,327
Benefits paid from plan assets	(3,743)		(2,119)
Benefits paid from corporate assets	(177)		(127)
Retiree contributions	848		798
Benefit obligation at end of year	39,014		57,100
Change in plan assets:
Fair value of plan assets at end of prior year	50,189		45,597
Actual return on plan assets	(7,321)		5,643
Employer contribution	400		450
Benefits paid from plan assets	(3,743)		(2,119)
Retiree contributions	848		798
Administrative and investment expenses	(176)		(180)
Fair value of plan assets at end of year	40,197		50,189
Funded status at end of year	$	1,183	$	(6,911)

Amounts below are recognized as Other Special Funds and Accumulated Provision for Pensions and Benefits in EPE's Regulatory-Basis Balance Sheet for 2022 and 2021, respectively, and consist of the following (in thousands):


	December 31,
	2022		2021

Noncurrent assets (liabilities)	$	1,183	$	(6,911)
Total	$	1,183	$	(6,911)

Pre-tax amounts recognized in AOCI consist of the following (in thousands):


	December 31,
	2022		2021
Net gain	$	(55,646)	$	(49,975)
Prior service benefit	(14,192)		(17,286)
Total	$	(69,838)	$	(67,261)

The following are the weighted-average actuarial assumptions used to determine the accrued benefit obligations of the OPEB Plan:


	December 31,
	2022		2021
Discount rate at end of year	5.59	%	3.03	%
Health care cost trend rates:
Initial
Pre-65 medical	6.50	%	6.50	%
Post-65 medical	6.50	%	6.50	%
Pre-65 drug	6.50	%	6.50	%
Post-65 drug	6.50	%	6.50	%
Ultimate	4.50	%	4.50	%
Year ultimate reached	2028		2026

EPE reassesses various actuarial assumptions at least on an annual basis. The discount rate is reviewed and updated at each measurement date. The discount rate used to measure the fiscal year end obligation is based on a segmented spot rate yield curve that matches projected future payments with the appropriate interest rate applicable to the timing of the projected future benefit payments.

Net periodic benefit cost is made up of the components listed below (in thousands):


	Years Ended December 31,
	2022		2021
Service cost (a)	$	3,388	$	3,498
Interest cost	1,415		1,051
Expected return on plan assets	(3,643)		(3,282)
Amortization of:
Prior service benefit	(3,093)		(3,093)
Net gain	(3,006)		(3,615)
Net periodic benefit credit	$	(4,939)	$	(5,441)

_____________________

(a) Service cost includes expenses of $176 thousand and $180 thousand for 2022 and 2021, respectively, for administrative and investment expenses paid from plan assets during the year.

The changes in benefit obligations and plan assets recognized in other comprehensive income are presented below (in thousands):


	Years Ended December 31,
	2022		2021
Net loss (gain)	$	(8,677)	$	966
Amortization of:
Prior service benefit	3,093		3,093
Net gain	3,006		3,615
Total recognized in other comprehensive income	$	(2,578)	$	7,674

The total amount recognized in net periodic benefit cost and other comprehensive income are presented below (in thousands):


	Years Ended December 31,
	2022		2021
Total recognized in net periodic benefit cost and other comprehensive income	$	(7,517)	$	2,233

The OPEB Plan's actuarial gains were due to changes in actuarial assumptions for the year ended 2022, and the demographic experience. Significant reasons for these changes include the following: (i) the single equivalent discount rate used to measure the accumulated and projected benefit obligations increased compared to the year ended December 31, 2021, which improved the funded position, and (ii) contributions to the plan during the prior year improved the funded status. In addition, updates to the medical claims assumption improved the funded position. These gains were offset by losses due to the actual return on the fair value of plan assets since the prior measurement date being less than assumed.

The following are the weighted-average actuarial assumptions used to determine the net periodic benefit cost for the years ended December 31 of the OPEB Plan:


	Years Ended December 31,
	2022		2021
Discount rate:
Benefit obligation	3.03	%	2.76	%
Service cost	3.24	%	3.05	%
Interest cost	2.53	%	2.07	%
Expected long-term return on plan assets	7.45	%	7.35	%
Health care cost trend rates:
Initial
Pre-65 medical	6.25	%	6.5	%
Post-65 medical	6.25	%	6.5	%
Pre-65 drug	6.25	%	6.5	%
Post-65 drug	6.25	%	6.5	%
Ultimate	4.5	%	4.5	%
Year ultimate reached	2026		2026

Effective January 1, 2023, EPE's overall expected long-term rate of return on assets was 7.85%, on a pre-tax basis. The expected weighted average long-term rate of return on assets on an after-tax basis is 7.38% as of January 1, 2023. The expected long-term rate of return on an after-tax basis for the non-collective bargaining retirees VEBA is 5.50%, which is the only funding vehicle subject to taxation. The non-collective bargaining retirees VEBA trust's tax rate was assumed to be 30.00% at January 1, 2023. The expected long-term rate of return is based on the after-tax weighted average of the expected returns on investments based upon the target asset allocation.

EPE’s target allocations for the OPEB Plan's assets are presented below:


	December 31, 2022
Equity securities	50.3	%
Fixed income	35.0	%
Alternative investments	14.7	%
Total	100.0	%

The OPEB Plan invests the majority of its plan assets in institutional funds which includes a diversified portfolio of domestic and international equity securities and fixed income securities. Alternative investments of the OPEB Plan are comprised of equity securities of real estate companies, primarily in real estate investment trusts. The alternative investments also include equity securities of a dynamic, diversified portfolio designed to capture market opportunities. The underlying allocations to various asset classes in this portfolio will shift over time, but the overall strategic allocation is as follows: 75% global equity, 15% marketable real assets and 10% global fixed income. The expected rates of return for the funds are assessed annually and are based on long-term relationships among major asset classes and the level of incremental returns that can be earned by the successful implementation of different active investment management strategies. Equity returns are based on estimates of long-term inflation rate, real rate of return, 10-year Treasury bond premium over cash, an expected equity risk premium, as well as other economic factors. Fixed income returns are based on maturity, long-term inflation, real rate of return and credit spreads. These assumptions also capture the expected correlation of returns between these asset classes over the long term.

The fair value of EPE’s OPEB Plan assets at December 31, 2022 and 2021, and the level within the three levels of the fair value hierarchy defined by the FASB guidance on fair value measurements are presented in the table below (in thousands):


Description of Securities	Fair Value as of December 31, 2022		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and Cash Equivalents	$	1,186	$	1,186	$	—	$	—
Institutional Funds (a)
Equity funds	19,660		19,660		—		—
Fixed income funds	13,650		13,650		—		—
Multi asset funds	4,152		4,152		—		—
Real asset funds	1,549		1,549		—		—
Total Institutional Funds	39,011		39,011		—		—
Total Plan Investments	$	40,197	$	40,197	$	—	$	—

Description of Securities	Fair Value as of December 31, 2021		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and Cash Equivalents	$	1,061	$	1,061	$	—	$	—
Institutional Funds (a)
Equity funds	25,160		25,160		—		—
Fixed income funds	16,683		16,683		—		—
Multi asset funds	5,159		5,159		—		—
Real asset funds	2,126		2,126		—		—
Total Institutional Funds	49,128		49,128		—		—
Total Plan Investments	$	50,189	$	50,189	$	—	$	—

___________________

(a)The institutional funds are invested in equity or fixed income securities, or a combination thereof. The investment objective of each fund is to produce returns in excess of, or commensurate with, its predefined index.

There were no purchases, issuances and settlements related to the OPEB Plan assets in the Level 3 fair value measurement category during the twelve-month periods ended December 31, 2022 and 2021.

EPE and the fiduciaries responsible for the OPEB Plan adhere to the traditional capital market pricing theory, which maintains that over the long term, the risk of owning equities should be rewarded with a greater return than available from fixed income investments. EPE and the fiduciaries responsible for the OPEB Plan seek to minimize the risk of owning equity securities by investing in funds that pursue risk minimization strategies and by diversifying its investments to limit its risks during falling markets. The investment manager has full discretionary authority to direct the investment of plan assets held in trust within the investment policy guidelines prescribed by EPE. The investment guidelines of the investment policy statement are in accordance with the ERISA and DOL regulations.

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid on the OPEB Plan (in thousands):


2022	$	2,386
2023	2,427
2024	2,475
2025	2,492
2026	2,473
2028-2032	13,896

Long-Term Incentive Plan

On February 3, 2021, EPE's LTIP was approved by the People and Remuneration Committee of the Board ("PARCO"). The LTIP provides for the payment of cash awards to eligible EPE employees, including each of its executive officers, and is reviewed and awards are granted annually. Measurement of awards is based on the achievement of performance measures, primarily based on the NAV of EPE as of the end of each calendar quarter during the performance period. The performance period is measured as a period of three years, and the retention period as a period of two years that begins immediately after the performance period. The LTIP amounts vest in three equal installments beginning on the first day of the retention period. Any unvested long-term cash awards are forfeited if the participant is no longer employed by EPE. In 2022, EPE expensed $0.9 million related to the 2021-2023 LTIP awards, and $0.9 million related to the 2022-2024 LTIP awards. In 2021, EPE expensed $0.8 million related to the 2021-2023 LTIP awards.

Annual Short-Term Incentive Plan

The Annual Short-Term Incentive Plan ("Incentive Plan") provides for the payment of cash awards to eligible Company employees, including each of its named executive officers. Payment of awards is based on the achievement of performance measures reviewed and approved by the PARCO. Generally, these performance measures are based on meeting certain financial, operational, and individual performance criteria. The financial performance goals are based on specified levels of earnings and certain O&M expenses. The operational performance goals are based on reliability and customer satisfaction. If a minimum level of earnings is not attained, no amounts will be paid under the Incentive Plan, unless the PARCO determines otherwise. For the 2022 and 2021 plan years, EPE reached the required level of earnings, O&M expenses, reliability, and customer satisfaction goals for incentive payments under the Incentive Plan of $14.1 million and $9.8 million, respectively.

K. Financial Instruments and Investments

The FASB guidance requires EPE to disclose estimated fair values for its financial instruments. EPE has determined that cash and temporary investments (including restricted cash), investment in debt securities, accounts receivable, NDT that are reflected in Other Special Funds in the Regulatory-Basis Balance Sheet, long-term debt, financing obligations and capital lease obligations, short-term borrowings under the RCF, accounts payable and customer deposits meet the definition of financial instruments. The carrying amounts of cash and temporary investments, accounts receivable, accounts payable and customer

deposits approximate fair value because of the short maturity of these items. Investments in debt securities and NDT are carried at estimated fair value.

Long-Term Debt,Financing Obligations, Capital Lease Obligations and Short-Term Borrowings Under the RCF. The fair values of EPE's long-term debt, financing obligations, capital lease obligations including the current portion thereof, and short-term borrowings under the RCF are based on estimated market prices for similar issues and are presented below (in thousands):


	December 31,
	2022				2021
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Pollution Control Bonds	$	159,835	$	146,870	$	159,835	$	170,977
Senior Notes (1)	1,328,185		1,203,160		1,128,183		1,238,208
RGRT Senior Notes (2)	110,000		97,165		110,000		113,950
RCF (2)	305,761		305,761		318,223		318,223
Capitalized Operating Leases	4,554		4,553		5,356		5,356
Total	$	1,908,335	$	1,757,509	$	1,721,597	$	1,846,714

__________________

(1)On February 15, 2022, EPE issued 2.91% Senior Notes of $150.0 million with a maturity date of September 1, 2032, and 3.54% Senior Notes of $200.0 million with a maturity date of February 15, 2052. On September 15, 2022, in lieu of early redemption, EPE purchased its 3.30% Senior Notes with principal amount of $150.0 million See Note G of Notes to Financial Statements for further discussion.

(2)Nuclear fuel capital lease obligations is funded through $110.0 million RGRT Senior Notes and the RCF as of December 31, 2022 and 2021, and $10.8 million and $18.2 million, respectively, was borrowed under the RCF for nuclear fuel. Includes $1.3 million in capitalized interest related to nuclear fuel capital leases as of December 31, 2022 and 2021. As of December 31, 2022 and 2021, $295.0 million and $300.0 million was outstanding under the RCF for working capital or general corporate purposes, respectively. The interest rate on EPE’s borrowings under the RCF is reset throughout the quarter reflecting current market rates. Consequently, the carrying value approximates fair value.

Treasury Rate Locks. EPE entered into treasury rate lock agreements in 2005 to hedge against potential movements in the treasury reference interest rate pending the issuance of the 6% Senior Notes. The treasury rate lock agreements met the criteria for hedge accounting and were designated as a cash flow hedge. In accordance with cash flow hedge accounting, EPE recorded the loss associated with the fair value of the cash flow hedge, net of tax, as a component of accumulated other comprehensive loss and amortizes the accumulated comprehensive loss to earnings as interest expense over the life of the 6% Senior Notes. As of December 31, 2022, the unamortized loss associated with the fair value of the cash flow hedge was $14.5 million. In 2023, approximately $0.8 million of this accumulated other comprehensive loss item will be reclassified to interest expense.

Contracts and Derivative Accounting. EPE uses commodity contracts to manage its exposure to price and availability risks for fuel purchases and power sales and purchases and these contracts generally have the characteristics of derivatives. EPE does not trade or use these instruments with the objective of earning financial gains on commodity price fluctuations. EPE has determined that all such contracts outstanding at December 31, 2022, except for certain natural gas commodity contracts with optionality features, that had the characteristics of derivatives met the "normal purchases and normal sales" exception provided in the FASB guidance for accounting for derivative instruments and hedging activities, and, as such, were not required to be accounted for as derivatives.

Marketable Securities. EPE’s marketable securities, included in the NDT that are reflected in Other Special Funds in the Regulatory-Basis Balance Sheet, are reported at fair value, which was $345.0 million and $408.9 million at December 31, 2022 and 2021, respectively.

The investments in EPE's NDT are classified as equity securities and temporary cash and cash equivalents restricted solely for investment in the NDT. These investments are recorded at their estimated fair value in accordance with FASB guidance for certain investments in equity securities which requires entities to recognize changes in fair value for these securities in net income as reported in EPE's Regulatory-Basis Statement of Income.

EPE records changes in fair market value for equity securities held in the NDT in EPE's Regulatory-Basis Statement of Income. The unrealized gains and losses recognized during the years ended December 31, 2022 and 2021 and related effects on pre-tax income are as follows (in thousands):


	2022		2021

Net gains (losses) recognized on equity securities	$	(70,789)	$	38,482
Less: Net gains recognized on equity securities sold	209		28,916
Unrealized gains (losses) recognized on equity securities still held at reporting date	$	(70,998)	$	9,566

Fair Value Measurements. The fair value of the NDT and investments in debt securities at December 31, 2022 and 2021, and the level within the three levels of the fair value hierarchy defined by the FASB guidance are presented in the table below (in thousands):


Description of Securities	Fair Value as of December 31, 2022		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Trading Securities:
Investments in Debt Securities	$	1,657	$	—	$	—	$	1,657
Equity Securities:
Domestic (a)	$	311,860	$	311,860	$	—	$	—
International	30,559		30,559		—		—
Total Equity Securities	342,419		342,419		—		—
Cash and Cash Equivalents	2,624		2,624		—		—
Total	$	345,043	$	345,043	$	—	$	—


Description of Securities	Fair Value as of December 31, 2021		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Trading Securities:
Investments in Debt Securities	$	1,610	$	—	$	—	$	1,610
Equity Securities:
Domestic (a)	$	372,098	$	372,098	$	—	$	—
International	34,849		34,849		—		—
Total Equity Securities	406,947		406,947		—		—
Cash and Cash Equivalents	1,982		1,982		—		—
Total	$	408,929	$	408,929	$	—	$	—

___________
(a) Includes $173.3 million and $198.1 million, as of December 31,2022 and December 31, 2021, respectively, held in

exchange traded funds with underlying investments in debt securities that meet the definition of equity securities with readily determinable fair values.

Below is a reconciliation of the beginning and ending balance of the fair value of the investment in debt securities classified as trading securities (in thousands):


	2022		2021
Balance at January 1	$	1,610	$	1,587
Net unrealized gains in fair value recognized in income (a)	47		23
Balance at December 31	$	1,657	$	1,610

_____________________

(a) These amounts are reflected in EPE's Regulatory-Basis Statement of Income as other income.

There were no purchases, sales, issuances and settlements related to the assets in the Level 3 fair value measurement category during the year ended December 31, 2022 and 2021.

L. Supplemental Statements of Cash Flows Disclosures


	Years Ended December 31,
	2022		2021
	(In thousands)
Cash paid for:
Interest on long-term debt and borrowing under the revolving credit facility	$	77,804	$	71,241
Income tax paid, net	32,994		26,383
Non-cash investing and financing activities:
Changes in accrued plant additions	(7,733)		8,338
Non-cash operating activities:
Operating lease liabilities arising from obtaining ROU assets	—		1,028

M. Equity Contribution and Dividend

Equity Contribution. For the years ended December 31, 2022 and 2021, Parent made an equity infusion to EPE in the amount of $70.0 million and of $105.0 million, respectively.

Dividend. On August 14, 2020, EPE adopted a dividend policy which is based on regulatory commitments and requires compliance with EPE debt covenants, and provides that no later than 45 days following the end of each quarter, EPE shall distribute to its sole shareholder, Parent, an amount equal to EPE’s net income adjusted to exclude the impact of changes in fair value of EPE's equity securities and realized gains and losses from the sale of both equity and fixed income securities held in EPE's NDT for such calendar quarter, provided that if that adjusted amount for a quarter is below zero, no dividend shall be paid. On October 25, 2022, EPE's Board of Directors declared out of the surplus of EPE, a cash dividend to Parent in the amount of $106.9 million, which was paid on October 28, 2022.

For the years ended December 31, 2022 and 2021, EPE paid cash dividends to Parent of $162.7 million and $128.4 million, respectively.

N. Subsequent Events

Dividend. On February 7, 2023, EPE's Board of Directors declared quarterly cash dividends to Parent in the amount of $7.0 million, which were paid on February 10, 2023.

EPE has evaluated subsequent events through March 24, 2023, the date at which the financial statements were available to be issued, and determined there are no other items to disclose.

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

STATEMENTS OF ACCUMULATED COMPREHENSIVE INCOME, COMPREHENSIVE INCOME, AND HEDGING ACTIVITIES
Report in columns (b),(c),(d) and (e) the amounts of accumulated other comprehensive income items, on a net-of-tax basis, where appropriate. Report in columns (f) and (g) the amounts of other categories of other cash flow hedges. For each category of hedges that have been accounted for as "fair value hedges", report the accounts affected and the related amounts in a footnote. Report data on a year-to-date basis.
Line No.	Item (a)	Unrealized Gains and Losses on Available-For-Sale Securities (b)	Minimum Pension Liability Adjustment (net amount) (c)	Foreign Currency Hedges (d)	Other Adjustments (e)	Other Cash Flow Hedges Interest Rate Swaps (f)	Other Cash Flow Hedges [Specify] (g)	Totals for each category of items recorded in Account 219 (h)	Net Income (Carried Forward from Page 116, Line 78) (i)	Total Comprehensive Income (j)
1	Balance of Account 219 at Beginning of Preceding Year	632,554			(a) 29,484,073		(b) 9,953,883	38,805,402
2	Preceding Quarter/Year to Date Reclassifications from Account 219 to Net Income				436,631		526,613	963,244
3	Preceding Quarter/Year to Date Changes in Fair Value	57,048			19,055,246			19,112,294
4	Total (lines 2 and 3)	57,048			19,491,877		526,613	20,075,538	146,215,108	166,290,646
5	Balance of Account 219 at End of Preceding Quarter/Year	689,602			9,992,196		9,427,270	18,729,864
6	Balance of Account 219 at Beginning of Current Year	689,602			9,992,196		9,427,270	18,729,864
7	Current Quarter/Year to Date Reclassifications from Account 219 to Net Income				3,420,084		570,833	2,849,251
8	Current Quarter/Year to Date Changes in Fair Value	422,383			3,574,660			3,152,277
9	Total (lines 7 and 8)	422,383			154,576		570,833	303,026	113,320,079	113,623,105
10	Balance of Account 219 at End of Current Quarter/Year	267,219			9,837,620		8,856,437	18,426,838

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

FOOTNOTE DATA

(a) Concept: AccumulatedOtherComprehensiveIncomeLossOtherAdjustmentsToComprehensiveIncomeLossBalance

In accordance with the FERC Guidance Letter AI07-1-000 related to FASB guidance for employers' accounting for defined benefit pension and other postretirement plans, this amount includes reclassification adjustments of accumulated other comprehensive income as a result of gains or losses, prior service costs or credits and transition assets or obligations related to pension and other postretirement benefit plans.

(b) Concept: AccumulatedOtherComprehensiveIncomeLossOtherCashFlowHedgesBalance

During the first quarter of 2005, EPE entered into treasury rate lock agreements to hedge against potential movements in the treasury reference interest rate pending the issuance of 6% Senior Notes. These treasury rate locks were terminated on May 11, 2005. The treasury rate lock agreements met the criteria for hedge accounting and were designated as a cash flow hedge. In accordance with cash flow hedge accounting, EPE recorded the loss associated with the fair value of the cash flow hedge of approximately $14.5 million, net of tax, as a component of accumulated other comprehensive income. In May 2005, EPE began to recognize in earnings (as additional interest expense) the accumulated other comprehensive income associated with the cash flow hedge. During the next twelve-month period, approximately $0.8 million pre-tax of this accumulated other comprehensive income item will be reclassified to interest expense.

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

SUMMARY OF UTILITY PLANT AND ACCUMULATED PROVISIONS FOR DEPRECIATION. AMORTIZATION AND DEPLETION
Report in Column (c) the amount for electric function, in column (d) the amount for gas function, in column (e), (f), and (g) report other (specify) and in column (h) common function.
Line No.	Classification (a)	Total Company For the Current Year/Quarter Ended (b)	Electric (c)	Gas (d)	Other (Specify) (e)	Other (Specify) (f)	Other (Specify) (g)	Common (h)
1	UtilityPlantAbstract UTILITY PLANT
2	UtilityPlantInServiceAbstract In Service
3	UtilityPlantInServiceClassified Plant in Service (Classified)	5,065,261,074	5,065,261,074
4	UtilityPlantInServicePropertyUnderCapitalLeases Property Under Capital Leases	4,337,540	4,337,540
5	UtilityPlantInServicePlantPurchasedOrSold Plant Purchased or Sold
6	UtilityPlantInServiceCompletedConstructionNotClassified Completed Construction not Classified	883,683,391	883,683,391
7	UtilityPlantInServiceExperimentalPlantUnclassified Experimental Plant Unclassified
8	UtilityPlantInServiceClassifiedAndUnclassified Total (3 thru 7)	5,953,282,005	5,953,282,005
9	UtilityPlantLeasedToOthers Leased to Others
10	UtilityPlantHeldForFutureUse Held for Future Use	6,733,506	6,733,506
11	ConstructionWorkInProgress Construction Work in Progress	484,156,394	484,156,394
12	UtilityPlantAcquisitionAdjustment Acquisition Adjustments
13	UtilityPlantAndConstructionWorkInProgress Total Utility Plant (8 thru 12)	6,444,171,905	6,444,171,905
14	AccumulatedProvisionForDepreciationAmortizationAndDepletionOfPlantUtility Accumulated Provisions for Depreciation, Amortization, & Depletion	2,662,878,225	2,662,878,225
15	UtilityPlantNet Net Utility Plant (13 less 14)	3,781,293,680	3,781,293,680
16	DetailOfAccumulatedProvisionsForDepreciationAmortizationAndDepletionAbstract DETAIL OF ACCUMULATED PROVISIONS FOR DEPRECIATION, AMORTIZATION AND DEPLETION
17	AccumulatedProvisionForDepreciationAmortizationAndDepletionUtilityPlantInServiceAbstract In Service:
18	DepreciationUtilityPlantInService Depreciation	2,562,454,321	2,562,454,321
19	AmortizationAndDepletionOfProducingNaturalGasLandAndLandRightsutilityPlantInService Amortization and Depletion of Producing Natural Gas Land and Land Rights
20	AmortizationOfUndergroundStorageLandAndLandRightsutilityPlantInService Amortization of Underground Storage Land and Land Rights
21	AmortizationOfOtherUtilityPlantUtilityPlantInService Amortization of Other Utility Plant	100,423,904	100,423,904
22	DepreciationAmortizationAndDepletionUtilityPlantInService Total in Service (18 thru 21)	2,662,878,225	2,662,878,225
23	DepreciationAmortizationAndDepletionUtilityPlantLeasedToOthersAbstract Leased to Others
24	DepreciationUtilityPlantLeasedToOthers Depreciation
25	AmortizationAndDepletionUtilityPlantLeasedToOthers Amortization and Depletion
26	DepreciationAmortizationAndDepletionUtilityPlantLeasedToOthers Total Leased to Others (24 & 25)
27	DepreciationAndAmortizationUtilityPlantHeldForFutureUseAbstract Held for Future Use
28	DepreciationUtilityPlantHeldForFutureUse Depreciation
29	AmortizationUtilityPlantHeldForFutureUse Amortization
30	DepreciationAndAmortizationUtilityPlantHeldForFutureUse Total Held for Future Use (28 & 29)
31	AbandonmentOfLeases Abandonment of Leases (Natural Gas)
32	AmortizationOfPlantAcquisitionAdjustment Amortization of Plant Acquisition Adjustment
33	AccumulatedProvisionForDepreciationAmortizationAndDepletionOfPlantUtility Total Accum Prov (equals 14) (22,26,30,31,32)	2,662,878,225	2,662,878,225

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

NUCLEAR FUEL MATERIALS (Account 120.1 through 120.6 and 157)
Report below the costs incurred for nuclear fuel materials in process of fabrication, on hand, in reactor, and in cooling; owned by the respondent. If the nuclear fuel stock is obtained under leasing arrangements, attach a statement showing the amount of nuclear fuel leased, the quantity used and quantity on hand, and the costs incurred under such leasing arrangements.
Line No.	Description of item (a)	Balance Beginning of Year (b)	Changes during Year Additions (c)	Changes during Year Amortization (d)	Changes during Year Other Reductions (Explain in a footnote) (e)	Balance End of Year (f)
1	Nuclear Fuel in process of Refinement, Conv, Enrichment & Fab (120.1)
2	Fabrication
3	Nuclear Materials
4	Allowance for Funds Used during Construction
5	(Other Overhead Construction Costs, provide details in footnote)
6	SUBTOTAL (Total 2 thru 5)					0
7	Nuclear Fuel Materials and Assemblies
8	In Stock (120.2)
9	In Reactor (120.3)
10	SUBTOTAL (Total 8 & 9)
11	Spent Nuclear Fuel (120.4)
12	Nuclear Fuel Under Capital Leases (120.6)	188,934,611	(a) 30,178,296		(c) 37,601,080	181,511,827
13	(Less) Accum Prov for Amortization of Nuclear Fuel Assem (120.5)	70,690,478	(b) 3,015,039	36,415,915	(d) 37,601,080	66,490,274
14	TOTAL Nuclear Fuel Stock (Total 6, 10, 11, 12, less 13)	118,244,133				(e) 115,021,553
15	Estimated Net Salvage Value of Nuclear Materials in Line 9
16	Estimated Net Salvage Value of Nuclear Materials in Line 11
17	Est Net Salvage Value of Nuclear Materials in Chemical Processing
18	Nuclear Materials held for Sale (157)
19	Uranium
20	Plutonium
21	Other (Provide details in footnote)
22	TOTAL Nuclear Materials held for Sale (Total 19, 20, and 21)	0				0

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

FOOTNOTE DATA

(a) Concept: NuclearFuelUnderCapitalLeasesAdditions

During 2022, EPE capitalized approximately $4.2 million of costs, including interest on RGRT borrowings, accrued interest on the RGRT Senior Notes and other fees, in connection with the financing of nuclear fuel through the RGRT. Information on quantities of nuclear fuel materials is not available.

(b) Concept: AccumulatedProvisionForAmortizationOfNuclearFuelAssembliesAdditions

Dry cask storage costs allocated to Palo Verde Units 1, 2 and 3.

(c) Concept: NuclearFuelUnderCapitalLeasesOtherReductions

Retirement of fully amortized nuclear fuel in connection with the 2022 reloads for Palo Verde Units 1 and 3.

(d) Concept: AccumulatedProvisionForAmortizationOfNuclearFuelAssembliesOtherReductions

Retirement of fully amortized nuclear fuel in connection with the 2022 reloads for Palo Verde Units 1 and 3.

(e) Concept: NuclearFuelNet

All of EPE's nuclear fuel financing is accomplished through the RGRT that has amounts borrowed through the issuance of senior notes and borrowings under a revolving credit facility. The assets and liabilities of the RGRT are reported on EPE's regulatory basis balance sheet. The total amount borrowed for nuclear fuel by the RGRT at December 31, 2022 was $120.8 million of which $10.8 million had been borrowed under the revolving credit facility, and $110 million was borrowed through senior notes.

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

ELECTRIC PLANT IN SERVICE (Account 101, 102, 103 and 106)
Report below the original cost of electric plant in service according to the prescribed accounts. In addition to Account 101, Electric Plant in Service (Classified), this page and the next include Account 102, Electric Plant Purchased or Sold; Account 103, Experimental Electric Plant Unclassified; and Account 106, Completed Construction Not Classified-Electric. Include in column (c) or (d), as appropriate, corrections of additions and retirements for the current or preceding year. For revisions to the amount of initial asset retirement costs capitalized, included by primary plant account, increases in column (c) additions and reductions in column (e) adjustments. Enclose in parentheses credit adjustments of plant accounts to indicate the negative effect of such accounts. Classify Account 106 according to prescribed accounts, on an estimated basis if necessary, and include the entries in column (c). Also to be included in column (c) are entries for reversals of tentative distributions of the prior year reported in column (b). Likewise, if the respondent has a significant amount of plant retirements which have not been classified to primary accounts at the end of the year, include in column (d) a tentative distribution of such retirements, on an estimated basis, with appropriate contra entry to the account for accumulated depreciation provision. Include also in column (d) distributions of these tentative classifications in columns (c) and (d), including the reversals of the prior years tentative account distributions of these amounts. Careful observance of the above instructions and the texts of Accounts 101 and 106 will avoid serious omissions of the reported amount of respondent’s plant actually in service at end of year. Show in column (f) reclassifications or transfers within utility plant accounts. Include also in column (f) the additions or reductions of primary account classifications arising from distribution of amounts initially recorded in Account 102, include in column (e) the amounts with respect to accumulated provision for depreciation, acquisition adjustments, etc., and show in column (f) only the offset to the debits or credits distributed in column (f) to primary account classifications. For Account 399, state the nature and use of plant included in this account and if substantial in amount submit a supplementary statement showing subaccount classification of such plant conforming to the requirement of these pages. For each amount comprising the reported balance and changes in Account 102, state the property purchased or sold, name of vendor or purchase, and date of transaction. If proposed journal entries have been filed with the Commission as required by the Uniform System of Accounts, give also date.
Line No.	Account (a)	Balance Beginning of Year (b)	Additions (c)	Retirements (d)	Adjustments (e)	Transfers (f)	Balance at End of Year (g)
1	1. INTANGIBLE PLANT
2	(301) Organization
3	(302) Franchise and Consents
4	(303) Miscellaneous Intangible Plant	197,577,213	7,266,744	169,858			204,674,099
5	TOTAL Intangible Plant (Enter Total of lines 2, 3, and 4)	197,577,213	7,266,744	169,858			204,674,099
6	2. PRODUCTION PLANT
7	A. Steam Production Plant
8	(310) Land and Land Rights	282,846					282,846
9	(311) Structures and Improvements	77,254,472	2,499,191				79,753,663
10	(312) Boiler Plant Equipment	179,856,685	21,067,975				200,924,660
11	(313) Engines and Engine-Driven Generators	78,367,391	1,720,619				80,088,010
12	(314) Turbogenerator Units	172,035,739	15,236,323				187,272,062
13	(315) Accessory Electric Equipment	45,928,500	2,210,239				48,138,739
14	(316) Misc. Power Plant Equipment	56,370,607	229,496				56,600,103
15	(317) Asset Retirement Costs for Steam Production	592,906					592,906
16	TOTAL Steam Production Plant (Enter Total of lines 8 thru 15)	610,689,146	42,963,843				653,652,989
17	B. Nuclear Production Plant
18	(320) Land and Land Rights	2,360,085	11,978				2,348,107
19	(321) Structures and Improvements	559,241,491	7,705,051	3,257,124			563,689,418
20	(322) Reactor Plant Equipment	816,345,631	11,654,049	7,186,922			820,812,758
21	(323) Turbogenerator Units	270,344,837	11,431,888	3,206,416			278,570,309
22	(324) Accessory Electric Equipment	184,976,961	1,102,729	556,092			185,523,598
23	(325) Misc. Power Plant Equipment	140,678,205	933,725	122,365			141,489,565
24	(326) Asset Retirement Costs for Nuclear Production	39,726,967					39,726,967
25	TOTAL Nuclear Production Plant (Enter Total of lines 18 thru 24)	1,934,220,243	32,815,464	14,328,919			1,952,706,788
26	C. Hydraulic Production Plant
27	(330) Land and Land Rights
28	(331) Structures and Improvements
29	(332) Reservoirs, Dams, and Waterways
30	(333) Water Wheels, Turbines, and Generators
31	(334) Accessory Electric Equipment
32	(335) Misc. Power Plant Equipment
33	(336) Roads, Railroads, and Bridges
34	(337) Asset Retirement Costs for Hydraulic Production
35	TOTAL Hydraulic Production Plant (Enter Total of lines 27 thru 34)
36	D. Other Production Plant
37	(340) Land and Land Rights	2,753,322					2,753,322
38	(341) Structures and Improvements	52,041,599	2,775,843				54,817,442
39	(342) Fuel Holders, Products, and Accessories	26,073,639	1,740,680				24,332,959
40	(343) Prime Movers	379,830,659	21,230,645				401,061,304
41	(344) Generators	78,542,175	2,246,622				76,295,553
42	(345) Accessory Electric Equipment	33,417,679	2,670,927				36,088,606
43	(346) Misc. Power Plant Equipment	7,010,356	328,631				7,338,987
44	(347) Asset Retirement Costs for Other Production	255,881					255,881
44.1	(348) Energy Storage Equipment - Production
45	TOTAL Other Prod. Plant (Enter Total of lines 37 thru 44)	579,925,310	23,018,744				602,944,054
46	TOTAL Prod. Plant (Enter Total of lines 16, 25, 35, and 45)	3,124,834,699	98,798,051	14,328,919			3,209,303,831
47	3. Transmission Plant
48	(350) Land and Land Rights	41,771,041	845,992	257,519			42,359,514
48.1	(351) Energy Storage Equipment - Transmission
49	(352) Structures and Improvements	12,692,738	1,535,692	29,512			14,198,918
50	(353) Station Equipment	213,379,317	25,371,523	876,961		34,905	237,908,784
51	(354) Towers and Fixtures	31,391,444	1,532,291				29,859,153
52	(355) Poles and Fixtures	192,771,336	11,437,535	117,110			204,091,761
53	(356) Overhead Conductors and Devices	99,467,887	5,265,433				94,202,454
54	(357) Underground Conduit
55	(358) Underground Conductors and Devices
56	(359) Roads and Trails	3,816,669	3,854				3,820,523
57	(359.1) Asset Retirement Costs for Transmission Plant
58	TOTAL Transmission Plant (Enter Total of lines 48 thru 57)	595,290,432	32,396,872	1,281,102		34,905	626,441,107
59	4. Distribution Plant
60	(360) Land and Land Rights	10,639,304	1,222,521				11,861,825
61	(361) Structures and Improvements	30,606,668	4,870,981	156,501			35,321,148
62	(362) Station Equipment	326,198,916	19,617,054	323,368		34,906	345,457,696
63	(363) Energy Storage Equipment – Distribution		2,182,774				2,182,774
64	(364) Poles, Towers, and Fixtures	202,655,016	11,603,454	575,432	363,060		213,319,978
65	(365) Overhead Conductors and Devices	140,160,297	11,649,596	413,609	75,799		151,320,485
66	(366) Underground Conduit	155,360,679	8,166,249	4	93,622		163,433,302
67	(367) Underground Conductors and Devices	185,145,893	7,440,783	551,872	154,151		191,880,653
68	(368) Line Transformers	309,751,548	11,894,952	1,040,897	812,286		319,793,317
69	(369) Services	62,118,164	2,437,067	3,476	3,813		64,547,942
70	(370) Meters	70,189,514	9,408,738			221,280	79,819,532
71	(371) Installations on Customer Premises	15,152,483	1,212,748	374,013	5,816		15,985,402
72	(372) Leased Property on Customer Premises
73	(373) Street Lighting and Signal Systems	12,332,655	232,390	7,747	1,702		12,555,596
74	(374) Asset Retirement Costs for Distribution Plant
75	TOTAL Distribution Plant (Enter Total of lines 60 thru 74)	1,520,311,137	91,939,307	3,446,919	1,510,249	186,374	1,607,479,650
76	5. REGIONAL TRANSMISSION AND MARKET OPERATION PLANT
77	(380) Land and Land Rights
78	(381) Structures and Improvements
79	(382) Computer Hardware
80	(383) Computer Software
81	(384) Communication Equipment
82	(385) Miscellaneous Regional Transmission and Market Operation Plant
83	(386) Asset Retirement Costs for Regional Transmission and Market Oper
84	TOTAL Transmission and Market Operation Plant (Total lines 77 thru 83)
85	6. General Plant
86	(389) Land and Land Rights	1,685,156					1,685,156
87	(390) Structures and Improvements	121,616,718	246,479	9,483			121,853,714
88	(391) Office Furniture and Equipment	34,503,866	8,630,306	4,476,737			38,657,435
89	(392) Transportation Equipment	53,797,768	10,226,298	65,312		168,916	63,789,838
90	(393) Stores Equipment	62,050	182,909				244,959
91	(394) Tools, Shop and Garage Equipment	8,858,420	414,734	375,719			8,897,435
92	(395) Laboratory Equipment	5,565,369	521,757				6,087,126
93	(396) Power Operated Equipment	10,404,836	489,384	38,840		168,916	11,024,296
94	(397) Communication Equipment	39,126,648	3,464,994	41,817			42,549,825
95	(398) Miscellaneous Equipment	5,519,777	870,096			221,280	6,168,593
96	SUBTOTAL (Enter Total of lines 86 thru 95)	281,140,608	25,046,957	5,007,908		221,280	300,958,377
97	(399) Other Tangible Property
98	(399.1) Asset Retirement Costs for General Plant	87,400					87,400
99	TOTAL General Plant (Enter Total of lines 96, 97, and 98)	281,228,008	25,046,957	5,007,908		221,280	301,045,777
100	TOTAL (Accounts 101 and 106)	5,719,241,489	255,447,932	24,234,707	1,510,249		5,948,944,465
101	(102) Electric Plant Purchased (See Instr. 8)
102	(Less) (102) Electric Plant Sold (See Instr. 8)
103	(103) Experimental Plant Unclassified
104	TOTAL Electric Plant in Service (Enter Total of lines 100 thru 103)	5,719,241,489	255,447,932	24,234,707	1,510,249		(a) 5,948,944,465

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

FOOTNOTE DATA

(a) Concept: ElectricPlantInService

Total Electric Plant in Service excludes Property Under Capital Lease of $4,337,540 and Property Held for Future Development of $6,733,506.

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

ELECTRIC PLANT LEASED TO OTHERS (Account 104)
Line No.	LesseeName Name of Lessee (a)	IndicationOfAssociatedCompany * (Designation of Associated Company) (b)	LeaseDescription Description of Property Leased (c)	CommissionAuthorization Commission Authorization (d)	ExpirationDateOfLease Expiration Date of Lease (e)	ElectricPlantLeasedToOthers Balance at End of Year (f)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47	TOTAL

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

ELECTRIC PLANT HELD FOR FUTURE USE (Account 105)
Report separately each property held for future use at end of the year having an original cost of $250,000 or more. Group other items of property held for future use. For property having an original cost of $250,000 or more previously used in utility operations, now held for future use, give in column (a), in addition to other required information, the date that utility use of such property was discontinued, and the date the original cost was transferred to Account 105.
Line No.	ElectricPlantHeldForFutureUseDescription Description and Location of Property (a)	ElectricPlantPropertyClassifiedAsHeldForFutureUseOriginalDate Date Originally Included in This Account (b)	ElectricPlantPropertyClassifiedAsHeldForFutureUseExpectedUseInServiceDate Date Expected to be used in Utility Service (c)	ElectricPlantHeldForFutureUse Balance at End of Year (d)
1	Land and Rights:
2	Land & Rights:
3	Las Cruces Service Center, Las Cruces, NM	08/01/2021	12/31/2028	4,581,423
4	Vado Substation, Vado NM	12/01/2021	05/31/2026	813,772
5	(a) Afton land purchase, Afton Road, NM	11/01/2022		1,338,311
21	Other Property:
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47	TOTAL			6,733,506

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

FOOTNOTE DATA

(a) Concept: ElectricPlantHeldForFutureUseDescription

Date expected to be used in utility service for the Afton land property is currently unknown.

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

CONSTRUCTION WORK IN PROGRESS - - ELECTRIC (Account 107)
Report below descriptions and balances at end of year of projects in process of construction (107). Show items relating to "research, development, and demonstration" projects last, under a caption Research, Development, and Demonstrating (see Account 107 of the Uniform System of Accounts). Minor projects (5% of the Balance End of the Year for Account 107 or $1,000,000, whichever is less) may be grouped.
Line No.	ConstructionWorkInProgressProjectDescription Description of Project (a)	ConstructionWorkInProgress Construction work in progress - Electric (Account 107) (b)
1	NEWMAN UNIT 6 GAS TURBINE 5	149,471,079
2	PALO VERDE CAPITAL IMPROVEMENTS	53,809,972
3	CUSTOMER CARE & BILLING SYSTEM UPGRADE	27,373,386
4	ADVANCED METERING INFRASTRUCTURE	19,871,168
5	MOONGATE-JORNADA NEW TRANSMISSION LINE	13,463,559
6	NEW MOONGATE DISTRIBUTION SUBSTATION	12,679,706
7	DALLAS SUBSTATION TRANSFORMER REPLACEMENT	11,592,469
8	INTEGRATED PLANNING AND FORECAST SYSTEM	11,459,586
9	EASTSIDE OPERATIONS AND SAFETY TRAINING CENTER CONSTRUCTION	9,790,714
10	NEWMAN UNIT 6 TRANSMISSION SUBSTATION ADDITION	9,099,644
11	AFTON NORTH SUBSTATION	7,771,659
12	ENERGY IMBALANCE MARKET IMPLEMENTATION	7,739,066
13	NEWMAN UNIT 4 GAS TURBINE 2 SPARE COMPONENTS	7,374,588
14	NEWMAN ZERO LIQUID DISCHARGE CLARIFIER	6,425,176
15	RIO GRANDE TO SUNSET TRANSMISSION LINE REBUILD	6,148,966
16	ENERGY MANAGEMENT SYSTEM UPGRADE	5,760,027
17	DISTRIBUTION COMMERCIAL CONSTRUCTION - TEXAS	5,254,827
18	DISTRIBUTION RESIDENTIAL CONSTRUCTION - TEXAS	4,581,999
19	NEWMAN UNIT 4 GAS TURBINE 1 SPARE COMPONENTS	4,193,903
20	DISTRIBUTION BETTERMENT - TEXAS	4,118,249
21	MONTANA POWER STATION UNIT 1 INTERMEDIATE PRESSURE TURBINE REPLACEMENT	4,026,281
22	MONTANA POWER STATION UNIT 2 INTERMEDIATE PRESSURE TURBINE REPLACEMENT	3,998,136
23	MONTANA POWER STATION UNIT 1 PARTIAL HOT SECTION REPLACEMENT	3,842,769
24	DIAMONDHEAD SUBSTATION TRANSFORMER ADDITION T2	3,609,838
25	SPRINGERVILLE CIRCUIT BREAKER REPLACEMENT	3,441,624
26	AFTON TO AIRPORT TRANSMISSION LINE	3,393,922
27	FABENS CUSTOMER SERVICE CENTER NEW CONSTRUCTION	3,317,751
28	NEWMAN CAPITAL IMPROVEMENTS	3,316,830
29	RIO GRANDE DISTRIBUTION SUBSTATION CAPITAL UPGRADES	3,079,427
30	NETWORK SYSTEM UPGRADE BY EATON CORPORATION	2,621,250
31	PATRIOT SUBSTATION TRANSFORMER ADDITON T2	2,487,437
32	DISTRIBUTION MOBILE TRANSFORMERS	2,471,900
33	MCCOMBS DISTRIBUTION SUBSTATION NEW CONSTRUCTION	2,416,439
34	FAR EAST TEMPORARY SUBSTATION	2,232,012
35	ALAMO DISTRIBUTION SUBSTATION REGULATOR REPLACEMENT	2,128,091
36	SUNSET SUBSTATION 3 PHASE VOLTAGE REGULATOR REPLACEMENT	1,989,793
37	NEWMAN UNIT 4 GAS TURBINE 1 SPARE BLADED ROTOR	1,734,923
38	NEWMAN UNIT 4 GAS TURBINE 2 SECOND SPARE ROTOR ACQUISITION	1,732,249
39	DISTRIBUTION DAMAGE - TEXAS	1,714,302
40	MULTIPROTOCOL LABEL SWITCHING TRANSPORT NETWORK REPLACEMENT	1,645,439
41	POLE REPLACEMENTS AND IMPROVEMENTS - NEW MEXICO	1,637,440
42	RE-CABLING OF DOWNTOWN NETWORK FEEDERS	1,627,776
43	NEW NEWMAN UNIT 6 SUBSTATION TO NEWMAN TRANSMISSION LINE	1,533,119
44	RIO GRANDE CAPITAL IMPROVEMENTS	1,508,902
45	DISTRIBUTION SUBSTATION RELAY UPGRADES - TEXAS	1,405,464
46	NEW SAN FELIPE DISTRIBUTION SUBSTATION	1,321,963
47	STANTON GENERATOR REPLACEMENT	1,174,527
48	DISTRIBUTION RESIDENTIAL CONSTRUCTION - NEW MEXICO	1,171,922
49	VISTA SUBSTATION RECONFIGURATION AND UPGRADES	1,033,590
50	SHARED SERVICES CAPITAL IMPROVEMENTS	1,024,478
51	MINOR PROJECTS	37,537,057
43	Total	484,156,394

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

ACCUMULATED PROVISION FOR DEPRECIATION OF ELECTRIC UTILITY PLANT (Account 108)
Explain in a footnote any important adjustments during year. Explain in a footnote any difference between the amount for book cost of plant retired, Line 12, column (c), and that reported for electric plant in service, page 204, column (d), excluding retirements of non-depreciable property. The provisions of Account 108 in the Uniform System of Accounts require that retirements of depreciable plant be recorded when such plant is removed from service. If the respondent has a significant amount of plant retired at year end which has not been recorded and/or classified to the various reserve functional classifications, make preliminary closing entries to tentatively functionalize the book cost of the plant retired. In addition, include all costs included in retirement work in progress at year end in the appropriate functional classifications. Show separately interest credits under a sinking fund or similar method of depreciation accounting.
Line No.	Item (a)	Total (c + d + e) (b)	Electric Plant in Service (c)	Electric Plant Held for Future Use (d)	Electric Plant Leased To Others (e)
Section A. Balances and Changes During Year
1	AccumulatedProvisionForDepreciationOfElectricUtilityPlant Balance Beginning of Year	2,465,591,868	2,465,591,868
2	Depreciation Provisions for Year, Charged to
3	DepreciationExpenseExcludingAdjustments (403) Depreciation Expense	122,809,770	122,809,770
4	DepreciationExpenseForAssetRetirementCosts (403.1) Depreciation Expense for Asset Retirement Costs	1,350,702	1,350,702
5	ExpensesOfElectricPlantLeasedToOthers (413) Exp. of Elec. Plt. Leas. to Others
6	TransportationExpensesClearing Transportation Expenses-Clearing	2,083,993	2,083,993
7	OtherClearingAccounts Other Clearing Accounts
8	OtherAccounts Other Accounts (Specify, details in footnote):
9.1	Other Accounts (Specify, details in footnote):
10	DepreciationProvision TOTAL Deprec. Prov for Year (Enter Total of lines 3 thru 9)	123,543,061	123,543,061
11	Net Charges for Plant Retired:
12	BookCostOfRetiredPlant Book Cost of Plant Retired	23,686,629	23,686,629
13	CostOfRemovalOfPlant Cost of Removal	5,803,110	5,803,110
14	SalvageValueOfRetiredPlant Salvage (Credit)	2,809,131	2,809,131
15	NetChargesForRetiredPlant TOTAL Net Chrgs. for Plant Ret. (Enter Total of lines 12 thru 14)	26,680,608	26,680,608
16	OtherAdjustmentsToAccumulatedDepreciation Other Debit or Cr. Items (Describe, details in footnote):
17.1	Other Debit or Cr. Items (Describe, details in footnote):
18	BookCostOfAssetRetirementCosts Book Cost or Asset Retirement Costs Retired
19	AccumulatedProvisionForDepreciationOfElectricUtilityPlant Balance End of Year (Enter Totals of lines 1, 10, 15, 16, and 18)	2,562,454,321	2,562,454,321
Section B. Balances at End of Year According to Functional Classification
20	AccumulatedDepreciationSteamProduction Steam Production	281,697,363	281,697,363
21	AccumulatedDepreciationNuclearProduction Nuclear Production	1,339,803,468	1,339,803,468
22	AccumulatedDepreciationHydraulicProductionConventional Hydraulic Production-Conventional
23	AccumulatedDepreciationHydraulicProductionPumpedStorage Hydraulic Production-Pumped Storage
24	AccumulatedDepreciationOtherProduction Other Production	104,062,137	104,062,137
25	AccumulatedDepreciationTransmission Transmission	263,360,392	263,360,392
26	AccumulatedDepreciationDistribution Distribution	460,256,069	460,256,069
27	AccumulatedDepreciationRegionalTransmissionAndMarketOperation Regional Transmission and Market Operation
28	AccumulatedDepreciationGeneral General	113,274,892	113,274,892
29	AccumulatedProvisionForDepreciationOfElectricUtilityPlant TOTAL (Enter Total of lines 20 thru 28)	2,562,454,321	2,562,454,321

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

INVESTMENTS IN SUBSIDIARY COMPANIES (Account 123.1)
Report below investments in Account 123.1, Investments in Subsidiary Companies. Provide a subheading for each company and list thereunder the information called for below. Sub-TOTAL by company and give a TOTAL in columns (e), (f), (g) and (h). (a) Investment in Securities - List and describe each security owned. For bonds give also principal amount, date of issue, maturity, and interest rate. (b) Investment Advances - Report separately the amounts of loans or investment advances which are subject to repayment, but which are not subject to current settlement. With respect to each advance show whether the advance is a note or open account. List each note giving date of issuance, maturity date, and specifying whether note is a renewal. Report separately the equity in undistributed subsidiary earnings since acquisition. The TOTAL in column (e) should equal the amount entered for Account 418.1. For any securities, notes, or accounts that were pledged designate such securities, notes, or accounts in a footnote, and state the name of pledgee and purpose of the pledge. If Commission approval was required for any advance made or security acquired, designate such fact in a footnote and give name of Commission, date of authorization, and case or docket number. Report column (f) interest and dividend revenues from investments, including such revenues from securities disposed of during the year. In column (h) report for each investment disposed of during the year, the gain or loss represented by the difference between cost of the investment (or the other amount at which carried in the books of account if different from cost) and the selling price thereof, not including interest adjustment includible in column (f). Report on Line 42, column (a) the TOTAL cost of Account 123.1.
Line No.	DescriptionOfInvestmentsInSubsidiaryCompanies Description of Investment (a)	DateOfAcquisitionInvestmentsInSubsidiaryCompanies Date Acquired (b)	DateOfMaturityInvestmentsInSubsidiaryCompanies Date of Maturity (c)	InvestmentInSubsidiaryCompanies Amount of Investment at Beginning of Year (d)	EquityInEarningsOfSubsidiaryCompanies Equity in Subsidiary Earnings of Year (e)	InterestAndDividendRevenueFromInvestments Revenues for Year (f)	InvestmentInSubsidiaryCompanies Amount of Investment at End of Year (g)	InvestmentGainLossOnDisplosal Gain or Loss from Investment Disposed of (h)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42	Total Cost of Account 123.1 $		Total				0

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

MATERIALS AND SUPPLIES
For Account 154, report the amount of plant materials and operating supplies under the primary functional classifications as indicated in column (a); estimates of amounts by function are acceptable. In column (d), designate the department or departments which use the class of material. Give an explanation of important inventory adjustments during the year (in a footnote) showing general classes of material and supplies and the various accounts (operating expenses, clearing accounts, plant, etc.) affected debited or credited. Show separately debit or credits to stores expense clearing, if applicable.
Line No.	Account (a)	Balance Beginning of Year (b)	Balance End of Year (c)	Department or Departments which Use Material (d)
1	Fuel Stock (Account 151)	3,323,586	2,464,542	Production
2	Fuel Stock Expenses Undistributed (Account 152)	0	0
3	Residuals and Extracted Products (Account 153)	0	0
4	Plant Materials and Operating Supplies (Account 154)
5	Assigned to - Construction (Estimated)	11,899,469	(a) 13,328,817
6	Assigned to - Operations and Maintenance
7	Production Plant (Estimated)	6,421,583	9,539,265	Production
8	Transmission Plant (Estimated)	1,637,259	5,204,711	Transmission
9	Distribution Plant (Estimated)	17,175,378	25,271,080	Distribution
10	Regional Transmission and Market Operation Plant (Estimated)	0	0
11	Assigned to - Other (provide details in footnote)	34,969,483	(b) 36,836,966
12	TOTAL Account 154 (Enter Total of lines 5 thru 11)	72,103,172	90,180,840
13	Merchandise (Account 155)	0	0
14	Other Materials and Supplies (Account 156)	0	0
15	Nuclear Materials Held for Sale (Account 157) (Not applic to Gas Util)	0	0
16	Stores Expense Undistributed (Account 163)	104,096	(c) 35,009
17
18
19
20	TOTAL Materials and Supplies	75,322,662	92,680,391

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

FOOTNOTE DATA

(a) Concept: PlantMaterialsAndOperatingSuppliesConstruction


	Balance at Beginning of Year		Balance at End of Year
Production	$	4,439,741	$	2,054,180
Transmission	5,153,745		—
Distribution	1,815,574		7,302,583
Other	490,409		3,972,054
Total	$	11,899,469	$	13,328,817

(b) Concept: PlantMaterialsAndOperatingSuppliesOther


Assigned to Operating and Maintenance:	Balance at Beginning of Year		Balance at End of Year
Production	$	31,289,381	$	32,121,735
Transmission	39,532		145,352
Distribution	2,327,832		2,793,799
Other	179,077		361,212
Total O&M	$	33,835,822	$	35,422,098
Assigned to Other:
Production	—		—
Distribution	490,065		855,247
Administrative and General	27,501		(94,370)
General Plant	616,095		653,991
Total Other	$	1,133,661	$	1,414,868

Total	$	34,969,483	$	36,836,966

(c) Concept: StoresExpenseUndistributed

Account 163 total activity for 2022 was $139,105:


Balance at Beginning of Year		Balance at End of Year
$	(104,096)	$	35,009


2022 Activity
$	139,105

Debits and Credits to Account 163 for 2021 and 2022 were as follow:

2021


Debits		Credits
$	2,718,599	$	(2,818,147)


Activity
$	(99,548)

2022


Debits		Credits
$	2,474,166	$	(2,335,061)


Activity
$	139,105

Credits to Stores Expense Undistributed (Account 163) were debited as follows:


CWIP	2021		2022
Production	$	51,048	$	482,886
Transmission	83,529		—
Distribution	149,401		296,161
General	1,566		6,300
Total	$	285,544	$	785,347


Plant
Production	$	19,215	$	177,657
Transmission	26,536		63,035
Distribution	1,328,358		1,024,908
General	1,968		1,037
Total	$	1,376,077	$	1,266,637


Operation and Maintenance
Production	$	947,441	$	147,988
Transmission	2,739		4,354
Distribution	163,241		101,147
Administrative and General	3,792		2,712
Total	$	1,117,213	$	256,201


Other
Other	$	39,313	$	26,876
Total	$	39,313	$	26,876


Total Debits			$	2,818,147		$	2,335,061

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

Allowances (Accounts 158.1 and 158.2)
Report below the particulars (details) called for concerning allowances. Report all acquisitions of allowances at cost. Report allowances in accordance with a weighted average cost allocation method and other accounting as prescribed by General Instruction No. 21 in the Uniform System of Accounts. Report the allowances transactions by the period they are first eligible for use: the current year’s allowances in columns (b)-(c), allowances for the three succeeding years in columns (d)-(i), starting with the following year, and allowances for the remaining succeeding years in columns (j)-(k). Report on Line 4 the Environmental Protection Agency (EPA) issued allowances. Report withheld portions Lines 36-40. Report on Line 5 allowances returned by the EPA. Report on Line 39 the EPA’s sales of the withheld allowances. Report on Lines 43-46 the net sales proceeds and gains/losses resulting from the EPA’s sale or auction of the withheld allowances. Report on Lines 8-14 the names of vendors/transferors of allowances acquired and identify associated companies (See "associated company" under "Definitions" in the Uniform System of Accounts). Report on Lines 22 - 27 the name of purchasers/ transferees of allowances disposed of and identify associated companies. Report the net costs and benefits of hedging transactions on a separate line under purchases/transfers and sales/transfers. Report on Lines 32-35 and 43-46 the net sales proceeds and gains or losses from allowance sales.
		Current Year		Year One		Year Two		Year Three		Future Years		Totals
Line No.	SO2 Allowances Inventory (Account 158.1) (a)	No. (b)	Amt. (c)	No. (d)	Amt. (e)	No. (f)	Amt. (g)	No. (h)	Amt. (i)	No. (j)	Amt. (k)	No. (l)	Amt. (m)
1	Balance-Beginning of Year	(a) 16,077		(c) 365		(d) 365		(e) 359		(f) 9,693		(g) 26,859
2
3	Acquired During Year:
4	Issued (Less Withheld Allow)	(b) 359										359
5	Returned by EPA
6
7
8	Purchases/Transfers:
9	Out of Period Adjustments
10
11
12
13
14
15	Total
16
17	Relinquished During Year:
18	Charges to Account 509	36										36
19	Other:
20	Allowances Used
20.1	Allowances Used
21	Cost of Sales/Transfers:
22
23
24
25
26
27
28	Total
29	Balance-End of Year	16,400		365		365		359		9,693		27,182
30
31	Sales:
32	Net Sales Proceeds(Assoc. Co.)
33	Net Sales Proceeds (Other)
34	Gains
35	Losses
	Allowances Withheld (Acct 158.2)
36	Balance-Beginning of Year
37	Add: Withheld by EPA
38	Deduct: Returned by EPA
39	Cost of Sales
40	Balance-End of Year
41
42	Sales
43	Net Sales Proceeds (Assoc. Co.)
44	Net Sales Proceeds (Other)
45	Gains
46	Losses

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

FOOTNOTE DATA

(a) Concept: AllowanceInventoryNumber

The Balance-Beginning of the Year 2022 reflects allowances from the Acid Rain Program ("ARP") accounts for the Newman, Montana, and Rio Grande Generating Stations as well as the TX SO2 program applicable to only Newman Units 2, 3, and 4 (GT1 & GT2).

(b) Concept: AllowancesIssuedLessWithheldAllowancesNumber

Represents Texas SO2 program allowances allocated for 2022 as well as the ARP allowances issued in prior years.

(c) Concept: AllowanceInventoryNumber

Represents allowances allocated to EPE by the EPA based on our current electric generation and the current regulatory framework.

(d) Concept: AllowanceInventoryNumber

Represents allowances allocated to EPE by the EPA based on our current electric generation and the current regulatory framework.

(e) Concept: AllowanceInventoryNumber

Represents allowances allocated to EPE by the EPA based on our current electric generation and the current regulatory framework.

(f) Concept: AllowanceInventoryNumber

Represents allowances allocated to EPE by the EPA based on our current electric generation and the current regulatory framework. Allowances for future years include allowances for each year beginning in 2026 through 2052.

(g) Concept: AllowanceInventoryNumber

Represents allowances banked by EPE through December 31, 2022. EPE has not purchased any allowances, therefore, there is no amount in column (m). At December 31, 2022, SO2 allowances were trading at approximately $0.40 per ton (allowance) under the ARP.

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

Allowances (Accounts 158.1 and 158.2)
Report below the particulars (details) called for concerning allowances. Report all acquisitions of allowances at cost. Report allowances in accordance with a weighted average cost allocation method and other accounting as prescribed by General Instruction No. 21 in the Uniform System of Accounts. Report the allowances transactions by the period they are first eligible for use: the current year’s allowances in columns (b)-(c), allowances for the three succeeding years in columns (d)-(i), starting with the following year, and allowances for the remaining succeeding years in columns (j)-(k). Report on Line 4 the Environmental Protection Agency (EPA) issued allowances. Report withheld portions Lines 36-40. Report on Line 5 allowances returned by the EPA. Report on Line 39 the EPA’s sales of the withheld allowances. Report on Lines 43-46 the net sales proceeds and gains/losses resulting from the EPA’s sale or auction of the withheld allowances. Report on Lines 8-14 the names of vendors/transferors of allowances acquired and identify associated companies (See "associated company" under "Definitions" in the Uniform System of Accounts). Report on Lines 22 - 27 the name of purchasers/ transferees of allowances disposed of and identify associated companies. Report the net costs and benefits of hedging transactions on a separate line under purchases/transfers and sales/transfers. Report on Lines 32-35 and 43-46 the net sales proceeds and gains or losses from allowance sales.
		Current Year		Year One		Year Two		Year Three		Future Years		Totals
Line No.	NOx Allowances Inventory (Account 158.1) (a)	No. (b)	Amt. (c)	No. (d)	Amt. (e)	No. (f)	Amt. (g)	No. (h)	Amt. (i)	No. (j)	Amt. (k)	No. (l)	Amt. (m)
1	Balance-Beginning of Year	(a) 153	42,572	520		520						1,193	42,572
2
3	Acquired During Year:
4	Issued (Less Withheld Allow)	(b) 32										32
5	Returned by EPA
6
7
8	Purchases/Transfers:
9	Fathom Markets	(c) 1,050	3,875,000									1,050	3,875,000
10	Out of Period Adjustments
11
12
13
14
15	Total	1,050	3,875,000									1,050	3,875,000
16
17	Relinquished During Year:
18	Charges to Account 509	1,012	3,349,889									1,012	3,349,889
19	Other:
20	Allowances Used
20.1	Allowances Used
21	Cost of Sales/Transfers:
22
23
24
25
26
27
28	Total
29	Balance-End of Year	223	567,683	520		520						1,263	567,683
30
31	Sales:
32	Net Sales Proceeds(Assoc. Co.)
33	Net Sales Proceeds (Other)
34	Gains
35	Losses
	Allowances Withheld (Acct 158.2)
36	Balance-Beginning of Year
37	Add: Withheld by EPA
38	Deduct: Returned by EPA
39	Cost of Sales
40	Balance-End of Year
41
42	Sales
43	Net Sales Proceeds (Assoc. Co.)
44	Net Sales Proceeds (Other)
45	Gains
46	Losses

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

FOOTNOTE DATA

(a) Concept: AllowanceInventoryNumber

All entries to this form correspond to EPE's allowances under CSAPR Nox Ozone Season Group 2. Effective September 29, 2017 for the 2017 control period and subsequent years, the Company is no longer a participant in CSAPR Nox annual or Ozone Season Group 1 programs.

(b) Concept: AllowancesIssuedLessWithheldAllowancesNumber

Represents Nox allowances allocated annually for Nox CSAPR ozone season Group 2 and any New Unit Set Aside allowances allocated through 12/31/2022.

(c) Concept: AllowancesInventoryPurchasesTransfersNumber

Includes the Nox allowances purchased for the 2022 compliance year.

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

EXTRAORDINARY PROPERTY LOSSES (Account 182.1)
				WRITTEN OFF DURING YEAR
Line No.	DescriptionOfExtraordinaryPropertyLoss Description of Extraordinary Loss [Include in the description the date of Commission Authorization to use Acc 182.1 and period of amortization (mo, yr to mo, yr).] (a)	ExtraordinaryPropertyLossesNotYetRecognized Total Amount of Loss (b)	ExtraordinaryPropertyLossesRecognized Losses Recognized During Year (c)	ExtraordinaryPropertyLossesWrittenOffAccountCharged Account Charged (d)	ExtraordinaryPropertyLossesWrittenOff Amount (e)	ExtraordinaryPropertyLosses Balance at End of Year (f)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
20	TOTAL					0

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

UNRECOVERED PLANT AND REGULATORY STUDY COSTS (182.2)
				WRITTEN OFF DURING YEAR
Line No.	DescriptionOfUnrecoveredPlantAndRegulatoryStudyCosts Description of Unrecovered Plant and Regulatory Study Costs [Include in the description of costs, the date of COmmission Authorization to use Acc 182.2 and period of amortization (mo, yr to mo, yr)] (a)	UnrecoveredPlantAndRegulatoryStudyCostsNotYetRecognized Total Amount of Charges (b)	UnrecoveredPlantAndRegulatoryStudyCostsRecognized Costs Recognized During Year (c)	UnrecoveredPlantAndRegulatoryStudyCostsWrittenOffAccountCharged Account Charged (d)	UnrecoveredPlantAndRegulatoryStudyCostsWrittenOff Amount (e)	UnrecoveredPlantAndRegulatoryStudyCosts Balance at End of Year (f)
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49	TOTAL					0

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

Transmission Service and Generation Interconnection Study Costs
Report the particulars (details) called for concerning the costs incurred and the reimbursements received for performing transmission service and generator interconnection studies. List each study separately. In column (a) provide the name of the study. In column (b) report the cost incurred to perform the study at the end of period. In column (c) report the account charged with the cost of the study. In column (d) report the amounts received for reimbursement of the study costs at end of period. In column (e) report the account credited with the reimbursement received for performing the study.
Line No.	DescriptionOfStudyPerformed Description (a)	StudyCostsIncurred Costs Incurred During Period (b)	StudyCostsAccountCharged Account Charged (c)	StudyCostsReimbursements Reimbursements Received During the Period (d)	StudyCostsAccountReimbursed Account Credited With Reimbursement (e)
1	Transmission Studies
20	Total
21	Generation Studies
22	2022 Fall Cluster West	11,900	186-000	11,900	186-000
23	Di200SB	278	186-000	278	186-000
24	Technology Change (H252W)	7,910	186-000	7,910	186-000
25	2021 Fall Cluster	228,614	186-000	228,614	186-000
26	2022 Fall Cluster West	766	408-100	766	186-000
27	Di200SB	20	408-100	20	186-000
28	2021 Fall Cluster	1,999	408-100	1,999	186-000
29	2022 Fall Cluster West	42	925-000	42	186-000
30	Di200SB	2	925-000	2	186-000
31	2021 Fall Cluster	94	925-000	94	186-000
32	2022 Fall Cluster West	3,538	926-000	3,538	186-000
33	Di200SB	48	926-000	48	186-000
34	2021 Fall Cluster	6,309	926-000	6,309	186-000
35	AfN188SB	143	186-000	143	186-000
36	2022 Spring Cluster	175,210	186-000	175,210	186-000
37	AfN188SB	10	408-100	10	186-000
38	2022 Spring Cluster	1,869	408-100	1,869	186-000
39	AfN188SB	1	925-000	1	186-000
40	2022 Spring Cluster	19	925-000	19	186-000
41	AfN188SB	24	926-000	24	186-000
42	2022 Spring Cluster	7,486	926-000	7,486	186-000
43	HL250W	14,398	186-000	14,398	186-000
44	HL250W	40	408-100	40	186-000
45	LA130S	22,081	186-000	22,081	186-000
46	HL250W	1	925-000	1	186-000
47	LA130S	72	408-100	72	186-000
48	HL250W	185	926-000	185	186-000
49	LA130S	3	925-000	3	186-000
50	AA20SB	20,495	186-000	20,495	186-000
51	LA130S	215	926-000	215	186-000
52	AfN280SB	1,240	186-000	1,240	186-000
53	HL500SB	346	186-000	346	186-000
54	AfN280SB	70	408-100	70	186-000
55	HL500SB	25	408-100	25	186-000
56	AfN280SB	3	925-000	3	186-000
57	HL500SB	2	925-000	2	186-000
58	AfN280SB	209	926-000	209	186-000
59	HL500SB	59	926-000	59	186-000
39	Total	505,727		505,727
40	Grand Total	505,727		505,727

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

OTHER REGULATORY ASSETS (Account 182.3)
Report below the particulars (details) called for concerning other regulatory assets, including rate order docket number, if applicable. Minor items (5% of the Balance in Account 182.3 at end of period, or amounts less than $100,000 which ever is less), may be grouped by classes. For Regulatory Assets being amortized, show period of amortization.
				CREDITS
Line No.	DescriptionAndPurposeOfOtherRegulatoryAssets Description and Purpose of Other Regulatory Assets (a)	OtherRegulatoryAssets Balance at Beginning of Current Quarter/Year (b)	IncreaseDecreaseInOtherRegulatoryAssets Debits (c)	OtherRegulatoryAssetsWrittenOffAccountCharged Written off During Quarter/Year Account Charged (d)	OtherRegulatoryAssetsWrittenOffRecovered Written off During the Period Amount (e)	OtherRegulatoryAssets Balance at end of Current Quarter/Year (f)
1	Taxes - Regulatory Assets	51,661,328	7,106,405	Various		(x) 58,767,733
2	Rio Grande Resources Trust:
3	(a) Nuclear Fuel Postload Daily Finance Charge	3,372,457	4,945,225	518	5,176,553	3,141,129
4	(b) Texas and New Mexico Coal Reclamation	2,005,498		501	816,638	1,188,860
5	(c) Texas and New Mexico Four Corners Decommissioning	3,342,125		407.3	990,408	2,351,717
6	Net Undercollection of Fuel Revenues:
7	Texas	48,702,503		440s	48,702,503
8	New Mexico
9	FERC	135,476		440s	135,476
10	Texas:
11	(d) 2017 Texas Rate Case Costs	382,051		928	40,081	341,970
12	(e) 2021 Texas Rate Case Costs	1,266,536	875,738	928	205,140	1,937,134
13	(f) Texas Demand Response Program	203,873		928	79,282	124,591
14	Texas Tax Credit Refund	393		182.3	393
15	(g) Texas Relate Back Surcharge	155	9,440,647	440s		9,440,802
16	(h) Texas Military Base Discount and Recovery Factor	18,846	36,593	440s		55,439
17	(i) Texas Corporate Tax Compliance Reform	106,837		928	41,552	65,285
18	(j) Texas Energy Efficiency Program	2,790,047		451	1,853,289	936,758
19	(k) Texas Automated Metering System	258,886	79,491	928	28,800	309,577
20	(l) Texas TCRF Filing	325,124		928	40,099	285,025
21	(m) Texas DCRF Filing	232,459	6,875	928	24,930	214,404
22	(n) 2019 Texas Fuel Reconciliation		330,400	928	34,415	295,985
23	(o) 2022 Texas Fuel Reconciliation		178,262			178,262
24	New Mexico Renewable Energy:
25	(p) Credits and Related Costs	2,176,318		407.3	499,116	1,677,202
26	New Mexico:
27	(q) 2020 New Mexico Rate Case Costs	1,519,104		928	341,050	1,178,054
28	(r) New Mexico Demand Response Program	187,354	27,019	407.3	45,840	168,533
29	(s) New Mexico Transportation Electrification Plan (TEP)		211,919			211,919
30	(t) New Mexico Automated Metering System		149,580			149,580
31	(u) FERC Cost of Service General	837,968	475,761			1,313,729
32	(v) Palo Verde Deferred Depreciation	3,654,481		407.3	152,184	3,502,297
33	(w) COVID-19 Related Costs	8,710,790	7,200,680	407.3	656,031	15,255,439
34	Other		372			372
44	TOTAL	131,890,609	31,064,967		59,863,780	103,091,796

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

FOOTNOTE DATA

(a) Concept: DescriptionAndPurposeOfOtherRegulatoryAssets

Amortization is based on a pro rata relationship with nuclear fuel amortization.

(b) Concept: DescriptionAndPurposeOfOtherRegulatoryAssets

Final coal mine reclamation costs are related to EPE's previous ownership interest in the Four Corners Generation Station ("Four Corners"), and represent the cost to reclaim the land disturbed during the coal mining that was not previously reclaimed while the mine was in operation.

Pursuant to the final order in the 2016 Fuel Reconciliation, PUCT Docket No. 46308, the Texas jurisdiction portion of the final coal reclamation costs are to be recovered through fuel costs over a seven-year period beginning July 2016. Pursuant to the final order in NMPRC Case No. 15-00109-UT, the New Mexico jurisdiction portion of the final coal reclamation costs are to be recovered through the Fuel and Purchased Power Cost Adjustment Clause ("FPPCAC") over a seven-year period beginning with the rate case to be filed after closing the sale of EPE's interest in Four Corners on July 6, 2016.

In accordance with the order in Case No. 15-00109-UT, EPE requested recovery of the final coal reclamation costs in its 2020 New Mexico rate case filing, Case No. 20-00104-UT. On June 23, 2021, the NMPRC issued its final order in the 2020 New Mexico Rate Case, which did not alter EPE s request for recovery of the coal reclamation costs. The seven-year recovery period for the coal reclamation costs began in July 2021.

(c) Concept: DescriptionAndPurposeOfOtherRegulatoryAssets

The 2017 PUCT Final Order in Docket No. 46831 approved the recovery of approximately $5.5 million representing the Texas portion to decommission Four Corners, over a seven year period beginning August 2017. The NMPRC in Case No. 15-00109-UT also approved EPE's request for an accounting order establishing $1.4 million of costs related to the decommissioning of Four Corners as a regulatory asset to be recovered over a seven-year period beginning in the rate case to be filed after closing the sale of EPE's interest in Four Corners on July 6, 2016. The recovery was requested in EPE's 2020 New Mexico rate case filing, Case No. 20-00104-UT. On June 23, 2021, the NMPRC issued its final order in the 2020 New Mexico Rate Case, which approved EPE’s request for recovery of decommissioning costs. The seven-year recovery period for decommissioning costs began in July 2021.

(d) Concept: DescriptionAndPurposeOfOtherRegulatoryAssets

Represents rate case costs incurred after August 1, 2017 related to EPE's 2017 rate case, Docket No. 46831. In accordance with the Final Order in Docket No. 46831, EPE requested recovery of these costs in EPE's 2021 Texas base rate case filing, Docket No. 52195 ("2021 Texas Retail Rate Case Filing"). On September 15, 2022, the PUCT issued the PUCT Final Order in Docket No. 52195 ("2021 PUCT Final Order") which allowed recovery of these costs over a four-year recovery period which began in August 2022.

(e) Concept: DescriptionAndPurposeOfOtherRegulatoryAssets

Represents rate case costs approved in the 2021 Texas Retail Rate Case Filing. The 2021 PUCT Final Order approved the recovery of rate case expenses incurred before April 1, 2022 over a four-year recovery period which began in August 2022. The PUCT ordered costs incurred August 2022 and later to be requested for recovery in it's next base rate case filing.

(f) Concept: DescriptionAndPurposeOfOtherRegulatoryAssets

Represents costs associated with EPE's Demand Response Pilot Program. This program provides an incentive for customers to switch to eSmart Thermostats, giving EPE the ability to slightly modify the eSmart Thermostats during peak times. The 2021 PUCT Final Order allowed recovery of these costs through base rates beginning in August 2022.

(g) Concept: DescriptionAndPurposeOfOtherRegulatoryAssets

Represents a relate-back surcharge pursuant to the 2021 PUCT Final Order. Pursuant to the order, EPE will recover a portion of the base rate increase for the period of November 3, 2021 through July 31, 2022 via a relate-back surcharge that was

implemented in March 2023. The relate-back surcharge will be in effect for twelve months and will offset corresponding excess deferred tax credits by customer class.

(h) Concept: DescriptionAndPurposeOfOtherRegulatoryAssets

Public Utility Regulatory Act Section 36.354 requires that each electric utility provide Military Base Rate discounts to military bases in areas where customers choice is not available. In accordance with the Final Order in Docket No. 37690, the Military Base Discount Recovery Factor allows EPE to recover the total base rate discount provided to military base facilities from non-military base customers through a recovery factor. The rate is updated annually.

(i) Concept: DescriptionAndPurposeOfOtherRegulatoryAssets

Represents costs associated with EPE's filing of a proposed refund tariff with the PUCT in Docket No. 48124. The tariff is designed to reduce Texas base rate charges for the decrease in federal income tax expense resulting from the TCJA. The 2021 PUCT Final Order allowed recovery of these costs through base rates beginning in August 2022.

(j) Concept: DescriptionAndPurposeOfOtherRegulatoryAssets

In accordance with the Final Order in Docket No. 37690, EPE began recovering Energy Efficiency Program costs effective July 2010 through a tariff rider approved by the PUCT via Texas Rate 97. The rate is updated annually.

(k) Concept: DescriptionAndPurposeOfOtherRegulatoryAssets

Represents costs associated with EPE's future Automated Metering System filing for its Texas Jurisdiction. EPE requested recovery of these costs in the 2021 Texas Retail Rate Case Filing. The 2021 PUCT Final Order approved the recovery of these expenses incurred before April 1, 2022 over a four-year recovery period which began in August 2022. The PUCT ordered costs incurred August 2022 and later to be requested for recovery in it's next base rate case filing.

(l) Concept: DescriptionAndPurposeOfOtherRegulatoryAssets

Represents costs associated with EPE's filing to establish its Transmission Cost Recovery Factor ("TCRF") with the PUCT in Docket No. 49148. EPE requested recovery of these costs in the 2021 Texas Retail Rate Case Filing. The 2021 PUCT Final Order allowed recovery of these costs over a four-year recovery period which began in August 2022.

(m) Concept: DescriptionAndPurposeOfOtherRegulatoryAssets

Represents costs associated with EPE's filing to establish its Distribution Cost Recovery Factor ("DCRF") with the PUCT in Docket No. 49395. EPE requested recovery of these costs in the 2021 Texas Retail Rate Case Filing. The 2021 PUCT Final Order allowed recovery of these costs over a four-year recovery period which began in August 2022.

(n) Concept: DescriptionAndPurposeOfOtherRegulatoryAssets

Represents filing costs related to the 2019 Texas Fuel Reconciliation Filing. EPE requested recovery of these costs in the 2021 Texas Retail Rate Case Filing. The 2021 PUCT Final Order allowed recovery of these costs over a four-year recovery period which began in August 2022.

(o) Concept: DescriptionAndPurposeOfOtherRegulatoryAssets

Represents filing costs related to the 2022 Texas Fuel Reconciliation Filing. EPE will request recovery of these costs in a future base rate case filing.

(p) Concept: DescriptionAndPurposeOfOtherRegulatoryAssets

In NMPRC Case No.15-00127-UT, the NMPRC approved EPE's request to recover costs related to renewable energy certificates and procurement plan costs over a six-year period beginning July 1, 2016. EPE requested costs incurred after December 31, 2014 as a component of base rates in EPE's 2020 New Mexico rate case filing, Case No. 20-00104-UT. On June 23, 2021, the NMPRC issued its final order in the 2020 New Mexico rate case allowing recovery of these costs. Pursuant to the final order in Case No. 20-00104-UT, the recovery period for costs incurred prior to December 31, 2014 was extended five years beginning March 2021. The five-year recovery period for costs incurred after December 31, 2014 began in July 2021.

(q) Concept: DescriptionAndPurposeOfOtherRegulatoryAssets

EPE requested recovery of these costs in EPE's 2020 New Mexico rate case filing, Case No. 20-00104-UT. On June 23, 2021, the NMPRC issued its final order in the 2020 New Mexico rate case allowing recovery of these costs. The five-year recovery period of these costs began in July 2021.

(r) Concept: DescriptionAndPurposeOfOtherRegulatoryAssets

On February 22, 2017, the NMPRC approved, in Case No. 17-00016-UT, EPE's request to implement a Demand Response Pilot Program pursuant to its proposed Original Rate No. 37. This program provides an incentive for customers to switch to

eSmart Thermostats, giving EPE the ability to slightly modify the eSmart Thermostats during peak times. Program costs incurred as of December 31, 2019 were requested in EPE's 2020 New Mexico Rate Case, Case No. 20-00104-UT. On June 23, 2021, the NMPRC issued its final order in the 2020 New Mexico rate case allowing recovery of these costs. The five-year recovery of these costs began in July 2021.

(s) Concept: DescriptionAndPurposeOfOtherRegulatoryAssets

Represents costs associated with EPE's New Mexico Transportation Electrification Plan ("TEP") filed with the NMPRC under Case No. 20-00241-UT to be recovered through a TEP Rider expected to be filed at a future date.

(t) Concept: DescriptionAndPurposeOfOtherRegulatoryAssets

Represents costs associated with EPE's future Automated Metering System filing for its New Mexico Jurisdiction. These costs will be requested in a future regulatory filing.

(u) Concept: DescriptionAndPurposeOfOtherRegulatoryAssets

Represents costs incurred for the FERC transmission rate case for its New Mexico jurisdiction. EPE requested these costs in its FERC rate case filing in Docket No. ER22-282-000.

(v) Concept: DescriptionAndPurposeOfOtherRegulatoryAssets

In NMPRC Case No. 09-00171-UT, the NMPRC extended the depreciable life of Palo Verde an additional 20 years for New Mexico rate making purposes, reducing the depreciation expense collected from New Mexico customers in rates, effective January 2010. In April 2011, the Nuclear Regulatory Commission renewed the operating license for all three units at Palo Verde for an additional 20 years; therefore, the incremental difference in Palo Verde depreciation for the New Mexico jurisdiction is being amortized to account 407.3 over the remaining life of Palo Verde.

(w) Concept: DescriptionAndPurposeOfOtherRegulatoryAssets

On March 26, 2020, the PUCT issued an order authorizing regulated utility companies the ability to use an accounting mechanism and subsequent process to seek future recovery of expenses resulting from the effects of COVID-19. EPE requested recovery of these costs in the 2021 Texas Retail Rate Case Filing. The 2021 PUCT Final Order allowed recovery of $6.3 million in deferred COVID-19 costs, incurred through December 31, 2020, over a four-year recovery period which began in August 2022. An annual true-up filing of any changes in bad debt and additional COVID-related expenses incurred during the previous year, as directed by the 2021 PUCT Final Order, is due by March 31 annually. The initial filing to be submitted by March 31, 2023 will include a true-up for bad debt amounts and expenses related to COVID-19 that were incurred in the years 2021 and 2022. Thereafter, the changes to be included in the true-up will be for the previous calendar year.

As of December 31, 2022 EPE has recorded $4.8 million as a regulatory asset related to the New Mexico portion of bad debt expense and other COVID-19 expenses. EPE will request recovery of these costs in a future New Mexico rate case filing. EPE offset the regulatory asset with a reserve, so there was no impact to the balance sheet or income statement. EPE did not record a regulatory liability for any potential cost savings because it is unknown at this time if these savings are due to timing or are a permanent reduction in costs.

(x) Concept: OtherRegulatoryAssets

This item relates to (i) the regulatory treatment of the equity portion of AFUDC which is recovered in rate base by an offset with the related accumulated deferred income tax liability, and (ii) excess deferred state income taxes which are recovered through amortization to tax expense in cost of service. The amortization period for the excess deferred state income taxes is 15 years as established in the PUCT Final Order in Docket No. 44941 and the NMPRC Final Order in Case No. 15-00127-UT ("NMPRC Case No. 15-00127 Final Order").

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

MISCELLANEOUS DEFFERED DEBITS (Account 186)
Report below the particulars (details) called for concerning miscellaneous deferred debits. For any deferred debit being amortized, show period of amortization in column (a) Minor item (1% of the Balance at End of Year for Account 186 or amounts less than $100,000, whichever is less) may be grouped by classes.
				CREDITS
Line No.	Description of Miscellaneous Deferred Debits (a)	Balance at Beginning of Year (b)	Debits (c)	Credits Account Charged (d)	Credits Amount (e)	Balance at End of Year (f)
1	Facility & Impact Study	642,281	5,358,973	131	4,405,000	1,596,254
2	Reimbursable Transmission &
3	Distribution Projects	3,280,356	934,361	131	638,253	3,576,464
4	El Paso Water Utilities Land
5	Lease	(d) 929,064		507	88,000	(e) 841,064
6	Palo Verde:
7	(a) Water Agreement Deposit	3,230,787		519	119,327	3,111,460
8	Pooled Inventory Management	371,236		519	14,800	356,436
9	(b) Integrated Planning and Forecast	4,221,750		Various	4,221,750
10	(c) Empire Substation Network Upgrade	11,368,276		Various	7,879,934	3,488,342
11	Miscellaneous	317,182	79,574	Various	72,623	324,133
47	Miscellaneous Work in Progress	(f) 175,437				50,809
48	Deferred Regulatroy Comm. Expenses (See pages 350 - 351)
49	TOTAL	24,536,368				13,344,962

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

FOOTNOTE DATA

(a) Concept: DescriptionOfMiscellaneousDeferredDebits

In May 2010, Palo Verde entered into a 40 year Municipal Effluent Purchase and Sale Agreement with the Sub-regional Operating Group (City of Phoenix, City of Mesa, City of Scottsdale and the City of Glendale).

(b) Concept: DescriptionOfMiscellaneousDeferredDebits

The deferred debit relates an integrated planning and forecasting license.

(c) Concept: DescriptionOfMiscellaneousDeferredDebits

The deferred debit relates the network upgrade for Empire Substation.

(d) Concept: MiscellaneousDeferredDebitsExcludingMiscellaneousWorkInProgress

The deferred debit relates to cash payments made at the beginning of the lease period which extends to December 2032.

(e) Concept: MiscellaneousDeferredDebitsExcludingMiscellaneousWorkInProgress

The deferred debit relates to cash payments made at the beginning of the lease period which extends to December 2032.

(f) Concept: MiscellaneousWorkInProgress

Represents miscellaneous charges pending final classification.

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

ACCUMULATED DEFERRED INCOME TAXES (Account 190)
Report the information called for below concerning the respondent’s accounting for deferred income taxes. At Other (Specify), include deferrals relating to other income and deductions.
Line No.	DescriptionOfAccumulatedDeferredIncomeTax Description and Location (a)	AccumulatedDeferredIncomeTaxes Balance at Beginning of Year (b)	AccumulatedDeferredIncomeTaxes Balance at End of Year (c)
1	Electric
2	Deferred tax assets:
3	Plant, principally due to capitalized costs	45,369,857	49,969,810
4	Benefit of tax loss carryforwards		0
5	Pensions and benefits	19,715,603	20,662,419
6	Regulatory liabilities related to income taxes	66,391,255	63,066,998
7	Asset retirement obligation	27,725,145	30,308,970
8	Strategic transaction costs	6,777,509	4,542,251
7	Other	12,446,956	18,631,493
8	TOTAL Electric (Enter Total of lines 2 thru 7)	178,426,325	187,181,941
9	Gas
15	Other
16	TOTAL Gas (Enter Total of lines 10 thru 15)
17.1	Other (Specify)
17.2	Deferred tax assets:
17.3	Decommissioning costs	2,264,604	2,170,617
17	Other (Specify)
18	TOTAL (Acct 190) (Total of lines 8, 16 and 17)	180,690,929	189,352,558

Notes

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

CAPITAL STOCKS (Account 201 and 204)
Report below the particulars (details) called for concerning common and preferred stock at end of year, distinguishing separate series of any general class. Show separate totals for common and preferred stock. If information to meet the stock exchange reporting requirement outlined in column (a) is available from the SEC 10-K Report Form filing, a specific reference to report form (i.e., year and company title) may be reported in column (a) provided the fiscal years for both the 10-K report and this report are compatible. Entries in column (b) should represent the number of shares authorized by the articles of incorporation as amended to end of year. Give details concerning shares of any class and series of stock authorized to be issued by a regulatory commission which have not yet been issued. The identification of each class of preferred stock should show the dividend rate and whether the dividends are cumulative or noncumulative. State in a footnote if any capital stock that has been nominally issued is nominally outstanding at end of year. Give particulars (details) in column (a) of any nominally issued capital stock, reacquired stock, or stock in sinking and other funds which is pledged, stating name of pledgee and purpose of pledge.
Line No.	Class and Series of Stock and Name of Stock Series (a)	Number of Shares Authorized by Charter (b)	Par or Stated Value per Share (c)	Call Price at End of Year (d)	Outstanding per Bal. Sheet (Total amount outstanding without reduction for amounts held by respondent) Shares (e)	Outstanding per Bal. Sheet (Total amount outstanding without reduction for amounts held by respondent) Amount (f)	Held by Respondent As Reacquired Stock (Acct 217) Shares (g)	Held by Respondent As Reacquired Stock (Acct 217) Cost (h)	Held by Respondent In Sinking and Other Funds Shares (i)	Held by Respondent In Sinking and Other Funds Amount (j)
1	Common Stock (Account 201)
2	Common Stock	1,000	0.01		1,000	10
7	Total	1,000			1,000	10
8	Preferred Stock (Account 204)
9
10
11
12	Total					0
1	Capital Stock (Accounts 201 and 204) - Data Conversion
2
3
4
5	Total

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

2023-03-24

Year/Period of Report

End of:

2022

/

Q4

Other Paid-in Capital
1. Report below the balance at the end of the year and the information specified below for the respective other paid-in capital accounts. Provide a subheading for each account and show a total for the account, as well as a total of all accounts for reconciliation with the balance sheet, page 112. Explain changes made in any account during the year and give the accounting entries effecting such change. Donations Received from Stockholders (Account 208) - State amount and briefly explain the origin and purpose of each donation. Reduction in Par or Stated Value of Capital Stock (Account 209) - State amount and briefly explain the capital changes that gave rise to amounts reported under this caption including identification with the class and series of stock to which related. Gain or Resale or Cancellation of Reacquired Capital Stock (Account 210) - Report balance at beginning of year, credits, debits, and balance at end of year with a designation of the nature of each credit and debit identified by the class and series of stock to which related. Miscellaneous Paid-In Capital (Account 211) - Classify amounts included in this account according to captions that, together with brief explanations, disclose the general nature of the transactions that gave rise to the reported amounts.
Line No.	Item (a)	Amount (b)
1	DonationsReceivedFromStockholdersAbstract Donations Received from Stockholders (Account 208)
2	DonationsReceivedFromStockholders Beginning Balance Amount
3.1	IncreasesDecreasesFromSalesOfDonationsReceivedFromStockholders Increases (Decreases) from Sales of Donations Received from Stockholders
4	DonationsReceivedFromStockholders Ending Balance Amount
5	ReductionInParOrStatedValueOfCapitalStockAbstract Reduction in Par or Stated Value of Capital Stock (Account 209)
6	ReductionInParOrStatedValueOfCapitalStock Beginning Balance Amount
7.1	IncreasesDecreasesDueToReductionsInParOrStatedValueOfCapitalStock Increases (Decreases) Due to Reductions in Par or Stated Value of Capital Stock
8	ReductionInParOrStatedValueOfCapitalStock Ending Balance Amount
9	GainOrResaleOrCancellationOfReacquiredCapitalStockAbstract Gain or Resale or Cancellation of Reacquired Capital Stock (Account 210)
10	GainOnResaleOrCancellationOfReacquiredCapitalStock Beginning Balance Amount
11.1	IncreasesDecreasesFromGainOrResaleOrCancellationOfReacquiredCapitalStock Increases (Decreases) from Gain or Resale or Cancellation of Reacquired Capital Stock
12	GainOnResaleOrCancellationOfReacquiredCapitalStock Ending Balance Amount
13	MiscellaneousPaidInCapitalAbstract Miscellaneous Paid-In Capital (Account 211)
14	MiscellaneousPaidInCapital Beginning Balance Amount
15.1	IncreasesDecreasesDueToMiscellaneousPaidInCapital Increases (Decreases) Due to Miscellaneous Paid-on-Capital
16	MiscellaneousPaidInCapital Ending Balance Amount
17	OtherPaidInCapitalAbstract Historical Data - Other Paid in Capital
18	OtherPaidInCapitalDetail Beginning Balance Amount
19.1	IncreasesDecreasesInOtherPaidInCapital Increases (Decreases) in Other Paid-in-Capital
20	OtherPaidInCapitalDetail Ending Balance Amount
40	OtherPaidInCapital Total	0

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

CAPITAL STOCK EXPENSE (Account 214)
Report the balance at end of the year of discount on capital stock for each class and series of capital stock. If any change occurred during the year in the balance in respect to any class or series of stock, attach a statement giving particulars (details) of the change. State the reason for any charge-off of capital stock expense and specify the account charged.
Line No.	NameOfClassAndSeriesOfStock Class and Series of Stock (a)	CapitalStockExpense Balance at End of Year (b)
1	214. Capital Stock Expense
2	Balance at Beginning of Year
22	TOTAL	0

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

LONG-TERM DEBT (Account 221, 222, 223 and 224)
Report by Balance Sheet Account the details concerning long-term debt included in Accounts 221, Bonds, 222, Reacquired Bonds, 223, Advances from Associated Companies, and 224, Other Long-Term Debt. For bonds assumed by the respondent, include in column (a) the name of the issuing company as well as a description of the bonds, and in column (b) include the related account number. For Advances from Associated Companies, report separately advances on notes and advances on open accounts. Designate demand notes as such. Include in column (a) names of associated companies from which advances were received, and in column (b) include the related account number. For receivers' certificates, show in column (a) the name of the court and date of court order under which such certificates were issued, and in column (b) include the related account number. In a supplemental statement, give explanatory details for Accounts 223 and 224 of net changes during the year. With respect to long-term advances, show for each company: (a)principal advanced during year (b) interest added to principal amount, and (c) principal repaid during year. Give Commission authorization numbers and dates. If the respondent has pledged any of its long-term debt securities, give particulars (details) in a footnote, including name of the pledgee and purpose of the pledge. If the respondent has any long-term securities that have been nominally issued and are nominally outstanding at end of year, describe such securities in a footnote. If interest expense was incurred during the year on any obligations retired or reacquired before end of year, include such interest expense in column (m). Explain in a footnote any difference between the total of column (m) and the total Account 427, Interest on Long-Term Debt and Account 430, Interest on Debt to Associated Companies. Give details concerning any long-term debt authorized by a regulatory commission but not yet issued.
Line No.	ClassAndSeriesOfObligationCouponRateDescription Class and Series of Obligation, Coupon Rate (For new issue, give commission Authorization numbers and dates) (a)	RelatedAccountNumber Related Account Number (b)	Principal Amount of Debt Issued (c)	LongTermDebtIssuanceExpensePremiumOrDiscount Total Expense, Premium or Discount (d)	LongTermDebtIssuanceExpenses Total Expense (e)	LongTermDebtPremium Total Premium (f)	LongTermDebtDiscount Total Discount (g)	NominalDateOfIssue Nominal Date of Issue (h)	DateOfMaturity Date of Maturity (i)	AmortizationPeriodStartDate AMORTIZATION PERIOD Date From (j)	AmortizationPeriodEndDate AMORTIZATION PERIOD Date To (k)	Outstanding (Total amount outstanding without reduction for amounts held by respondent) (l)	Interest for Year Amount (m)
1	Bonds (Account 221)
2	3.60% 2009 Series A Palo Verde Pollution Control Bonds		63,500,000		755,357			05/22/2019	02/01/2040	05/22/2019	02/01/2040	63,500,000	2,286,000
3	3.60% 2009 Series B Palo Verde Pollution Control Bonds		37,100,000		470,463			05/22/2019	04/01/2040	05/22/2019	04/01/2040	37,100,000	1,335,600
4	4.50% 2012 Series A Palo Verde Pollution Control Bonds		59,235,000		896,854			08/28/2012	08/01/2042	08/28/2012	08/01/2042	59,235,000	2,665,575
5	Subtotal		159,835,000		2,122,674							159,835,000	6,287,175
6	Reacquired Bonds (Account 222)
7
8
9
10	Subtotal											0
11	Advances from Associated Companies (Account 223)
12
13
14
15	Subtotal											0
16	Other Long Term Debt (Account 224)
17	6.00% 2005 Senior Notes		400,000,000		5,239,886		2,312,000	05/17/2005	05/15/2035	05/17/2005	05/15/2035	400,000,000	24,000,000
18	7.50% 2008 Senior Notes		150,000,000		1,714,035		1,281,000	06/03/2008	03/15/2038	06/03/2008	03/15/2038	150,000,000	11,250,000
19	3.30% 2012 Senior Notes												(a) 3,492,500
20	5.00% 2014 Senior Notes		150,000,000		1,787,396		532,500	12/01/2014	12/01/2044	12/01/2014	12/01/2044	150,000,000	7,500,000
21	5.00% 2016 Senior Notes		150,000,000		1,762,201	7,051,500		03/24/2016	12/01/2044	03/24/2016	12/01/2044	150,000,000	7,500,000
22	4.22% 2018 Senior Notes		125,000,000		893,476			06/28/2018	08/15/2028	06/28/2018	08/15/2028	125,000,000	5,275,000
23	3.54% Senior Notes		200,000,000		1,158,238			02/15/2022	02/15/2052	02/15/2022	02/15/2052	200,000,000	6,175,333
24	2.91% Senior Notes		150,000,000		868,679			09/01/2022	09/01/2032	09/01/2022	09/01/2032	150,000,000	1,455,000
25	Treasury Rate Lock Agreements												735,160
26	Subtotal		1,325,000,000		13,423,911	7,051,500	4,125,500					1,325,000,000	67,382,993
33	TOTAL		1,484,835,000									1,484,835,000	(b) 73,670,168

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

FOOTNOTE DATA

(a) Concept: InterestExpenseOtherLongTermDebt

On September 15, 2022, EPE elected to redeem equal to 100% of the principal amount of its 3.30% Senior Notes with principal amount of $150.0 million which had a maturity date of December 15, 2022, utilizing funds from the proceeds of the 2.91% Senior Notes issued on February 15, 2022.

(b) Concept: InterestExpenseOnLongTermDebtIssued

EPE's account 427 - Interest on Long-Term Debt includes interest of $2,645,500 on the 4.07% $65 million and 2.35% $45 million RGRT Senior Guaranteed Notes and $1,479,918 on the Revolving Credit Facility. The 4.07% $65 million and 2.35% $45 million RGRT Senior Guaranteed Notes are recorded in account 227 - Obligations Under Capital Lease-noncurrent and Revolving Credit Facility borrowings are recorded in account 243 - Obligation Under Capital Lease-current.

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

RECONCILIATION OF REPORTED NET INCOME WITH TAXABLE INCOME FOR FEDERAL INCOME TAXES
Report the reconciliation of reported net income for the year with taxable income used in computing Federal income tax accruals and show computation of such tax accruals. Include in the reconciliation, as far as practicable, the same detail as furnished on Schedule M-1 of the tax return for the year. Submit a reconciliation even though there is no taxable income for the year. Indicate clearly the nature of each reconciling amount. If the utility is a member of a group which files a consolidated Federal tax return, reconcile reported net income with taxable net income as if a separate return were to be field, indicating, however, intercompany amounts to be eliminated in such a consolidated return. State names of group member, tax assigned to each group member, and basis of allocation, assignment, or sharing of the consolidated tax among the group members. A substitute page, designed to meet a particular need of a company, may be used as Long as the data is consistent and meets the requirements of the above instructions. For electronic reporting purposes complete Line 27 and provide the substitute Page in the context of a footnote.
Line No.	Particulars (Details) (a)	Amount (b)
1	Net Income for the Year (Page 117)	113,320,079
2	Reconciling Items for the Year
3
4	Taxable Income Not Reported on Books
5	Contributions in aid of construction	3,255,487
6	Capitalized Construction Interest and Capitalized Costs	17,474,759
7	Decommissioning Costs	70,353,030
8	Other	2,162,378
9	Deductions Recorded on Books Not Deducted for Return
10	Coal Reclamation	1,807,046
11	Debt Issuance Costs	1,517,808
12	Deferred Fuel	70,145,394
13	Lobbying	356,491
14	Meals and Entertainment	39,464
15	Non-deductible Transaction Costs	9,997,068
16	SFAS 143 Asset Retirement Obligation	11,679,436
17	State Income Taxes	1,727,427
18	Taxes Other Than Federal	563,849
14	Income Recorded on Books Not Included in Return
15	AFUDC	5,450,354
16	Unbilled Revenue	966,626
19	Deductions on Return Not Charged Against Book Income
20	Depreciation and Amortization Differences	23,865,627
21	Employee Benefits	4,413,786
22	Decommissioning Costs	2,090,136
23	Repair Allowance	1,642,623
24	Section 174 R&D	520,190
25	Federal Income Taxes (Detail Below)	7,670,559
27	Federal Tax Net Income	254,980,313
28	Show Computation of Tax:
29	Tax Computed at Statutory Rate	(a) 26,151,550
30	ITC Amortization Net of Deferred Taxes	7,762
31	Amortization of Excess Deferred Taxes	15,481,841
32	Permanent Differences	1,509,082
33	State Income Taxes (Federal Effect)	743,524
34	Amortization of Regulatory Assets	2,063
35	Allowance for Equity Funds Used During Construction	756,369
36	Other
37	Total Federal Income Taxes Expense (Benefit)	7,670,559

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

FOOTNOTE DATA

(a) Concept: ComputationOfTax

Tax Computed at Statutory Rate


Net Income	$	113,320,079
Federal and State Income Tax Expense	11,211,110
Pre-Tax Income	124,531,189
Tax Rate	21		%
Tax Computed at Statutory Rate	$	26,151,550

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

TAXES ACCRUED, PREPAID AND CHARGES DURING YEAR
Give particulars (details) of the combined prepaid and accrued tax accounts and show the total taxes charged to operations and other accounts during the year. Do not include gasoline and other sales taxes which have been charged to the accounts to which the taxed material was charged. If the actual, or estimated amounts of such taxes are known, show the amounts in a footnote and designate whether estimated or actual amounts. Include on this page, taxes paid during the year and charged direct to final accounts, (not charged to prepaid or accrued taxes.) Enter the amounts in both columns (g) and (h). The balancing of this page is not affected by the inclusion of these taxes. Include in column (g) taxes charged during the year, taxes charged to operations and other accounts through (a) accruals credited to taxes accrued, (b)amounts credited to proportions of prepaid taxes chargeable to current year, and (c) taxes paid and charged direct to operations or accounts other than accrued and prepaid tax accounts. List the aggregate of each kind of tax in such manner that the total tax for each State and subdivision can readily be ascertained. If any tax (exclude Federal and State income taxes) covers more than one year, show the required information separately for each tax year, identifying the year in column (d). Enter all adjustments of the accrued and prepaid tax accounts in column (i) and explain each adjustment in a foot- note. Designate debit adjustments by parentheses. Do not include on this page entries with respect to deferred income taxes or taxes collected through payroll deductions or otherwise pending transmittal of such taxes to the taxing authority. Report in columns (l) through (o) how the taxes were distributed. Report in column (o) only the amounts charged to Accounts 408.1 and 409.1 pertaining to electric operations. Report in column (l) the amounts charged to Accounts 408.1 and 409.1 pertaining to other utility departments and amounts charged to Accounts 408.2 and 409.2. Also shown in column (o) the taxes charged to utility plant or other balance sheet accounts. For any tax apportioned to more than one utility department or account, state in a footnote the basis (necessity) of apportioning such tax.
					BALANCE AT BEGINNING OF YEAR					BALANCE AT END OF YEAR		DISTRIBUTION OF TAXES CHARGED
Line No.	DescriptionOfTaxesAccruedPrepaidAndCharged Kind of Tax (See Instruction 5) (a)	TypeOfTax Type of Tax (b)	TaxJurisdiction State (c)	TaxYear Tax Year (d)	TaxesAccrued Taxes Accrued (Account 236) (e)	PrepaidTaxes Prepaid Taxes (Include in Account 165) (f)	TaxesCharged Taxes Charged During Year (g)	TaxesPaid Taxes Paid During Year (h)	TaxAdjustments Adjustments (i)	TaxesAccrued Taxes Accrued (Account 236) (j)	PrepaidTaxes Prepaid Taxes (Included in Account 165) (k)	TaxesAccruedPrepaidAndCharged Electric (Account 408.1, 409.1) (l)	IncomeTaxesExtraordinaryItems Extraordinary Items (Account 409.3) (m)	AdjustmentsToRetainedEarnings Adjustment to Ret. Earnings (Account 439) (n)	TaxesIncurredOther Other (o)
1	Current FIT Payable	Federal Tax		2022	0	0	52,556,574	30,105,532		22,451,042		53,311,759			755,185
2	Prior Year	Federal Tax		2021	1,393,676	0	693,424			2,087,100					693,424
3	Prior Year	Federal Tax		2020	564,799	0		702		564,097					0
4	Prior Year	Federal Tax		2019	3,899,257	0	862,852	3,586		3,039,991					862,852
5	Subtotal Federal Tax				4,728,134	0	52,387,146	30,101,244	0	27,014,036	0	53,311,759	0	0	924,613
6	Franchise Tax/Margin Tax	State Tax	Texas	2022	785,041	0	4,324,676	1,894,315		1,645,320		2,559,694			1,764,982
7	Income	State Tax	New Mexico	2022	58,386	0	1,646,369	400,000		1,187,983		2,518,661			872,292
8	Income	State Tax	Arizona	2022	990,892		438,355			1,429,247		241,703			196,652
9	Subtotal State Tax				147,465	0	6,409,400	2,294,315	0	4,262,550	0	5,320,058	0	0	1,089,342
10	Regulatory Commission	Other Taxes	Texas	2022	662,673	0	1,409,692	1,246,911		825,454		1,409,692
11	Regulatory Commission	Other Taxes	New Mexico	2022	971,133	0	1,019,117	971,133		1,019,117		1,019,117
12	Subtotal Other Tax				1,633,806	0	2,428,809	2,218,044	0	1,844,571	0	2,428,809	0	0	0
13	Ad Valorem	Property Tax	Texas	2022	18,297,705	0	17,721,534	18,301,298		17,717,941		17,636,828			84,706
14	Ad Valorem	Property Tax	New Mexico	2022	2,421,421	1,452	3,961,177	4,000,615		2,381,983	1,452	4,045,881			84,704
15	Ad Valorem	Property Tax	Arizona	2022	3,394,089	0	6,831,713	6,791,155		3,434,647		6,831,713
16	Subtotal Property Tax				24,113,215	1,452	28,514,424	29,093,068	0	23,534,571	1,452	28,514,422	0	0	2
17	FUTA	Unemployment Tax		2022	0	0	56,133	56,133				641,171			585,038
18	Unemployment	Unemployment Tax	Texas	2022	0	0	41,364	41,364				472,476			431,112
19	Unemployment	Unemployment Tax	New Mexico	2022			17,468	17,468				199,531			182,063
20	Subtotal Unemployment Tax				0	0	114,965	114,965	0		0	1,313,178	0	0	1,198,213
21	Use Tax	Sales And Use Tax	Texas	2022	1,514,054	0	9,108,233	9,493,483		1,128,804		50,875			9,159,108
22	Compensating Tax	Sales And Use Tax	New Mexico	2022	56,607	0	2,215,011	2,261,016		10,602		70,237			2,144,774
23	Sales & Use Taxes	Sales And Use Tax	Arizona	2022	843		38	843		38					38
24	Subtotal Sales And Use Tax				1,571,504	0	11,323,282	11,755,342	0	1,139,444	0	19,362	0	0	11,303,920
25	Insurance Contributions	Federal Insurance Tax		2022	1,843,582	0	445,050	2,228,577		60,055		5,083,534			4,638,484
26	Subtotal Federal Insurance Tax				1,843,582	0	445,050	2,228,577	0	60,055	0	5,083,534	0	0	4,638,484
27	Franchise Fees (OSR)	Franchise Tax	Texas	2022	7,048,097	8,169	34,831,662	33,972,025		7,910,026	10,461	34,831,661			1
28	Franchise Fees (OSR)	Franchise Tax	New Mexico	2022	216,729	214,906	4,411,843	4,603,952		227,229	12,297	119,258			4,292,585
29	Subtotal Franchise Tax				7,264,826	206,737	39,243,505	38,575,977	0	8,137,255	1,836	34,950,919	0	0	4,292,586
30	Gross Receipts	Miscellaneous Other Tax	Texas	2022	2,826,847	0	14,408,983	14,105,379		3,130,451		14,408,983
31	Subtotal Miscellaneous Other Tax				2,826,847	0	14,408,983	14,105,379	0	3,130,451	0	14,408,983	0	0	0
32	Palo Verde Payroll Taxes	Payroll Tax	Arizona	2022	0	0	3,315,901	3,315,901		0		2,671,815			644,086
33	Subtotal Payroll Tax				0	0	3,315,901	3,315,901	0	0	0	2,671,815	0	0	644,086
34	Other Taxes	Other Taxes and Fees	New Mexico	2022	0	0	19,862	19,862		0		19,862
35	Subtotal Other Taxes And Fees				0	0	19,862	19,862	0	0	0	19,862	0	0	0
40	TOTAL				44,129,379	205,285	158,571,603	133,782,950	0	69,122,933	384	148,002,977	0	0	10,568,626

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

ACCUMULATED DEFERRED INVESTMENT TAX CREDITS (Account 255)
Report below information applicable to Account 255. Where appropriate, segregate the balances and transactions by utility and nonutility operations. Explain by footnote any correction adjustments to the account balance shown in column (g). Include in column (i) the average period over which the tax credits are amortized.
			Deferred for Year		Allocations to Current Year's Income
Line No.	Account Subdivisions (a)	Balance at Beginning of Year (b)	Account No. (c)	Amount (d)	Account No. (e)	Amount (f)	Adjustments (g)	Balance at End of Year (h)	Average Period of Allocation to Income (i)	ADJUSTMENT EXPLANATION (j)
1	Electric Utility
2	3%
3	4%
4	7%
5	10%	11,710,340			411.4	1,501,631		10,208,709	25 years
6	30%	6,009,737	411.4	1,865,360	411.4	353,904		7,521,193	25 years
8	TOTAL Electric (Enter Total of lines 2 thru 7)	17,720,077		1,865,360		1,855,535		17,729,902
9	Other (List separately and show 3%, 4%, 7%, 10% and TOTAL)
10			411.4	1,865,360	411.4	1,855,535		9,825		`
47	OTHER TOTAL
48	GRAND TOTAL	17,720,077						17,729,902

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

OTHER DEFERRED CREDITS (Account 253)
Report below the particulars (details) called for concerning other deferred credits. For any deferred credit being amortized, show the period of amortization. Minor items (5% of the Balance End of Year for Account 253 or amounts less than $100,000, whichever is greater) may be grouped by classes.
			DEBITS
Line No.	Description and Other Deferred Credits (a)	Balance at Beginning of Year (b)	Contra Account (c)	Amount (d)	Credits (e)	Balance at End of Year (f)
1	Environmental Accrual	196,639	131	1,014		195,625
2	Texas Docket 23530 Settlement	124,180			221	124,401
3	Contribution in Aid of Construct.	27,362,433	416	10,582,529	3,392,236	20,172,140
4	Facility & Impact Study	3,448,398	131	3,618,191	7,644,645	7,474,852
5	Employment Separation Agreements	594,957	131	60,242	37,703	572,418
6	New Mexico Voluntary Renewable
7	Energy Program	61,738	440,442,445			61,738
8	Other	1,915,822	131	397,834	3,787,455	5,305,443
47	TOTAL	33,704,166		14,659,810	14,862,260	33,906,616

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

ACCUMULATED DEFERRED INCOME TAXES - ACCELERATED AMORTIZATION PROPERTY (Account 281)

Report the information called for below concerning the respondent’s accounting for deferred income taxes rating to amortizable property.
For other (Specify),include deferrals relating to other income and deductions.
Use footnotes as required.

CHANGES DURING YEAR

ADJUSTMENTS

Debits

Credits

Line No.

Account

(a)

Balance at Beginning of Year

(b)

Amounts Debited to Account 410.1

(c)

Amounts Credited to Account 411.1

(d)

Amounts Debited to Account 410.2

(e)

Amounts Credited to Account 411.2

(f)

Account Credited

(g)

Amount

(h)

Account Debited

(i)

Amount

(j)

Balance at End of Year

(k)

1

Accelerated Amortization (Account 281)

2

Electric

3

Defense Facilities

4

Pollution Control Facilities

5

Other

5.1

Other (provide details in footnote):

8

TOTAL Electric (Enter Total of lines 3 thru 7)

9

Gas

10

Defense Facilities

11

Pollution Control Facilities

12

Other

12.1

Other (provide details in footnote):

15

TOTAL Gas (Enter Total of lines 10 thru 14)

16

Other

16.1

Other

16.2

Other

17

TOTAL (Acct 281) (Total of 8, 15 and 16)

0

18

Classification of TOTAL

19

Federal Income Tax

20

State Income Tax

21

Local Income Tax

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

ACCUMULATED DEFERRED INCOME TAXES - OTHER PROPERTY (Account 282)
Report the information called for below concerning the respondent’s accounting for deferred income taxes rating to property not subject to accelerated amortization. For other (Specify),include deferrals relating to other income and deductions. Use footnotes as required.
			CHANGES DURING YEAR				ADJUSTMENTS
							Debits		Credits
Line No.	Account (a)	Balance at Beginning of Year (b)	Amounts Debited to Account 410.1 (c)	Amounts Credited to Account 411.1 (d)	Amounts Debited to Account 410.2 (e)	Amounts Credited to Account 411.2 (f)	Account Credited (g)	Amount (h)	Account Debited (i)	Amount (j)	Balance at End of Year (k)
1	Account 282
2	Electric	505,596,996	15,613,048	19,698,855	78,244	31,660	Various		Various	(a) 10,805,517	(b) 512,363,290
3	Gas
4	Other (Specify)
5	Total (Total of lines 2 thru 4)	505,596,996	15,613,048	19,698,855	78,244	31,660				10,805,517	512,363,290
6
7
8
9	TOTAL Account 282 (Total of Lines 5 thru 8)	505,596,996	15,613,048	19,698,855	78,244	31,660				10,805,517	512,363,290
10	Classification of TOTAL
11	Federal Income Tax	468,709,960	11,350,837	15,235,585	43,170	1,501			Various	10,797,685	475,664,566
12	State Income Tax	36,887,036	4,262,211	4,463,270	35,074	30,159			Various	7,832	36,698,724
13	Local Income Tax

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

FOOTNOTE DATA

(a) Concept: AccumulatedDeferredIncomeTaxLiabilitiesOtherPropertyAdjustmentsCreditedToAccount

This item primarily relates to the write-off of certain disallowed timing differences related to the TCJA excess deferred taxes as noted in the 2021 PUCT Final Order.

(b) Concept: AccumulatedDeferredIncomeTaxesOtherProperty


		Balance at		Balance at
		Beginning		End
		of Year		of Year
Electric:
	Plant, principally due to depreciation and basis differences	$	450,383,077	$	455,897,559
	Regulatory assets related to income taxes	26,360,784		27,123,340
	Decommissioning	28,853,135		29,342,391

Total - Electric Other		$	505,596,996	$	512,363,290

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

ACCUMULATED DEFERRED INCOME TAXES - OTHER (Account 283)
Report the information called for below concerning the respondent's accounting for deferred income taxes relating to amounts recorded in Account 283. For other (Specify),include deferrals relating to other income and deductions. Provide in the space below explanations for Page 276. Include amounts relating to insignificant items listed under Other. Use footnotes as required.
			CHANGES DURING YEAR				ADJUSTMENTS
							Debits		Credits
Line No.	Account (a)	Balance at Beginning of Year (b)	Amounts Debited to Account 410.1 (c)	Amounts Credited to Account 411.1 (d)	Amounts Debited to Account 410.2 (e)	Amounts Credited to Account 411.2 (f)	Account Credited (g)	Amount (h)	Account Debited (i)	Amount (j)	Balance at End of Year (k)
1	Account 283
2	Electric
3	Deferred Tax	42,562,619	17,479,032	29,063,757	6,063,103	20,262,658	254.3	177,743			16,600,596
4	AEFUDC	3,706,685							182.3	389,133	4,095,818
5	Excess ADSIT	7,172,761	1,416,407	6,492,286	7,606				182.3	6,132,462	8,236,950
9	TOTAL Electric (Total of lines 3 thru 8)	53,442,065	18,895,439	35,556,043	6,070,709	20,262,658		177,743		6,521,595	28,933,364
10	Gas
11
12
13
14
15
16
17	TOTAL Gas (Total of lines 11 thru 16)
18	TOTAL Other
19	TOTAL (Acct 283) (Enter Total of lines 9, 17 and 18)	53,442,065	18,895,439	35,556,043	6,070,709	20,262,658		177,743		6,521,595	28,933,364
20	Classification of TOTAL
21	Federal Income Tax	43,146,113	16,162,285	33,136,514	6,063,103	20,262,658				10,266,517	22,238,846
22	State Income Tax	10,295,952	2,733,154	2,419,529	7,606			3,922,665			6,694,518
23	Local Income Tax
NOTES

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

OTHER REGULATORY LIABILITIES (Account 254)
Report below the particulars (details) called for concerning other regulatory liabilities, including rate order docket number, if applicable. Minor items (5% of the Balance in Account 254 at end of period, or amounts less than $100,000 which ever is less), may be grouped by classes. For Regulatory Liabilities being amortized, show period of amortization.
			DEBITS
Line No.	Description and Purpose of Other Regulatory Liabilities (a)	Balance at Beginning of Current Quarter/Year (b)	Account Credited (c)	Amount (d)	Credits (e)	Balance at End of Current Quarter/Year (f)
1	Regulatory Tax Liabilities	287,449,871	Various	14,660,039	924,829	(f) 273,714,661
2	Net Overcollection of Fuel Revenues:
3	Texas		440s		10,553,755	10,553,755
4	New Mexico	284,638	440s		10,172,596	10,457,234
5	(a) New Mexico Renewable Procurement Standard	2,019,292	440s	875,553		1,143,739
6	FERC		440s		65,249	65,249
7	(b) New Mexico Energy Efficiency Program	967,603	451		2,078,152	3,045,755
8	(c) Texas Relate Back Surcharge	100,336	182.3		244	100,580
9	(d) New Mexico Merger Rate Credit Factor	4,465,467	440s	3,044,651		1,420,816
10	(e) Texas Merger Rate Credit Factor	11,051,251	440s	7,080,432		3,970,819
41	TOTAL	306,338,458		25,660,675	23,794,825	304,472,608

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

FOOTNOTE DATA

(a) Concept: DescriptionAndPurposeOfOtherRegulatoryLiabilities

A portion of this balance is related to Four Peaks renewable energy credit for the period of November 2019 through July 2021. As a result of the Final Order in NMPRC Case No. 21-00111-UT and the Supreme Court Case No. S-1-SC-37458, the amount collected from ratepayers and applicable carrying costs will be returned to customers through the RPS rider, beginning in February 2022.

(b) Concept: DescriptionAndPurposeOfOtherRegulatoryLiabilities

In accordance with the final order in NMPRC Case No. 06-00065-UT, EPE started collecting Energy Efficiency costs, effective May 2009, through a tariff rider approved by the NMPRC via New Mexico Rate 17. The rate is updated annually.

(c) Concept: DescriptionAndPurposeOfOtherRegulatoryLiabilities

The balance represents an overcollection of relate-back revenue associated with the EPE's 2019 TCRF rate filing in PUCT Docket No. 49148. The relate-back period was from July 30, 2019 through December 31, 2019 and the recovery period was over a period of 12 months beginning on April 1, 2020. This item will be addressed in a future TCRF rate proceeding.

(d) Concept: DescriptionAndPurposeOfOtherRegulatoryLiabilities

In compliance with Paragraphs A and B of the NMPRC's final order adopting amended certification of stipulation in NMPRC Case No. 19-00234-UT, EPE issued a merger rate credit (also referred as the Merger Rate Credit Factor "MRCF") to be distributed to New Mexico customers of $8.7 million (aggregate amount) over a 36-month period, effective August 5, 2020. This credit is based on a commitment in the merger agreement between EPE and Sun Jupiter Holdings LLC.

(e) Concept: DescriptionAndPurposeOfOtherRegulatoryLiabilities

In compliance with the Settlement Agreement and Final Order in Docket No. 49849, EPE issued a merger rate credit (also referred to the Merger Rate Credit Factor "MRCF") to Texas customers of $21 million (aggregate amount) over a 36-month period, beginning with bills issued on August 1, 2020. This credit is based on a commitment in the merger agreement between EPE and Sun Jupiter Holdings LLC.

(f) Concept: OtherRegulatoryLiabilities

This item primarily relates to the reduction in the federal corporate income tax rate from 35% to 21% as enacted by the TCJA. The amortization period for the excess TCJA portion is based on the average rate assumption method ("ARAM") for protected assets in both jurisdictions, Texas and New Mexico, in accordance with the 2021 PUCT Final Order and the 2020 NMPRC Final Order. Unprotected assets are amortized over a four year period in Texas per the 2021 PUCT Final Order and a three year period in New Mexico per the 2020 NMPRC Final Order.

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

Electric Operating Revenues
The following instructions generally apply to the annual version of these pages. Do not report quarterly data in columns (c), (e), (f), and (g). Unbilled revenues and MWH related to unbilled revenues need not be reported separately as required in the annual version of these pages. Report below operating revenues for each prescribed account, and manufactured gas revenues in total. Report number of customers, columns (f) and (g), on the basis of meters, in addition to the number of flat rate accounts; except that where separate meter readings are added for billing purposes, one customer should be counted for each group of meters added. The average number of customers means the average of twelve figures at the close of each month. If increases or decreases from previous period (columns (c),(e), and (g)), are not derived from previously reported figures, explain any inconsistencies in a footnote. Disclose amounts of $250,000 or greater in a footnote for accounts 451, 456, and 457.2. Commercial and industrial Sales, Account 442, may be classified according to the basis of classification (Small or Commercial, and Large or Industrial) regularly used by the respondent if such basis of classification is not generally greater than 1000 Kw of demand. (See Account 442 of the Uniform System of Accounts. Explain basis of classification in a footnote.) See page 108, Important Changes During Period, for important new territory added and important rate increase or decreases. For Lines 2,4,5,and 6, see Page 304 for amounts relating to unbilled revenue by accounts. Include unmetered sales. Provide details of such Sales in a footnote.
Line No.	Title of Account (a)	Operating Revenues Year to Date Quarterly/Annual (b)	Operating Revenues Previous year (no Quarterly) (c)	MEGAWATT HOURS SOLD Year to Date Quarterly/Annual (d)	MEGAWATT HOURS SOLD Amount Previous year (no Quarterly) (e)	AVG.NO. CUSTOMERS PER MONTH Current Year (no Quarterly) (f)	AVG.NO. CUSTOMERS PER MONTH Previous Year (no Quarterly) (g)
1	SalesOfElectricityHeadingAbstract Sales of Electricity
2	ResidentialSalesAbstract (440) Residential Sales	(a) 473,723,882	420,982,788	3,317,427	3,182,430	400,582	394,794
3	CommercialAndIndustrialSalesAbstract (442) Commercial and Industrial Sales
4	CommercialSalesAbstract Small (or Comm.) (See Instr. 4)	(b) 289,262,532	265,476,142	2,415,800	2,358,972	44,921	44,142
5	IndustrialSalesAbstract Large (or Ind.) (See Instr. 4)	(c) 72,462,666	62,069,191	1,072,683	1,041,238	49	46
6	PublicStreetAndHighwayLightingAbstract (444) Public Street and Highway Lighting	(d) 5,532,282	5,349,366	40,469	39,189	243	243
7	OtherSalesToPublicAuthoritiesAbstract (445) Other Sales to Public Authorities	(e) 146,107,494	135,687,191	1,538,156	1,502,307	6,302	6,422
8	SalesToRailroadsAndRailwaysAbstract (446) Sales to Railroads and Railways
9	InterdepartmentalSalesAbstract (448) Interdepartmental Sales
10	SalesToUltimateConsumersAbstract TOTAL Sales to Ultimate Consumers	987,088,856	889,564,678	8,384,535	8,124,136	452,097	445,647
11	SalesForResaleAbstract (447) Sales for Resale	257,979,542	117,441,962	(j) 3,475,621	(k) 3,277,468	22	23
12	SalesOfElectricityAbstract TOTAL Sales of Electricity	1,245,068,398	1,007,006,640	11,860,156	11,401,604	452,119	445,670
13	ProvisionForRateRefundsAbstract (Less) (449.1) Provision for Rate Refunds	6,000,000
14	RevenuesNetOfProvisionForRefundsAbstract TOTAL Revenues Before Prov. for Refunds	1,239,068,398	1,007,006,640	11,860,156	11,401,604	452,119	445,670
15	OtherOperatingRevenuesAbstract Other Operating Revenues
16	ForfeitedDiscounts (450) Forfeited Discounts	1,747,400	1,672,667
17	MiscellaneousServiceRevenues (451) Miscellaneous Service Revenues	(f) 14,597,650	(h) 16,515,636
18	SalesOfWaterAndWaterPower (453) Sales of Water and Water Power
19	RentFromElectricProperty (454) Rent from Electric Property	3,307,610	3,226,922
20	InterdepartmentalRents (455) Interdepartmental Rents
21	OtherElectricRevenue (456) Other Electric Revenues	(g) 643,054	(i) 1,348,312
22	RevenuesFromTransmissionOfElectricityOfOthers (456.1) Revenues from Transmission of Electricity of Others	51,120,516	30,047,931
23	RegionalTransmissionServiceRevenues (457.1) Regional Control Service Revenues
24	MiscellaneousRevenue (457.2) Miscellaneous Revenues
25	OtherMiscellaneousOperatingRevenues Other Miscellaneous Operating Revenues
26	OtherOperatingRevenues TOTAL Other Operating Revenues	71,416,230	52,811,468
27	ElectricOperatingRevenues TOTAL Electric Operating Revenues	1,310,484,628	1,059,818,108
Line12, column (b) includes $ 2,297,000 of unbilled revenues.
Line12, column (d) includes 44,011 MWH relating to unbilled revenues

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

FOOTNOTE DATA

(a) Concept: ResidentialSales

Estimated Fuel Clause Revenues included in Residential Sales:


Residential Fuel	$	129,966,563
Community Solar Fuel Credit	(368,151)
Deferred Fuel	(11,259,983)
Total	$	118,338,429

(b) Concept: SmallOrCommercialSalesElectricOperatingRevenue

Estimated Fuel Clause Revenues included in Commercial Sales:


Commercial Fuel	$	93,471,699
Community Solar Fuel Credit	(25,252)
Deferred Fuel	(11,148,033)
Total	$	82,298,414

(c) Concept: LargeOrIndustrialSalesElectricOperatingRevenue

Estimated Fuel Clause Revenues included in Industrial Sales:


Industrial Fuel	$	39,077,348
Deferred Fuel	(5,952,691)
Total	$	33,124,657

(d) Concept: PublicStreetAndHighwayLighting

Estimated Fuel Clause Revenues included in Public Street and Highway Lighting:


Public Street and Highway Lighting Fuel	$	1,520,700
Deferred Fuel	(335,182)
Total	$	1,185,518

(e) Concept: OtherSalesToPublicAuthorities

Estimated Fuel Clause Revenues included in Other Sales to Public Authorities:


Other Sales to Public Authorities Fuel	$	57,896,135
Deferred Fuel	(7,446,590)
Total	$	50,449,545

(f) Concept: MiscellaneousServiceRevenues


Below is the detail of Miscellaneous Service Revenues recorded in account 451:
	December 31, 2022
Non Pay Reconnect Charges	$	805,823
Name Change/Cut in Charge	1,672,871
New Service Charges	379,858
Overhead/Underground Connection Charges	810,759
New Mexico Energy Efficiency Incentive	1,647,276
Texas and New Mexico Energy Efficiency Cost Recovery	8,357,146
Misc Other	923,917
Total	$	14,597,650

(g) Concept: OtherElectricRevenue

Includes $474,275 related to the Company's 15.8% share of Palo Verde other electric revenues from APS and $168,779 related to the sale of renewable energy certificates.

(h) Concept: MiscellaneousServiceRevenues


Below is the detail of Miscellaneous Service Revenues recorded in account 451:
	December 31, 2021
Non Pay Reconnect Charges	$	374,629
Name Change/Cut in Charge	2,005,933
New Service Charges	406,388
Overhead/Underground Connection Charges	839,299
New Mexico Energy Efficiency Incentive	3,146,482
Texas and New Mexico Energy Efficiency Cost Recovery	9,059,498
Misc Other	683,407
Total	$	16,515,636

(i) Concept: OtherElectricRevenue

Includes $956,796 related to the Company's 15.8% share of Palo Verde other electric revenues from APS and $391,516 related to the sale of renewable energy certificates.

(j) Concept: MegawattHoursSoldSalesForResale

Includes 975,891 MWhs related to the Company's Power Purchase and Sales Agreement with Freeport-McMoRan dated December 16, 2005.

(k) Concept: MegawattHoursSoldSalesForResale

Includes 946,487 MWhs related to the Company's Power Purchase and Sales Agreement with Freeport-McMoRan dated December 16, 2005.

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

REGIONAL TRANSMISSION SERVICE REVENUES (Account 457.1)
The respondent shall report below the revenue collected for each service (i.e., control area administration, market administration, etc.) performed pursuant to a Commission approved tariff. All amounts separately billed must be detailed below.
Line No.	Description of Service (a)	Balance at End of Quarter 1 (b)	Balance at End of Quarter 2 (c)	Balance at End of Quarter 3 (d)	Balance at End of Year (e)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46	TOTAL

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

SALES OF ELECTRICITY BY RATE SCHEDULES
Report below for each rate schedule in effect during the year the MWH of electricity sold, revenue, average number of customer, average Kwh per customer, and average revenue per Kwh, excluding date for Sales for Resale which is reported on Page 310. Provide a subheading and total for each prescribed operating revenue account in the sequence followed in "Electric Operating Revenues," Page 300. If the sales under any rate schedule are classified in more than one revenue account, List the rate schedule and sales data under each applicable revenue account subheading. Where the same customers are served under more than one rate schedule in the same revenue account classification (such as a general residential schedule and an off peak water heating schedule), the entries in column (d) for the special schedule should denote the duplication in number of reported customers. The average number of customers should be the number of bills rendered during the year divided by the number of billing periods during the year (12 if all billings are made monthly). For any rate schedule having a fuel adjustment clause state in a footnote the estimated additional revenue billed pursuant thereto. Report amount of unbilled revenue as of end of year for each applicable revenue account subheading.
Line No.	Number and Title of Rate Schedule (a)	MWh Sold (b)	Revenue (c)	Average Number of Customers (d)	KWh of Sales Per Customer (e)	Revenue Per KWh Sold (f)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41	TOTAL Billed Residential Sales	3,297,129	472,174,882	400,582	8,231	0.1432
42	TOTAL Unbilled Rev. (See Instr. 6)	20,298	1,549,000			0.0763
43	TOTAL	3,317,427	(a) 473,723,882	400,582

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

FOOTNOTE DATA

(a) Concept: ResidentialSales

Estimated Fuel Clause Revenues included in Residential Sales:


Residential Fuel	$	129,966,563
Community Solar Fuel Credit	(368,151)
Deferred Fuel	(11,259,983)
Total	$	118,338,429

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

SALES OF ELECTRICITY BY RATE SCHEDULES
Report below for each rate schedule in effect during the year the MWH of electricity sold, revenue, average number of customer, average Kwh per customer, and average revenue per Kwh, excluding date for Sales for Resale which is reported on Page 310. Provide a subheading and total for each prescribed operating revenue account in the sequence followed in "Electric Operating Revenues," Page 300. If the sales under any rate schedule are classified in more than one revenue account, List the rate schedule and sales data under each applicable revenue account subheading. Where the same customers are served under more than one rate schedule in the same revenue account classification (such as a general residential schedule and an off peak water heating schedule), the entries in column (d) for the special schedule should denote the duplication in number of reported customers. The average number of customers should be the number of bills rendered during the year divided by the number of billing periods during the year (12 if all billings are made monthly). For any rate schedule having a fuel adjustment clause state in a footnote the estimated additional revenue billed pursuant thereto. Report amount of unbilled revenue as of end of year for each applicable revenue account subheading.
Line No.	Number and Title of Rate Schedule (a)	MWh Sold (b)	Revenue (c)	Average Number of Customers (d)	KWh of Sales Per Customer (e)	Revenue Per KWh Sold (f)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41	TOTAL Billed Small or Commercial	2,407,542	288,716,532	44,921	53,595	0.1199
42	TOTAL Unbilled Rev. Small or Commercial (See Instr. 6)	8,258	546,000			0.0661
43	TOTAL Small or Commercial	2,415,800	(a) 289,262,532	44,921

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

FOOTNOTE DATA

(a) Concept: SmallOrCommercialSalesElectricOperatingRevenue

Estimated Fuel Clause Revenues included in Commercial Sales:


Commercial Fuel	$	93,471,699
Community Solar Fuel Credit	(25,252)
Deferred Fuel	(11,148,033)
Total	$	82,298,414

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

SALES OF ELECTRICITY BY RATE SCHEDULES
Report below for each rate schedule in effect during the year the MWH of electricity sold, revenue, average number of customer, average Kwh per customer, and average revenue per Kwh, excluding date for Sales for Resale which is reported on Page 310. Provide a subheading and total for each prescribed operating revenue account in the sequence followed in "Electric Operating Revenues," Page 300. If the sales under any rate schedule are classified in more than one revenue account, List the rate schedule and sales data under each applicable revenue account subheading. Where the same customers are served under more than one rate schedule in the same revenue account classification (such as a general residential schedule and an off peak water heating schedule), the entries in column (d) for the special schedule should denote the duplication in number of reported customers. The average number of customers should be the number of bills rendered during the year divided by the number of billing periods during the year (12 if all billings are made monthly). For any rate schedule having a fuel adjustment clause state in a footnote the estimated additional revenue billed pursuant thereto. Report amount of unbilled revenue as of end of year for each applicable revenue account subheading.
Line No.	Number and Title of Rate Schedule (a)	MWh Sold (b)	Revenue (c)	Average Number of Customers (d)	KWh of Sales Per Customer (e)	Revenue Per KWh Sold (f)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41	TOTAL Billed Large (or Ind.) Sales	1,065,539	72,315,666	49	21,745,694	0.0679
42	TOTAL Unbilled Rev. Large (or Ind.) (See Instr. 6)	7,144	147,000			0.0206
43	TOTAL Large (or Ind.)	1,072,683	(a) 72,462,666	49

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

FOOTNOTE DATA

(a) Concept: LargeOrIndustrialSalesElectricOperatingRevenue

Estimated Fuel Clause Revenues included in Industrial Sales:


Industrial Fuel	$	39,077,348
Deferred Fuel	(5,952,691)
Total	$	33,124,657

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

SALES OF ELECTRICITY BY RATE SCHEDULES
Report below for each rate schedule in effect during the year the MWH of electricity sold, revenue, average number of customer, average Kwh per customer, and average revenue per Kwh, excluding date for Sales for Resale which is reported on Page 310. Provide a subheading and total for each prescribed operating revenue account in the sequence followed in "Electric Operating Revenues," Page 300. If the sales under any rate schedule are classified in more than one revenue account, List the rate schedule and sales data under each applicable revenue account subheading. Where the same customers are served under more than one rate schedule in the same revenue account classification (such as a general residential schedule and an off peak water heating schedule), the entries in column (d) for the special schedule should denote the duplication in number of reported customers. The average number of customers should be the number of bills rendered during the year divided by the number of billing periods during the year (12 if all billings are made monthly). For any rate schedule having a fuel adjustment clause state in a footnote the estimated additional revenue billed pursuant thereto. Report amount of unbilled revenue as of end of year for each applicable revenue account subheading.
Line No.	Number and Title of Rate Schedule (a)	MWh Sold (b)	Revenue (c)	Average Number of Customers (d)	KWh of Sales Per Customer (e)	Revenue Per KWh Sold (f)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41	TOTAL Billed Commercial and Industrial Sales
42	TOTAL Unbilled Rev. (See Instr. 6)
43	TOTAL

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

SALES OF ELECTRICITY BY RATE SCHEDULES
Report below for each rate schedule in effect during the year the MWH of electricity sold, revenue, average number of customer, average Kwh per customer, and average revenue per Kwh, excluding date for Sales for Resale which is reported on Page 310. Provide a subheading and total for each prescribed operating revenue account in the sequence followed in "Electric Operating Revenues," Page 300. If the sales under any rate schedule are classified in more than one revenue account, List the rate schedule and sales data under each applicable revenue account subheading. Where the same customers are served under more than one rate schedule in the same revenue account classification (such as a general residential schedule and an off peak water heating schedule), the entries in column (d) for the special schedule should denote the duplication in number of reported customers. The average number of customers should be the number of bills rendered during the year divided by the number of billing periods during the year (12 if all billings are made monthly). For any rate schedule having a fuel adjustment clause state in a footnote the estimated additional revenue billed pursuant thereto. Report amount of unbilled revenue as of end of year for each applicable revenue account subheading.
Line No.	Number and Title of Rate Schedule (a)	MWh Sold (b)	Revenue (c)	Average Number of Customers (d)	KWh of Sales Per Customer (e)	Revenue Per KWh Sold (f)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41	TOTAL Billed Public Street and Highway Lighting	40,180	5,505,282	243	165,350	0.1370
42	TOTAL Unbilled Rev. (See Instr. 6)	289	27,000			0.0934
43	TOTAL	40,469	(a) 5,532,282	243

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

FOOTNOTE DATA

(a) Concept: PublicStreetAndHighwayLighting

Estimated Fuel Clause Revenues included in Public Street and Highway Lighting:


Public Street and Highway Lighting Fuel	$	1,520,700
Deferred Fuel	(335,182)
Total	$	1,185,518

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

SALES OF ELECTRICITY BY RATE SCHEDULES
Report below for each rate schedule in effect during the year the MWH of electricity sold, revenue, average number of customer, average Kwh per customer, and average revenue per Kwh, excluding date for Sales for Resale which is reported on Page 310. Provide a subheading and total for each prescribed operating revenue account in the sequence followed in "Electric Operating Revenues," Page 300. If the sales under any rate schedule are classified in more than one revenue account, List the rate schedule and sales data under each applicable revenue account subheading. Where the same customers are served under more than one rate schedule in the same revenue account classification (such as a general residential schedule and an off peak water heating schedule), the entries in column (d) for the special schedule should denote the duplication in number of reported customers. The average number of customers should be the number of bills rendered during the year divided by the number of billing periods during the year (12 if all billings are made monthly). For any rate schedule having a fuel adjustment clause state in a footnote the estimated additional revenue billed pursuant thereto. Report amount of unbilled revenue as of end of year for each applicable revenue account subheading.
Line No.	Number and Title of Rate Schedule (a)	MWh Sold (b)	Revenue (c)	Average Number of Customers (d)	KWh of Sales Per Customer (e)	Revenue Per KWh Sold (f)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41	TOTAL Billed Other Sales to Public Authorities	1,530,134	146,079,494	6,302	242,801	0.0955
42	TOTAL Unbilled Rev. (See Instr. 6)	8,022	28,000			0.0035
43	TOTAL	1,538,156	(a) 146,107,494	6,302

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

FOOTNOTE DATA

(a) Concept: OtherSalesToPublicAuthorities

Estimated Fuel Clause Revenues included in Other Sales to Public Authorities:


Other Sales to Public Authorities Fuel	$	57,896,135
Deferred Fuel	(7,446,590)
Total	$	50,449,545

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

SALES OF ELECTRICITY BY RATE SCHEDULES
Report below for each rate schedule in effect during the year the MWH of electricity sold, revenue, average number of customer, average Kwh per customer, and average revenue per Kwh, excluding date for Sales for Resale which is reported on Page 310. Provide a subheading and total for each prescribed operating revenue account in the sequence followed in "Electric Operating Revenues," Page 300. If the sales under any rate schedule are classified in more than one revenue account, List the rate schedule and sales data under each applicable revenue account subheading. Where the same customers are served under more than one rate schedule in the same revenue account classification (such as a general residential schedule and an off peak water heating schedule), the entries in column (d) for the special schedule should denote the duplication in number of reported customers. The average number of customers should be the number of bills rendered during the year divided by the number of billing periods during the year (12 if all billings are made monthly). For any rate schedule having a fuel adjustment clause state in a footnote the estimated additional revenue billed pursuant thereto. Report amount of unbilled revenue as of end of year for each applicable revenue account subheading.
Line No.	Number and Title of Rate Schedule (a)	MWh Sold (b)	Revenue (c)	Average Number of Customers (d)	KWh of Sales Per Customer (e)	Revenue Per KWh Sold (f)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41	TOTAL Billed Provision For Rate Refunds
42	TOTAL Unbilled Rev. (See Instr. 6)
43	TOTAL		6,000,000

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

SALES OF ELECTRICITY BY RATE SCHEDULES
Report below for each rate schedule in effect during the year the MWH of electricity sold, revenue, average number of customer, average Kwh per customer, and average revenue per Kwh, excluding date for Sales for Resale which is reported on Page 310. Provide a subheading and total for each prescribed operating revenue account in the sequence followed in "Electric Operating Revenues," Page 300. If the sales under any rate schedule are classified in more than one revenue account, List the rate schedule and sales data under each applicable revenue account subheading. Where the same customers are served under more than one rate schedule in the same revenue account classification (such as a general residential schedule and an off peak water heating schedule), the entries in column (d) for the special schedule should denote the duplication in number of reported customers. The average number of customers should be the number of bills rendered during the year divided by the number of billing periods during the year (12 if all billings are made monthly). For any rate schedule having a fuel adjustment clause state in a footnote the estimated additional revenue billed pursuant thereto. Report amount of unbilled revenue as of end of year for each applicable revenue account subheading.
Line No.	Number and Title of Rate Schedule (a)	MWh Sold (b)	Revenue (c)	Average Number of Customers (d)	KWh of Sales Per Customer (e)	Revenue Per KWh Sold (f)
41	TOTAL Billed - All Accounts	8,340,524	984,791,856	452,097	18,449	0.1181
42	TOTAL Unbilled Rev. (See Instr. 6) - All Accounts	44,011	2,297,000			0.0522
43	TOTAL - All Accounts	8,384,535	987,088,856	(a) 452,097	18,546

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

FOOTNOTE DATA

(a) Concept: AverageNumberOfCustomersPerMonthSalesOfElectricityByRateSchedulesIncludingUnbilledRevenue

There were less than 1,256 duplicate customers for all rates schedules combined in 2022.

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

SALES FOR RESALE (Account 447)
Report all sales for resale (i.e., sales to purchasers other than ultimate consumers) transacted on a settlement basis other than power exchanges during the year. Do not report exchanges of electricity ( i.e., transactions involving a balancing of debits and credits for energy, capacity, etc.) and any settlements for imbalanced exchanges on this schedule. Power exchanges must be reported on the Purchased Power schedule (Page 326). Enter the name of the purchaser in column (a). Do note abbreviate or truncate the name or use acronyms. Explain in a footnote any ownership interest or affiliation the respondent has with the purchaser. In column (b), enter a Statistical Classification Code based on the original contractual terms and conditions of the service as follows: RQ - for requirements service. Requirements service is service which the supplier plans to provide on an ongoing basis (i.e., the supplier includes projected load for this service in its system resource planning). In addition, the reliability of requirements service must be the same as, or second only to, the supplier's service to its own ultimate consumers. LF - for tong-term service. "Long-term" means five years or Longer and "firm" means that service cannot be interrupted for economic reasons and is intended to remain reliable even under adverse conditions (e.g., the supplier must attempt to buy emergency energy from third parties to maintain deliveries of LF service). This category should not be used for Long-term firm service which meets the definition of RQ service. For all transactions identified as LF, provide in a footnote the termination date of the contract defined as the earliest date that either buyer or setter can unilaterally get out of the contract. IF - for intermediate-term firm service. The same as LF service except that "intermediate-term" means longer than one year but Less than five years. SF - for short-term firm service. Use this category for all firm services where the duration of each period of commitment for service is one year or less. LU - for Long-term service from a designated generating unit. "Long-term" means five years or Longer. The availability and reliability of service, aside from transmission constraints, must match the availability and reliability of designated unit. IU - for intermediate-term service from a designated generating unit. The same as LU service except that "intermediate-term" means Longer than one year but Less than five years. OS - for other service. use this category only for those services which cannot be placed in the above-defined categories, such as all non-firm service regardless of the Length of the contract and service from designated units of Less than one year. Describe the nature of the service in a footnote. AD - for Out-of-period adjustment. Use this code for any accounting adjustments or "true-ups" for service provided in prior reporting years. Provide an explanation in a footnote for each adjustment. Group requirements RQ sales together and report them starting at line number one. After listing all RQ sales, enter "Subtotal - RQ" in column (a). The remaining sales may then be listed in any order. Enter "Subtotal-Non-RQ" in column (a) after this Listing. Enter "Total'' in column (a) as the Last Line of the schedule. Report subtotals and total for columns (g) through (k). In Column (c), identify the FERC Rate Schedule or Tariff Number. On separate Lines, List all FERC rate schedules or tariffs under which service, as identified in column (b), is provided. For requirements RQ sales and any type of-service involving demand charges imposed on a monthly (or Longer) basis, enter the average monthly billing demand in column (d), the average monthly non-coincident peak (NCP) demand in column (e), and the average monthly coincident peak (CP) demand in column (f). For all other types of service, enter NA in columns (d), (e) and (f). Monthly NCP demand is the maximum metered hourly (60-minute integration) demand in a month. Monthly CP demand is the metered demand during the hour (60-minute integration) in which the supplier's system reaches its monthly peak. Demand reported in columns (e) and (f) must be in megawatts. Footnote any demand not stated on a megawatt basis and explain. Report in column (g) the megawatt hours shown on bills rendered to the purchaser. Report demand charges in column (h), energy charges in column (i), and the total of any other types of charges, including out-of-period adjustments, in column (j). Explain in a footnote all components of the amount shown in column (j). Report in column (k) the total charge shown on bills rendered to the purchaser. The data in column (g) through (k) must be subtotaled based on the RQ/Non-RQ grouping (see instruction 4), and then totaled on the Last -line of the schedule. The "Subtotal - RQ" amount in column (g) must be reported as Requirements Sales For Resale on Page 401, line 23. The "Subtotal - Non-RQ" amount in column (g) must be reported as Non-Requirements Sales For Resale on Page 401,line 24. Footnote entries as required and provide explanations following all required data.
					ACTUAL DEMAND (MW)			REVENUE
Line No.	Name of Company or Public Authority (Footnote Affiliations) (a)	Statistical Classification (b)	FERC Rate Schedule or Tariff Number (c)	Average Monthly Billing Demand (MW) (d)	Average Monthly NCP Demand (e)	Average Monthly CP Demand (f)	Megawatt Hours Sold (g)	Demand Charges ($) (h)	Energy Charges ($) (i)	Other Charges ($) (j)	Total ($) (h+i+j) (k)
1	Dynasty Power Inc.	(a) OS	MBR				61,981		13,245,390		13,245,390
2	Public Service Co. of NM	SF	MBR				12,610		1,097,383		1,097,383
3	Rio Grande Electric Cooperative	RQ	(i) 18	9.44	11.28	9.44	65,364	2,612,494	3,043,735	(l) 200,726	5,455,503
4	Tucson Electric Power	SF	MBR				6,280		482,683		482,683
5	Dynasty Power Inc.	SF	MBR				24,190		3,272,218		3,272,218
6	Public Service Co. of NM	(b) OS	MBR				313,997		32,184,693		32,184,693
7	Rio Grande Electric Cooperative	(c) AD	18				0	12,718			12,718
8	UNS Electric Inc.	SF	MBR				4,125		402,637		402,637
9	Arizona Electric Power Cooperative	SF	(j) MBR				3,806		410,907		410,907
10	Arizona Electric Power Cooperative	SF	(k) SRSG				200		12,110		12,110
11	EDF Trading North America, LLC	SF	MBR				4,642		413,884		413,884
12	Quintessence, LLC	SF	MBR				11,076		898,050		898,050
13	Arizona Public Service Company	SF	MBR				400		13,600		13,600
14	Arizona Public Service Company	SF	SRSG				76		3,678		3,678
15	Freeport-McMoRan Copper & Gold Energy Services, LLC	LU	MBR				975,981		1,435,000		1,435,000
16	Rainbow Energy Marketing Corporation	SF	MBR				10,637		1,223,290		1,223,290
17	Avangrid Renewables, LLC	SF	MBR				1,200		81,800		81,800
18	DEAA	SF	SRSG							(m) 108	108
19	Guzman Energy Partners LLC	SF	MBR				107		11,555		11,555
20	Salt River Project Agricultural Improvement and Power District	SF	MBR				8,040		349,800		349,800
21	BP Energy Company	SF	MBR				9,970		3,097,700		3,097,700
22	Farmington	SF	SRSG				34		1,985	(n) 9	1,994
23	Idaho Power Company	SF	MBR				6,000		353,928		353,928
24	Shell Energy North America (US), L.P.	(d) OS	MBR				400		16,080		16,080
25	BP Energy Company	(e) OS	MBR				40		3,520		3,520
26	Imperial Irrigation District	SF	MBR				25,360		7,450,483		7,450,483
27	Mesquite Power, LLC	SF	SRSG							(o) 8	8
28	Shell Energy North America (US), L.P.	SF	MBR				96,798		12,543,889		12,543,889
29	Brookfield Renewable Trading and Marketing LP	SF	MBR				196,150		19,120,743		19,120,743
30	Macquarie Energy LLC	SF	MBR				123,694		6,984,893		6,984,893
31	Public Service Company of New Mexico	SF	SRSG				666		31,618		31,618
32	Southern Calif. Edison Co.	SF	MBR				10,400		1,820,268		1,820,268
33	Brookfield Renewable Trading and Marketing LP	(f) AD	MBR				0		1,800		1,800
34	Mercuria Energy America, LLC	SF	MBR				45,471		5,538,687		5,538,687
35	Tenaska Power Services Co.	(g) OS	MBR				109,196		9,180,142		9,180,142
36	Tri-State G & T Association, Inc.	SF	SRSG				231		11,227		11,227
37	Citigroup Energy Inc.	SF	MBR				25,280		3,297,046		3,297,046
38	Morgan Stanley Capital Group, Inc.	SF	MBR				55,515		5,783,946		5,783,946
39	Tenaska Power Services Co.	SF	MBR				1,093,560		106,066,948		106,066,948
40	Tucson Electric Power Company	SF	SRSG				428		19,393		19,393
41	City of Burbank	SF	MBR				400		14,200		14,200
42	NextEra Energy Marketing, LLC	SF	MBR				1,160		135,520		135,520
43	Tenaska Power Services Co.	(h) AD	MBR				97		2,431		2,431
44	ConocoPhillips Company	SF	MBR				5,101		569,614		569,614
45	PacifiCorp	SF	MBR				38,465		3,779,610		3,779,610
46	The Energy Authority, Inc.	SF	MBR				1,600		97,600		97,600
47	Constellation Energy Generation, LLC	SF	MBR				22,705		2,009,854		2,009,854
48	Powerex Corp	SF	MBR				7,751		74,230		74,230
49	TransAlta Energy Marketing (US), Inc.	SF	MBR				76,999		7,505,523		7,505,523
50	Direct Energy Business Marketing, LLC	SF	MBR				960		48,464		48,464
51	Public Service Company of Colorado	SF	MBR				9,000		710,134		710,134
52	Tri-State Generation and Transmission Assoc., Inc.	SF	MBR				7,478		701,042		701,042
15	Subtotal - RQ						65,364	2,612,494	3,043,735	200,726	5,455,503
16	Subtotal-Non-RQ						(p) 3,410,257	12,718	252,511,196	125	252,524,039
17	Total						(q) 3,475,621	2,625,212	255,554,931	200,601	257,979,542

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

FOOTNOTE DATA

(a) Concept: StatisticalClassificationCode

Contingent energy sale.

(b) Concept: StatisticalClassificationCode

Contingent energy sale.

(c) Concept: StatisticalClassificationCode

Prior year adjustment.

(d) Concept: StatisticalClassificationCode

Contingent energy sale.

(e) Concept: StatisticalClassificationCode

Contingent energy sale.

(f) Concept: StatisticalClassificationCode

Prior year adjustment.

(g) Concept: StatisticalClassificationCode

Contingent energy sale.

(h) Concept: StatisticalClassificationCode

Prior year adjustment.

(i) Concept: RateScheduleTariffNumber

Contract effective April 1, 2008.

(j) Concept: RateScheduleTariffNumber

MBR = Market-Based Rate Tariff.

(k) Concept: RateScheduleTariffNumber

SRSG = Southwest Reserve Sharing Group Participation Agreement.

(l) Concept: OtherChargesRevenueSalesForResale

Represents Rio Grande Electric Cooperative ("RGEC") fuel adjustment clause designed to recover all eligible fuel costs allocable to RGEC.

(m) Concept: OtherChargesRevenueSalesForResale

Other Charges are for SRSG penalty received.

(n) Concept: OtherChargesRevenueSalesForResale

Other Charges are for SRSG penalty received.

(o) Concept: OtherChargesRevenueSalesForResale

Other Charges are for SRSG penalty received.

(p) Concept: MegawattHoursSoldNonRequirementsSales

Includes 975,981 MWhs related to purchases to Freeport-McMoRan related to EPE's Power Purchase and Sales Agreement with Freeport-McMoRan dated December 16, 2005.

(q) Concept: MegawattHoursSoldSalesForResale

Includes 975,891 MWhs related to the Company's Power Purchase and Sales Agreement with Freeport-McMoRan dated December 16, 2005.

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

ELECTRIC OPERATION AND MAINTENANCE EXPENSES
If the amount for previous year is not derived from previously reported figures, explain in footnote.
Line No.	Account (a)	Amount for Current Year (b)	Amount for Previous Year (c) (c)
1	PowerProductionExpensesAbstract 1. POWER PRODUCTION EXPENSES
2	SteamPowerGenerationAbstract A. Steam Power Generation
3	SteamPowerGenerationOperationAbstract Operation
4	OperationSupervisionAndEngineeringSteamPowerGeneration (500) Operation Supervision and Engineering	2,133,214	2,310,120
5	FuelSteamPowerGeneration (501) Fuel	228,370,076	157,185,039
6	SteamExpensesSteamPowerGeneration (502) Steam Expenses	3,689,972	3,449,199
7	SteamFromOtherSources (503) Steam from Other Sources
8	SteamTransferredCredit (Less) (504) Steam Transferred-Cr.
9	ElectricExpensesSteamPowerGeneration (505) Electric Expenses	4,551,457	4,643,120
10	MiscellaneousSteamPowerExpenses (506) Miscellaneous Steam Power Expenses	3,832,838	3,055,925
11	RentsSteamPowerGeneration (507) Rents	667,863	797,808
12	Allowances (509) Allowances	3,349,889	95,961
13	SteamPowerGenerationOperationsExpense TOTAL Operation (Enter Total of Lines 4 thru 12)	246,595,309	171,537,172
14	SteamPowerGenerationMaintenanceAbstract Maintenance
15	MaintenanceSupervisionAndEngineeringSteamPowerGeneration (510) Maintenance Supervision and Engineering	2,128,554	2,307,482
16	MaintenanceOfStructuresSteamPowerGeneration (511) Maintenance of Structures	1,469,158	1,357,901
17	MaintenanceOfBoilerPlantSteamPowerGeneration (512) Maintenance of Boiler Plant	8,887,062	11,275,947
18	MaintenanceOfElectricPlantSteamPowerGeneration (513) Maintenance of Electric Plant	9,836,300	15,794,697
19	MaintenanceOfMiscellaneousSteamPlant (514) Maintenance of Miscellaneous Steam Plant	3,263,705	4,073,371
20	SteamPowerGenerationMaintenanceExpense TOTAL Maintenance (Enter Total of Lines 15 thru 19)	25,584,779	34,809,398
21	PowerProductionExpensesSteamPower TOTAL Power Production Expenses-Steam Power (Enter Total of Lines 13 & 20)	272,180,088	206,346,570
22	NuclearPowerGenerationAbstract B. Nuclear Power Generation
23	NuclearPowerGenerationOperationAbstract Operation
24	OperationSupervisionAndEngineeringNuclearPowerGeneration (517) Operation Supervision and Engineering	10,821,837	11,008,515
25	NuclearFuelExpense (518) Fuel	(a) 36,883,557	(b) 38,902,940
26	CoolantsAndWater (519) Coolants and Water	9,158,241	8,005,646
27	SteamExpensesNuclearPowerGeneration (520) Steam Expenses	4,227,500	4,657,091
28	SteamFromOtherSourcesNuclearPowerGeneration (521) Steam from Other Sources
29	SteamTransferredCreditNuclearPowerGeneration (Less) (522) Steam Transferred-Cr.
30	ElectricExpensesNuclearPowerGeneration (523) Electric Expenses	5,757,510	5,756,991
31	MiscellaneousNuclearPowerExpenses (524) Miscellaneous Nuclear Power Expenses	35,638,023	38,024,837
32	RentsNuclearPowerGeneration (525) Rents
33	NuclearPowerGenerationOperationsExpense TOTAL Operation (Enter Total of lines 24 thru 32)	102,486,668	106,356,020
34	NuclearPowerGenerationMaintenanceAbstract Maintenance
35	MaintenanceSupervisionAndEngineeringNuclearPowerGeneration (528) Maintenance Supervision and Engineering	3,828,424	3,103,678
36	MaintenanceOfStructuresNuclearPowerGeneration (529) Maintenance of Structures	1,456,560	1,337,707
37	MaintenanceOfReactorPlantEquipmentNuclearPowerGeneration (530) Maintenance of Reactor Plant Equipment	6,243,788	6,010,699
38	MaintenanceOfElectricPlantNuclearPowerGeneration (531) Maintenance of Electric Plant	7,039,289	6,292,470
39	MaintenanceOfMiscellaneousNuclearPlant (532) Maintenance of Miscellaneous Nuclear Plant	1,586,864	2,045,369
40	NuclearPowerGenerationMaintenanceExpense TOTAL Maintenance (Enter Total of lines 35 thru 39)	20,154,925	18,789,923
41	PowerProductionExpensesNuclearPower TOTAL Power Production Expenses-Nuclear. Power (Enter Total of lines 33 & 40)	122,641,593	125,145,943
42	HydraulicPowerGenerationAbstract C. Hydraulic Power Generation
43	HydraulicPowerGenerationOperationAbstract Operation
44	OperationSupervisionAndEngineeringHydraulicPowerGeneration (535) Operation Supervision and Engineering
45	WaterForPower (536) Water for Power
46	HydraulicExpenses (537) Hydraulic Expenses
47	ElectricExpensesHydraulicPowerGeneration (538) Electric Expenses
48	MiscellaneousHydraulicPowerGenerationExpenses (539) Miscellaneous Hydraulic Power Generation Expenses
49	RentsHydraulicPowerGeneration (540) Rents
50	HydraulicPowerGenerationOperationsExpense TOTAL Operation (Enter Total of Lines 44 thru 49)
51	HydraulicPowerGenerationContinuedAbstract C. Hydraulic Power Generation (Continued)
52	HydraulicPowerGenerationMaintenanceAbstract Maintenance
53	MaintenanceSupervisionAndEngineeringHydraulicPowerGeneration (541) Mainentance Supervision and Engineering
54	MaintenanceOfStructuresHydraulicPowerGeneration (542) Maintenance of Structures
55	MaintenanceOfReservoirsDamsAndWaterways (543) Maintenance of Reservoirs, Dams, and Waterways
56	MaintenanceOfElectricPlantHydraulicPowerGeneration (544) Maintenance of Electric Plant
57	MaintenanceOfMiscellaneousHydraulicPlant (545) Maintenance of Miscellaneous Hydraulic Plant
58	HydraulicPowerGenerationMaintenanceExpense TOTAL Maintenance (Enter Total of lines 53 thru 57)
59	PowerProductionExpensesHydraulicPower TOTAL Power Production Expenses-Hydraulic Power (Total of Lines 50 & 58)
60	OtherPowerGenerationAbstract D. Other Power Generation
61	OtherPowerGenerationOperationAbstract Operation
62	OperationSupervisionAndEngineeringOtherPowerGeneration (546) Operation Supervision and Engineering	2,138,304	1,853,080
63	Fuel (547) Fuel	66,143,763	37,985,764
64	GenerationExpenses (548) Generation Expenses	882,406	846,635
64.1	OperationOfEnergyStorageEquipment (548.1) Operation of Energy Storage Equipment
65	MiscellaneousOtherPowerGenerationExpenses (549) Miscellaneous Other Power Generation Expenses	207,980	326,052
66	RentsOtherPowerGeneration (550) Rents	88,402	144,312
67	OtherPowerGenerationOperationsExpense TOTAL Operation (Enter Total of Lines 62 thru 67)	69,460,855	41,155,843
68	OtherPowerGenerationMaintenanceAbstract Maintenance
69	MaintenanceSupervisionAndEngineeringOtherPowerGeneration (551) Maintenance Supervision and Engineering	305,211	219,722
70	MaintenanceOfStructures (552) Maintenance of Structures	401,569	361,069
71	MaintenanceOfGeneratingAndElectricPlant (553) Maintenance of Generating and Electric Plant	5,055,444	5,256,257
71.1	MaintenanceOfEnergyStorageEquipmentOtherPowerGeneration (553.1) Maintenance of Energy Storage Equipment
72	MaintenanceOfMiscellaneousOtherPowerGenerationPlant (554) Maintenance of Miscellaneous Other Power Generation Plant	232,852	821,816
73	OtherPowerGenerationMaintenanceExpense TOTAL Maintenance (Enter Total of Lines 69 thru 72)	5,995,076	6,658,864
74	PowerProductionExpensesOtherPower TOTAL Power Production Expenses-Other Power (Enter Total of Lines 67 & 73)	75,455,931	47,814,707
75	OtherPowerSuplyExpensesAbstract E. Other Power Supply Expenses
76	PurchasedPower (555) Purchased Power	176,323,958	83,978,706
76.1	PowerPurchasedForStorageOperations (555.1) Power Purchased for Storage Operations	0
77	SystemControlAndLoadDispatchingElectric (556) System Control and Load Dispatching	993,336	964,364
78	OtherExpensesOtherPowerSupplyExpenses (557) Other Expenses	575,500
79	OtherPowerSupplyExpense TOTAL Other Power Supply Exp (Enter Total of Lines 76 thru 78)	177,892,794	84,943,070
80	PowerProductionExpenses TOTAL Power Production Expenses (Total of Lines 21, 41, 59, 74 & 79)	648,170,406	464,250,290
81	TransmissionExpensesAbstract 2. TRANSMISSION EXPENSES
82	TransmissionExpensesOperationAbstract Operation
83	OperationSupervisionAndEngineeringElectricTransmissionExpenses (560) Operation Supervision and Engineering	757,968	1,442,047
85	LoadDispatchReliability (561.1) Load Dispatch-Reliability	116,233	128,542
86	LoadDispatchMonitorAndOperateTransmissionSystem (561.2) Load Dispatch-Monitor and Operate Transmission System	1,084,862	1,009,069
87	LoadDispatchTransmissionServiceAndScheduling (561.3) Load Dispatch-Transmission Service and Scheduling	1,161,743	960,669
88	SchedulingSystemControlAndDispatchServices (561.4) Scheduling, System Control and Dispatch Services	824,112	717,242
89	ReliabilityPlanningAndStandardsDevelopment (561.5) Reliability, Planning and Standards Development	333,815	592,470
90	TransmissionServiceStudies (561.6) Transmission Service Studies
91	GenerationInterconnectionStudies (561.7) Generation Interconnection Studies
92	ReliabilityPlanningAndStandardsDevelopmentServices (561.8) Reliability, Planning and Standards Development Services
93	StationExpensesTransmissionExpense (562) Station Expenses	142,790	163,053
93.1	OperationOfEnergyStorageEquipmentTransmissionExpense (562.1) Operation of Energy Storage Equipment
94	OverheadLineExpense (563) Overhead Lines Expenses	617,139	589,625
95	UndergroundLineExpensesTransmissionExpense (564) Underground Lines Expenses
96	TransmissionOfElectricityByOthers (565) Transmission of Electricity by Others	7,609,684	8,023,125
97	MiscellaneousTransmissionExpenses (566) Miscellaneous Transmission Expenses	10,327,841	9,117,178
98	RentsTransmissionElectricExpense (567) Rents	375,393	414,568
99	TransmissionOperationExpense TOTAL Operation (Enter Total of Lines 83 thru 98)	23,351,580	23,157,588
100	TransmissionMaintenanceAbstract Maintenance
101	MaintenanceSupervisionAndEngineeringElectricTransmissionExpenses (568) Maintenance Supervision and Engineering	10,770	13,360
102	MaintenanceOfStructuresTransmissionExpense (569) Maintenance of Structures	8,032	2,393
103	MaintenanceOfComputerHardwareTransmission (569.1) Maintenance of Computer Hardware
104	MaintenanceOfComputerSoftwareTransmission (569.2) Maintenance of Computer Software
105	MaintenanceOfCommunicationEquipmentElectricTransmission (569.3) Maintenance of Communication Equipment
106	MaintenanceOfMiscellaneousRegionalTransmissionPlant (569.4) Maintenance of Miscellaneous Regional Transmission Plant
107	MaintenanceOfStationEquipmentTransmission (570) Maintenance of Station Equipment	311,471	376,013
107.1	MaintenanceOfEnergyStorageEquipmentTransmission (570.1) Maintenance of Energy Storage Equipment
108	MaintenanceOfOverheadLinesTransmission (571) Maintenance of Overhead Lines	878,890	1,355,706
109	MaintenanceOfUndergroundLinesTransmission (572) Maintenance of Underground Lines
110	MaintenanceOfMiscellaneousTransmissionPlant (573) Maintenance of Miscellaneous Transmission Plant	167,248	181,301
111	TransmissionMaintenanceExpenseElectric TOTAL Maintenance (Total of Lines 101 thru 110)	1,376,411	1,928,773
112	TransmissionExpenses TOTAL Transmission Expenses (Total of Lines 99 and 111)	24,727,991	25,086,361
113	RegionalMarketExpensesAbstract 3. REGIONAL MARKET EXPENSES
114	RegionalMarketExpensesOperationAbstract Operation
115	OperationSupervision (575.1) Operation Supervision
116	DayAheadAndRealTimeMarketAdministration (575.2) Day-Ahead and Real-Time Market Facilitation
117	TransmissionRightsMarketAdministration (575.3) Transmission Rights Market Facilitation
118	CapacityMarketAdministration (575.4) Capacity Market Facilitation
119	AncillaryServicesMarketAdministration (575.5) Ancillary Services Market Facilitation
120	MarketMonitoringAndCompliance (575.6) Market Monitoring and Compliance
121	MarketFacilitationMonitoringAndComplianceServices (575.7) Market Facilitation, Monitoring and Compliance Services
122	RentsRegionalMarketExpenses (575.8) Rents
123	RegionalMarketOperationExpense Total Operation (Lines 115 thru 122)
124	RegionalMarketExpensesMaintenanceAbstract Maintenance
125	MaintenanceOfStructuresAndImprovementsRegionalMarketExpenses (576.1) Maintenance of Structures and Improvements
126	MaintenanceOfComputerHardware (576.2) Maintenance of Computer Hardware
127	MaintenanceOfComputerSoftware (576.3) Maintenance of Computer Software
128	MaintenanceOfCommunicationEquipmentRegionalMarketExpenses (576.4) Maintenance of Communication Equipment
129	MaintenanceOfMiscellaneousMarketOperationPlant (576.5) Maintenance of Miscellaneous Market Operation Plant
130	RegionalMarketMaintenanceExpense Total Maintenance (Lines 125 thru 129)
131	RegionalMarketExpenses TOTAL Regional Transmission and Market Operation Expenses (Enter Total of Lines 123 and 130)
132	DistributionExpensesAbstract 4. DISTRIBUTION EXPENSES
133	DistributionExpensesOperationAbstract Operation
134	OperationSupervisionAndEngineeringDistributionExpense (580) Operation Supervision and Engineering	1,060,483	981,209
135	LoadDispatching (581) Load Dispatching
136	StationExpensesDistribution (582) Station Expenses	773,847	1,160,369
137	OverheadLineExpenses (583) Overhead Line Expenses	657,857	744,711
138	UndergroundLineExpenses (584) Underground Line Expenses	1,002,678	775,119
138.1	OperationOfEnergyStorageEquipmentDistribution (584.1) Operation of Energy Storage Equipment
139	StreetLightingAndSignalSystemExpenses (585) Street Lighting and Signal System Expenses	3,136	224
140	MeterExpenses (586) Meter Expenses	2,096,820	2,128,854
141	CustomerInstallationsExpenses (587) Customer Installations Expenses	733,637	625,418
142	MiscellaneousDistributionExpenses (588) Miscellaneous Expenses	10,222,641	9,649,064
143	RentsDistributionExpense (589) Rents	354,734	338,795
144	DistributionOperationExpensesElectric TOTAL Operation (Enter Total of Lines 134 thru 143)	16,905,833	16,403,763
145	DistributionExpensesMaintenanceAbstract Maintenance
146	MaintenanceSupervisionAndEngineering (590) Maintenance Supervision and Engineering	14,249	58,303
147	MaintenanceOfStructuresDistributionExpense (591) Maintenance of Structures	81	7,203
148	MaintenanceOfStationEquipment (592) Maintenance of Station Equipment	1,687,362	2,028,776
148.1	MaintenanceOfEnergyStorageEquipment (592.2) Maintenance of Energy Storage Equipment
149	MaintenanceOfOverheadLines (593) Maintenance of Overhead Lines	7,134,035	6,812,627
150	MaintenanceOfUndergroundLines (594) Maintenance of Underground Lines	922,089	1,078,981
151	MaintenanceOfLineTransformers (595) Maintenance of Line Transformers	2,730	2,350
152	MaintenanceOfStreetLightingAndSignalSystems (596) Maintenance of Street Lighting and Signal Systems	317,537	272,210
153	MaintenanceOfMeters (597) Maintenance of Meters	291,251	364,851
154	MaintenanceOfMiscellaneousDistributionPlant (598) Maintenance of Miscellaneous Distribution Plant	464,070	648,703
155	DistributionMaintenanceExpenseElectric TOTAL Maintenance (Total of Lines 146 thru 154)	10,833,404	11,274,004
156	DistributionExpenses TOTAL Distribution Expenses (Total of Lines 144 and 155)	27,739,237	27,677,767
157	CustomerAccountsExpensesAbstract 5. CUSTOMER ACCOUNTS EXPENSES
158	CustomerAccountsExpensesOperationsAbstract Operation
159	SupervisionCustomerAccountExpenses (901) Supervision
160	MeterReadingExpenses (902) Meter Reading Expenses	2,523,622	2,521,457
161	CustomerRecordsAndCollectionExpenses (903) Customer Records and Collection Expenses	13,810,514	14,152,399
162	UncollectibleAccounts (904) Uncollectible Accounts	2,804,219	4,565,958
163	MiscellaneousCustomerAccountsExpenses (905) Miscellaneous Customer Accounts Expenses	236,671	193,079
164	CustomerAccountExpenses TOTAL Customer Accounts Expenses (Enter Total of Lines 159 thru 163)	19,375,026	21,432,893
165	CustomerServiceAndInformationalExpensesAbstract 6. CUSTOMER SERVICE AND INFORMATIONAL EXPENSES
166	CustomerServiceAndInformationalExpensesOperationAbstract Operation
167	SupervisionCustomerServiceAndInformationExpenses (907) Supervision
168	CustomerAssistanceExpenses (908) Customer Assistance Expenses
169	InformationalAndInstructionalAdvertisingExpenses (909) Informational and Instructional Expenses	9,979	152,811
170	MiscellaneousCustomerServiceAndInformationalExpenses (910) Miscellaneous Customer Service and Informational Expenses
171	CustomerServiceAndInformationExpenses TOTAL Customer Service and Information Expenses (Total Lines 167 thru 170)	9,979	152,811
172	SalesExpenseAbstract 7. SALES EXPENSES
173	SalesExpenseOperationAbstract Operation
174	SupervisionSalesExpense (911) Supervision
175	DemonstratingAndSellingExpenses (912) Demonstrating and Selling Expenses
176	AdvertisingExpenses (913) Advertising Expenses
177	MiscellaneousSalesExpenses (916) Miscellaneous Sales Expenses
178	SalesExpenses TOTAL Sales Expenses (Enter Total of Lines 174 thru 177)
179	AdministrativeAndGeneralExpensesAbstract 8. ADMINISTRATIVE AND GENERAL EXPENSES
180	AdministrativeAndGeneralExpensesOperationAbstract Operation
181	AdministrativeAndGeneralSalaries (920) Administrative and General Salaries	30,767,252	40,649,692
182	OfficeSuppliesAndExpenses (921) Office Supplies and Expenses	4,679,416	5,020,369
183	AdministrativeExpensesTransferredCredit (Less) (922) Administrative Expenses Transferred-Credit
184	OutsideServicesEmployed (923) Outside Services Employed	16,829,527	15,405,338
185	PropertyInsurance (924) Property Insurance	5,333,212	5,421,579
186	InjuriesAndDamages (925) Injuries and Damages	4,021,016	4,841,811
187	EmployeePensionsAndBenefits (926) Employee Pensions and Benefits	8,252,311	12,503,702
188	FranchiseRequirements (927) Franchise Requirements
189	RegulatoryCommissionExpenses (928) Regulatory Commission Expenses	9,938,055	11,731,084
190	DuplicateChargesCredit (929) (Less) Duplicate Charges-Cr.
191	GeneralAdvertisingExpenses (930.1) General Advertising Expenses	998,087	1,426,566
192	MiscellaneousGeneralExpenses (930.2) Miscellaneous General Expenses	2,940,557	3,181,499
193	RentsAdministrativeAndGeneralExpense (931) Rents	510,749	322,974
194	AdministrativeAndGeneralOperationExpense TOTAL Operation (Enter Total of Lines 181 thru 193)	84,270,182	100,504,614
195	AdministrativeAndGeneralExpensesMaintenanceAbstract Maintenance
196	MaintenanceOfGeneralPlant (935) Maintenance of General Plant	10,729,511	10,209,118
197	AdministrativeAndGeneralExpenses TOTAL Administrative & General Expenses (Total of Lines 194 and 196)	94,999,693	110,713,732
198	OperationsAndMaintenanceExpensesElectric TOTAL Electric Operation and Maintenance Expenses (Total of Lines 80, 112, 131, 156, 164, 171, 178, and 197)	815,022,332	649,313,854

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

FOOTNOTE DATA

(a) Concept: NuclearFuelExpense

Includes a U.S. Department of Energy ("DOE") refund of $1,854,480.

(b) Concept: NuclearFuelExpense

Includes a DOE refund of $888,720.

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

PURCHASED POWER (Account 555)
Report all power purchases made during the year. Also report exchanges of electricity (i.e., transactions involving a balancing of debits and credits for energy, capacity, etc.) and any settlements for imbalanced exchanges. Enter the name of the seller or other party in an exchange transaction in column (a). Do not abbreviate or truncate the name or use acronyms. Explain in a footnote any ownership interest or affiliation the respondent has with the seller. In column (b), enter a Statistical Classification Code based on the original contractual terms and conditions of the service as follows: RQ - for requirements service. Requirements service is service which the supplier plans to provide on an ongoing basis (i.e., the supplier includes projects load for this service in its system resource planning). In addition, the reliability of requirement service must be the same as, or second only to, the supplier's service to its own ultimate consumers. LF - for long-term firm service. "Long-term" means five years or longer and "firm" means that service cannot be interrupted for economic reasons and is intended to remain reliable even under adverse conditions (e.g., the supplier must attempt to buy emergency energy from third parties to maintain deliveries of LF service). This category should not be used for long-term firm service firm service which meets the definition of RQ service. For all transaction identified as LF, provide in a footnote the termination date of the contract defined as the earliest date that either buyer or seller can unilaterally get out of the contract. IF - for intermediate-term firm service. The same as LF service expect that "intermediate-term" means longer than one year but less than five years. SF - for short-term service. Use this category for all firm services, where the duration of each period of commitment for service is one year or less. LU - for long-term service from a designated generating unit. "Long-term" means five years or longer. The availability and reliability of service, aside from transmission constraints, must match the availability and reliability of the designated unit. IU - for intermediate-term service from a designated generating unit. The same as LU service expect that "intermediate-term" means longer than one year but less than five years. EX - For exchanges of electricity. Use this category for transactions involving a balancing of debits and credits for energy, capacity, etc. and any settlements for imbalanced exchanges. OS - for other service. Use this category only for those services which cannot be placed in the above-defined categories, such as all non-firm service regardless of the Length of the contract and service from designated units of Less than one year. Describe the nature of the service in a footnote for each adjustment. AD - for out-of-period adjustment. Use this code for any accounting adjustments or "true-ups" for service provided in prior reporting years. Provide an explanation in a footnote for each adjustment. In column (c), identify the FERC Rate Schedule Number or Tariff, or, for non-FERC jurisdictional sellers, include an appropriate designation for the contract. On separate lines, list all FERC rate schedules, tariffs or contract designations under which service, as identified in column (b), is provided. For requirements RQ purchases and any type of service involving demand charges imposed on a monnthly (or longer) basis, enter the monthly average billing demand in column (d), the average monthly non-coincident peak (NCP) demand in column (e), and the average monthly coincident peak (CP) demand in column (f). For all other types of service, enter NA in columns (d), (e) and (f). Monthly NCP demand is the maximum metered hourly (60-minute integration) demand in a month. Monthly CP demand is the metered demand during the hour (60-minute integration) in which the supplier's system reaches its monthly peak. Demand reported in columns (e) and (f) must be in megawatts. Footnote any demand not stated on a megawatt basis and explain. Report in column (g) the megawatthours shown on bills rendered to the respondent, excluding purchases for energy storage. Report in column (h) the megawatthours shown on bills rendered to the respondent for energy storage purchases. Report in columns (i) and (j) the megawatthours of power exchanges received and delivered, used as the basis for settlement. Do not report net exchange. Report demand charges in column (k), energy charges in column (l), and the total of any other types of charges, including out-of-period adjustments, in column (m). Explain in a footnote all components of the amount shown in column (m). Report in column (n) the total charge shown on bills received as settlement by the respondent. For power exchanges, report in column (n) the settlement amount for the net receipt of energy. If more energy was delivered than received, enter a negative amount. If the settlement amount (m) include credits or charges other than incremental generation expenses, or (2) excludes certain credits or charges covered by the agreement, provide an explanatory footnote. The data in columns (g) through (n) must be totaled on the last line of the schedule. The total amount in columns (g) and (h) must be reported as Purchases on Page 401, line 10. The total amount in column (i) must be reported as Exchange Received on Page 401, line 12. The total amount in column (j) must be reported as Exchange Delivered on Page 401, line 13. Footnote entries as required and provide explanations following all required data.
					Actual Demand (MW)				POWER EXCHANGES		COST/SETTLEMENT OF POWER
Line No.	NameOfCompanyOrPublicAuthorityProvidingPurchasedPower Name of Company or Public Authority (Footnote Affiliations) (a)	StatisticalClassificationCode Statistical Classification (b)	RateScheduleTariffNumber Ferc Rate Schedule or Tariff Number (c)	AverageMonthlyBillingDemand Average Monthly Billing Demand (MW) (d)	AverageMonthlyNonCoincidentPeakDemand Average Monthly NCP Demand (e)	AverageMonthlyCoincidentPeakDemand Average Monthly CP Demand (f)	MegawattHoursPurchasedOtherThanStorage MegaWatt Hours Purchased (Excluding for Energy Storage) (g)	MegawattHoursPurchasedForEnergyStorage MegaWatt Hours Purchased for Energy Storage (h)	EnergyReceivedThroughPowerExchanges MegaWatt Hours Received (i)	EnergyDeliveredThroughPowerExchanges MegaWatt Hours Delivered (j)	DemandChargesOfPurchasedPower Demand Charges ($) (k)	EnergyChargesOfPurchasedPower Energy Charges ($) (l)	OtherChargesOfPurchasedPower Other Charges ($) (m)	SettlementOfPower Total (k+l+m) of Settlement ($) (n)
1	Arizona Electric Power Cooperative	SF	(u) MBR				160					14,850		14,850
2	Four Peaks Energy Inc.	(a) LU	MBR				10,454					700,569		700,569
3	HGMA (New Harquahala Generating Company, LLC)	SF	SRSG										(ab) 242	242
4	Public Service Co. of NM	SF	MBR				686					50,375		50,375
5	Tenaska Power Services Co.	SF	MBR				1,026,807					92,762,661		92,762,661
6	Western Area Power Administration	OS	OATT						55
7	Arizona Public Service Company	SF	MBR				1,200					68,800		68,800
8	Freeport-McMoRan Copper & Gold Energy Services, LLC	LU	MBR				(aa) 975,981
9	Imperial Irrigation District	SF	SRSG										(ac) 280	280
10	Inadvertent								1,333	45,489
11	Quintessence, LLC	SF	MBR				8					224		224
12	The Energy Authority, Inc.	(b) AD	MBR				70					2,520		2,520
13	Black Hills Power LP	SF	MBR				400					12,800		12,800
14	Guzman Energy, LLC	(c) OS	MBR				14,658					2,640,556		2,640,556
15	Mesquite Power, LLC	SF	SRSG										(ad) 210	210
16	NM Net Mtr PP	OS	(v) 16				11,486						(ae) 800,076	800,076
17	Rainbow Energy Marketing Corporation	(d) OS	MBR				945					251,148		251,148
18	The Energy Authority, Inc.	SF	MBR				465					13,637		13,637
19	BP Energy Company	(e) AD	MBR				0					920		920
20	Guzman Energy Partners LLC	SF	MBR				1,760					103,472		103,472
21	NM Net Mtr RECs	OS	(w) 33										(af) 527,309	527,309
22	Public Service Company of New Mexico	SF	SRSG				114					7,770	(ag) 431	8,201
23	Rainbow Energy Marketing Corporation	SF	MBR				20,431					4,612,157		4,612,157
24	TransAlta Energy Marketing (US), Inc.	(f) AD	MBR				22					2,037		2,037
25	BP Energy Company	SF	MBR				125					6,250		6,250
26	Hatch Solar Energy Center 1, LLC	(g) LU	MBR				12,145					1,445,301		1,445,301
27	Salt River Project	SF	SRSG										(ah) 859	859
28	Salt River Project Agricultural Improvement and Power District	(h) OS	MBR				400					18,000		18,000
29	TX Non Firm PP	OS	(x) 48				21,629						(ai) 749,932	749,932
30	TransAlta Energy Marketing (US), Inc.	SF	MBR				13,957					1,896,197		1,896,197
31	Brookfield Renewable Trading and Marketing LP	SF	MBR				63,744					5,382,745		5,382,745
32	Imperial Irrigation District	SF	MBR				118					6,022		6,022
33	STAR (Griffith Energy, LLC)	SF	SRSG										(aj) 18	18
34	Salt River Project Agricultural Improvement and Power District	SF	MBR				780					75,600		75,600
35	TransCanada Energy Sales Ltd.	SF	MBR				3,000					209,200		209,200
36	Citigroup Energy Inc.	SF	MBR				14,251					2,324,689		2,324,689
37	Macho Springs Solar, LLC	(i) LU	MBR				132,481					7,670,666		7,670,666
38	Sempra Gas & Power Marketing, LLC	SF	MBR				350					43,000		43,000
39	Tri-State G & T Association, Inc.	SF	SRSG				33					10,903	(ak) 238	11,141
40	Tri-State Generation and Transmission Assoc., Inc.	(j) OS	MBR				1,200					149,480		149,480
41	ConocoPhillips Company	SF	MBR				1,445					322,550		322,550
42	Macquarie Energy LLC	SF	MBR				8,283					717,742		717,742
43	Shell Energy North America (US), L.P.	(k) AD	MBR				5					17,132		17,132
44	Tri-State Generation and Transmission Assoc., Inc.	SF	MBR				1,950					131,456		131,456
45	Tucson Electric Power Company	SF	SRSG				258					14,613	(al) 478	15,091
46	Constellation Energy Generation, LLC	SF	MBR				289					16,908		16,908
47	Mercuria Energy America, LLC	SF	MBR				45,449					5,443,206		5,443,206
48	Shell Energy North America (US), L.P.	SF	MBR				6,433					518,631		518,631
49	Tucson Electric Power	(l) OS	MBR				23,388					252,600		252,600
50	Western Area Power Administration	SF	SRSG										(am) 47	47
51	Arizona Electric Power Cooperative	OS	(y) OATT						1,328
52	Dynasty Power Inc.	(m) OS	MBR				62,666					12,953,932		12,953,932
53	Morgan Stanley Capital Group, Inc.	SF	MBR				26,893					4,873,741		4,873,741
54	Solar Roadrunner LLC	(n) LU	MBR				47,517					5,983,535		5,983,535
55	Tucson Electric Power	SF	MBR				24,179					3,117,465		3,117,465
56	Arizona Electric Power Cooperative	SF	(z) SRSG										(an) 288	288
57	Dynasty Power Inc.	SF	MBR				36,960					5,975,413		5,975,413
58	Newman Solar LLC	(o) LU	MBR				25,702					1,413,613		1,413,613
59	Public Service Company of New Mexico	OS	OATT						62,104
60	Southern Calif. Edison Company	SF	MBR				97					13,774		13,774
61	Arizona Public Service Company	SF	SRSG				71					2,349	(ao) 863	3,212
62	EDF Trading North America, LLC	(p) OS	MBR				1,644					101,109		101,109
63	PacifiCorp	SF	MBR				13,797					855,350		855,350
64	Salt River Project	OS	OATT							18,214
65	SunE EPE 1 LLC	(q) LU	MBR				25,604					2,664,137		2,664,137
66	DEAA (Griffith Energy, LLC)	SF	SRSG										(ap) 3	3
67	EDF Trading North America, LLC	SF	MBR				35,080					4,167,100		4,167,100
68	Powerex Corp.	SF	MBR				5,295					550,625		550,625
69	SunE EPE 2 LLC	(r) LU	MBR				29,144					3,056,889		3,056,889
70	Tri-State G & T Association, Inc.	OS	OATT						12,992
71	Evergy Kansas Central, Inc.	(s) OS	MBR				4,057					618,150		618,150
72	Farmington	SF	SRSG									275	(aq) 204	479
73	Public Service Company of Colorado	SF	MBR				200					17,200		17,200
74	Tenaska Power Services Co.	(t) AD	MBR				0					3,460		3,460
75	Tucson Electric Power Company	OS	OATT							18,277
15	TOTAL						(ar) 2,756,266	0	77,812	81,980		174,242,480	2,081,478	176,323,958

Name of Respondent:

El Paso Electric Company

This report is:

(1)

☑ An Original

(2)

☐ A Resubmission

Date of Report:

03/24/2023

Year/Period of Report

End of:

2022

/

Q4

FOOTNOTE DATA

(a) Concept: StatisticalClassificationCode

Interconnection Agreement and Contract for Power Service between EPE and Four Peaks Energy, Inc. Contract is an evergreen contract.

(b) Concept: StatisticalClassificationCode

Prior year adjustment.

(c) Concept: StatisticalClassificationCode

Contingent purchases.

(d) Concept: StatisticalClassificationCode

Contingent purchases.

(e) Concept: StatisticalClassificationCode

Prior year adjustment.

(f) Concept: StatisticalClassificationCode

Prior year adjustment.

(g) Concept: StatisticalClassificationCode

Renewable Purchase Power Agreement between Hatch Solar Energy Center 1, LLC and EPE effective August 31, 2010, and continues for twenty-five years following the date of commercial operation in 2011.

(h) Concept: StatisticalClassificationCode

Contingent purchases.

(i) Concept: StatisticalClassificationCode

Renewable Purchase Power Agreement between Macho Springs Solar, LLC and EPE effective October 25, 2012, and continues for twenty years following the date of commercial operation in 2014.

(j) Concept: StatisticalClassificationCode

Contingent purchases.

(k) Concept: StatisticalClassificationCode

Prior year adjustment.

(l) Concept: StatisticalClassificationCode

Contingent purchases.

(m) Concept: StatisticalClassificationCode

Contingent purchases.

(n) Concept: StatisticalClassificationCode

Renewable Purchase Power Agreement between Clearway Energy Group and EPE dated June 4, 2010, and continues for twenty years following the date of commercial operation in 2011.

(o) Concept: StatisticalClassificationCode

Renewable Purchase Power Agreement between PSEG El Paso Solar Energy Center and EPE effective September 5, 2013, and continues for thirty years following the date of commercial operation in 2014.

(p) Concept: StatisticalClassificationCode

Contingent purchases.

(q) Concept: StatisticalClassificationCode

Renewable Purchase Power Agreement between SunE1 EPE, LLC and EPE dated November 8, 2010, and continues for twenty-five years following the date of commercial operation in 2012.

(r) Concept: StatisticalClassificationCode

Renewable Purchase Power Agreement between SunE2 EPE, LLC and EPE dated November 8, 2010, and continues for twenty-five years following the date of commercial operation in 2012.

(s) Concept: StatisticalClassificationCode

Contingent and Non-Firm purchases.

(t) Concept: StatisticalClassificationCode

Prior year adjustment.

(u) Concept: RateScheduleTariffNumber

MBR = market-based rate

Seller sold power to EPE pursuant to the WSPP Agreement, an individually negotiated Edison Electric Institute Agreement, or an individually negotiated Purchased Power Agreement.

(v) Concept: RateScheduleTariffNumber

New Mexico Rate No. 16.

(w) Concept: RateScheduleTariffNumber

New Mexico Rate No. 33.

(x) Concept: RateScheduleTariffNumber

Texas Rate No. 48.

(y) Concept: RateScheduleTariffNumber

OATT = Open Access Transmission Tariff.

(z) Concept: RateScheduleTariffNumber

SRSG = Southwest Reserve Sharing Group Participation Agreement

(aa) Concept: MegawattHoursPurchasedOtherThanStorage

The 975,981 MWhs relate to purchases from Freeport-McMoRan Copper & Gold Energy Services, LLC ("Freeport") related to EPE's Power Purchase and Sales Agreement with Freeport dated December 16, 2005.

(ab) Concept: OtherChargesOfPurchasedPower