Excelerate Energy Annual Report 2021

Plain-text annual report

P.O. Box 982 El Paso, Texas 79960-0982 (915) 543-2057 April 28, 2021 Ms. Ana Treviño Commission Filing Clerk Public Utility Commission of Texas 1701 N. Congress Ave P.O. Box 13326 Austin, TX 78711 Re: Project No. 51672 – El Paso Electric Company 2021 Energy Efficiency Plan and Report Pursuant to 16 TAC § 25.181 and 25.183 Dear Ms. Treviño: On April 1, 2021, El Paso Electric Company (“EPE”) filed its 2020 Energy Efficiency Plan and Report (“EEPR”). EPE is hereby filing a revision to that report. The revision is based on three changes. First, the newly approved loss factors in Application of El Paso Electric Company to Reconcile Fuel Costs, Docket No 50058, Order (April 7, 2021). This changed the values in Tables 1, 4, and 7. Second, EPE made an adjustment to reduce proceeding costs for calendar year 2020, as shown in Table 10. Third, there was a change to the verified savings for 2020 that affected Tables 8, 14, and the tables in Appendix A. These changes are also reflected in the text of the document as applicable. At the end of this EEPR revision are the redlined pages indicating the specific changes made to the EEPR filed April 1, 2020. If there are any questions regarding this filing, please contact me at 915-543-4354. Sincerely, Curtis Hutcheson Manager-Regulatory Case Management 1El Paso Electric Company 2021 Energy Efficiency Plan and Report 16 Texas Administrative Code § 25.181 and § 25.183 April 1, 2021 (Errata April 26, 2021) Project No. 51672 2TABLE OF CONTENTS INTRODUCTION ................................................................................................................ 1 ENERGY EFFICIENCY PLAN AND REPORT ORGANIZATION ...................................... 2 EXECUTIVE SUMMARY ................................................................................................... 4 ENERGY EFFICIENCY PLAN ........................................................................................... 6 I. 2021 PROGRAMS ..................................................................................................... 6 2021 Program Portfolio .................................................................................................6 A. Existing Programs.........................................................................................................7 B. Research and Development .........................................................................................9 C. New Program(s) for 2021 and 2022 ..............................................................................9 D. Discontinued Program(s) for 2021 and 2022.................................................................9 E. F. General Implementation Process ..................................................................................9 G. Outreach Activities ...................................................................................................... 10 Existing Demand Side Management (DSM) Contracts or Obligations ......................... 11 H. II. CUSTOMER CLASSES ........................................................................................... 12 III. PROJECTED ENERGY EFFICIENCY SAVINGS AND GOALS ............................. 12 IV. PROGRAM BUDGETS ............................................................................................ 16 V. Historical Demand Goals and Energy Targets for Previous Five Years .............. 18 VI. Projected, Reported and Verified Demand and Energy Savings ....................... 19 VII. HISTORICAL PROGRAM EXPENDITURES ........................................................... 20 VIII. PROGRAM FUNDING AND EXPLANATION OF ADMINISTRATION COSTS FOR CALENDAR YEAR 2020 ................................................................................. 21 IX. PROGRAM RESULTS FOR MTPs .......................................................................... 23 A. Market Transformation Programs ............................................................................... 23 X. CURRENT ENERGY EFFICIENCY COST RECOVERY FACTOR (EECRF) .......... 24 XI. Revenue Collected through EECRF...................................................................... 25 XII. Over/Under Recovery of Energy Efficiency Program Costs ............................... 25 XIII. Underserved Counties ........................................................................................... 25 ACRONYMS .................................................................................................................... 26 GLOSSARY ..................................................................................................................... 26 APPENDIX A: REPORTED DEMAND AND ENERGY REDUCTION BY COUNTY...... A-1 El Paso Electric Company 2021 Energy Efficiency Plan and Report 3INTRODUCTION El Paso Electric Company (EPE) presents this Energy Efficiency Plan and Report (EEPR) to comply with 16 Tex. Admin. Code (TAC) § 25.181 and § 25.183, which are the sections of the Energy Efficiency Rule (EE Rule) implementing the Public Utility Regulatory Act (PURA) § 39.905. As mandated by this section of PURA, 16 TAC § 25.181(e)(1) states that each investor-owned electric utility must achieve the following minimum demand reduction goals through market-based Standard Offer Programs (SOPs), targeted Market Transformation Programs (MTPs), or utility self-delivered programs: § 25.181(e)(1) An electric utility shall administer a portfolio of energy efficiency programs to acquire, at a minimum, the following: (A) (B) (C) (D) Beginning with the 2013 program year, until the trigger described in subparagraph (B) of this paragraph is reached, the utility shall acquire a 30% reduction of its annual growth in demand of residential and commercial customers. If the demand reduction goal to be acquired by a utility under subparagraph (A) of this paragraph is equivalent to at least four-tenths of 1% of its summer weather-adjusted peak demand for the combined residential and commercial customers for the previous program year, the utility shall meet the energy efficiency goal described in subparagraph (C) of this paragraph for each subsequent program year. Once the trigger described in subparagraph (B) of this paragraph is reached, the utility shall acquire four-tenths of 1% of its summer weather-adjusted peak demand for the combined residential and commercial customers for the previous program year. Except as adjusted in accordance with subsection (u) of this section, a utility’s demand reduction goal in any year shall not be lower than its goal for the prior year, unless the commission establishes a goal for a utility pursuant to paragraph (2) of this subsection. The EE Rule includes specific requirements related to the implementation of SOPs, MTPs, and utility self-delivered programs that control the manner that utilities must administer their portfolio of energy efficiency programs in order to achieve their mandated annual demand reduction goals. EPE's plan is intended to enable it to meet its statutory goals through implementation of energy efficiency programs in a manner that complies with PURA § 39.905 and the EE Rule. This EEPR reports EPE’s achievements for 2020 and its projections for 2021 and 2022 as required by the EE Rule. The following section describes the information that is contained in each of the subsequent sections and appendix. El Paso Electric Company 1 2021 Energy Efficiency Plan and Report 4ENERGY EFFICIENCY PLAN AND REPORT ORGANIZATION This EEPR consists of the following information: Executive Summary • The Executive Summary highlights EPE's reported achievements for 2020 and EPE's plans for achieving its 2021 and 2022 projected energy efficiency savings. Energy Efficiency Plan • Section I describes EPE's program portfolio. It details how each program will be implemented, discusses related informational and outreach activities, and provides an explanation of any new or discontinued program(s). • Section II explains EPE's targeted customer classes, specifying the size of each class and the method for determining those class sizes. • Section III presents EPE's goal calculation and projected energy efficiency savings for the prescribed planning period by program for each customer class. • Section IV describes EPE's proposed energy efficiency budgets for 2021 and 2022 by program for each customer class. Energy Efficiency Report • Section V documents EPE's demand reduction goals for each of the previous five years (2016-2020) and the actual savings achieved for those years. • Section VI compares EPE's projected energy and demand savings to its reported savings by program for calendar years 2019 and 2020. • Section VII details EPE's incentive and administration expenditures for the previous five years (2016-2020) detailed by program for each customer class. • Section VIII compares EPE's actual and budgeted program costs for 2020 detailed by program for each customer class. It also provides an explanation of EPE’s administrative costs and any expenditure deviation of more than 10% from the anticipated program budget. • Section IX describes the results from EPE's MTPs. • Section X documents EPE's most recent Energy Efficiency Cost Recovery Factor (EECRF). • Section XI reflects EPE’s revenue collection through the 2020 EECRF. • Section XII details the over/under recovery of EPE’s energy efficiency program costs for 2020. • Section XIII reports the number of customers served and the savings relative to the three counties served by EPE in Texas. El Paso Electric Company 2 2021 Energy Efficiency Plan and Report 5Acronyms – A list of abbreviations for common terms used within this document. Appendix A – Reported kW and kWh savings by county for each program. El Paso Electric Company 3 2021 Energy Efficiency Plan and Report 6 EXECUTIVE SUMMARY The Energy Efficiency Plan portion of this EEPR details EPE's plan to meet the energy efficiency demand reduction goal for 2021, as established pursuant to 16 TAC § 25.181(e)(3). The Final Order of Docket No. 508061 issued on November 5, 2020, established the EECRF rates applicable to EPE for 2021. The order left in place the same demand reduction goal of 11.16 MW, which is what it has been since 2011 and is greater than four-tenths of one percent of EPE’s average weather-adjusted peak demand at meter. Since EPE has reached a demand reduction goal of greater than four-tenths of one percent of its summer weather-adjusted peak demand in accordance with 16 TAC § 25.181(e)(1)(C), EPE’s 2022 demand reduction goal should remain at 11.16 MW. The Final Order of Docket No. 50806 also established an energy efficiency program budget for 2021 of $4,685,552.2 The goals, budgets, and implementation plans that are included in this EEPR are influenced substantially by the requirements of the EE Rule and lessons learned regarding energy efficiency service providers and customer participation in the various energy efficiency programs. A summary of projected goals, savings and budgets is presented in Table 1. Table 1: Summary of 2021 & 2022 Projected Goals, Savings and Budgets3 Calendar Year Average Growth in Demand (MW at Meter) 2021 2022 38.2 58.5 Goal Metric: 30% of 5-year Average Growth in Demand (MW at Meter) 11.46 17.54 Goal Metric: .4% of 5-year Average Peak Demand (MW at Meter)* Demand Goal (MW) Energy Goal (MWh)** Projected MW Savings (at Meter) Projected MWh Savings (at Meter) Proposed Budget (000's)*** 5.22 5.45 11.16 11.16 19,552 19,552 16.691 19.827 23,479 26,882 $4,842 $5,286 * The 2022 Demand Goal of 0.4% of peak demand (5.45 MW) is calculated according to 16 TAC § 25.181(e)(3)(B) and is based on a 7.54% system demand line loss factor approved in Docket No. 50058; (1,474 MW Average Peak Demand at Source Net Opt-Outs x 0.004) x (1-0.0754 system demand line loss factor). However, under the EE Rule, a utility’s demand reduction goal shall not be less than the prior year’s goal, thus, the 2022 goal is 11.16 MW. ** Calculated using a 20% conservation load factor. *** Proposed budget includes the overall program budget, EM&V expenses, and EECRF proceeding expenses. In 2020, EPE achieved a demand reduction of 20,743 kW, which was 186% of the 11,160 kW demand reduction goal. This was accomplished through the implementation of one SOP and several MTPs. To reach the projected savings for 2021 and 2022, EPE proposes to offer the following programs: • Standard Offer Program o Commercial Load Management SOP • Market Transformation Programs o Small Commercial Solutions MTP o Large C&I Solutions MTP o Texas SCORE MTP o Residential Solutions MTP o LivingWise® MTP 1 Application of El Paso Electric Company to Adjust Its Energy Efficiency Cost Recovery Factor and Establish Revised Cost Cap, Docket No. 50806, Order (Nov. 5, 2020). 2 Id. at Ordering Paragraph No. 2. 3 Average Growth in Demand and Weather Adjusted Peak Demand are found in Table 4, Projected Demand and Energy Savings are found in Table 5, and Proposed Budgets are found in Table 6. El Paso Electric Company 4 2021 Energy Efficiency Plan and Report 7 o FutureWise® Pilot MTP (2022 Only) o Texas Appliance Recycling MTP o Residential Marketplace Pilot MTP o Residential Load Management MTP o Hard-to-Reach Solutions MTP MTPs are implemented by third-party implementers that design, market, and execute the programs. Depending on the program, the implementer may inspect and validate proposed projects, perform quality assurance and quality control, and verify savings. EPE contracts with CLEAResult Consulting, Inc. (CLEAResult) to implement EPE's Texas SCORE MTP and the four "Solutions" MTPs. EPE contracts with AM Conservation Group (previously Franklin Energy Services) to implement EPE's LivingWise® MTP. EPE will contract with AM Conservation Group to implement EPE’s FutureWise® Pilot MTP. EPE contracts with ARCA Recycling, Inc. (ARCA) to implement the Texas Appliance Recycling MTP. EPE contracts with Uplight, Inc. (Uplight) to implement the Residential Load Management MTP. EPE contracts with Simple Energy to implement the Residential Marketplace Pilot MTP. El Paso Electric Company 5 2021 Energy Efficiency Plan and Report 8 ENERGY EFFICIENCY PLAN I. 2021 PROGRAMS A. 2021 Program Portfolio EPE plans to continue the implementation of one SOP and nine MTPs in 2021. These programs have been structured to comply with the rules of the Public Utility Commission of Texas (PUCT) governing program design and evaluation. These programs target both broad market segments and specific market segments that offer significant opportunities for cost-effective savings. EPE anticipates that targeted outreach to a broad range of service providers and customers will be necessary to meet the demand reduction goals established by the PUCT. Table 2 below summarizes the programs and target markets: Table 2: 2021 Energy Efficiency Program Portfolios Program Target Market Application Small Commercial Solutions MTP Large C&I Solutions MTP Texas SCORE MTP Commercial Load Management SOP Small Commercial (<100kW) Large Commercial and Industrial (≥100kW) City, County Governments and Schools Commercial, Government and Schools Retrofit; New Construction Retrofit; New Construction Retrofit; New Construction Load Management Residential Solutions MTP Residential Retrofit; New Construction LivingWise® MTP Residential Educational; Retrofit Texas Appliance Recycling MTP Residential Appliance Recycling Residential Marketplace Pilot MTP Residential Rebate Residential Load Management MTP Residential Load Management Hard-to-Reach Solutions MTP Residential Hard-to-Reach Retrofit; New Construction The programs in Table 2 are described in further detail below. EPE maintains a website containing links to the program manuals, the requirements for project participation, and available electronic forms at www.epelectric.com. Programs with manuals can be found at the following website: www.epelectric.com/tx/business/program-manuals-and-guidelines. El Paso Electric Company 6 2021 Energy Efficiency Plan and Report 9 B. Existing Programs Small Commercial Solutions MTP The Small Commercial Solutions Program offers incentives to commercial customers with a peak demand of less than 100 kW at one facility or a total demand of less than 250 kW at multiple facilities operated by the same customer. The program pays a cash incentive of $400 per kW reduced to customers, generally through participating contractors for eligible measures that are installed in new or retrofit applications. This program also provides non-cash incentives that include technical assistance, education, and marketing materials. In addition to capturing demand and energy savings, the program’s implementer helps small business owners and contractors improve their ability to identify and evaluate energy efficiency improvements. The Small Commercial Solutions Program conducts community outreach activities and provides for collaboration with contractors, business owners, and other building professionals to promote energy efficiency awareness. EPE plans to continue this program in 2021 and 2022. Large Commercial & Industrial Solutions MTP The Large C&I Solutions Program offers incentives to commercial customers with a peak demand of 100 kW or greater at one facility or a total demand of at least 250 kW at multiple facilities operated by the same customer. The program pays a cash incentive of $240 per kW reduced to customers for eligible measures that are installed in new or retrofit applications. This program also provides non- cash incentives that include technical assistance, education, and marketing materials. In addition to capturing demand and energy savings, the program’s implementer helps large business owners and contractors improve their ability to identify and evaluate energy efficiency improvements and to understand how to leverage their energy savings to finance projects. The implementer also provides measurement and verification for projects, as necessary. The Large C&I Solutions MTP conducts community outreach activities and provides for collaboration with contractors, architectural and engineering firms, and other building professionals to promote energy efficiency awareness. EPE plans to continue this program in 2021 and 2022. Texas SCORE MTP The Texas SCORE Program offers incentives to schools and local government customers to identify and implement energy efficiency measures. The program pays a cash incentive of $240 per kW reduced to customers for eligible measures that are installed in new or retrofit applications. This program also provides non-cash incentives that include technical assistance, education, and marketing materials. In addition to capturing demand and energy savings, the program’s implementer helps participating customers improve their ability to identify and evaluate energy efficiency improvements. Facility Energy Benchmarking and Energy Master Planning Workshops are provided annually to selected customers. The implementer also provides measurement and verification for projects, as necessary. The Texas SCORE Program conducts community outreach activities and provides for collaboration with schools and local government customers to promote energy efficiency awareness. EPE plans to continue this program in 2021 and 2022. Commercial Load Management SOP The Commercial Load Management SOP allows participating customers to provide on-call, voluntary curtailment of electric consumption during peak demand periods in return for incentive payments. A commercial customer equipped with an EPE demand interval meter capable of curtailing a minimum of 100 kW that takes service at the distribution level is eligible to participate. EPE will notify its current participants of the 2021 Commercial Load Management SOP via email in April to inform them of the El Paso Electric Company 7 2021 Energy Efficiency Plan and Report 10 opening of the program. All applications are considered on a first-come, first-served basis and reviewed for eligibility. Demand savings and incentives are based on verified average demand savings that customers achieve due to EPE’s voluntary curtailment events. EPE plans to continue this program in 2021 and 2022. Residential Solutions MTP The Residential Solutions Program offers incentives to residential customers for installing eligible energy efficiency measures. Participating contractors offer the incentives based on the energy savings of the measure and deducts the amount from the customer’s final invoice. This program also provides the participating contractors with non-cash incentives, which include technical assistance, education, and marketing materials. In addition to capturing demand and energy savings, the program’s implementer helps participating customers improve their ability to identify and evaluate energy efficiency improvements. EPE plans to continue this program in 2021 and 2022. LivingWise® MTP The LivingWise® MTP teaches students easy ways to use energy more efficiently in their homes. The program is available at no cost to the teacher, school district, or to the students and serves as an effective community outreach program to improve energy efficiency awareness. The program identifies and enrolls 6th grade students and teachers and provides them with a LivingWise® kit that contains energy saving devices and educational materials. The students install the devices in their home and, with the help of their parents, complete a home energy audit report. EPE plans on continuing this program in 2021 and 2022. Texas Appliance Recycling MTP The Texas Appliance Recycling Program provides incentives to encourage residential customers to recycle their older, less efficient refrigerators and freezers rather than use them as secondary or backup units. The Texas Appliance Recycling MTP offers eligible customers a cash incentive for EPE to remove and recycle their old refrigerator or freezer. EPE plans to continue this program in 2021 and 2022. Hard-to-Reach Solutions MTP The Hard-to-Reach Solutions MTP offers incentives to low income residential customers for installing eligible energy efficiency measures. This program targets residential customers that are at or below 200% of the Federal Poverty Guidelines. Participating contractors offer the incentives based on the energy savings of the measure and deducts the amount from the customer’s final invoice. This program also provides the participating contractors with non-cash incentives which include technical assistance, education, and marketing materials. In addition to capturing demand and energy savings, the program’s implementer helps participating customers improve their ability to identify and evaluate energy efficiency improvements. EPE plans to continue this program in 2021 and 2022. Residential Marketplace Pilot MTP The Residential Marketplace Pilot Program provides eligible residential customers instant rebates through an online marketplace for installing energy efficiency measures. The EPE Marketplace will offer customers a variety of energy efficient products including smart thermostats, lighting, and advanced power strips. EPE plans to implement this program in 2021 and 2022. El Paso Electric Company 8 2021 Energy Efficiency Plan and Report 11 Residential Load Management MTP The Residential Load Management Program targets reduction in central refrigerated air conditioning load for residential customers. EPE has the capability of remotely adjusting participating customers’ internet-enabled smart thermostats during load management events to relieve peak load. Customers receive a $25 incentive for enrolling an existing qualifying internet enabled smart thermostat or for continued participation in the Program. Customers may also receive an additional $50 rebate for the purchase and enrollment of a new internet enabled smart thermostat through EPE’s online marketplace. EPE plans to continue this program in 2021 and 2022. C. Research and Development EPE has allocated $25,000 to Research and Development (R&D) for 2021. R&D will be utilized for the development of new measures such as Level II EV Chargers and midstream HVAC for residential applications. This funding amount is less than 10% of EPE’s 2021 total program costs in accordance with 16 TAC § 25.181(g). D. New Program(s) for 2021 and 2022 EPE plans to add the FutureWise® Pilot MTP, an efficiency education program for high school students, in 2022. E. Discontinued Program(s) for 2021 and 2022 EPE currently has no plan to discontinue any programs in 2021 or 2022. F. General Implementation Process Program Implementation EPE continues to contract with third-party implementers to provide energy efficiency and demand reduction programs. Third-party implementers help EPE design, market, and execute the programs, and identify, evaluate, and undertake energy efficiency improvements. EPE will continue to conduct activities to implement energy efficiency programs in a cost-effective and non-discriminatory manner. Based on the specific MTP, EPE and the implementer may perform outreach activities to recruit local contractors and provide education and training. We validate proposed projects, perform quality assurance/quality control, and verify and report savings associated with the programs. Program Tracking EPE uses online databases to track program activity for most of its MTPs. Depending upon the associated program, these databases are accessible to project sponsors, EESPs, implementers, and administrators. The on-line databases capture customer and project information such as utility meter number or account number, proposed measures and associated energy savings, and incentive amounts. El Paso Electric Company 9 2021 Energy Efficiency Plan and Report 12 Measurement and Verification Most of EPE’s energy efficiency projects will use deemed savings for demand and energy reductions as approved by the PUCT. If the deemed savings approach is not applicable for a particular installation, savings will be reported using an approved measurement and verification approach. Guidelines within the International Performance Measurement and Verification Protocol (IPMVP) will be used in instances in which: • a PUCT-approved deemed savings is not available for the energy efficiency measure(s) included in an eligible project or • an EESP has elected to follow the protocol because it believes that measurement and verification activities will result in a more accurate estimate of the savings associated with the project than would the application of the PUCT-approved deemed savings value. Based on the EE Rule, the PUCT implemented an EM&V process that included the selection of an EM&V contractor in 2013. The PUCT selected the current third-party EM&V contractor through the Request for Proposal 473-20-00002, Project No. 51021. The selected EM&V team is led by Tetra Tech. Tetra Tech’s contract was extended and will continue the evaluation of programs through Program Year 2024, and EPE will continue to provide the necessary information and data to the EM&V team. G. Outreach Activities EPE anticipates that outreach to a broad range of EESPs and market segments will be necessary to meet the savings goals required by section (e)(1) of the EE Rule and PURA § 39.905. EPE markets the availability of its programs in the following manner: • EPE maintains the www.epelectric.com website. The use of the website is one of the primary methods of communication to provide potential project sponsors and customers with program information. The website contains detailed information such as requirements for program participation, project eligibility, end-use measure eligibility, incentive levels, application procedures, program manuals, and available funding. • EPE offers outreach workshops for some of the MTPs. EPE invites the appropriate EESPs to participate in the workshops. The workshops describe the requirements for program participation, project eligibility, end-use measure eligibility, incentive levels, application procedures, and available funding. • EPE includes information on the availability of energy efficiency programs several times a year through the monthly newsletter that is included in customers’ bills. • EPE maintains a dedicated energy efficiency phone line to provide customers with direct access to energy efficiency personnel on program availability, participation requirements, incentive levels, application procedures, and available funding. • EPE maintains a dedicated energy efficiency e-mail address to allow customers to contact energy efficiency personnel directly. El Paso Electric Company 10 2021 Energy Efficiency Plan and Report 13 H. Existing Demand Side Management (DSM) Contracts or Obligations EPE contracts with CLEAResult to implement EPE's Texas SCORE MTP and the four “Solutions” MTPs. EPE contracts with AM Conservation Group to implement EPE's LivingWise® MTP. EPE contracts with Uplight to implement the Residential Load Management Program MTP. EPE contracts with ARCA to implement the Texas Appliance Recycling MTP. EPE contracts with Simple Energy to implement the Residential Marketplace Pilot MTP. El Paso Electric Company 11 2021 Energy Efficiency Plan and Report 14 II. CUSTOMER CLASSES For the twelve months ending December 2020, there was an average of 298,126 residential accounts in the EPE Texas service territory. Based on the 2020 Annual Social and Economic Supplement of the U.S. Census Bureau’s Current Population Survey, 23.8% of Texas families are at or below 200% of the poverty threshold. Applying this standard pursuant to 16 TAC § 25.181(c)(27), approximately 70,954 of EPE’s residential accounts fall into the Hard-to-Reach Customer Class. The average number of commercial accounts in 2020 was 36,445. EPE includes residential and commercial customer classes that take service at the distribution level in the energy efficiency programs. Transmission level customers, other than governmental entities, are not eligible to participate. The total residential class includes the Hard-to-Reach accounts. Table 3 summarizes the number of customers in each of the customer classes for 2020. Table 3: Summary of Texas Residential and Commercial Customer Classes (2020) Customer Class Total Residential Total Hard-to-Reach Total Commercial Number of Texas Customers 298,126 70,954 36,445 III. PROJECTED ENERGY EFFICIENCY SAVINGS AND GOALS As reflected in PUCT Docket No. 50806, EPE’s energy efficiency demand reduction goal for 2021 is 11.16 MW, which mirrors the 2020 goal. The following is the section of the EE Rule that describes how utilities are to calculate their minimum demand reduction goals: § 25.181(e)(1) An electric utility shall administer a portfolio of energy efficiency programs to acquire, at a minimum, the following: (A) Beginning with the 2013 program year, until the trigger described in subparagraph (B) of this paragraph is reached, the utility shall acquire a 30% reduction of its annual growth in demand of residential and commercial customers. (B) If the demand reduction goal to be acquired by a utility under subparagraph (A) of this paragraph is equivalent to at least four-tenths of 1% of its summer residential and for weather-adjusted peak demand commercial customers for the previous program year, the utility shall meet the energy efficiency goal described in subparagraph (C) of this paragraph for each subsequent program year. the combined (C) Once the trigger described in subparagraph (B) of this paragraph is reached, the utility shall acquire four-tenths of 1% of its summer weather-adjusted peak demand for the combined residential and commercial customers for the previous program year. El Paso Electric Company 12 2021 Energy Efficiency Plan and Report 15 (D) Except as adjusted in accordance with subsection (u) of this section, a utility’s demand reduction goal in any year shall not be lower than its goal for the prior year, unless the commission establishes a goal for a utility pursuant to paragraph (2) of this subsection. The demand reduction goal to be acquired in 2021 (11.16 MW) is greater than four-tenths of one percent of EPE’s 5-year average summer weather-adjusted peak demand for 2015 through 2019, which is 5.22 MW as shown in Table 1. In accordance with section (e)(1)(D) of the EE Rule, EPE’s demand reduction goal in any year shall not be lower than its goal for the prior year. Considering the parameters established by the EE Rule, EPE’s 2022 goal should remain at 11.16 MW (0.82% of the average summer weather-adjusted peak demand for 2016 through 2020) as shown in Table 1. The corresponding energy savings goals for all years are determined by applying a 20% conservation load factor to the demand reduction goals. Table 4 presents historical annual growth in demand. Table 5 presents projected demand reduction and energy savings by customer class and program for 2021 and 2022. El Paso Electric Company 13 2021 Energy Efficiency Plan and Report 16 e g a r e v A h t w o r G t a W M ( 5 ) r e t e M h t w o r G t a W M ( 4 ) r e t e M h t w o r G t a W M ( ) e c r u o S ) r e t e M t a h W M ( n o i t p m u s n o C y g r e n E ) e c r u o S t a W M ( d n a m e D k a e P & l a i t n e d s e R i l a i c r e m m o C m e t s y S l a t o T l a i c r e m m o C & l a i t n e d i s e R m e t s y S l a t o T r e h t a e W d e t s u d A j r e h t a e W d e t s u d A j r e h t a e W d e t s u d A j r e h t a e W d e t s u d A j l a u t c A r e h t a e W d e t s u d A j l a u t c A A N A N A N A N A N A N A N A N 2 . 8 3 5 . 8 5 4 . 8 5 3 . 9 3 8 . 2 2 - 6 . 8 1 1 5 . 0 6 3 . 1 3 - 0 . 6 6 5 . 8 7 A N A N 0 . 4 6 0 . 3 4 0 . 5 2 - 9 . 9 2 1 0 . 6 6 1 . 4 3 - 0 . 2 7 9 . 4 8 A N A N , 8 0 4 6 5 2 , 5 , 3 2 0 6 7 2 , 5 2 7 7 , 8 0 0 , 6 8 8 3 , 8 2 0 , 6 , 4 0 7 9 1 2 , 5 , 9 6 8 1 1 2 , 5 8 0 1 , 1 8 9 , 5 3 7 2 , 3 7 9 , 5 , 2 2 6 3 6 2 , 5 , 5 9 7 8 1 3 , 5 5 4 7 , 6 8 0 , 6 7 1 9 , 1 4 1 , 6 , 6 7 0 0 8 3 , 5 , 1 6 6 1 8 3 , 5 5 2 0 , 7 8 1 , 6 0 1 6 , 8 8 1 , 6 , 8 6 3 4 0 4 , 5 , 4 6 0 7 8 3 , 5 9 2 2 , 3 2 2 , 6 5 2 9 , 5 0 2 , 6 , 2 4 3 3 7 4 , 5 , 2 5 6 7 3 5 , 5 1 5 4 , 3 1 3 , 6 2 6 7 , 7 7 3 , 6 , 2 4 3 4 7 4 , 5 , 8 0 6 8 2 5 , 5 1 8 9 , 7 6 2 , 6 7 4 2 , 2 2 3 , 6 , 7 6 4 9 2 3 , 5 , 9 5 3 0 3 4 , 5 2 3 6 , 7 3 3 , 6 4 2 5 , 8 3 4 , 6 A N A N A N A N A N A N A N A N k a e P d n a m e D e c r u o S @ - t p O t e N s t u O 8 4 2 , 1 1 9 2 , 1 6 6 2 , 1 6 9 3 , 1 2 6 4 , 1 8 2 4 , 1 0 0 5 , 1 5 8 5 , 1 A N A N - t p O t u O r e h t a e W d e t s u d A j l a u t c A r e h t a e W d e t s u d A j l a u t c A 0 0 0 1 . 1 - 1 . 1 - 2 . 1 - 2 . 1 - 3 . 1 - A N A N 8 4 2 , 1 1 9 2 , 1 6 6 2 , 1 7 9 3 , 1 3 6 4 , 1 9 2 4 , 1 1 0 5 , 1 6 8 5 , 1 A N A N 2 5 2 , 1 9 8 2 , 1 9 7 2 , 1 7 9 3 , 1 9 5 4 , 1 6 4 4 , 1 6 1 5 , 1 6 1 6 , 1 A N A N 2 5 3 , 1 7 8 3 , 1 6 8 3 , 1 9 0 5 , 1 9 7 5 , 1 5 4 5 , 1 3 8 5 , 1 3 0 7 , 1 A N A N 7 5 3 , 1 5 8 3 , 1 8 9 3 , 1 9 0 5 , 1 5 7 5 , 1 0 6 5 , 1 6 9 5 , 1 0 3 7 , 1 A N A N r a d n e l a C r a e Y 3 1 0 2 4 1 0 2 5 1 0 2 6 1 0 2 7 1 0 2 8 1 0 2 9 1 0 2 0 2 0 2 1 2 0 2 2 2 0 2 n o i t p m u s n o C y g r e n E d n a d n a m e D n i h t w o r G l a u n n A : 4 e l b a T t e k c o D n i d e v o r p p a r o t c a f s s o l e n i l d n a m e d m e t s y s % 4 5 7 . a n o d e s a b s i d n a ) B ( ) 3 ( ) e ( 1 8 1 . 5 2 § C A T 6 1 i o t g n d r o c c a l d e t a u c a c l s i d n a m e d k a e p f o % 4 . 0 f o l a o G d n a m e D 2 2 0 2 e h T : l w o e b n w o h s s a 8 5 0 0 5 . o N t r o p e R d n a n a P y c n e c i f f l i E y g r e n E 1 2 0 2 4 1 y n a p m o C c i r t c e E o s a P l l E . 8 5 0 0 5 . o N t e k c o D n i d e v o r p p a s a r o t c a f s s o l e n i l d n a m e d m e t s y s % 4 5 . 7 e h t s e d u c n l i 2 2 0 2 o t 0 2 0 2 r a e y r a d n e a c l r o f t r e e m t a t h w o r G . ) 0 2 0 2 - 6 1 0 2 ( 2 2 0 2 d n a ) 9 1 0 2 - 5 1 0 2 ( 1 2 0 2 r o f s r e m o t s u c l i a c r e m m o c d n a l a i t n e d s e r i r o f d n a m e d n i h t w o r g l a c i r o i t s h r a e y - 5 e g a r e v A 4 5 . W M 6 1 . 1 1 s i l a o g 2 2 0 2 e h t , s u h t , l a o g s ’ r a e y r o i r p e h t n a h t s s e l e b t o n l l a h s l a o g n o i t c u d e r d n a m e d s y t i l i t u ’ l a , e u R E E e h t r e d n u , r e v e w o H . W M 5 4 . 5 = ) r o t c a f s s o l e n i l d n a m e d m e t s y s 4 5 7 0 . 0 - 1 ( x ) 4 0 0 . 0 x s t u O - t p O t e n e c r u o s t a d n a m e D k a e P e g a r e v A W M 4 7 4 , 1 ( . W M 4 7 4 1 = 5 , / ) 5 8 5 , 1 + 0 0 5 , 1 + 8 2 4 , 1 + 2 6 4 , 1 + 6 9 3 , 1 ( = s t u O - t p O t e n e c r u o s t a d n a m e d k a e p l i a c r e m m o c d n a l a i t n e d s e r i f o e g a r e v A 17 Table 5: Projected Demand and Energy Savings Broken Out by Program for Each Customer Class 2021 Customer Class and Program Commercial Small Commercial Solutions MTP Large C&I Solutions MTP Texas SCORE MTP Commercial Load Management SOP Residential Marketplace Pilot MTP Projected Savings (at meter) kW kWh 10,516 18,104,594 730 3,197,400 2,011 10,569,816 750 4,270,500 7,000 21,000 25 45,878 Residential 5,375 4,323,399 Residential Solutions MTP LivingWise® MTP Texas Appliance Recycling MTP Residential Marketplace Pilot MTP Residential Load Management MTP Hard-to-Reach Hard-to-Reach Solutions MTP Total 2022 Customer Class and Program Commercial Small Commercial Solutions MTP Large C&I Solutions MTP Texas SCORE MTP Commercial Load Management SOP Residential Marketplace Pilot MTP 545 200 195 475 3,960 954,840 727,600 1,579,200 871,679 190,080 800 1,051,200 800 1,051,200 16,691 23,479,193 Projected Savings (at meter) kW kWh 10,541 18,208,716 730 3,197,400 2,011 10,569,816 750 7,000 4,270,500 21,000 50 150,000 Residential 8,486 7,621,590 Residential Solutions MTP LivingWise® MTP FutureWise® MTP Texas Appliance Recycling MTP Residential Marketplace Pilot MTP Residential Load Management MTP Hard-to-Reach Hard-to-Reach Solutions MTP Total 545 200 106 195 950 954,840 727,600 494,000 1,579,200 2,850,000 6,490 1,015,950 800 1,051,200 800 1,051,200 19,827 26,881,506 El Paso Electric Company 15 2021 Energy Efficiency Plan and Report 18 IV. PROGRAM BUDGETS Table 6 presents the total proposed budget allocations required to achieve EPE’s projected demand reduction and energy savings shown in Table 5. The budget allocations are broken down by customer class, program, and the budget categories of incentive payments and administration and R&D expenses. The program budget for 2021 is $4,685,552. Table 6 also includes the estimated annual expenses for the statewide EM&V contractor and the EECRF proceeding expenses. The number of customers in Table 3, Summary of Texas Residential and Commercial Customer Classes (2020), was considered in the budget allocations. EPE first ensured that the 5% goal for Hard-to-Reach customers was met and then allocated the remaining funding to the residential and commercial classes. The decision-making process for developing the budget included additional factors and assumptions. Hard-to-Reach customers are residential customers at or below 200% of the Federal Poverty Guidelines. This is estimated to be approximately 70,954 customers or 23.8% of EPE's total residential load in Texas. Avoided costs for 2021, as established by the PUCT, were set at $80 per kW per year and $0.10161 per kWh. As directed in the EE Rule, EPE will limit administrative costs to a maximum of 15% of the total program costs, R&D costs to a maximum of 10% of the total program costs, and the cumulative cost of administration and R&D will not exceed 20% of total program costs. EPE used a 7.025% post-tax discount rate to calculate the present value of the avoided cost associated with a project and assumed a 2% escalation rate. It is assumed that an EESP that completes an energy efficiency project will receive the associated incentives within that program year. Administration costs, however, may be incurred in one year and expended in another. EPE will offer its portfolio of programs to each eligible customer class. It should be noted, however, that the actual distribution of the goal and budget must remain flexible based upon the response of the marketplace, the potential interest of customer classes towards specific programs, and the overriding objective of meeting the legislative savings goal. EPE reserves the right to reallocate unused funds amongst programs as necessary. El Paso Electric Company 16 2021 Energy Efficiency Plan and Report 19 Table 6: Proposed Annual Budget Broken Out by Program for Each Customer Class 2021 Incentives Admin & R&D Total Budget Commercial Small Commercial Solutions MTP Large C&I Solutions MTP Texas SCORE MTP Commercial Load Management SOP Residential Marketplace Pilot MTP Residential Residential Solutions MTP LivingWise™ MTP Texas Appliance Recycling MTP Residential Marketplace Pilot MTP Residential Load Management MTP Hard-to-Reach Hard-to-Reach Solutions MTP Administration Research and Development Subtotal Budgets EM&V * EECRF Proceeding Expenses Total Budgets $2,461,413 $461,115 $1,005,396 $519,902 $460,000 $15,000 $1,501,346 $315,000 $346,346 $245,000 $285,000 $310,000 $600,000 $600,000 $4,562,759 $4,562,759 $0 $0 $0 $0 $0 $0 $10,000 $0 $0 $10,000 $0 $0 $0 $0 $87,793 $25,000 $122,793 $56,022 $100,000 $278,815 $2,461,413 $461,115 $1,005,396 $519,902 $460,000 $15,000 $1,511,346 $315,000 $346,346 $255,000 $285,000 $310,000 $600,000 $600,000 $87,793 $25,000 $4,685,552 $56,022 $100,000 $4,841,574 2022 Incentives Admin & R&D Total Budget Commercial Small Commercial Solutions MTP Large C&I Solutions MTP Texas SCORE MTP Commercial Load Management SOP Residential Marketplace Pilot MTP Residential Residential Solutions MTP LivingWise® MTP FutureWise® MTP Texas Appliance Recycling MTP Residential Marketplace Pilot MTP Residential Load Management MTP Hard-to-Reach Hard-to-Reach Solutions MTP Administration Research and Development Subtotal Budgets EM&V EECRF Proceeding Expenses Total Budgets $2,461,413 $461,115 $1,005,396 $519,902 $460,000 $15,000 $1,955,026 $315,000 $346,346 $300,000 $255,000 $285,000 $453,680 $600,000 $600,000 $5,016,439 $5,016,439 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $87,793 $25,000 $112,793 $57,216 $100,000 $270,009 $2,461,413 $461,115 $1,005,396 $519,902 $460,000 $15,000 $1,955,026 $315,000 $346,346 $300,000 $255,000 $285,000 $453,680 $600,000 $600,000 $87,793 $25,000 $5,129,232 $57,216 $100,000 $5,286,448 * Updated CY2021 EM&V costs provided by Tetra Tech under the new contract. El Paso Electric Company 17 2021 Energy Efficiency Plan and Report 20 ENERGY EFFICIENCY REPORT V. HISTORICAL DEMAND GOALS AND ENERGY TARGETS FOR PREVIOUS FIVE YEARS Table 7 documents EPE's actual demand reduction goals and energy targets for the previous five years (2016-2020) calculated in accordance with 16 TAC § 25.181. Table 7: Historical Demand Savings Goals and Energy Targets (at Meter) Calendar Year 20206 20198 20189 201710 201611 Demand Goals (kW) Energy Targets (kWh) 11,160 19,552,320 Actual Demand Reduction (kW) 20,7407 Actual Energy Savings (kWh) 30,704,424 11,160 19,552,320 19,424 24,825,792 11,160 19,552,320 16,846 20,726,306 11,160 19,552,320 15,285 23,311,792 11,160 19,552,320 12,790 22,912,026 6 2020 demand goal and energy target as reported in EPE’s EEPR Errata filed July 15, 2020 under Project No. 50666. 2020 actual demand reduction and energy savings reported in Project No. 51672. 7 2020 actual demand reduction at the source is calculated as follows: 20,740 kW at meter * (1/(1-0.0754)) line losses = 22,431 kW at the source. 8 2019 demand goal and energy target as reported in EPE’s EEPR Errata filed July 26, 2019, under Project No.49297. 2019 actual demand reduction and energy savings reported in Project No. 50666. 9 2018 demand goal and energy target as reported in EPE’s EEPR filed April 2, 2018, under Project No. 48146. 2018 actual demand reduction and energy savings reported in Project No. 49297. 10 2017 demand goal and energy target as reported in EPE’s EEPR filed April 3, 2017, under Project No. 46907. 2017 actual demand reduction and energy savings reported in Project No. 48146. 11 2016 demand goal and energy target as reported in EPE’s EEPR filed April 1, 2016, under Project No. 45675. 2016 actual demand reduction and energy savings reported in Project No. 46907. El Paso Electric Company 18 2021 Energy Efficiency Plan and Report 21 VI. PROJECTED, REPORTED AND VERIFIED DEMAND AND ENERGY SAVINGS Table 8: Projected versus Reported Savings for 2019 and 2020 2019 Projected Savings Reported and Verified Savings Customer Class and Program kW kWh kW kWh Commercial Small Comm. Solutions MTP Large C&I Solutions MTP Texas SCORE MTP Load Management SOP Residential Residential Solutions MTP LivingWise® MTP Texas Appliance Recycling Residential Load Management MTP Hard-to-Reach Hard-to-Reach Solutions MTP Total at Meter 10,241 16,635,216 15,626 20,095,620 730 3,232,821 3,197,400 818 2,011 10,569,816 2,395 11,493,121 500 5,352,469 2,847,000 940 7,000 21,000 11,473 17,209 3,617,344 3,304,214 3,016 2,714 1,228,399 954,840 601 545 1,475,680 727,600 572 200 868,560 1,579,200 107 195 1,774 42,574 1,736 44,705 1,112,828 1,051,200 781 800 1,112,828 800 1,051,200 781 24,825,792 13,755 20,990,630 19,423 2020 Projected Savings Reported and Verified Savings Customer Class and Program kW kWh kW kWh Commercial Small Comm. Solutions MTP Large C&I Solutions MTP Texas SCORE MTP Load Management SOP Residential Marketplace Pilot MTP Residential Residential Solutions MTP LivingWise® MTP Texas Appliance Recycling MTP Residential Marketplace Pilot MTP Residential Load Management MTP Hard-to-Reach Hard-to-Reach Solutions MTP Total at Meter 2,847,000 1,191 3,197,400 750 10,266 730 2,011 500 16,681,094 16,044 23,664,620 2,925,568 10,569,816 3,615 15,054,617 5,197,201 7,000 21,000 10,397 40,975 446,259 5,736,975 1,219,380 855,290 620,400 2,152,247 889,658 1,302,829 1,302,829 30,704,424 25 45,878 91 4,323,399 3,732 954,840 734 727,600 326 1,579,200 77 871,679 627 190,080 1,968 800 1,051,200 964 1,051,200 964 800 22,055,693 20,740 16,441 5,375 545 200 195 475 3,960 El Paso Electric Company 19 2021 Energy Efficiency Plan and Report 22 e t o N . s s a c l r e m o t s u c h c a e r o f m a r g o r p y b ) 0 2 0 2 - 6 1 0 2 ( s r a e y e v i f i s u o v e r p e h t r o f s e r u t i d n e p x e n o i t a r t s n m d a d n a e v i t n e c n i i i I S E R U T D N E P X E M A R G O R P L A C R O T S H I I . I I V ' s E P E s t n e m u c o d 9 e b a T l 0 2 0 2 r o f s e r u t i d n e p x e n o i t a r t s n m d a i i l a r e n e g d n a , V & M E , D & R . s e r u t i d n e p x e n o i t a r t s n m d a i i l a r e n e g r o , V & M E , D & R e d u c n l i t o n s e o d l e b a t i s h t t a h t 7 1 0 2 , 7 9 2 9 4 . o N j t c e o r P n i d e l i f R P E E m o r f e r a s e r u t i d n e p x e 8 1 0 2 , 6 6 6 0 5 . o N j t c e o r P n i d e l i f a t a r r E R P E E m o r f e r a s e r u t i d n e p x e 9 1 0 2 , 2 7 6 1 5 . o N j t c e o r P n i d e l i f R P E E m o r f e r a s e r u t i d n e p x e 0 2 0 2 2 1 2 1 0 2 0 2 h g u o r h t 6 1 0 2 r o f s e r u t i d n e p x E n o i t a r t s i n m d A d n a e v i t n e c n i I m a r g o r P l a c i r o t s i H : 9 e l b a T . 0 1 l e b a T n i d n u o f e b n a c t r o p e R d n a n a P y c n e c i f f i l E y g r e n E 1 2 0 2 0 2 . 7 0 9 6 4 . o N j t c e o r P n i d e l i f R P E E m o r f e r a s e r u t i d n e p x e 6 1 0 2 d n a , 6 4 1 8 4 . o N j t c e o r P n i d e l i f R P E E m o r f e r a s e r u t i d n e p x e y n a p m o C c i r t c e E o s a P l l E 23 VIII. PROGRAM FUNDING AND EXPLANATION OF ADMINISTRATION COSTS FOR CALENDAR YEAR 2020 As shown in the subtotal for the “Total Funds Expended” column of Table 10, EPE spent $4,983,108 on program expenses (excluding EM&V and EECRF Proceeding Expenses) for its PUCT-approved energy efficiency programs in 2020. These programs were funded by EPE’s 2020 EECRF. These expenses account for 107% of the total forecasted 2020 program budget of $4,675,650. Actual program funding levels are shown in Table 10 and Table 11. The administration expenses shown in Table 10 benefited the entire portfolio of programs. These expenses include, but were not limited to, outsourced program administration, marketing (e.g., website maintenance and promotional items), Electric Utility Marketing Managers of Texas expenses, costs associated with regulatory filings, and EM&V administration expenses outside of those associated with the PUCT-appointed EM&V contractor. El Paso Electric Company 21 2021 Energy Efficiency Plan and Report 24 Table 10: Program Funding for Calendar Year 2020 Total Projected Budget Number of Participants Actual Funds Expended (Incentives) Actual Funds Expended (Admin & R&D) Total Funds Expended Funds Committed (Not Expended) Funds Remaining Commercial Small Commercial Solutions MTP Large C&I Solutions MTP Texas SCORE MTP Comm. Load Management SOP Residential Marketplace Pilot MTP $ 15,000 $ 2,451,511 200 $ 3,121,640 $ - $ 3,121,640 $ - $ 461,115 78 $ 470,425 $ 1,005,396 47 $ 1,512,746 $ 510,000 11 $ 704,020 $ 460,000 12 $ 423,754 52 $ 10,695 $ 470,425 $ 1,512,746 $ 704,020 $ 423,754 $ 10,695 $ 1,120,183 $ 1,827 $ 1,122,010 $ - Residential $ 1,511,346 10,119 $ 315,000 906 $ 354,427 Residential Solutions MTP LivingWise® MTP $ 346,346 4,645 $ 179,994 Texas Appliance Recycling MTP $ 255,000 540 $ 99,150 Residential Marketplace Pilot MTP $ 285,000 982 $ 203,212 Residential Load Management MTP $ 310,000 3,046 $ 600,000 1,215 $ 600,000 1,215 $ 87,793 $ 25,000 $ 4,675,650 11,534 Administration Research and Development Subtotal $ 354,427 $ 179,994 $ 99,150 $ 203,212 $ 283,400 $ 1,827 $ 285,227 $ 664,708 $ 664,708 - $ 664,708 $ 664,708 $ 74,750 $ 74,750 Hard-to-Reach Solutions MTP Hard-to-Reach $ 4,906,531 $ 76,577 $ 4,983,108 $ - $ - $ (670,129) $ (9,310) $ (507,350) $ (194,020) $ 36,246 $ 4,305 $ 389,336 $ (39,427) $ 166,352 $ 155,850 $ 81,788 $ 24,773 $ (64,708) $ (64,708) $ 13,043 $ 25,000 $ (307,458) $ - $ 111,318 EM&V EECRF Proceeding Expenses (EPE & Municipal expenses)* Total $ 58,364 $ 150,000 $ 58,364 $ 58,364 $ 38,682 $ 38,682 $ 4,884,014 11,534 $ 4,906,531 $ 173,623 $ 5,080,154 $ - $ (196,140) * Actual EECRF proceeding expenses of $38,682, consists of $31,717 in EPE proceeding expenses and $6,965 in municipal proceeding expenses. ** Residential Marketplace Pilot MTP is also listed under the Commercial sector due to the Upstream/Midstream Program Cross-Sector Savings guidance memo issued by Tetra Tech to calculate and allocate savings at the sector-level for upstream and midstream programs. El Paso Electric Company 22 2021 Energy Efficiency Plan and Report 25 Table 11: Program Comparison – Budget to Actual Expenditures Programs 2020 Budget 2020 Expenditures Percent >10% Variance Explanation Commercial Small Commercial Solutions MTP Large C&I Solutions MTP Texas SCORE MTP Comm. Load Management SOP $ 2,451,511 $ 3,121,640 127.3% $ 461,115 $ 470,425 102.0% $ 1,005,396 $ 1,512,746 150.5% Program had more participation than was anticipated. $ 510,000 $ 704,020 138.0% Program had more participation than was anticipated. $ 460,000 $ 423,754 92.1% Residential Marketplace Pilot MTP $ 15,000 $ 10,695 71.3% Program did not achieve anticipated participation due to a mid-year launch. Funds were reallocated to programs with higher participation. Residential Residential Solutions MTP $ 1,511,346 $ 1,122,010 $ 315,000 $ 354,427 112.5% Program had more participation than was anticipated. 74.2% LivingWise® MTP $ 346,346 $ 179,994 52.0% Texas Appliance Recycling MTP $ 255,000 $ 99,150 38.9% Residential Marketplace Pilot MTP $ 285,000 $ 203,212 71.3% Residential Load Management MTP $ 310,000 $ 285,227 92.0% Program did not achieve anticipated participation due to COVID and school closings. Funds were reallocated to programs with higher participation. Program did not achieve anticipated participation due to COVID. Funds were reallocated to programs with higher participation. Program did not achieve anticipated participation due to a mid-year launch. Funds were reallocated to programs with higher participation. Program did not achieve anticipated participation due to a mid-year launch.Funds were reallocated to programs with higher participation. Hard-to-Reach Hard-to-Reach Solutions MTP Administration Research and Development Total $ 600,000 $ 664,708 110.8% $ 600,000 $ 664,708 110.8% Program had more participation than was anticipated. $ 87,793 $ 74,750 $ 25,000 $ - $ 4,675,650 $ 4,983,108 106.6% El Paso Electric Company 23 2021 Energy Efficiency Plan and Report 26 IX. PROGRAM RESULTS FOR MTPs A. Market Transformation Programs Small Commercial Solutions MTP The 2020 projected savings for the Small Commercial Solutions MTP were 730 kW. There were 78 participants completed during 2020 that reduced demand by 750 kW and saved 2,925,568 kWh in energy. Large C&I Solutions MTP The 2020 projected savings for the Large C&I Solutions MTP were 2,011 kW. There were 47 participants completed during 2020 that reduced demand by 3,615 kW and saved 15,054,617 kWh in energy. Texas SCORE MTP The 2020 projected savings for the Texas SCORE MTP were 500 kW. There were 11 participants in this program that reduced demand by 1,191 kW and saved 5,197,201 kWh in energy. Residential Solutions MTP The 2020 projected savings for the Residential Solutions MTP were 545 kW. There were 906 participants in this program that reduced demand by 734 kW and saved 1,219,380 kWh in energy. LivingWise® MTP The 2020 projected savings for the LivingWise® MTP were 200 kW. There were 4,645 kits provided in this program that reduced demand by 326 kW and saved 855,290 kWh in energy. Hard-to-Reach Solutions MTP The 2020 projected savings for the Hard-to-Reach Solutions MTP were 800 kW. There were 1,215 participants in this program that reduced demand by 964 kW and saved 1,302,829 kWh in energy. Appliance Recycling MTP The 2020 projected savings for the Appliance Recycling MTP were 195 kW. There were 540 participants in this program that reduced demand by 77 kW and saved 620,400 kWh in energy. Residential Marketplace Pilot MTP The 2020 projected savings for the Residential Marketplace MTP were 500 kW. There were 1,034 participants in this program that reduced demand by 718 kW and saved 2,598,506 kWh in energy. Residential Load Management MTP The 2020 projected savings for the Residential Load Management MTP were 3,960 kW. There were 3,046 participants in this program that reduced demand by 1,968 kW and saved 889,658 kWh in energy. El Paso Electric Company 23 2021 Energy Efficiency Plan and Report 27 X. CURRENT ENERGY EFFICIENCY COST RECOVERY FACTOR (EECRF) Report for 2020 In Docket No.49496, EPE was granted approval for recovery through its 2020 EECRF of (a) $4,675,650 in energy efficiency program costs projected to be incurred from January 1 through December 31, 2020; (b) a performance incentive for 2018 of $810,663; (c) EPE’s 2018 EECRF proceeding expenses of $188,923 ($140,742 for EPE and $48,181 for the City of El Paso); and (d) the 2018 over-recovery revenue amount of $260,655, and projected cost of evaluation, measurement, and verification (EM&V) of $58,364 for program year 2020. The Final Order in Docket No. 49496 concluded that the filing conformed to the requirements of the EE Rule. The order also found that the allocation of the energy efficiency costs, and performance incentive were in accordance with the EE Rule. The EECRF was approved on November 21, 2019 and became effective with the first billing cycle in January 2020. The recovery of the agreed-upon EECRF amount of $5,472,945 is based on a dollar per kWh rate. The 2020 cost recovery factors by rate are listed in Table 12. Table 12: 2020 EECRF Monthly Rates Rate No. Description 01 02 07 08 09 Residential Service Rate Small Commercial Service Rate Outdoor Recreational Lighting Service Rate Governmental Street Lighting Service Rate Governmental Traffic Signal Service 11-TOU Time-Of-Use Municipal Pumping Service Rate WH Water Heating 22 24 25 34 41 Irrigation Service Rate General Service Rate Large Power Service Rate (excludes transmission) Cotton Gin Service Rate City and County Service Rate Maintenance Power Service For Cogeneration And Small Power Production Facilities Backup Power Service For Cogeneration And Small Power Production Facilities 46 47 Energy Efficiency Cost Recovery Factor ($/kWh) $ 0.001009 $ 0.001169 $ 0.000000 $ 0.000035 $ (0.000072) $ (0.000002) $ (0.000077) $ (0.000008) $ 0.001017 $ 0.000677 $ 0.000258 $ 0.002649 $ 0.000258 $ 0.000258 El Paso Electric Company 24 2021 Energy Efficiency Plan and Report 28 XI. REVENUE COLLECTED THROUGH EECRF In 2020, EPE collected a total of $5,308,925 under Rate Schedule No. 97 – Energy Efficiency Cost Recovery Factor. XII. OVER/UNDER RECOVERY OF ENERGY EFFICIENCY PROGRAM COSTS In 2020, EPE under-recovered an amount of $471,478 as shown in Table 13. Docket No. 49496 ordered the recovery of EM&V costs of $58,364 for program year 2020. Table 13: Authorized and Actual Recovery Amounts Description Authorized in Docket No. 49496 Actual January 1 – December 31, 2020 Energy Efficiency Costs Program Year 2020 EM&V Costs 2018 (Over)/Under Recovery 2018 Performance Bonus 2018 EECRF Proceeding Costs 2020 Total Costs 2020 EECRF Revenues 2020 (Over)/Under Recovery $ 4,675,650 $ 4,983,108 $ 58,364 $ 58,364 $ (260,655) $ (260,655) $ 810,663 $ 810,663 $ 188,923 $ 188,923 $ 5,472,945 $ 5,780,403 $ 5,308,925 $ 471,478 XIII. UNDERSERVED COUNTIES EPE serves customers in three Texas counties: Culberson, Hudspeth, and El Paso. During 2020, the majority of energy efficiency projects were installed in El Paso County. EPE has defined Underserved Counties as any county in the Texas EPE service territory where demand or energy savings were not reported in its 2020 EPE energy efficiency programs. Based on this definition, EPE had no Underserved Counties in 2020. Table 14: 2020 Energy Efficiency Activities by County County # of Participants El Paso County Culberson Hudspeth Total 11,396 135 3 11,534 Reported Savings kWh kW 20,379.02 356.62 4.14 20,739.77 29,912,517 781,951 9,956 30,704,424 El Paso Electric Company 25 2021 Energy Efficiency Plan and Report 29 ACRONYMS C&I DR ̶ Commercial and Industrial ̶ Demand Response DSM ̶ Demand Side Management EECRF ̶ Energy Efficiency Cost Recovery Factor EEPR ̶ Energy Efficiency Plan and Report EE Rule ̶ Energy Efficiency Rule, 16 TAC § 25.181 and § 25.183 EESP ̶ Energy Efficiency Service Provider EPE ̶ El Paso Electric Company EM&V ̶ Evaluation, Measurement & Verification HTR ̶ Hard-To-Reach LM kW ̶ Load Management ̶ Kilowatt kWh ̶ Kilowatt Hour M&V ̶ Measurement and Verification MW ̶ Megawatt MTP ̶ Market Transformation Program PUCT ̶ Public Utility Commission of Texas PURA ̶ Public Utility Regulatory Act R&D ̶ Research and Development RES ̶ Residential SCORE ̶ Schools and Cities Conserving Resources SOP ̶ Standard Offer Program TAC ̶ Texas Administrative Code TRM ̶ Texas Technical Reference Manual GLOSSARY Glossary is the same as the definitions in 16 TAC § 25.181(c). El Paso Electric Company 26 2021 Energy Efficiency Plan and Report 30 ̶ APPENDIX A: REPORTED DEMAND AND ENERGY REDUCTION BY COUNTY Program Savings by County * All programs funded through EPE’s EECRF. Small Commercial Solutions MTP County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total 72 6 0 78 Large C&I Solutions MTP kW kWh 689.95 59.88 0 749.83 2,597,143 328,425 0 2,925,568 County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total Texas SCORE MTP 47 0 0 47 kW kWh 3,615.23 15,054,617 0 0 0 0 3,615.23 15,054,617 County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total 11 0 0 11 Commercial Load Management SOP kW kWh 1,191.18 5,197,201 0 0 0 0 1,191.18 5,197,201 County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total 12 0 0 12 kW kWh 10,397.00 40,975 0 0 0 0 10,397.00 40,975 El Paso Electric Company A-1 2021 Energy Efficiency Plan and Report 31 Residential Solutions MTP County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total LivingWise® MTP 905 1 0 906 kW kWh 727.96 6.34 0 734.30 1,206,914 12,466 0 1,219,380 County # of Kits Reported Savings El Paso County Culberson County Hudspeth County Total 4,645 0 0 4,645 Hard-to-Reach Solutions MTP kW kWh 326.26 855,290 0 0 0 0 326.26 855,290 County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total 1,089 124 2 1,215 Appliance Recycling MTP kW kWh 671.87 288.35 3.46 963.68 853,023 439,861 9,945 1,302,829 County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total 540 0 0 540 Residential Marketplace Pilot MTP kW kWh 76.56 0 0 76.56 620,400 0 0 620,400 County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total 1,033 1 0 1,034 kW kWh 718.08 0.00 0 718.08 2,597,340 1,166 0 2,598,506 El Paso Electric Company A-1 2021 Energy Efficiency Plan and Report 32 Residential Load Management MTP County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total 3,042 3 1 1,034 * Totals may not tie due to rounding. kW kWh 1,964.92 889,615 2.05 0.68 33 11 1,967.65 889,658 El Paso Electric Company A-1 2021 Energy Efficiency Plan and Report 33 El Paso Electric Company 2021 Energy Efficiency Plan and Report 16 Texas Administrative Code § 25.181 and § 25.183 April 1, 2021 (Errata April 28, 2021) Project No. 51672 34 EXECUTIVE SUMMARY The Energy Efficiency Plan portion of this EEPR details EPE's plan to meet the energy efficiency demand reduction goal for 2021, as established pursuant to 16 TAC § 25.181(e)(3). The Final Order of Docket No. 508061 issued on November 5, 2020, established the EECRF rates applicable to EPE for 2021. The order left in place the same demand reduction goal of 11.16 MW, which is what it has been since 2011 and is greater than four-tenths of one percent of EPE’s average weather-adjusted peak demand at meter. Since EPE has reached a demand reduction goal of greater than four-tenths of one percent of its summer weather-adjusted peak demand in accordance with 16 TAC § 25.181(e)(1)(C), EPE’s 2022 demand reduction goal should remain at 11.16 MW. The Final Order of Docket No. 50806 also established an energy efficiency program budget for 2021 of $4,685,552.2 The goals, budgets, and implementation plans that are included in this EEPR are influenced substantially by the requirements of the EE Rule and lessons learned regarding energy efficiency service providers and customer participation in the various energy efficiency programs. A summary of projected goals, savings and budgets is presented in Table 1. Table 1: Summary of 2021 & 2022 Projected Goals, Savings and Budgets3 Calendar Year Average Growth in Demand (MW at Meter) 2021 2022 38.2 58.5 Goal Metric: 30% of 5-year Average Growth in Demand (MW at Meter) 11.46 Goal Metric: .4% of 5-year Average Peak Demand (MW at Meter)* 5.22 17.54 5.45 Demand Goal (MW) Energy Goal (MWh)** Projected MW Savings (at Meter) Projected MWh Savings (at Meter) Proposed Budget (000's)*** 11.16 11.16 19,552 19,552 16.691 19.827 23,479 26,882 $4,842 $5,286 * The 2022 Demand Goal of 0.4% of peak demand (5.4145 MW) is calculated according to 16 TAC § 25.181(e)(3)(B) and is based on an 8.32a 7.54% system demand line loss factor approved in Docket No. 4630850058; (1,474 MW Average Peak Demand at Source Net Opt-Outs x 0.004) x (1-0.08320754 system demand line loss factor). However, under the EE Rule, a utility’s demand reduction goal shall not be less than the prior year’s goal, thus, the 2022 goal is 11.16 MW. ** Calculated using a 20% conservation load factor. *** Proposed budget includes the overall program budget, EM&V expenses, and EECRF proceeding expenses. In 2020, EPE achieved a demand reduction of 20,743 kW, which was 186% of the 11,160 kW demand reduction goal. This was accomplished through the implementation of one SOP and several MTPs. To reach the projected savings for 2021 and 2022, EPE proposes to offer the following programs: • Standard Offer Program o Commercial Load Management SOP • Market Transformation Programs o Small Commercial Solutions MTP o Large C&I Solutions MTP o Texas SCORE MTP o Residential Solutions MTP o LivingWise® MTP 1 Application of El Paso Electric Company to Adjust Its Energy Efficiency Cost Recovery Factor and Establish Revised Cost Cap, Docket No. 50806, Order (Nov. 5, 2020). 2 Id. at Ordering Paragraph No. 2. 3 Average Growth in Demand and Weather Adjusted Peak Demand are found in Table 4, Projected Demand and Energy Savings are found in Table 5, and Proposed Budgets are found in Table 6. El Paso Electric Company 4 2021 Energy Efficiency Plan and Report 35 (D) Except as adjusted in accordance with subsection (u) of this section, a utility’s demand reduction goal in any year shall not be lower than its goal for the prior year, unless the commission establishes a goal for a utility pursuant to paragraph (2) of this subsection. The demand reduction goal to be acquired in 2021 (11.16 MW) is greater than four-tenths of one percent of EPE’s 5-year average summer weather-adjusted peak demand for 2015 through 2019, which is 5.1722 MW as shown in Table 1. In accordance with section (e)(1)(D) of the EE Rule, EPE’s demand reduction goal in any year shall not be lower than its goal for the prior year. Considering the parameters established by the EE Rule, EPE’s 2022 goal should remain at 11.16 MW (0.8382% of the average summer weather-adjusted peak demand for 2016 through 2020) as shown in Table 1. The corresponding energy savings goals for all years are determined by applying a 20% conservation load factor to the demand reduction goals. Table 4 presents historical annual growth in demand. Table 5 presents projected demand reduction and energy savings by customer class and program for 2021 and 2022. El Paso Electric Company 13 2021 Energy Efficiency Plan and Report 36 e g a r e v A h t w o r G t a W M ( 5 ) r e t e M h t w o r G t a W M ( 4 ) r e t e M h t w o r G t a W M ( ) e c r u o S ) r e t e M t a h W M ( n o i t p m u s n o C y g r e n E ) e c r u o S t a W M ( d n a m e D k a e P & l a i t n e d s e R i l a i c r e m m o C m e t s y S l a t o T l a i c r e m m o C & l a i t n e d i s e R m e t s y S l a t o T r e h t a e W d e t s u d A j r e h t a e W d e t s u d A j r e h t a e W d e t s u d A j r e h t a e W d e t s u d A j l a u t c A r e h t a e W d e t s u d A j l a u t c A A N A N A N A N A N A N A N A N 2 . 8 3 5 3 . 8 5 4 . 8 5 3 . 9 3 8 . 2 2 - 6 . 8 1 1 5 . 0 6 3 . 1 3 - 0 . 6 6 5 . 8 7 8 . 7 7 A N A N 0 . 4 6 0 . 3 4 0 . 5 2 - 9 . 9 2 1 0 . 6 6 1 . 4 3 - 0 . 2 7 9 . 4 8 A N A N , 8 0 4 6 5 2 , 5 , 3 2 0 6 7 2 , 5 2 7 7 , 8 0 0 , 6 8 8 3 , 8 2 0 , 6 , 4 0 7 9 1 2 , 5 , 9 6 8 1 1 2 , 5 8 0 1 , 1 8 9 , 5 3 7 2 , 3 7 9 , 5 , 2 2 6 3 6 2 , 5 , 5 9 7 8 1 3 , 5 5 4 7 , 6 8 0 , 6 7 1 9 , 1 4 1 , 6 , 6 7 0 0 8 3 , 5 , 1 6 6 1 8 3 , 5 5 2 0 , 7 8 1 , 6 0 1 6 , 8 8 1 , 6 , 8 6 3 4 0 4 , 5 , 4 6 0 7 8 3 , 5 9 2 2 , 3 2 2 , 6 5 2 9 , 5 0 2 , 6 , 2 4 3 3 7 4 , 5 , 2 5 6 7 3 5 , 5 1 5 4 , 3 1 3 , 6 2 6 7 , 7 7 3 , 6 , 2 4 3 4 7 4 , 5 , 8 0 6 8 2 5 , 5 1 8 9 , 7 6 2 , 6 7 4 2 , 2 2 3 , 6 , 7 6 4 9 2 3 , 5 , 9 5 3 0 3 4 , 5 2 3 6 , 7 3 3 , 6 4 2 5 , 8 3 4 , 6 A N A N A N A N A N A N A N A N k a e P d n a m e D e c r u o S @ - t p O t e N s t u O 8 4 2 , 1 1 9 2 , 1 6 6 2 , 1 6 9 3 , 1 2 6 4 , 1 8 2 4 , 1 0 0 5 , 1 5 8 5 , 1 A N A N - t p O t u O r e h t a e W d e t s u d A j l a u t c A r e h t a e W d e t s u d A j l a u t c A 0 0 0 1 . 1 - 1 . 1 - 2 . 1 - 2 . 1 - 3 . 1 - A N A N 8 4 2 , 1 1 9 2 , 1 6 6 2 , 1 7 9 3 , 1 3 6 4 , 1 9 2 4 , 1 1 0 5 , 1 6 8 5 , 1 A N A N 2 5 2 , 1 9 8 2 , 1 9 7 2 , 1 7 9 3 , 1 9 5 4 , 1 6 4 4 , 1 6 1 5 , 1 6 1 6 , 1 A N A N 2 5 3 , 1 7 8 3 , 1 6 8 3 , 1 9 0 5 , 1 9 7 5 , 1 5 4 5 , 1 3 8 5 , 1 3 0 7 , 1 A N A N 7 5 3 , 1 5 8 3 , 1 8 9 3 , 1 9 0 5 , 1 5 7 5 , 1 0 6 5 , 1 6 9 5 , 1 0 3 7 , 1 A N A N r a d n e l a C r a e Y 3 1 0 2 4 1 0 2 5 1 0 2 6 1 0 2 7 1 0 2 8 1 0 2 9 1 0 2 0 2 0 2 1 2 0 2 2 2 0 2 n o i t p m u s n o C y g r e n E d n a d n a m e D n i h t w o r G l a u n n A : 4 e l b a T n i d e v o r p p a r o t c a f s s o l e n i l d n a m e d m e t s y s % 4 5 . 7 a 2 3 . 8 n a n o d e s a b s i d n a ) B ( ) 3 ( ) e ( 1 8 1 . 5 2 § C A T 6 1 i o t g n d r o c c a l d e t a u c a c l s i d n a m e d k a e p f o % 4 . 0 f o l a o G d n a m e D 2 2 0 2 e h T : w o e b l n w o h s s a 8 5 0 0 5 8 0 3 6 4 . o N t e k c o D t r o p e R d n a n a P y c n e c i f f i l E y g r e n E 1 2 0 2 4 1 y n a p m o C c i r t c e E o s a P l l E . 8 5 0 0 5 8 0 3 6 4 . o N t e k c o D n i d e v o r p p a s a r o t c a f s s o l e n i l d n a m e d m e t s y s % 4 5 . 7 2 3 . 8 e h t s e d u c n l i 2 2 0 2 o t 0 2 0 2 o t 7 1 0 2 r a e y r a d n e a c l r o f t r e e m t a t h w o r G . ) 0 2 0 2 - 6 1 0 2 ( 2 2 0 2 d n a ) 9 1 0 2 - 5 1 0 2 ( 1 2 0 2 r o f s r e m o t s u c l i a c r e m m o c d n a l a i t n e d s e r i r o f d n a m e d n i h t w o r g l a c i r o i t s h r a e y - 5 e g a r e v A 4 5 . W M 6 1 . 1 1 s i l a o g 2 2 0 2 e h t , s u h t , l a o g s ’ r a e y r o i r p e h t n a h t s s e l e b t o n l l a h s l a o g n o i t c u d e r d n a m e d s y t i l i t u ’ l a , e u R E E e h t r e d n u , r e v e w o H . W M 5 4 1 4 . 5 = ) r o t c a f s s o l e n i l d n a m e d m e t s y s 4 5 7 0 2 3 8 0 . 0 - 1 ( x ) 4 0 0 . 0 x s t u O - t p O t e n e c r u o s t a d n a m e D k a e P e g a r e v A W M 4 7 4 , 1 ( . W M 4 7 4 1 = 5 , / ) 5 8 5 , 1 + 0 0 5 , 1 + 8 2 4 , 1 + 2 6 4 , 1 + 6 9 3 , 1 ( = s t u O - t p O t e n e c r u o s t a d n a m e d k a e p l i a c r e m m o c d n a l a i t n e d s e r i f o e g a r e v A 37 ENERGY EFFICIENCY REPORT V. HISTORICAL DEMAND GOALS AND ENERGY TARGETS FOR PREVIOUS FIVE YEARS Table 7 documents EPE's actual demand reduction goals and energy targets for the previous five years (2016-2020) calculated in accordance with 16 TAC § 25.181. Table 7: Historical Demand Savings Goals and Energy Targets (at Meter) Calendar Year 20206 20198 20189 201710 201611 Demand Goals (kW) Energy Targets (kWh) 11,160 19,552,320 Actual Demand Reduction (kW) 20,7437407 Actual Energy Savings (kWh) 30,669,898704,424 11,160 19,552,320 19,424 24,825,792 11,160 19,552,320 16,846 20,726,306 11,160 19,552,320 15,285 23,311,792 11,160 19,552,320 12,790 22,912,026 6 2020 demand goal and energy target as reported in EPE’s EEPR Errata filed July 15, 2020 under Project No. 50666. 2020 actual demand reduction and energy savings reported in Project No. 51672. 7 2020 actual demand reduction at the source is calculated as follows: 20,743740 kW at meter * (1/(1-0.08320754)) line losses = 22,626431 kW at the source. 8 2019 demand goal and energy target as reported in EPE’s EEPR Errata filed July 26, 2019, under Project No.49297. 2019 actual demand reduction and energy savings reported in Project No. 50666. 9 2018 demand goal and energy target as reported in EPE’s EEPR filed April 2, 2018, under Project No. 48146. 2018 actual demand reduction and energy savings reported in Project No. 49297. 10 2017 demand goal and energy target as reported in EPE’s EEPR filed April 3, 2017, under Project No. 46907. 2017 actual demand reduction and energy savings reported in Project No. 48146. 11 2016 demand goal and energy target as reported in EPE’s EEPR filed April 1, 2016, under Project No. 45675. 2016 actual demand reduction and energy savings reported in Project No. 46907. El Paso Electric Company 18 2021 Energy Efficiency Plan and Report 38 VI. PROJECTED, REPORTED AND VERIFIED DEMAND AND ENERGY SAVINGS Table 8: Projected versus Reported Savings for 2019 and 2020* 2019 Projected Savings Reported and Verified Savings Customer Class and Program Commercial Small Comm. Solutions MTP Large C&I Solutions MTP Texas SCORE MTP Load Management SOP Residential Residential Solutions MTP LivingWise® MTP Texas Appliance Recycling Residential Load Management MTP Hard-to-Reach Hard-to-Reach Solutions MTP Total at Meter kW kWh kWh kW 10,241 20,095,620 16,635,216 15,626 730 3,197,400 818 3,232,821 11,493,121 10,569,816 2,395 2,011 500 2,847,000 940 5,352,469 7,000 21,000 11,473 17,209 3,617,344 2,714 3,304,214 3,017 545 954,840 601 1,228,399 200 727,600 572 1,475,680 195 1,579,200 107 868,560 1,774 42,574 1,736 44,705 800 1,051,200 781 1,112,828 800 1,051,200 781 1,112,828 24,825,792 20,990,630 19,424 13,755 2020 Projected Savings Reported and Verified Savings Customer Class and Program Commercial Small Comm. Solutions MTP Large C&I Solutions MTP Texas SCORE MTP Load Management SOP Residential Marketplace Pilot MTP Residential Residential Solutions MTP LivingWise® MTP Texas Appliance Recycling MTP Residential Marketplace Pilot MTP Residential Load Management MTP Hard-to-Reach Hard-to-Reach Solutions MTP Total at Meter 5,375 4,323,399 3,732 kW kW kWh 25 45,878 10,569,816 3,615 16,681,094 16,044 10,266 730 2,011 500 kWh 23,664,620 3,197,400 750 2,925,568 15,054,617 2,847,000 1,191 5,197,201 7,000 21,000 10,397 40,975 91 446,259 5,736,975 954,840 734 1,219,380 727,600 326 855,290 1,579,200 77 620,400 871,679 627 2,152,247 190,080 1,968 889,658 800 1,051,200 964 1,302,829 1,051,200 964 1,302,829 800 30,704,424 16,441 22,055,693 20,740 545 200 195 475 3,960 ** Savings have not yet been verified by EM&V Evaluator for PY 2020. El Paso Electric Company 19 2021 Energy Efficiency Plan and Report 39 Table 10: Program Funding for Calendar Year 2020 Total Projected Budget Number of Participants Actual Funds Expended (Incentives) Actual Funds Expended (Admin & R&D) Total Funds Expended Funds Committed (Not Expended) Funds Remaining Commercial $ 2,451,511 $ 461,115 78 Small Commercial Solutions MTP $ 1,005,396 47 Large C&I Solutions MTP $ 510,000 11 Texas SCORE MTP Comm. Load Management SOP $ 460,000 12 Residential Marketplace Pilot MTP $ 15,000 52 200 $ 3,121,640 $ 470,425 $ 1,512,746 $ 704,020 $ 423,754 $ 10,695 $ 1,511,346 10,119 $ 1,120,183 $ 315,000 906 $ 354,427 Residential Solutions MTP LivingWise® MTP $ 346,346 4,645 $ 179,994 Texas Appliance Recycling MTP $ 255,000 540 $ 99,150 Residential Marketplace Pilot MTP $ 285,000 982 $ 203,212 Residential $ - $ 3,121,640 $ - $ (670,129) $ (9,310) $ 470,425 $ (507,350) $ 1,512,746 $ (194,020) $ 704,020 $ 36,246 $ 423,754 $ 4,305 $ 10,695 $ 1,827 $ 1,122,010 $ - $ 389,336 $ (39,427) $ 166,352 $ 155,850 $ 81,788 $ 354,427 $ 179,994 $ 99,150 $ 203,212 Hard-to-Reach Hard-to-Reach Solutions MTP Residential Load Management MTP $ 310,000 3,046 $ 283,400 $ 600,000 1,215 $ 664,708 $ 600,000 1,215 $ 664,708 $ 87,793 $ 25,000 $ 4,675,650 Administration Research and Development Subtotal 11,534 $ 4,906,531 $ 1,827 $ 285,227 $ 24,773 - $ 664,708 $ - $ (64,708) $ (64,708) $ 13,043 $ 25,000 $ 4,983,108 $ - $ (307,458) $ 664,708 $ 74,750 $ 74,750 $ 76,577 EM&V EECRF Proceeding Expenses (EPE & Municipal expenses)* Total $ 58,364 $ 150,000 $ 58,364 $ 58,364 $ - $ 38,682 $ 38,682 $ 111,318 $ 4,884,014 11,534 $ 4,906,531 $ 173,623 $ 5,080,154 $ - $ (196,140) * Actual EECRF proceeding expenses of $40,54038,682, consists of $33,57531,717 in EPE proceeding expenses and $6,965 in municipal proceeding expenses. ** Residential Marketplace Pilot MTP is also listed under the Commercial sector due to the Upstream/Midstream Program Cross-Sector Savings guidance memo issued by Tetra Tech to calculate and allocate savings at the sector-level for upstream and midstream programs. El Paso Electric Company 22 2021 Energy Efficiency Plan and Report 40 IX. PROGRAM RESULTS FOR MTPs A. Market Transformation Programs Small Commercial Solutions MTP The 2020 projected savings for the Small Commercial Solutions MTP were 730 kW. There were 78 participants completed during 2020 that reduced demand by 750 kW and saved 2,925,568 kWh in energy. Large C&I Solutions MTP The 2020 projected savings for the Large C&I Solutions MTP were 2,011 kW. There were 47 participants completed during 2020 that reduced demand by 3,607615 kW and saved 15,019,882054,617 kWh in energy. Texas SCORE MTP The 2020 projected savings for the Texas SCORE MTP were 500 kW. There were 11 participants in this program that reduced demand by 1,191 kW and saved 5,197,201 kWh in energy. Residential Solutions MTP The 2020 projected savings for the Residential Solutions MTP were 545 kW. There were 906 participants in this program that reduced demand by 734 kW and saved 1,219,380 kWh in energy. LivingWise® MTP The 2020 projected savings for the LivingWise® MTP were 200 kW. There were 4,645 kits provided in this program that reduced demand by 326 kW and saved 855,290 kWh in energy. Hard-to-Reach Solutions MTP The 2020 projected savings for the Hard-to-Reach Solutions MTP were 800 kW. There were 1,215 participants in this program that reduced demand by 964 kW and saved 1,302,829 kWh in energy. Appliance Recycling MTP The 2020 projected savings for the Appliance Recycling MTP were 195 kW. There were 540 participants in this program that reduced demand by 77 kW and saved 620,400 kWh in energy. Residential Marketplace Pilot MTP The 2020 projected savings for the Residential Marketplace MTP were 500 kW. There were 1,034 participants in this program that reduced demand by 718 kW and saved 2,598,506 kWh in energy. Residential Load Management MTP The 2020 projected savings for the Residential Load Management MTP were 3,960 kW. There were 3,046 participants in this program that reduced demand by 1,981968 kW and saved 889,867658 kWh in energy. El Paso Electric Company 23 2021 Energy Efficiency Plan and Report 41 XI. REVENUE COLLECTED THROUGH EECRF In 2020, EPE collected a total of $5,308,925 under Rate Schedule No. 97 – Energy Efficiency Cost Recovery Factor. XII. OVER/UNDER RECOVERY OF ENERGY EFFICIENCY PROGRAM COSTS In 2020, EPE under-recovered an amount of $471,478 as shown in Table 13. Docket No. 49496 ordered the recovery of EM&V costs of $58,364 for program year 2020. Table 13: Authorized and Actual Recovery Amounts Description Authorized in Docket No. 49496 Actual January 1 – December 31, 2020 Energy Efficiency Costs Program Year 2020 EM&V Costs 2018 (Over)/Under Recovery 2018 Performance Bonus 2018 EECRF Proceeding Costs 2020 Total Costs 2020 EECRF Revenues 2020 (Over)/Under Recovery $ 4,675,650 $ 4,983,108 $ 58,364 $ 58,364 $ (260,655) $ (260,655) $ 810,663 $ 810,663 $ 188,923 $ 188,923 $ 5,472,945 $ 5,780,403 $ 5,308,925 $ 471,478 XIII. UNDERSERVED COUNTIES EPE serves customers in three Texas counties: Culberson, Hudspeth, and El Paso. During 2020, the majority of energy efficiency projects were installed in El Paso County. EPE has defined Underserved Counties as any county in the Texas EPE service territory where demand or energy savings were not reported in its 2020 EPE energy efficiency programs. Based on this definition, EPE had no Underserved Counties in 2020. Table 14: 2020 Energy Efficiency Activities by County County # of Participants El Paso County Culberson Hudspeth Total 11,396 135 3 11,534 Reported Savings kWh kW 20,379.02 356.62 4.14 20,739.77 29,912,517 781,951 9,956 30,704,424 El Paso Electric Company 25 2021 Energy Efficiency Plan and Report 42 APPENDIX A: REPORTED DEMAND AND ENERGY REDUCTION BY COUNTY Program Savings by County * All programs funded through EPE’s EECRF. Small Commercial Solutions MTP County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total 72 6 0 78 Large C&I Solutions MTP kW kWh 689.95 59.88 0 749.83 2,597,143 328,425 0 2,925,568 County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total Texas SCORE MTP 47 0 0 47 kW kWh 3,606.54615.23 15,019,882054,617 0 0 0 0 3,606.54615.23 15,019,882054,617 County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total 11 0 0 11 Commercial Load Management SOP kW 1,191.18 kWh 5,171197,201 0 0 0 0 1,191.18 5,197,201 County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total 12 0 0 12 kW kWh 10,396.05397.00 40,975 0 0 0 0 10,396.05397.00 40,975 El Paso Electric Company A-1 2021 Energy Efficiency Plan and Report 43 Residential Solutions MTP County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total LivingWise® MTP 905 1 0 906 kW kWh 727.96 6.34 0 734.30 1,206,914 12,466 0 1,219,380 County # of Kits Reported Savings El Paso County Culberson County Hudspeth County Total 4,645 0 0 4,645 Hard-to-Reach Solutions MTP kW kWh 326.2726 855,290 0 0 0 0 326.2726 855,290 County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total 1,089 124 2 1,215 Appliance Recycling MTP kW kWh 671.87 288.35 3.46 963.68 853,023 439,861 9,945 1,302,829 County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total 540 0 0 540 Residential Marketplace Pilot MTP kW kWh 76.56 0 0 76.56 620,400 0 0 620,400 County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total 1,033 1 0 1,034 kW kWh 718.08 0.00 0 718.08 2,597,340 1,166 0 2,598,506 El Paso Electric Company A-1 2021 Energy Efficiency Plan and Report 44 Residential Load Management MTP County # of Participants Reported Savings El Paso County Culberson County Hudspeth County 3,042 3 1 kW kWh 1,977.97964.92 889,824615 2.05 0.68 33 11 Total 3,0461,034 1,980.70967.65 889,867658 * Totals may not tie due to rounding. El Paso Electric Company A-1 2021 Energy Efficiency Plan and Report 45

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