Excelerate Energy
Annual Report 2022

Plain-text annual report

E b A S * Filing Receipt Received - 2022-04-28 03:18:23 PM Control Number - 52949 ItemNumber - 10 P.O. Box 982 El Paso, Texas 79960-0982 (915)543-2057 (C El Paso Electric April 28,2022 Ms. Ana Trevifio Commission Filing Clerk Public Utility Commission of Texas 1701 N. Congress Ave P.O. Box 13326 Austin, TX 78711 Re: Project No. 52949 - El Paso Electric Company 2021 Energy Efficiency Plan and Report Pursuant to 16 TAC § 25.181 and 25.183 Dear Ms. Trevifio: On April 1, 2022, El Paso Electric Company ("EPE") filed its 2022 Energy Efficiency Plan and Report ("EEPR"). EPE is hereby filing an errata to that report. The errata is based on three changes. Firstly, there was a change to the verified savings for 2021 that affected Tables 7, 8, 14, and the Tables in Appendix A. Secondly, there was a change to the incentives in the 2021 Residential Load Management MTP that affected Tables 9, 10, 11, and 13. Thirdly, there was a revision to the weather adjusted data that affected Table 4. These changes are also reflected in the text of the document as applicable. At the end of this EEPR Errata are the redlined pages indicating the specific changes made to the EEPR filed April 1, 2022. If there are any questions regarding this filing, please contact me at 915-494-6784. Sincerely, l t f L-- Nathaniel Castillo Regulatory Case Management El Paso Electric Company 2022 Energy Efficiency Plan and Report 16 Texas Administrative Codes § 25.181 and § 25.183 April 28,2022 - Errata Project No. 52949 / ' la Lomponq EN Paso Electric 0 \ 1 TABLE OF CONTENTS INTRODUCTION ENERGY EFFICIENCY PLAN AND REPORT ORGANIZATION EXECUTIVE SUMMARY ENERGY EFFICIENCY PLAN I. 2022 PROGRAMS 2022 Program Portfolio....................................................................... A. Existing Programs............................................................................... B. Research and Development................................................................. C. New Program(s) for 2022 and 2023..................................................... D. E. Discontinued Program(s) for 2022 and 2023....................................... F. Generallmplementation Process........................................................ G. Outreach Activities.............................................................................. Existing Demand Side Management (DSM) Contracts or Obligations .. H. Il. CUSTOMER CLARRFR Ill. PROJECTED ENERGY EFFICIENCY SAVINGS AND GOALS.. IV. PROGRAM BUDGETS V. HISTORICAL DEMAND GOALS AND ENERGY TARGETS FOR PREVIOUS FIVE YEARS VI. PROJECTED, REPORTED AND VERIFIED DEMAND AND ENERGY SAVINGS...20 VII. HISTORICAL PROGRAM EXPENDITURFR 21 Vlll. PROGRAM FUNDING AND EXPLANATION OF ADMINISTRATION COSTS FOR CALENDAR YEAR 2021 IX. PROGRAM RESULTS FOR MTPs X. CURRENT ENERGY EFFICIENCY COST RECOVERY FACTOR (EECRF) ...... XI. REVENUE COLLECTED THROUGH EECRF XII. OVER/UNDER RECOVERY OF ENERGY EFFICIENCY PROGRAM COSTS... XIII. UNDERSERVED COUNTIFR 26 ACRONYMS 26 GLOSSARY APPENDIX A: REPORTED DEMAND AND ENERGY REDUCTION BY COUNTY...... A-1 El Paso Electric Company 2022 Energy Efficiency Plan and Report 3 INTRODUCTION 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 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 in program year, subparagraph (C) of this paragraph for each subsequent program year. the utility shall meet the energy efficiency goal described 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 under 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 2021 and its projections for 2022 and 2023 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 2022 Energy Efficiency Plan and Report 4 ENERGY EFFICIENCY PLAN AND REPORT ORGANIZATION This EEPR consists of the following information: Executive Summary • The Executive Summary highlights EPE's reported achievements for 2021 and EPE's plans for achieving its 2022 and 2023 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 Il explains EPE's targeted customer classes, specifying the size of each class and the method for determining those class sizes. • Section Ill 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 2022 and 2023 by program for each customer class. Energy Efficiency Report • Section V documents EPE's demand reduction goals for each of the previous five years (2017-2021) 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 2020 and 2021. • Section VII details EPE's incentive and administration expenditures for the previous five years (2017-2021) detailed by program for each customer class. • Section VI Il compares EPE's actual and budgeted program costs for 2021 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 2021 EECRF. • Section XII details the over/under recovery of EPE's energy efficiency program costs for 2021. • Section XII I reports the number of customers served and the savings relative to the three counties served by EPE in Texas. El Paso Electric Company 2 2022 Energy Efficiency Plan and Report 5 Acronyms - 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 2022 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 2022, as established pursuant to 16 TAC § 25.181(e)(3). The Final Order of Docket No. 520811 issued on December 16, 2021, established the EECRF rates applicable to EPE for 2022. 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 2023 demand reduction goal should remain at 11.16 MW The Final Order of Docket No. 52081 also established an energy efficiency program budget for 2022 of $5,129,232.2 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 2022 & 2023 Projected Goals, Savings and Budgets3 Calendar Year Average Growth in Demand (MW at Meter) Goal Metric: Goal Metric: .4%of 5-year 30%of 5-year Average Average Peak Growth in Demand (MW Demand (MW at Meter) at Meter)* Demand Goal (MW) Energy Goal (MWhr Projected MW Projected MWh Savings (at Savings (at Meter) Meter) Proposed Budget (000'S) *** 2022 2023 57.4 22.0 17.21 6.60 5.45 5.54 11.16 11.16 19,552 19,552 19.827 31.207 26,882 27,125 $5,286 $5,493 * The 2023 Demand Goal of 0.4% of peak demand (5.54 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; (1,497 MW Average Peak Demand at Source Net Opt-Outs x 0.004) x (1-0.0754 system demand line loss factor). However, underthe EE Rule, a utility's demand reduction goal shall not be less than the prior year's goal, thus, the 2023 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 2021, EPE achieved a demand reduction of 27,325 kW, which was 245% 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 2022 and 2023, 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&1 Solutions MTP o Texas SCORE MTP o Residential Solutions MTP 1 Application of El Paso Electric Company to Adjust Its Energy Efficiency Cost Recovery Factor and Establish Revised Cost Cap , Docket No . 52081 , Order ( Dec . 16 , 2021 ). 2 /d. 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 2022 Energy Efficiency Plan and Report 7 o Living\Mse® MTP o Future\Mse® Pilot MTP 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 Future\Mse® 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. Note - Totals in tables may not tie due to rounding. El Paso Electric Company 5 2022 Energy Efficiency Plan and Report 8 ENERGY EFFICIENCY PLAN I. 2022 PROGRAMS A. 2022 Program Portfolio EPE plans to continue the implementation of one SOP and ten MTPs in 2022. 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: 2022 Energy Efficiency Program Portfolios Program Target M arket Application Small Commercial Solutions MTP Large C&1 Solutions MTP Texas SCORE MTP Commercial Load Management SOP Small Commercial (<100kW) Large Commercial and Industrial (2100k\AO 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 Living\Mse® MTP Future\Mse® Pilot MTP Residential Residential Educational; Retrofit 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 2022 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 to customers of up to $400 per kW reduced, generally through participating contractors, for eligible measures that are installed in new or retrofit applications. Additionally, beginning in 2022, the program will pay a $500 cash incentive per unit for the installation of eligible high-efficient evaporative air conditioning units. This program also provides non-cash incentives that include technical assistance, education, and marketing materials. The program 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 2022 and 2023. Large Commercial & Industrial Solutions MTP The Large C&1 Solutions Program offers incentives to commercial customers with a peak demand of 100 kW or greater at one facility or an aggregate demand of at least 250 kW at multiple facilities operated by the same customer. Local government entities that are primarily used for industrial applications may qualify for participation in the Large C&1 Solutions Program. The program pays a cash incentive of up to $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&1 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 2022 and 2023. Texas SCORE MTP The Texas SCORE Program offers incentives to public schools, higher education, and local government customers to identify and implement energy efficiency measures. The program pays a cash incentive of up to $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 public schools, higher education, and local government customers to promote energy efficiency awareness. EPE plans to continue this program in 2022 and 2023. El Paso Electric Company 7 2022 Energy Efficiency Plan and Report 10 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, and not deemed critical load, that takes service at the distribution level is eligible to participate. Critical load customers with back up generation are eligible to participate. EPE will notify its current participants of the 2022 Commercial Load Management SOP via email in April to inform them of the 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 2022 and 2023. 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 2022 and 2023. LivingWise® MTP The LivingWise® MTP teaches sixth-grade students to use energy more efficiently in their homes. The program is available at no cost to the teacher, school district, and students and serves as an effective community outreach program to improve energy efficiency awareness. The program enrolls 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 2022 and 2023. FutureWise® Pilot MTP The FutureWise® Pilot MTP teaches high-school students about the importance of saving energy, understanding an energy bill, and careers in the field of energy. The program is available at no cost to the teacher, school district, and students and serves as an effective community outreach program to improve energy efficiency awareness. The program enrolls high school students and teachers and provides them with educational materials and a FutureWise® kit that contains energy saving devices they install in their homes. EPE plans to begin this program in the fall of 2022 and continue the program in 2023. 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 2022 and 2023. El Paso Electric Company 8 2022 Energy Efficiency Plan and Report 11 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 2022 and 2023. 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 products, window air conditioners, air purifiers, energy saving kits, and advanced power strips. EPE plans to implement this program in 2022 and 2023. 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 2022 and 2023. C. Research and Development EPE has allocated $25,000 to Research and Development (R&D) for 2022. To date, no R&D funds have been expended for 2022. For 2023, R&D will be utilized for the benefit analysis of residential building envelope measures such as wall insulation and advanced wall framing techniques. This funding amount is less than 10% of EPE's 2022 total program costs in accordance with 16 TAC § 25.181(g). D. New Program(s) for 2022 and 2023 EPE is launching the FutureWise® Pilot MTP, an efficiency education program for high school students, in the fall of 2022. EPE does not currently plan to add any new programs in 2023. E. Discontinued Program(s) for 2022 and 2023 EPE does not currently plan to discontinue any programs in 2022 or 2023. El Paso Electric Company 9 2022 Energy Efficiency Plan and Report 12 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 10 2022 Energy Efficiency Plan and Report 13 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 or M&V protocol 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, levels, application procedures, program manuals, and available funding. incentive • 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 through the monthly newsletter, social media, and public outreach activities. • 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 11 2022 Energy Efficiency Plan and Report 14 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 Living\Mse® MTP. EPE will contract with AM Conservation Group to implement EPE's FutureWise® Pilot 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 12 2022 Energy Efficiency Plan and Report 15 Il. CUSTOMER CLASSES For the twelve months ending December 2021, there was an average of 303,732 residential accounts in the EPE Texas service territory. Based on the 2021 Annual Social and Economic Supplement of the U.S. Census Bureau's Current Population Survey, 26.1% of Texas families are at or below 200% of the poverty threshold. Applying this standard pursuant to 16 TAC § 25.181(c)(27), approximately 79,274 of EPE's residential accounts fall into the Hard-to-Reach Customer Class. The average number of commercial accounts in 2021 was 37,276. 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 2021. Table 3: Summary of Texas Residential and Commercial Customer Classes (2021) Customer Class Total Residential Total Hard-to-Reach Total Commercial Number of Texas Customers 303,732 79,274 37,276 Ill. PROJECTED ENERGY EFFICIENCY SAVINGS AND GOALS As reflected in PUCT Docket No. 52081, EPE's energy efficiency demand reduction goal for 2022 is 11.16 MW, which mirrors the 2021 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 13 2022 Energy Efficiency Plan and Report 16 (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 prioryear, unless the commission establishes a goal for a utility under paragraph (2) of this subsection. The demand reduction goal to be acquired in 2022 (11.16 MW) is greater than four-tenths of one percent of EPE's 5-year average summer weather-adjusted peak demand for 2016 through 2020, which is 5.45 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 2023 goal should remain at 11.16 MW (0.81% of the average summer weather-adjusted peak demand for 2017 through 2021) 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 2022 and 2023. El Paso Electric Company 14 2022 Energy Efficiency Plan and Report 17 Table 4: Annual Growth in Demand and Energy Consumption Calendar Year Peak Demand (MW at Source) Energy Consumption (MWh at Meter) Total System Residential & Commercial Total System Residential & Commercial Growth (MW at Source) Growth (MW at Meter)4 Average Growth (MW at Meter)5 Actual Weather Adjusted Actual Weather Adjusted Opt- Out 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 1,357 1,385 1,398 1,509 1,575 1,560 1,596 1,730 1,610 NA NA 1,352 1,387 1,386 1,509 1,579 1,545 1,583 1,703 1,628 NA NA 1,252 1,289 1,279 1,397 1,459 1,446 1,516 1,609 1,498 NA NA 1,248 1,291 1,266 1,397 1,463 1,429 1,501 1,580 1,517 NA NA 0 0 0 -1.1 -1.1 -1.2 -1.2 -1.3 -1.3 NA NA Peak Demand @ Source Net Opt-Outs 1,248 1,291 1,266 1,396 1,462 1,428 1,500 1,579 1,516 NA NA Actual Weather Adjusted Actual Weather Adjusted Weather Adjusted Weather Adjusted Weather Adjusted 6,028,388 6,008,772 5,276,023 5,256,408 5,973,273 5,981,108 5,211,869 5,219,704 64.0 43.0 6,141,917 6,086,745 5,318,795 5,263,622 -25.0 6,188,610 6,187,025 5,381,661 5,380,076 129.9 6,205,925 6,223,229 5,387,064 5,404,368 6,377,762 6,313,451 5,537,652 5,473,342 6,322,247 6,267,981 5,528,608 5,474,342 6,446,008 6,345,116 5,655,757 5,554,865 6,499,885 6,571,421 5,685,095 5,756,631 NA NA NA NA NA NA NA NA 66.0 -34.1 72.0 78.9 -63.0 NA NA 58.4 39.3 -22.8 118.6 60.5 -31.3 66.0 73.0 -58.2 NA NA NA NA NA NA NA NA NA NA NA 57 . 4 22.0 The 2023 Demand Goal of 0.4% of peak demand 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 as shown below: Average of residential and commercial peak demand at source net Opt-Outs = (1,462 + 1,428 + 1,500 + 1,579 + 1,516) /5= 1,497 MW. (1,498 MW Average Peak Demand at source net Opt-Outs x 0.004) x (1 - 0.0754 system demand line loss factor) = 5.54 MW However, underthe EE Rule, a utility's demand reduction goal shall not be less than the prior year's goal, thus, the 2023 goal is 11.16 MW 4 Growth at meter for calendar year 2021 to 2023 includes the 7.54% system demand line loss factor as approved in Docket No. 50058. 5 Average 5-year historical growth in demand for residential and commercial customers for 2022 (2016-2020) and 2023 (2017-2021). El Paso Electric Company 15 2022 Energy Efficiency Plan and Report 18 Table 5: Projected Demand and Energy Savings Broken Out by Program for Each Customer Class 2022 Customer CIass and Program Commercial Small Commercial Solutions MTP Large C&1 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 Total 2023 Customer CIass and Program Commercial Small Commercial Solutions MTP Large C&1 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 Total Projected Savings (at meter) kW kWh 10,541 18,208,716 730 3,197,400 2,011 10,569,816 750 7,000 50 4,270,500 21,000 150,000 8,486 7,621,590 545 200 106 195 950 954,840 727,600 494,000 1,579,200 2,850,000 6490 1,015,950 800 800 1,051,200 1,051,200 19,827 26,881,506 Projected Savings (at meter) kW kWh 10,411 17,468,496 730 3,197,400 2,011 10,569,816 620 7,000 50 3,530,280 21,000 150,000 19,996 8,605,640 545 200 106 195 950 954,840 727,600 494,000 1,579,200 2,850,000 18,000 2,000,000 800 800 1,051,200 1,051,200 31,207 27,125,336 El Paso Electric Company 16 2022 Energy Efficiency Plan and Report 19 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 2022 is $5,129,232. 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 (2021), 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 79,274 customers or 26.1% of EPE's total residential load in Texas. Avoided costs for 2022, as established by the PUCT and filed in Project No. 38578, were set at $80 per kW per year and $0.15648 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 17 2022 Energy Efficiency Plan and Report 20 Table 6: Proposed Annual Budget Broken Out by Program for Each Customer Class 2022 Incentives Admin & R&D Total Budget Commercial Small Commercial Solutions MTP Large C&1 Solutions MTP Texas SCORE MTP Commercial Load Management SOP Residential Marketplace Pilot MTP Residential Residential Solutions MTP LivingWiseTM 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 2023 Incentives Admin & R&D Total Budget Commercial Small Commercial Solutions MTP Large C&1 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 $2,411,413 $461,115 $1,005,396 $469,902 $460,000 $15,000 $2,201,346 $315,000 $346,346 $300,000 $255,000 $285,000 $700,000 $600,000 $600,000 $5,212,759 $5,212,759 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $87,793 $25,000 $112,793 $67,272 $100,000 $280,065 $2,411,413 $461,115 $1,005,396 $469,902 $460,000 $15,000 $2,201,346 $315,000 $346,346 $300,000 $255,000 $285,000 $700,000 $600,000 $600,000 $87,793 $25,000 $5,325,552 $67,272 $100,000 $5,492,824 El Paso Electric Company 18 2022 Energy Efficiency Plan and Report 21 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 (2017-2021) calculated in accordance with 16 TAC § 25.181. Table 7: Historical Demand Savings Goals and Energy Targets (at Meter) Calendar Year Demand Goals (kW) Energy Targets (kWh) Actual Demand Reduction (kW) Actual Energy Savings (kWh) 20216 20208 20199 201810 201711 11,160 19,552,320 27,3257 27,951,498 11,160 19,552,320 20,740 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 6 2021 demand goal and energytarget as reported in EPE's EEPR Errata filed April 28,2021 under Project No. 51672. 2021 actual demand reduction and energy savings reported in Project No. 52949. 7 2021 actual demand reduction at the source is calculated as follows: ,27,325 kW at meter * (1/(1-0.0754)) line losses = 29,553 kW at the source. 8 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. 9 2019 demand goal and energytarget 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. 10 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. 11 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. El Paso Electric Company 19 2022 Energy Efficiency Plan and Report 22 VI. PROJECTED, REPORTED AND VERIFIED DEMAND AND ENERGY SAVINGS Table 8: Projected versus Reported Savings for 2020 and 2021 Table 8: Projected versus Reported Savings for 2020 and 2021 (at Meter) 2020 Projected Savings Reported and Verified Savings Customer Class and Program kW kWh kW kWh Commercial Small Comm. Solutions MTP Large C&1 Solutions MTP Texas SCORE MTP Load Management SOP Residential Marketplace Pilot MTP Residential Residential Solutions MTP LivingWise® MTP Texas Appliance Recycling Residential Marketplace Pilot MTP Residential Load Management MTP Hard-to-Reach Hard-to-Reach Solutions MTP Total at Meter 10,266 730 2,011 500 7,000 25 5,375 545 200 195 475 3,960 800 800 16,441 16,681,094 3,197,400 10,569,816 2,847,000 21,000 45,878 4,323,399 954,840 727,600 1,579,200 871,679 190,080 1,051,200 1,051,200 22,055,693 16,044 750 3,615 1,191 10,397 91 3,732 734 326 77 627 1,968 964 964 20,740 23,664,620 2,925,568 15,054,617 5,197,201 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 2021 Projected Savings Reported and Verified Savings Customer Class and Program kW kWh kW kWh Commercial Small Comm. Solutions MTP Large C&1 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 10,516 730 2,011 750 7,000 25 5,375 545 200 195 475 3,960 800 800 16,691 18,104,594 3,197,400 10,569,816 4,270,500 21,000 45,878 4,323,399 954,840 727,600 1,579,200 871,679 190,080 1,051,200 1,051,200 23,479,193 16,124 728 2,043 982 12,344 26 10,084 1,115 333 90 502 8,044 1,117 1,117 27,325 17,840,092 2,954,835 11,952,274 2,810,405 12,344 110,234 8,548,911 1,932,842 1,159,617 729,252 2,094,440 2,632,759 1,562,495 1,562,495 27,951,498 El Paso Electric Company 20 2022 Energy Efficiency Plan and Report 23 VII. HISTORICAL PROGRAM EXPENDITURES Table 9 documents EPE's incentive and administration expenditures for the previous five years (2017-2021) by program for each customer class. Note that this table does not include R&D, EM&V, or general administration expenditures. R&D, EM&V, and general administration expenditures for 2021 can be found in Table 10. Table 9: Historical Program Incentive and Administration Expenditures for 2017 through 202112 Table 9: Historical Program Incentive & Administrative Expenditures for 2017 through 2021 2021 2020 2019 2018 Programs Commercial Commercial SOP Small Comm. Solutions MTP Large C&1 Solutions MTP Texas SCORE MTP Comm. Load Management SOP Residential Marketplace Pilot MTP Residential Residential Solutions MTP LivingWse® MTP Texas Appliance Recycling MTP Residential Marketplace Pilot MTP Residential Load Management MTP Hard-to-Reach Hard-to-Reach Solutions MTP Residential/Commercial Texas Appliance Recycling MTP Demand Response Pilot MTP Total Incent. $2,465,274 NA $460,529 $1,014,932 $528,379 $453,753 $7,682 $1,691,497 $484,376 $346,309 $186,240 $124,744 $549,829 $623,570 $623,570 $0 NA NA $4,780,341 Admin $0 NB $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 NB NB $0 $3,121,640 NB $470,425 $1,512,746 $704,020 $423,754 $10,695 $1,120,183 $354,427 $179,994 $99,150 $203,212 $283,400 $664,708 $664,708 $0 NB NB $4,906,531 Incent. $2,672,190 NA $502,403 $1,131,460 $597,687 $440,641 NA $796,927 $312,731 $345,534 $138,663 NA NA $571,016 $571,016 $145,658 NA $145,658 $4,185,791 $0 NA $C $C $C $0 $0 $0 $0 $C $C $C $0 $0 $0 $0 NA NA $0 Admin Incent. $2,317,476 NA $487,160 $1,006,553 $417,779 $405,984 NA $757,856 $411,547 $346,309 NA NA NA $601,732 $601,732 $287,988 $87,438 $200,551 $3,965,053 $0 NA $0 $0 $0 $0 NA $0 $0 $0 NA NA NA $0 $0 $0 NA $0 $0 Admin 2017 Incent. $2,589,932 $23,821 $487,385 $1,038,708 $652,225 $387,793 NA $585,053 $238,744 $346,309 NA NA NA $555,425 $555,425 $0 NA NA $3,730,410 $0 NA $0 $0 $0 $0 NA $0 $0 $0 NA NA NA $0 $0 $0 $0 $0 $0 Admin. $0 $0 $0 $0 $0 $0 NA $0 $0 $0 NA NA NA $0 $0 $0 NA NA $0 12 2021 expenditures are from EEPR filed in Project No. 52942, 2020 expenditures are from EEPR filed in Project No. 51672, 2019 expenditures are from EEPR Errata filed in Project No. 50666, 2018 expenditures are from EEPR filed in Project No. 49297, and 2017 expenditures are from EEPR filed in Project No. 48146. El Paso Electric Company 21 2022 Energy Efficiency Plan and Report 24 Vlll. PROGRAM FUNDING AND EXPLANATION OF ADMINISTRATION COSTS FOR CALENDAR YEAR 2021 As shown in the subtotal for the "Total Funds Expended" column of Table 10, EPE spent $4,859,607 on program expenses (excluding EM&V and EECRF Proceeding Expenses) for its PUCT-approved energy efficiency programs in 2021. These programs were funded by EPE's 2021 EECRF. These expenses account for 104% of the total forecasted 2021 program budget of $4,685,552. 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 22 2022 Energy Efficiency Plan and Report 25 Table 10: Program Funding for Calendar Year 2021 Total Projected Budget Numberof Participants Actual Funds ActuaIFunds Expended (Incentives) Expended (Admin & R&D) Total Funds Expended Funds Committed (Not Expended) Funds Remaining Commercial Small Commercial Solutions MTP Large C&1 Solutions MTP Texas SCORE MTP Comm. 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 EM&V EECRF Proceeding Expenses (EPE & Municipal expenses)* Total $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 $57,378 $100,000 $4,842,930 374 $ 173 $ $ 97 $ 37 $ 12 $ 55 19,068 $ 1,221 $ 8,937 $ 950 $ 1,038 $ 6,922 $ 437 $ 437 $ 2,465,274 460,529 1,014,932 528,379 453,753 7,682 1,691,497 484,376 346,309 186,240 124,744 549,829 623,570 623,570 19,879 $ 4,780,341 19,879 $ 4,780,341 $ $ $ $ $ $ $ - - $ $ $ $ $ $ $ $ $ $ $ $ - $ $ $ 79,266 $ $ 2,465,274 460,529 1,014,932 528,379 453,753 7,682 1,691,497 484,376 346,309 186,240 124,744 549,829 623,570 $ 623,570 79,266 79,266 56,022 85,367 220,655 $ $ $ $ 4,859,607 56,022 $ 85,367 5,000,996 $ - - - $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ - $ $ $ - $ (3,861) 586 (9,536) (8,477) 6,247 7,318 (180,151) (169,376) 37 68,760 160,256 (239,829) (23,570) (23,570) 8,527 25,000 (174,055) 14,633 (159,422) * Actual EECRF proceeding expenses of $85,367, consists of $57,124 in EPE proceeding expenses and $28,243 in municipal proceeding expenses. ** Residential Marketplace Pilot MTP is also listed underthe 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 23 2022 Energy Efficiency Plan and Report 26 Table 11: Program Comparison - Budget to Actual Expenditures P rog rams Commercial Small Commercial Solutions MTP Large C&1 Solutions MTP Texas SCORE MTP Comm. 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 Total $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 2021 Budget 2,461,413 461,115 1,005,396 519,902 460,000 2021 Expenditures 2,465,274 $ 460,529 $ 1,014,932 $ 528,379 $ 453,753 $ Percent 100.2% 99.9% 100.9% 101.6% 98.6% >10% Variance Explanation 15,000 $ 7,682 51.2% Remaining program funds were reallocated to the Residential Load Management MTP as the programs work in tangent. 1,511,346 315,000 346,346 $ $ $ 1,691,497 484,376 346,309 111.9% 153.8% Program had more participation than was anticipated. 100.0% Program did not achieve anticipated participation. Funds were reallocated to programs with higher participation. Remaining program funds were reallocated to the Residential Load Management MTP as the programs work in tangent. Additional funds were reallocated from the Residential Marketplace Pilot MTP as the programs work in tangent. 255,000 $ 186,240 73.0% 285,000 $ 124,744 43.8% 310,000 600,000 600,000 87,793 25,000 4,685,552 $ $ $ $ $ 549,829 177.4% 103.9% 103.9% 623,570 623,570 79,266 - 4,859,607 103.7% El Paso Electric Company 24 2022 Energy Efficiency Plan and Report 27 IX. PROGRAM RESULTS FOR MTPs Market Transformation Programs: Small Commercial Solutions MTP The 2021 projected savings for the Small Commercial Solutions MTP were 730 kW. There were 173 participants during 2021 that reduced demand by 728 kW and saved 2,954,835 kWh in energy. Large C&1 Solutions MTP The 2021 projected savings for the Large C&I Solutions MTP were 2,011 kW. There were 97 participants during 2021 that reduced demand by 2,043 kW and saved 11,952,274 kWh in energy. Texas SCORE MTP The 2021 projected savings for the Texas SCORE MTP were 750 kW. There were 37 participants in this program that reduced demand by 982 kW and saved 2,810,405 kWh in energy. Residential Solutions MTP The 2021 projected savings for the Residential Solutions MTP were 545 kW There were 1,221 participants in this program that reduced demand by 1,115 kW and saved 1,932,842 kWh in energy. LivingWise® MTP The 2021 projected savings for the Living\Mse® MTP were 200 kW. There were 8,937 kits provided in this program that reduced demand by 333 kW and saved 1,159,617 kWh in energy. Hard-to-Reach Solutions MTP The 2021 projected savings for the Hard-to-Reach Solutions MTP were 800 kW. There were 437 participants in this program that reduced demand by 1,117 kW and saved 1,562,495 kWh in energy. Appliance Recycling MTP The 2021 projected savings for the Appliance Recycling MTP were 195 kW. There were 950 participants in this program that reduced demand by 90 kW and saved 729,252 kWh in energy. Residential Marketplace Pilot MTP The 2021 projected savings for the Residential Marketplace MTP were 500 kW. There were 1,093 participants in this program that reduced demand by 529 kW and saved 2,204,674 kWh in energy. Residential Load Management MTP The 2021 projected savings for the Residential Load Management MTP were 3,960 kW. There were 6,922 participants in this program that reduced demand by 8,044 kW and saved 2,632,759 kWh in energy. El Paso Electric Company 25 2022 Energy Efficiency Plan and Rep*§ X. CURRENT ENERGY EFFICIENCY COST RECOVERY FACTOR (EECRF) Report for 2021 In Docket No. 50806, EPE was granted approval for recovery through its 2021 EECRF of (a) $4,685,552 in energy efficiency program costs projected to be incurred from January 1 through December 31, 2021; (b) projected cost of evaluation, measurement, and verification (EM&V) of $57,378 for program year 2021; (c) the 2019 net under-recovery revenue amount of $2,455, including interest; (d) performance incentive for 2019 of $1,175,558; (e) EPE's 2019 EECRF proceeding expenses of $56,641 ($46,364 for EPE and $10,277 for the City of El Paso); and (f) a $75,000 reduction of the residential class's EECRF requirement to true-up costs for the 2019 residential programs. The Final Order in Docket No. 50806 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 5,2020, and became effective with the first billing cycle in January 2021. The recovery of the agreed-upon EECRF amount of $5,902,584 is based on a dollar per kWh rate. The 2021 cost recovery factors by rate are listed in Table 12. Table 12: 2021 EECRF Monthly Rates Rate No. Description 01 02 07 08 09 Residential Service Rate Small Commercial Service Rate Outdoor Recreational Lighting Service Rate Governmental Street Lighting Service Rate Governmental Traffic Signal Service 11-TOU Time-Of-Use Municipal Pumping Service Rate WH Water Heating 22 24 25 34 41 46 Irrigation Service Rate General Service Rate Large Power Service Rate (excludes transmission) Cotton Gin Service Rate City and County Service Rate Maintenance Power Service For Cogeneration And Small Power Production Facilities Backup Power Service For Cogeneration And Small Power Production Facilities 47 Energy Efficiency Cost Recovery Factor ($/kWh) $ 0.000979 $ 0.000933 $ (0.000002) $ 0.000302 $ 0.000422 $ 0.000017 $ (0.000035) $ 0.000037 $ 0.000928 $ 0.001585 $ 0.000482 $ 0.003493 $ 0.000482 $ 0.000482 El Paso Electric Company 26 2022 Energy Efficiency Plan and Rep*§ XI. REVENUE COLLECTED THROUGH EECRF In 2021, EPE collected a total of $5,787,344 under Rate Schedule No. 97 - Energy Efficiency Cost Recovery Factor. XII. OVER/UNDER RECOVERY OF ENERGY EFFICIENCY PROGRAM COSTS In 2021, EPE under-recovered an amount of $287,938 as shown in Table 13. The EM&V expenses of $56,022 from Tetra Tech in their 2021 Prioritization and Cost Allocation table replaced the recovery of EM&V costs of $57,378 in Docket No. 50806 for program year 2021. A reduction of the residential class's EECRF revenue requirement in the amount of $75,000 was ordered in Docket No. 50806. Table 13: Authorized and Actual Recovery Amounts Description Authorized in Docket No. 50806 Actual January 1 - December 31, 2021 Energy Efficiency Costs Program Year 2021 EM&V Costs 2019 Over/(Under) Recovery 2019 Performance Bonus Reduction to Residential Class's EECRF Pursuant to Docket No. 50806 2019 EECRF Proceeding Costs 2021 Total Costs 2021 EECRF Revenues 2021 (Over)/Under Recovery $ $ $ $ $ $ $ 4,685,552 $ 57,378 $ 2,455 $ 1,175,558 $ (75,000) $ $ 56,641 5,902,584 $ $ $ 4,859,607 56,022 2,455 1,175,558 (75,000) 56,641 6,075,283 5,787,344 287,938 XIII. UNDERSERVED COUNTIES EPE serves customers in three Texas counties: Culberson, Hudspeth, and El Paso. During 2021, 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 2021 EPE energy efficiency programs. Based on this definition, EPE had no Underserved Counties in 2021. Table 14: 2021 Energy Efficiency Activities by County County # of Participants El Paso County Culberson Hudspeth Total 19,766 37 76 19,879 Reported Savings kWh kW 27,298.20 23.81 2.85 27,324.87 27,852,739 88,549 10,211 27,951,498 El Paso Electric Company 27 2022 Energy Efficiency Plan and Rep96 ACRONYMS C&1 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 - Ki Iowatt 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 Adm inistrative Code TRM - Texas Technical Reference Manual GLOSSARY Glossary is the same as the definitions in 16 TAC § 25.181(c). El Paso Electric Company 28 2022 Energy Efficiency Plan and Replcl 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 167 6 0 173 Large C&1 Solutions MTP kW kWh 722.19 6.17 0 728.36 2,933,988 20,847 0 2,954,835 County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total Texas SCORE MTP 97 0 0 97 kW kWh 2,042.78 0 0 2,042.78 11,952,274 0 0 11,952,274 County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total 32 5 0 37 Commercial Load Management SOP kW kWh 967.13 14.95 0 982.08 2,750,648 59,757 0 2,810,405 County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total 12 0 0 12 kW kWh 12,343.91 12,344 0 0 0 0 12,343.91 12,344 El Paso Electric Company A-1 2022 Energy Efficiency Plan and Repj~ Residential Solutions MTP County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total LivingWise® MTP 1,220 1 0 1,221 kW kWh 1,113.54 1.17 0 1,114.72 1,931,119 1,724 0 1,932,842 County # of Kits Reported Savings El Paso County Culberson County Hudspeth County Total 8,839 23 75 8,937 Hard-to-Reach Solutions MTP kW kWh 329.28 .86 2.79 332.93 1,146,901 2,984 9,732 1,159,617 County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total 437 0 0 437 Appliance Recycling MTP kW kWh 1,117.15 0 0 1,117.15 1,562,495 0 0 1,562,495 County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total 949 0 1 950 Residential Marketplace Pilot MTP kW kWh 89.93 0 0.06 89.99 728,773 0 479.23 729,252 County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total 1,091 2 0 1,093 kW kWh 528.27 0.66 0 528.93 2,201,438 3,237 0 2,204,674 El Paso Electric Company A-2 2022 Energy Efficiency Plan and Rep*§ Residential Load Management MTP County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total 6,922 0 0 6,922 * Totals may not tie due to rounding. kW kWh 8,044.02 0 0 8,044.02 2,632,759 0 0 2,632,759 El Paso Electric Company A-3 2022 Energy Efficiency Plan and Repjr~ El Paso Electric Company 2022 Energy Efficiency Plan and Report 16 Texas Administrative Codes § 25.181 and § 25.183 April 28,2022 - Errata Redline Project No. 52949 / ' la Lomponq EN Paso Electric EXECUTIVE SUMMARY The Energy Efficiency Plan portion of this EEPR details EPE's plan to meet the energy efficiency demand reduction goal for 2022, as established pursuant to 16 TAC § 25.181(e)(3). The Final Order of Docket No. 520811 issued on December 16, 2021, established the EECRF rates applicable to EPE for 2022. 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 2023 demand reduction goal should remain at 11.16 MW The Final Order of Docket No. 52081 also established an energy efficiency program budget for 2022 of $5,129,232.2 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 2022 & 2023 Projected Goals, Savings and Budgets3 Calendar Year Average Growth in Demand (MW at Meter) Goal Metric: Goal Metric: .4%of 5-year 30%of 5-year Average Average Peak Growth in Demand (MW Demand (MW at Meter) at Meter)* Demand Goal (MW) Energy Goal (MWhr Projected MW Projected MWh Savings (at Savings (at Meter) Meter) Proposed Budget (000'S) *** 2022 2023 57.4 22.0 17.21 6.60 5.45 5.54 11.16 11.16 19,552 19,552 19.827 31.207 26,882 27,125 $5,286 $5,493 * The 2023 Demand Goal of 0.4% of peak demand (5.54 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; (1,497 MW Average Peak Demand at Source Net Opt-Outs x 0.004) x (1-0.0754 system demand line loss factor). However, underthe EE Rule, a utility's demand reduction goal shall not be less than the prior year's goal, thus, the 2023 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 2021, EPE achieved a demand reduction of 28,02927,325 kW, which was 24554% 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 2022 and 2023, EPE proposes to offerthe following programs: • Standard Offer Program o Commercial Load Management SOP • Market Transformation Programs o Small Commercial Solutions MTP o Large C&1 Solutions MTP El Paso Electric Company 4 2022 Energy Efficiency Report 36 o Living\Mse® MTP o Future\Mse® Pilot MTP 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 Living\Mse® MTP. EPE will contract with AM Conservation Group to implement EPE's Future\Mse® 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. Note - Totals in tables may not tie due to rounding. El Paso Electric Company 5 2022 Energy Efficiency Report 37 Table 4: Annual Growth in Demand and Energy Consumption Calendar Year Peak Demand (MW at Source) Energy Consumption (MWh at Meter) Total System Residential & Commercial Total System Residential & Commercial G rowth ( MW at Sou rce) G rowth (MW at Meter)4 Average Growth (MW at Meter)5 Actual Weather Adjusted Actual Weather Adjusted Opt- Out 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 1,357 1,385 1,398 1,509 1,575 1,560 1,596 1,730 1,610 NA NA 1,352 1,387 1,386 1,509 1,579 1,545 1,583 1,703 1,628 NA NA 1,252 1,289 1,279 1,397 1,459 1,446 1,516 1,609 1,498 NA NA 1,248 1,291 1,266 1,397 1,463 1,429 1,501 1,580 1,517 NA NA 0 0 0 -1.1 -1.1 -1.2 -1.2 -1.3 -1.3 NA NA Peak Demand @ Source Net Opt-Outs 1,248 1,291 1,266 1,396 1,462 1,428 1,500 1,579 1,516 NA NA Actual Weather Adjusted Actual Weather Adjusted Weather Adjusted Weather Adjusted Weather Adjusted 6,028,388 6,008,772 5,276,023 5,256,408 5,973,273 5,981,108 5,211,869 5,219,704 64.0 43.0 6,141,917 6,086,745 5,318,795 5,263,622 -25.0 6,188,610 6,187,025 5,381,661 5,380,076 129.9 6,205,925 6,223,229 5,387,064 5,404,368 6,377,762 6,313,451 5,537,652 5,473,342 6,322,247 6,267,981 5,528,608 5,474,342 6,446,008 6,345,116 5,655,757 5,554,865 6,499,885 6,571,421 5,685,095 5,756,631 NA NA NA NA NA NA NA NA 66.0 -34.1 72.0 78.9 -63.0 NA NA 58.4 39.3 -22.8 118.6 60.5 -31.3 66.0 73.0 -58.2 NA NA NA NA NA NA NA NA NA NA NA 57.4 22.0 The 2023 Demand Goal of 0.4% of peak demand is calculated according to 16 TAC § 25.181(e)(3)(B) and is based on a 7.54% system demand line loss factorapproved in Docket No. 50058 as shown below: Average of residential and commercial peak demand at source net Opt-Outs = (1,462 + 1,428 + 1,500 + 1,579@@ + 1,516) /5= 1,497@ MW. (1,498 MW Average Peak Demand at source net Opt-Outs x 0.004) x (1 - 0.0754 system demand line loss factor) = 5.54 MW. However, underthe EE Rule, a utility's demand reduction goal shall not be less than the prior year's goal, thus, the 2023 goal is 11.16 MW 4 Growth at meter for calendaryear 2021 to 2023 includes the 7.54% system demand line loss factor as approved in Docket No. 50058. 5 Average 5-year historical growth in demand for residential and commercial customers for 2022 (2016-2020) and 2023 (2017-2021). El Paso Electric Company 15 2022 Energy Efficiency Plan and Report 38 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 (2017-2021) calculated in accordance with 16 TAC § 25.181. Table 7: Historical Demand Savings Goals and Energy Targets (at Meter) Calendar Year Demand Goals (kW) Energy Targets (kWh) Actual Demand Reduction (kW) Actual Energy Savings (kWh) 20216 20208 20199 201810 201711 11,160 19,552,320 2&.02927,3257 27,921,00751,498 11,160 19,552,320 20,740 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 6 2021 demand goal and energytarget as reported in EPE's EEPR Errata filed April 28,2021 under Project No. 51672. 2021 actual demand reduction and energy savings reported in Project No. 52949. 7 2021 actual demand reduction at the source is calculated as follows: 2@.02927,325 kW at meter * (1/(1-0.0754)) line losses = 30.@4529,553 kW at the source. 8 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. 9 2019 demand goal and energytarget 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. 10 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. 11 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. El Paso Electric Company 19 2022 Energy Efficiency Plan and Report 39 VI. PROJECTED, REPORTED AND VERIFIED DEMAND AND ENERGY SAVINGS Table 8: Projected versus Reported Savings for 2020 and 2021 ~ Table 8: Projected versus Reported Savings for 2020 and 2021 (at Meter) 2020 Projected Savings Reported and Verified Savings Customer Class and Program kW kWh kW kWh Commercial Small Comm. Solutions MTP Large C&1 Solutions MTP Texas SCORE MTP Load Management SOP Residential Marketplace Pilot MTP Residential Residential Solutions MTP LivingWise® MTP Texas Appliance Recycling Residential Marketplace Pilot MTP Residential Load Management MTP Hard-to-Reach Hard-to-Reach Solutions MTP Total at Meter 10,266 730 2,011 500 7,000 25 5,375 545 200 195 475 3,960 800 800 16,441 16,681,094 3,197,400 10,569,816 2,847,000 21,000 45,878 4,323,399 954,840 727,600 1,579,200 871,679 190,080 1,051,200 1,051,200 22,055,693 16,044 750 3,615 1,191 10,397 91 3,732 734 326 77 627 1,968 964 964 20,740 23,664,620 2,925,568 15,054,617 5,197,201 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 2021 Projected Savings Reported and Verified Savings Customer Class and Program kW kWh kW kWh Commercial Small Comm. Solutions MTP Large C&1 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 10,516 730 2,011 750 7,000 25 5,375 545 200 195 475 3,960 800 800 16,691 18,104,594 3,197,400 10,569,816 4,270,500 21,000 45,878 4,323,399 954,840 727,600 1,579,200 871,679 190,080 1,051,200 1,051,200 23,479,193 16,124 728 2,043 982 12,344 26 10,084 1,115 333 90 502 8,044 1,117 1,117 27,325 17,840,092 2,954,835 11,952,274 2,810,405 12,344 110,234 8,548,911 1,932,842 1,159,617 729,252 2,094,440 2,632,759 1,562,495 1,562,495 27,951,498 El Paso Electric Company 20 2022 Energy Efficiency Plan and Report 40 VII. HISTORICAL PROGRAM EXPENDITURES Table 9 documents EPE's incentive and administration expenditures for the previous five years (2017-2021) by program for each customer class. Note that this table does not include R&D, EM&V, or general administration expenditures. R&D, EM&V, and general administration expenditures for 2021 can be found in Table 10. Table 9: Historical Program Incentive and Administration Expenditures for 2017 through 202112 Table 9: Historical Program Incentive & Administrative Expenditures for 2017 through 2021 2021 2020 2019 2018 Programs Commercial Commercial SOP Small Comm. Solutions MTP Large C&1 Solutions MTP Texas SCORE MTP Comm. Load Management SOP Residential Marketplace Pilot MTP Residential Residential Solutions MTP LivingWse® MTP Texas Appliance Recycling MTP Residential Marketplace Pilot MTP Residential Load Management MTP Hard-to-Reach Hard-to-Reach Solutions MTP Residential/Commercial Texas Appliance Recycling MTP Demand Response Pilot MTP Total Incent. $2,465,274 NA $460,529 $1,014,932 $528,379 $453,753 $7,682 $1,691,497 $484,376 $346,309 $186,240 $124,744 $549,829 $623,570 $623,570 $0 NA NA $4,780,341 Admin $0 NB $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 NB NB $0 $3,121,640 NB $470,425 $1,512,746 $704,020 $423,754 $10,695 $1,120,183 $354,427 $179,994 $99,150 $203,212 $283,400 $664,708 $664,708 $0 NB NB $4,906,531 Incent. $2,672,190 NA $502,403 $1,131,460 $597,687 $440,641 NA $796,927 $312,731 $345,534 $138,663 NA NA $571,016 $571,016 $145,658 NA $145,658 $4,185,791 $0 NA $C $C $C $0 $0 $0 $0 $C $C $C $0 $0 $0 $0 NA NA $0 Admin Incent. $2,317,476 NA $487,160 $1,006,553 $417,779 $405,984 NA $757,856 $411,547 $346,309 NA NA NA $601,732 $601,732 $287,988 $87,438 $200,551 $3,965,053 $0 NA $0 $0 $0 $0 NA $0 $0 $0 NA NA NA $0 $0 $0 NA $0 $0 Admin 2017 Incent. $2,589,932 $23,821 $487,385 $1,038,708 $652,225 $387,793 NA $585,053 $238,744 $346,309 NA NA NA $555,425 $555,425 $0 NA NA $3,730,410 $0 NA $0 $0 $0 $0 NA $0 $0 $0 NA NA NA $0 $0 $0 $0 $0 $0 Admin. $0 $0 $0 $0 $0 $0 NA $0 $0 $0 NA NA NA $0 $0 $0 NA NA $0 12 2021 expenditures are from EEPR filed in Project No. 52942, 2020 expenditures are from EEPR filed in Project No. 51672, 2019 expenditures are from EEPR Errata filed in Project No. 50666, 2018 expenditures are from EEPR filed in Project No. 49297, and 2017 expenditures are from EEPR filed in Project No. 48146. El Paso Electric Company 21 2022 Energy Efficiency Plan and Report 41 Vlll. PROGRAM FUNDING AND EXPLANATION OF ADMINISTRATION COSTS FOR CALENDAR YEAR 2021 As shown in the subtotal for the "Total Funds Expended" column of Table 10, EPE spent $4,859,6074* on program expenses (excluding EM&V and EECRF Proceeding Expenses) for its PUCT-approved energy efficiency programs in 2021. These programs were funded by EPE's 2021 EECRF. These expenses account for 104% of the total forecasted 2021 program budget of $4,685,552. 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 22 2022 Energy Efficiency Plan and Report 42 Table 10: Program Funding for Calendar Year 2021 Total Projected Budget Numberof Participants Actual Funds ActuaIFunds Expended (Incentives) Expended (Admin & R&D) Total Funds Expended Funds Committed (Not Expended) Funds Remaining Commercial Small Commercial Solutions MTP Large C&1 Solutions MTP Texas SCORE MTP Comm. 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 EM&V EECRF Proceeding Expenses (EPE & Municipal expenses)* Total $2,461,41 3 $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 $57,378 $100,000 $4,842,930 374 $ 173 $ $ 97 $ 37 $ 12 $ 55 19,068 $ 1,221 $ 8,937 $ 950 $ 1,038 $ 6,922 $ 437 $ 437 $ 2,464,274 460,529 1,014,932 528,379 453,753 7,682 1,691,497 484,376 346,309 186,240 125,805 549,829 623,570 623,570 19,879 $ 4,780,341 19,879 $ 4,780,341 $ $ $ $ $ $ $ - - $ $ $ $ $ $ $ $ $ $ $ $ - $ $ $ 79,266 79,266 56,022 85,367 220,655 $ $ $ $ $ $ 2,465,274 460,529 1,014,932 528,379 453,753 7,682 1,691,497 484,376 346,309 186,240 125,805 549,829 623,570 $ 623,570 79,266 4,859,607 56,022 $ (3,861) 586 (9,536) (8,477) 6,247 7,318 (180,151) (169,376) 37 68,760 159,195 (239,829) (23,570) (23,570) 8,527 25,000 (174,055) - $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ - $ $ - - 85,367 $ 14,633 5,000,996 $ - $ (159,422) * Actual EECRF proceeding expenses of $85,367, consists of $57,124 in EPE proceeding expenses and $28,243 in municipal proceeding expenses. ** Residential Marketplace Pilot MTP is also listed underthe 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 23 2022 Energy Efficiency Plan and Report 43 Table 11: Program Comparison - Budget to Actual Expenditures P rog rams Commercial Small Commercial Solutions MTP Large C&1 Solutions MTP Texas SCORE MTP Comm. 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 Total $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 2021 Budget 2,461,413 461,115 1,005,396 519,902 460,000 2021 Expenditures 2,465,274 $ 460,529 $ 1,014,932 $ 528,379 $ 453,753 $ Percent 100.2% 99.9% 100.9% 101.6% 98.6% >10% Variance Explanation 15,000 1,511,346 315,000 346,346 $ $ $ $ 7,682 51.2% Remaining program funds were reallocated to the Residential Load Management MTP as the programs work in tangent. 1,691,497 484,376 346,309 111.9% 153.8% Program had more participation than was anticipated. 100.0% Program did not achieve anticipated participation. Funds were reallocated to programs with higher participation. Remaining program funds were reallocated to the Residential Load Management MTP as the programs work in tangent. Additional funds were reallocated from the Residential Marketplace Pilot MTP as the programs work in tangent. 255,000 $ 186,240 73.0% 285,000 $ 124,744 43.8% 310,000 600,000 600,000 87,793 25,000 4,685,552 $ $ $ $ $ $ 549,829 177.4% 623,570 623,570 79,266 - 4,859,607 103.9% 103.9% 90.3% 0.0% 103.7% El Paso Electric Company 24 2022 Energy Efficiency Plan and Report 44 IX. PROGRAM RESULTS FOR MTPs Market Transformation Programs: Small Commercial Solutions MTP The 2021 projected savings for the Small Commercial Solutions MTP were 730 kW. There were 173 participants during 2021 that reduced demand by 7298 kW and saved 2,928,5702,954,835 kWh in energy. Large C&1 Solutions MTP The 2021 projected savings for the Large C&I Solutions MTP were 2,011 kW. There were 97 participants during 2021 that reduced demand by 2,0443 kW and saved 11,918,11111,952,274 kWh in energy. Texas SCORE MTP The 2021 projected savings for the Texas SCORE MTP were 750 kW. There were 37 participants in this program that reduced demand by 9842 kW and saved 2,802,9632,810,405 kWh in energy. Residential Solutions MTP The 2021 projected savings for the Residential Solutions MTP were 545 kW There were 1,221 participants in this program that reduced demand by 1,115 kW and saved 1,932,842 kWh in energy. LivingWise® MTP The 2021 projected savings for the Living\Mse® MTP were 200 kW. There were 8,937 kits provided in this program that reduced demand by 333 kW and saved 1,159,617 kWh in energy. Hard-to-Reach Solutions MTP The 2021 projected savings for the Hard-to-Reach Solutions MTP were 800 kW. There were 437 participants in this program that reduced demand by 1,117 kW and saved 1,562,495 kWh in energy. Appliance Recycling MTP The 2021 projected savings for the Appliance Recycling MTP were 195 kW. There were 950 participants in this program that reduced demand by 90 kW and saved 729,252 kWh in energy. Residential Marketplace Pilot MTP The 2021 projected savings for the Residential Marketplace MTP were 500 kW. There were 1,093 participants in this program that reduced demand by 529 kW and saved 2,204,674 kWh in energy. Residential Load Management MTP The 2021 projected savings for the Residential Load Management MTP were 3,960 kW. There were 6,922 participants in this program that reduced demand by @@4@8,044 kW and saved 2,639,8062,632,7592,632,759 kWh in energy. El Paso Electric Company 25 2022 Energy Efficiency Plan and Rep~ XI. REVENUE COLLECTED THROUGH EECRF In 2021, EPE collected a total of $5,787,344 under Rate Schedule No. 97 - Energy Efficiency Cost Recovery Factor. XII. OVER/UNDER RECOVERY OF ENERGY EFFICIENCY PROGRAM COSTS In 2021, EPE under-recovered an amount of $287,508287,938 as shown in Table 13. The EM&V expenses of $56,022 from Tetra Tech in their 2021 Prioritization and Cost Allocation table replaced the recovery of EM&V costs of $57,378 in Docket No. 50806 for program year 2021. A reduction of the residential class's EECRF revenue requirement in the amount of $75,000 was ordered in Docket No. 50806. Table 13: Authorized and Actual Recovery Amounts Description Authorized in Docket No. 50806 Actual January 1 - December 31, 2021 Energy Efficiency Costs Program Year 2021 EM&V Costs 2019 Over/(Under) Recovery 2019 Performance Bonus Reduction to Residential Class's EECRF Pursuant to Docket No. 50806 2019 EECRF Proceeding Costs 2021 Total Costs 2021 EECRF Revenues 2021 (Over)/Under Recovery $ $ $ $ $ $ $ 4,685,552 $ 57,378 $ 2,455 $ 1,175,558 $ (75,000) $ $ 56,641 5,902,584 $ $ $ 4,859,607 56,022 2,455 1,175,558 (75,000) 56,641 6,075,283 5,787,344 287,938 XIII. UNDERSERVED COUNTIES EPE serves customers in three Texas counties: Culberson, Hudspeth, and El Paso. During 2021, 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 2021 EPE energy efficiency programs. Based on this definition, EPE had no Underserved Counties in 2021. Table 14: 2021 Energy Efficiency Activities by County County # of Participants El Paso County Culberson Hudspeth Total 19,766 37 76 19,879 Reported Savings kWh kW 27,298.20 23.81 2.85 27,324.87 27,852,739 88,549 10,211 27,951,498 El Paso Electric Company 27 2022 Energy Efficiency Plan and Rep*§ 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 167 6 0 173 Large C&1 Solutions MTP kW kWh 722.1258 6.17 0 728.3675 2,933,98807,723 20,847 0 2,954,835285570 County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total Texas SCORE MTP 97 0 0 97 kW 2,042.78·4-@2 0 0 kWh 11,952,2744@~444 0 0 2,042.78*.02 11,952,274483444 County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total 32 5 0 37 Commercial Load Management SOP kW kWh 967.13@TQ@ 14.95 0 982.080.98 2,750,64813,206 59,757 0 2,810,4050*963 County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total 12 0 0 12 kW kWh 12,343.91 12,344 0 0 0 0 12,343.91 12,344 El Paso Electric Company A-1 2022 Energy Efficiency Plan and Rep#F~ Residential Load Management MTP County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total 6,922 0 0 6,922 * Totals may not tie due to rounding. kW 8,044.02718.11 0 0 kWh 2,632,759*@@@ 0 0 8,044.02748.44 2,632,7598,806 El Paso Electric Company A-3 2022 Energy Efficiency Plan and Rep*§ The following files are not convertible: 2022 EEPR Errata Tables Final.xlsx Please see the ZIP file for this Filing on the PUC Interchange in order to access these files. Contact centralrecords@puc.texas.gov if you have any questions. 

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