Excelerate Energy
Annual Report 2023

Plain-text annual report

4 ~ L B U P ~* TEX>~ Filing Receipt Filing Date - 2023-04-28 04:49:07 PM Control Number - 54470 Item Number - 10 P.O. Box 982 El Paso, Texas 79960-0982 (915) 543-2057 /"f--...,l-r.Vi/ El Paso Electric April 28,2023 Commission Filing Clerk Public Utility Commission of Texas 1701 N. Congress Ave P.O. Box 13326 Austin, TX 78711 Re: Project No. 54470 - El Paso Electric Company 2023 Energy Efficiency Plan and Report Pursuant to 16 TAC § 25.181 and 25.183 To whom it may concern: On April 3,2023, 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. First, there was a change to the verified savings and number of participants for 2022 that affected Tables 5 through 10, Table 14, and the Tables in Appendix A. Second, EPE plans to merge the Large C&I Solutions MTP and Texas SCORE MTP into one program called Commercial Solutions MTP that will serve large commercial, industrial, and government customers in 2024. Third, there was a change to the incentives for the Residential Load Management MTP. 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 3,2023. If there are any questions regarding this filing, please contact me at 915-351-4279. Sincerely, Nathaniel Castillo Regulatory Case Management 1 El Paso Electric Company 2023 Energy Efficiency Plan and Report 16 Texas Administrative Codes § 25.181 and § 25.183 April 3,2023 (Errata April 28,2023) Project No. 54470 Lonranq El Paso Electric 0 \ 1 TABLE OF CONTENTS INTRODUCTION ENERGY EFFICIENCY PLAN AND REPORT ORGANIZATION EXECUTIVE SUMMARY ENERGY EFFICIENCY PLAN I. 2023 PROGRAMS A. 2023 Program Portfolio B. Existing Programq C. Research and Development D. New Program(s) for 2023 and 2024 E. Discontinued Program(s) for 2023 and 202d F. General Implementation Proceqq G. Outreach Activities 1 9 4 6 6 6 7 9 9 9 10 11 H. Existing Demand Side Management (DSM) Contracts or Obligations ............11 12 CUSTOMER CLASRFR Il. Ill. PROJECTED ENERGY EFFICIENCY SAVINGS AND GOALS IV. PROGRAMBUDGETS 12 17 V. HISTORICAL DEMAND GOALS AND ENERGY TARGETS FOR PREVIOUS FIVE YEARS..19 VI. PROJECTED, REPORTED AND VERIFIED DEMAND AND ENERGY SAVINGS...................20 VII. HISTORICAL PROGRAM EXPENDITURES 91 Vlll. PROGRAM FUNDING AND EXPLANATION OF ADMINISTRATION COSTS FOR CALENDAR 93 YEAR ?n?9 XI. REVENUE COLLECTED THROUGH EECRF 98 XII. OVER/UNDER RECOVERY OF ENERGY EFFICIENCY PROGRAM COSTS.........................28 XIII. UNDERSERVED COUNTIES 98 99 ACRONYMS 99 GLOSSARY APPENDIX A: REPORTED DEMAND AND ENERGY REDUCTION BY COUNTY......................... A-1 El Paso Electric Company 2023 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 2022 and its projections for 2023 and 2024 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 2023 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 2022 and EPE's plans for achieving its 2023 and 2024 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 2023 and 2024 by program for each customer class. Energy Efficiency Report • Section V documents EPE's demand reduction goals for each of the previous five years (2018-2022) 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 2021 and 2022. • Section VII details EPE's incentive and administration expenditures for the previous five years (2018-2022) detailed by program for each customer class. • Section Vlll compares EPE's actual and budgeted program costs for 2022 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 2022 EECRF. • Section XII details the over/under recovery of EPE's energy efficiency program costs for 2022. • 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 2023 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 2023 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 2023, as established pursuant to 16 TAC § 25.181(e)(3). The Final Order of Docket No. 535511 issued on December 15, 2022, established the EECRF rates applicable to EPE for 2023. 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 2024 demand reduction goal should remain at 11.16 MW The Final Order of Docket No. 53551 also established an energy efficiency program budget for 2023 of $5,283,153.2 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 2023 & 2024 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 (MWh) ** Projected Projected MW MWh Savings (at Savings (at Meter) *** Meter) **** Proposed Budget (000'S) ***** 2023 2024 22.0 24.2 6.60 7.26 5.54 5.63 11.16 11.16 19,552 31.207 19,552 27.179 27,125 25,942 $5,493 $5,543 * The 2024 Demand Goal of 0.4% of peak demand (5.63 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; (1,523 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 2024 goal is 11.16 MW ** Calculated using a 20% conservation load factor. *** Due to changed parameters, EPE is projecting total demand savings of 23,968 kW for 2023. **** Due to changed parameters, EPE is projecting total energy savings of 25,977,489 kWh for 2023. ***** Proposed budget includes the overall program budget, EM&V expenses, and EECRF proceeding expenses. In 2022, EPE achieved a demand reduction of 21,762 kW, which was 195% 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 2023 and 2024, 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 . 53551 , Order ( Dec . 15 , 2022 ). 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 2023 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 2023 Energy Efficiency Plan and Report 8 ENERGY EFFICIENCY PLAN I. 2023 PROGRAMS A. 2023 Program Portfolio EPE plans to continue the implementation of one SOP and ten MTPs in 2023. 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: 2023 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 2023 Energy Efficiency Plan and Report 9 B. Existing Programs Small Commercial Solutions MTP The Small Commercial Solutions Program offers incentives to commercial customers with an annual peak demand of less than 100 kW at one facility or a total annual peak 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, the program pays 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 2023 and 2024. Large Commercial & Industrial Solutions MTP The Large C&1 Solutions Program offers incentives to commercial customers with an annual peak demand of 100 kW or greater at one facility or an aggregate annual peak demand of 250 kW or greater 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 2023 and 2024. 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 2023 and 2024. El Paso Electric Company 7 2023 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 2023 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 2023 and 2024. Residential Solutions MTP The Residential Solutions Program offers incentives and rebates to residential customers for installing eligible energy efficiency measures. This program also provides participants 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 2023 and 2024. 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 2023 and 2024. 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 planned to begin this program in the fall of 2022, but due to contracting and design delays there was not sufficient time to allow for the order and distribution of kits in the fall semester of 2022. EPE has begun the distribution of kits for this program in the current 2023 spring semester and plans to continue the program in 2024. 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 refrigeration appliances. EPE plans to continue this program in 2023 and 2024. El Paso Electric Company 8 2023 Energy Efficiency Plan and Report 11 Hard-to-Reach Solutions MTP The Hard-to-Reach Solutions MTP offers incentives and rebates 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. This program also provides participants 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 2023 and 2024. 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 continue implementation of this program in 2023 and 2024. 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 2023 and 2024. C. Research and Development EPE has allocated $25,000 to Research and Development (R&D) for 2023. To date, no R&D funds have been expended, but will be utilized to conduct an in-depth review of potential measures to determine which measures produce cost-effective savings opportunities. This funding amount is less than 10% of EPE's 2023 total program costs in accordance with 16 TAC § 25.181(g). D. New Program(s) for 2023 and 2024 EPE does not currently plan to add any new programs in 2023 or 2024. However, EPE has launched the Future\Mse® Pilot MTP, an efficiency education program for high school students, in the spring semester of 2023. E. Discontinued Program(s) for 2023 and 2024 EPE does not currently plan to discontinue any programs in 2023 or 2024. However, EPE plans to merge the Large C&1 Solutions MTP and Texas SCORE MTP into one program called Commercial Solutions MTP that will serve large commercial, industrial, and government customers in 2024. El Paso Electric Company 9 2023 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. 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. El Paso Electric Company 10 2023 Energy Efficiency Plan and Report 13 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 levels, application participation, project eligibility, end-use measure eligibility, 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. 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 11 2023 Energy Efficiency Plan and Report 14 Il. CUSTOMER CLASSES For the twelve months ending December 2022, there was an average of 307,601 residential accounts in the EPE Texas service territory. Based on the 2022 Annual Social and Economic Supplement of the U.S. Census Bureau's Current Population Survey, 26.2% of Texas families are at or below 200% of the poverty threshold. Applying this standard pursuant to 16 TAC § 25.181(c)(27), approximately 80,591 of EPE's residential accounts fall into the Hard-to-Reach Customer Class. The average number of commercial accounts in 2022 was 33,831. 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 2022. Table 3: Summary of Texas Residential and Commercial Customer Classes (2022) Customer Class Total Residential Total Hard-to-Reach Total Commercial Number of Texas Customers 307,601 80,591 33,831 Ill. PROJECTED ENERGY EFFICIENCY SAVINGS AND GOALS As reflected in PUCT Docket No. 53551, EPE's energy efficiency demand reduction goal for 2022 is 11.16 MW, which mirrors the 2022 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 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. (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 2023 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 prioryear, unless the commission establishes a goal for a utility under paragraph (2) of this subsection. The demand reduction goal to be acquired in 2023 (11.16 MW) is greater than four-tenths of one percent of EPE's 5-year average summer weather-adjusted peak demand for 2017 through 2021, which is 5.54 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 2024 goal should remain at 11.16 MW (0.79% of the average summer weather-adjusted peak demand for 2018 through 2022) 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 2023 and 2024. El Paso Electric Company 13 2023 Energy Efficiency Plan and Report 16 Table 4: Annual Growth in Demand and Energy Consumption Peak Demand (MWat Source) Energy Consumption (MV\Ih at Meter) Total System Residential & Conmercial Total System Residential & Conniercial G rowth Growth (MWat (MWat Source) Meter)4 Average G rowth (MWat Meter)5 V\kather Weather Peak Demand @ Source Net Actual Adjusted Actual Adjusted Opt-Out Opt-Outs 1,357 1,385 1,398 1,509 1,575 1,560 1,596 1,730 1,610 1,709 NA NA 1,248 1,291 1,266 1,397 1,463 1,429 1,501 1,580 1,517 1,593 NA NA 1,252 1,289 1,279 1,397 1,459 1,446 1,516 1,609 1,498 1,601 NA NA 1,352 1,387 1,386 1,509 1,579 1,545 1,583 1,703 1,628 1,702 NA NA 1,248 1,291 1,266 1,396 1,462 1,428 1,500 1,579 1,516 1,593 NA NA 0 0 0 -1.1 -1.1 -1.2 -1.2 -1.3 -1.3 0 NA NA Calendar Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Actual V\kather Adjusted Actual Weather V\kather V\kather V\kather Adjusted Adjusted Adjusted 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 6,141,917 6,086,745 5,318,795 5,263,622 6,188,610 6,187,025 5,381,661 5,380,076 6,205,925 6,223,229 5,387,064 5,404,368 5,537,652 5,473,342 6,377,762 6,313,451 6,322,247 6,267,981 5,528,608 5,474,342 6,446,008 6,345,116 5,655,757 5,554,865 5,685,095 5,756,631 6,499,885 6,571,421 6,676,488 6,649,552 5,847,428 5,820,492 NA NA NA NA NA NA NA NA 64.0 43.0 -25.0 129.9 66.0 -34.1 72.0 78.9 -63.0 77.3 NA NA 58.4 39.3 -22.8 118.6 60.5 -31.3 66.0 73.0 -58.2 71.5 NA NA NA NA NA NA NA NA NA NA NA NA 22.0 24.2 The 2024 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 = (1,428 + 1,500 + 1,579 + 1,516 + 1593) /5= 1,523 MW. (1,523 MW Average Peak Demand at source net Opt-Outs x 0.004) x (1 - 0.0754 system demand line loss factor) = 5.63 MW However, underthe EE Rule, a utility's demand reduction goal shall not be less than the prior year's goal, thus, the 2024 goal is 11.16 MW 4 Growth at meter for calendar year 2022 to 2024 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 2023 (2017-2021) and 2024 (2018-2022). El Paso Electric Company 15 2023 Energy Efficiency Plan and Report 17 Table 5: Projected Demand and Energy Savings Broken Out by Program for Each Customer Class 2023 Customer Class 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 MTP6 Hard-to-Reach Hard-to-Reach Solutions MTP Total 2024 Customer Class and Program Commercial Small Commercial Solutions MTP Commercial Solutions 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 mete r) kW kWh 10,411 17,468,496 730 3,197,400 2,011 10,569,816 620 3,530,280 7,000 50 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 Projected Savings (at mete r) kW kWh 10,411 17,468,496 730 3,197,400 2,631 7,000 50 14,100,096 21,000 150,000 15,968 7,422,688 545 200 106 195 950 954,840 727,600 494,000 1,579,200 2,850,000 13,972 817,048 800 800 1,051,200 1,051,200 27,179 25,942,384 6 Due to Demand Response Pre-Enrollment limitations, EPE is projecting demand savings of 10,761 kW and energy savings of 852,153 kWh in the Residential Load Management MTP. EPE is projecting total portfolio demand savings of 23,968 kW and total portfolio demand savings of 23,968 kW and total portfolio energy savings of 25,977,489 kWh for Program Year 2023. El Paso Electric Company 16 2023 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 2023 is $5,325,552. 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 (2022), 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 80,726 customers or 26.2% of EPE's total residential load in Texas. Avoided costs for 2023, as established by the PUCT and filed in Project No. 38578, were set at $80 per kW per year and $0.09115 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 2023 Energy Efficiency Plan and Report 19 Table 6: Proposed Annual Budget Broken Out by Program for Each Customer Class 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 Living\MseTM 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 $67,271 $100,000 $280,064 $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 $67,271 $100,000 $5,492,823 2024 Incentives Admin & R&D Total Budget Commercial Small Commercial Solutions MTP Commercial Solutions MTP Commercial Load Management SOP Residential Marketplace Pilot MTP Residential Residential Solutions MTP Living\Mse® MTP Future\Mse® 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 $1,475,298 $460,000 $15,000 $2,251,346 $315,000 $346,346 $300,000 $255,000 $285,000 $750,000 $600,000 $600,000 $5,262,759 $5,262,759 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $87,793 $25,000 $112,793 $67,486 $100,000 $280,279 $2,411,413 $461,115 $1,475,298 $460,000 $15,000 $2,251,346 $315,000 $346,346 $300,000 $255,000 $285,000 $750,000 $600,000 $600,000 $87,793 $25,000 $5,375,552 $67,486 $100,000 $5,543,038 El Paso Electric Company 18 2023 Energy Efficiency Plan and Report 20 V. HISTORICAL DEMAND GOALS AND ENERGY TARGETS FOR PREVIOUS FIVE YEARS ENERGY EFFICIENCY REPORT Table 7 documents EPE's actual demand reduction goals and energy targets for the previous five years (2018-2022) 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) 20227 20219 202010 201gll 201812 11,160 19,552,320 21,7628 22,498,875 11,160 19,552,320 27,325 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 7 2022 demand goal and energy target as reported in EPE's EEPR Errata filed April 28,2022 under Project No. 52949. 2021 actual demand reduction and energy savings reported in Project No. 54470. 8 2022 actual demand reduction at the source is calculated as follows: 21,762 kW at meter * (1/(1-0.0754)) line losses = 23,537 kW at the source. 9 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. 10 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. 11 2019 demand goal and energy target as reported in EPE's EEPR filed July 26, 2019, under Project No. 49297.2019 actual demand reduction and energy savings reported in Project No. 50666. 12 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. El Paso Electric Company 19 2023 Energy Efficiency Plan and Report 21 VI. PROJECTED, REPORTED AND VERIFIED DEMAND AND ENERGY SAVINGS Table 8: Projected versus Reported Savings for 2021 and 2022 2021 Projected Savings Reported and Verified Savings Customer Class and Program kW kWh kW Commercial Small Comm. Solutions MTP Large C&1 Solutions MTP Texas SCORE MTP Load Management SOP Residential Marketplace Pilot MTP Residential Residential Solutions MTP LivinaWise® MTP Texas Appliance Recycling 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 kWh 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 2022 Projected Savings Customer Class and Program kW 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 FutureWise MTP Texas Appliance Recycling MTP Residential Marketplace Pilot MTP Residential Load Management MTP Hard-to-Reach Hard-to-Reach Solutions MTP Total at Meter 10,541 730 2,011 750 7,000 50 8,486 545 200 106 195 950 6,490 800 800 19,827 kWh 18,208,716 3,197,400 10,569,816 4,270,500 21,000 150,000 7,621,590 954,840 727,600 494,000 1,579,200 2,850,000 1,015,950 1,051,200 1,051,200 26,881,506 Reported and Verified Savings kW 11,210 710 1,986 771 7,676 66 9,659 852 170 - 99 481 8,056 894 894 21,762 kWh 15,085,426 2,551,236 8,182,897 3,967,728 61,479 322,086 6,163,870 1,423,945 574,910 - 802,053 2,870,266 492,696 1,249,579 1,249,579 22,498,875 El Paso Electric Company 20 2023 Energy Efficiency Plan and Report 22 VII. HISTORICAL PROGRAM EXPENDITURES Table 9 documents EPE's incentive and administration expenditures for the previous five years (2018-2022) 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 2018 through 202213 2022 2021 2020 2019 2018 Adrnin Incent. Adrnin Incent. Adrnin Incent. Admin Incent. Adrnin Programs Commercial Commercial SOP Customer Incent. $1,269,218 Implementor Incent. $1,035,247 NA NA Small Comm. Solutions MTP $277,342 $168,134 Large C&1 Solutions MTP Texas SCORE MTP Comm. Load Management SOP Residential Marketplace Pilot MTP $489,358 $525,436 $180,000 $340,177 $320,349 $2,169 $0 $1,500 $0 NA $0 $0 $0 $0 $0 $2,465,274 NA $460,529 $1,014,932 $528,379 $453,753 $7,682 Residential $875,660 $641,305 $260 $1,691,497 Residential Solutions MTP $266,314 $131,479 LivingWise® MTP Fututre\Ahse® MTP Texas Appliance Recycling MTP Residential Marketplace Pilot MTP Residential Load Management MTP Hard-to-Reach $183,559 $O $68,660 $88,103 $269,025 $256,050 $0 $O $150,660 $90,000 $269,166 $281,269 Hard-to-Reach Solutions MTP $256,050 $281,269 Residential/Commercial Texas Appliance Recycling MTP Demand Response Pilot MTP $0 NA NA $0 NA NA $0 $0 $O $0 $0 $260 $0 $0 $0 NA NA $484,376 $346,309 $186,240 $124,744 $549,829 $623,570 $623,570 $0 NA NA Tota 1 $2,400,929 $1,957,820 $260 $4,780,341 $0 NA $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 NA NA $0 $3,121,640 NA $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 NA NA $4,906,531 $0 NA $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 NA NA $0 $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 $0 $0 $0 $0 NA $0 $0 $0 NA NA NA $0 $0 $0 NA $0 $0 $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 $0 $0 $0 13 2022 expenditures are from EEPR filed in Project No. 54470, 2021 expenditures are from EEPR filed in Project No. 52949, 2020 expenditures are from EEPR filed in Project No. 51672, 2019 expenditures are from EEPR Errata filed in Project No. 50666, and 2018 expenditures are from EEPR filed in Project No. 49297. El Paso Electric Company 21 2023 Energy Efficiency Plan and Report 23 Vlll. PROGRAM FUNDING AND EXPLANATION OF ADMINISTRATION COSTS FOR CALENDAR YEAR 2022 As shown in the subtotal for the "Total Funds Expended" column of Table 10, EPE spent $4,445,648 on program expenses (excluding EM&V and EECRF Proceeding Expenses) for its PUCT-approved energy efficiency programs in 2022. These programs were funded by EPE's 2022 EECRF. These expenses account for 87% of the total forecasted 2022 program budget of $5,129,232. 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. Table 10: Program Funding for Calendar Year 2022 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&1 Solutions MTP Texas SCORE MTP Comm. 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 Demlopment Subtotal EM&V EECRF Proceeding Expenses (EPE & Municipal expenses)* Total $2,461,413 $461,115 $1,005,396 $519,902 $460,000 $15,000 $1,955,026 $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 $5,286,448 289 $ $ 92 $ 60 $ 42 11 $ $ 84 17,024 $ 1,109 $ 4,737 $ $ 1,038 $ 1,601 $ 8,539 $ 398 $ 398 $ 2,304,465 $ 445,476 1,014,794 520,177 320,349 3,669 1,516,965 $ 397,792 183,559 - 219,320 178,103 538,191 537,319 537,319 $ $ - 260 $ $ $ $ $ $ $ $ $ $ $ $ 260 $ - $ $ 86,639 $ 17,711 $ 4,358,749 $ $ $ 86,899 $ 56,891 $ 86,746 $ $ $ $ $ 2,304,465 445,476 1,014,794 520,177 320,349 3,669 1,517,225 397,792 183,559 - 219,320 178,103 538,451 537,319 537,319 86,639 4,445,648 56,891 86,746 - - - $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ - $ $ 156,948 15,639 (9,398) (275) 139,651 11,331 437,801 (82,792) 162,787 35,680 106,897 (84,771) 62,681 62,681 1,154 25,000 683,584 325 $ 13,254 17,711 $ 4,358,749 $ 230,537 $ 4,589,285 $ - $ 697,163 * Actual EECRF proceeding expenses of $86,746, consists of $64,487 in EPE proceeding expenses and $22,259 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 2023 Energy Efficiency Plan and Report 24 Table 11: Program Comparison - Budget to Actual Expenditures Programs 2022 Budget 2022 Expenditures 2,304,465 2,461,413 $ 461,115 $ 445,476 Percent >10% Variance Explanation 93.6% 96.6% Commercial Small Commercial Solutions MTP Large C&1 Solutions MTP Texas SCORE IvrrP Comm. Load IManagement SOP Residential IV~rketplace Pilot MTP Residential Residential Solutions MTP LivingWise® MTP FutureWise® MTP Texas Appliance Recycling MTP Residential IV~rketplace Pilot MTP Residential Load IV~nagement MTP Hard-to-Reach Hard-to-Reach Solutions MTP Administration Research and Development Total $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 1,005,396 $ 1,014,794 100.9% 519,902 $ 520,177 100.1% 460,000 $ 320,349 69.6% had a back-up generator fail and another relocated operations to Program had less participation than was anticipated. One participant Mexico mid-season. 15,000 $ 3,669 24.5% Constraints in the supply chain led to out of stock inventory for lighting and other Marketplace products. 1,955,026 $ 1,517,225 77.6% 315,000 346,346 $ $ 397,792 126.3% Program had more participation than was anticipated. 183,559 53.0% Program had less participation than was anticipated due to teacher attrition spurred on by Covid-19 pandemic. 300,000 $ - 0.0% Order Adopting Recommended Decision was not filed until Nov. 30, 2022, not allowing sufficient time to order and distribute kits. 255,000 $ 219,320 86.0% Program did not achieve anticipated participation. Funds were reallocated to programs with higher participation. 285,000 $ 178,103 62.5% Constraints in the supply chain led to out of stock inventory for lighting and other Marketplace products. 453,680 600,000 600,000 $ $ $ $ 87,793 25,000 $ 5,129,232 $ 538,451 118.7% The 2022 budget in Docket 53551 was not adjusted for the increase in participation. 89.6% 89.6% Program had less participation than was anticipated. 537,319 537,319 86,639 - 4,445,648 86.7% El Paso Electric Company 24 2023 Energy Efficiency Plan and Report 25 IX. PROGRAM RESULTS FOR MTPs Market Transformation Programs: Small Commercial Solutions MTP The 2022 projected savings for the Small Commercial Solutions MTP were 730 kW. There were 92 participants during 2022 that reduced demand by 710 kW and saved 2,551,236 kWh in energy. Large C&1 Solutions MTP The 2022 projected savings for the Large C&I Solutions MTP were 2,011 kW. There were 60 participants during 2022 that reduced demand by 1,986 kWand saved 8,182,897 kWh in energy. Texas SCORE MTP The 2022 projected savings for the Texas SCORE MTP were 750 kW. There were 42 participants in this program that reduced demand by 771 kW and saved 3,967,728 kWh in energy. Residential Solutions MTP The 2022 projected savings for the Residential Solutions MTP were 545 kW There were 1,109 participants in this program that reduced demand by 852 kW and saved 1,423,945 kWh in energy. LivingWise® MTP The 2022 projected savings for the Living\Mse® MTP were 200 kW. There were 4,737 kits provided in this program that reduced demand by 170 kW and saved 574,910 kWh in energy. FutureWise® MTP The 2022 projected savings for the FutureWise® MTP were 106 kW. However, as mentioned above, because of a delay in the implementation of this program, there were 0 kits provided in this program that reduced demand by 0 kW and saved 0 kWh in energy. Hard-to-Reach Solutions MTP The 2022 projected savings for the Hard-to-Reach Solutions MTP were 800 kW. There were 398 participants in this program that reduced demand by 894 kW and saved 1,249,579 kWh in energy. Appliance Recycling MTP The 2022 projected savings for the Appliance Recycling MTP were 195 kW. There were 1,038 participants in this program that reduced demand by 99 kWand saved 802,053 kWh in energy. Residential Marketplace Pilot MTP The 2022 projected savings for the Residential Marketplace MTP were 950 kW. There were 1,685 participants in this program that reduced demand by 547 kW and saved 3,192,352 kWh in energy. El Paso Electric Company 25 2023 Energy Efficiency Plan and Rep*§ Residential Load Management MTP The 2022 projected savings for the Residential Load Management MTP were 6,490 kW. There were 8,539 participants in this program that reduced demand by 8,056 kW and saved 492,696 kWh in energy. El Paso Electric Company 26 2023 Energy Efficiency Plan and Rep0 X. CURRENT ENERGY EFFICIENCY COST RECOVERY FACTOR (EECRF) Report for 2022 In Docket No. 52081, EPE was granted approval for recovery through its 2022 EECRF of (a) $5,129,232 in forecasted energy efficiency program costs projected to be incurred from January 1 through December 31, 2022; (b) projected cost of evaluation, measurement, and verification (EM&V) of $57,216 for program year 2022; (c) the 2020 net under-recovery revenue amount of $486,514, including interest; (d) performance incentive for 2020 of $2,783,387; and (e) EPE's 2020 EECRF proceeding expenses of $38,682 ($31,717 for EPE and $6,965 for the City of El Paso). The Final Order in Docket No. 52081 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 December 16,2021 and became effective with the first billing cycle in January 2022. The recovery of the agreed-upon EECRF amount of $8,495,031 is based on a dollar per kWh rate. The 2022 cost recovery factors by rate are listed in Table 12. Table 12: 2022 EECRF Monthly Rates Rate No. Description 01 EVC 02 07 08 09 Residential Service Rate Electric Vehicle Charging Rate Small Commercial Service Rate Outdoor Recreational Lighting Service Rate Governmental Street Lighting Service Rate Governmental Traffic Signal Service 11-TOU Time-Of-Use Municipal Pumping Service Rate WH 22 24 25 34 41 46 47 Water Heating Irrigation Service Rate General Service Rate Large Power Service Rate (excludes transmission) Cotton Gin Service Rate City and County Service Rate Maintenance Power Service For Cogeneration And Small Power Production Facilities Backup Power Service For Cogeneration And Small Power Production Facilities Energy Efficiency Cost Recovery Factor ($/kWh) $ 0.001453 $ 0.000000 $ 0.000290 $ 0.000000 $ 0.000000 $ ( 0.000002) $ 0.000000 $ $ 0.011989 $ 0.001406 $ 0.003197 $ 0.000082 $ 0.003001 (0.000018) $ 0.000082 $ 0.000082 El Paso Electric Company 27 2023 Energy Efficiency Plan and Rep*§ XI. REVENUE COLLECTED THROUGH EECRF In 2022, EPE collected a total of $8,579,232 under Rate Schedule No. 97 - Energy Efficiency Cost Recovery Factor. XII. OVER/UNDER RECOVERY OF ENERGY EFFICIENCY PROGRAM COSTS In 2022, EPE over-recovered an amount of $768,109 as shown in Table 13. Docket No. 52081 ordered the recovery of EM&V costs of $57,216 for the evaluation of program year 2022. Table 13: Authorized and Actual Recovery Amounts Description January 1 - December 31,2022 Enerqy Efficiency Program Year 2022 EM&V Costs 2020 Over/(Under) Recovery 2020 Performance Bonus 2020 EECRF Proceeding Costs 2022 Total Costs 2022 EECRF Revenues 2022 (Over)/Under Recovery Authorized in Docket No. 52081 Actual $ $ $ $ $ $ 5,129,232 $ 57,216 $ 486,514 $ 2,783,387 $ 38,682 $ 8,495,031 $ $ $ 4,445,648 56,891 486,514 2,783,387 38,682 7,811,123 8,579,232 (768,109) XIII. UNDERSERVED COUNTIES EPE serves customers in three Texas counties: Culberson, Hudspeth, and El Paso. During 2022, 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 2022 EPE energy efficiency programs. Based on this definition, EPE had one Underserved County in 2022. Table 14: 2022 Energy Efficiency Activities by County County # of Participants El Paso County Culberson Hudspeth Total 17,709 1 1 17,711 Reportec Savings kWh kW 22,493,344 4,808 723 22,498,875 21,758.79 2.64 0.06 21,761.50 El Paso Electric Company 28 2023 Energy Efficiency Plan and Rep*§ 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 29 2023 Energy Efficiency Plan and Rep96 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 92 0 0 92 Large C&1 Solutions MTP kW kWh 710.49 2,551,236 0 0 0 0 710.49 2,551,236 County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total Texas SCORE MTP 59 1 0 60 kW kWh 1,982.92 8,178,089 2.64 0 4,808 0 1,985.56 8,182,897 County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total 42 0 0 42 Commercial Load Management SOP kW kWh 770.98 3,967,728 0 0 0 0 770.98 3,967,728 County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total 11 0 0 11 kW kWh 7,676.17 61,479 0 0 0 0 7,676.17 61,479 El Paso Electric Company A-1 2023 Energy Efficiency Plan and Replcl Residential Solutions MTP County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total LivingWise® MTP 1,109 0 0 1,109 County # of Kits El Paso County Culberson County Hudspeth County Total 4,737 0 0 4,737 Hard-to-Reach Solutions MTP kW kWh 852.01 1,423,945 0 0 0 0 852.01 1,423,945 Reported Savings kW kWh 170.30 574,910 0 0 0 0 170.30 574,910 County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total 398 0 0 398 Appliance Recycling MTP kW kWh 893.70 1,249,579 0 0 0 0 893.70 1,249,579 County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total 1,037 0 1 1,038 Residential Marketplace Pilot MTP kW kWh 98.91 0 0.06 98.97 801,330 0 723 802,053 County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total 1,685 0 0 1,685 kW kWh 547.31 3,192,352 0 0 0 0 547.31 3,192,352 El Paso Electric Company A-2 2023 Energy Efficiency Plan and Repj~ Residential Load Management MTP County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total 8,539 0 0 8,539 * Totals may not tie due to rounding kW kWh 8,056.00 492,696 0 0 0 0 8,056.00 492,696 El Paso Electric Company A-3 2023 Energy Efficiency Plan and Rep*§ El Paso Electric Company 2023 Energy Efficiency Plan and Report 16 Texas Administrative Codes § 25.181 and § 25.183 April 28,2023 -- Errata REDLINE Project No. 54470 Lompcnq El 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 2023, as established pursuant to 16 TAC § 25.181(e)(3). The Final Order of Docket No. 535511 issued on December 15, 2022, established the EECRF rates applicable to EPE for 2023. 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 2024 demand reduction goal should remain at 11.16 MW The Final Order of Docket No. 53551 also established an energy efficiency program budget for 2023 of $5,283,153.2 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 2023 & 2024 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 (MWh) ** Projected Projected MW MWh Savings (at Savings (at Meter) *** Meter) **** Proposed Budget (000'S) ***** 2023 2024 22.0 24.2 6.60 7.26 5.54 5.63 11.16 11.16 19,552 31.207 19,552 27.179 27,125 25,942 $5,493 $5,543 * The 2024 Demand Goal of 0.4% of peak demand (5.63 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; (1,523 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 2024 goal is 11.16 MW ** Calculated using a 20% conservation load factor. *** Due to changed parameters, EPE is projecting total demand savings of 23,968 kW for 2023. **** Due to changed parameters, EPE is projecting total energy savings of 25,977,489 kWh for 2023. ***** Proposed budget includes the overall program budget, EM&V expenses, and EECRF proceeding expenses. In 2022, EPE achieved a demand reduction of 21,201 21,762 kW, which was 4·90195% 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 2023 and 2024, 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 . 53551 , Order ( Dec . 15 , 2022 ). 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 2023 Energy Efficiency Plan and Report 35 Hard-to-Reach Solutions MTP The Hard-to-Reach Solutions MTP offers incentives and rebates 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. This program also provides participants 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 2023 and 2024. 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 continue implementation of this program in 2023 and 2024. 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 2023 and 2024. C. Research and Development EPE has allocated $25,000 to Research and Development (R&D) for 2023. To date, no R&D funds have been expended, but will be utilized to conduct an in-depth review of potential measures to determine which measures produce cost-effective savings opportunities. This funding amount is less than 10% of EPE's 2023 total program costs in accordance with 16 TAC § 25.181(g). D. New Program(s) for 2023 and 2024 EPE does not currently plan to add any new programs in 2023 or 2024. However, EPE has launched the Future\Mse® Pilot MTP, an efficiency education program for high school students, in the spring semester of 2023. E. Discontinued Program(s) for 2023 and 2024 EPE does not currently plan to discontinue any programs in 2023 or 2024. However, EPE plans to merge the Larqe C&1 Solutions MTP and Texas SCORE MTP into one program called Commercial Solutions MTP that will serve Iarqe commercial, industrial, and government customers in 2024. El Paso Electric Company 9 2023 Energy Efficiency Plan and Report 36 Table 5: Projected Demand and Energy Savings Broken Out by Program for Each Customer Class 2023 Customer Class 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 Livin gWise® MTP FutureWise® MTP Texas Appl ian ce Recycling MTP Residential Marketplace Pilot MTP 6 Residential Load Management MTP Hard-to-Reach Hard-to-Reach Solutions MTP Total 2024 Customer Class and Program Commercial Small Commercial Solutions MTP Large C&1 Solutions MTP Texas SCORE MTP Commercial Solutions MTP Commercial Load Management SOP Residential Marketplace Pilot MTP Residential Residential Solutions MTP Livin gWise® MTP FutureWise MTP e Texas Appl ian ce 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 10,411 17,468,496 730 3,197,400 2,011 10,569,816 620 7,000 50 19,996 545 200 106 195 950 18,000 800 800 31,207 3,530,280 21,000 150,000 8,605,640 954,840 727,600 494,000 1,579,200 2,850,000 2,000,000 1,051,200 1,051,200 27,125,336 Projected Savings (at rrleter) kW kWh 13,042 28,568,592 730 3,197,400 2444 10,569,816 620 2,631 7,000 50 3,530,280 11,100,096 21,000 150,000 15,968 7,422,688 545 200 106 195 950 13,972 800 800 954,840 727,600 494,000 1,579,200 2,850,000 817,048 1,051,200 1,051,200 29,810 37,042,480 El Paso Electric Company 15 2023 Energy Efficiency Plan and Report 37 Table 6: Proposed Annual Budget Broken Out by Program for Each Customer Class 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 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 Commercial 2024 Small Commercial Solutions MTP Large C&1 Solutions MTP Texas SCORE MTP Commercial Solutions 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 $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 $67,271 $100,000 $2@QT@65 $280,064 $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 $67,271 $100,000 $5,492·F@24 $5,492,823 Incentives Admin & R&D Total Budget $2,411,413 $461,115 $1,005,396 % 469 ·* 2 $1,475,298 $460,000 $15,000 $2,251,346 $315,000 $346,346 $300,000 $255,000 $285,000 $750,000 $600,000 $600,000 $5,262,759 $0 $0 $0 % 9 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $87,793 $25,000 $112,793 $67,486 $100,000 $28OTO65 $280,279 $2,411,413 $461,115 $1,005,396 % 469 ·; 992 $1,475,298 $460,000 $15,000 $2,251,346 $315,000 $346,346 $300,000 $255,000 $285,000 $750,000 $600,000 $600,000 $87,793 $25,000 $5,375,552 $67,486 $100,000 $45423824 $5,543,038 Total Budgets $5,262,759 El Paso Electric Company 17 2023 Energy Efficiency Plan and Report 38 V. HISTORICAL DEMAND GOALS AND ENERGY TARGETS FOR PREVIOUS FIVE YEARS ENERGY EFFICIENCY REPORT Table 7 documents EPE's actual demand reduction goals and energy targets for the previous five years (2018-2022) calculated in accordance with 16 TAC § 25.181. Table 7: Historical Demand Savings Goals and Energy Targets (at Meter) Calendar Year 20227 20219 202010 201911 201812 Demand Goals (kW) 11,160 Actual Demand Reduction (kW) Energy Targets (kWh) Actual Energy Savings (kWh) 19,552,320 21,7628 22,498,875 11,160 19,552,320 27,325 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 7 2022 demand goal and energy target as reported in EPE's EEPR Errata filed April 28,2@2%2022 under Project No. 52949. 2021 actual demand reduction and energy savings reported in Project No. 54470. 8 2022 actual demand reduction at the source is calculated as follows: 21,20*-762 kW at meter * (1/(1-0.0754)) line losses = 2*9@@23,537 kW at the source. 9 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. 10 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. 11 2019 demand goal and energy target as reported in EPE's EEPR filed July 26, 2019, under Project No. 49297.2019 actual demand reduction and energy savings reported in Project No. 50666. 12 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. El Paso Electric Company 18 2023 Energy Efficiency Plan and Report 39 VI. PROJECTED, REPORTED AND VERIFIED DEMAND AND ENERGY SAVINGS Table 8: Projected versus Reported Savings for 2021 and 2022 2021 Projected Savings Reported and Verified Savings Customer Class and Program kW kWh kW kWh Commercial 10,516 18,104,594 16,097 17,729,858 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 730 2,011 750 7,000 25 5,375 545 200 195 475 3,960 800 800 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 1,051,200 728 2,043 982 12,344 - 9,582 1,115 333 90 - 8,044 1,117 1,117 2,954,835 11,952,274 2,810,405 12,344 6,454,470 1,932,842 1,159,617 729,252 2,632,759 1,562,495 1,562,495 Total at Meter 16,691 23,479,193 26,796 25,746,823 2022 Projected Savings Reported and Verified Savings Customer Class and Program kW kWh kW kWh Commercial 10,541 18,208,716 11,210 15,085,426 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 FutureWise MTP Texas Appliance Recycling MTP Residential Marketplace Pilot MTP 730 2,011 750 7,000 50 8,486 545 200 106 195 950 3,197,400 10,569,816 4,270,500 21,000 150,000 7,621,590 954,840 727,600 494,000 1,579,200 2,850,000 Residential Load Management MTP 6,490 1,015,950 Hard-to-Reach Hard-to-Reach Solutions MTP 800 800 1,051,200 1,051,200 710 *@@g 1,986 ZGQ 771 +G@4 7,676 66 9,659 852 170 - 99 481 --A.G@6 8,056 894 894 2,551,236 8,395,552 -8,182,897 3,811,600 3,967,728 60,681 61,479 322,086 6,163,870 1,423,945 574,910 802,053 2,870,266 179,102 492,696 1,249,579 1,249,579 Total at Meter 19,827 26,881,506 21,762 22,498,875 El Paso Electric Company 19 2023 Energy Efficiency Plan and Report 40 VII. HISTORICAL PROGRAM EXPENDITURES Table 9 documents EPE's incentive and administration expenditures for the previous five years (2018-2022) 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 2018 through 202213 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 LivingWise® MTP FututreWise® 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 Customer Incent. $1,269,218 NA 2022 Implementor Incent. $1,035,247 NA $277,342 $489,358 $180,000 $320,349 $2,169 $875,660 $266,314 $183,559 $0 $168,134 $525,436 $340,177 $0 $1,500 $641,305 $131,479 $0 $0 $68,660 $150,660 $88,103 $271,811 $269,025 $256,050 $256,050 $0 NA NA $2T4O8T145 $2,400,929 $90,000 $263,380 $269,166 $281,269 $281,269 $0 NA NA $4~952434 $1,957,820 2021 2020 2019 2018 Admin Incent. Admin Incent. Admin Incent. Admin Incent. Admin $0 NA $0 $0 $0 $0 $0 $260 $0 $0 $0 $0 $0 $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 $260 $549,829 $0 $0 $0 NA NA $623,570 $623,570 $0 NA NA $0 NA $3,121,640 NA $0 NA $2,672,190 NA $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 NA NA $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 NA NA $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 NA 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 $0 NA $0 $0 $0 $0 NA $0 $0 $0 NA NA NA $0 $0 $0 NA $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 $260 $4,780,341 $0 $4,906,531 $0 $4,185,791 $0 $3,965,053 $145,658 $0 $200,551 $0 NA $0 $0 $0 $0 NA $0 $0 $0 NA NA NA $0 $0 $0 $0 $0 $0 13 2022 expenditures are from EEPR filed in Project No. 54470, 2021 expenditures are from EEPR filed in Project No. 52949, 2020 expenditures are from EEPR filed in Project No. 51672, 2019 expenditures are from EEPR Errata filed in Project No. 50666, and 2018 expenditures are from EEPR filed in Project No. 49297. El Paso Electric Company 21 2023 Energy Efficiency Plan and Report 41 Vlll. PROGRAM FUNDING AND EXPLANATION OF ADMINISTRATION COSTS FOR CALENDAR YEAR 2022 As shown in the subtotal for the "Total Funds Expended" column of Table 10, EPE spent $4,445,648 on program expenses (excluding EM&V and EECRF Proceeding Expenses) for its PUCT-approved energy efficiency programs in 2022. These programs were funded by EPE's 2022 EECRF. These expenses account for 87% of the total forecasted 2022 program budget of $5,129,232. 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. Table 10: Program Funding for Calendar Year 2022 Total Projected Budget Number of Participants Actual Funds Actual Funds Expended (Incentives) Expended (Admin & R&[)) Total Funds Expended Funds Committed (Not Expended) Funds Remaining 139,651 156,948 15,639 (9,398) (275) $ $ $ $ $ $ 4@& 3,669 260 11 $ $ $ $ 84 $ 92 $ 3,669 445,476 320,349 289 $ 320,349 2,304,465 $ $460,000 $2,461,413 -$ $ 60 $ 42 $ 1,014,794 520,177 1,014,794 520,177 2,304,465 $ 445,476 17,024 $ 1,109 $ 4,737 $ $461,115 $1,005,396 $519,902 1,516,965 $ 397,792 183,559 $15,000 $1,955,026 $315,000 $346,346 $300,000 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 FutureWise MTP Texas Appliance Recycling MTP Residential Marketplace Pilot MTP Residential Load Management $453,680 MTP Hard-to-Reach $600,000 Hard-to-Reach Solutions MTP $600,000 Administration $87,793 Research and Development $25,000 Subtotal $5,129,232 EM&V $57,216 EECRF Proceeding Expenses (EPE & Municipal expenses)* $100,000 Total $5,286,448 * Actual EECRF proceeding expenses of $86,746, consists of $64,487 in EPE proceeding expenses and $22,259 in municipal 4,358,749 $ $ $ 4,358,749 $ 86,899 $ $ 56,891 86,746 $ 230,537 $ -$ $ 86,639 $ 1,517,225 $ 397,792 183,559 537,319 $ 537,319 86,639 4,445,648 $ 56,891 $ $ $ $ $ $ $ 537,319 537,319 398 $ 398 $ 20;082 17,711 $ 4,589,285 $ $285,000 $255,000 538,191 $ $ - $ $ $ $ $ 17,711 $ 8,539 $ 1,038 $ 219,320 178,103 260 $ 1601 $ 219,320 178,103 538,451 4;993 86,746 $ $ $ $ $ $ $ $ - (84,771) 62,681 62,681 1,154 25,000 683,584 325 11,331 437,801 (82,792) 162,787 13,254 697,163 106,897 35,680 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 2023 Energy Efficiency Plan and Report 42 IX. PROGRAM RESULTS FOR MTPs Market Transformation Programs: Small Commercial Solutions MTP The 2022 projected savings for the Small Commercial Solutions MTP were 730 kW. There were 92 participants during 2022 that reduced demand by *I-4710 kW and saved 2,551,236 kWh in energy. Large C&1 Solutions MTP The 2022 projected savings for the Large C&I Solutions MTP were 2,011 kW. There were 60 participants during 2022 that reduced demand by @i@@91,986 kWand saved 8,@95182,552-897 kWh in energy. Texas SCORE MTP The 2022 projected savings for the Texas SCORE MTP were 750 kW. There were 42 participants in this program that reduced demand by AG-771 kW and saved 3,@44967,6@0-728 k\A/h in energy. Residential Solutions MTP The 2022 projected savings for the Residential Solutions MTP were 545 kW There were 1,109 participants in this program that reduced demand by 852 kW and saved 1,423,945 kWh in energy. LivingWise® MTP The 2022 projected savings for the Living\Mse® MTP were 200 kW. There were 4,737 kits provided in this program that reduced demand by 170 kW and saved 574,910 kWh in energy. FutureWise® MTP The 2022 projected savings for the FutureWise® MTP were 106 kW. However, as mentioned above, because of a delay in the implementation of this program, there were 0 kits provided in this program that reduced demand by 0 kW and saved 0 kWh in energy. Hard-to-Reach Solutions MTP The 2022 projected savings for the Hard-to-Reach Solutions MTP were 800 kW. There were 398 participants in this program that reduced demand by 894 kW and saved 1,249,@ZO-579 kWh in energy. Appliance Recycling MTP The 2022 projected savings for the Appliance Recycling MTP were 195 kW. There were 1,116 1,038 participants in this program that reduced demand by 99 kW and saved 802,053 kWh in energy. Residential Marketplace Pilot MTP The 2022 projected savings for the Residential Marketplace MTP were 950 kW. There were 1,685 participants in this program that reduced demand by 547 kW and saved 3,192,352 kWh in energy. El Paso Electric Company 25 2023 Energy Efficiency Plan and Rep*§ Residential Load Management MTP The 2022 projected savings for the Residential Load Management MTP were 6,490 kW. There were 8,539 participants in this program that reduced demand by *585 8,056 kW and saved 4193402 492,696 kWh in energy. El Paso Electric Company 26 2023 Energy Efficiency Plan and Rep#r~ XI. REVENUE COLLECTED THROUGH EECRF In 2022, EPE collected a total of $8,579,232 under Rate Schedule No. 97 - Energy Efficiency Cost Recovery Factor. XII. OVER/UNDER RECOVERY OF ENERGY EFFICIENCY PROGRAM COSTS In 2022, EPE over-recovered an amount of $768,109 as shown in Table 13. Docket No. 52081 ordered the recovery of EM&V costs of $57,216 for the evaluation of program year 2022. Table 13: Authorized and Actual Recovery Amounts Description January 1 - December 31,2022 Enerqy Efficiency Program Year 2022 EM&V Costs 2020 Over/(Under) Recovery 2020 Performance Bonus 2020 EECRF Proceeding Costs 2022 Total Costs 2022 EECRF Revenues 2022 (Over)/Under Recovery Authorized in Docket No. 52081 Actual $ $ $ $ $ $ 5,129,232 $ 57,216 $ 486,514 $ 2,783,387 $ 38,682 $ 8,495,031 $ $ $ 4,445,648 56,891 486,514 2,783,387 38,682 7,811,123 8,579,232 (768,109) XIII. UNDERSERVED COUNTIES EPE serves customers in three Texas counties: Culberson, Hudspeth, and El Paso. During 2022, 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 2022 EPE energy efficiency programs. Based on this definition, EPE had one Underserved County in 2022. Table 14: 2022 Energy Efficiency Activities by County County # of Participants El Paso County Culberson Hudspeth Total 2*084 17,709 1 1 2(¥)82 17,711 Reported Savings kWh kW 21,201.29 21,758.79 Q=QQ 2.64 0.06 21-r201435 21,761.50 22,570,881 22,493,344 Q 4,808 723 224~24604 22,498,875 El Paso Electric Company 28 2023 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 92 0 0 92 Large C&1 Solutions MTP kW kWh 710.49 2,551,236 0 0 0 0 710.49 2,551,236 County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total Texas SCORE MTP % 59 01 0 60 kW kWh 2,038.99 1,982.92 8,395,552 8,178,089 2.64 0 4,808 0 21038:99 1,985.56 8739&,552-8,182,897 County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total 42 0 0 42 Commercial Load Management SOP kW kWh @50=·QQ 770.98 3,811,600 3,967,728 0 0 0 0 7502 770.98 a,844-3600-3,967,728 County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total 11 0 0 11 kW kWh 7,676.17 61,479 0 0 0 0 7,554-50 7,676.17 64684 61,479 El Paso Electric Company A-1 2023 Energy Efficiency Plan and Rep*§ Residential Solutions MTP County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total LivingWise® MTP 1,109 0 0 1,109 kW kWh 852.01 1,423,945 0 0 0 0 852.01 1,423,945 County # of Kits Reported Savings El Paso County Culberson County Hudspeth County Total 4,737 0 0 4,737 Hard-to-Reach Solutions MTP kW kWh 170.30 574,910 0 0 0 0 170.30 574,910 County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total 398 0 0 398 Appliance Recycling MTP kW kWh @*·@@ 893.70 1,219,870 1,249,579 0 =Q@ 0 0 893:U 893.70 K,249,870- 1,249,579 County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total @9@ 1,037 0 1 398 1,038 Residential Marketplace Pilot MTP kW kWh 98.91 0 0.06 98.97 801,330 0 723 802,053 County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total 4-,44@ 1,685 547.31 3,192,352 kW kWh 0 0 0 0 0 0 4i446 1,685 547.31 3,192,352 El Paso Electric Company A-2 2023 Energy Efficiency Plan and Rep#F~ Residential Load Management MTP County # of Participants Reported Savings El Paso County Culberson County Hudspeth County Total 8,539 407449 7,581.95 8,056.00 474402 492,696 kW kWh 0 0 0 0 0 0 8,539 40,449 4584:96 8,056.00 474402 492,696 * Totals may not tie due to rounding El Paso Electric Company A-3 2023 Energy Efficiency Plan and Rep*§ The following files are not convertible: 2023 EPE EEPR Tables Clean.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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