2024 Annual Report Smart Meter Project Customer Education Plan Implementation 2 Overview El Paso Electric (EPE) made significant progress with its Smart Meter Project in 2024, reaching 84% completion across Texas and New Mexico. The installations were supported by a comprehensive marketing and advertising strategy to keep customers informed of the ongoing installation process and introduce them to new tools available to them once they receive their smart meters. These tools are designed to help customers lower their energy consumption and save money while also helping EPE manage its load growth. In 2024, EPE ran two advertising campaigns in English and Spanish to drive awareness of the project and encourage customers to take more control of their energy use. The Installers campaign was designed to educate residential customers about smart meter installations while the Next Steps campaign focused on encouraging customers to download the EPE mobile app, create an online customer account, and increase the use of EPE’s smart energy tools. In addition to the educational campaigns, EPE updated the smart meter website with a new section titled My Smart Meter, to educate customers on how to create an online account and use the smart energy tools. An explainer video and brochure were created to support these efforts. All materials were published in English and Spanish to serve EPE’s bilingual customers. Social media also played an integral role in EPE’s 2024 customer education plan. Campaigns were cross-promoted on EPE’s social channels, giving EPE an opportunity to actively engage with customers who had questions about the project. EPE developed an internal Q&A to anticipate questions and provide timely responses. In addition, project updates were routinely communicated to customers via email, customer e- newsletters, and the local news media. EPE’s goal of fostering acceptance of smart meters and avoiding opt-outs is being achieved, with only 295 customers choosing to opt out to date (0.06% of EPE’s 460,000 customers). Background In 2023, El Paso Electric (EPE) officially launched its Smart Meter Project and began installing smart meters in Texas and New Mexico. A comprehensive Customer Education Plan was created by consultant Black & Veatch* in coordination with EPE to ensure customers are prepared for the transition. EPE hired communications firm Hahn to assist with the implementation of the Customer Education Plan. *Black & Veatch is a 100-percent employee-owned global engineering, procurement, consulting and construction company with a more than 100-year track record of innovation in sustainable infrastructure. 2024 Annual Report Smart Meter Project Customer Education Plan Implementation 3 Customer Education Goals 1. Demonstrate transparency and responsibility throughout the project. 2. Educate internal and external audiences about the benefits of smart meters. 3. Keep internal and external audiences informed about the process, progress and next steps. Strategy Messages for the EPE Smart Meter Project are being sent internally and externally in three phases. In 2024, EPE continued the Deployment phase and began the Post-Deployment phase to encourage customers to create an online account and use EPE’s smart energy tools. Phase Goal Pre-Deployment/Phase 1 2023 Raise consumer awareness about upcoming technology transformation and proactively address concerns around safety, security and cost. Deployment/Phase 2 2023-2025 Help customers understand the installation process and general timeline. Post-Deployment/Phase 3 2025-2026 Educate customers about EPE’s smart energy tools, announce project completion, and promote new programs and services. 2024 Annual Report Smart Meter Project Customer Education Plan Implementation 4 Optimization Areas *Optimization areas are clusters of zip codes assigned by EPE to streamline the installation process. In 2024, EPE installed smart meters in optimization areas 1, 2, 3, 4, 5, 6, and 7. The Next Steps campaign ran in optimization areas 1, 2, 3, and 6. Customer Reach In 2024, EPE’s The Installers and Next Steps campaigns resulted in approximately 56.9 million impressions* in Texas and New Mexico. Digital (online) impressions reached 8.7 million while traditional (billboard) impressions reached 48.2 million. The overall goal of these campaigns was to reach 80% of the adult population across media tactics once per week in each optimization area. In 2024, EPE over-delivered targeted impressions by 285% across all optimization areas, primarily due to the addition of billboards across the region. *Impressions represent the number of times an ad was served on a media platform. Deployment/Phase 2 The Installers Campaign The Installers campaign targets customers who are about to receive their meters. Ads are sent to customers one month prior to the start of installations in an optimization area and end when 98% of the meters in the area have been installed. Digital ads were served on Facebook, Instagram, and Connected TV, and were flighted to avoid ad fatigue. In addition, billboards were added in 2024 for increased visibility across the region. In 2024, the campaign resulted in more than 36,000 customers using the ZIP code search functionality on the smart meter website. 2024 Annual Report Smart Meter Project Customer Education Plan Implementation 5 EPE advertised The Installers campaign in optimization areas 2, 3, 4, 6, & 7, representing 68% of the total number of meters being installed (342,834 meters). Optimization areas 2, 3, and 4 are in Texas, and areas 6 and 7 are in New Mexico. The Installers Campaign Results Texas New Mexico • 3.8 million digital impressions • 1.77 million digital impressions • 19,074 ad clicks • 19,336 ad clicks • 460,769 video ad views • 50,221 video ad views • 24.79 million traditional impressions • 7.38 million traditional impressions Sample digital ad: Post-Deployment/Phase 3 Next Steps Campaign The Next Steps campaign launched in April 2024 to target customers who recently received a new smart meter. Customers were encouraged to download the EPE mobile app, create an online account, and use EPE’s smart energy tools available in the customer portal. Customers who want to use the smart energy tools are required to create an online account first. The smart energy tools include a free online home energy analysis, bill comparisons, historical energy use, and customized energy saving tips. Customers who take control of their energy use can save money on their energy bills and help EPE manage its load growth. As part of this campaign, EPE added a new My Smart Meter section to its smart meter website. This landing page includes an explainer video and highlights how to create an online customer account and use EPE’s smart energy tools. During the Post-Deployment phase in 2024, EPE advertised in optimization areas 1, 2, 3, & 6, representing approximately 290,344 meters (approximately 58% of the total). Optimization areas 1, 2, and 3 are in Texas, and area 6 is in New Mexico. 2024 Annual Report Smart Meter Project Customer Education Plan Implementation 6 Next Steps Campaign Results Texas New Mexico • 2.43 million digital impressions • 677.4K digital impressions • 17,343 ad clicks • 4,317 ad clicks • 72,410 video ad views • 17,089 video ad views • 10.94 million traditional impressions • 5.06 million traditional impressions Sample digital ad: 2024 Annual Report Smart Meter Project Customer Education Plan Implementation 7 EPE Customer Portal EPE serves approximately 460,000 customers from Van Horn, Texas to Hatch, New Mexico. As of the end of 2024, 55% of EPE customers have accessed the online customer portal. Customers can use the Smart Energy Tools in the portal to conduct a free home energy analysis, sign up for high bill alerts, receive customized energy saving tips, and view energy use comparisons. Customer Portal Users by Customer Type Customer Type Registered Portal Users Residential 235,318 Small Business/Commercial 18,832 Large Commercial/Industrial 49 Other 1,922 *The “Other” category refers to government and other municipal users. Customer Portal Users by Optimization Areas Optimization Area Portal Users Number of Meters Ratio of Portal Users to Meters OA1-TX 41,149 93,132 44% OA2-TX 43,833 78,270 56% OA3-TX 25,996 58,836 44% OA4-TX 50,612 93,824 54% OA5-TX 38,085 74,045 51% OA6-NM 32,051 71,936 45% OA7-NM 26,045 58,172 45% Total 257,771 528,215 49% 2024 Annual Report Smart Meter Project Customer Education Plan Implementation 8 Expense Report The EPE Smart Meter Project Customer Education Plan budget is $2 million. In 2024, EPE spent approximately $580,000. The budget is divided into two categories: production and media. Production reflects the time or labor spent to produce the marketing and advertising assets. It also includes project management, reporting, and campaign optimizations. Media reflects the advertising dollars spent to promote the project in traditional and digital media platforms. 2024 Budget Phase 2 The Installers (January-August) Phase 3 Next Steps (April-November) 2024 Totals Production/Labor TX $90,322.74 $135,484.11 $225,806.85 Media TX $135,991.09 $74,591.07 $210,582.16 Production/Labor NM $30,099.77 $45,149.65 $75,249.42 Media NM $46,889.85 $22,464.62 $69,354.47 Total - - $580,992.90 Other Marketing Tools in 2024 Tools Details Audience Explainer Video • Educates customers on how to create an online customer account and use EPE’s smart energy tools • Launched on website in April 2024 • Shared on social media • Customers who use the smart meter website and EPE’s social channels Brochure • Redesigned to educate customers about creating an online customer account and using EPE’s smart energy tools • Customers at community events Social Media • Ongoing social posts • Created template for responding to smart meter inquiries • Customers who follow EPE’s social channels Website • Added “My Smart Meter” section • Updated ZIP code search tool to account for adjusted deployment schedule • Customers who use the smart meter website and online search tool Customer e-newsletter • Shared monthly updates w/customers in EPE’s e-newsletter • Customers who have opted in to receive emails from EPE Research, Reporting & Optimizations • Produced quarterly campaign reporting and recommendations • Deployed a one-question survey to test effectiveness of messages • EPE communications and AMS teams (to optimize customer communication efforts) 2024 Annual Report Smart Meter Project Customer Education Plan Implementation 9 Energy Savings Overall, energy consumption in the EPE service area increased between 2023 and 2024 due to increased load growth. To calculate energy savings from the smart meters, EPE analyzed 1,291 customer accounts across all customer types, comparing energy use data between 2023 and 2024. Of those, 311 or 24% of the accounts experienced energy savings totaling more than 22 million kWh. Increased use of EPE’s smart energy tools and anticipated new pricing options for customers are expected to lead to additional energy savings over time. Energy Savings by Customer Class Customer Type Energy Savings in kWh Large Commercial/Industrial 22,269,383 Residential 138,283 Small Business/Commercial 442,039 Other 239 Phase 3 – Post-Deployment Continue to educate customers about EPE’s smart energy tools and announce project completion.