Projected Savings (at meter Customer Class and Program kw kwh

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1 Exhibit AGP-1 Table 5: Projected Demand and Energy Savings Broken ut by PrograPn?gfbFLVA Customer Class 218 Projected Savings (at meter Customer Class and Program k kh Commercial 11,27 18,15,152 Commercial SP 7 3,66, Small Commercial Solutions MTP 73 3,197,4 Large C&I Solutions MTP 2,11 8,88,18 Texas SCRE MTP 7 2,759,4 Load Management SP 7, 14, Commercial Rebate Pilot Program 66 26,172 Residential 558 2,74,19 Residential Solutions MTP ,336 Livin ise MTP 14 1,341,683 Hard-to-Reach 8 1,51,2 Hard-to-Reach Solutions MTP 8 1,51,2 Total 12,565 21,23,371 Projected Savings 217 (at meter Customer Class and Program k kh Commercial 11,25 18, 9,26 Commercial SP 684 2,995,92 Small Commercial Solutions MTP 73 3,197,4 Large C&I Solutions MTP 2,11 8,88,18 Texas SCRE MTP 75 2,956,5 Load Management SP 7, 14, Commercial Rebate Pilot Program 3 118,26 Residential 618 1,778,77 Residential Solutions MTP ,336 Livi isek MTP 2 1,45,741 Hard-to-Reach 8 1,51,2 Hard-to-Reach Solutions MTP 8 1,51,2 I 'Total 12,623 2,919,537 El Paso Electric Company Energy Efficiency Plan and Report 75

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3 IV. Program Budgets Exhibit AGP-1 Page 18 of 41 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 different budget categories: incentive payments, administration and research and development (R&D) expenses. Table 6 also includes the estimated annual expenses for the statewide EM&V contractor and the EECRF proceeding expenses. EPE has made some modifications to the individual program budgets that were identified in the 215 EEPR, but, as shown in Table 6, the overall program budget for 216 remains at $4,384,65. These modifications were made because the third party implementer of EPE's Appliance Recycling Program was placed into receivership on ovember 18, 215. Accordingly, EPE discontinued the Appliance Recycling Program at that time and the funds for 216 were re-distributed to the Commercial SP and the Texas SCRE MTP and the demand goals for these programs were adjusted. The number of customers in each of the customer classes shown in Table 3 was considered in budget allocations for those classes. 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. A variety of additional factors and assumptions also went into the decision process. Hard-to-Reach customers are residential customers at or below 2% of the Federal Poverty Guidelines. This is estimated to be approximately 11,551 customers, or 37.2% of EPE's total residential load in Texas (see Footnote 4). Avoided costs for 216, as established by the PUCT, were set at $8 per k per year and $.588 per kh. As directed in the EE Rule, EPE will limit administrative costs to a maximum of 15% of the total program costs and R&D costs to a maximum of 1% of the total program costs; however, the cumulative cost of administration and R&D will not exceed 2% of EPE's total program costs. EPE used a 6.613% post-tax discount rate to calculate the present value of the avoided cost associated with a project and assumed a 2% escalation rate. For simplicity, it is assumed that an EESP that completes an energy efficiency project in a given year receives all the incentives associated with that project in that year. Administration costs, however, may be committed in one year and expended in another. EPE will offer a portfolio of SPs, MTPs and one self-delivered program that will be available to all eligible customer classes_ 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 goal. Should funds not be reserved and used as prescribed by program milestones, EPE reserves the right to reallocate those unused funds to other programs in order to maximize contributions towards EPE's energy efficiency goal. El Paso Electric Company Energy Efficiency Plan and Report 76

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5 Exhibit AGP-1 Table 6: Proposed Annual Budget Broken ut by Program for Each Customer ClasPsage 19 of Incentives Admin & R&D Total Budget Commercial $3,68,75 $5,555 $3,118, 63 Commercial SP $431, $4, $471, Small Commercial Solutions MTP $461,115 $ $461,115 Large C&I Solutions MTP $1,5,396 $ $1,5,396 Texas SCRE MTP $615,569 $ $615,569 Load Management SP $46, $ $46, Commercial Rebate Pilot Program $94,995 $1,555 $15,55 Residential $576,346 $ $576,346 Residential Solutions MTP $23, $ $23, Livin isea MTP $346,346 $ $346,346 Hard-to-Reach $6, $ $6, Hard-to-Reach Solutions MTP $6, $ $6, Administration $89,674 $89,674 Subtotal Budgets $4,244,421 $14,229 $4,384,65 EM&V (Est PY215 Review nly) $51,29 $51,29 EECRF Proceeding Expenses $85, $85, Total Budgets $4,244,421 $276,519 $4,52, Incentives Admin & R&D Total Budget Commercial $3,68,75 $46, $3,114,75 Commercial SP $391,995 $4, $431,995 Small Commercial Solutions MTP $461,115 $ $461,115 Large C&1 Solutions MTP $1,5,396 $ $1,5,396 Texas SCRE MTP $74,569 $ $74,569 Load Management SP $46, $ $46, Commercial Rebate Pilot Program $45, $6, $51, Residential $576,346 $ $576,346 Residential Solutions MTP $23, $ $23, Livin ise MTP $346,346 $ $346,346 Hard-to-Reach $6, $ $6, Hard-to-Reach Solutions MTP $6, $ $6, Administration $94,229 $94,229 Research and Develo pment $1, $1, Subtotal Budgets $4,244,421 $15,229 $4,394,65 EM&V (PUCT - no contract for EM&V) $ $ EECRF Proceeding Expenses $85, $85, Total Budgets $4,244,421 $235,229 $4,479,65 El Paso Electric Company Energy Efficiency Plan and Report 77

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7 EERGY EFFICIECY REPRT Exhibit AGP-1 Page 2 of 41 V. Historical Demand Goals and Energy Targets for Previous Five Years Table 7 documents EPE's actual demand reduction goals and energy targets for the previous five years ( ) calculated in accordance with 16 TAC Table 7: Historical Demand Savings Goals and Energy Targets ( at Meter) Calendar Year Demand Goals (M) Energy Targets (Mh ) Actual Demand Reduction (M) Actual Energy Savings (Mh ) , , , , ; 19, , " , , , , M goal and Mh target as reported in EPE's EEPR filed April 1, 215 under Project o demand reduction and actual energy savings reported in this document, Project o M goal and Mh target as reported in EPE's EEPR filed April 1, 214 under Project o demand reduction and actual energy savings reported in this document, Project o M goal and Mh target as reported in EPE's EEPR filed March 29, 213 under Project o demand reduction and actual energy savings reported in Project o M goal and Mh target as reported in EPE's EEPR filed March 3, 212 under Project o demand reduction and energy savings modified pursuant to settlement of Docket o M goal and Mh target as reported in EPE's EEPR filed April 1, 211 under Project o demand reduction and energy savings modified pursuant to settlement of Docket o El Paso Electric Company

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9 VI. Projected, Reported and Verified Demand and Energy Savi ibit AGP-1 age 21 of 41 Revised Table 8: Projected versus Reported Savings for 214 and 215 (at Meter) 214 Projected Savings Reported and Verified Savin s Customer Class and Program M Mh M Mh Commercial , ,977 Commercial SP.6 2, ,197 Small Comm. Solutions MTP.73 3, ,124 Large C&I Solutions MTP 1.8 7, ,633 Texas SCRE MTP.5 1, Load Management SP Commercial Rebate Pilot Program Residential.46 2, Residential Solutions MTP Livin ise' MTP.6 1, Hard-to-Reach.8 1, ,75 Hard-to-Reach Solutions MTP.8 1, ,75 Residential / Commercial.443 1, ,91 Appliance Recycling MTP.22 1, ,591 Solar PV Pilot MTP Total , , Projected Savings Reported and Verified Savin Customer Class and Program M Mh M Mh Commercial , ,263 Commercial SP.6 2, ,897 Small Comm. Solutions MTP.73 3, ,7 Large C&1 Solutions MTP 1.8 7, ,54 Texas SCRE MTP.5 1, ,775 Load Management SP Commercial Rebate Pilot Program Residential.54 2, ,767 Residential Solutions MTP Livin ise"" MTP.14 1, ,166 Hard-to-Reach.8 1, ,48 Hard-to-Reach Solutions MTP.8 1, ,48 Residential / Commercial.443 1, ,773 Appliance Recycling MTP.22 1, ,235 Solar PV Pilot MTP Total , ,283 El Paso Electric Company Energy Efficiency Plan and Report 79

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11 ac`a.c E ' 5 v_ c cn Iq V Q 4- U D Co V RS Lt'! m m w CL C fn w cm U CL :,, tp 7.- U.E... r_ a ca m 3 -L af -ft-u) Zn > a) CL Q X C w (D +-' > o '6 Cy cn c '- cc cn QYE c d x c x o v C V7 1 &- cs C' :3 3 (j) C c"i Q j C > C X - ar-) ow > E C L = C na Q E R a_ EY a? e 'v o U) co Z E (o cv ca = = F- U -.I- H M m _ o o co _ Q o w m o co a co a td z e'f M. M E cd (D a T Ln a ~ it w ir3 w o P. co V n < cc ( d C ao _ n t- d T M ( m m M tf) z f tc) Ae r M C'S h + ' f Q) C 'Q f Ql Qf ) r C ) Cl Li) C _ C to C GD r D C - to Y V 1 C C C d ) V to Gfl Lp Ln M td M h ( fh Hf M M M 4 V' at _ T -C V# ffl fa EA fa Y4 V) EA tfl fa d V) a v o o c co c 611) d3 613, <fl EA Vi 6s ell to d o at co co d Q w 4 to 4Ṉ 11 1p m n ( ) P 1 C < L f- r- P7 tf) tl) I- d! 'V _ z r a3 r 6) C') It m C L D_ co co d tf! 1Q C P' C) C) 1 Ili Lf) lf>. w s it " " v co t7 Co Do ( f d V {! f ) r (A L (p ' el ER fa (A m d3 to c ) H3 69 fa w t C d EH k Hf 69 C f am t Mi M d o o C CD Yf V) M M C T EA 69 fa to V% Yi fa H# M V Q7 V Z td u) 1.- C7 M t+] C t fa b9 M p r L L!) L() td _ ED co Co M r co C < co M C9 Co f- t C M M C7 d C t Z t wi ( C) I + M co 1- M!'M t r!' d t fd f (M P h It d [ t tt co M1 ) V to R M M V I ' ' C t a 4 T f V L; C ) i to It ER fa 16S A ffi Vl 6 9 w EF 3 69 fa a w w a CD Cl CD r q r U) a L fa to 613 fa fr EA EH fa to Z M U5 H th M M e f» us t+f 3 h Cl cv to co d v a U-) to vs Lp r u U-) co c') V r _ C C Q7 C Qf ) h D -- M Q) tf c'i M - mm z f f -Q ad c m d V' f C9 to 16 P d td t V r a L!) to (D td V. f- co 1[) 1l) ; a C 4 a U Q 1 69 fpr V V E! m n ) d!_ fpr Vi th 44 <fl d9 EA cn m 1A f ) D C. <. ir f!j Efl H3 ER V EA!f)!!f T Ffl r- - Z c7 w C C; w d9 ta 61 L!) I C (V o) h 4 ( v V' C P < h C t IT Co U) Qf to Ir 1- It (`') > ) ( - I C C7 't C) "t V t C 'ff Z D m D td!- co cd r t} V f"! "f y a ID C ) V - V IT tfy U7 M V' 1 d' 'd r M V (M V [) EH V) M 4 U) M EH fa ER 49 E9 M fa fa Ml V tf M V) f/t m a c o) ` d o 4 y m a a v> > w E a o L o, Ua w > o -d d A - a c a u U ad - d E I E - as y a m = En o a. r b P E t6 9 Q1? m n f C i p x a ci U n F- 3 w w FE :3 C (D x G) to V z v a` c Cl CE Ir a w E d (D o m o z U y C: CL C x cn.- w co 6- z U y 7 (D Q. c c d -o E m o w m f 6 4) o z U a7 - x r CL m a C m C m FL U C U_ 7+ 1 ) c to 7+ C C E U t) U w I 8

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13 VI11. Program Funding and Explanation of Administration Costj 't AGP-1 age 23 of 41 Calendar Year 215 As shown in the subtotal of Table 1, EPE spent $3,955,988 on program expenses (excluding EM&V and EECRF Proceeding Expenses) for its PUCT-approved energy efficiency programs in 215. These programs were funded by EPE's 215 EECRF. These expenses account for 9.2% of the total forecasted program budget for 215 of $4,384,65. The difference between the forecasted program budget and the actual program expenditures is attributed to the Commercial SP, Load Management, Commercial Rebate Pilot Program, and the Appliance Recycling Program not reaching the participation levels anticipated by EPE. Actual program funding levels are shown in Table 1 and Table 11. Administration expenses benefited the entire portfolio. These expenses include, but were not limited to, outsourced program administration, marketing ( i.e. website maintenance and promotional items), Electric Utility Marketing Managers of Texas ( EUMMT) expenses, costs associated with regulatory filings, and EM&V administration expenses outside of the actual cost associated with the PUCT appointed EM&V contractor. El Paso Electric Company Energy Efficiency Plan and Report 81

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15 T r ov CL -a Q X CL CD co.r y co CD el i > t- tnp p D p C i M M lf T r 1p 1 I,: C6 t T M a L fi p" ap T { C r T tn st RV y tt LL. to ra w 1 6,1 1 1 v u w! r ŌCL m m CL U UL z fr ia!r tl4 V M Y p c4 cd C I- M cd c co T h M r- st I- ao x-- M M co T 1( 'T I- IT Lo T C co T!,32 w qt } M IT T C ) C M C9 d' r co Cr) D 1 D r. r.. d4 v w ifs v? vi 4 u4 w T Y 4) C c _ ti. -C to ti T o T g o r o r r.. co co 1% ce vi - C!M. 4A 41 4 i ip tf) a t co_ h- p v C r. (.. IL ti C D CD C' i C V: t S - C M ti C C r * In L v 'ci' M M C - C M M... ir fr 64& 44 IA M! CV E o C? a - T I 1 t T M M r T r Q,l T T T M (h r T YI r r to C 41 tq V! p Qp) td{ w t17 u) > p ID M tf) Ln 1f!!) _ tn ( co M m C> i co vi 1t) i ( to p F fa 69 fa EA go, to 4m. M Cf C C LL E ea C1 d.q lc F C o a_ tn V rn CL a CL cr) o o (b o E >, U) V` c U rn vy c6 (n C V 4 C C X w C e t, t a K U) c/i d w 6 h ) c a m a C o > C; L U U U) J J V) hp T C m - E U U h id d 82

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17 C) IT CL o Q UI E L U) cr, V- Q L m w x IL M x w t.. G a+ d f V co r_ 9- U_ C_ C U_ ca U C_ E > C q Co " c Q M Q " a _ - Lt y. ` Q 4) 9 - $ - cv E to E tn L V a p 7 = C C m C C C C L t w v U v _ [S > «p Y a vm A a) U U C) " cc 'D U v) "Fu C C c 'D a p a a c S6 t4 (9 CL p>u L T)U E c6 ), U d (4 (a - ( Z p o o e o o c o p e a o o r- L C M 'I td CD ( ` pp P- cr fl- CD M G 1- C oo u') ) C t It m m IL tp D! h co fv I t 'a Iq Cfl CD C) mr co f G P- ( M C - ( M L Qf v L 1 1- r- h (Q cm 'It e- 'It V V' 'It Q> - Cp C CV h- C') V C r C e- f KS Lf) V T- 1 1i'i rv M r 'cf ) It M U) (V m CD C M CV 1 C M j bq v+ w v). ers L2 c rn co o co o CD u) L o a) r ) C C) to v IT CD qt LA t M ta +f) M co r r D a ar ti Cl ui L o Lri to Co Cl m oi o a co Co CD C) " X) Q'a CD T' Co Ch ' IA c) L C Hf tm to tl4 d4 d), tr fa p LL C f9 C c. U C a T 21 U) C c D- CL E U Eaf CL d C rc' d: (L y 1 2 4, a C - a a d o a c n o a cn o ' of " o c E m i a 6 (n 14 4) ai a, E i i:. V) E > U = d ' ++ U L 11 c fp C U -? E :2 - Gi cn (L 5; E U ca J H J U J I c' d -a o >. C c a E U U a) co a w 83

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19 IX. Program Results for MTPs and Self-Delivered Program Exhibit AGP-1 Page 26 of 41 A. Market Transformation Programs Small Commercial Solutions MTP In 215, the Small Commercial Solutions MTP provided customers and participating contractors with cash and non-cash incentives. This program targeted commercial customers with a demand of less than 1 k. This program focused on improving the energy efficiency of small commercial facilities, as well as improving the installation practices of participating contractors. EPE contracted with a thirdparty program implementer to provide the non-cash incentives such as technical assistance, education on energy efficiency projects, and communications services to participating customers and contractors. The 215 goal for this program was 73 k. There were 194 projects completed in the Small Commercial Solutions MTP during 215. These projects reduced demand by 672 k and saved 3,7,513 kh in energy. Large C&1 Solutions MTP The Large C&I Solutions MTP was established to test a solutions-based approach toward garnering peak k savings among large commercial customers. Key components of the "solutions" approach included: EPE acting as a third-party unbiased player to assist business customers in identifying energy efficiency opportunities, realizing the financial benefits associated with such opportunities, evaluating contractor bids, and conveying the social and financial benefits by way of internal and community-wide communications efforts. Besides peak demand reduction, this program has also realized success in reaching out to the contracting community, including affiliated architectural and engineering firms. In 215, the Large C&I Solutions MTP provided customers with cash and non-cash incentives. This program targeted commercial customers with a demand of equal to or greater than 1 k. As with the Small Commercial Solutions MTP, EPE contracted with a third-party program implementer to provide non-cash incentives such as technical assistance, education on energy efficiency projects, measurement and verification, and communications services to participating customers. The 215 goal for this program was 1,8 k. There were 259 projects completed in the Large C&I Solutions MTP during 215 that reduced demand by 1,945 k and saved 9,53,826 kh in energy. Texas SCRE MTP As with the previous programs, the 215 Texas SCRE MTP provided customers with cash and noncash incentives. This program targeted schools districts, higher educational facilities and local governmental entities. EPE recognized that many school districts and local governments lack the technical knowledge, first-hand experience, and management decision-making processes that are necessary for identifying, prioritizing and completing projects that improve their facilities' energy performance and reduce operating costs. This program helped these customers identify, prioritize, budget, and complete energy efficiency projects. EPE contracted with a third-party program implementer to provide non-cash incentives such as benchmarking, technical assistance, education on energy efficiency projects, and communications services to participating customers. The 215 goal for this program was 5 k. This program had 44 projects from participating schools and local government entities in the EPE service territory These projects reduced demand by 577 k and saved 2,774,95 kh in energy. El Paso Electric Company Energy Efficiency Plan and Report 84

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21 Residential Solutions MTP Exhibit AGP-1 Page 27 of 41 In 215, the Residential Solutions MTP offered residential customers, through the use of participating contractors, incentives for making energy efficient improvements to their homes. This program focused on improving the energy efficiency of residential buildings, as well as improving the installation practices of the participating contractors. EPE contracted with a third-party implementer to administer the Residential Solutions MTP The 215 goal for this program was 4 k. There were 938 participants that reduced demand by approximately 4 k and saved 6,956 kh in energy. Livingise MTP The Livingise MTP is an educational program that uses a school-based method that builds student knowledge, provides high energy efficiency devices to families and serves as an effective community outreach program. In 215, each participant received a kit that contained energy saving devices to be installed in their homes, as well as energy efficiency educational materials. The 215 goal for this program was 14 k. In 215, the Livingise"' MTP provided 9,371 Livingise kits. The savings from this program were 223 k in demand savings and 1,165,897 kh in energy savings. Hard-to-Reach Solutions MTP In 215, the Hard-to-Reach Solutions MTP offered residential customers who were at or below 2% of the Federal Poverty Guidelines, through the use of participating contractors, incentives for making energy efficient improvements to their homes. This program focused on improving the energy efficiency of low income residential buildings, as well as improving the installation practices of the participating contractors. EPE contracted with a third-party implementer to administer the Hard-to-Reach Solutions MTP. The 215 goal for this program was 8 k. There were 1,157 projects in this program that reduced demand by 964 k and saved 1.479,742 kh in energy. Appliance Recycling MTP In 215, the Appliance Recycling MTP provided incentives to encourage EPE customers to recycle their older, less efficient refrigerators and freezers. This program removed these appliances from the electric grid, thus reducing system-wide load and peak demand. The 215 goal for this program was 22 k. EPE removed and recycled 1,95 units through the Appliance Recycling MTP. This program reduced demand by 189 k and saved 1.235,16 kh of energy savings. Solar PV Pilot MTP In 215, the Solar PV Pilot MTP provided EPE customers with incentives, through participating contractors, for installing solar PV distributed generation systems. This program encouraged customers to install solar PV systems on their homes and businesses by reducing the up-front cost of these systems. The 215 goal for this program was 241 k There were 39 projects that reduced demand by 279 k and saved 537,642 kh El Paso Electric Company Energy Efficiency Plan and Report 85

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23 B. Self-Delivered Program Commercial Rebate Pilot Program Exhibit AGP-1 Page 28 of 41 In 215, the Commercial Rebate Pilot Program provided commercial customers with rebates for two measures, the room HVAC controls measure and the vending machine controls measure This program encouraged customers to install these energy saving devices by subsidizing part of the up-front cost of these measures. The 215 goal for this program was 66 k. There was one participant that reduced 16 k of demand savings and 46,488 kh in energy savings. The acceptance of this program by customers has been very slow; however, EPE anticipates higher participation in 216. X. Current Energy Efficiency Cost Recovery Factor (EECRF) Report for 215 In Docket o , EPE was granted approval for recovery through its 215 EECRF of (a) $4,384,65 in energy efficiency program costs projected to be incurred from January 1 through December 31, 215, (b) The Company's share of the costs of the PUCT EM&V contractor's 214 and 215 budgeted expenses in the amount of $99,722, (c) the 213 under-recovery revenue amount of $82,871, (d) a performance incentive for 213 of $2,35,783 and (e) EPE's 213 EECRF proceeding expenses of $85,1. EPE requested that the EECRF be applicable beginning January 1, 215. The Final rder in Docket o concluded that the filing conformed to the requirements of the EE Rule. 14 The order also found the allocation of the energy efficiency costs and performance incentive in accordance with the EE Rule.15 The recovery of the agreed-upon EECRF amount of $6,688,126 is based on a dollar per kh rate. The cost recovery factors by rate are listed in Table 12. Table 12: 215 EECRF Monthly Rates Energy Efficiency Cost Recovery Rate o. escri ption Factor $Ikh ) 1 Residential Service Rate $ Small Commercial Service Rate $ utdoor Recreational Lighting Service Rate $ Governmental Street Lighting and Signal Service Rate $ (.46) 11 Municipal Pumping Service Rate $ TU Time-f-Use Municipal Pumping Service Rate $.653 H ater Heating $ (.454) 22 Irrigation Service Rate $ General Service Rate $ Large Power Service Rate (excludes transmission) $ Cotton Gin Service Rate $(.494) 14 Docket o 42449, Final rder at Findings of Fact o. 1 (ovember 24, 214) 15 Id. at Conclusion of Law o. 7 and Findings of Fact o, 19 El Paso Electric Company Energy Efficiency Plan and Report 86

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25 41 City and County Service Rate $. 29 ni 43 University Service Rate $ (.149) Maintenance Power Service For Cogeneration And Small Power Production Facilities $.494 Backup Power Service For Cogeneration And Small Power Production Facilities $ (.494) 1 41 XI. Revenue Collected through EECRF In 215, EPE collected a total of $6,634,67 under Rate Schedule o Energy Efficiency Cost Recovery Factor. XII. ver/under Recovery of Energy Efficiency Program Costs In 215, EPE over-recovered an amount of $38,39 as shown in Table 13. Table 13: Authorized and Actual Recovery Amounts Description Authorized in Docket o. Actual January 1- December 31, 215 Energy Efficiency Costs $ 4,384,65 $ 3,955, and 215 EM&V Costs (PY214 Review) $ 99,722 $ 94, ver /Under Recovery $ 82,871 $ 82, Performance Bonus $ 2,35,783 $ 2,35, EECRF Proceeding Costs $ 85,1 $ 85,1 215 Total Costs and Bonus $ 6,688, ,254, EECRF Revenues $ 6,634, ver /Under Recovery $ 38,39 XItI. Underserved Counties EPE serves customers in three Texas counties: Culberson, Hudspeth, and El Paso. During 215, the majority of energy efficiency projects were in El Paso County. EPE has defined Underserved Counties as any county in the Texas EPE service territory that EPE reported no demand or energy savings through any of its 215 energy efficiency programs. Based on this definition, only Culberson County had no demand or energy savings in 215. Table 14: 215 Energy Efficiency Activities by County Re rted Savings County Participants k kh E1 Paso County 13,94 12,34 22,275,162 Culberson County Hudspeth County ,365 Total 13,129 12,35 22,282,527 El Paso Electric Company Energy Efficiency Plan and Report 87

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27 XIV. Performance Incentive Calculation Exhibit AGP-1 Page 3 of 41 EPE achieved a M reduction in demand from its energy efficiency programs offered in 215. EPE's demand reduction goal for 215 was M. EPE's achievement represents 11.26% of its demand reduction goal, qualifying it for a performance incentive. Per 16 TAC , EPE is eligible for a performance incentive of $667,545 which it plans to request in its 216 EECRF filing. Per the PUCT, the total program costs to be used in the performance incentive calculation below include the 215 EM&V cost allocation of $58,21 as provided by the statewide EM&V evaluator, rather than EPE's actual booked EM&V costs of $78,15 as shown in Table 1. The performance incentive calculation below also includes the 215 municipal EECRF proceeding costs of $26,94. As a result, the total program costs for the performance incentive calculation will not match the actual total program costs exhibited in Table 1. Table 15: 215 Performance Incentive Calculations k kh Demand and Energy Goals 11,16 19,552,32 Demand and Energy Savings Actual Demand and Energy Savings (including Hard-to-Reach) 12,35 22,282,527 Reportederified Hard-to-Reach 964 PUCT-App roved Avoided Costs per k $8 per kh $.5321 Inflation Rate 2.% Discount Rate 6.613% Total Avoided Costs $17,112, Program Costs (includes allocated EM&V and municipal EECRF proceeding costs ) $4,97,49 et Benefits $13,14,567 Performance Incentive $667,545 El Paso Electric Company Energy Efficiency Plan and Report 88

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29 C&I CFL DR DSM EEPR ACRYMS Commercial and Industrial Compact Fluorescent Lamp Demand Response Demand Side Management Energy Efficiency Plan and Report Exhibit AGP-1 Page 31 of 41 EE Rule Energy Efficiency Rule, 16 TAC and EESP EPE ERCT EM&V HTR M&V MTP PUCT PURA PV R&D REP RES SCRE SP TAC Energy Efficiency Service Provider El Paso Electric Company Electric Reliability Council of Texas Evaluation, Measurement & Verification Hard-To-Reach Measurement and Verification Market Transformation Program Public Utility Commission of Texas Public Utility Regulatory Act Photovoltaic Research and Development Retail Electrical Provider Residential Schools and Cities Conserving Resources Standard ffer Program Texas Administrative Code GLSSARY Glossary is the same as the definitions in 16 TAC (c). El Paso Electric Company A Energy Efficiency Plan and Report 89

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31 APPEDIX A: REPRTED DEMAD AD EERGY REDUCTI Table 16: Program Savings by County BY d"141f'p'1 Page 32 of 41 Commercial SP County # of Participants Reported Savings k kh El Paso County ,896,843 Total ,896,843 Small Commercial Solutions MTP County # of Participants Reported Savings k kh El Paso County ,7,513 Total ,7,513, Large C81 Solutions MTP County # of Participants Reported Savings k kh El Paso County 259 1,945 9,53,826 Total 259 1, ,826 Texas SCRE MTP County # of Participants Reported Savings k kh El Paso County ,744,95 Total ,744,95, Load Management SP County # of Participants Reported Savings k kh El Paso County 1 6,711 33,555 Total 1 6,711 33,555 El Paso Electric Company A Energy Efficiency Plan and Report 9

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33 Commercial Rebate Pilot Program County # of Participants Reported Savings k kh El Paso County ,488 Total ,488 Residential Solutions MTP Livingise" MTP County # of Participants Reported Savings k kh El Paso County ,956 Total ,956, County # of Participants Reported Savings k kh El Paso County 9, ,161,916 Hudspeth County ,981 Total 9, ,165,897 Hard-to-Reach Solutions MTP County # of Participants Reported Savings k kh El Paso County 1, ,479,742 Total 1, ,479,742, Appliance Recycling MTP Solar PV Pilot MTP County # of Participants Reported Savings k kh El Paso County 1, ,231,776 Hudspeth County ,384, Total 1, ,235,16 Exhibit AGP-1 Page 33 of 41 County # of Participants Reported Savings k kh El Paso County ,642 Total ,642, El Paso Electric Company A Energy Efficiency Plan and Report 91

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35 REDLIE PAGES ExhibitAGP-1 Page 34 of 41 El Paso Electric Company 216 Energy Efficiency Plan and Report 16 Texas Administrative Code and April 1, 216 (Revised April 18, 216) Project o El Paso Electric 92

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37 EXECUTIVE SUMMARY Exhibit AGP-1 Page 35 of 41 The Energy Efficiency Plan portion of this EEPR details EPE's plans to meet the energy efficiency demand reduction goal for 216 as established pursuant to 16 TAC (e)(2). The final order of Docket o ' issued on ovember 6, 215, established the EECRF rates applicable to EPE for 216. The order also left in place the same demand reduction goal as EPE had in 215 for the 216 energy efficiency programs. This goal was M, which is greater than fourtenths of one percent of EPE's average weather-adjusted peak demand at meter for 21 through 214. In accordance with 16 TAC (e)(1)(E), EPE's demand reduction goal in any year shall not be lower than its goal for the prior year, so EPE's 217 demand reduction goal should also remain at M. The final order of Docket o also established an energy efficiency program budget for 216 of $4,384,65.2 EPE made some modifications to the individual program budgets that were identified in the 215 EEPR, but the overall program budget for 216 remained at $4,384,65. These modifications were made due to the fact that the third party implementer for EPE's Appliance Recycling Program was placed into receivership on ovember 18, 215. EPE discontinued this program at that time and the funds for 216 were re-distributed to the Commercial SP and the Texas Schools and Cities Conserving Resources (Texas SCRE) MTP and the demand goals for these programs was adjusted. 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 and budgets is presented in Table 1. The Energy Efficiency Report portion of this EEPR shows that, in 215, EPE achieved a demand reduction in excess of its goal. This was accomplished through the implementation of SPs, MTPs and a utility self-delivered program. In 215, the Company achieved a demand reduction of M which exceeded the demand reduction goal of M by _26%. The SPs that EPE provided in 215 were the Commercial SP and the Load Management SP The MTPs were the Small Commercial Solutions MTP, the Large Commercial & Industrial (C&I) Solutions MTP, the Texas SCRE MTP, the Residential Solutions MTP, the Livingisee MTP, the Hard-to-Reach Solutions MTP, the Appliance Recycling MTP, and the Solar Photovoltaic (PV) Pilot MTP. The self-delivered program for 215 was the Commercial Rebate Pilot Program. Table 1: Summary of 216 & 217 Projected Goals, Savings and Budgets' Goal Metric: Average Goal Metric: Statutory 3'ib of 5-year Projected Projected Growth in e A% of S-year Peak Energy M Proposed Calendar M Dem nd Average Peak Dbnund Goal Budget Year Growth f Savings Savings (M at derrend (M Goal tmy)* (111111, at (at Meter) (at Motor) e) Meter) at Meter) (M Mater) , ,23 $4, , ,92 $4,48 ' Demand goal is never lower than the prior year's goal "- Calculated using a 2% conservation load factor 'Application of E/ Paso Electric Company for Approval to Revise its Energy Efficiency Cost Recovery Factor and Request to Establish Revised Cost Cap, Docket o Z!d. at Finding of Fact o Average Growth in Demand and eather Adjusted Peak Demand are found in Table 4, Projected Demand and Energy Reductions are found in Table 5, and Proposed Budgets are found in Table 6 Ei Paso Electric Company Energy Efficiency Plan and Report 93

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39 EERGY EFFICIECY REPRT Exhibit AGP-1 Page 36 of 41 V. Historical Demand Goals and Energy Targets for Previous Five Years Table 7 documents EPE's actual demand reduction goals and energy targets for the previous five years ( ) calculated in accordance with 16 TAC Table 7: Historical Demand Savings Goals and Energy Targets ( at Meter) Calendar Year Demand Goals (M) Energy Targets (Mh) Actual Demand Reduction Actual Energy Savings (Mh 215a , , , , , , " , , 'z , , M goal and Mh target as reported in EPE's EEPR filed April 1, 215 under Project o demand reduction and actual energy savings reported in this document, Project o M goal and Mh target as reported in EPE's EEPR filed April 1, 214 under Project o demand reduction and actual energy savings reported in this document, Project o M goal and Mh target as reported in EPE's EEPR filed March 29, 213 under Project o demand reduction and actual energy savings reported in Project o " 212 M goal and Mh target as reported in EPE's EEPR filed March 3, 212 under Project o demand reduction and energy savings modified pursuant to settlement of Docket o M goal and Mh target as reported in EPE's EEPR filed April 1, 211 under Project o demand reduction and energy savings modified pursuant to settlement of Docket o El Paso Electric Company

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41 Vl. Projected, Reported and Verified Demand and Energy Savi -Eybibit AGP-1 "la'ge 37 of 41 Revised Table 8: Projected versus Reported Savings for 214 and 215 (at Meter) Reported and Verified 214 Projected Savings Savinns Customer Class and Program M Mh M Mh Commercial , ,977 Commercial SP ,197 Small Comm. Solutions MTP.73 3, ,124 Large C&I Solutions MTP ,633 Texas SCRE MTP ,948 Load Management SP Commercial Rebate Pilot Program Residential.46 2, Residential Solutions MTP Livin isek MTP.6 1,535,89 45 Hard-to-Reach.8 1, ,75 Hard-to-Reach Solutions MTP ,75 Residential / Commercial.443 1, ,91. Appliance Recycling MTP.22 1, ,591 Solar PV Pilot MTP Total , Projected Savings Reported and Verified SavInns Customer Class and Prog ram M Mh M Mh Commercial , ,263 Commercial SP.6 2, ,897 Small Comm. Solutions MTP.73 3, ,7 Large C&l Solutions MTP 1.8 7, ,54 Texas SCRE MTP.5 1, ,775 Load Management SP Commercial Rebate Pilot Program Residential.54 2, ,767 Residential Solutions MTP.4 71,4 61 Livi n ise IR MTP.14 1, ,166 Hard-to-Reach.8 1, ,48 Hard-to-Reach Solutions MTP.8 1, ,48 Residential! Commercial.443 1, ,773 Appliance Recycling MTP.22 1, ,235 Solar PV Pilot MTP Total , ,283 El Paso Electric Company Energy Efficiency Plan and Report 95

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43 Residential Solutions MTP Exhibit AGP-1 Page 38 of 41 In 215, the Residential Solutions MTP offered residential customers, through the use of participating contractors, incentives for making energy efficient improvements to their homes. This program focused on improving the energy efficiency of residential buildings, as well as improving the installation practices of the participating contractors. EPE contracted with a third-party implementer to administer the Residential Solutions MTP. The 215 goal for this program was 4 k. There were 938 participants that reduced demand by approximately 4 k and saved 6,956 kh in energy. Livingise MTP The Livingise MTP is an educational program that uses a school-based method that builds student knowledge, provides high energy efficiency devices to families and serves as an effective community outreach program. In 215, each participant received a kit that contained energy saving devices to be installed in their homes, as well as energy efficiency educational materials. The 215 goal for this program was 14 k. In 215, the Livingise" MTP provided 9,371 Livingise kits. The savings from this program were 223 k in demand savings and 1,165,897 kh in energy savings. Hard-to-Reach Solutions MTP In 215, the Hard-to-Reach Solutions MTP offered residential customers who were at or below 2% of the Federal Poverty Guidelines, through the use of participating contractors, incentives for making energy efficient improvements to their homes. This program focused on improving the energy efficiency of low income residential buildings, as well as improving the installation practices of the participating contractors. EPE contracted with a third-party implementer to administer the Hard-to-Reach Solutions MTP. The 215 goal for this program was 8 k There were 1,157 projects in this program that reduced demand by 964 k and saved 1,479,742 kh in energy. Appliance Recycling MTP In 215, the Appliance Recycling MTP provided incentives to encourage EPE customers to recycle their older, less efficient refrigerators and freezers. This program removed these appliances from the electric grid, thus reducing system-wide load and peak demand. The 215 goal for this program was 22 k. EPE removed and recycled 1,95 units through the Appliance Recycling MTP. This program reduced demand by 189 k and saved 1,235,16 kh of energy savings. Solar PV Pilot MTP In 215, the Solar PV Pilot MTP provided EPE customers with incentives, through participating contractors, for installing solar PV distributed generation systems. This program encouraged customers to install solar PV systems on their homes and businesses by reducing the up-front cost of these systems. The 215 goal for this program was 241 k. There were 39 projects that reduced demand by 2g3-279 k and saved ,642 kh. El Paso Electric Company Energy Efficiency Plan and Report 96

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45 41 City and County Service Rate 1 $.qm AU 39 ni University Service Rate $ (.149) 46 Maintenance Power Service For Cogeneration And Small Power Production Facilities $ (.494) 47 Backup Power Service For Cogeneration And Small Power Production Facilities $ (.494) XI. Revenue Collected through EECRF In 215, EPE collected a total of $6,634,67 under Rate Schedule o Energy Efficiency Cost Recovery Factor. XIi. verlunder Recovery of Energy Efficiency Program Costs In 215, EPE over-recovered an amount of $38,39 as shown in Table 13. Table 13: Authorized and Actual Recovery Amounts Description Authorized in Docket o. Actual January 1- December 31, 215 Energy Efficiency Costs $ 4,384,65 $ 3,955, and 215 EM&V Costs (PY214 Review) $ 99,722 $ 94, ver /Under Recovery $ $ 82, Performance Bonus $ 2,35,783 $ 2,35, EECRF Proceeding Costs $ 85,1 $ 85,1 215 Total Costs and Bonus $ 6,688,126 $ 6,254, EECRF Revenues $ 6, (ver)/under Recovery $ (38,39) XIII. Underserved Counties EPE serves customers in three Texas counties: Culberson, Hudspeth, and El Paso. During 215, the majority of energy efficiency projects were in El Paso County. EPE has defined Underserved Counties as any county in the Texas EPE service territory that EPE reported no demand or energy savings through any of its 215 energy efficiency programs. Based on this definition, only Culberson County had no demand or energy savings in 215. Table 14: 215 Energy Efficiency Activities by County County Participants Re rted Savings k kh El Paso County 13,94 12, Culberson County Hudspeth County ,365 Total 13,129 t2-,3u12, ,4; El Paso Electric Company Energy Efficiency Plan and Report 97

46 XIV. Performance Incentive Calculation Exhibit AGP-1 Page 4 of 41 ( EPE achieved a12: M reduction in demand from its energy efficiency programs offered in 215. EPE's demand reduction goal for 215 was M. EPE's achievement represents % of its demand reduction goal, qualifying it for a performance incentive, Per 16 TAC , EPE is eligible for a performance incentive of $67q-,948667,545 which it plans to request in its 216 EECRF filing. Per the PUCT, the total program costs to be used in the performance incentive calculation below include the 215 EM&V cost allocation of $58,21 as provided by the statewide EM&V evaluator, rather than EPE's actual booked EM&V costs of $78,15 as shown in Table 1. The performance incentive calculation below also includes the 215 municipal EECRF proceeding costs of $26,94. As a result, the total program costs for the performance incentive calculation will not match the actual total program costs exhibited in Table 1. Table 15: 215 Performance Incentive Calculations kw kh Demand and Energy Goals 11,16 19,552,32 Demand and Energy Savings Actual Demand and Energy Savings (including Hard-to-Reach) 12, ,34-4.a Reportedeniied Hard-to-Reach 964 PUCT-Approved Avoided Costs per k $8. per kh $.5321 Inflation Rate 2 % Discount Rate 6,613% Total Avoided Costs $17.467;445112, Program Costs (includes allocated EM&V and municipal EECRF proceedin g costs) $4,97,49 et Benefits $13,Ara Performance Incentive $&7-7,$qgg El Paso Electric Company Energy Efficiency Plan and Report 98

47 Commercial Rebate Pilot Program County # of Parti c ipants Reported Savings k kh El Paso County ,488 Total ,488 Residential Solutions MTP Livingise'k MTP C ounty # of Part i c ipants Reported Savings k kh El Paso County ,956 Total ,956, C ounty # of Part i c i pants Reported Savings k kh El Paso County 9, ,161,916 Hudspeth County ,981 Total 9, ,165,897 Hard-to-Reach Solutions MTP C ounty # of Partic ipants Reported Savings k kh El Paso County 1, ,479,742 Tota l 1, ,479,742 Appliance Recycling MTP County # of Partic ipants Reported Savings k kh El Paso County 1, ,231,776 Hudspeth County ,384 Total 1, ,235,16 Solar PV Pilot MTP County # of Participants Reported Savings k kh El Paso County , Total ; Exhibit AGP-1 Page 41 of 41 El Paso Electric Company A Energy Efficiency Plan and Report 99

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