El Paso Electric provides electricity to customers in west Texas and southern New Mexico. It owns power generation facilities with a total capacity of 1,785 MW, primarily fueled by nuclear, natural gas, and coal. The company is experiencing above average customer and sales growth due to economic expansion in its service territory. El Paso Electric has a sizable capital expenditure plan over the next several years to build new infrastructure to meet increasing demand. It maintains good financial stability and credit ratings to support its investments.

1. EL PASO ELECTRIC
EEI Conference
November 2012

2. Safe Harbor Statement
Statements in this presentation, other than statements of historical information, are forward-looking statements that are
made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (the “act”). Such
statements are intended to be made as of the date of this presentation, and the company does not undertake to update any
such forward-looking statement. Forward-looking statements involve known and unknown risks and other factors that may
cause actual results to differ materially from those expressed in this presentation. In connection with the safe-harbor
provisions of the act, the company has set forth below a number of important risks and factors that could cause actual results
to differ materially from forward-looking information. Factors that could cause or contribute to such differences include, but
are not limited to:
 Increased prices for fuel and purchased power and the possibility that regulators may not permit EE to pass through all
such increased costs to customers or to recover previously incurred fuel costs in rates
 The ability to increase rates to recover capital investments and operating costs in Texas and New Mexico
 Uncertainties and instability in the general economy and the resulting impact on EE’s sales and profitability
 Unanticipated increased costs associated with scheduled and unscheduled outages
 The size of our construction program and our ability to complete construction on budget and on time
 Costs at Palo Verde
 Deregulation and competition in the electric utility industry
 Possible increased costs of compliance with environmental or other laws, regulations and policies
 Possible income tax and interest payments as a result of audit adjustments proposed by the IRS or state taxing
authorities
 Uncertainties and instability in the financial markets and the resulting impact on EE’s ability to access the capital and
credit markets
 Other factors detailed by EE in its public filings with the Securities and Exchange Commission. EE’s filings are available
from the Securities and Exchange Commission or may be obtained through EE’s website, http://www.epelectric.com
Any such forward-looking statement is qualified by reference to these risks and factors. EE cautions that these risks and
factors are not exclusive. EE does not undertake to update any forward-looking statement that may be made from time
to time by or on behalf of EE except as required by law.
2

3. El Paso Electric Profile
Net 2011 Native Retail 12 Months Credit Estimated 2012 EPS
NYSE Ticker Dependable System Peak Customers Ended Sept Ratings 2012 Guidance
Symbol Generating Demand * 2012 EPS Dividend (Basic)
Capability (Basic) Yield
S&P
ee 1 BBB
$2.20
1,785 1,711 Approx (Low)
$2.28 ~3.00%
MW MW 384,000 $2.40
Moody’s
(High)
Baa2
* Did not set a new Native Peak in 2012
3

4. EE Overview
Regional electric utility serving west Texas and
southern New Mexico
Rate regulated business – no retail competition –
fuel “pass through”
Above average customer and retail sales growth
Sizable capital expenditure plan and resulting
rate base growth for the next several years
Financially strong utility with good credit metrics
Favorable environmental profile
4

5. Service Territory
 No interconnection with ERCOT
 Interconnected with Mexico
12 Months Ended 09/30/2012
Operating Revenues, Net of
MWH Sales Energy Expenses ($000)
Service Texas 6,015,130 77% $440,750 76%
Territory New Mexico 1,694,757 22% 136,891 24%
FERC 63,673 1% 2,291 0%
Total Native Load
Sales 7,773,560 100.00% $579,932 100%
Other * 0 32,433
 Approximately 384,000 retail customers
Off-System Margins ** 2,491,398 1,375
 EPE owns 1,820 miles of transmission and
distribution lines Total 10,264,958 $613,740
 Clean dependable generating capability
1,785 MW (net) - nuclear (36%), gas (58%)
and limited coal (6%) * Represents revenues with no related kWh sales
**Off-System Sales are sales made to power marketers and other utilities with the exception of the
Rio Grande Electric Cooperative which is a full requirements customer.
Effective July 1, 2010, 90% of off-system sales margins are shared with retail customers.
5

6. Regulatory Overview
Regulated in Texas by PUCT, in New Mexico by
NMPRC and by FERC
No current No current
plans for a plans for a New FERC rates
Texas rate Mexico rate are formula
case prior to case prior to based
2013* 2013*
* Texas and New Mexico rate cases are likely to be deferred until 2014
6

7. Above Average Customer and
Retail Sales Growth
EE continues to have above average growth
as compared to the industry
7

8. Five Year Total Customer and
KWh Sales Growth
5 Year Retail Customer Growth 5 Year Retail KWh Sales Growth
3.00% 4.50%
4.04%
4.00%
2.50%
3.50%
2.00% 1.82% 3.00%
2.50% 2.35%
1.50%
2.00%
1.00% 1.50%
0.50% 1.00%
0.43%
-0.12% 0.50%
0.00% 0.00%
-0.50% Industry (2006-2011)
Industry Avg. Customer Excluding Industrial EE (2006-2011)
EE Avg. Customer Growth
(2006-2011) Growth (2006-2011) (2006-2011)
Source: Industry data detailed in EEI-2011 Financial Review Report Source: Industry retail kWh sales data obtained from the Energy
Information Administration website http://www.eia.doe.gov
8

9. Sales Growth by Class
2800
GWH Sales by Class
2600
2400
2200
GWH Sales
2000
1800
1600
1400
1200
1000
800
2007 2008 2009 2010 2011 2012
12 ME
9/30/12
Residential C & I Small C & I Large Public Authorities
CAGR 3.6% CAGR 1.3% CAGR -2.1% CAGR 2.5%
 Above-average customer and retail kWh sales growth exceeds the industry average;
reflects the expansion at Fort Bliss and economic growth in the service territory
 Fort Bliss currently represents approximately 67 MW’s of load
 Current active duty soldier population of approximately 30,000
 Single-family building permits – a leading indicator for the housing sector –
increased 10% in 2011 over 2010
9

10. Residential Customer and Usage
per Customer Growth
Number of Usage per
Customers Customer
360,000 7,814 8,000
7,560 7,641
7,085 7,244 7,500
340,000 6,936 6,852 6,955
6,694 6,761 6,769 7,000
320,000
6,500
300,000 6,000
280,000 5,500
260,000 5,000
4,500
240,000
4,000
220,000 3,500
200,000 3,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 12 ME
2012
9/30/12 2011 Customer
usage is weather
Residential customers at end of year Avg annual kWh use per residential customer normalized
 Refrigerated air conditioning is being installed in 10 Year CAGR
99% of new homes; approximately 35% of El EE Industry
Paso residences have refrigerated air Usage per Customer 1.59% 0.47%
conditioning
Customer Growth 2.07% 0.21%
 Refrigerated air conditioning uses 85% less water
and 3 times more electricity than evaporative
coolers * Source EEI-2011 Financial Review Report
10

11. El Paso Economic Base
Gross Metropolitan Government Private Sector
Product
5.3%
17.8% 12.3%
25.9% 36.8%
8.6%
47.9%
74.1% 34.3%
9.0% 28.0%
Private Sector Government Federal Civilian Federal Military Construction Manufacturing
State and Local Retail Trade Real Estate
Health Care All Other
Source: Bureau of Economic Analysis data for 2009
11

12. El Paso Economic Environment
 The El Paso Electric service territory is well insulated against
national economic downturns
 Key El Paso service area economic indicators experienced
growth over the 2008 to 2011 period
2008 2011 CAGR
Per Capita Income $ 27,332 $ 29,268 2.3%
Retail Sales $ 8,514 $ 8,894 1.5%
SFR Building Permits 2,897 3,280 4.2%
Gross Metropolitan Product $ 25,600 $ 28,800 4.0%
(Retail Sales and GMP $ in millions)
 Several key growth areas - Children’s hospital, University
Medical Center and a new hospital at Fort Bliss
12

13. Expanding Rate Base
Capital requirements are being driven by the
need to build infrastructure to meet customer
demand
13

14. Load and Resources
Solar & Purchases
Company Owned Generation 1,785 MW’s 152 MW’s
Solar
Palo Rio Four Hueco Power
Newman Copper Resource
Verde Grande Corners Mountain 47 MW’s
•Natural
•Natural
•Natural Purchases
Gas •Nuclear •Coal Gas •Wind Includes
Gas •105 MW’s
•752 MW •633 MW •108 MW •62 MW •1 MW Purchases
•229 MW
2012 Total Energy Resources 1,937 MW’s
Record Native Peak 1,711 MW’s set in 2011
14

15. Generation Additions Schedule
Generating Capacity (MW)  Existing Capacity 1785 MW
2,094 Additions
2,006
1,963  2012 Newman Solar (2.5 MW)
1,875
1,788  2013 Rio Grande 9 (87 MW)
 2014 LMS Unit 1 (88 MW)
 2015 LMS Unit 2 (88 MW)
 2016 LMS Unit 3 (88MW)
Unit Retirements (a) (b)
 2014 Rio Grande 6 (45 MW)
 2016 Four Corners (FC) 4 & 5 (104 MW)
(a) Unit retirements occur in December and impact
capacity available in the following year
2012 2013 2014 2015 2016 (b) EPE is seeking to retire or sell FC by the
end of 2016
Existing Generation Generation Additions
15

16. Financial Stability
EE has solid credit metrics, which should allow
continued access to capital markets, while at the
same time providing cash for common
dividends and construction expenditures
16

17. Capital Requirements and
Liquidity
 At September 30, 2012, EE had liquidity of $246.7mm
including a cash balance of $8.7mm and the revolving
credit facility which was upsized to $300 mm early in
2012
 Capital expenditures in 2012 are anticipated to be
$220.7mm (previously $232.1mm)
 EE dividend payments expected to be $38.9mm in 2012
 Increased the quarterly cash dividend 13.6% from $0.22
per share to $0.25 per share in the 2nd Quarter of 2012
 Completed refinancing of Pollution Control Bonds on
August 28, 2012 in the aggregate amount of $92.5mm;
annual savings of approximately $1.1mm
17

18. Commitment to Credit Quality
Capital Structure Book Capitalization Regulatory Capitalization**
As of 09/30/2012 *
(thousands)
Common Stock Equity $830,274
Long-term & short term debt, net of RGRT 771,838 Debt Equity Debt Equity
Total Capitalization Before RGRT $1,602,112 52.3% 47.7% 48.2% 51.8%
RGRT - LT & ST Debt 139,542
Total Capitalization After RGRT $1,741,654
Moody's S&P
* Capital structure includes current maturities and short-term
borrowings
EE (unsecured) Baa2 BBB
 Well positioned to finance Stable Stable
planned investments
 Investment grade credit ratings ** Regulatory Capitalization excludes borrowings for NF by the Rio Grande Resources
Trust (RGRT), while book capitalization includes nuclear fuel borrowings in the debt
 S&P reaffirmed its BBB rating and Stable portion of capitalization.
Outlook in July 2012
 Moody’s reaffirmed its Baa2 rating and
Stable Outlook in August 2012
18

19. Stock Performance
MARKET PRICE PER SHARE CUMULATIVE SHARE PURCHASES *
(in millions)
9/30/12 –
$34.25 2012 – 25.41
2011 – $34.64 2011 – 25.41
2010 – $27.53 2010 – 22.62
2009 – $20.28 2009 – 21.10
Relative Price Performance El Paso Electric vs. S&P
Electric and S&P 500 Utilities Indices 12/31/10-9/30/12
140%
130%
120%
110%
100%
90%
80%
EE S&P Electrics S&P 500 Utilities
* EE Initiated a quarterly cash dividend in 2011 distributing a total of $27.2 mm in 2011 and expected $38.9mm during 2012
19

20. Earnings Per Share Performance
$2.48
$2.28
$2.07
$1.50
2012 EPS
Guidance
Range is
$2.20 to $2.40
2009 2010 2011 12 ME
2012
9/30/12
20

21. Favorable Environmental Profile
EE has a favorable environmental profile and is
well-positioned to comply with proposed
environmental regulations
21

22. Diversified Energy Portfolio
and Low Carbon Footprint
2012 Energy Sources (by MWh’s) EE vs. U.S. Carbon Footprint
(As of September 30, 2012) (Short tons CO2 equivalent emissions/MWH)
Coal
6%%
Natural
Gas 27% Nuclear 46% 2009 National Average 0.61
2011 EE 0.32
Purchased
Power 21%
Renewable energy purchases represent 5% of total purchase power
22

23. Environmental Regulations
 Recent Environmental Rulemaking
 Cross State Air Pollution Rule (CSAPR) was vacated by the D.C.
Circuit Court of Appeals on August 21, 2012
Any possible replacement rule will likely take several years before
utilities would have to comply
EE’s exposure to possible cross state air pollution rules are minimal
due to natural gas-fired generation in Texas
 Mercury and Air Toxics Standards (Utility MACT) requires
significant reductions in emissions of mercury and other air toxics
EPA estimates the cost to U.S. utilities could reach $35 billion
EE will not have any costs associated with MACT requirements
 Rule will not apply to EE’s local generation due to natural gas-fired units; fuel
oil for back-up/emergency usage will be below rule applicability levels
 No modifications expected at Four Corners due to this rule
23

24. Texas Renewables
 Requirements
 EE must obtain approximately 2% of Texas energy sales from renewables
through renewable generation or purchase of Renewable Energy Credits
(REC’s)
 Compliance
 EE primarily purchases REC’s
 CCN for 2.5MW’s of Texas solar is
pending PUCT approval
 Cost Recovery
 REC costs recovered through base rates
 EE capital investments included in rate
base
 Purchased energy costs (including
REC’s) recovered through fuel
24

25. New Mexico Renewables
 Requirements
 EE is required to meet 10% of its
current retail energy sales in New
Mexico via renewables; escalates to
15% in 2015 and to 20% in 2020
 Must be from diverse sources – at
least 20% solar, 20% wind, 10% other
and 1.5% renewable distributed
generation (increases to 3% in 2015)
 Compliance
 Purchase of wind RECs from PNM Resources (PNM) and Southwestern Public
Service (SPS)
 Purchase 47MW of solar PV energy as of July 2012
 Cost Recovery
 Renewable energy with RECs recovered through fuel clause; RECs without
energy recovered through base rates
25

26. Appendix
26

27. Cooling Degree Days (CDD)
2009 2010 2011 12 ME 9/30/2012
Average for Previous 10 Calendar Years 2,503 2,556 2,562 2,616
Actual CDD 2,768 2,738 3,141 2,856
Percent Change in CDD from 10 Year Average 10.59% 7.12% 22.60% 9.17%
Year over Year Change 3.20% -1.08% 14.72% -9.07%
• Cooling Degree Days are calculated on a base temperature of 65°F
• Daily average temperatures above 65°F are aggregated to CDD
A 1% change in either cooling or heating degree days over/under the
10 year normal equates to a $0.010 - $0.015 change in EPS
27

28. State Regulatory
Commissioners
Public Utility Commission of Texas - Appointed by Governor
Name Position Term Ends Party
Donna L. Nelson Chair 08/31/2015 Republican
Kenneth W. Anderson Commissioner 08/31/2017 Republican
Rolando Pablos Commissioner 08/31/2013 Republican
New Mexico Public Regulation Commission - Elected
Name District Term Ends Party
Jason Marks 1 12/31/2012 Democrat
Patrick Lyons (Chair) Chair 2 12/31/2014 Republican
Dr. Doug Howe Commissioner 3 12/31/2012 Independent
Theresa Bencenti-Aguilar Commissioner 4 12/31/2014 Democrat
Ben Hall Commissioner 5 12/31/2014 Republican
28

29. EE Contact Information
Tom Shockley El Paso Electric Headquarters
Chief Executive Officer Stanton Tower
(915) 521-5721 100 North Stanton
tom.shockley@epelectric.com El Paso, Texas 79901
(800) 592-1634
David G. Carpenter
Senior Vice President - Chief Financial Officer
(915) 543-5945
david.carpenter@epelectric.com
Steven P. Busser
Vice President –Treasurer
(915) 543-5983
steve.busser@epelectric.com
Lisa D. Budtke
Assistant Treasurer
(915) 543-5947
Lisa.budtke@epelectric.com
29