El Paso Electric Customers Set a New Peak Demand for Electricity

EL PASO, Texas–(BUSINESS WIRE)–On June 22, 2017, El Paso Electric Company (“EPE”) (NYSE: EE) customers
set a new peak demand of approximately 1,935 megawatts (MW), 2.3% or 43
MW higher than the 1,892 MW peak established on July 14, 2016. This
preliminary indication is still subject to final verification.

The week of June 18^th saw sustained near-record high
temperatures, which increased energy demand and electricity usage.
Conversions to refrigerated air conditioners, regional growth and
increasingly hotter weather have led to consistent new annual peak loads
in 16 out of the last 17 years.

“As we begin to experience prolonged periods of excessive heat, we want
to assure customers that we are working hard to maintain reliable
service,” said Mary Kipp, President and Chief Executive Officer. “Our
crews begin preparing several months leading up to the summer season, so
that we can continue meeting the high customer demand placed on the grid
during this time. Conserving energy during heat waves is an effective
way to reduce the stress on the system, protect the environment and can
possibly help save money.”

For a list of energy saving tips, visit epelectric.com.

About El Paso Electric

El Paso Electric is a regional electric utility providing generation,
transmission and distribution service to approximately 411,000 retail
and wholesale customers in a 10,000 square mile area of the Rio Grande
valley in west Texas and southern New Mexico. El Paso Electric’s common
stock trades on the New York Stock Exchange under the symbol EE.

Safe Harbor

This news release includes statements that are forward-looking
statements made pursuant to the safe harbor provisions of the Section
27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. This information may
involve risks and uncertainties that could cause actual results to
differ materially from such forward-looking statements. Additional
information concerning factors that could cause actual results to differ
materially from those expressed in forward-looking statements is
contained in EE’s most recently filed periodic reports and in other
filings made by EE with the U.S. Securities and Exchange Commission (the
“SEC”), and include, but is not limited to: (i) 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; (ii) full and timely
recovery of capital investments and operating costs through rates in
Texas and New Mexico; (iii) uncertainties and instability in the general
economy and the resulting impact on EE’s sales and profitability; (iv)
changes in customers’ demand for electricity as a result of energy
efficiency initiatives and emerging competing services and technologies,
including distributed generation; (v) unanticipated increased costs
associated with scheduled and unscheduled outages of generating plant;
(vi) the size of our construction program and our ability to complete
construction on budget and on time; (vii) potential delays in our
construction schedule due to legal challenges or other reasons; (viii)
costs at Palo Verde; (ix) deregulation and competition in the electric
utility industry; (x) possible increased costs of compliance with
environmental or other laws, regulations and policies; (xi) possible
income tax and interest payments as a result of audit adjustments
proposed by the IRS or state taxing authorities; (xii) uncertainties and
instability in the financial markets and the resulting impact on EE’s
ability to access the capital and credit markets; (xiii) possible
physical or cyber attacks, intrusions or other catastrophic events; and
(xiv) other factors of which we are currently unaware or deem
immaterial. EE’s filings are available from the SEC 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. Management cautions against putting undue reliance on
forward-looking statements or projecting any future results based on
such statements or present or prior earnings levels. Forward-looking
statements speak only as of the date of this news release, and EE does
not undertake to update any forward-looking statement contained herein.

Contacts

El Paso Electric
Public Relations:
Eddie Gutierrez,
915-543-5763
eduardo.gutierrez@epelectric.com
or
Investor
Relations:
Lisa Budtke, 915-543-5947
lisa.budtke@epelectric.com
or
Richard
Gonzalez, 915-543-2236
richard.gonzalez@epelectric.com