EPE's Eddie Tie CCN Customer Notice

EPE's Eddie Tie CCN Customer Notice PUBLIC NOTICE On June 3 2026, El Paso Electric Company ("EPE" or the "Company") filed an Application to amend its certificate of convenience and necessity ("CCN") to replace the existing Eddy high-voltage direct current ("HVDC") tie (the "Eddy Tie" or the "Project") with a new HVDC tie to be located adjacent to the existing facility. The docket number and style of the application are PUC Docket No. 59836, "Application of El Paso Electric Company to Amend its Certificate of Convenience and Necessity to Replace the Existing Eddy High-Voltage Direct Current Tie." EPE is not seeking to change its rates in this proceeding. This filing pertains to a 200 megawatt ("MW") HVDC tie facility EPE proposes to build near Artesia, New Mexico, which will provide an interconnection between the Western Electricity Coordinating Council ("WECC"), in which EPE is located, and the Southwest Power Pool ("SPP"). The new facility will be located entirely in New Mexico on land owned by the federal Bureau of Land Management ("BLM") adjacent to, and just north of, the Company's existing Eddy Tie, which the new tie is intended to replace given that the existing Eddy Tie facility has reached the end of its useful life. The proposed Eddy Tie replacement will provide benefits to all EPE customers including its retail customers in Texas. These benefits include projected quantified economic benefits as well as continuing reliability benefits. The projected economic benefits alone exceed the projected costs of the replacement facility. The original maximum power transfer capability of the Eddy Tie was 200 MW; however, currently, the maximum power transfer capability of the Eddy Tie is restricted to 105 MW to prevent component failures within the Tie. Additionally, there have been more unplanned outages due to the failure of older equipment. The current Eddy Tie is available for use on a non-firm basis only. Due to the number and duration of outages at the Tie, EPE is prevented from offering firm transmission service at that location. This non-firm service does not allow EPE or other entities to book long-term firm generation or firm transmission capacity across the Tie. The inability to book the Tie on a firm basis for long-term generation capacity has decreased the operational flexibility of EPE's transmission system. The proposed Eddy Tie replacement project would restore the ability of this part of the EPE transmission system to support firm service, allowing for reliable transmission import capability to access a geographically diverse source of resources. It would allow EPE's customers to benefit from resources located to the east of EPE's service territory at times when such resources can be secured at lower cost, and at times when other resources face challenges from transmission constraints. The estimated cost to replace the Eddy Tie (not including Allowance for Funds Used During Construction, or AFUDC) is $289,391,575 if CCN approval can be obtained by the end of 2026. The benefits to EPE's Texas retail customers would be realized through a combination of reductions in fuel costs, reductions in purchased power costs, and increases in revenues achieved through wheeling transactions. Fuel costs and purchased power costs would be reduced because, at times, power will be available at a lower cost across the replacement Eddy Tie. Having greater access to resources on the east of the Eddy Tie allows EPE to evaluate these resources as an alternative to the resources available from western sources, or to mitigate the challenges that are experienced when EPE is unable to fully access western resources due to western transmission import limitations. The deadline for intervention in this proceeding is July 3, 2026; a letter requesting intervention should be received by the Commission by that date. A request to intervene or for further information should be mailed to the Public Utility Commission of Texas, P.O. Box 13326, Austin, Texas 78711-3326. Further information may also be obtained by calling the Commission at (512) 936-7120 or (888) 782-8477. Hearing-and speech-impaired individuals with text telephones ("TTY") may contact the Commission at (512) 936-7136 or use Relay Texas (toll-free) 1-800-735-2989. A copy of EPE's petition may be viewed on the Commission's webpage at www.puc.state.tx.us. The Commission maintains an electronic copy of all filings on the "filings - interchange" section of its webpage. The control number for this proceeding on the Commission's webpage is 59836. Persons with questions, who want more information on this petition, or who want to obtain a copy of a map that depicts the facilities may also contact EPE at 100 N. Stanton Street, El Paso, Texas 79901, or call 1-800-351-1621, a toll-free number, during normal business hours. A map depicting the location of the facilities may be reviewed at EPE's offices at 100 N. Stanton Street, El Paso, Texas 79901. June 5 2026 LACO0532270