Expected next investor conference call information:
Conference Call Date: 10/29/2009
Conference Call Time (ET): 10:30 AM
Conference Call URL: http://www.epelectric.com

-- For the third quarter 2009, EE reported net income of $33.9 million, or $0.76 basic and diluted earnings per share. In the third quarter of 2008, EE reported net income of $33.1 million, or $0.74 basic and diluted earnings per share.

-- For the nine months ended September 30, 2009, EE reported net income of $59.0 million, or $1.31 basic and diluted earnings per share. Net income for the nine months ended September 30, 2008 was $66.8 million, or $1.49 and $1.48 basic and diluted earnings per share, respectively.

"We were very pleased with the increase in earnings this quarter as growth in non-fuel retail revenues offset declines in off-system sales margins and deregulated Palo Verde Unit 3 revenues reflecting lower market power prices," said David W. Stevens, Chief Executive Officer. "The increase in retail non-fuel revenues reflected not only hotter summer weather in 2009, but also growth in the number of customers served showing the strength of our local economy. In addition, due to our strong quarter, stable outlook, and improving capital markets, we purchased approximately 751,000 shares of our common stock in the third quarter of 2009."

Earnings Summary

The table and explanations below present the major factors affecting 2009 net income relative to 2008 net income.

                                       Quarter Ended                            Nine Months Ended
                                       Pre-Tax       After-Tax       Basic      Pre-Tax        After-Tax       Basic
                                       Effect        Net             EPS        Effect         Net             EPS
                                                     Income                                    Income
September 30, 2008                                   $   33,074      $ 0.74                    $   66,796      $ 1.49
Changes in:
Retail non-fuel base revenue           $  10,887         6,859         0.15     $  9,842           6,200         0.14
Interest and investment income            1,551          1,407         0.03        (2,120  )       (1,687 )      (0.04 )
Interest on long-term debt                387            244           -           (5,051  )       (3,182 )      (0.07 )
Retained margins on off-system sales      (3,077 )       (1,939 )      (0.04 )     (10,084 )       (6,353 )      (0.14 )
Deregulated Palo Verde Unit 3 revenues    (2,803 )       (1,766 )      (0.04 )     (6,626  )       (4,175 )      (0.10 )
Administrative and general                (2,379 )       (1,499 )      (0.03 )     (1,494  )       (941   )      (0.02 )
Palo Verde O&M                            (1,175 )       (740   )      (0.02 )     (47     )       (30    )      -
Fossil Fuel Plant O&M                     (551   )       (347   )      (0.01 )     1,977           1,245         0.03
AFUDC and capitalized interest            (376   )       (279   )      -           1,169           1,270         0.03
Other                                                    (1,082 )      (0.02 )                     (171   )      (0.01 )
September 30, 2009                                   $   33,932      $ 0.76                    $   58,972      $ 1.31

Third Quarter 2009

Earnings for the quarter ended September 30, 2009 when compared to the same period last year were positively affected by:

-- Higher retail non-fuel base revenues in 2009 primarily due to a 13.6% increase in kWh sales to residential customers and a 6.1% increase in kWh sales to public authorities.

-- Increased interest and investment income primarily due to a decrease of $2.5 million in impairments and losses on equity securities in our Palo Verde decommissioning trust funds in the third quarter of 2009 when compared to the third quarter of 2008.

Earnings for the quarter ended September 30, 2009 when compared to the same period last year were negatively affected by:

-- Lower retained margins on off-system sales as lower market prices resulted in reduced margins per MWh and a 20% decline in MWh sold in the third quarter of 2009 compared to the third quarter of 2008.

-- Decreased revenues from retail sales of deregulated Palo Verde Unit 3 power due to lower proxy market prices in the third quarter of 2009 compared to the same period in 2008.

-- Increased administrative and general expense due to increased accruals for employee incentive compensation and increased pension and benefits costs related to increased costs of postretirement benefits and medical insurance.

-- Increased Palo Verde administrative and general expense partially offset by a decrease in operating costs at all three units in the third quarter of 2009 when compared to the same period last year.

Year to Date

Earnings for the nine months ended September 30, 2009 when compared to the same period last year were positively affected by:

-- Higher retail non-fuel base revenues in 2009 primarily due to a 5.8% increase in kWh sales to residential customers and a 2.5% increase in kWh sales to public authorities partially offset by a 13.5% decrease in kWh sales to large commercial and industrial customers.

-- Lower O&M costs at our fossil-fueled generating plants as more planned major maintenance was performed in the first nine months of 2008 than was performed in the first nine months of 2009.

-- Increased AFUDC and capitalized interest in 2009 due to higher balances of construction work in progress subject to AFUDC partially offset by lower capitalized interest on nuclear fuel due to lower interest rates.

Earnings for the nine months ended September 30, 2009 when compared to the same period last year were negatively affected by:

-- Lower retained margins on off-system sales primarily as a result of reduced margins per MWh due to lower market power prices.

-- Decreased revenues from retail sales of deregulated Palo Verde Unit 3 power due to lower proxy market prices and lower sales due mostly to a planned refueling outage in April and May 2009.

-- Increased interest expense on long-term debt as a result of the June 2008 issuance of $150 million of 7.5% Senior Notes and higher interest rates on pollution control bonds partially offset by lower interest rates on the revolving credit facility used to finance nuclear fuel.

-- An increase in impairments and losses on equity securities in our Palo Verde decommissioning trust funds in 2009 compared to 2008.

Retail Non-fuel Base Revenues

Retail non-fuel base revenues increased by $10.9 million, pre-tax, or 8.1% in the third quarter of 2009 compared to the same period in 2008 reflecting a 13.6% increase in kWh sales to residential customers and a 6.1% increase in kWh sales to other public authorities. Increased kWh sales to residential customers in the third quarter of 2009 are the result of hotter summer weather and 1.8% growth in the average number of customers served. During the third quarter of 2009, cooling degree days were 40% above the same period in 2008 and 11% above the 10-year average. Kilowatt-hour sales to public authorities reflected higher sales to Ft. Bliss and White Sands Missile Range. Sales to small commercial and industrial customers were also positively affected by the hotter summer weather. The increase in revenues was partially offset by recession-related declines in revenues from large commercial and industrial customers of 3.0%. The third quarter non-fuel base revenues and kilowatt-hour sales are provided by customer class on page 10 of the release.

For the nine months ended September 30, 2009, retail non-fuel base revenues increased by $9.8 million, pre-tax, or 2.7% primarily reflecting an increase of 5.8% in kWh sales to residential customers and a 2.5% increase in kWh sales to public authorities. These increases reflected the hotter summer weather in 2009 as well as increased sales to Ft. Bliss and White Sands Missile Range. Cooling degree days in 2009 were 23% higher than in 2008 and 8% above the 10-year average. The increase in kWh sales to residential customers also reflects growth of 1.7% in the average number of customers served. These increases were partially offset by a recession-related decline in sales to large commercial and industrial customers. Revenues from large commercial and industrial customers decreased 7.4% in the nine months ended September 30, 2009 compared to the same period in 2008. Nine months ended non-fuel base revenues and kilowatt-hour sales are provided by customer class on page 12 of the release.

Palo Verde Operations

We own approximately 633 MW (undivided interest) of generating capacity in the three generating units at the Palo Verde Nuclear Generating Station, operated by Arizona Public Service Company. The operation of Palo Verde not only affects our ability to make off-system sales but also impacts fuel costs to native load customers and represents a significant portion of our non-fuel operation and maintenance expenses. Palo Verde generation accounted for 62% of total Company generation in the nine months ended September 30, 2009. Megawatt-hours (MWh) generated by Palo Verde increased 6.3% in the nine months ended September 30, 2009 compared to the same period in 2008. In addition, Palo Verde operation and maintenance expenses were virtually the same in the nine months ended September 30, 2009 as the same period in 2008.

Off-system Sales

We make off-system sales in the wholesale power markets when competitively priced excess power is available from our generating plants and purchased power contracts. The table below shows off-system sales in MWh and the pre-tax margins realized and retained by us from sales for the quarter and nine months ended September 30, 2009 and 2008:

                                Quarter Ended           Nine Months Ended
                                September 30,           September 30,
                                2009        2008        2009           2008
MWh sales                          715,641     891,632      2,408,122      2,568,437
Total margins (in thousands)    $  3,035    $  7,139    $   10,900     $   24,314
Retained margins (in thousands) $  2,278    $  5,355    $   8,178      $   18,262

For the quarter ended September 30, 2009, retained margins from off-system sales decreased approximately $3.1 million, pre-tax, over the corresponding period in 2008. For the nine months ended September 30, 2009, our retained margins decreased $10.1 million, pre-tax, over the corresponding period in 2008. These decreases were primarily due to reduced margins per MWh as a result of lower average market prices for power. The table below shows on a per MWh basis, pre-tax revenues, costs and margins from off-system sales for 2009 and 2008.

Quarter Ended       Average    Average          Pre-Sharing
                    Revenue    Cost of Energy   Average Margin
                    Per MWh    Per MWh          Per MWh
March 31, 2008      $   66.07  $       52.60    $       13.47
June 30, 2008       $   88.78  $       84.89    $       3.89
September 30, 2008  $   71.07  $       63.07    $       8.00
March 31, 2009      $   36.49  $       30.13    $       6.36
June 30, 2009       $   35.43  $       33.63    $       1.80
September 30, 2009  $   39.61  $       35.37    $       4.24

Capital and Liquidity

We maintain a strong capital structure and cash position to support required investments in electric utility plant. Our capital structure at September 30, 2009 included 47% common stock equity and 53% debt including long-term debt, financing obligations, and the current portion of long-term debt and financing obligations. At September 30, 2009, our liquidity included $121.5 million in cash and cash equivalents, most of which was invested in federally insured accounts.

Cash flows from operations for the nine months ended September 30, 2009 were $213.5 million compared to $114.3 million in the corresponding period in 2008. The primary factor affecting the increased cash flow was the collection of retail fuel revenues in 2009 in excess of fuel expenses. The difference between fuel revenues and fuel expense is deferred for refund (over-recoveries) or surcharge (under-recoveries) to customers in the future. Cash flow from operations in the nine months ended September 30, 2009, included $59.7 million of fuel over-recoveries of which $31.9 million offset previous under-collections of fuel costs. In addition prior to their termination in May 2009, we collected $16.3 million of deferred fuel under-recoveries, including $1.3 million in interest, through two fuel surcharges implemented in 2008. At September 30, 2009, we had a net fuel over-recovery balance of $27.8 million, including a $23.1 million over-recovery in Texas, a $4.5 million over-recovery in New Mexico, and a $0.2 million over-recovery from our FERC customer. On October 22, 2009, we received approval from the Public Utility Commission of Texas to refund fuel over-recoveries through August 2009 of $16.8 million with interest to customers in November and December 2009. Over-recoveries in New Mexico and from our FERC customer will be refunded through fuel adjustment clauses during 2009.

During the nine months ended September 30, 2009, our primary capital requirements were for the construction and purchase of electric utility plant and purchases of nuclear fuel. Capital requirements for new electric plant were $145.5 million for the nine months ended September 30, 2009 compared to $141.9 million for the nine months ended September 30, 2008. Cash flows from operations funded all of our capital requirements through the first nine months of 2009.

We finance our nuclear fuel inventory through a trust that borrows under our $200 million credit facility to acquire and process nuclear fuel. Borrowings under the credit facility for nuclear fuel were $113.0 million as of September 30, 2009 and $92.2 million as of September 30, 2008. Up to $120 million of the credit facility may be used to finance nuclear fuel. Amounts not drawn for nuclear fuel are available for general corporate purposes. No borrowings were outstanding at September 30, 2009 for general corporate purposes.

We believe that we will have adequate liquidity through our current cash balances, cash from operations, and our credit facility to meet all of our anticipated cash requirements through 2009 based on current projections. We anticipate the need for additional external funds to finance capital requirements in the second half of 2010. We could seek to issue additional long-term debt or obtain funds through our existing or an additional credit facility to finance capital requirements. In September 2009, we received approval from the FERC to enter into an additional credit facility within the next two years to supply additional liquidity.

During the third quarter of 2009, EE repurchased 751,235 shares of common stock in the open market at an aggregate cost of $12.9 million. No shares of common stock were repurchased during the first or second quarters of 2009. As of September 30, 2009, approximately 770,131 shares remain available for repurchase under the currently authorized program.

2009 Earnings Guidance

We are revising our 2009 earnings guidance to a range of $1.35 to $1.55 per basic share from a range of $1.00 to $1.50 per basic share.

Conference Call

A conference call to discuss third quarter 2009 earnings is scheduled for 10:30 a.m. Eastern Time, October 29, 2009. The dial-in number is 866-793-1307 with a conference ID of 1404122. The conference leader will be Steven P. Busser, Vice President -Treasurer and Chief Risk Officer of EE. A replay will run through November 12, 2009 with a dial-in number of 866-837-8032 and a conference ID of 949181. The conference call and presentation slides will be webcast live on EE's website found at http://www.epelectric.com. A replay of the webcast will be available shortly after the call.

Safe Harbor

This news release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. This information may involve risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. Factors that could cause or contribute to such differences include, but are 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) fluctuations in off-system sales margins due to uncertainty in the economy power market and the availability of generating units; (iii) our rates in Texas following the five-year moratorium on rate increases which ends June 30, 2010; (iv) uncertainties and instability in the general economy and the resulting impact of EE's sales and profitability; (v) unanticipated increased costs associated with scheduled and unscheduled outages; (vi) the size of our construction program and our ability to complete construction on budget and on time; (vii) costs at Palo Verde; (viii) deregulation of the electric utility industry; (ix) possible increased costs of compliance with environmental or other laws, regulations and policies; (x) possible income tax and interest payments as a result of audit adjustments proposed by the IRS; (xi) uncertainties and instability in the financial markets and the resulting impact on EE's ability to access the capital and credit markets; and (xii) 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.

El Paso Electric Company and Subsidiary
Consolidated Statements of Operations
Quarter Ended September 30, 2009 and 2008
(In thousands except for per share data)
(Unaudited)
                                                                 2009           2008             Variance
Operating revenues, net of energy expenses:
Base revenues                                                    $     146,828  $     135,599    $     11,229   (a)
Off-system sales margins, net of sharing                               2,278          5,355            (3,077 )
Deregulated Palo Verde Unit 3 proxy market pricing                     3,156          5,959            (2,803 )
Other                                                                  6,807          6,395            412
Operating Revenues Net of Energy Expenses                              159,069        153,308          5,761
Other Operating Expenses:
Other operations and maintenance                                       45,474         40,969           4,505
Palo Verde operations and maintenance                                  21,710         20,535           1,175
Taxes other than income taxes                                          13,595         13,219           376
Other income (deductions)                                              876            (669    )        1,545
Earnings Before Interest, Taxes, Depreciation and Amortization         79,166         77,916           1,250    (b)
Depreciation and amortization                                          19,196         18,832           364
Interest on long-term debt                                             12,194         12,581           (387   )
AFUDC and capitalized interest                                         3,791          4,167            (376   )
Other interest expense                                                 67             (592    )        659
Income Before Income Taxes                                             51,500         51,262           238
Income tax expense                                                     17,568         18,188           (620   )
Net Income                                                       $     33,932   $     33,074     $     858
Basic Earnings per Share                                         $     0.76     $     0.74       $     0.02
Diluted Earnings per Share                                       $     0.76     $     0.74       $     0.02
Weighted average number of shares outstanding                          44,588         44,726           (138   )
Weighted average number of shares and dilutive potential shares        44,637         44,869           (232   )
outstanding
(a) Base revenues exclude fuel recovered through New Mexico base
rates of $21.2 million and $20.3 million, respectively.
(b) EBITDA is a non-GAAP financial measure and is not a substitute
for net income or other measures of financial performance in
accordance with GAAP.

El Paso Electric Company and Subsidiary
Consolidated Statements of Operations
Nine Months Ended September 30, 2009 and 2008
(In thousands except for per share data)
(Unaudited)
                                                                 2009                2008                Variance
Operating revenues, net of energy expenses:
Base revenues                                                    $    373,212        $    363,041        $    10,171       (a)
Off-system sales margins, net of sharing                              8,178               18,262              (10,084 )
Deregulated Palo Verde Unit 3 proxy market pricing                    10,149              16,775              (6,626  )
Other                                                                 17,746              15,564              2,182
Operating Revenues Net of Energy Expenses                             409,285             413,642             (4,357  )
Other Operating Expenses:
Other operations and maintenance                                      126,256             125,719             537
Palo Verde operations and maintenance                                 70,641              70,594              47
Taxes other than income taxes                                         38,623              37,318              1,305
Other income (deductions)                                             (2,040  )           (509    )           (1,531  )
Earnings Before Interest, Taxes, Depreciation and Amortization        171,725             179,502             (7,777  )    (b)
Depreciation and amortization                                         55,581              56,223              (642    )
Interest on long-term debt                                            38,314              33,263              5,051
AFUDC and capitalized interest                                        12,872              11,703              1,169
Other interest expense                                                319                 (35     )           354
Income Before Income Taxes                                            90,383              101,754             (11,371 )
Income tax expense                                                    31,411              34,958              (3,547  )
Net Income                                                       $    58,972         $    66,796         $    (7,824  )
Basic Earnings per Share                                         $    1.31           $    1.49           $    (0.18   )
Diluted Earnings per Share                                       $    1.31           $    1.48           $    (0.17   )
Weighted average number of shares outstanding                         44,709              44,791              (82     )
Weighted average number of shares and dilutive potential shares       44,739              44,965              (226    )
outstanding
(a) Base revenues exclude fuel recovered through New Mexico base
rates of $53.0 million and $53.0 million, respectively.
(b) EBITDA is a non-GAAP financial measure and is not a substitute
for net income or other measures of financial performance in
accordance with GAAP.

El Paso Electric Company and Subsidiary
Cash Flow Summary
Nine Months Ended September 30, 2009 and 2008
(In thousands and Unaudited)
                                                            2009              2008
Cash flows from operating activities:
Net income                                                  $     58,972      $     66,796
Adjustments to reconcile net income to net cash
provided by operations:
Depreciation and amortization of electric plant in service        55,581            56,223
Deferred income taxes, net                                        (2,257   )        12,792
Other                                                             22,348            24,330
Change in working capital items:
Net recovery (deferral) of fuel revenues                          74,656            (46,704  )
Other                                                             4,212             901
Net cash provided by operating activities                         213,512           114,338
Cash flows from investing activities:
Cash additions to utility property, plant and equipment           (145,465 )        (141,880 )
Cash additions to nuclear fuel                                    (34,613  )        (19,473  )
Proceeds from sale of investment in debt securities               -                 16,000
Decommissioning trust funds                                       (4,600   )        (7,967   )
Other                                                             (3,906   )        (8,396   )
Net cash used for investing activities                            (188,584 )        (161,716 )
Cash flows from financing activities:
Proceeds from exercise of stock options                           236               1,004
Repurchase of common stock                                        (12,854  )        (9,892   )
Financing obligations                                             19,365            9,233
Proceeds from issuance of long-term notes payable                 -                 148,719
Other                                                             (1,782   )        (2,217   )
Net cash provided by financing activities                         4,965             146,847
Net increase in cash and cash equivalents                         29,893            99,469
Cash and cash equivalents at beginning of period                  91,642            4,976
Cash and cash equivalents at end of period                  $     121,535     $     104,445
Cash interest payments                                      $     33,941      $     25,424

El Paso Electric Company and Subsidiary
Quarter Ended September 30, 2009 and 2008
Sales and Revenues Statistics
                                                                               Increase (Decrease)
                                                2009             2008          Amount            Percentage
MWh sales:
Retail:
Residential                                        779,282          686,247        93,035        13.6  %
Commercial and industrial, small                   667,321          655,669        11,652        1.8   %
Commercial and industrial, large                   278,158          295,298        (17,140  )    (5.8  %)
Sales to public authorities                        419,487          395,313        24,174        6.1   %
Total retail sales                                 2,144,248        2,032,527      111,721       5.5   %
Wholesale:
Sales for resale                                   18,215           14,981         3,234         21.6  %
Off-system sales                                   715,641          891,632        (175,991 )    (19.7 %)
Total wholesale sales                              733,856          906,613        (172,757 )    (19.1 %)
Total MWh sales                                    2,878,104        2,939,140      (61,036  )    (2.1  %)
Operating revenues (in
thousands):
Non-fuel base revenues:
Retail:
Residential                                     $  64,833        $  57,485     $   7,348         12.8  %
Commercial and industrial, small                   50,017           48,714         1,303         2.7   %
Commercial and industrial, large                   9,358            9,648          (290     )    (3.0  %)
Sales to public authorities                        21,867           19,341         2,526         13.1  %
Total retail non-fuel base revenues                146,075          135,188        10,887        8.1   %
Wholesale:
Sales for resale                                   753              411            342           83.2  %
Total non-fuel base revenues                       146,828          135,599        11,229        8.3   %
Fuel revenues:
Recovered from customers during the period (a)     59,373           58,791         582           1.0   %
Under (over) collection of fuel                    (23,038   )      15,784         (38,822  )    -
New Mexico fuel in base rates                      21,171           20,317         854           4.2   %
Total fuel revenues                                57,506           94,892         (37,386  )    (39.4 %)
Off-system sales                                   28,349           63,371         (35,022  )    (55.3 %)
Other                                              8,215            7,937          278           3.5   %
Total operating revenues                        $  240,898       $  301,799    $   (60,901  )    (20.2 %)
Off-system sales (in thousands):
Gross margins                                   $  3,035         $  7,139      $   (4,104   )    (57.5 %)
Retained margins                                   2,278            5,355          (3,077   )    (57.5 %)
Average number of retail
customers:
Residential                                        326,816          321,004        5,812         1.8   %
Commercial and industrial, small                   36,158           35,977         181           0.5   %
Commercial and industrial, large                   50               51             (1       )    (2.0  %)
Sales to public authorities                        4,938            4,902          36            0.7   %
Total                                              367,962          361,934        6,028         1.7   %
Number of retail customers (end
of period):
Residential                                        327,178          321,519        5,659         1.8   %
Commercial and industrial, small                   36,319           35,961         358           1.0   %
Commercial and industrial, large                   48               51             (3       )    (5.9  %)
Sales to public authorities                        4,942            4,929          13            0.3   %
Total                                              368,487          362,460        6,027         1.7   %
Weather statistics:                   10 Yr Average
Heating degree days   2        1           1
Cooling degree days   1,601    1,147       1,441
(a) Excludes $8.4 million in 2008 of prior periods deferred fuel
revenues recovered through Texas fuel surcharges.

El Paso Electric Company
Quarter Ended September 30, 2009 and 2008
Generation and Purchased Power Statistics
                                                                       Increase (Decrease)
                                           2009          2008          Amount       Percentage
Generation and purchased power (MWh):
Palo Verde                                 1,379,943     1,332,861     47,082       3.5   %
Four Corners                               168,755       210,587       (41,832 )    (19.9 %)
Gas plants                                 782,861       835,924       (53,063 )    (6.3  %)
                   Total generation        2,331,559     2,379,372     (47,813 )    (2.0  %)
Purchased power                            726,433       730,239       (3,806  )    (0.5  %)
                   Total available energy  3,057,992     3,109,611     (51,619 )    (1.7  %)
Line losses and Company use                179,888       170,471       9,417        5.5   %
                   Total                   2,878,104     2,939,140     (61,036 )    (2.1  %)
Palo Verde capacity factor                 100.6     %   96.8      %   3.8     %
Four Corners capacity factor               83.3      %   91.6      %   (8.3    %)

El Paso Electric Company and Subsidiary
Nine Months Ended September 30, 2009 and 2008
Sales and Revenues Statistics
                                                                                  Increase (Decrease)
                                                2009               2008           Amount            Percentage
MWh sales:
Retail:
Residential                                         1,837,915          1,736,637      101,278       5.8   %
Commercial and industrial, small                    1,726,286          1,731,243      (4,957   )    (0.3  %)
Commercial and industrial, large                    756,333            874,392        (118,059 )    (13.5 %)
Sales to public authorities                         1,126,864          1,099,000      27,864        2.5   %
Total retail sales                                  5,447,398          5,441,272      6,126         0.1   %
Wholesale:
Sales for resale                                    47,173             40,734         6,439         15.8  %
Off-system sales                                    2,408,122          2,568,437      (160,315 )    (6.2  %)
Total wholesale sales                               2,455,295          2,609,171      (153,876 )    (5.9  %)
Total MWh sales                                     7,902,693          8,050,443      (147,750 )    (1.8  %)
Operating revenues (in
thousands):
Base revenues:
Retail:
Residential                                     $   153,097        $   144,457    $   8,640         6.0   %
Commercial and industrial, small                    133,569            132,887        682           0.5   %
Commercial and industrial, large                    25,926             27,995         (2,069   )    (7.4  %)
Sales to public authorities                         58,985             56,396         2,589         4.6   %
Total retail base revenues                          371,577            361,735        9,842         2.7   %
Wholesale:
Sales for resale                                    1,635              1,306          329           25.2  %
Total base revenues                                 373,212            363,041        10,171        2.8   %
Fuel revenues:
Recovered from customers during the period (a)      157,281            144,420        12,861        8.9   %
Under (over) collection of fuel                     (59,679   )        58,556         (118,235 )    -
New Mexico fuel in base revenues                    52,975             53,042         (67      )    (0.1  %)
Total fuel revenues                                 150,577            256,018        (105,441 )    (41.2 %)
Off-system sales                                    89,430             186,970        (97,540  )    (52.2 %)
Other                                               21,764             20,415         1,349         6.6   %
Total operating revenues                        $   634,983        $   826,444    $   (191,461 )    (23.2 %)
Off-system sales (in thousands):
Gross margins                                   $   10,900         $   24,314     $   (13,414  )    (55.2 %)
Retained margins                                    8,178              18,262         (10,084  )    (55.2 %)
Average number of retail
customers:
Residential                                         325,300            319,709        5,591         1.7   %
Commercial and industrial, small                    35,946             35,737         209           0.6   %
Commercial and industrial, large                    49                 53             (4       )    (7.5  %)
Sales to public authorities                         4,935              4,876          59            1.2   %
Total                                               366,230            360,375        5,855         1.6   %
Number of retail customers (end
of period):
Residential                                         327,178            321,519        5,659         1.8   %
Commercial and industrial, small                    36,319             35,961         358           1.0   %
Commercial and industrial, large                    48                 51             (3       )    (5.9  %)
Sales to public authorities                         4,942              4,929          13            0.3   %
Total                                               368,487            362,460        6,027         1.7   %
Weather statistics                    10 Yr Average
Heating degree days   1,114    1,275       1,266
Cooling degree days   2,651    2,160       2,453
(a) Excludes $16.3 million and $13.3 million, respectively, of
prior periods deferred fuel revenues recovered through Texas fuel
surcharges.

El Paso Electric Company and Subsidiary
Nine Months Ended September 30, 2009 and 2008
Generation and Purchased Power Statistics
                                                                    Increase (Decrease)
                                      2009           2008           Amount        Percentage
Generation and purchased power (MWh):
Palo Verde                            3,826,096      3,598,148      227,948       6.3   %
Four Corners                          554,711        495,099        59,612        12.0  %
Gas plants                            1,796,812      2,126,202      (329,390 )    (15.5 %)
Total generation                      6,177,619      6,219,449      (41,830  )    (0.7  %)
Purchased power                       2,168,446      2,300,865      (132,419 )    (5.8  %)
Total available energy                8,346,065      8,520,314      (174,249 )    (2.0  %)
Line losses and Company use           443,372        469,871        (26,499  )    (5.6  %)
Total                                 7,902,693      8,050,443      (147,750 )    (1.8  %)
Palo Verde capacity factor            94.0      %    87.8      %    6.2      %
Four Corners capacity factor          85.7      %    71.9      %    13.8     %

El Paso Electric Company and Subsidiary
Financial Statistics
At September 30, 2009 and 2008
(In thousands, except number of shares, book value per share, and
ratios)
Balance Sheet                                                2009                  2008
Cash and temporary investments                               $       121,535       $       104,445
Common stock equity                                          $       754,921       $       712,086
Long-term debt, net of current portion                               739,686               739,641
Financing obligations, net of current portion                        75,175                70,918
Total capitalization                                         $       1,569,782     $       1,522,645
Current portion of long-term debt and financing obligations  $       37,842        $       21,330
Number of shares - end of period                                     44,236,250            44,826,941
Book value per common share                                  $       17.07         $       15.89
Common equity ratio                                                  47.0       %          46.1       %
Debt ratio                                                           53.0       %          53.9       %

SOURCE: El Paso Electric

El Paso Electric 
Media: 
Teresa Souza, 915-543-5823 
or 
Analysts: 
Rachelle Williams, 915-543-2257 
www.epelectric.com

Expected next investor conference call information:
Conference Call Date: 10/29/2009
Conference Call Time (ET): 10:30 AM
Conference Call URL: http://www.epelectric.com

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