Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Social Responsibility
• Governance

Environmental Achievements

• Eliminated coal from generation portfolio, avoiding over one billion pounds of CO2 emissions annually.
• Expanded renewable portfolio with utility-scale solar generation.
• Reduced pesticide use and revised vegetation management strategies.
• Greenhouse gas emissions decreased, ranking in the top 25% among U.S. electric utilities.

Social Achievements

• Implemented a POWER driving program, decreasing preventable vehicle accident rate by 20%.
• Developed enhanced switching and lock-out/tag-out processes to improve safety.
• Revised emergency action plans for all EPE locations.
• Received the 2017 Local Employer of Excellence Award.
• Launched the Powerful Women Resources (PWR) program to support female employees.
• Received two SMSDC awards: “Advocate of the Year” and “Corporation of the Year”.

Governance Achievements

• Completed a reorganization to facilitate a focus on sustainability.
• Created a Director of Sustainability position.
• Energy Resources and Environmental Committee oversees environmental and climate change issues.

Climate Goals & Targets

Environmental Challenges

• Meeting continuous load growth while reducing carbon emissions.
• Balancing reliability, cost-effectiveness, and environmental consciousness in power generation.

Mitigation Strategies

• Issuing an All-Source Request-for-Proposal (RFP) for additional renewable energy capacity.
• Initiating the Public Advisory Process for the 2018 New Mexico Integrated Resource Plan (IRP).
• Evaluating technological advancements such as electric vehicles and advanced metering.
• Planning additional utility-scale solar projects.

Supply Chain Management

Responsible Procurement

• Outreach activities to identify prospective small and diverse suppliers.

Climate-Related Risks & Opportunities

Opportunities

• Expansion of renewable energy portfolio.

Reporting Standards

Frameworks Used: Edison Electric Institute (EEI) ESG/Sustainability template

Awards & Recognition

• 2017 Local Employer of Excellence Award
• 2017 ENERGY STAR® Partner of the Year
• SMSDC Advocate of the Year
• SMSDC Corporation of the Year
• Tom Hughston’s Stop Shock Safety Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Renewable Energy
• Energy Efficiency
• Community Engagement
• Employee Safety
• Water Conservation
• Waste Management
• Supplier Diversity

Environmental Achievements

• Became a coal-free utility in 2016
• Served nearly half of load with carbon-free nuclear generation
• Consistently surpassed energy efficiency performance goals
• Reduced gasoline consumption by an estimated 796 gallons and diesel consumption by an estimated 254 gallons in hybrid and plug-in hybrid fleet vehicles (equivalent to reducing CO2 emissions by approximately 13 tons)
• Improved portfolio-wide water use efficiency by divesting coal-fired generation and substituting with natural gas and solar generation
• Holloman Air Force Base Solar Array (5 MW) became commercially operational, preventing over 9,000 tons of CO2 emissions and conserving approximately nine million gallons of water annually
• Community Solar Program produced 8.4 million kWh, avoiding over 5,500 tons of CO2 emissions annually

Social Achievements

• Volunteered over 8,000 community service hours
• Achieved highest customer service ratings since 2009
• 83% of calls received by the EPE Call Center were answered within 60 seconds
• Customer satisfaction scores above the reported national average for both commercial and residential customers
• Implemented first voluntary Community Solar Program in Texas
• Initiated Electricity 101 program for regional educational institutions
• Continued High School Summer Intern Program and Summer College Internship Program
• Awarded over $1.3 million in community grants

Governance Achievements

• Adopted “Practicing Sustainability” as a Corporate Pillar of Long-Term Value
• Established carbon reduction goals: 25% below 2015 levels by 2025 and 40% below 2015 levels by 2035

Climate Goals & Targets

Environmental Challenges

• Increased carbon and criteria pollutant emissions due to load growth and planned maintenance outages at Palo Verde Generating Station
• Increased injury frequency and severity in 2018
• Wildfire risks along transmission lines despite operating in a desert environment

Mitigation Strategies

• Expanding resource portfolio to include solar, battery storage, and natural gas generation
• Pursuing additional renewable resources
• Planning retirements of less efficient fossil fuel generating units
• Substituting lower global warming potential products
• Systematically electrifying EPE’s fleet
• Increasing training and awareness for high-risk employees
• Using leading indicators to anticipate and prevent accidents
• Enhancing life critical safe work standards and delivering refresher training
• Cutting transmission corridors to minimize fuel loads
• Partnering with the U.S. Forest Service

Supply Chain Management

Responsible Procurement

• Outreach activities, conferences, and networking events targeting HUBs

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Increased wildfire potential
• Decreased water availability
• Increased energy demand

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Edison Electric Institute (EEI)

Awards & Recognition

• Community Partner Award from the El Paso Neighborhood Association Coalition

Environmental Metrics

ESG Focus Areas

• Safety
• Customer
• Culture
• Climate
• Cyber
• Community

Environmental Achievements

• Reduced carbon emissions intensity by <8% from 2015 baseline
• Nearly tripled renewable energy portfolio with 270 MW of solar and 50 MW of battery storage planned for operation in 2022
• Achieved 100% coal-free generation in 2016

Social Achievements

• Suspended service disconnections and provided over $6 million in customer assistance to over 56,000 customers during the COVID-19 pandemic
• Provided more than $1.5 million in community contributions and managed over 3,000 volunteer hours
• Launched an EV Community Initiative to promote electric vehicle adoption
• Filed a Transportation Electrification Plan in New Mexico to incentivize EV infrastructure
• Maintained #1 reliability ranking among Texas investor-owned utilities for five consecutive years

Governance Achievements

• Restructured Board of Directors in 2020 with 70% independent directors, 40% residing in the service territory, and 30% women

Climate Goals & Targets

Environmental Challenges

• Physical climate change risks (changing weather patterns, climate variability, water availability, extreme weather events)
• Transition risks related to a low/no-carbon energy future (regulatory/policy change, technology evolution, customer demands)

Mitigation Strategies

• Weather forecasting, models, and analytical tools; resource planning and load research; resiliency planning and coordination; grid hardening; generation resource portfolio transition; wildfire preparation
• Dedicated renewable energy, battery storage, and microgrid resources; voluntary renewable energy subscriptions; transportation electrification plans; demand response programs

Supply Chain Management

Responsible Procurement

• Maximize opportunities to conduct business with small and historically underutilized businesses (HUBs)

Climate-Related Risks & Opportunities

Physical Risks

• Changing weather patterns
• Climate variability
• Water availability
• Extreme weather events

Transition Risks

• Regulatory/policy change
• Technology evolution
• Customer demands

Opportunities

• Expansion of renewable energy portfolio

Reporting Standards

Frameworks Used: EEI's industry-focused and investor-driven reporting practices

Awards & Recognition

• 2020 Most Trusted Business Partner (Cogent Brand Trust Index)

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Customer Affordability and Service
• Workforce Development and Inclusion
• Community Engagement
• Technological Advancement and Grid Modernization

Environmental Achievements

• Achieved an air permit for Newman Unit 6, a state-of-the-art 228-megawatt natural gas replacement unit, reducing water consumption by 600 million gallons per year.
• Entered into PPAs for 270 MW of solar generation and 50 MW of battery storage, nearly tripling renewable energy portfolio.
• Reduced CO2e emissions intensity by <6% from 2015 baseline.
• Increased EV portfolio by 10%.

Social Achievements

• Maintained 95% employee vaccination rate during COVID-19 pandemic.
• Launched Customer Advisory Partnership (CAP) to enhance collaboration with the community.
• Created the Bright Hearts of El Paso Fund, raising $240,000 to assist families with bill payments.
• Expanded Customer Care Call Center hours and introduced live chat feature.
• Implemented SafeStart Program for all employees to improve safety performance.

Governance Achievements

• Board of Directors consisted of 10 directors, with 70% independent, 40% residing in service territory, and 20% women.

Climate Goals & Targets

Environmental Challenges

• Meeting growing energy demand while transitioning to a carbon-free portfolio.
• Managing climate risks, including extreme weather events and regulatory changes.
• Addressing challenges associated with the lack of awareness of EVs and benefits.

Mitigation Strategies

• Investing in grid hardening, renewable energy resources, battery storage, and microgrids.
• Implementing weather forecasting models and resiliency planning.
• Developing transportation electrification plans and demand response programs.
• Incentivizing the installation and usage of smart charging infrastructure through rebate and pilot rate programs.

Supply Chain Management

Responsible Procurement

• Maximizing opportunities to conduct business with small and historically underutilized businesses (HUBs)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Technology evolution
• Customer demands

Opportunities

• Development of renewable energy resources

Reporting Standards

Frameworks Used: Edison Electric Institute (EEI) template

Awards & Recognition

• 2021 ENERGY STAR® Residential New Construction Market Leader Award

Environmental Metrics

ESG Focus Areas

• Customer Reliability and Affordability
• Grid Growth
• Technology Modernization
• Environmental Footprint Minimization
• Culture of Engagement and Accountability

Environmental Achievements

• Buena Vista Energy Center (120 MW solar and 50 MW battery storage) came online, powering approximately 60,000 homes.
• Newman Unit 6, a state-of-the-art gas turbine, commissioned, replacing three older, less-efficient units and saving approximately 600 million gallons of water annually.
• Continued expansion of Texas Community Solar program.
• 80% carbon-free energy target by 2035 and 100% by 2045.
• Recycling of old meters during AMS installation.

Social Achievements

• Launched the first Electric Company Charitable Foundation with $1.2 million contribution and 100% employee donation matching.
• Assumed leadership on 60 local boards and volunteered over 10,000 hours in the community.
• Expanded PowerFit Corporate Wellness Program to include mental, spiritual, and financial wellness.
• Launched Employee Engagement Board to improve communication and transparency.
• Safety successes, exceeding KPI goals and achieving a record-breaking streak of 220 consecutive days without a DART incident.

Governance Achievements

• Appointed Edward “Ed” Escudero as the new Board Chairman, the first local representative.
• Completed Cybersecurity Vendor Management Program (CVMP).
• GRESB score increased by 15 points, leading to a 7-position increase in peer ranking.

Climate Goals & Targets

Environmental Challenges

• Extreme weather events (wind, wildfires, temperature extremes, water scarcity) threatening service disruptions.
• Transition risks (evolving regulations, changing customer preferences, technology evolutions, market dynamics).
• Increased load growth resulting in increased carbon emissions and criteria pollutants.

Mitigation Strategies

• Weather forecasting, models, and analytical tools.
• Resource planning and load research.
• Resiliency planning and coordination.
• Grid hardening (replacements and structure upgrades).
• Generation resource portfolio transitioning.
• Vegetation management.
• Large-scale renewable integration.
• Demand response programs.

Supply Chain Management

Responsible Procurement

• Maximizing opportunities to contract with small and historically underutilized businesses (HUBs).

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Temperature extremes
• Water scarcity
• Infrastructure resilience

Transition Risks

• Evolving regulations
• Changing customer preferences
• Technology evolutions
• Market dynamics

Opportunities

• Large-scale renewable integration
• Grid modernization
• Transportation electrification

Reporting Standards

Frameworks Used: Edison Electric Institute (EEI), GRESB

Awards & Recognition

• American Climate Leader by USA Today
• Energy STAR® Partner of the Year
• 2023 Business Customer Champion by Escalent
• Champions of Diversity by Black El Paso Voice magazine