Exhibit

Following the enactment of the federal legislation commonly referred to as the Tax Cuts and Jobs Act of 2017 (the "TCJA") on December 22, 2017, and in compliance with the final order in the Company's Texas retail rate case in Docket No. 46831 (the "2017 PUCT Final Order"), on March 1, 2018, the Company filed with the Public Utility Commission of Texas (the "PUCT") and each of its Texas municipalities a proposed refund tariff designed to reduce base charges for Texas customers equivalent to the expected annual decrease of $22.7 million in federal income tax expense resulting from the TCJA changes, and an additional refund of $4.3 million for the amortization of a regulatory liability related to the reduced tax expense for the months of January through March of 2018. This filing was assigned PUCT Docket No. 48124. The refund was reflected in rates over a period of one year beginning April 1, 2018, and will be updated annually until new base rates are implemented pursuant to the Company's next Texas rate case filing. The PUCT issued an order on December 10, 2018, approving the proposed refund tariff. On February 22, 2019, the Company filed with the PUCT and each of its Texas municipalities an application to modify the tax refund tariff to remove the portion of the base rate credit associated with the $4.3 million of regulatory liability amortization, which expired March 31, 2019. The filing was assigned PUCT Docket No. 49251.

Transmission Cost Recovery Factor. On January 25, 2019, the Company filed an application with the PUCT to establish its Transmission Cost Recovery Factor (“TCRF”), which was assigned PUCT Docket No. 49148 (the "2019 TCRF rate filing"). The 2019 TCRF rate filing is designed to recover a requested $8.2 million of Texas jurisdictional transmission revenue requirement that is not currently being recovered in the Company’s Texas base rates for transmission-related investments placed in service from October 1, 2016, through September 30, 2018, net of retirements. On April 30, 2019, the Company revised the request to $8.1 million to reflect a reclassified item that would likely be included in a future Distribution Cost Recovery Factor filing. The Company cannot predict the outcome of this filing at this time.

Distribution Cost Recovery Factor. On March 28, 2019, the Company filed an application with the PUCT and each of its Texas municipalities to establish its Distribution Cost Recovery Factor ("DCRF"), which was assigned PUCT Docket No. 49395 (the "2019 DCRF rate filing"). The 2019 DCRF rate filing is designed to recover a requested $7.9 million of Texas jurisdictional distribution revenue requirement that is not currently being recovered in the Company's Texas base rates for distribution-related investments placed in service from October 1, 2016, through December 31, 2018, net of retirements. The Company cannot predict the outcome of this filing at this time.

As required by ASU 2016-01, Financial Instruments - Recognition and Measurement of Financial Assets and Financial Liabilities, changes in the fair value of equity securities are recognized in the Company's Statements of Operations. This standard added the potential for significant volatility to the Company's reported results of operations as changes in the fair value of equity securities may occur. Furthermore, the equity investments included in the NDT are significant and are expected to increase significantly during the remaining life (estimated to be 27 to 30 years) of the Palo Verde Generating Station ("Palo Verde"). Accordingly, the Company has provided the following non-GAAP financial measures to exclude the impact of changes in fair value of equity securities and realized gains (losses) from the sale of both equity and fixed income securities. Reconciliations of both non-GAAP financial measures to the most directly comparable financial information presented in accordance with



	Three Months Ended
	March 31,
	2019			2018
	(In thousands except for per share data)
Net income (loss) (GAAP)	$	6,089		$	(6,966	)
Adjusting items before income tax effects
Unrealized (gains) losses, net	(16,690		)	3,781
Realized (gains) losses, net	701			(1,272		)
Total adjustments before income tax effects	(15,989		)	2,509
Income taxes on above adjustments	3,198			(502		)
Adjusting items, net of income taxes	(12,791		)	2,007
Adjusted net loss (non-GAAP)	$	(6,702	)	$	(4,959	)

Basic earnings (loss) per share (GAAP)	$	0.15		$	(0.17	)
Adjusted basic loss per share (non-GAAP)	$	(0.17	)	$	(0.12	)

Adjusted net loss and adjusted basic loss per share are not measures of financial performance under GAAP and should not be considered as an alternative to net income (loss) and earnings (loss) per share, respectively. Furthermore, the Company's presentation of any non-GAAP financial measure may not be comparable to similarly titled measures used by other companies. The Company believes adjusted net loss and adjusted basic loss per share are useful financial measures for investors and analysts in understanding the Company's core operating performance because each measure removes the effects of variances reported in the Company's results of operations that are not indicative of fundamental changes in the earnings capacity of the Company. Non-GAAP financial information should be read together with, and is not an alternative or substitute for, the Company's financial results reported in accordance with GAAP.

As of March 31, 2019, our capital structure, including common stock equity, long-term debt, current maturities of long-term debt and short-term borrowings under the Revolving Credit Facility (the "RCF") consisted of 43.1% common stock equity and 56.9% debt. At March 31, 2019, we had a balance of $8.5 million in cash and cash equivalents and $38.4 million in restricted cash to purchase in lieu of redemption all of the 2009 Series B 7.25% PCBs. Based on current projections, we believe that we will have adequate liquidity through our current cash balances, cash from operations, available borrowings under the RCF and debt or equity issuances in the capital markets to meet all of our anticipated cash requirements over the next twelve months.

Cash flows from operations for the three months ended March 31, 2019, were $26.4 million, compared to $26.2 million for the three months ended March 31, 2018. A component of cash flows from operations is the change in net over-collection and under-collection of fuel revenues. The difference between fuel revenues collected and fuel expense incurred is deferred to be either refunded (over-recoveries) or surcharged (under-recoveries) to customers in the future. During the three months ended March 31, 2019, we had fuel over-recoveries of $12.8 million compared to over-recoveries of fuel costs of $8.0 million during the three months ended March 31, 2018. At March 31, 2019, we had a net fuel over-recovery balance of $23.8 million, including over-recoveries of $19.3 million in our Texas, $4.4 million in our New Mexico and $0.1 million in our FERC jurisdictions. On October 15, 2018, we filed a request with the PUCT to decrease our Texas fixed fuel factor by approximately 6.99% to reflect decreased fuel expenses primarily related to a decrease in the price of natural gas used to generate power. On October 25, 2018, the Company's fixed fuel factor was approved on an interim basis effective for the first billing cycle of the November 2018 billing month. The revised factor was approved by the PUCT and the docket closed on November 19, 2018. The Texas fixed fuel factor will continue thereafter until changed by the PUCT. On April 29, 2019, the Company filed a petition with the PUCT, which was assigned PUCT Docket No. 49482, requesting authority to implement, beginning on June 1, 2019, a four-month, interim fuel refund of $19.4 million in fuel cost over-recoveries, including interest, for the period from April 2016 through March 2019. The Company cannot predict the outcome of this filing at this time.

During the three months ended March 31, 2019, our primary capital requirements were related to the construction and purchase of electric utility plant, payment of common stock dividends and purchases of nuclear fuel. Capital expenditures for new electric utility plant were $52.4 million in the three months ended March 31, 2019, compared to $66.9 million in the three months ended March 31, 2018. Capital expenditures for 2019 are expected to be approximately $249 million. Capital requirements for purchases of nuclear fuel were $9.5 million in the three months ended March 31, 2019, compared to $9.3 million in the three months ended March 31, 2018.

The TCJA discontinued bonus depreciation for regulated utilities, which reduced tax deductions previously available to us for 2019. The decrease in tax deductions results in the utilization of our net operating loss carryforwards (“NOL carryforwards”) and other carryforwards approximately one year earlier than previously anticipated and is expected to result in higher income tax payments beginning in 2020, after the full utilization of NOL and other carryforwards. However, due to the lower federal corporate income tax rate enacted by the TCJA, our future federal corporate income tax payments will be made at the reduced rate of 21%. Due to NOL carryforwards, minimal tax payments are expected for 2019, which are mostly related to state income taxes.

We received approval from the New Mexico Public Regulation Commission (the "NMPRC") on October 7, 2015, to guarantee the issuance of up to $65.0 million of long-term debt by the Rio Grande Resources Trust (the "RGRT") to finance future purchases of nuclear fuel and to refinance existing nuclear fuel debt obligations. We received additional approval from the NMPRC on October 4, 2017, to amend and extend the RCF, issue up to $350.0 million in long-term debt and to redeem and refinance the $63.5 million 2009 Series A 7.25% PCBs and the $37.1 million 2009 Series B 7.25% PCBs, which are subject to optional redemption in 2019. The NMPRC approval to issue up to $350.0 million in long-term debt supersedes its prior approval. We received approval from the FERC on October 31, 2017, to issue up to $350.0 million in long-term debt, to guarantee the issuance of up to $65.0 million of long-term debt by the RGRT, and to continue to utilize our existing RCF with the ability to amend and extend the RCF at a future date, and to redeem, refinance and/or replace the 2009 Series A 7.25% PCBs and 2009 Series B 7.25% PCBs with debt of equal face value. The authorization approved by the FERC is effective from November 15, 2017 through November 14, 2019, and supersedes its prior approvals.

Under these authorizations, on June 28, 2018, the Company issued $125.0 million in aggregate principal amount of 4.22% Senior Notes due August 15, 2028, and guaranteed the issuance by the RGRT of $65.0 million in aggregate principal amount of 4.07% Senior Guaranteed Notes due August 15, 2025. The net proceeds from the sale of these senior notes were used to repay outstanding short-term borrowings under the RCF, which included borrowings made for working capital, general corporate purposes and the purchase of nuclear fuel. Also, under these authorizations, on September 13, 2018, the Company and RGRT entered into a third amended and restated credit agreement where we have available a $350.0 million RCF with a term ending on September 13, 2023. We may increase the RCF by up to $50.0 million (to a total of $400.0 million) during the term of the RCF, upon the satisfaction of certain conditions more fully set forth in the agreement, including obtaining commitments from lenders or third party financial institutions. In addition, we may extend the maturity date of the RCF up to two times, in each case for an additional one-year period upon the satisfaction of certain conditions. Additionally, the Company is preparing for potential transactions related to the 2009 Series A 7.25% PCBs and 2009 Series B 7.25% PCBs. On February 1, 2019, the Company purchased in lieu of redemption all of the 2009 Series A 7.25% PCBs utilizing funds borrowed under the RCF. On April 1, 2019, the Company purchased in lieu of redemption all of the 2009 Series B 7.25% PCBs utilizing funds borrowed under the RCF. The Company is currently holding the bonds and may remarket them or replace them with debt instruments of equivalent value at a future date depending on the Company's financing needs and market conditions, and in accordance with FERC approval in April 2019 in response to the Company's most recent FERC application (see below).

On March 27, 2019, NMPRC issued a final order approving the Company's request to issue shares of common stock, including the reissuance of treasury shares, in an amount up to $200.0 million in one or more transactions. On April 18, 2019, the Company received approval from the FERC to issue shares of common stock, including the reissuance of treasury shares, in an amount up to $200.0 million in one or more transactions; to utilize the existing RCF for short-term borrowing not to exceed $400.0 million at any one time; to issue up to $225.0 million in new long-term debt; and to remarket the $63.5 million Series A 7.25% PCBs and the $37.1 million Series B 7.25% PCBs in the form of replacement bonds or senior notes of equivalent value, not to exceed $100.6 million. The authorization approved by the FERC is effective from April 18, 2019 through April 18, 2021, and supersedes its prior approvals.

excluding debt issuance costs, were $134.1 million as of March 31, 2018, of which $89.1 million had been borrowed under the RCF and $45.0 million was borrowed through the issuance of senior notes. Interest costs on borrowings to finance nuclear fuel are accumulated by the RGRT and charged to us as fuel is consumed and recovered through fuel recovery charges. At March 31, 2019, $173.0 million was outstanding under the RCF for working capital and general corporate purposes. At March 31, 2018, $144.0 million was outstanding under the RCF for working capital and general corporate purposes. Total aggregate borrowings under the RCF at March 31, 2019, were $203.0 million with an additional $146.9 million available to borrow.

We are adjusting our GAAP earnings guidance for 2019 with a range of $2.25 to $2.95 per basic share from $2.25 to $2.80 per share. The guidance assumes normal operations and considers significant variables that may impact earnings, such as weather, expenses, capital expenditures, nuclear decommissioning trust gains/losses, and the recovery of transmission and distribution investment costs in Texas. The mid-point of the guidance range assumes 10-year average weather (cooling and heating degree days) for the remainder of the year. The GAAP guidance range includes $6.1 million or $0.15 per share to $20.4 million or $0.50 per share, after-tax, of unrealized gains (losses) on equity securities and realized gains (losses) from the sale of both equity and fixed income securities from the Palo Verde decommissioning trust funds based on historic returns on equity securities. After removing the unrealized and realized gains (losses) of $0.15 to $0.50 per share our non-GAAP earnings guidance range is $2.10 to $2.45 per basic share.

A conference call to discuss first quarter 2019 financial results is scheduled for 11:30 A.M. Eastern Time, on May 8, 2019. The dial-in number is 800-682-0995 with a conference ID number of 9724545. The conference leader will be Lisa Budtke, Director-Treasury Services and Investor Relations. A replay will run through May 22, 2019 with a dial-in number of 888-203-1112 and a conference ID number of 9724545. The conference call and presentation slides will be webcast live on the Company's website found at http://www.epelectric.com. A replay of the webcast will be available shortly after the call.

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, including statements regarding 2019 earnings guidance (including the anticipated impact of ASU 2016-01); statements regarding the impact of the TCJA; statements regarding current regulatory filings and anticipated regulatory filings; statements regarding expected capital expenditures; statements regarding expected dividends; and statements regarding the adequacy of our liquidity to meet cash requirements. 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) the impact of the TCJA and other U.S. tax reform legislation; (ii) 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; (iii) full and timely recovery of capital investments and operating costs through rates in Texas and New Mexico, and at the Federal Energy Regulatory Commission; (iv) uncertainties and instability in the general economy and the resulting impact on EE's sales and profitability; (v) changes in customers' demand for electricity as a result of energy efficiency initiatives and emerging competing services and technologies, including distributed generation; (vi) unanticipated increased costs associated with scheduled and unscheduled outages of generating plant; (vii) unanticipated maintenance, repair, or replacement costs for generation, transmission, or distribution facilities

and the recovery of proceeds from insurance policies providing coverage for such costs; (viii) the size of our construction program, the receipt of necessary permits and approvals and our ability to complete construction on budget and on time; (ix) potential delays in our construction and resource contracting schedule due to legal challenges or other reasons; (x) costs at Palo Verde; (xi) decisions and actions of EE's regulators and the resulting impact on EE's cost of capital, sales and profitability; (xii) deregulation and competition in the electric utility industry; (xiii) possible increased costs of compliance with environmental or other laws, regulations and policies; (xiv) possible income tax and interest payments as a result of audit adjustments proposed by the Internal Revenue Service or state taxing authorities; (xv) uncertainties and instability in the financial markets and the resulting impact on EE's ability to access the capital and credit markets; (xvi) actions by credit rating agencies; (xvii) possible physical or cyber-attacks, intrusions or other catastrophic events; (xviii) the U.S. Government shutdown and the resulting impact on EE's sales and profitability; and (xix) 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.



El Paso Electric Company
Statements of Operations
Three Months Ended March 31, 2019 and 2018
(In thousands except for per share data)
(Unaudited)

		2019			2018			Variance

Operating revenues		$	174,363		$	175,713		$	(1,350	)
Operating expenses:
	Fuel and purchased power	48,326			52,188			(3,862		)
	Operations and maintenance	80,413			80,160			253
	Depreciation and amortization	25,126			23,814			1,312
	Taxes other than income taxes	16,189			15,507			682
		170,054			171,669			(1,615		)
Operating income		4,309			4,044			265
Other income (deductions):
	Allowance for equity funds used during construction	1,001			920			81
	Investment and interest income, net	23,707			5,155			18,552
	Miscellaneous non-operating income	3,048			3,136			(88		)
	Miscellaneous non-operating deductions	(2,357		)	(2,743		)	386
		25,399			6,468			18,931
Interest charges (credits):
	Interest on long-term debt and revolving credit facility	18,989			17,988			1,001
	Other interest	5,233			4,654			579
	Capitalized interest	(1,532		)	(1,214		)	(318		)
	Allowance for borrowed funds used during construction	(972		)	(898		)	(74		)
		21,718			20,530			1,188
Income (loss) before income taxes		7,990			(10,018		)	18,008
Income tax expense (benefit)		1,901			(3,052		)	4,953
Net income (loss)		$	6,089		$	(6,966	)	$	13,055

Basic earnings (loss) per share		$	0.15		$	(0.17	)	$	0.32

Diluted earnings (loss) per share		$	0.15		$	(0.17	)	$	0.32

Dividends declared per share of common stock		$	0.360		$	0.335		$	0.025
Weighted average number of shares outstanding		40,583			40,491			92
Weighted average number of shares and dilutive
	potential shares outstanding	40,664			40,491			173



El Paso Electric Company
Cash Flow Summary
Three Months Ended March 31, 2019 and 2018
(In thousands and Unaudited)

				2019			2018
Cash flows from operating activities:
	Net Income (loss)			$	6,089		$	(6,966	)
	Adjustments to reconcile net income (loss) to net cash provided by operations:
		Depreciation and amortization of electric plant in service		25,126			23,814
		Amortization of nuclear fuel		10,706			10,404
		Deferred income taxes, net		1,236			(3,964		)
		Net losses (gains) on decommissioning trust funds		(15,989		)	2,509
		Other		4,521			4,401
	Change in:
		Accounts receivable		8,352			8,063
		Accounts payable		(11,021		)	(23,324		)
		Net over-collection of fuel revenues		12,799			7,965
		Other current liabilities		1,599			6,697
		Other		(16,998		)	(3,363		)
			Net cash provided by operating activities	26,420			26,236

Cash flows from investing activities:
	Cash additions to utility property, plant and equipment			(52,428		)	(66,924		)
	Cash additions to nuclear fuel			(9,502		)	(9,257		)
	Decommissioning trust funds			(2,145		)	(1,915		)
	Other			(3,228		)	2,589
			Net cash used for investing activities	(67,303		)	(75,507		)

Cash flows from financing activities:
	Dividends paid			(14,658		)	(13,615		)
	Borrowings (repayments) under the revolving credit facility, net			153,744			59,534
	Payments on purchase in lieu of redemption of pollution control bonds			(63,500		)	—
	Other			(653		)	(1,064		)
			Net cash provided by financing activities	74,933			44,855

Net increase (decrease) in cash, cash equivalents and restricted cash				34,050			(4,416		)

Cash, cash equivalents and restricted cash at beginning of period				12,900			6,990

Cash, cash equivalents and restricted cash at end of period				$	46,950		$	2,574



El Paso Electric Company
Three Months Ended March 31, 2019 and 2018
Sales and Revenues Statistics
(Unaudited)
											Increase (Decrease)
					2019			2018			Amount			Percentage
kWh sales (in thousands):
	Retail:
		Residential			574,089			559,563			14,526			2.6	%
		Commercial and industrial, small			496,367			498,675			(2,308		)	(0.5	)%
		Commercial and industrial, large			252,056			248,285			3,771			1.5	%
		Sales to public authorities			331,947			328,329			3,618			1.1	%
			Total retail sales		1,654,459			1,634,852			19,607			1.2	%
	Wholesale:
		Sales for resale - full requirement customer			11,770			11,730			40			0.3	%
		Off-system sales			837,162			864,216			(27,054		)	(3.1	)%
			Total wholesale sales		848,932			875,946			(27,014		)	(3.1	)%
				Total kWh sales	2,503,391			2,510,798			(7,407		)	(0.3	)%
Operating revenues (in thousands):
	Non-fuel base revenues:
		Retail:
			Residential		$	54,452		$	53,292		$	1,160		2.2	%
			Commercial and industrial, small		33,004			33,297			(293		)	(0.9	)%
			Commercial and industrial, large		7,246			7,126			120			1.7	%
			Sales to public authorities		17,285			17,156			129			0.8	%
				Total retail non-fuel base revenues (a)	111,987			110,871			1,116			1.0	%
		Wholesale:
			Sales for resale - full requirement customer		546			476			70			14.7	%
				Total non-fuel base revenues	112,533			111,347			1,186			1.1	%
	Fuel revenues:
		Recovered from customers during the period			28,545			39,944			(11,399		)	(28.5	)%
		Over collection of fuel (b)			(12,758		)	(7,950		)	(4,808		)	(60.5	)%
				Total fuel revenues (c) (d)	15,787			31,994			(16,207		)	(50.7	)%
	Off-system sales (d) (e)				34,979			23,055			11,924			51.7	%
	Wheeling revenues (f)				6,005			4,286			1,719			40.1	%
	Energy efficiency cost recovery				2,508			1,916			592			30.9	%
	Miscellaneous (f)				2,010			2,459			(449		)	(18.3	)%
				Total revenues from customers	173,822			175,057			(1,235		)	(0.7	)%
	Other (f)				541			656			(115		)	(17.5	)%
				Total operating revenues	$	174,363		$	175,713		$	(1,350	)	(0.8	)%

(a)	2019 and 2018 include $5.1 million and $4.1 million, respectively, base rate decreases related to the reduction in federal statutory income tax rate enacted under the TCJA.
(b)	2018 includes the portion of the U.S. Department of Energy refunds related to spent fuel storage of $1.1 million that was credited to customers through the applicable fuel adjustment clauses.
(c)	Includes deregulated Palo Verde Unit 3 revenues for the New Mexico jurisdiction of $1.9 million and $2.4 million in 2019 and 2018, respectively.
(d)	Off-system sales increased due to favorable market conditions and lower gas prices which resulted in increased margins credited to customers through the fuel adjustment clause.
(e)	Includes retained margins of $0.9 million and $0.6 million in 2019 and 2018, respectively.
(f)	Represents revenue with no related kWh sales.



El Paso Electric Company
Three Months Ended March 31, 2019 and 2018
Other Statistical Data

							Increase (Decrease)
			2019		2018		Amount			Percentage

Average number of retail customers: (a)
	Residential		377,396		371,351		6,045			1.6	%
	Commercial and industrial, small		42,222		42,205		17			—
	Commercial and industrial, large		48		48		—			—
	Sales to public authorities		6,204		5,592		612			10.9	%
		Total	425,870		419,196		6,674			1.6	%

Number of retail customers (end of period): (a)
	Residential		378,102		372,040		6,062			1.6	%
	Commercial and industrial, small		42,375		42,167		208			0.5	%
	Commercial and industrial, large		48		48		—			—
	Sales to public authorities		6,210		5,679		531			9.4	%
		Total	426,735		419,934		6,801			1.6	%

Weather statistics: (b)							10-Yr Average
	Cooling degree days		36		37		35
	Heating degree days		1,134		965		1,123

Generation and purchased power (kWh, in thousands):							Increase (Decrease)
			2019		2018		Amount			Percentage

	Palo Verde		1,364,307		1,346,507		17,800			1.3	%
	Gas plants		915,521		985,107		(69,586		)	(7.1	)%
		Total generation	2,279,828		2,331,614		(51,786		)	(2.2	)%
	Purchased power:
		Photovoltaic	58,768		61,570		(2,802		)	(4.6	)%
		Other	265,303		228,244		37,059			16.2	%
		Total purchased power	324,071		289,814		34,257			11.8	%
		Total available energy	2,603,899		2,621,428		(17,529		)	(0.7	)%
	Line losses and Company use		100,508		110,630		(10,122		)	(9.1	)%
		Total kWh sold	2,503,391		2,510,798		(7,407		)	(0.3	)%


	Palo Verde O&M expenses (c)		$	21,344	$	22,175	$	(831	)

	Palo Verde capacity factor		101.5%		100.1%		1.4%



El Paso Electric Company
Financial Statistics
At March 31, 2019 and 2018
(In thousands, except number of shares, book value per common share, and ratios)
(Unaudited)

Balance Sheet		2019			2018

Cash and cash equivalents		$	8,505		$	2,574

Restricted cash		$	38,445		$	—

Common stock equity		$	1,157,889		$	1,119,633
Long-term debt		1,286,111			1,196,110
	Total capitalization	$	2,444,000		$	2,315,743

Current maturities of long-term debt		$	36,550		$	—

Short-term borrowings under the revolving credit facility		$	202,951		$	233,067

Number of shares outstanding - end of period		40,738,183			40,661,745

Book value per common share		$	28.42		$	27.54

Common equity ratio (a)		43.1		%	43.9		%
Debt ratio		56.9		%	56.1		%

(a)	The capitalization component includes common stock equity, long-term debt and the current maturities of long-term debt, and short-term borrowings under the RCF.



		News Release
For Immediate Release		News Release
Date: May 8, 2019



		Three Months Ended
		Pre-Tax Effect			After-Tax Effect			Basic EPS
March 31, 2018					$	(6,966	)	$	(0.17	)
Changes in:
	Investment and interest income, NDT	$	18,608		14,839			0.36
	Retail non-fuel base revenues	1,116			882			0.02
	Income tax expense-other	—			(1,327		)	(0.03		)
	Depreciation and amortization	(1,312		)	(1,036		)	(0.03		)
	Interest charges (credits)	(1,188		)	(939		)	(0.02		)
	Other				636			0.02
March 31, 2019					$	6,089		$	0.15



Media Contacts	Investor Relations
Eddie Gutierrez	Lisa Budtke
915.543.5763	915.543.5947
eduardo.gutierrez@epelectric.com	lisa.budtke@epelectric.com


•	For the first quarter of 2019, El Paso Electric Company ("EE" or the "Company") reported net income of $6.1 million, or $0.15 basic and diluted earnings per share. In the first quarter of 2018, EE reported a net loss of $7.0 million, or $0.17 basic and diluted loss per share.



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	El Paso Electric Ÿ P.O.Box 982 Ÿ El Paso, Texas 79960


•	Increased investment and interest income primarily due to net realized and unrealized gains of $16.0 million for the three months ended March 31, 2019, compared to net losses of $2.5 million for the three months ended March 31, 2018, on securities held in the Company's Palo Verde nuclear decommissioning trust funds ("NDT"). Refer to "Use of Non-GAAP Financial Measures" for further details.


•	Increased income tax expense-other primarily due to differences in the annual effective tax rate and lower values of stock incentives vested in the three months ended March 31, 2019, compared to the three months ended March 31, 2018.


•	Increased depreciation and amortization primarily due to increased plant balances.



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	El Paso Electric Ÿ P.O.Box 982 Ÿ El Paso, Texas 79960



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	El Paso Electric Ÿ P.O.Box 982 Ÿ El Paso, Texas 79960



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	El Paso Electric Ÿ P.O.Box 982 Ÿ El Paso, Texas 79960



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	El Paso Electric Ÿ P.O.Box 982 Ÿ El Paso, Texas 79960



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	El Paso Electric Ÿ P.O.Box 982 Ÿ El Paso, Texas 79960




www.epelectric.com



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	El Paso Electric Ÿ P.O.Box 982 Ÿ El Paso, Texas 79960



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	El Paso Electric Ÿ P.O.Box 982 Ÿ El Paso, Texas 79960



(a)	The number of retail customers presented is based on the number of service locations.

(b)	A degree day is recorded for each degree that the average outdoor temperature varies from a standard of 65 degrees Fahrenheit.

(c)	Represents the Company's 15.8% interest in Palo Verde.