EE's common equity as a percent of capitalization was 50 percent as of December 31, 2007. From 1999 to December 31, 2007, EE repurchased 19.3 million common shares at a total cost of $269 million.

EE's current base rate agreement in Texas runs through July 1, 2010. A Texas fuel reconciliation filing for $548.4mm in fuel and purchased power expenses was made on August 31, 2007.

A final order approving the unanimous stipulation with key intervenors was issued by the New Mexico Public Regulation Commission (NMPRC) in July 2007 and establishes new rates in New Mexico through July 1, 2010. The stipulation increases non-fuel base rates by $5.8 million annually, re-prices energy provided from the deregulated and decertified NM portion of Palo Verde Unit 3, eliminates the 10% cap on NM fuel and purchased power expenses, and provides for economy sales margins to be shared 25% with NM customers.

On January 8, 2008, EE filed a request with the Public Utilities Commission of Texas (PUCT) to surcharge approximately $30.1 million in under-recovered fuel and purchased power costs and interest over a 12-month period. EE anticipates obtaining PUCT approval by April 2008.

In 2008, EE has also obtained approval from both Texas and New Mexico to build a new 280-290MW combined cycle unit which is expected to come on line in phases starting in 2009.

Statements in this document dated April 7, 2008 may be forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The company does not undertake to update any such forward-looking statements. For a detailed discussion of these risks and other uncertainties, please refer to EE's 10K, Annual Report, and other 34 Act filings.