| Issuer: | El Paso Electric Company |
| Issue: | 5.000% Senior Notes due December 1, 2044 |
| Ratings*: | Baa1 by Moody’s Investors Service, Inc. BBB by Standard & Poor’s Ratings Services |
| Principal Amount: | $150,000,000 (Reopening of 5.000% Senior Notes due December 1, 2044, of which $150,000,000 was previously issued on December 1, 2014), for a total principal amount outstanding of $ 300,000,000 |
| Maturity: | December 1, 2044 |
| Coupon: | 5.000% (interest accrues from December 1, 2015) |
| Interest Payment Dates: | June 1 and December 1, commencing June 1, 2016 |
| Treasury Benchmark: | 3.000% due November 15, 2045 |
| Treasury Yield: | 2.697% |
| Reoffer Spread: | T+200 basis points |
| Reoffer Yield: | 4.697% |
| Price to Public: | 104.701% of the principal amount thereof, plus accrued interest from December 1, 2015 to, but excluding, March 24, 2016 (the total amount of accrued interest on March 24, 2016 will be $2,354,166.67) |
| Transaction Date: | March 21, 2016 |
| Settlement Date: | March 24, 2016 (T+3) |
| Redemption Terms: | |
| Make-whole call: | Prior to June 1, 2044, callable at any time at a make-whole premium of the greater of (i) 100% of the principal amount and (ii) discounted present value at Treasury Rate plus 30 basis points |
| Par call: | On or after June 1, 2044, callable at any time at par |
| Minimum Denomination: | $1,000 |
| CUSIP/ISIN: | 283677AZ5/US283677AZ52 |
| Joint Book-Running Managers: | Wells Fargo Securities, LLC |
| U.S. Bancorp Investments, Inc. |
