Table of Contents EL PASO ELECTRIC COMPANY NOTES TO FINANCIAL STATEMENTS The fair value of the Company’s Retirement Plan assets at December 31, 2019 and 2018, and the level within the three levels of the fair value hierarchy defined by the FASB guidance on fair value measurements are presented in the table below (in thousands): (a) The Common Collective Trusts are invested in equity and fixed income securities, or a combination thereof. The investment objective of each fund is to produce returns in excess of, or commensurate with, its predefined index. (b) This investment is a commercial real estate partnership that purchases land, develops limited infrastructure and sells it for commercial development. The Company was restricted from selling its partnership interest during the life of the partnership, which spanned 7 years. Return on investment is realized as land is sold. The fair value of the limited partnership interest in real estate is based on the NAV of the partnership which reflects the appraised value of the land. The partnership term expired on June 30, 2016. Upon expiration, dissolution of the partnership commenced and, as a result, the general partner of the partnership is attempting to sell the remaining inventory as soon as possible at the highest pricing possible. Description of Securities Fair Value as of December 31, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and Cash Equivalents $ 2,622 $ 2,622 $ — $ — Common Collective Trusts (a) Equity funds 148,163 148,163 — — Fixed income funds 150,439 150,439 — — Real asset funds 24,119 24,119 — — Total Common Collective Trusts 322,721 322,721 — — Limited Partnership Interest in Real Estate (b) 1,809 Total Plan Investments $ 327,152 $ 325,343 $ — $ — Description of Securities Fair Value as of December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and Cash Equivalents $ 1,911 $ 1,911 $ — $ — Common Collective Trusts (a) Equity funds 140,214 140,214 — — Fixed income funds 110,333 110,333 — — Real asset funds 16,990 16,990 — — Total Common Collective Trusts 267,537 267,537 — — Limited Partnership Interest in Real Estate (b) 3,355 Total Plan Investments $ 272,803 $ 269,448 $ — $ — 102