If I were to use energy explosion with an ally adjacent to me that had enhancement would the people hit by energy explosion take 2dmg for each time they are hit by it?

No. Damage from Energy Explosion has nothing to do with damage value (thing which Enhancement increases). Instead, damage is determined by the number of times the character is hit with the EE attack... so if you want to deal more damage with EE, make sure you are using a character with two or three and layer the splash damage.'

ENERGY EXPLOSION Give this character a ranged combat action; this attack can target only characters. Compare the result of the attack roll to the defense value of each character adjacent to a target of the attack to determine if the attack also succeeds against it. Each character successfully hit is dealt damage equal to the number of times it was hit by this attack (characters adjacent to multiple targets might be hit more than once by this attack). A critical hit with this attack automatically hits the target(s) of the attack and any characters adjacent to the target(s), and deals 1 additional damage to all characters hit. If a character successfully evades, it evades all hits by this attack.

It used to work like like waaaayyyyyyy back. You could Perplex or Enhance up the EE attack, and you'd hit for how ever many clicks the Damage was modified by. That was (luckily) before my time. Along with that, you could carry a flier (like the E or V Ultron who had 10 range and 2 or 3 , 13 or 14 with Energy Explosion) and have them make an attack after being carried. And I believe, if I am not mistaken, that there was no such thing as 'first turn immunity'. Gross.

Boy has the game come a long way since then.

EE back then only lowered the damage value to 1. Enhancement could raise damage back up because it worked at the time of attack but perplex couldn't because it was a separate action. Those were good times