Introduction

1. 2014 Transmission & Distribution Benchmarking Data Review Conference Introduction June 25-27, 2014 Nashville, TN

2. Agenda – Meeting Schedule

3. Introduction - Questions to Think About • What drives your company to participate in the benchmarking community – here or elsewhere • How have you used the results in previous years, and how do you plan to use the results this year • Why are you attending the meeting – what do you hope to get from the next 2-1/2 days • How important is benchmarking in your company • For the coordinator – what is your role in the process for use of the results • What major initiatives are going on in your company (e.g. mergers, rate cases, major event aftermath, new systems, etc.)

4. 2014 T&D Community Members • T&D Community • Austin Energy • BC Hydro • CenterPoint Energy • CPS Energy • Exelon (BGE, PECO & ComEd) • Hydro One • Hydro-Quebec • KCP&L • Oncor Electric Delivery • PSE&G • Tucson Electric • Westar Energy • New Participants: • Chelan PUD • DTE Energy • Northwestern Energy • PPL Electric • PSEG LI (former LIPA) 4

5. Introduction and Overview • Purpose of the meeting • Overview of our process • Data Review • Process we will follow • Data Steward • Percent complete/quality • What your Data Steward should be doing for you: • Comparison to last year • Identifying outliers • Next steps for coordinators • Calendar of events • Discussion Topics Overview

6. Purpose of Our meeting • Ensuring successful outcomes through reviewing data and Topic discussions to date • One key purpose of the meeting is to review the 2nd draft of the T&D report, highlight areas where we have outliers, inconsistent, incorrect, or missing data, and update any guidelines • Review Guidelines for each section • Go over data anomalies, issues, key questions, outliers, KPIs that will endup impacting your performance profiles (also make sure we review Financials for each section) • Identify corrections to data, etc. (Members) • Address report pages that need correction (1QC) • We'll also review the next steps we have in place to ensure a successful benchmarking outcome and Insights Conference in August • Role of Data Stewards • Knowing Your Status • Key Dates • Data Review Webinars (after 3rd Draft) • Another purpose of the meeting is to move the Discussion Topics forward, to help prepare for the Insights Conference • Conduct 2 webinars on the Distribution Automation topic • Selection of topics for Insights

7. Our Approach to Benchmarking Leader activity Group activity Interest group Individual company activity 1QC Activity Survey Conference Calls Kick-off Meeting Plan Connect Develop Questionnaire Review reports & statistics Collect Data Review & Validate Data Share Learn Act Community Insights Conference Leader’s Conference Performance Improvement Projects On-Site Insights Review Conference Preparations Review & Validate Data Focus Focus Area Topic Discussions Webinar / Discussion Groups Analysis / Synthesis of Data Focus AreaTopics This Week

8. A Process Model for Managing the Network Much of the questionnaire has been built around the process model shown here, and results will be presented at the Insights Conference in these categories as well. Respond to Emergencies Add New Customers Sustain Network Expand Network Operate Network Project/Portfolio Management Develop and Approve Asset Plans Develop Network Strategy

9. Available Outputs • On-Site Presentations • Tailored to your request • Re-structuring for 2014 around “modules” • Covering both questionnaire and discussion topic results • Can be presentation or discussion • Interim Documents • Data Steward files • % complete reports • Outlier listings • Comparisons to previous years • Updated Guidelines • FAQ Listing • Questionnaire Results • Statistical report • Charts, graphs, tables • All sections, plus a “profiles” section • Performance Profiles • Specific to each member company • Insights Conference Presentations • Summaries of the major sections • Discussion Topic Results • Webinar Recordings • Click to listen • Powerpoint summary files • Insights Conference Presentations • Summary of Findings • Presentations by Members

10. Plans for Summary of Practices and initiatives for Insights Conference and On-Sites Example – New Business Key Success Factors • We think we can utilize these charts as a framework to summarize the various process/practice areas into manageable “modules” for presentation. • For the on-sites, we can’t cover all the areas, so we’ll need to discuss them and select a few to cover, rather than trying to cover them all. • We gather a large amount of information about practices, which is difficult to cover in any reasonable depth during the insights conference, or even at on-sites. • Last year we introduced the “Key Success Factors” charts to try to summarize some of the practice areas.

11. Data Stewards

12. Data Steward Function • Data Stewards are working with each Member company • Establish ongoing person to contact and work with • Provide guidance for interpretations of the questionnaire and guidelines • Make comparisons to previous year's data • Check for outliers • Highlight inconsistencies in responses • Monitor data collection progress/provide friendly reminders of due-dates

13. 2014 Data Stewards

14. Data Entry Status (as of 6/20) • Thanks to those companies with the majority of data already submitted. For those with mostly red rows, there is some work to be done.

15. Discussion Topics

16. Discussion Topics Approach • In the next few days, we run two Discussion Topic Webinars for the Distribution Automation topic, and prepare for the Insights Conference. In addition to talking through the two webinars, we will also want to: • Get your input on specific sub-topics based on the discussions we might focus on at the Insights Conference (brief company presentations, roundtable,etc.)

17. Agenda – Discussion Topic Schedule

18. Connecting with the Business • Role of the Coordinator • Assure accurate and complete data • Find the right sources • Do QC checks as data is submitted • Follow up with data stewards to make needed corrections • Arrange for Subject Matter Experts to participate and support the Insights Conference presentations • Attending and contributing during topic webinar discussions • Reviewing results and sharing company best practices with the community at the Insights Conference • Disseminate the results so they’re as useful as possible • Provide copies of reports and documents to all who provide inputs • Circulate summary documents to management • Make results available to project teams and operating management

19. Next Steps • Minutes from this meeting will be available by July 3. • Next Deadline is July 21. This draft will be your last chance to see how your data compares before the final report, so you need to have all of your data input and correct at this time. The final deadline is for ensuring all of your data is correct. • Before the next deadline • We will continue providing the Data Steward reports with % complete, outliers listings, and variance listings. • Based on the work with your Data Steward, we may run an interim report as needed. • Goal • Understand changes in your data from year to year • Get complete data • Data in the final report is accurate and final • Data for on-site is valid and complete

20. Thank you for your Input and Participation! Your Presenters Ken BuckstaffKen.Buckstaff@1QConsulting.com310-922-0783 Dave Canon Dave.Canon@1qconsulting.com 817-980-7909 Dave Carter Dave.Carter@1qconsulting.com 414-881-8641 Debi McLain CookDebi.McLain@1QConsulting.com760-272-7277 Tim. SzybalskiTim.Szybalski@1QConsulting.com 301-535-0590 About 1QC First Quartile Consulting is a utility-focused consultancy providing a full range of consulting services including continuous process improvement, change management, benchmarking and more. You can count on a proven process that assesses and optimizes your resources, processes, leadership management and technology to align your business needs with your customer’s needs. Visit us at www.1stquartileconsulting.com | Follow our updates on LinkedIn Satellite Offices Corporate Offices California 400 Continental Blvd. Suite 600El Segundo, CA 90245(310) 426-2790 Maryland 3 Bethesda Metro Center Suite 700Bethesda, MD 20814(301) 961-1505 New York | Texas | Washington | Wisconsin