DTE Gas Benchmarking Process and Projects

1. DTE Gas Benchmarking Process and Projects Gerry Kenney Sr. Continuous Improvement Expert June 2013

2. 1.2 MM Customers 15,000 sq mile service territory 130 bcf of gas storage 750 bcf annual gas delivery 18,500 miles of transmission 2,500 miles of distribution 2 Regions, 7 Areas 1,700 employees 4 Unions Detroit DTE Gas Overview

3. Benchmarking Culture • Driven from Gerry Anderson, President & CEO DTE Energy • Corporate Priority: Distinctive CI Capability • Best Practice identification and sharing is driven through DTE Gas & DTE Electric by the Operations and Continuous Improvement (OCI) Committee • Bob Richard, Sr. VP DTE Gas, drives benchmarking as the OCI Executive

4. Corporate Priority

5. Managers and Supervisor’s: • Ensure completion of Data Packages and Questionnaires • Attend Roundtables • Explore their processes with other utilities for opportunities • Utilize information from benchmarking activities • Review Workshop Presentations • Data Summaries • Questionnaires • Executive Summaries • Best Practice Reports from Roundtables

6. Supervisors/Employees and CI Experts • Supervisors and CI Experts are expected to review benchmarking information, such as Roundtable Best Practice Results against current state to: • identify gaps • analyze differences • improve processes

7. Results • Distribution Work Planning Process • Resulted from a Work Management Workshop Presentation, Networking, and System Reliability and Company Profile review • Annual work management system for Planned and Unplanned O&M and Capital distribution work units • Benchmark visit at NICOR, attended distribution work review meetings, reviewed annual development and monthly update process in detail, brought back the knowledge and developed a DTE Gas process • Resulted in tighter control of distribution O&M and Capital through monthly performance reviews, a standardized work management process, tighter control of budgets through out the year • Information shared throughout the SEMI Region

8. Results Distribution Work Planning Process (cont’d)

9. Results • DTE Gas Quality Management System • In progress with this project • Sr. VP Operations - Bob Richard implementing Quality Management on field work • Advocating an ISO/Risk Management approach • Working with Union Gas (Risk Based Operating System) • DTE Electric Major Enterprise Projects Quality Management System • Construction Inspection Dialog; AGL (NICOR), Integrys - Peoples Gas • Learning from others to expedite a quality management process for high risk operations

10. Results • Employee Safety Improvement • Annual Occupational Injury and Illness Statistics report • Use the rates from the Large, Very Large, and MEGA reporting groups • Calculate Top decile and Q1 thru Q4, determine where we are • Identify improvement opportunities • Work with leaders to figure out the what’s and how’s • Experiment and implement permanent countermeasures

11. Results • Leak Repair Process • Determined leading low cost per leak performers (Scatterplots) • Conducted conference calls • Visited 2 utilities • Verified process sound

12. In Progress - 2013 • Distribution Cost Per Customer • Established a dialog with leading distribution cost per customer utilities • Intent is to check our cost components against other utilities • Intent is to verify or adjust how we calculate our data • Distribution Cost Per Foot for Main and Service • Established a dialog with leading distribution cost per customer utilities • Intent is to check our cost components against other utilities • Intent is to verify or adjust how we calculate our data • Look for process improvement opportunities

13. Results • Leak Repair Process • Determined leading low cost per leak performers (Scatterplots) • Conducted conference calls • Visited 2 utilities • Verified process sound

14. Appendix - Priorities