Smart Grid – Your People Matter

1. Smart Grid – Your People Matter Bandera Electric Cooperative

2. Background Information – Bandera Electric Cooperative • Members – 23,865 • Meters – 31,678 • Miles of line – 4,385 • Serve Bandera, Bexar, Kendall, Kerr, Medina, Real and Uvalde counties

3. Entitlement TO Accountability Moving employees from a ‘have to’ to a ‘want to’ mentality • First reaction is… Belittling, what went wrong, who is at fault, hear negativity and get ready to defend, justify and explain Must create higher levels of ownership and joint accountability for achieving organization wide key results The ORGANIZATION, The PEOPLE, The WORK The ORGANIZATION • Direction – Strategic vision, mission, organizational structure, goals • Systems – Planning & policies, information systems, budgeting, monitoring • Results – Success measures, profitability, competition, requests of members The PEOPLE • Values and Beliefs – What is ideal, expectations, policies • Leadership and Management – Practices and behaviors, selection, development, promotion, reward and recognition, skills, knowledge, motivation and feedback Productivity – Performance management, talent assessment, performance levels, morale, loyalty and commitment, business awareness, continuous improvement

4. Entitlement TO Accountability The WORK • Resources – Workload, schedules, tools, equipment environment • The Methods – Work processes, how to handle mistakes • Member Products and Services - Member satisfaction, quality, quantity of service

5. Building a Culture of Accountability… • Member expectations have changed • NRECA Innovative Energy Strategies – A plan to Put Members First in a rapidly changing energy landscape, dated February 3, 2010 • Change is external, transition is internal • Nine key issue areas to address in order to help cooperatives develop and implement a plan 1. Member Expectations and Relationship Management – Educating Boards 2. Energy Partners Information Network – NRECA become an energy information and intelligence clearing house 3. Leadership Development – Training – “commitment to excellence” at every level of governance and management

6. Building a Culture of Accountability • Nine key issue areas (Continued) 4. Raising the Bar for Operations and Workforce Development – Recruit, educate, train, compensate, and retain a qualified workforce 5. External Influences – (Politics) Educate members and activate community grassroots 6. Future Energy Security – Development of a comprehensive10-year energy action plan 7. Financial Planning and Innovation – Benchmarks, economies of scale 8. Environmental Stewardship – Enough said 9. Even More “Cooperation Among Cooperatives” – Develop standards in operations, purchasing, marketing TRAINING & EDUCATION

7. At Bandera Electric… • We are true to the 7 Cooperative Principles and we are: • More strategic and less operational • More goal oriented • More employee accountability – project management, creativity and innovation • More open and honest communication • More and higher than industry averages for excellence • More contractor accountability • More employee growth and development • More reliability on technology • More SAFETY conscious • Better Board Education and by-in • Better Member Communication • Better Employee Productivity • Better Corporate Citizen • Better Evaluation Processes

8. Foundational • Board Perspective • Strategic Planning, Vision, Mission Discipline & Return to Work Policies • Long-range Financial Outlook Technology Plan • Distributed Generation Tariff New Line Extension Tariff • Management Perspective • Outsourced Supply Chain Member Survey – ACSI qualified • Created the BEAA & TMT Teams EAP Program • KPI’s Increased Employee Training • Safety Accreditation Cycle billing & Ebilling • Succession Planning Improved ROW Management Process • Redesigned Incentive Pay Employee Recruitment, Development, • Number of Reorganizations Education and Retention Plan • Full time HR Staff ABC Accounting • Member Advocacy Committee All Employee Survey • User Friendly Website Member Portal • System Control Center Employee Training Programs (Merchant) • Technology - IVR, PBX, OMS, AMI, GIS, AS • Joint Use evaluation Annual Salary Survey • Evaluation Process – 360’s Departmental Business Plans Deliver what Members don’t know they want.

9. Future Capabilities • Texts to members regarding outages (updates and information) • Budget alerts to help them stay on track with their bill • Time of use rates • Prepaid service • Mobile Work Force

10. Questions?