Insights Conference Introduction

1. 2014 Electric T&D Benchmarking Insights Conference Introduction Community Insights Conference August 20-22, 2014 Vail, Colorado

2. Agenda for the Introductory Discussion • Introductions • Purpose of the Meeting • Schedule for the Week • Who’s in the Community • Expectations for the Week • Next Steps

3. Purpose of the Meeting • The primary purpose of the meeting is to discuss the findings from this year’s benchmarking study, including the core subjects and the discussion topics • Highlight performance trends • Identify emerging practices • Share practices with peer companies • A secondary purpose is to begin preparations for next steps • On-site presentations for leaders • Uses of the results at home • Topics of interest for next year • Growing the community in 2015

4. Schedule for the Week Note: webinars will be conducted for each of the sessions shown in green

5. 2014 T&D Benchmarking Community • Austin Energy • BC Hydro • CenterPoint Energy • Chelan PUD • CPS Energy • DTE Energy • Exelon • BGE • PECO • ComEd • Hydro One • Hydro-Quebec • KCP&L • Northwestern Energy • Oncor Electric Delivery • PPL Electric • PSE&G • PSE&G-Long Island (former LIPA) • Tucson Electric • Westar Energy

6. Speakers for the Conference A special thanks to the companies (and individuals) who agreed to share their experiences in our Discussion Topics • BG&E Successful Approaches for Engaging Customers in Demand Response Programs • Cheryl Hindes • Manager – Load Analytics • Heather Anderson • Manager – Energy Efficiency Programs • Austin Energy • Planning, Design and Implementation of an Advanced Distribution Management System (ADMS) • David Tomczyszyn, P.E. • Power System Consulting Engineer • PSE&G • DA’s Role Within the Energy Strong Program • Richard Wernsing • Manager, Asset Strategy - Electric • KCP&L • DA Technology Training and Support • Bill Menge • Director, SmartGrid

7. Our Approach to Benchmarking Leader activity Group activity Interest group Individual company activity 1QC Activity Many activities and a lot of work have brought us to this week’s conference. Survey Final stages of data stewarding 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 7

8. Expectations for the Week

9. What to Expect this Week • For the core areas of the study, we will present results, and engage some discussion within the group, with a focus on covering a few areas: • Scope of the area • Results and trends in performance • Best long-term practices, and what is emerging • How various processes flow through the different functional organizations • How benchmarking help in improvement efforts • Discussion Topics • Distribution Automation • Survey findings and 1QC perspectives • Presentations from the community • Secondary Networks

10. A Process Model for Managing the Network We’ll present much of the information in the context of the process model shown below, with a number of the major process blocks broken into “modules” for analysis and discussion. Respond to Emergencies Add New Customers Sustain Network Expand Network Operate Network Project/Portfolio Management Develop and Approve Asset Plans Develop Network Strategy

11. T&D Module Structure Our questionnaire was structured this year to more closely align with the process model, and create “modules” within the practice area sections Transmission • Transmission Strategy • Automation • NERC standards • Trans. Asset Management • Transmission Operations Center (TOC) • Sustain • Maintenance • ROW • Planning/Engineering/ Design • Field Construction • WMS • Contractor Productivity • Substation • Substation Strategy • Substation Automation • Mobile/Spares • Sub. Asset Management • Sustain Substations • Maintenance planning • Field maintenance • Including NERC standards • Replacement/upgrades • Expand Substations • Planning/Engineering/Design • Job estimating • Field Construction Distribution • Distribution Strategy • Intelligent Grid • Dist. Asset Management • New Business • Network Expansion • Design • Construction Productivity • Sustain Network • Vegetation Management • Replacement/Upgrades • Reliability Improvement • Distribution Operations • OMS • Emergency Response Note: These modules will be covered during the Insights Conference. Safety and Capital Project Management Modules will also be covered, in separate presentations.

12. Presenting Results for the Modules The basic structure for the presentations will have a situation description, along with a chart showing key success factors, followed by supporting results.

13. What You Should Do this Week • Ask questions • Share your ideas • Meet the representatives from the other companies • Ask other companies how they use the results • Ask other companies about the on-site presentations and how they’re set up and used. Consider what themes would you like covered at your on-site. • Think about particular areas of focus that apply to your company, how information can be shared, how your teams can benefit from these results

14. Available Outputs and Uses • 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 each major section • Discussion Topic Results • Webinar Recordings • Click to listen • PowerPoint Summary Files • Insights Conference Presentations • Summary of Findings • Presentations by Members • On-Site Presentations • Tailored to your request • Covering both questionnaire and discussion topic results • Can be presentation or discussion

15. Next Steps Following the Meeting • Any final data modifications and updates • Due: September 8 • Preparations for On-Sites • Schedule with your Data Steward • Select key areas of focus • Determine format of the session(s) • Thoughts and plans for 2015 • Topic areas of interest • Companies to recruit to the community • Ad-hoc surveys

16. Thank you for your Input and Participation! Your Presenters Ken Buckstaff Ken.Buckstaff@1QConsulting.com310-922-0783 Tim SzybalskiTim.Szybalski@1QConsulting.com 925-878-5066 Debi McLain CookDebi.McLain@1QConsulting.com760-272-7277 Dave CanonDave.Canon@1QConsulting.com817-980-7909 Dave CarterDavid.Carter@1QConsulting.com414-881-8641 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 Corporate Offices California 400 Continental Blvd. Suite 600El Segundo, CA 90245(310) 426-2790 Satellite Offices Maryland 3 Bethesda Metro Center Suite 700Bethesda, MD 20814 New York | Texas | Wyoming | Wisconsin