DriveCam Safety System

Presentation to Drivers

February 2010 (Wave IV)

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DriveCam - What is it? How does it work?

A camera system that continuously records the video and audio inside and outside of a vehicle

Recordings are saved only when there is abrupt movement of the vehicle (“event”) - DriveCam captures 8 seconds prior to and 4 seconds after an event

Device can only be activated 2 ways (cannot be remotely activated)1. Abrupt movement (three

axes: forward/backward, lateral, up/down)

2. Manually activated by the driver

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DriveCam Program Change / Event Audio

Support from all stakeholders is critical, and will improve program results, and ultimately the safety of all of our drivers.

To this end, all DriveCam events will be forwarded to our company without audio, beginning on Monday, January 25th. The sound can be restored when an event is downloaded and saved.

The audio will be restored by coaches, if the event meets at least one of the following criteria: Any collision regardless of fault, including any time a Company vehicle

strikes or is struck by another vehicle, any object, pedestrian, etc.; Any possible collision as categorized by DriveCam because they need

driver/coach review and input to make a final determination; Any case where a Company employee advises their coach that they

have voluntarily & deliberately set off the DriveCam device by hitting the button (“Manual” event) in order to capture events or activity for any reason, including but not limited to protecting them against danger; or

Any event with potential to result in civil liability, third-party action or criminal action against the Company or an individual, e.g. police investigation, request from our legal department or an external party.

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DriveCam - Why?

DriveCam is a safety system that mitigates risk by improving driver behavior and

assessing liability in collisions

Helps employees by identifying and changing poor driving habits as well as

reinforcing good driving habits

Reduces vehicle damages, workers’ compensation and personal injury costs

• Disproves false statements & blame (internally & from public claims)

Supports National Grid safety culture

One Company, One Way – consistent message regarding safety

Comprehensive approach to injuries and liability

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DriveCam – Who? Where? When?

o Install DriveCam in all USGDx field force & 1st line supervisor vehicles

(excluding special purpose vehicles such as digging equipment & trailers)

o 90-day Pilot, Sept – Dec 2008 (Wave 1)

Providence, RI and Canarsie, NY yards

275 field and supervisor vehicles

o Findings from 1,547 events

10 events were road traffic collisions

60 were near collisions (51 avoidable)

65% of events triggered by hard braking and 27% by uneven surfaces accompanied by a risky behavior or violation

18 drivers triggered 26% of the events

Identified infractions (risky behaviors) to driving fundamentals:

– Driver unbelted (47%)

– Following too closely (20%)

– Traffic violation (12%)

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DriveCam – Who? Where? When?

Wave 2 included a total of eight locations which comprised about 1/3 of the USGDx fleet

and account for about 1/2 of the reported RTAs in FY2009 through the end of January

• Selection criteria included percentage of USGDx RTAs and accident-to-vehicle ratio

Cross-section of regions, local unions and vehicle types

• Wave 2 Go Live June 2009

Department Name Area Reported RTAs Percentage of total Vehicles Accident/Vehicle RatioKSE Canarsie Service Center NYC 66 13% 327 20%KSE Greenpoint Service Center NYC 52 11% 302 17%NE Gas Dexter NE 40 8% 207 19%KSE Waltham NE 21 4% 164 13%KSE Dorchester Comm'l Pt. NE 16 3% 67 24%KSE Hewlett LI 16 3% 90 18%Lincoln NE 16 3% 44 36%HCB Operating Hqtrs(HCB2) Upstate 12 2% 66 18%

Wave 3 targets selected based on same criteria and include 8 additional yards (Bellmore,

Roslyn, Buffalo, Cumberland, No Kingstown, Amesbury, Lowell, Malden Gas

Wave 3 Go Live Dec 2009 and Jan 2010

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Benefits

To our employees

Reduces probability of injuries to employee and public

Reduces lost time

Provides visibility to poor driving practices; supports focused corrective

actions

Disproves false statements & blame (internally & from public claims)

To our company Focuses training & resources on the real problems

Reduces vehicle damage repairs

Reduces worker’s compensation

Reduces personal injury claims (medical & legal)

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The Safety Imperative

651 RTAs

1 Fatality

30 Lost Time Injuries

300 “OSHA” Injuries

3,000Near Misses

26,400 At risk behaviors (88%)and 3000 Unsafe Conditions (10%)

DriveCam Pilot FindingsFY08/09

11 LTIs in 2009

1 in 7

employees!

1 pedestrian

FY07/08

671 RTAs

1 pedestrian

47% of drivers with events were not wearing seat belts

60 near collisions

Potentials w/pedestrians

Nationally, 63% of people killed in auto accidents were not wearing seatbelts

Lack of seat belts contributes to more fatalities than any other single safety-

related behavior

10 RTAs

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DriveCam Experience to Date

A high incidence of traffic violations, and unbelted driving

For most drivers, coaching & training have led to improvements

Yet 10% of drivers are consistently responsible for at least 30% of

the risk

DriveCam has shown skillful driving – at least two alert drivers

avoided children darting into the street

DriveCam has captured a life saved by two of our employees

DriveCam has proven no fault in situations where the driver was

falsely accused

DriveCam video has caught a thief in action

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What To Expect

Your supervisor will review events with you

You will have the opportunity to observe the recorded event

and provide feedback

Confidentiality

Your supervisor will coach you on the ways in which you can

reduce risky driving behaviors

The goal is to change risky behaviors, improving the overall

safety of the driver, not to discipline

If coaching and/or training is not effective, the Company

reserves the right to take disciplinary action

Interfering in anyway with the operation of DriveCam will result

in progressive discipline, up to and including suspension

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DriveCam – Questions