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Safety

August 19-21, 2015

Minneapolis, MN

2015 Transmission & Distribution BenchmarkingCommunity Insights Conference

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Looking for Best Practices

We wanted to find a way to identify best practices and initiatives in the safety area. One way to do that is to find out what the best performers are doing that other companies aren’t doing. So we needed to find out who are the best performers. We:

1) Gathered safety values on 5 major safety measures* for last 5 years

2) Focused on total T&D since we had the most data available

3) Ranked the 5-year average safety value using quartiles (3-year average for Motor Vehicle Accidents)

4) Calculated change in safety value over last 5 or 3 years (slope)

5) Assigned a score for quartile ranking and slope value

6) Calculated a total score for safety

* Measures included:• Recordable Incidence Rate• Lost Workday Case Rate• Lost Time Severity Rate• Days Away, Restricted or Transferred Rate• Motor Vehicle Accident Frequency

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• Compares the 6-year average value to the 6-year change in value

Not Improving

Improving

Total T&D Recordable Incidence Rate

Safety RecordGood Poor

Companies want to have good performance and be either stable or improving – putting them in the lower left corner of the chart.

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Total T&D Safety Ranking: total

TOTAL SCORE IMROVEMENT SCORE VALUE SCORE

Total w/o MVA Total w/MVA

Total w/o MVA Total w/MVA

Total w/o MVA Total w/MVA

Westar Energy 12 12 7 7 5 5

Exelon - ComEd 12 12 6 6 6 6

Tucson Electric Power 11 11 9 9 2 2

Oncor Electric Delivery 10 10 5 5 5 5

Exelon - PECO Energy 6 6 3 3 3 3

CenterPoint Energy 5 5 2 2 3 3

Exelon - BGE 4 4 4 4 0 0

CPS Energy 2 2 5 5 -3 -3

PSE&G -2 -2 -4 -4 2 2

KCP&L -2 -2 -1 -1 -1 -1

BC Hydro -5 -5 -3 -3 -2 -2

Austin Energy -11 -11 -6 -6 -5 -5

Best Performing companies: 22, 24, 27, 31

Putting the data together for the 5 measures, we calculated a total for each company. Westar had the highest total score – meaning that they had generally low safety rates and were improving.

Safety Profile

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2014YE 2013YE  Mean Q1 Q2 Q3 Bars Mean Q1 Q2 Q3 BarsT&D    OSHA Recordable Injury Rate: Combined T&D 2.38 1.49 2.06 2.74 16 2.06 1.05 1.60 2.59 16OSHA Lost Workday Case Rate: Total T&D 0.82 0.30 0.63 0.96 16 0.75 0.23 0.66 0.98 16OSHA Lost Time Severity Rate: Total T&D 27.06 7.67 21.47 42.48 16 33.15 14.14 25.08 53.61 16OSHA DART Incidence Rate: T&D Total 1.59 0.46 1.30 1.71 16 1.52 0.59 1.10 1.49 16Distribution    OSHA Recordable Injury Rate: Distribution Line 2.73 2.07 2.58 3.36 13 3.01 1.22 1.99 2.95 13OSHA Lost Workday Case Rate: Distribution line 0.74 0.30 0.71 0.95 13 0.88 0.27 0.74 1.23 13OSHA Lost Time Severity Rate: Distribution line 23.15 5.48 19.69 33.61 13 41.86 15.21 30.71 60.57 13OSHA DART Incidence Rate: Distribution line 1.53 0.45 1.31 1.95 13 1.78 0.85 1.43 1.59 13Substation    OSHA Recordable Injury Rate: T&D Substations 3.14 0.95 1.76 3.35 12 1.57 0.23 1.03 1.29 12OSHA Lost Workday Case Rate: Substations 1.35 0.09 0.82 1.32 12 0.56 0.06 0.46 0.71 12OSHA Lost Time Severity Rate: Substations 41.16 0.55 12.21 60.89 12 19.73 0.43 3.83 19.11 12OSHA DART Incidence Rate: Substations 2.42 0.45 0.90 2.09 12 0.90 0.47 0.63 1.29 12Transmission    OSHA Recordable Injury Rate: Transmission Line 2.32 0.00 1.18 4.75 9 1.34 0.59 0.85 1.89 9OSHA Lost Workday Case Rate: Transmission line 0.66 0.00 0.13 1.18 9 0.92 0.29 0.70 1.66 9OSHA Lost Time Severity Rate: Transmission line 38.97 0.00 15.03 38.82 9 30.57 4.08 16.31 44.75 9OSHA DART Incidence Rate: Transmission line 1.16 0.00 0.13 1.18 9 1.34 0.41 1.59 1.92 9

Note: Meter Readers not included

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Recordable Incidence Rate

All quartiles and the mean are up this year after 4 years of consistent decline.

Mean 2.4Quartile 1 1.7Quartile 2: 2.1Quartile 3: 2.7

Safety pg 4: SF5 Safety pg 4: SF5

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DART

1st Quartile continued to decline, but the other quartiles are up.

Mean 1.6Quartile 1 0.5Quartile 2: 1.3Quartile 3: 1.7

Safety pg 12: SF5 Safety pg 12: SF5

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Severity Rate

All quartiles went down, but the trends aren’t consistent.

Mean 26.9Quartile 1 8.7Quartile 2: 22.0Quartile 3: 41.7

Safety pg 17: SF5 Safety pg 17: SF5

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Lost Time Incidence Rate

There’s no consistent pattern for lost time incidences.

Mean 0.8Quartile 1 0.3Quartile 2: 0.7Quartile 3: 1.0

Safety pg 20: SF5 Safety pg 20: SF5

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Leading Indicators Performance

Or bad?

Safety pg 60; SF117

So is having more leading indicators good…

Safety pg 60; SF117

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Wellness Programs Offered 2014YE 2015YE

Total Respondents 15 14

Wellness/Health Risk assessment 100% 92.86%

Biometric screening 66.67% 57.14%

Stretching 80% 78.57%

Physical Therapists consultations or guidance on proper movement

46.67% 57.14%

Walking pushups strength training or other fitness programs

33.33% 57.14%

Health education and/or fitness advisors

60% 92.86%

Health challenges 80% 85.71%

Onsite fitness center 60% 64.29%

Stress management 40% 71.43%

Nutrition advice dietician consultations

66.67% 78.57%

Weight lossweight management 66.67% 78.57%

Smoking cessation programs 60% 78.57%

Other 26.67% 21.43%

Wellness Programs & Usage Encouragement

Reduction in healthcare premium as an option has gone down

Safety pg 79; SF215

The biggest change has been in Health Education & Stress Management

Safety pg 82; SF220

Encouraging Usage 2014YE 2015YE

Total Respondents 15 14Communications 100% 100%

Gift certificates gift items 40% 50%

Road shows meetings 66.67% 71.43%

Challenges competition prizes 53.33% 64.29%

Reduction in healthcare premium 66.67% 57.14%

Reduced gym membership fee or gym membership reimb

53.33% 71.43%

Other 33.33% 35.71%

Safety Profile

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2014YE 2013YE  Mean Q1 Q2 Q3 Bars Mean Q1 Q2 Q3 Bars

Vehicle Accidents    

Total Frequency Rate of Accidents: Total T&D 7.89 5.53 8.08 10.42 16 8.28 5.31 6.65 9.57 16

Total Frequency Rate of Accidents: Distribution line 9.57 7.12 10.02 11.19 12 7.62 5.83 7.56 9.39 12

Total Frequency Rate of Accidents: Substations 6.39 1.75 5.44 10.69 11 19.13 6.72 10.74 17.95 11

Total Frequency Rate of Accidents: Transmission line 21.64 5.95 9.57 12.62 8 6.87 3.17 6.22 9.53 8

Note: Meter Readers not included

Aside from the Smith Driving System, some utilities are using some new practices to improve vehicle safety (SF35):• No mobile device (calls, texting, bluetooth) (#40, 31)• Management reviews of vehicle infractions (#32)

More companies are using speed monitoring devices than previously.

2013YE 2014YETotal Respondents 10 14Drivecams 30% 29%Backup cameras 70% 79%Speed monitoring devices 30% 43%Other 30% 36%

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Total Vehicle Accident Rate

Despite focused efforts by most utilities, vehicle accidents are rising.

Mean 7.6Quartile 1 3.4Quartile 2: 7.8Quartile 3: 10.1

Safety pg 28: SF5 Safety pg 28: SF5

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Corporate Offices

400 Continental Blvd. Suite 600El Segundo, CA 90245(310) 426-2790

New York | Maryland | Texas | Wyoming | Wisconsin

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

About 1QC

Satellite Offices

Debi CookDebi.Cook@1QConsulting.com760-272-7277

David WeilerDavid.Weiler@1qconsulting.com607-761-6778

Dave CanonDave.Canon@1qconsulting.com817-980-7909

Dave CarterDave.Carter@1qconsulting.com414-881-8641

Your Presenters

Ken Buckstaff Ken.Buckstaff@1QConsulting.com310-922-0783

Thank You for Your Input and Participation!