Managing the Challenges of an Aging Workforce Tracy

Managing the Challenges of an Aging Workforce Tracy Mc. Phail, Ph. D. , SPHR tecoenergy. com LIFE RUNS ON ENERGYSM

LIFE RUNS ON ENERGYSM tecoenergy. com n Built In Bifocals with magnifier n When magnification is not enough use Narrator http: //www. microsoft. com/enable/aging/tips. aspx

LIFE RUNS ON ENERGYSM n People 45 years and older comprise 37% of the US labor Force n North American Electric Power Industry is comprised of: – 3000+ electric utilities – 120 million residential customers – 16 million commercial customers – 700 K High Voltage Transmission lines valued at $160 Billion – 5 million miles of distribution lines valued at $140 Billion tecoenergy. com Aging Workforce and Business Operations

LIFE RUNS ON ENERGYSM n American Public Power Association did a study of Workforce Planning Efforts of Power Utilities and found that : n 50% of the utilities track age of their workforce n Of those utilities all had a workforce in which 87% were over 40 years old. n 62% of the workforce had 15+ years of service n 77% of the companies did not have a formal plan to respond to workforce needs tecoenergy. com Aging Workforce and Business Operations

LIFE RUNS ON ENERGYSM n Utility Industry has a workforce that has at least double the number of 40+ workers as other industries n At 50+ utility craft workers have the highest average of any industry n Higher possibility of a workforce of inexperienced operators, system planners and engineers n DOE- Homeland Security tecoenergy. com Aging Workforce and Business Operations

LIFE RUNS ON ENERGYSM n Center for Energy Workforce Development (CEWD) The Center for Energy Workforce Development is a non-profit consortium that was formed in March, 2006. CEWD is the first partnership between utilities, their associations, contractors and unions to focus on the need to build a skilled workforce pipeline that will meet future industry needs. n Florida Energy Workforce Consortium (FEWC): The consortium was formed in April 2006 to identify and develop solutions to meet the current and future workforce needs of utilities in Florida. n Florida Construction Users Roundtable (FCURT): The mission of FCURT is to provide Florida Construction Industry Users and their Associates a Forum for effective exchange of information, views, practices, and policies to help Members improve their Business Operations. tecoenergy. com Utility Industry Initiatives

TECO Energy, Inc. Overview tecoenergy. com LIFE RUNS ON ENERGYSM

LIFE RUNS ON ENERGYSM n 4, 900 team members n 3, 000 are local to Tampa Bay area tecoenergy. com The Men and Women of TECO Energy

LIFE RUNS ON ENERGYSM n Safety n Integrity/Ethical Behavior n Respect for Others n Achievement with a Sense of Urgency n Customer Service tecoenergy. com Our Core Values

LIFE RUNS ON ENERGYSM n TECO Energy, Inc. (NYSE: TE) – Energy-related holding company – Based in Tampa, Florida – Mostly known for: n Tampa Electric n Peoples Gas tecoenergy. com TECO Energy, Inc.

LIFE RUNS ON ENERGYSM tecoenergy. com One Company, Five Businesses Florida Utilities Other Businesses

LIFE RUNS ON ENERGYSM n Electric utility n Started in 1899 n West Central Florida – 2000 sq. miles – Hillsborough – Portions of : n Polk, Pasco and Pinellas n 2, 400 team members n 645, 000 customers n Median Age: 46 n Median LOS: 17 tecoenergy. com Tampa Electric

LIFE RUNS ON ENERGYSM n H. L. Culbreath Bayside Power Station – Converted coal to natural gas n Big Bend Power Station – Scrubbers and SCR technology n Polk Power Station – Clean-coal gasification (IGCC) – 10 -Year anniversary 1996 -2006 tecoenergy. com Clean-burning power stations

LIFE RUNS ON ENERGYSM n Natural gas utility n Started in 1895 n Statewide presence n 563 team members n 320, 000 customers n Median Age: 46 n Median LOS: 12 tecoenergy. com Peoples Gas System

LIFE RUNS ON ENERGYSM tecoenergy. com Florida Service Areas Tampa Electric Peoples Gas

LIFE RUNS ON ENERGYSM n Coal mining/processing n U. S. and international markets n Mines in Kentucky, Virginia and Tennessee n 900 team members n Produces 9 million tons/year + n Median Age: 42 n Median LOS: 5 Years tecoenergy. com TECO Coal

LIFE RUNS ON ENERGYSM n TECO Ocean Shipping – Domestic/international shipping – Tampa, FL n TECO Barge Line – Inland, U. S. waterways – Metropolis, IL n TECO Bulk Terminal – Storage/transfer for import/export – Davant, LA n 1, 100 team members n Median Age: 43 n Median LOS: 11 years tecoenergy. com TECO Transport

LIFE RUNS ON ENERGYSM n Two power plants with long-term sales agreements n 24% ownership in largest Guatemalan electric utility n 145 team members n Median Age: 38 n Median LOS: 5 years tecoenergy. com TECO Guatemala

LIFE RUNS ON ENERGYSM One Company/Five Businesses tecoenergy. com (2005 data)

LIFE RUNS ON ENERGYSM n The Center on Aging and Work at Boston College – www. BC. EDU/AGINGANDWORK n Workforce Planning n Engagement/ Retention n Health/Safety tecoenergy. com Challenges

LIFE RUNS ON ENERGYSM n Ensuring we have Human Resources to meet projected needs n Keep experienced employees performing as long as possible n Change recruitment strategies to meet demand tecoenergy. com Our Response to the Challenge

LIFE RUNS ON ENERGYSM External labor market data forecasts Jobs vs. employees More jobs than people Source: Snodgrass, Center for Energy Workforce Development 2006 tecoenergy. com Industry-wide Aging Workforce Challenges

LIFE RUNS ON ENERGYSM n CHRO supported by HR and HR generalists two process points n Includes traditional succession planning focusing on key positions: CEO, COO, CFO, CHRO, CIO, various Directors n Includes Operation Critical positions: Journeyman Lineman, IGCC process specialists, Watch Engineers tecoenergy. com Corporate Wide Workforce Planning

LIFE RUNS ON ENERGYSM n Non-degreed essential positions – Linemen / Troublemen – Call center professionals – Skilled trade crafts – Power plant operators n Degreed essential professionals – Engineers – Accountants – I/T professionals tecoenergy. com Critical Positions

LIFE RUNS ON ENERGYSM n Involvement in State and National Consortiums n Help Build pipeline by partnering with educational institutions – Hillsborough County School Administrators n Continue Strong Presence in the Market tecoenergy. com Recruitment and Staffing

LIFE RUNS ON ENERGYSM n Older workers may work past traditional retirement age when they have: – Flexible work schedules – Engaging work – Opportunity for learning and development – Need to increase financial security before retirement tecoenergy. com Engagement/Retention

LIFE RUNS ON ENERGYSM n Utilize the expertise within n MDA and LDA n Peer coaching n Officer involvement in learning n Job rotation as a form of development and recognition tecoenergy. com Knowledge Transfer

Purge Manifold Valving Who’s Who LIFE RUNS ON ENERGY * Before we begin Let’s Identify the Purge Manifold Valving * SM -- Generator at 34 psig H 2, Online Valving Shown -- 20 GK-1 To VENT 20 GK-1 Gen H 2 Auto Purge (Vent) Sov # 54 # 75 20 PM-1 CO 2 Auto Block Sov 20 PM-1 COIL # 97 CO 2 Purge to H 2 Turbine / Collector End Analyzers Isolation Valve # 56 # 55 A 20 PM-1 # 77 CO 2 Auto Block Sov (20 PM-1) Manual Bypass Valve # 75 H 2 Supply Isolation Valve SV-1 B # 77 # 71 Aux. CO 2 Purge Connection Pt. Isolation Valve # 68 Instrument Quality Purge / Fill Air Connection Pt. Isolation Valve # 60 CO 2 Supply Isolation Valve # 58 Gen. CO 2 Distribution Pipe Isolation Valve tecoenergy. com SV-1 3 -Way Selector Valve # 56 H 2 or CO 2 Throttling Valve to VENT # 55 Gen. H 2 Distribution Pipe Isolation Valve # 54 20 GK-1 Auto Purge Sov Isolation Valve # 97 # 58 # 60 D # 71 (A) From H 2 Supply Silo Approx. 55 - 75 psig (B) From CO 2 Supply Silo # 68 C Quit (C) To -- From Generator CO 2 Distribution Pipe Header (D) To -- From Generator H 2 Distribution Pipe Header

LIFE RUNS ON ENERGYSM n Higher incidence certain chronic illness/disease – Inform Participants – Focus on prevention n Modify work to respond to issues with aging – Ergonomic initiatives – Accessibility to tool boxes – Hydraulic lifts and power tools – Elevated walkways to eliminate ladders and stairs tecoenergy. com Health/Safety

LIFE RUNS ON ENERGYSM tecoenergy. com Post Retirement

LIFE RUNS ON ENERGYSM n Integrated learning management and talent management systems n Utilize data to drive strategy to build, buy and contract tecoenergy. com The Future

Questions? tecoenergy. com LIFE RUNS ON ENERGYSM