MidWest Electric Consumers Association Board Meeting Mark A

Mid-West Electric Consumers Association Board Meeting Mark A. Gabriel Administrator

Thank you, Tom

State of Western’s Assets 3 1

Operational Focus • Western operates and manages on a distributed basis • First pathway in the roadmap focuses on business, technology and organizational excellence • Provide staffing and support where it is most logical and cost effective • Streamline where possible to keep costs low

Functions and Locations 6 1

Roadmap 2024

Strategic Targets Power and Transmission-related Services Energy Infrastructure Partnership and Innovation Asset Management Safety and Security Communication Human Capital Management 8 1

Asset Management • Comprehensive, data-driven program • Knowing the health and condition of our assets contributes to the safety of our employees who maintain that equipment. 9 1

Human Capital Management • Aging workforce, rapidly changing industry • Shortage of mission-critical craft workers • Focus on effective workforce planning and succession planning • Ensure the right people, properly trained, in the right places 10 1

Enterprise Risk Management

Roll up of 10 -year Capital Investment Plans

Washington Updates • Western is staying actively engaged in DC – Detailed staff to support QER – Cycling staff through WLO as part of our leadership development • Seat at the table on the ESCC – Participating in playbook, transformer initiative, Grid. Ex, public affairs outreach • Responding to amortization and related requests from BOR and COE • Regular meetings and engagement with DOE and Congressionals

Presidential Expectations • Presidential call for efficiency and effectiveness reforms across government • Sec. Moniz committed to improving DOE management functions (Western’s HR authority is delegated from DOE). • DOE Human Capital strategic plan, provided to President, includes reduction of per-employee cost 50% DOE-wide, including all of the PMAs. • DOE Chief HCM Officer conducted 120 -day study, recommended hybrid Shared Service Center (SSC) approach to Secretary. • Secretary accepted recommendation.

Washington Update: Human Resources Study • HR Authority Delegated from the Department of Energy • Western among the Best in Government Class: – High service ratio (1: 54) – Lowest cost ($2, 042/employee/year) – Effective HR management • Verified/measured by OPM/IG audits – 24 staff members located in Lakewood supporting all of Western with: • Position management • Recruitment, hiring, onboarding • Labor relations • Disciplinary actions – 1 Staff member in each Western region to assist with labor relations and related

SSCs – Shared Service Centers • Current: DOE HR authority is highly delegated to 17 sites = Risk, cost, and inefficiency for DOE. • To be: Hybrid approach - Shared Service Centers (SSCs) across DOE • SSCs will be aligned by similar business lines. • There will be a PMA-specific Shared Service Center. – HR operations will report to DOE HR. – SSCs will manage the transactional aspects of HR. – HR experts will be/remain on-site at each PMA to give daily support. • Location of PMA SSC is to be determined. • DOE preparing evaluation criteria to select location • 4 SSCs – PMA would likely be last formed, est. mid-late 2016

Western is competing to have the SSC • We are committed to ensuring lower cost and higher service ratios for Western, regardless of location of SSC. • We are actively participating wherever we can, and in helping create the evaluation criteria for selection of location. • We are actively working to keep a local presence focusing on PMA-specific needs. • We are making it clear that we are 91% customer funded. • Savings will come back to Western.

Our Commitments