Oncor Retiree Benefits 2017 ANNUAL ENROLLMENT September 5

Oncor Retiree Benefits 2017 ANNUAL ENROLLMENT September 5, 2016 1

Annual Enrollment begins on 10/10/2016 and ends on 10/21/2016 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Annual enrollment materials will have the Oncor Live Well logo. You will continue to make changes through e. People at 1 -888 -812 -5465 or log onto www. connect 2 epeople. com/retirees. If you do not want to make a change, you do not need to take any action. Access important benefit information and videos on the Oncor retiree website at https: //oncorretirees. a. guidespark. com. 2

What About the Costs? Your monthly contribution amounts will be on your personalized worksheet that will be included in your 2017 annual enrollment materials. You will notice a change in your medical contributions from 2016 to 2017 depending on your rate band medical plan option. Dental Plan A rates are increasing slightly ($1. 00 - $2. 00) for 2017. There is no change to the vision and life insurance premiums. If you are paying Chard-Snyder with a bank draft, you must contact them to update your 2017 contribution amount. Failure to update this amount may cause your account to be in arrears, and may lead to termination of your benefits. 3

Smart Phone App Oncor’s “On the Go” smart phone app so that you have access to your benefit information on our cell phone! 4

Smart Phone App Benefit contact information is just a click away! 5

Smart Phone App To download the app onto your phone, follow the instruction below for the phone you have: i. Phone or i. Pad – enter http: //onthego-Oncor. com/ret/ to your internet browser toolbar. Tap on the arrow at the bottom of the page then tap on “Add to Home Screen” Android - enter http: //onthego-Oncor. com/ret/ to your internet browser toolbar. Tap menu the bookmark button. Choose add the site to your book marks. Access your bookmarks, tap and hold the bookmark you created. Select the “Add shortcut to Home” option Blackberry – enter http: //onthego-Oncor. com/ret/ to your internet browser toolbar. At the top of your screen, click the icon of the globe with an arrow pointing down. Select “Add to Home Screen”. Tap “Add” button 6

Pre-65 Retiree Medical Plan 7

Incentive Structure for Non-Medicare HRA and HSA Plans Oncor’s focus is on wellness and preventive screenings. In 2017, Oncor’s Healthy Incentive as a way for you to earn additional incentive dollars if you meet certain healthy targets or complete a health coaching program. Cover-Tek is Oncor’s new provider for biometric screenings. You may have your biometrics done at your doctor’s office. Have your doctor complete the form and fax it to Cover-tek. To download the form go to https: //oncorretirees. a. guidespark. com, or you can contact Evive and request one. Your health risk factors will be measured by Cover-tek from your biometric results. You can receive a $325 incentive if you have 2 or fewer health risk factors. If you have 3 or more health risk factors, you can complete a health coaching program to receive the incentive. 8

Incentive Structure for Non-Medicare HRA and HSA Plans • Earn an additional $100 incentive by enrolling with Compass and Evive. • Age and Gender Screening incentive is available to covered spouses • Age and Gender Screening incentive for a retiree will be $500 and for a spouse will be $325 9

Health Tools Incentives Compass helps participants be more informed about their health care decisions. A Compass Health Pro offers a variety of valuable services to help participants navigate through their health care decisions: • • Assistance in choosing a doctor Provider quality and cost information Benefit questions Assistance with complex claim and billing questions To register, go to the Compass website at https: //member. compassphs. com and follow the steps. If you have already registered with Compass in the past, you do not need to register again to get the incentive. Evive Health manages the medical option incentives for the retiree HRA and HSA medical plan options. To register with Evive, log onto https: //Oncor. myevive. com If you register in the Get Connected with Compass and Evive, you will earn a $100 incentive. 10

2017 Pre-65 Incentive Design Pre-65 - Incentive Chart Incentives Biometric Screening (Physician Form Only) Annual Physical 2016 HRA 2017 HRA 2016 HSA 2017 HSA $50 RET $300 RET $300 SP $450 RET/CH $450 EE/CH $650 RET $650 SP $1, 500 RET/CH $1, 500 EE/CH Age and Gender Screenings $500 RET $325 SP Healthy Tools Incentive (Compass and Evive) $100 RET Healthy Incentive $325 RET $1, 275 $1, 900 $1, 425 $1, 900 $1, 625 $2, 600 $2, 425 $2, 600 $1, 625 $2, 600 $2, 475 $2, 600 Total Incentives RET ONLY Total Incentives RET&SP Total Incentives RET&CH Total Incentives FAMILY 11

What You Need To Do • • You should get your biometric screening at your doctor’s office You and your spouse should have an annual physical You and your spouse have your age and gender screenings If you need to complete a targeted health coaching program (for the retiree only), you will need to enroll in one of the two programs offered. Completion of the program must be reported to Evive by July 31, 2017. 12

What are Health Risk Factors? There are two types of health risk factors: • Those beyond a person’s control such as age, gender, and heredity; • Those that are affected by behavior and lifestyle Medical experts have identified five risk factors that can be affected by behavior and lifestyle which may be key in developing certain conditions, such as heart disease, stroke, and diabetes. 13

Health Risk Factor Chart Risk Factor What It Means* The Healthy Target Low HDL Cholesterol HDL cholesterol helps remove cholesterol from the arteries, so a high level of HDL is good. A low HDL cholesterol level raises your risk of heart disease. For men: Greater than or equal to 40 mg/d. L Triglycerides are a type of fat found in the blood, and high triglycerides increase the risk of developing heart disease. Also known as blood sugar, glucose is what the body uses for energy. High glucose may be a sign of diabetes and can affect kidney functions. Blood pressure is the force of blood pushing against the walls of your arteries as your heart pumps blood. Your heart can be damaged and develop plaque buildup if your blood pressure rises and stays high over time. Abdominal obesity (excess fat in the stomach area) is a greater risk factor for heart disease than excess fat in other areas of the body, such as on the hips. Less than 150 mg/d. L High Triglycerides High Blood Glucose High Blood Pressure Waist Circumference For women: Greater than or equal to 50 mg/d. L Less than 100 mg/d. L Systolic less than 130 mm. Hg Diastolic less than 85; For men: Less than 40 inches For women: Less than 35 inches *Source: National Heart, Lung, and Blood Institute 14

Health Coaching Programs In 2017, Oncor will again offer two health coaching programs. If you have 3 or more risk factors you can enroll in one of the following programs to earn your $325 incentive. • Naturally Slim Program is a 10 week online program that focuses on nutrition, exercise, and lifestyle choices to help people lose weight and reduce the risks associated with Metabolic Syndrome • Ultimate Health Matters is a 12 week personalized program with telephonic sessions with a coach whose focus is to teach people how to adopt a healthier lifestyle to reduce risks associated with Metabolic Syndrome 15

Incentive Compliance Period Incentives are validated through claims and may have up to a 3 month lag period from time of service to funding. The earlier you complete an activity, the sooner your HRA or HSA will be funded. In the newsletter that will be mailed to you shortly, there is a compliance period schedule which lists the timing of 2016 and 2017 incentive activities and an estimated time when you can expect to receive funding for the completed activity. 16

Scott & White Health Plan Option The Scott & White option is not available to new participants. If you currently participate in this option, you may want to consider the advantage to changing to the HRA or HSA option. Points to consider are: • Scott & White providers are in the BCBS of TX network • Coverage will be available for both in and out of network providers • You will have an opportunity to earn incentives to fund your HRA or HSA account • No change to your prescription drug plan 17

What To Do When You Turn 65 Medicare eligibility begins the first of the month in which your 65 th birthday occurs. If your birthday happens to fall on the 1 st day of the month, then your Medicare eligibility will be the first day of the month preceding your birthday month. About 3 months before your Medicare eligibility begins you should receive a notice from Medicare and an age-in letter from e. People regarding your change in medical plans. You should elect Medicare Parts A and B. Do not elect Part D if you plan to enroll in an Oncor Indemnity plan with prescription drug coverage. Call e. People to give them the Health Insurance Claim Number (HICN) as it appears on the card to avoid an unnecessary delay in your prescription drug coverage. If you or your covered dependent(s) are not Medicare eligible, there will no change in the pre-65 retiree medical plan. You and your covered dependent(s) will be in a split plan. 18

Post-65 Retiree Medical Plan 19

Medicare Eligible Retirees - One. Exchange Option As you know, Oncor has partnered with One. Exchange (Extend Health) in order to offer you an extensive menu of plan options from which to choose. One Exchange is the nation’s largest private Medicare exchange serving over 650, 000 retirees with their health care needs. Their licensed agents can help you find medical, pharmacy, dental, and vision plans that fit your healthcare needs. Often times, the cost of these plans is less than what you would pay to participate in one of our traditional plans. When you enroll in a plan through One. Exchange, Oncor will set up an HRA account and fund that account with the same amount it would have spent on your coverage in a traditional plan. Any unused balance is carried over year after year as long as you are enrolled in a plan through One. Exchange. 20

Medicare Eligible Retirees- One. Exchange Option One. Exchange partners with 85 different insurance companies throughout the U. S. Some of these insurance companies are AARP, BCBS, Aetna, Humana, Express Scripts, and Cigna just to name a few. One. Exchange Benefit Advisors are: • Licensed by the State Department of Insurance • Accredited by the State Department of Insurance in Texas • Certified & appointed by every carrier they represent • 100% domestic workforce All Medicare Plan types are offered: • Medicare Advantage • Medicare Supplement (Medigap) • Medicare Part D prescription plans • Dental & Vision 21

Medicare Eligible Retirees- One. Exchange Option Following are brief descriptions of the various Medicare plan types. • Medigap (Medicare Supplement) fills the gap in original Medicare Parts A & B coverage to help pay the difference between your costs and the amount Medicare pays. They also may provide additional coverage for your medical care expenses • Part D Plans provide prescription drug coverage • Medicare Advantage plan provides an all-in-one plan that bundles Medicare Parts A, B, & D and are typically network based plans 22

Medicare Eligible Retirees - One. Exchange Option Many affordable choices exist. To find out more about what is offered in your area, contact One. Exchange to set up an appointment with one of their benefit advisors. There is no obligation to enroll and no cost to just checking it out. To find out more, call One. Exchange at 1 -844 -498 -5563 to make an appointment with a licensed benefit advisor to discuss your health care needs and a plan that may fit those needs. You have the flexibility to change plans each year if your circumstances change. 23

One. Exchange HRA Funding Amounts The amount Oncor will contribution to your One. Exchange is the same amount it would have otherwise contributed to a traditional plan election according to your point determined rate band. You may use this money to reimburse yourself for eligible medical expenses which include premiums and certain out-of-pocket expenses such as copays and coinsurance. Description Rate Band Retiree Only Retiree & Spouse Only One. Exchange Grandfathered $4, 455. 82 $8, 911. 24 $4, 455. 82 One. Exchange B $3, 614. 72 $7, 374 $3, 614. 72 One. Exchange C $2, 586. 08 $5, 172, 16 $2, 586. 08 One. Exchange D $1, 803. 28 $2, 444 $1, 803. 28 One. Exchange E $0 $0 $0 If your service is split between regulated and non-regulated, the amount of HRA funding will be calculated on an individual basis according to your regulated allocation factor. 24

Your Retiree Company Discount Programs As an Oncor retiree, you are eligible for certain discounts and company perk programs. Retirees are eligible for the Blue Cross Blue Shield gym membership discount program. Log onto to https: //bcbstx. com and select Fitness Program from the Quick Links menu on the left for assistance in locating a participating fitness centers near you. There also company discount programs offered to Oncor retirees: • Ford Motor Company new vehicle purchase, go to https: //www. fordpartner. com/index. asp, enter Oncor’s Fleet ID number (FIN) UH 060 • Texas Ranger Tickets, http: //texas. rangers. mlb. com/ticketing/index. jsp? c_id=tex use password ONCOR 15 • Six Flags, go to https: //www. sixflags. com/partnerlogin , username ONCOROT, password, Six. Flags 9 • Dallas Mavericks tickets (for Oct. Nov. & Dec games) Discounts will apply for playoff tickets • Dallas Stars tickets, www. dallasstars. com/oncor, For more information about the company discount programs, go to www. connect 2 e. People. com/retirees and select the HR Toolkit link. 25

Your Online Benefit Resources Ø https: //www. connect 2 epeople. com/retirees Ø HR Toolkit Ø www. connect 2 epeople. com/retirees Ø Click on HR Toolkit Ø Enter user name: EXTARINSOEXT_ONC_RET Ø Enter password: ONC; 3456 Ø https: //oncorretirees. a. guidespark. com Ø On the Go App for your phone Ø Circle of Resources on your phone 24/7 26

Any Questions? Options and plans provided in this communication, as well as other communications materials, are intended only to be summaries of certain provisions of the plans. The plans are governed by formal plan documents and, in the event of a discrepancy, the formal plan documents will prevail. Oncor reserves the right to amend and/or terminate all of its employee benefit plans, in whole or in part, from time to time. 27