Field service 2016 Benchmarking Insights Conference Boulder, CO 1 This material has been optimized for the Insights Conference audience. To get the most of this material and hear a recording of this presentation go to our and find the table for CS Insights, then click on the ”Field Service” link.

Agenda  Overview  Coverage of the Study for Field Service  Process Model for Resolve Customer Meter Request & Collect For Service  2016 Key Findings/ Points of Emphasis  Performance Profiles  Cost/ Service  2016 Benchmarking Results  Functional-specific findings (Cost, Volume, Practices)  Areas of Focus and Opportunity 2

Overview 3

2016 CS Benchmark Questionnaire structure 4 CS Support and CS IT Customer Contact Contact Center Local Office Self Service Contractors Credit Inbound calls Customer Contact Contact Center Local Office Self Service Contractors Credit Inbound calls Back Office Billing Billing Field Policies Payment Processing Back Office Billing Billing Field Policies Payment Processing Field Service Change of Account Billing Field Orders (meter investigations) Credit Field Orders Order Management Field Service Change of Account Billing Field Orders (meter investigations) Credit Field Orders Order Management Meter Reading Manual Mobile AMR Fixed Network AMI Meter Reading Manual Mobile AMR Fixed Network AMI Revenue Management Credit Office and Outbound calls Credit Field and Inbound Contact Policies Revenue Protection: Office and Field Revenue Management Credit Office and Outbound calls Credit Field and Inbound Contact Policies Revenue Protection: Office and Field Employees: Safety, Staffing Customer: Customer Satisfaction, First Contact Resolution, Customer Experience, Key Account Management, Energy Efficiency, Outage Communications Customer: Customer Satisfaction, First Contact Resolution, Customer Experience, Key Account Management, Energy Efficiency, Outage Communications Areas excluded: Meter Change-out

Answer Customer Call and Validate Account Create Appropriate Order Schedule Order Complete Work And Close Order Update System (CIS) Resolve customer meter request Initiate Bill For Service Process Diagnosis And Confirm Issue 5

Receive And Post On-Cycle Payment Execute Customer Treatment Path Based On Risk Segment (For Protections Or Field Eligibility) And Prioritize Implement Field Cut-Out And Collection Treatment Execute Final Bill Collection Collect for service Implement Account Write-off Procedures Analyze Reporting And Execute Strategy For Revenue Recovery 6

Key Findings / Points Of Emphasis 7 Service UTC/CGI rate increased 10% of companies do not offer appointments for any order type Cost Returned to 2013 year spending levels Volume Order volume decreasedCredit orders account for 44% of all orders

Performance Profiles 8

9 Cost comparison Community Composite Costs are per Accounts * Commodity Total 2015 CS Cost Excluding Write-offs Field Service Community Mean = $4.32

Field service profile 10 Costs increased while the number of orders declined 2015YE2014YE MeanQ1Q2Q3BarsMeanQ1Q2Q3Bars Costs Field Service Cost Per Account * Commodity$4.96$3.98$4.86$ $4.24$2.83$4.11$ Field Service Cost Per Service Order$28.45$11.35$18.58$ $22.37$5.34$11.77$ Internal Measures Field Orders Not Completed (CGI OR UTC)17.8%6.2%13.3%22.7% %3.6%10.8%14.8% 17 Change of Account Field Orders per Accounts * Commodity Billing related Field Orders per Accounts * Commodity Credit related field orders per Account * Commodity Safety OSHA Recordable Injury Rate: Field Service OSHA Lost Workday Case Rate: Field Service OSHA DART Incidence Rate: Field Service Frequency Rate of Vehicle Accidents: Field Service Demographics Field Service Orders per Account * Commodity Percent of orders completed by automation Gas Meters as a Percent of Total13.1%23.1%0.0% %31.0%0.0% 17 Field Service FTEs per 100,000 Accounts * Commodity

FIELD SERVICE Spending 11 The gap between 1 st and 4 th quartiles is closing Mean costs increased 17% from last year FS Page 3 – FL5 Mean$4.96 Quartile 1$3.98 Quartile 2:$4.86 Quartile 3:$5.97

2016 Benchmarking Results 12

Density’s impact on FIELD SERVICE FTES 13 Understanding FTEs in relationship to Customers per Sq Mile Mean397 Quartile 1306 Quartile 2:149 Quartile 3:6464 SF Page 39 – SF30ST Page 13 – ST30 Customers Per Sq Mile Mean7.3 Quartile 14.8 Quartile 2:6.7 Quartile 3:10.3

Service territory size impact on staffing 14 Technology Delinquent customer base (Credit orders) Transient populations (COA orders) Technology Delinquent customer base (Credit orders) Transient populations (COA orders) There doesn’t appear to be a relationship of direct staff size to service territory SF Page 39 – SF30 ST Page 13 – ST30

FIELD SERVICE Labor COST 15 Staff ratios are consistent with last year 16 of 33 companies utilize outsourced support (Contract Labor / Services) FS Page 3 – FL5 Mean$4.96 Quartile 1$3.98 Quartile 2:$4.86 Quartile 3:$5.97

Field service Orders 16 COA orders had the biggest decline Q1 performers perform a consistent volume of orders per adjusted account COA orders had the biggest decline Q1 performers perform a consistent volume of orders per adjusted account Less field work was competed per adjusted customer as compared to the previous year FS Page 8 – FL50 Mean0.290 Quartile Quartile 2:0.259 Quartile 3:0.411

FIELD SERVICE COST PER SERVICE ORDER 17 Cost per order isn’t a good representation of performance 27% increase in the mean from 2014 FS Page 5 – FL5 Mean$28.45 Quartile 1$11.35 Quartile 2:$18.58 Quartile 3:$39.34

FIELD SERVICE COST BY ACTIVITY 18 Credit up 5% from 39% COA down 10% from 54% Billing up 5% from 7% Credit Order = $25.71 COA Order = $19.66 Billing Order = $40.25 Credit up 5% from 39% COA down 10% from 54% Billing up 5% from 7% Credit Order = $25.71 COA Order = $19.66 Billing Order = $40.25 Slight shift in order demographics from last year FS Page 8 – FL50 Mean$4.77 Quartile 1$3.92 Quartile 2:$4.81 Quartile 3:$5.59

AVERAGE NUMBER OF JOBS COMPLETED PER DAY 19 68% of companies do not include CGI/UTC in completion totals 20% do include CGI/UTC in completion totals 68% of companies do not include CGI/UTC in completion totals 20% do include CGI/UTC in completion totals Wide range of completion totals FS Page 30– FS20 Mean33 Quartile 120 Quartile 2:37 Quartile 3:42

FIELD ORDERS NOT COMPLETED (CGI OR UTC) 20 Company Labor - $24.9M Contract Labor - $1.2M Contracted Serv - $4.4M Understand performance by order type Billing COA Credit Company Labor - $24.9M Contract Labor - $1.2M Contracted Serv - $4.4M Understand performance by order type Billing COA Credit $30.5M was spent to not accomplish the work as intended FS Page 25 – FS7 / FS5 Mean18 % Quartile 1:6 % Quartile 2:13 % Quartile 3:23 %

ORDERS SENT TO THE FIELD BECAUSE THE AMI SYSTEM/METER FAILED % to 1.8% of AMI meters will not respond to routine daily order commands First Year Question Staffing, scheduling and routing are all impacted First Year Question Staffing, scheduling and routing are all impacted FS Page 27– FS8 Order / 100,000 Accts * Commodity

CHANGE OF ACCOUNT FIELD ORDERS 22 34% reduction in the mean order volume per adjusted customer Mean cost per order reduced 18% from $ % reduction in the mean order volume per adjusted customer Mean cost per order reduced 18% from $24.14 FS Page 31 – FS25FS Page 13– FL50 / FS5 Mean0.13 Quartile Quartile 2:0.09 Quartile 3: Mean$19.66 Quartile 1$15.86 Quartile 2:$18.56 Quartile 3:$22.69 COA Cost Per Order

BILLING RELATED FIELD ORDERS 23 33% decrease in the mean order volume per adjusted customer Mean costs decreased 9% from $ % decrease in the mean order volume per adjusted customer Mean costs decreased 9% from $44.10 FS Page 38 – FS35FS Page 16 – FL50 / FS5 Mean Quartile Quartile 2: Quartile 3: Mean$40.25 Quartile 1$13.71 Quartile 2:$18.56 Quartile 3:$31.17 Billing Cost Per Order

BILLING RELATED FIELD ORDERS 24 69% of orders are internally generated from billing 51% are found with a meter reading error 69% of orders are internally generated from billing 51% are found with a meter reading error FS Page 38 – FS35 Mean Quartile Quartile 2: Quartile 3: FS Page XX – FS40 Field Investigations Resulting in Meter Reading Error

CREDIT RELATED FIELD ORDERS 25 20% decrease in the mean order volume per adjusted customer Mean costs decreased 9% from $ % decrease in the mean order volume per adjusted customer Mean costs decreased 9% from $28.62 Mean$25.71 Quartile 1$15.86 Quartile 2:$18.58 Quartile 3:$36.14 FS Page 42 – FS50FS Page 19– FL50 / FS5 Mean Quartile Quartile 2: Quartile 3: Credit Cost Per Order

ORDERS TYPES WITH CUSTOMER APPOINTMENTS 26 FS Page 57 – FS105 While offering appointments is more common, not everyone makes them available. For what orders types do you make customer appointments?2929 None we do not offer appointments10.34% Change of Account (turn on or turn off)41.38% Seasonal Pilot Relight10.34% Reconnect after disconnect27.59% Billing Investigations37.93% Communications routinely used for appointment reminders?2020 NoneNone80% 0%0% TextText0%0% Mobile App push notification0%0% IVR automated call15% CSR nonautomated call0%0% FSR nonautomated call10% FS Page 61 – FS110

What practices are in place?2929 Field workers orders are optimized and expected to be completed in optimized order72.41% Field workers can work orders in the sequence they want to41.38% Field worker works through order status in mobile application75.86% Field worker can query for additional customer information as needed34.48% Field workers can handle generate emergency orders on a priority basis62.07% Field workers have key field information validated in the system upon entry24.14% Field workers are tracked via GPS or AVL34.48% Other3.45% Managing the field worker 27 40% responded that they actively monitor workers. FS Page 75 – FS145 FS Page 76 – FS150 Do you monitor workers real-time?2929 We have no work planning or scheduling group or function10.34% Little active monitoring of order status44.83% Active monitoring of order status by work planning13.79% Monitoring of order status by local supervision3.45% Active monitoring of order status by both local supervision and work planning27.59%

Measuring the field worker 28 FS Page 89 – FS180 How Worker Performance Is Measured2727 No measures used3.7%3.7% Orders completed (typically per hour or per day)96.3% Log on or Log off time70.37% En route or onsite times29.63% Percent of appointments kept37.04% Other18.52% Are we maximizing each minute for each worker?

Monitoring the field worker 29 Real-time performance management FS Page 78 – FS160 ACTIVELY MANAGE THE FIELD WORKER STATUS DURING THE DAY2929 No; not at allNo; not at all34.48% Yes; but on an ad hoc basis not consistent or required as a management measure27.59% Yes; fully manage status available signedoff enroute onsite unavailable37.93%

TIME FIELD SUPERVISOR ACTUALLY SPENDS IN THE FIELD, WITH WORKERS, ON A WEEKLY BASIS 30 Safety observation tours Coaching, mentoring Training Safety observation tours Coaching, mentoring Training 83% of Supervisors spend 10 or less hours a week in the field FS Page 77 – FS155 Mean9 Quartile 110 Quartile 2:6 Quartile 3:6

Work Completion KPI’s Worker Management KPI’s Work Management KPI’s Organizing for high performance 31 Capacity Planning Route Optimization Real-time Oversight Customer Commitments Program Deadlines Resource Availability Route Completion Field Interactions Worker Communication Work Quality Safe Practices Efficient Execution Customer Experience Work Standards Data Integrity Centralized Hub Supervisor Field Worker Right Work to the Right Worker at the Right Time

Areas of Focus and Opportunity 32

areas of Focus and Opportunity  Volume  Understand and report on the results of your efforts to the supplier – (FS30, FS42) – COA and Billing order must all add value.  Cost  UTC/CGI (FS7) – Understand this by order type (Billing / Credit / COA) and source (Internally or customer generated)  Service  Work and Worker Management – Have improvement initiatives focused on all 3 areas of opportunity. (FS95, 145, 150, 160, 185) - 33

Thank You for Your Input and Participation! 34 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 | Follow our updates on LinkedInwww.1stquartileconsulting.comLinkedIn About 1QC Ken Buckstaff Debi Cook Gene Dimitrov Rob Earle Your Presenters