Gas operations leadership development program (GOLD) Mark Lowe, Vice President, Gas Supply Operations and Engineering July 26, 2016

Washington Gas OVERVIEW Chartered in 1848 Franchise area covers 6,213 square miles Distribution system in District of Columbia, Maryland and Virginia Over 1.1 million customers Approx. 13,500 miles of distribution main & 998,800 services Approx. 1,600 Employees Approx. 1,800 Contractor Personnel Construction Line locating Leak survey Premise work

System Growth over the Years Green – until 1969 Red – 1970 – 1979 Green – until 1979 Red – 1980 – 1989 Green – until 1989 Red – 1990 – 1999 Green – until 1999 Red – 2000 – Today Green – until 1959 Red – 1960 – 1969 Green – until 1939 Red – 1940 – 1949 Red – Until 1879 Green – until 1879 Red – 1880 – 1899 Green – until 1899 Red – 1900 – 1929 Green – until 1929 Red – 1930 – 1939 Green – until 1949 Red – 1950 – 1959

Workforce challenges Hiring Pressures Growth, particularly related to accelerated pipe replacement programs Creates Need for Additional Contractor Crews and Washington Gas Employees Employees retiring: in the next five years, over 40% of our employees are eligible for retirement Hiring has more than doubled in the last five years Unemployment in the DC area is low Finding qualified and interested applicants is taxing Contractors are also having a difficult time finding qualified employees Need to Shorten the Learning Curve in Technical and Leadership Skills Losing experienced, long-tenured employees New employees being promoted more quickly Jobs at all levels require more skills More diverse workforce (generational, gender, race/ethnicity, age) creates team and leadership complexity

Focus on Operations’ supervisors Critical positions 60% eligible to retire Knowledge and experience gaps between tenured supervisors and the pipeline to replace them Difficulty attracting the best candidates into supervisory positions Employees didn’t feel prepared for the jump to supervisor Employees felt there was a lack of support once promoted “sink or swim” One of the most critical roles that is ‘at risk” is the supervisor role in Operations. These include field operations, gas supply operations and construction. The number of supervisors who are eligible to retire is aprox 60%. We recognized this as one of our highest workforce risks in 2008; we held focus groups with employees and supervisors and asked them what we could do to make the supervisors’ role more attractive.

Gas Operations’ leadership development (GOLD) program In August 2009, we launched the first GOLD program, as a “supervisors’ pipeline” GOLD is 12-month cohort program Structured Learning plan includes classroom and on-the-job components Technical training classes are developed and delivered by the WGL technical training team Leadership Development and other programs (i.e., computer skills, time management) are facilitated by the WGL L & D team and local community college We added “specialist” level positions, management positions, but, not supervisory. While participants in the program could apply for a supervisor position at any time during the program, they remained in the program for the full year. Most classes have been 8-11 participants. We also allow those not in the program to attend specific sessions. (for example: we have had some engineers attend some of the technical training classes)

Gas Operations’ leadership development (GOLD) program Our 6th class graduates August 18, 2016 On that date, we will have graduated 62 participants 80% have been promoted One union employee who was in the 1st class in 2009 is now a station manager Our 7th class begins August 15, 2016 with 16 participants. For the class beginning in August 2016, we had 63 internal applicants and 75 external applicants for the 16 openings When we started the program, we had to actively solicit participants. Now, we have far more qualified applicants than we have openings. Of the 63 internal applicants, we hired 8; we hired 7 of the 75 external applicants. We are actively trying to hire external candidates for these roles so we don’t deplete our senior technician and crew leader ranks. 12 construction, 3 field ops, 1 gas supply ops

Summary Crew leader development program (CLDP) The WGL GOLD program is an important piece of a larger strategy to accelerate learning in Operations’ leadership roles Crew leader development program (CLDP) Started the program in 2010 18-month program Prepares employees to move into a crew leader positions; periodic assessments along the way include promotions and pay increases Internal candidates; union-eligible position Service technician development program (STDP) Started the program in 2012 24-month program Prepares employees to move into a service technician positions; periodic assessments along the way include promotions and pay increases Senior technician and crew leader roles also have a high level of retirement eligible employees. We have developed programs to support accelerated learning for those roles, too. These programs also include structured on-the-job and classroom training.

QUESTIONS? Dori Ramsey, Director Organization Effectiveness: dramsey@washgas.com; 703-750-4765 Stephanie Briggs, Manager Talent Acquisition & Development, sbriggs@washgas.com, 703-750-5919