VP – Safety & Loss Prevention Quad States Conference June 2016 Corey Parr VP – Safety & Loss Prevention

Loss Control Contribution ( 10 yr. $26,673,017) Every year Federated continues to invest in the future of cooperatives by setting aside a portion of our member’s premiums to be returned to statewide associations in support of the safety and training programs provided. The total we are returning this year is $3.1 million to the Statewide Associations in support of their safety efforts on behalf of our members.

Claim Counts More great news! 2015 proved to be another great year. We simply can’t thank you enough for all of your efforts to continue to reduce incidents and accidents at your systems. 2015 numbers represent a 28% reduction in claim counts since 2007! Not only do these reductions result in fewer injuries and saved lives, but they also translate into some real, tangible financial benefits for all of our members.

Nationwide 5 yr. Public Contacts

Nationwide 2015 Public Contacts

General Liability Analysis

Loss Trend Analysis

Auto Loss Trend Analysis

5 yr. Employee Incidents

2015 Employee Incidents

Loss Trend Analysis WC

TCIR

DART

LWDR

Federated Near-Miss Procedures To report a Near-Miss there no login credentials needed, only to visit the Federated website. Near-Miss reports can be entered through a link on the Safety & Loss prevention page. The entire process can be completed in 2 minutes. The only identifying question that must be answered is what state the incident occurred. After the state is entered the next question ask for cooperative name or if the individual wants to stay anonymous.

Federated Near-Miss Procedures Near-Misses are reviewed by Federated staff & reports are updated monthly. All reports are reviewed and cleaned of any irrelevant information or data that would identify individuals or individual Cooperatives. If a Cooperative is Identified, Federated Staff will contact the Cooperative (CEO, Ops Manager, Safety Contact) to insure they are aware of the incident. We are currently working on a report function that will allow members to search the data for possible trends.

Federated Near-Miss Procedures Reports are put together an a link is sent to each Cooperative GM/CEO and Statewide JT&S Managers. The information shared is a brief summary of the incident, corrective actions taken if noted, and obvious corrective measures. Statewide JT&S Managers are informed of the incidents reported in the state they serve. This will identify trends and the need for training.

Near Miss Reporting To close, I’d like to highlight one additional new program that Federated launched this past September. Phil talks about our claim counts declining, as I showed you earlier. However, he is constantly looking for ways to improve on these reductions even more. We all know about the incidents and accidents that happen. They are typically reported to us as claims, which allows us to summarize and use this information to learn from. However, a bigger, more elusive piece of this puzzle are those incidents that don’t turn into an actual claim. Those near-misses that happen every day and may not get reported to anyone. How do we learn from those? We’re hoping that through this near-miss program, our employees will have the opportunity to either report anonymously or with full disclosure those near-misses that they experience. Our goal is to provide this information back in summary form to our members and statewide organizations across the country to assist them in better guiding their employee safety training efforts. If you already have a near-miss reporting program at your system, we encourage you to keep doing what you are doing, with one additional step…whoever is responsible for tracking this information at your system, if they could also enter this information on Federated’s website, that would allow us to share this information with the rest of our members making an even greater impact. Anything we can do to make sure our employees and our members go home safely to their families every night is what these efforts are all about.

Reviewing the Near-Miss Report At this time you can find the Near-Miss reports on the Safety & Loss Prevention page of the site. The report is located in the forms section at this point but will move to the center of the page in the near future.

Near-Miss

Near-Miss

Near-Miss

Near-Miss

Near-Miss

Employee Contacts 2014-2015 2014 = 22 contacts 2015 = 21 contacts 11 burns/8 shocks/1 fatality 2015 = 21 contacts 8 burns/11 shocks/1 fatality

Employee Age & Experience Average age of employee 40.34 Average years of service 15.1

Hours Contacts Occurred 7am – 11:59am 19 Noon – 6:00pm 20 Overtime 2

Contact Type OHD Primary 12 OHD Secondary 7 URD Primary 3 URD Secondary 2 SS primary 3 Transmission 2 Lightning 2

Month of the Year January 0 February 3 March 4 April 4 May 1 June 5 July 11 August 4 September 3 October 5 November 3 December 0

Day of the Week Sunday 0 Monday 6 Tuesday 13 Wednesday 10 Thursday 8 Friday 5 Saturday 1

Job Classification Lineman 27 Apprentice 2 Foreman 4 Serviceman 6 Ops Manager 1

Type of work Maintenance 19 Outage 17 Construction 5

Contact Type OHD Primary 12 OHD Secondary 7 URD Primary 3 URD Secondary 2 SS primary 3 Transmission 2 Lightning 2

Notes From Investigations Comment from employee making contact 7 stated they “thought the line was dead”. Comment from crew leader when asked about accident that happened on the job site 7 crew leaders stated “I didn’t see it”.

Cyber Liability Coverage NOW AVAILABLE Cyber Liability Coverage Some of the coverages that are included: Transmission of malicious software or viruses Privacy or security breaches Including notification and credit monitoring expenses Regulatory fines and penalties associated with a breach Liability coverage related to electric utility operations Data restoration, cyber extortion and cyber terrorism Launched October 2015. Only a handful of North Dakota members have obtained a quote to date. I strongly encourage you to touch base with your Account Executive Dave Noess to talk more about this important coverage. Even carrying minimal limits provides you with access to cyber specialists that you wouldn’t otherwise have access to in the event you do have a breach. Forms and rates have recently been approved!

Thank You and Be Safe!