Key Performance Indicators Stephen J. Price Division Head – System Operations September 2015

Service territory 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. 13,456 miles of distribution main & 993,522 services Approx. 1,332 Employees (535 field workforce and supervision) Approx. 180 Contractor Construction Crews Other outsourced/external partnering work: Line locating Leak survey Premise work Engineering services Integrated Supply Model Mature Damage Prevention Program 1.29 damages per 1,000 locates

Key Performance Indicators REQUIREMENTS FOR METRICS Reflect Industry Standard for Success Take the form of Balanced Scorecards, Internal Management Metrics Primary Categories Safety: Pipeline and Employee Safety Customer Service and Reliability Efficiency and Productivity Sustainability and Community Service

Benchmarking of Operators Success Indicators Operator #1 Safety: Maintaining the gas system infrastructure, including responding to gas leaks Reliability: Ensuring the safe, reliable delivery of natural gas to Georgia customers Community Service: very active in our communities, donating to energy assistance programs, contributing to nonprofit agencies, and supporting our employees' continuing volunteer efforts throughout the state. Operator #2 Safety: Maintaining the gas pipeline infrastructure Responding to and repairing gas leaks Customer Service: Providing customer service and billing customers for gas service. Offering online customer information about natural gas and gas- fueled products Community Service: Virginia Natural Gas contributes to the communities it serves through employee volunteerism and donations to energy assistance programs and nonprofit agencies.

Informal Benchmarking, con’t Operator #3 Safety: Safety & Reliability Natural gas has the best safety and reliability record of all traditional energy sources. Community Service: Operator #4 Safety Customer Service Community Service Pricing

Balanced Scorecard Approach Bridges the gap between strategy and actions Engages a broader range of users in organizational planning Reflects the most important aspects of the business. Enables organizations to clarify vision and strategy and translate them into action.

Balanced Scorecard Contains the Key Performance Indicators WGL, Holdings Approach Balanced Scorecard: Performance vs. Target Employee Safety System Safety, Pipeline Integrity (Operational) Customer Satisfaction Meter Growth Supplier Diversity Employee Engagement Community Involvement System Reliability Financial: Non-Utility Earnings, O&M/Customer, Utility ROE

Balanced Scorecard Approach, con’t. SAFETY Employee Safety Scorecard– DART Rates Maintained. Annual Targets Set. Weekly Reporting. Qtrly Scorecard Review. Internal Metrics—Drive Cam Coaching Events. Vehicle Accidents. Top At Risk Drivers. Performance Management. System Safety Pipeline Integrity Scorecard: Accelerated Replacement of At Risk Infrastructure- Implementation of Program Targets. Leak Response Times for all categories of leaks. Damage Prevention Ratio (damages/thousand locates) Internal Metrics: Leak Volumes. Grade 2 and 3 pending. Leak Repair Conducted. Audit Scores. QA/QC metrics at Supervisor level, System Reliability (outages)

Balanced Scorecard Approach, con’t. CUSTOMER SATISFACTION Scorecard: CSAT comprised of VRU, IVR, Web Survey, Customer Surveys by Mail following field based service. Weighted Metric. Internal Tracking and Reporting: Appointment Attainment, 1st call resolution, E-Service adoption, Auto Pay adoption. Employee and Contractor Satisfaction, Effort Score.

Balanced Scorecard Approach, con’t. Community Focused Supplier Diversity- Tracking MBE spend, 1st and 2d tier. Employee Engagement- Based upon Organizational Effectiveness Survey and Actions derived from results. Community Involvement- Tracks volunteer hours by Company employees and family members at Company sponsored events. Financial Meter Growth Non-Utility Earnings O&M/Customer Utility ROE

Balanced Scorecard (Excerpt of 2014 Published Scorecard Results) Target Measurement FY14 Target FY14 Actual FY14 Final Result Commentary Safe Delivery System Safety / Pipeline Integrity > 100% 105.1% n Narrative Description… Performance Improvement Construction Unit Cost Attainment < 100% 98.3% Customer Value New Meter Additions > 13,000 13,327 Customer Satisfaction > 89% 86.5% Supplier Diversity > 19.0% 22.1% Sustainability > 95% 98.4% Employer of Choice Employee Engagement > 96% 100% Community Involvement > 10,000 11,133 Reliable Supply System Reliability < 58 68.04 Meet or Exceed Goal Goal Missed

SYSTEM SAFETY/PIPELINE INTEGRITY   System Safety Pipeline Integrity FY-YTD September 13, 2015 Results System Safety/Pipeline Integrity Goal September 1-13, 2015 FY-YTD September 13, 2015 Goal Weight (i) Direct spend on replacing targeted pipe on recoverable work** 112.8% 108.6% ≥90% 30% (ii) Code 1 leak orders - within 50 minutes 97.3% 97.5% ≥97% 15% (iii) Code 2/3 leak orders - within 60/95 minutes 76.7% 73.5% ≥75% (iv) Damage Prevention Ratio (Damages/1,000 Locates) 1.32 1.35 ≤1.47 40% Total 108.4% 106.8% ≥100% 100% **September 2015 spend not yet available, using adjusted August 2015 for month and FY-YTD spend.

CEII Metrics – June 2015

Customer Satisfaction Trend

FY15 ytd reliability summary

Employee + Contractor Satisfaction

Leak Management Metrics Field Operations Weekly Call MOS Week Summary Week Ending 9/13/2015   Summary All Stations Emergency Work Week Prior Year Week % Change FYTD Prior FYTD Grade 1 & Third Party Damage 70 89 -21.3% 4795 4923 -2.6% Non-Leak Priority Dispatched 9 19 -52.6% 1069 1118 -4.4% Total Emergency Work 79 108 -26.9% 5864 6041 -2.9% Grade 2 Leaks Grade 2 Pending End of Previous Week 693 1208 -42.6% New Grade 2 Initiated 34 90 -62.2% 4048 4810 -15.8% Grade 2 Completed 74 87 -14.9% 4563 4436 2.9% Grade 2 Pending Workload 653 1211 -46.1% Grade 3 Leaks Grade 3 Pending End of Previous Week 335 1633 -79.5% New Grade 3 Initiated 18 31 -41.9% 1055 2351 -55.1% Grade 3 Completed 24 65 -63.1% 2150 1231 74.7% Grade 3 Pending Workload 329 1599 -79.4% Service Violation Inspection (SOS) SVI Work Pending End of Previous Week 36 50.0% SVI Work Initiated 5 3 66.7% 235 569 -58.7% SVI Work Completed 7 133.3% 224 752 -70.2% SVI Work Pending Workload 41.7% All data used in this report is from Work Manager

COMMENTS DISCUSSION