Current Trends in Retail Service Quality W. J. Schweiger 1

“We are in the Business of Serving our Customers Well” NSTAR’s Mission… “We are in the Business of Serving our Customers Well” 2

Success will be achieved by providing… Dependable Service Urgency in Restoration Response Prompt and Accurate Information about System Conditions Accurate Metering and Billing 3

For NSTAR’s Employees… “It starts with Us” Working Productively and Safely Teamwork and Customer Focus Mutual Trust and Respect Diversity Two-way Communication Ownership and Accountability Restructuring of Operations to Better Support and Respond to the Needs of Our Customers 4

Our Strategy is to… Improve Customer Service Create a Performance Driven Culture Achieve Maximum Efficiency in Operations 5

We’re on the Path to Success… Performance Measures Operate and Exceed the standards of performance Track performance against standards. Metrics, Metrics, Metrics……… Drive Leadership Behaviors Support the organization with programs that facilitate learning and development and reinforce our commitment to diversity Communications All Around Communicate to constituencies 6

What Does It Mean to Serve our Electric Customers Well? 7

What Does It Mean to Service our Electric Customers Well? Dependable Service Urgency in Response Prompt and Accurate Information on System Conditions Timely Response to Customer Inquiry 8

Dependable Service… the lights don’t go out Achieve Top Quartile Performance for System Reliability Approximately 90 projects, in 35 communities targeted for June 1, 2002 completion Reliability Improvement Projects, including: Conversion of 4kV open loop system Replacement of wire, cable, and switchgear Upgrading of system control and protection equipment Capacity Enhancement Projects Vegetation Management 9

Basic Premise ……… Good Service Back To The Basics O&M Means… Operate and Maintain Capital Work Plan Plan Schedule Execute Basic Premise ……… Good Service 10

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Urgency in Restoration Response…if the lights go out, the entire organization is charged with rapid restoral Achieve Top Quartile Performance in Customer Restoration Restoration Summer Preparedness and Contingency Planning Improve Dispatch and First Response Improvements in Restoration Process Enhanced deployment of distribution automation and the role of technology in service restoral First Response Is Restoration 13

Prompt and Accurate Information About System Conditions… Establish linkage between the operation of the system and the customer Keep the customer informed Why are the lights out? When will service be restored? 14

The Role of Technology… GIS initiatives in Gas & Electric “State-of-the-Art” Outage Management System Establishment of standards for outage restoral Distribution Automation Rollout of mobile data terminals & technology in the field Call Handling Billing Outage response & customer communication 15

Outage Call Process CUSTOMER CALL OUTAGE ANALYSIS & DISPATCH CUSTOMER ELECTRONIC BULLETIN BOARD 16

Prompt and Accurate Information to Customers Increasing Call Answer Rate Providing Prompt Information to Customer Inquiries Prompt Area-specific Messages to be posted for our Customers DTE Outage Reporting Protocol Notification to Regulators & Municipal Officials 17

Summary… Enhanced focus on performance & quality of service Utilize SQI as the framework for a performance based culture Role of technology Call handling Billing Outage response & customer communication Incorporate Safety in all our performance 18

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