DriveCam Safety System Presentation to Drivers February 2010 (Wave IV)

2 DriveCam - What is it? How does it work?  A camera system that continuously records the video and audio inside and outside of a vehicle  Recordings are saved only when there is abrupt movement of the vehicle (“event”) - DriveCam captures 8 seconds prior to and 4 seconds after an event  Device can only be activated 2 ways (cannot be remotely activated) 1. Abrupt movement (three axes: forward/backward, lateral, up/down) 2. Manually activated by the driver

3 DriveCam Program Change / Event Audio  Support from all stakeholders is critical, and will improve program results, and ultimately the safety of all of our drivers.  To this end, all DriveCam events will be forwarded to our company without audio, beginning on Monday, January 25th. The sound can be restored when an event is downloaded and saved.  The audio will be restored by coaches, if the event meets at least one of the following criteria:  Any collision regardless of fault, including any time a Company vehicle strikes or is struck by another vehicle, any object, pedestrian, etc.;  Any possible collision as categorized by DriveCam because they need driver/coach review and input to make a final determination;  Any case where a Company employee advises their coach that they have voluntarily & deliberately set off the DriveCam device by hitting the button (“Manual” event) in order to capture events or activity for any reason, including but not limited to protecting them against danger; or  Any event with potential to result in civil liability, third-party action or criminal action against the Company or an individual, e.g. police investigation, request from our legal department or an external party.

4 DriveCam - Why?  DriveCam is a safety system that mitigates risk by improving driver behavior and assessing liability in collisions  Helps employees by identifying and changing poor driving habits as well as reinforcing good driving habits  Reduces vehicle damages, workers’ compensation and personal injury costs Disproves false statements & blame (internally & from public claims)  Supports National Grid safety culture  One Company, One Way – consistent message regarding safety  Comprehensive approach to injuries and liability

5 DriveCam – Who? Where? When? o Install DriveCam in all USGDx field force & 1 st line supervisor vehicles (excluding special purpose vehicles such as digging equipment & trailers) o 90-day Pilot, Sept – Dec 2008 (Wave 1)  Providence, RI and Canarsie, NY yards  275 field and supervisor vehicles o Findings from 1,547 events  10 events were road traffic collisions  60 were near collisions (51 avoidable)  65% of events triggered by hard braking and 27% by uneven surfaces accompanied by a risky behavior or violation  18 drivers triggered 26% of the events  Identified infractions (risky behaviors) to driving fundamentals: – Driver unbelted (47%) – Following too closely (20%) – Traffic violation (12%)

6 DriveCam – Who? Where? When?  Wave 2 included a total of eight locations which comprised about 1/3 of the USGDx fleet and account for about 1/2 of the reported RTAs in FY2009 through the end of January Selection criteria included percentage of USGDx RTAs and accident-to-vehicle ratio Cross-section of regions, local unions and vehicle types Wave 2 Go Live June 2009  Wave 3 targets selected based on same criteria and include 8 additional yards (Bellmore, Roslyn, Buffalo, Cumberland, No Kingstown, Amesbury, Lowell, Malden Gas  Wave 3 Go Live Dec 2009 and Jan 2010

7 Benefits  To our employees  Reduces probability of injuries to employee and public  Reduces lost time  Provides visibility to poor driving practices; supports focused corrective actions  Disproves false statements & blame (internally & from public claims)  To our company  Focuses training & resources on the real problems  Reduces vehicle damage repairs  Reduces worker’s compensation  Reduces personal injury claims (medical & legal)

8 The Safety Imperative  651 RTAs DriveCam Pilot FindingsFY08/09  11 LTIs in in 7 employees!  1 pedestrian FY07/08  671 RTAs  1 pedestrian  47% of drivers with events were not wearing seat belts  60 near collisions  Potentials w/pedestrians  Nationally, 63% of people killed in auto accidents were not wearing seatbelts  Lack of seat belts contributes to more fatalities than any other single safety- related behavior  10 RTAs

9 DriveCam Experience to Date  A high incidence of traffic violations, and unbelted driving  For most drivers, coaching & training have led to improvements  Yet 10% of drivers are consistently responsible for at least 30% of the risk  DriveCam has shown skillful driving – at least two alert drivers avoided children darting into the street  DriveCam has captured a life saved by two of our employees  DriveCam has proven no fault in situations where the driver was falsely accused  DriveCam video has caught a thief in action

10 What To Expect  Your supervisor will review events with you  You will have the opportunity to observe the recorded event and provide feedback  Confidentiality  Your supervisor will coach you on the ways in which you can reduce risky driving behaviors  The goal is to change risky behaviors, improving the overall safety of the driver, not to discipline  If coaching and/or training is not effective, the Company reserves the right to take disciplinary action  Interfering in anyway with the operation of DriveCam will result in progressive discipline, up to and including suspension

11 DriveCam – Questions