Bandera Electric Cooperative

 Members – 23,865  Meters – 31,678  Miles of line – 4,385  Serve Bandera, Bexar, Kendall, Kerr, Medina, Real and Uvalde counties

Moving employees from a ‘have to’ to a ‘want to’ mentality  First reaction is… Belittling, what went wrong, who is at fault, hear negativity and get ready to defend, justify and explain Must create higher levels of ownership and joint accountability for achieving organization wide key results The ORGANIZATION, The PEOPLE, The WORK The ORGANIZATION  Direction – Strategic vision, mission, organizational structure, goals  Systems – Planning & policies, information systems, budgeting, monitoring  Results – Success measures, profitability, competition, requests of members The PEOPLE  Values and Beliefs – What is ideal, expectations, policies  Leadership and Management – Practices and behaviors, selection, development, promotion, reward and recognition, skills, knowledge, motivation and feedback Productivity – Performance management, talent assessment, performance levels, morale, loyalty and commitment, business awareness, continuous improvement

The WORK  Resources – Workload, schedules, tools, equipment environment  The Methods – Work processes, how to handle mistakes  Member Products and Services - Member satisfaction, quality, quantity of service

 Member expectations have changed ◦ NRECA Innovative Energy Strategies – A plan to Put Members First in a rapidly changing energy landscape, dated February 3, 2010  Change is external, transition is internal  Nine key issue areas to address in order to help cooperatives develop and implement a plan 1.Member Expectations and Relationship Management – Educating Boards 2.Energy Partners Information Network – NRECA become an energy information and intelligence clearing house 3.Leadership Development – Training – “commitment to excellence” at every level of governance and management

 Nine key issue areas (Continued) 4. Raising the Bar for Operations and Workforce Development – Recruit, educate, train, compensate, and retain a qualified workforce 5.External Influences – (Politics) Educate members and activate community grassroots 6.Future Energy Security – Development of a comprehensive10- year energy action plan 7.Financial Planning and Innovation – Benchmarks, economies of scale 8.Environmental Stewardship – Enough said 9.Even More “Cooperation Among Cooperatives” – Develop standards in operations, purchasing, marketing TRAINING & EDUCATION

 We are true to the 7 Cooperative Principles and we are: ◦ More strategic and less operational ◦ More goal oriented ◦ More employee accountability – project management, creativity and innovation ◦ More open and honest communication ◦ More and higher than industry averages for excellence ◦ More contractor accountability ◦ More employee growth and development ◦ More reliability on technology ◦ More SAFETY conscious ◦ Better Board Education and by-in ◦ Better Member Communication ◦ Better Employee Productivity ◦ Better Corporate Citizen ◦ Better Evaluation Processes

 Board Perspective ◦ Strategic Planning, Vision, MissionDiscipline & Return to Work Policies ◦ Long-range Financial OutlookTechnology Plan ◦ Distributed Generation TariffNew Line Extension Tariff  Management Perspective ◦ Outsourced Supply ChainMember Survey – ACSI qualified ◦ Created the BEAA & TMT TeamsEAP Program ◦ KPI’sIncreased Employee Training ◦ Safety AccreditationCycle billing & Ebilling ◦ Succession PlanningImproved ROW Management Process ◦ Redesigned Incentive PayEmployee Recruitment, Development, ◦ Number of ReorganizationsEducation and Retention Plan ◦ Full time HR StaffABC Accounting  Member Advocacy CommitteeAll Employee Survey  User Friendly Website Member Portal  System Control CenterEmployee Training Programs (Merchant)  Technology - IVR, PBX, OMS, AMI, GIS, AS  Joint Use evaluationAnnual Salary Survey  Evaluation Process – 360’sDepartmental Business Plans Deliver what Members don’t know they want.

 Texts to members regarding outages (updates and information)  Budget alerts to help them stay on track with their bill  Time of use rates  Prepaid service  Mobile Work Force