© 2013 Portland General Electric. All rights reserved. Employee Engagement in a Customer-Focused Culture 2013 Marketing Executives’ Conference October 19, 2013 Carol Dillin Vice President, Customer Strategies & Business Development

2 Portland General Electric 828,000 customers 2,600 employees Service territory population 1.7 million, 44% of state’s population 52 cities served 4,000-square-mile service area 25,600 circuit miles of T&D lines Transmission 1,600 miles Distribution 24,000 miles 2,781 MW of generation Summer peak load of 3,950 MW (2009) Winter peak load of 4,073 MW (1998)

3 The Journey Source: Market Strategies, Inc. Percent Positive Rating Year-end results except where otherwise noted. Peer utilities include: Pacific Gas & Electric Pacific Power Rocky Mountain Power Puget Sound Energy Southern Cal. Edison Seattle City Light San Diego Gas & Electric NV Energy North NV Energy South

4 Corporate Focus on Customer Satisfaction Elevate the importance of customer satisfaction at the corporate level  Added customer satisfaction metrics by market to PGE’s corporate Scorecard  Added “customer value” and key stakeholder strategies to company’s Strategic Intent  Established a customer-focused organization with residential and general business market managers

5 Promote Customer Information Established ongoing research and measurements  Market Strategies International (MSI) — Residential (quarterly); added General Business (semi-annually)  J.D. Power and Associates (JD Power) — Residential and General Business (annual)  TQS — Interviews with energy managers from Key Customer with 1+ MW (manufacturing, hospital, university) Celebrated successes with employees  Posters, communications featured employees holding JD Power award

6 Strategic Intent includes Stakeholder Strategies Customer Strategy We will power customers’ potential as the region’s trusted energy partner Employee Strategy We will engage and develop high performing, flexible employees, providing meaningful work and development opportunities to strengthen commitment CUSTOMERS EMPLOYEES SHARE- HOLDERS COMMUNITY

7 “Line of Sight” to Customer How to develop a customer-focused employee culture?  Build the business case for why customer satisfaction matters  Go from “good to great” on customer satisfaction  Create a “line-of-sight” between the employee and the customer  Launch an internal, companywide program to achieve these goals

8 Customer Focus Initiative  Launched program in 2007  Orientation for all 2,600 employees -“Line of Sight” electric cord exercise  Company-wide “Quick Hit” improvements  Created employee recognition program, Power Stars, to increase culture of telling customer stories

9 Power Stars Employee Recognition Program Foster support and showcase employees who have demonstrated excellent customer focus  Categories -Exceptional Service -Back-stage hero -Efficiency All-Star  Cash prizes, non-profit donations  Reinforce “story telling”

10 Hearing the customer’s voice Develop opportunities for all employees to hear what customers are saying on a continuous basis  “Voice of the Customer” monthly reporting program  External guest speakers at annual manager’s meeting  “Man on the Street” video [ empathy ]

11 What are customers telling us they want now?  To do business with PGE when they want, how they want  Simple, first-time resolution  Feel valued  Innovative programs, technologies and solutions  Reasonable electric prices PGE Confidential. For discussion purposes only.

12 Customer Engagement Transformation Technology Replace obsolete systems Single view of customer People Development Productivity Performance monitoring Process End-to-end automation Flexibility Speed-to-market Integrated Approach Maximizes Customer Value Satisfying service from PGE employees who resolve issues in a timely manner Cost efficiencies enabled by automation and process improvements Cross-channel information improves customer experience Innovative programs, technologies and solutions Relevant information, when customers need it, through their preferred channel Self-service transactions across multiple channels, at a higher rate than today

13 Improvements in customer operations Customer Engagement Transformation Initiative launched Changes made to improve service level at PGE’s Contact Center 62% of calls answered within 30 seconds, up from 41% as of mid

14 Creating a vision for employees Customer Engagement Transformation (CET) Vision Statement We will deliver great customer experiences and achieve world-class performance by transforming the way we engage and serve customers. This transformation – driven by improving business processes, investing in talent and leveraging technology – aligns with our strategic intent. Vision “tagline” — where we’re headed and how we’ll get there Customer Engagement Transformation Great customer experiences. Powered by you. Strengthened by technology.

15 Engaging and supporting employees through transformation  Build Change Agent Networks  Create transparency through focus groups  Survey to collect feedback and track “change saturation”  Make work fun and celebrate success!

16 Where are we today?

© 2013 Portland General Electric. All rights reserved.

18 Questions?