1. Citizens’ Academy Kathy Viehe GRU Interim General Manager April 15, 2015

2. The Basics  GRU is a multi-service, community- owned utility providing electric, water, wastewater, natural gas and telecommunications services  Mission: To provide safe, reliable, competitively priced utility services in an environmentally responsible manner to enhance the quality of life in our community  Core Business Values: Delivering Customer Value through Safety, Efficiency, Environmental Responsibility and Professionalism

3. 3 Measures of Success  Service reliability compares well  Safe drinking water  Responsive to customers – local call center, employees live here  Natural gas rates among lowest in the state  Electric rates are high, but aggressively pursuing cost reductions and revenue enhancement  Excellent financial standing

4. 4 GRU is a Big Business  $413 million annual operating budget  $1.6 billion in assets  $948 million outstanding debt  Typical for a generating/multi-service utility  Among the highest bond ratings for municipal utilities from Fitch, Standard & Poor’s, and Moody’s

5. The Challenge: Electric Rates

6. How Did We Get Here?  Lower-than-forecast customer growth  Lower-than-forecast electric sales  Loss of wholesale sales  Seminole contract  Market sales  Lower energy use in Florida and nationally 6

7. How Did We Get Here?  Customer conservation combined with GRU conservation programs  Federal standards improving appliance efficiency and state building codes  Addition of distributed generation (Solar Net Metering)  Loss of Business Partners’ Rate discount  Increased expenses (O&M, personnel)  Integration of new generation (GREC PPA)

8. Electric Sales (MWh)

9. O&M Expenses: Past 10 Years

10. 2015 Business Plan  Focuses on three key areas:  Maintaining our financial strength  Providing excellent service  Developing engaged and proficient employees  Major focus on cost containment and increasing revenues  South Energy Center expansion  Wholesale sales  Providing new services/products to customers 10

12. Hot Topics  EPA regulation of carbon dioxide  Managing water resources  Regulatory compliance with wastewater standards  General manager search

13. Carbon Regulation  EPA’s proposed “Clean Power Plan” calls for Florida utilities to reduce carbon emissions by 38 percent by 2030  Concerns among municipal utilities:  Technical issues  No credit for previous efficiency and emission control upgrades  Potential effect on customer bills  GRU is tracking the policy’s progress and working with other utilities to express concerns

14. Water Management Consumptive Use Permit  20-year permit approved in September authorizing groundwater withdrawals up to 30 mgd, which is the same amount permitted since 2009  Project 25 percent increase in customers over this period  Groundwater withdrawals mitigated due to customer conservation efforts, increased use of reclaimed water and aquifer recharge projects

15. Wastewater Regulatory Compliance Biosolids Recycling  Currently converted into fertilizer and applied to a local farm to supplement farming needs  Estimated cost of $23 million to change disposal method to comply with regulations  Dewatering facility under construction

16. General Manager Search  City Commission interviewed six candidates in late March  Pool narrowed to three finalists during April 2 Commission meeting  Discussions will continue April 16 16

17. UF Energy Supply  GRU provides water and natural gas service to UF  Also provides electricity off- campus, making UF one of our largest customers  UF’s steam agreement with Duke Energy expires soon  GRU stands ready to assist UF with its on-campus electrical needs

18. Employee Recruitment & Retention  Currently more than 800 GRU employees  Challenges:  Many experienced, long-term employees set to retire  Lack of depth in workforce; expectation to do more with less  Goal:  Develop and implement ongoing succession-planning process to address current and future talent needs in order to continue providing safe, reliable service for our customers 18

19. The GRU Bill  Can include the following utility services:  Electric  Water  Wastewater  Natural gas  Also can include City of Gainesville services:  Stormwater  Garbage/refuse  The quiz: How many kWh did you use last month?  Know your bill

20. Join Our Advisory Committee  New advisory committee to help GRU with customer communication efforts  Accepting applications  Sign up at gru.com/ccag 20

21. Employees: The Core of Our Business  “I AM GRU” campaign introduces the community to one of our biggest assets – our employees  Promotes GRU services while encouraging two-way communication  Addresses four Business Plan priorities: improve customer trust, adapt to customers’ changing demands, reduce electric system revenue requirements and improve employee engagement

22. Questions?