Operator Qualification & Training Best Practices Roundtable Presentation

1. Operator Qualification & Training Best Practices Roundtable Presentation Minnesota Energy Resources Danny Quint Compliance Supervisor 651-322-8926 dlquint@minnesotaenergyresources.com October 2-4, 2012

2. TRAINING IN TRANSITION

3. Number of Customers = 209,742 • Miles of Main = 4,445 • Number of Services = 202,148 • Number of Employees = • 215 Total Employees

4. Operator Qualification & Training Overview • 177 Front-line Employees & 7 Field Operations Supervisors • 2640 Learning Management System Modules Completed • 680 Hands-on Performance Evaluations • 904 hours - Construction Training (61 employees) • 500 hours – Miscellaneous Training

5. Operator Qualification & Training Overview-2 • New Employee Training • 384 hours - Basic Gas Distribution Operations (12 employees) • 228 hours - Intermediate Gas Distribution Operations (12 employees) • 68 hours-Temporary Seasonal Meter Painters (17 employees)

6. Operator Qualification & Training Challenges • Challenge #1 – Geographically dispersed workgroup; unable to bring all employees to a common training location

7. Number of Communities Served = 165 • 5 Take-off Points Off 5 Different Transmission Line Companies

8. How Do We Meet The Challenge? • Utilize front-line employee field trainers to administer the training to local workgroups • Training provided to field trainers

9. Operator Qualification & Training Challenges • Challenge #2 – Limited training personnel

10. How Do We Meet The Challenge? • Use OQ subject matter experts to augment training • Development of a mentor program for new employees • Utilize online training courses

11. Operator Qualification & Training Challenges • Challenge #3 – Dual business models – Regulated and Non-regulated

12. How Do We Meet The Challenge? • Carefully schedule regulated training along with non-regulated training, • while working to ensure customer satisfaction

13. Operator Qualification & Training Challenges • Challenge #4 – Construction completed by third party contractor

14. How Do We Meet The Challenge? • Mandated regulatory auditing requirements • Conduct specialized construction auditing training • Utilize 5 OQ subject matter experts

15. Operator Qualification & Training Challenges • Challenge #5 – Mergers & acquisitions

16. How Do We Meet The Challenge? • Required additional training positions and • an updated training plan • Remain flexible

17. New Employee Training Process • Training Progression Guide • Leadership Involvement • Qualification Timeline • Formalized Hands-on • Mentor Program • Basic Gas Distribution Operations-32 hr. • Intermediate Gas Distribution Operations-24 hr.

18. Existing Employee Training Process • All Existing Field Employees Involved • Qualification Timeline • Classroom Delivery

19. Safety Improvements Realized • Improved emphasis on safety during all training sessions • Improvement in company safety culture

20. Conclusion • Challenges bring new ideas and ways of doing things

21. QUESTIONS Minnesota Energy Resources Danny Quint Compliance Supervisor 651-322-8926 dlquint@minnesotaenergyresources.com