1. OPPD Listens Future Generation and Supply Resource Options Timothy J. Burke, Vice President, Customer Service and Public Affairs, OPPD 1

2. The Stakeholder Process

3. The Schedule 3

4. The Process 4 OPPD’s mission is to provide affordable, reliable and environmentally sensitive energy service to our customers.

5. Privileged and Confidential Phase 1 – Information Gathering 14 Open Houses/Community Outreach across service territory On-line and in-person comment form Engaged customers through social media and website through OPPDListens.com Education about the power industry

6. Privileged and Confidential Phase 1 – What We Heard Top 5 Comment Trends Positive feedback for the OPPD stakeholder process Support for general renewables Advocates for solar energy Interest in incentive programs Proponents of energy-efficiency and conservation programs

7. Privileged and Confidential Phase 2 – Market Research Qualitative and Quantitative Research conducted by industry leader – Market Strategies International 8 residential and 1 commercial industrial focus groups (Qualitative) Sought impressions of 15 portfolio options On-line Survey (Quantitative) A statistically representative random sample of OPPD customers

8. Survey Methodology  Online survey  Data collection 3/31 - 4/6  Over 400 surveys collected across OPPD territory  Questions focused on trade-offs of economic, environment, cost and risk attributes Focus Groups Methodology  In-person focus groups 8 residential focus groups 1 commercial/industrial focus group  Conducted focus groups 4/1 – 4/3  Discussion focused on trade-offs of resources attributes; Resource Options were presented for evaluation Phase 2: Market Research Approach © Market Strategies International 2014 All rights and information reserved

9.  Each respondent is shown 16 pairs of scenarios, each systematically rotated (A-B, B-C, C-A, etc.). In 16 pairs, each respondent sees each scenario twice.  By having customers make trade-offs, a value is assigned for each scenario for each respondent that indicates both the relative rank order and the strength of their preference. Phase 2: Survey Trade-Off Analysis © Market Strategies International 2014 All rights and information reserved

10. Privileged and Confidential Phase 2 – What We Heard Five resource options surfaced by the customers. All five options capture the community’s preferences for: Affordability Renewable features Reduction in conventional emissions and greenhouse gases Customer energy-efficiency programs

11. Privileged and Confidential Phase 3 – Moderated Public Forum Forum was streamed live to locations throughout the district The goals of the panel were: Report back what was heard in Phase 1 & 2 Present the customer preferred options Give the public the opportunity to clarify questions and provide feedback

12. Stakeholders trust OPPD to make the right decisions They want electricity to be affordable, but willing to pay slightly more for: –Additional Demand-Side Management Programs –Additional reductions in environmental emissions –Low tipping point on bill increases They were not in favor of short-term retrofitting or refueling of a facility if it is uneconomic in a short timeframe after work is completed. Stakeholder process showed that customer expectation is aligned with OPPD’s mission statement Stakeholder Summary

13. Phase 2: Provided Reaction to Resource Option Attributes All rights and information reserved

14. Phase 2: Survey Trade-Off Analysis (cont’d) = Current plan © Market Strategies International 2014 All rights and information reserved

15. = Current plan © Market Strategies International 2014 All rights and information reserved Phase 2: Survey Trade-Off Analysis (cont’d)

16. = Current plan © Market Strategies International 2014 All rights and information reserved Phase 2: Survey Trade-Off Analysis (cont’d)

17. = Current plan © Market Strategies International 2014 All rights and information reserved Phase 2: Survey Trade-Off Analysis (cont’d)

18. Privileged and Confidential

19. Thoroughly evaluated feasible options Listened to and considered stakeholder input Aligned option with mission Provide affordable, reliable and environmentally sensitive energy services to our customers Provided Board with a fair, equitable and informed recommendation