Rick Legleitner, Manager Employee Development & Skilling Count on Us Michigan Utility Industry Workforce Development Rick Legleitner, Manager Employee Development & Skilling

Consumers Energy Electric & Gas Service Area

Consumes Energy Gas Statistics

Consumers Energy Electric Statistics

Gas / Electric / Combination

Service & Training Centers

ISSUE Diminishing internal OM&C (Operations, Maintenance and Construction) workforce 47% of Consumers Energy workforce is OM&C 50% retirements over 5 year time period Diminishing resource pool Identified the need to construct a larger, competent and diverse external workforce resource pool Insert table from CEWD Website

Utility Industry Retirement Forecast

Context, Importance, & Consequences Regulated by MPSC (Michigan Public Service Commission) and Michigan Gas Safety Code Maintain reliable and safe operating facilities and infrastructure Requires a competent and productive workforce Incompetent and unproductive workforce On-going equipment failures Public safety issues Unreliable energy sources Consequences Negatively impact Michigan’s economy Put public safety at risk Regional power outages beyond Michigan’s borders

CEWD Competency Model

MI Consortium Competency Model Identify core competencies needed for training Employers complete Job Task Analysis (JTA) for desired job classifications / segments Inventory education and training programs that meet the core competencies Consortium industry member agreement to accept training from programs that meet the core competencies

Action Plan Senior management work with union to establish agreement Establish articulation agreements with select community colleges Provide internal training materials and resources Provide workforce forecast model and anticipated failure rate Provide subsequent timeframe required to internally complete apprenticeship training Senior management work with union to establish agreement Allow external / community college trained candidate to enter company apprentice training program Reduces total internal training time by one year Addresses immediate need to mitigate the anticipated near term retirement challenge Reduces total training costs for the company

Results Articulation agreements established with community colleges Community college programs implemented Senior management established an agreement for graduates to enter company apprenticeship program

Outcomes Intended Unintended Access to a competent pool of new employees Unintended National economic crash Michigan still not recovered Reduced new business construction for Michigan utilities The pace of OM&C retirements has slowed Community college programs now producing graduates that do not have jobs to go to upon graduation.

New Business Gas Overall gas installs decreased by 24% from 2008 to 2010 Gas installs decreased by 28% from 2008 to 2009 Gas installs increased 6% from 2009 to 2010 Electric Overall electric installs decreased 33% from 2008 to 2010 Electric installs decreased 30% from 2008 to 2009 Electric installs decreased 5% from 2009 to 2010

Review of Outcomes Cost advantages of external programs Access to external employee pool Gained valuable experience in designing and implementing articulation agreements Community college establish these programs within their industry certificate program area, instead of the academic program queue Community colleges must be careful not to intentionally or unintentionally make employment promises

Subsequent Plan Community college utility programs offered in 2011 Status quo or slight increase Build off of core curriculum

Michigan Utility Workforce Development Community College Network DELEG Michigan Utility Industry Pool of Diverse Qualified Individuals