Building a Solid Safety Program Building a Solid Safety Program Lauro A. Garza Sr. Sr. Director, Enterprise Occupational Safety and Health August 15,

Agenda Current State of Safety at CPS Energy Safety Governance & Leadership Safety Teams and Leadership commitment Safety Activities Levels of Safety Performance Safety expectation of our Contractors / Vendors Setting standards Elements of a Best in Class Safety Program 2

Current State of Safety at CPS Energy 3 Just completed the best 2 years ever in Safety!! We have experienced a 35% reduction in injuries in 2011 & 25% in 2012 Created Sr. Level Director Position to lead corporate wide safety programs in 2011 – Created safety framework with focus on mirroring OSHA & following NESC, IEEE, ANSI & ASTM standards – Updated safety programs, procedures, handbook & recent arc flash study Executive engagement has increased We’ve cut our catastrophic injuries and events Bottom line is: fewer safety events = less folks hurt

Governance Principles It starts at the top with “real” Safety focused Senior Level Leaders Maintain a strong Union & Management relationship Processes and Procedures set up as tactical steps to ensure consistent approach to performing safe work Our philosophy of embracing OSHA & industry Safety standards Safety is our #1 Work Principle” - a part of our everyday operating procedures Subject Matter Experts (SMEs) provide safety expertise to develop front line tasks for safe results We track Safety goals, achievements, metrics, milestones at all levels of the organization down to individual goals for safety 4

Safety Teams ED/EDS/CSS/Gas/Safety Circuit Teams Managers, Supervisors, Leads, Foreman, Journeyman, Union Stewards, Union Reps, Line Managers, Ambassadors/Representatives Develops Procedures, Training, Investigations, Proactive activities, Processes, Process Improvements, Communication, Boots on the Ground Safety, Standards Enterprise Safety Network Sr. Directors, Directors, Sr. Managers, Managers, Union VP, E Board, Chief Safety Officer Transformational Projects, Cardinal Rule Development Tracking and Monitoring, Recommendations for Programs, Plans and Implementation for new and existing methods, Mouthpiece for Safety Culture, Safety Incentives and corrective action guidelines Executive Strategic Safety Council CEO, EVP’s, SVP’s, Union President, Chief Safety Officer Single Point of Contact for decision authority, Policy setting, Communications, Mouthpiece for Safety Culture, Strategic Alignment with Enterprise MVV 5

Safety Activities Centralized Safety and Health functions under new leadership & transitioned Safety Professionals to EOSH Created Safety Teams at all levels of the organization with Union representation Anyone can stop a job if they believe it to be unsafe! Measurement, Metrics, Communications: Milestones for safety projects and programs; What do you measure? Leading and Lagging indicators? Training? Engagement? Results? Benchmarking (Key to Success)!!!!!!!!!!

7 Top Management visibly committed Stand Ups & Stand Downs Involvement in sending the message and expectations Being genuine to those who work on the front line Showing up when things are going right and when not going right Management commitment provides the motivating force and resources for organizing and controlling activities within an organization

Middle Management actively involved Attend Root Cause Analysis Show up to the Safety Event scene Visibly support Safety culture Provide leadership in open discussions Know and understand Safety standards Lead by example 8

Craft workers actively participating and developing Each and everyday working to identify hazards and mitigate them Performing effective pre-job briefs Watching each others back Speaking up and even stopping the job if they feel it is unsafe Clearly and effectively communicating Employee involvement provides the means through which workers develop and express their own commitment to Safety 9

Safety Training Implement & reinforce at all levels Master Training Plan Establish minimum training for Leaders and Workers Basics, Technical, Craft, Specialized Knowledge Verification Shelf life Retraining 10

Contractors & Vendors Accountable to meet their OSHA requirements High Voltage and hazardous areas must use PPE / IPE as required by their programs (OSHA, LOTO, etc) When working in/around our work environments, need to mirror or exceed standards Must provide Safety Leadership commitment, VPP status, Policies/Procedures, Safety Records, Safety Manual & OSHA /Training logs Allow on site observations Report Safety Events to CPS Energy 11

Setting Standards Put it in writing Safety Policies, Programs, Procedures, Handbook, etc. Communicate with workers on new or updated standards Train on the importance of a strong Pre-Job Analysis and Hazard Identification Hold ourselves to standards Walk the talk 12

Conclusion The real goal is to get everyone home safe The focus is on setting standards and “execution” Constantly make everyone aware of hazards and do something to mitigate them Set the framework for your safety program Communicate, Communicate, Communicate Be engaged in Safety to protect those who serve next to us and the public! Create your Best in Class Safety Organization Safety is not just our mission, it is our calling! 13