2013 Gaps in Energy Workforce Survey Results For CEWD Members and Survey Respondents Only Not for Distribution

What data were included?  Four key job categories more finely broken out into: lineworkers, plant/field operators, electric T& D technicians, electric T&D load dispatchers, gas T & D technicians, generation technicians and engineers  Jobs separated by Generation and Transmission & Distribution  Data on nuclear power (except for total company data) or supplemental labor are not included  Data collected on age and years of service for current employees, actual and forecasted attrition and actual and forecasted hires  Survey data collected in July-September 2013 for year-end 2012

Who participated?  The number of companies participating in the past surveys has varied. In 2013 we had: 48 Electric and Natural Gas Utilities / Energy Companies Data from NRECA on Electric Cooperatives  The number of employees represented by the data have increased: 2006 – 235,235 employees 2007 – 267,802 employees 2010 – 261,092 employees 2012 – 344,487 employees Data represent about two-thirds of all U.S. Electric and Natural Gas employees (Total US estimate is approximately 518,000 employees)

Mother Nature is still winning, but workforce efforts are paying off! 4

1.Total number of jobs is leveling off, but still fewer than Employees are continuing to age; average age has increased.  2006 – 45.7  2007 – 45.3  2010 – 46.1  2012 – Electric T & D Technicians are oldest category; lineworkers youngest. 4.Retirement wave has begun – Ready Now Percent has increased; Ready in 6-10 years has decreased. 5.Retirements forecasts are up and expected to exceed other attrition after Hiring is up significantly from 2010 survey - hiring of younger workers most evident in Lineworkers and Engineers. Preliminary Findings Represents steady state without input on Game Changers 5

 Veterans make up about 6% of respondents current workforce and roughly 6% of new hires  Use of contractors in key job categories varies widely from 5% to 60%.  Most companies have a strategic focus on diversity but rated the effectiveness of diversity initiatives at 2.8 out of 5.  Jobs becoming more critical include Cybersecurity, IT, First line supervisors, System control operators/transmission dispatchers, Power traders, Customer service, Corrosion control/pipeline inspectors Additional Questions in

Total Number of jobs is leveling off, but still fewer than All data are preliminary and still under review

Total Number of Key Jobs has decreased slightly 8

Age Distribution Total Company

Job CategoryAge 32 and UnderAge 33 – 52Age 53 and Over Engineers24%40%32% Line workers20%53%27% Gas T&D Technicians16%50%34% Electric T & D Load Dispatchers 18%53%29% Plant Operators (non-nuclear) 15%50%35% Generation Technicians (non-nuclear) 14%48%38% Electric T&D Technicians 12%48%40% Total Company16%50%34% 2012 Age Group Distribution Engineers and Lineworkers are Youngest Technicians are oldest 10

 Ready Now (2013) –Over age 63 –Over age 58 with 25 years of service  Ready in 1-5 years (2014 – 2018) –Over age 58 –Over age 53 and 21 years of service  Ready in 6-10 years (2019 – 2024) –Over age 53 –Over age 48 and 16 years of service  Retirement forecasts reduced for attrition Retirement assumptions 11

Potential Replacements by Potential Replacements Potential Replacements Job Category Potential Attrition & Retirement Estimated Number of Replacements Potential Retirement Estimated Number of Replacements Lineworkers32%24,10014%10,300 Technicians41%28,30014%10,100 Plant Operators42%14,90013%4,600 Engineers34%9,20012%2,900 Total36%76,50014%27,900 Totals exclude Nuclear

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55 % of the workforce may need to be replaced in the next 10 years 14

49% of skilled technicians and engineers may need to be replaced in the next 10 years 15

45 % of Lineworkers may need to be replaced in the next 10 years 16

54 % of Technicians may need to be replaced in the next 10 years 17

55 % of Plant / Field Operators may need to be replaced in the next 10 years 18

47 % of Engineers may need to be replaced in the next 10 years 19

24% of employees in key jobs have been in their positions between 0 and 5 years 20

20% of Electric T&D Load Dispatchers have been in their positions between 0 and 5 years 21

32% of Engineers have been in their positions between 0 and 5 years 22

23 Total Attrition vs Total Hires Total Company – Respondents Only # of Employees Chart does not include NRECA

Hiring in Key Jobs has increased 24

Replacements 25 Excludes rural electric cooperatives Year% of Attrition Replaced % % % % %

Sample Company Scorecard

Additional Charts 28

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 On average, veterans make up approximately 6% of respondents current workforce –That number varies based on job category  Veterans comprise between 3-13% of new hires Veteran Hiring 35

 Use of contractors ranged from 5% to 60%  Typical work that is contracted out includes: –Tree trimming –Generator turbine overhaul –Large gas main installation and maintenance –New capital construction –Plant outage maintenance –Smart meter installation –Underground facility locating Contractor Usage 36

 Most of the companies responding indicated that they have a strategic focus on diversity  However, the average rating on how effective their diversity initiatives are was 2.8  Pipeline organizations such as professional organizations, military and state and local workforce development are used by many of the companies Diversity 37

Companies were asked what new jobs are becoming critical in terms of difficulty in hiring, etc. –Cybersecurity / IT –1 st line supervisors –System control operators/transmission dispatchers –Power traders –Customer service –Corrosion control/pipeline inspectors New Critical Jobs 38

For more information, contact: Ann Randazzo Executive Director Center for Energy Workforce Development 701 Pennsylvania Ave., N.W. Washington, D.C