1. Consumers Energy’s Engineering Entry Program
Holly Bowers
Executive Director of Geospatial and Gas Asset Management
May 20, 2015

2. Consumers Energy Founded in 1886 in Jackson, MI
Still home to our corporate headquarters
7,369 employees in 2014
Additional ̴̴7,500 contractors
$7.2 billion in operating revenue
Consumers Energy is the nation’s fourth largest combination utility.
We operate and maintain more than 26,000 miles of gas distribution pipeline and 65,000 miles of electric distribution lines.
We have 5,984 megawatts of generating capacity fueled by coal, oil, natural gas, hydro and wind.
We serve 6.5 million customers in all 68 counties in the state’s Lower Peninsula.
Largest utility by area, 2nd in MW
WORKING TO DELIVER THE ENERGY YOU NEED, WHENEVER YOU NEED IT.
THAT’S OUR PROMISE TO MICHIGAN!

3. Consumers Energy’s Natural Gas System
1.7 Million Customers
Nearly 27,000 Miles of Distribution Main
2,467 Miles of Transmission Pipeline
Provider
7 Compressor Stations
17 Storage Fields
WORKING TO DELIVER THE ENERGY YOU NEED, WHENEVER YOU NEED IT.

4. Consumers Energy’s Electric System
1.8 Million Customers
66,000 miles of low-voltage distribution
Provider
4,600 miles of high-voltage distribution
High Voltage Distribution
Generating Fleet
4 fossil fuel plants
13 hydroelectric facilities
Several natural gas “peaker” plants
To understand what we do to restore power, it helps to have a framework for how we deliver power to our 1.8 million electric customers
To meet our customers’ needs, we generate power from four fossil-fuel generating plants, 13 hydroelectric facilities and several natural gas-fired facilities that provide electricity during times of peak demand.
We also purchase power from a number of sources, including a nuclear plant and the gas-fired Midland Cogeneration Venture.
This power is sent through:
more than 4,600 miles of high-voltage distribution power lines
another 66,000 miles of electric distribution lines to customers
If laid end to end, these lines would wrap around the earth over 2 ½ times
(Earth's Circumference at the Equator: 24, miles)
Low Voltage Distribution
WORKING TO DELIVER THE ENERGY YOU NEED, WHENEVER YOU NEED IT.

5. EEP Program Overview and History
Images – New Engineer provisioned equipment then and now
History
Rotational Engineering Program has existed on and off for nearly 30 years
Poor financial years created a large gap in work force age
Recognized need to quickly develop broad background to step in to leadership roles
Historically, both Gas and Electric had their own program
Current version established In 2012
Merged Gas and Electric program
Added Generation engineering in 2013
Allows for some cross-training – i.e. Gas EEPs sometimes rotate through Generation or in Electric
Today it is:
2-year rotational program, focusing on developing engineering leaders
4 Rotations, each 6 months in duration
Learning Experience checklist to ensure exposure to areas outside of rotations
Mentor assigned to each EEP Engineer at on-boarding
Semi-annual conferences to bring all EEPs and mentors together
Governed by cross-functional EEP Council
Gas, Electric and Generation all under same program
EEP Program Objectives
• Build a pipeline of entry-level engineering talent to source engineering positions within the Energy Delivery and Energy Supply.
• Create positive early-career positional and functional experiences to improve engineering retention.
• Attract a diverse pool of recent engineering graduates to join Consumers Energy.
• Develop new engineers for later-career experiences in more technical or managerial roles
• Assimilate new engineers to the company through professional and social networking.
• Provide entry-level engineers with professional role models and mentors.
History
Consumers Energy has 30-year history of rotational engineering programs
Gas and Electric developed separate programs
Merged Gas and Electric in 2012
Added Generation engineering in 2013
Today
2-year rotational program
Learning experience checklist
Mentor assigned to each EEP Engineer
Change occurs in the industry; but investing in NEW engineering talent remains essential 5

6. EEP Program Governance
Executive Leadership Sponsorship
Cross-Functional EEP Council
Recruiting / hiring
Mentor assignment
Liaison to EEP supervisors
Manage learning experiences
Monitor performance indicators
EEP final placement
Recruit
Develop
Retain
EEP Council
Executive Leadership Sponsorship
Electric and Gas Engineering VP
Generation Engineering VP
Cross-Functional Council manages the Program
HR, Gas, Electric, Generation
EEP Council Duties
Recruiting / Hiring
Mentor assignments
Liaison to mangers
Rotation assignments
Full-time placement of EEPs after rotations
Manage Learning Experiences
Liaison to executives for support and long-term strategy
KPIs around progress in program (how many completed 4 rotations) and retention (5-year retention)
Final Placement - Ensure there is a spot for the EEP full-time after rotations are completed
Generation
Gas
Electric
Human Resources
Program governed by representatives from each engineering unit 6

7. Rotations and Evaluation
Standard Rotations
Pipeline Integrity, Measurement & Regulation, Pipeline Engineering
Performance & Feedback
Post rotation review.
Feedback for mutual benefit - manager, informal, end of rotation survey
Multiple Locations – Corporate and Field HQs
Some standard rotations – M&R, CAP, PI - but also many variable rotations – demand for EEPs exceeds supply
- Not all EEPs do each standard rotation, but each set of rotations has at least 1 EEP in those roles
Treat EEPs like any other engineer – assign them engineering problems
No coffee, copies, etc.
Training for each rotation is determined by the manager of that rotation
Many rotations utilize formal training, but many are train through working closely with an experienced engineer/employee
Informal feedback sessions
Managers required to evaluate performance at the end of each rotation
EEPs get “annual review” every 6 months
EEP Council asks for feedback from both managers and EEPs after each rotation to determine if that rotation is beneficial to both EEP and the company
Some rotations have been eliminated for not offering value to EEP
Sometimes rotations have pre-req rotations – for example on the Electric side, you have to go through Customer Service Infrastructure or Low-Voltage Dist Engg before going in to a rotation in Long Range Planning. Don’t know of any corollaries on the gas side.
There are 2 rotations that we quit doing:
Ops Services – Performance team – basically they just had the EEPs running spreadsheets all day without many opportunities to develop, lead, etc.
Ag Services – Didn’t have set work, wanted to use the EEP for Data Entry
Variable Rotations
Energy Efficiency, System Planning, Customer Deliverability. Project Management, Operations
Multiple Locations
Corporate and Field Headquarters
Broad array of opportunities for developing the next generation of leaders 7

8. Checklist of Activities
Learning Experiences
Checklist of Activities
to Broaden
Knowledge
Most items are for all EEPs
Some items specific to gas, electric or generation
Performance expectation to complete
Examples
Plant tours
Department overview meetings
Semi-annual meetings
Team building
Community service
Learning experiences are intended to allow the EEP to broaden their knowledge of the company and increase their contact network. These are completed by the EEPs as they go through their 4 rotations.
List of activities to complete while in rotations
Many common items for all EEPs
Specific experiences based on whether EEP is gas, electric or generation
Expectation on performance review is they complete ~25% per rotation
Example activities
Plant tours – Generation, Compression, Storage
Department overview meetings with Department leads across company
Not just engineering, but corporate services like HR, Fleet, IT
Semi-Annual meetings, coordinated and facilitated by EEP Engineers
Team building and community service events, planned by EEP Engineers
Expanding knowledge beyond daily ASSIGNMENT FOR BROADER UNDERSTANDING 8

9. EEP Engineers 5-year retention rate is 77%
Hire EEPs/year
5-6 are gas employees
Commitment to inclusion and diversity
Currently 24 EEP’s
5 Minority
8 Female
1 Veteran
Newly graduated engineers with <2 years experience
Program is for newly graduated engineers
Most have Bachelors degree, but do consider Masters as well
Generally target EE, ME, Civil, ChemE but there are exceptions
Must have an ABET accredited degree
We target strong resumes in leadership and utility or infrastructure experience
More important than a high GPA
Recruit heavily at a variety of schools across Michigan, and some in Ohio and Indiana to ensure a diverse candidate pool
Typically hire EEPs per year, of which 5-6 are Gas employees
Retention rate is 77% - Retention rate – All employees, including less than 5 year employees (77%) – Those here 5 years and beyond 76%. Based on data going back to 2001
Strong resumes in leadership with infrastructure experience
2015: 14 of 19 new EEPs are former interns
5-year retention rate is 77%
Recruiting and developing the next generation of company leaders 9

10. Mentors Constant for EEP during rotation
Minimum of 2 Mentor/Mentee meetings during each rotation
Mentors are the constant for the EEP during their rotations
Trusted partner interested in EEPs personal and professional development
Sounding board for questions or advice
Mentors are assigned by EEP Council
Vetted to ensure interest in employee development
Ideally, they have a wide network of contacts
Require 5 years experience at CE
Try and establish fit between personality of EEP and mentor
Mentors are asked to meet with the EEPs at least 2 times during each rotation
EEP and mentor agree on structure of their relationship – no mandates from Council
EEP Council offers mentor training and feedback sessions annually
EEP Council conducts Mentor training and feedback sessions
Coach EEP on professional development
Network of contacts for EEP to pull from
Ensuring strong support network for new employees 10

11. Engineering Entry Program
Recent
Changes
Focus on leadership development
Improve feedback loops
Continuous improvement effort
Recent Changes
Focus on leadership development
Added Generation Engineering to the program
Feedback through SurveyMonkey, more supervisor and mentor meetings/forums
Continuous improvement of program – always looking to improve program
Reasons for Success
Buy-in from Executives to invest in new engineers
Utilize intern pool as a feeder to EEP Program – only hire interns that we’d hire full time
How many EEPs are former interns? (% of participants)
Effective hiring
Cast a wide net for candidates
Partnership across Departments – HR, Engineering, Operations, IT
Structured mentoring program
Ownership within the business unit
Not run solely by HR
“Volunteers” Effort – those associated with the program are passionate about it
Even though its not their full-time job, they put the effort in to making it successful
Reasons for
Success
Executive support
Utilize internships identify potential EEPs
Structured mentoring program
Partnership & ownership across Departments – HR, Engineering, Operations, IT 11

12. Questions ?
WORKING TO DELIVER THE ENERGY YOU NEED, WHENEVER YOU NEED IT.
THAT’S OUR PROMISE TO MICHIGAN!
Holly Bowers
Executive Director of Geospatial and Gas Asset Management
May 20, 2015