1. Key Performance Indicators
Stephen J. Price
Division Head – System Operations
September 2015

2. Service territory Chartered in 1848
Franchise area covers 6,213 square miles
Distribution system in District of Columbia, Maryland and Virginia
Over 1.1 million customers
Approx. 13,456 miles of distribution main & 993,522 services
Approx. 1,332 Employees (535 field workforce and supervision)
Approx. 180 Contractor Construction Crews
Other outsourced/external partnering work:
Line locating
Leak survey
Premise work
Engineering services
Integrated Supply Model
Mature Damage Prevention Program
1.29 damages per 1,000 locates

3. Key Performance Indicators
REQUIREMENTS FOR METRICS
Reflect Industry Standard for Success
Take the form of Balanced Scorecards, Internal Management Metrics
Primary Categories
Safety: Pipeline and Employee Safety
Customer Service and Reliability
Efficiency and Productivity
Sustainability and Community Service

4. Benchmarking of Operators Success Indicators
Operator #1 Safety: Maintaining the gas system infrastructure, including responding to gas leaks Reliability: Ensuring the safe, reliable delivery of natural gas to Georgia customers Community Service: very active in our communities, donating to energy assistance programs, contributing to nonprofit agencies, and supporting our employees' continuing volunteer efforts throughout the state. Operator #2 Safety: Maintaining the gas pipeline infrastructure Responding to and repairing gas leaks Customer Service: Providing customer service and billing customers for gas service. Offering online customer information about natural gas and gas- fueled products Community Service: Virginia Natural Gas contributes to the communities it serves through employee volunteerism and donations to energy assistance programs and nonprofit agencies.

5. Informal Benchmarking, con’t
Operator #3 Safety: Safety & Reliability Natural gas has the best safety and reliability record of all traditional energy sources. Community Service: Operator #4 Safety Customer Service Community Service Pricing

6. Balanced Scorecard Approach
Bridges the gap between strategy and actions
Engages a broader range of users in organizational planning
Reflects the most important aspects of the business.
Enables organizations to clarify vision and strategy and translate them into action.

7. Balanced Scorecard Contains the Key Performance Indicators
WGL, Holdings Approach
Balanced Scorecard: Performance vs. Target
Employee Safety
System Safety, Pipeline Integrity (Operational)
Customer Satisfaction
Meter Growth
Supplier Diversity
Employee Engagement
Community Involvement
System Reliability
Financial: Non-Utility Earnings, O&M/Customer, Utility ROE

8. Balanced Scorecard Approach, con’t.
SAFETY
Employee Safety
Scorecard– DART Rates Maintained. Annual Targets Set. Weekly Reporting. Qtrly Scorecard Review.
Internal Metrics—Drive Cam Coaching Events. Vehicle Accidents. Top At Risk Drivers. Performance Management.
System Safety Pipeline Integrity
Scorecard: Accelerated Replacement of At Risk Infrastructure- Implementation of Program Targets. Leak Response Times for all categories of leaks. Damage Prevention Ratio (damages/thousand locates)
Internal Metrics: Leak Volumes. Grade 2 and 3 pending. Leak Repair Conducted. Audit Scores. QA/QC metrics at Supervisor level, System Reliability (outages)

9. Balanced Scorecard Approach, con’t.
CUSTOMER SATISFACTION
Scorecard: CSAT comprised of VRU, IVR, Web Survey, Customer Surveys by Mail following field based service. Weighted Metric.
Internal Tracking and Reporting: Appointment Attainment, 1st call resolution, E-Service adoption, Auto Pay adoption. Employee and Contractor Satisfaction, Effort Score.

10. Balanced Scorecard Approach, con’t.
Community Focused
Supplier Diversity- Tracking MBE spend, 1st and 2d tier.
Employee Engagement- Based upon Organizational Effectiveness Survey and Actions derived from results.
Community Involvement- Tracks volunteer hours by Company employees and family members at Company sponsored events.
Financial
Meter Growth Non-Utility Earnings
O&M/Customer Utility ROE

11. Balanced Scorecard (Excerpt of 2014 Published Scorecard Results)
Target
Measurement
FY14 Target
FY14 Actual
FY14 Final Result
Commentary
Safe Delivery
System Safety / Pipeline Integrity
> 100%
105.1% n
Narrative Description…
Performance Improvement
Construction Unit Cost Attainment
< 100%
98.3%
Customer Value
New Meter Additions
> 13,000
13,327
Customer Satisfaction
> 89%
86.5%
Supplier Diversity
> 19.0%
22.1%
Sustainability
> 95%
98.4%
Employer of Choice
Employee Engagement
> 96%
100%
Community Involvement
> 10,000
11,133
Reliable Supply
System Reliability
< 58
68.04
Meet or Exceed Goal
Goal Missed

12. SYSTEM SAFETY/PIPELINE INTEGRITY
System Safety Pipeline Integrity FY-YTD September 13, 2015 Results
System Safety/Pipeline Integrity Goal
September
1-13, 2015
FY-YTD
September 13, 2015
Goal
Weight
(i) Direct spend on replacing targeted pipe on recoverable work**
112.8%
108.6%
≥90%
30%
(ii) Code 1 leak orders - within 50 minutes
97.3%
97.5%
≥97%
15%
(iii) Code 2/3 leak orders - within 60/95 minutes
76.7%
73.5%
≥75%
(iv) Damage Prevention Ratio (Damages/1,000 Locates)
1.32
1.35
≤1.47
40%
Total
108.4%
106.8%
≥100%
100%
**September 2015 spend not yet available, using adjusted August 2015 for month and FY-YTD spend.

13. CEII Metrics – June 2015

14. Customer Satisfaction Trend

15. FY15 ytd reliability summary

16. Employee + Contractor Satisfaction

17. Leak Management Metrics
Field Operations Weekly Call MOS Week Summary
Week Ending 9/13/2015
Summary All Stations
Emergency Work
Week
Prior Year Week
% Change
FYTD
Prior FYTD
Grade 1 & Third Party Damage 70 89
-21.3%
4795
4923
-2.6%
Non-Leak Priority Dispatched 9 19
-52.6%
1069
1118
-4.4%
Total Emergency Work 79
108
-26.9%
5864
6041
-2.9%
Grade 2 Leaks
Grade 2 Pending End of Previous Week
693
1208
-42.6%
New Grade 2 Initiated 34 90
-62.2%
4048
4810
-15.8%
Grade 2 Completed 74 87
-14.9%
4563
4436
2.9%
Grade 2 Pending Workload
653
1211
-46.1%
Grade 3 Leaks
Grade 3 Pending End of Previous Week
335
1633
-79.5%
New Grade 3 Initiated 18 31
-41.9%
1055
2351
-55.1%
Grade 3 Completed 24 65
-63.1%
2150
1231
74.7%
Grade 3 Pending Workload
329
1599
-79.4%
Service Violation Inspection (SOS)
SVI Work Pending End of Previous Week 36
50.0%
SVI Work Initiated 5 3
66.7%
235
569
-58.7%
SVI Work Completed 7
133.3%
224
752
-70.2%
SVI Work Pending Workload
41.7%
All data used in this report is from Work Manager

18. COMMENTS DISCUSSION