Introduction Executive Summary Vision & alignment High-level design Operational improvement CS Transformation KPIs People & culture

People & culture Next Steps Appendix

Activity: what decisions will we make around the Operating Model

as a response?

For each operating model component, decision drivers You have been assigned a group. Your task is to review your

1 have been drafted to help assess current state components,

but also help shape the future-state operating model 2 assigned operating model components and plot the
appropriate design decision for each ‘slider’.
design
Once you’ve made your decisions, work as a group to come
to a consensus for each slider. We will socialize and
readout results as a group at the end.

Customers
Note there is no “right” design decision, as examples of
successful companies on both ends of the spectrum have
Channels
been provided
Brand & reputation

Products & services Sample question: what relationship do we want

to have with the customer?
People & organization Technology & data Process & policy

Governance

Partners & suppliers

Option A Option B
KPIs Current-state Interim-state (2021) Ambition (2025+)
Where are we today? Where will ENTITY get us? Where do we want to be?
Culture & values

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Appendix – Vision & alignment
 Introduction Executive Summary Vision & alignment High-level design Operational improvement CS Transformation KPIs People & culture Next Steps Appendix

The customer will play a different role to ENTITY tomorrow than it

Customers does today; we will have to decide how to respond
Declining costs Customers have customizable, authentic and
making self Today we are starting from a point where…
sustainability
intuitive experiences with other providers; they
Corporates more real CCA option have come to expect it from ENTITY
renewable becoming a
targets driving reality in ENTITY Customers rarely engage with us
self generation
for majors Choice is Consumers are looking to align with Outside of bill and pay, ENTITY’s 1.4M
playing a organizations that enable them to CONTROL million customers actively engage with
bigger role the experiences and services that they ENTITY just ~3 times / year 1
Approaching
cost parity for in the receive
centralized ENTITY
delivery vs
market of
decentralized …AUTHENTICITY is valued by consumers, We have a limited view of our
production + tomorrow…
storage
and is rewarded through loyalty. The most customers
trusted brands in the market today tend to While robust segmentation has been
be the biggest and fastest growing developed and utilized, applications
across ENTITY have historically been
ad-hoc and highly customized
…and the standards of competition are being Customers look for INTUITIVE EXPERIENCES
pushed across the entire consumer experience that provide them with the solution with
little to no effort

Our market is often confusing

If the market opened up tomorrow, Regulated utilities operated in an
how well would we fare? environment where a complex mix of
economics, regulation and technology
drive the customer experience

1 Based on 2017 data of total ESS calls, chat, and email inquiries handled; IVR, web & mobile self-service transactions included as well

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 Introduction Executive Summary Vision & alignment High-level design Operational improvement CS Transformation KPIs People & culture Next Steps Appendix

ENTITY currently has 1.3M customers that hold over 1.6M accounts,
Customers contributing over $4B in annual revenue
Residential customers and accounts Commercial & Industrial Accounts
360 view of the customer 360 view of the customer

~1.2M $140 avg 95% ~75K $1.2K avg 5%

residential commercial ENTITY bill
ENTITY bill of customers customers of customers
customers

~1.4M $1.9B total 45% ~173K $2.4B total 55%

accounts annual of revenue accounts annual of revenue
revenue revenue

Rent vs own by customer account Electric commercial account distribution by sub-segment

133K
Of the 150K electric commercial accounts,

Number of accounts
Own approximately 85% are small business
42% single 64% single family accounts (<20 kw)
family homes homes
48% 51%
58 % multi- 36% multi-family 12K
family homes 6K 1K 7K
homes
Uncategorized Large Medium Small SMD*
Rent Commercial account segment
* Indicates new ATOU implemented in July
2018, accounts between 20 and 40kW

Average revenue calculated based on average monthly payments received and average annual accounts for 2017, includes all billable customers and accounts Source: ENTITY Market Intelligence, Insights & Analytics, EY Analysis

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 Introduction
Customers
Case studies
Electric co-ops serve
customers by focusing
on traditional electricity
services and high price
satisfaction
ENTITY delivers the
same experience to its
customers regardless of
channel or purchasing
habits
Uber’s experience
focuses on efficiently
serving customers as
they submit requests
Executive Summary Vision & alignment
Current-state
Where are we today?
Example
Deliver reliable electricity
services with a limited focus
on additional energy-related
programs
Provide a uniform
customer experience for
all segments
Provide service to customers
as they initiate contact
High-level design Operational improvement CS Transformation KPIs People & culture Next Steps Appendix
Interim-state (2021)
Where will ENTITY get us?
Ambition (2025+)
Where do we want to be? Customers
Design choice Example Case studies
What relationship do we want to have with the
customer? CSR’s are trained to
Meet a variety of customer analyze each customer’s
needs through value-add
situation and identify ways
to help them through
Commodity Provider Partner
products and services offered programs or
services
How personalized will customers’ experience of
ENTITY be? Each ENTITY customer has
Different customers warrant a different experience with
unique service the service, thanks to the
company’s AI
Standardized Individualized experiences and offerings recommendation engine
How will we support our customers’ needs?
AT&T uses proactive
Service customer needs strategies (text messages,
On-request Anticipate proactively before they smart video bills) to
minimize bill shock for
initiate contact customers with high bills
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