Target Operating Model - Customer Service

ABOUT THIS DOCUMENT
SOW ID 81: Target Operating Model

March 29, 2019
Document’s purpose:
The purpose of this document is to provide an overview of the associated deliverables and outputs for the Target Operating Model (TOM). This deliverable will include content to address (i) Alignment of Company’s
customer service vision and strategy, so everyone in the customer service organization is driving towards the Performance Standards, and understands the vision and how to deliver; (ii) Validation of the intended
customer experience so Company is putting the customer first and building an engaged customer base for future growth; (iii) Agreement on current, transitional, and future state processes (as defined in the To-Be
Process Design and Documentation Deliverable) and structures needed to minimize customer pain points in order to achieve Performance Standards; (iv) Agreement on the technology roadmap beyond the Project
duration to deliver a business that supports a true omni-channel self-service environment; (v) Design the appropriate governance structure so decisions can be made with a clear understanding of the customer,
employee, and value impacts; (vi) Communicate the Performance Standards so everyone is clear on how they contribute to meeting Company’s customer service vision; (vii) Updated or new job profiles to support
future state roles for Customer Operations and Business Services departments; and (viii) Agreement on the appropriate resource mix of partners and suppliers so Company can deliver on its operational
commitments, while keeping line of sight to value.
Version No. 0.7
☒
☐ In Review
Document Status
☐ Final
Update After Final
Document Owner(s) Danielle Miller
Sam Worley
Faris Moughal
Document Author(s) Geneva Travis
Mateen Alinaghi
Ashley McNutt
Date Approved <mm/dd/yyyy>
Date Last Modified March 29, 2019
Location of this Document To be added
on SharePoint
3/3/22
Sanitized by Global Markets - EY Knowledge
REVIEW, VERSION CONTROL AND APPROVALS
Document Review
Name Role Date
Danielle Miller Organizational Readiness Tower Lead

Document Version Control

Version Date Author CR/SIR Ref(s) Details of Change
0.1 2/27/2019 Mateen Alinaghi Original version with storyboard
0.2 2/28/2019 Mateen Alinaghi First draft
0.3 3/1/2019 Faris Moughal Updated based on initial review and feedback
0.4 3/4/2019 Sam Worley Updated storyboard
0.5 3/6/2019 Ashley McNutt Incorporated new content
0.6 2/28/2019 Mateen Alinaghi Incorporated team feedback after internal review
0.7 3/29/2019 Sam Worley Review and edits

Document Approval
Role Approver Name Date Electronic Signature
Organizational Readiness Tower Lead Danielle Miller mm/dd/yyyy
3/3/22
DOCUMENT COMPLETION CHECKLIST
Does the document meet the quality standards established in the SOW? ☒
Does the title page correctly identify the current version and status of this document? ☒
Has the Document Version Control section been continuously updated? ☒
Is the table of contents updated to the latest content? ☒
3/3/22
Customer Services
Consolidated TOM Deliverable
March 29th 2019
PROPRIETARY AND CONFIDENTIAL INFORMATION. UNAUTHORIZED COPY, REPRODUCTION OR DISTRIBUTION OF THIS INFORMATION IS
STRICTLY PROHIBITED WITHOUT THE PRIOR WRITTEN PERMISSION OF ENTITY
Introduction Executive Summary Vision & alignment High-level design Operational improvement CS Transformation KPIs People & culture Next Steps Appendix
Table of contents
Content Page
Introduction and executive summary: introduction and summary of operating model work 6
Vision & alignment: setting the direction across Customer Services 23
Customer Services vision, mission statement, and design principles, associated workshop outputs
High-level design: making decisions based on our vision 43
High-level design decisions and ENTITY BPD Change impacts, associated workshop outputs
Operational Improvement: defining how we will achieve TOM 54
Roadmap of initiatives (quick win and TOM), initiative one pagers, associated workshop outputs
Customer services transformation: defining the process and plan to deliver the vision 92
Continuous improvement process, governance and terms of references, associated workshop outputs
Customer Services KPI: defining how we will measure success 111
Performance framework overview (primary / secondary KPIs), OGSM, prototype dashboard, associated workshop outputs
People & culture: defining the organization that will deliver the vision 122
Placeholder: Finalized organizational design, RACI, transition plan, associated workshop outputs
Placeholder: Updated job profiles for agreed Customer Services area, associated workshop outputs
Next steps: further operationalizing TOM 127
Communications plan for TOM
Appendix: supporting documentation 130
Workshop material and plans, baseline assessment, market assessment, quick wins handbook
5
Customer Services Target Operating Model
Executive Summary
March 29th 2019
Customer Services’ Target Operating Model (TOM) overview
• ENTITY is undertaking a massive system transformation (ENTITY), which is intended to modernize and improve the business for customers, employees, and
stakeholders
Context
• This level of major transformation is a ‘once in a generation’ change and represents a huge opportunity to transform the business, alongside implementing a
system
Additional macro and organizational factors shape ENTITY’s case for change
• Evolving customer preferences: customers expect an experience comparable to top retailers and business – one that brings on-demand, personalized service
through their channel of choice
Triggers • Industry and regulatory changes: customer choice and options across ENTITY’s footprint are forecasted to expand with the introduction of community choice
aggregators (CCAs) and other providers
• Technology obsolescence: existing infrastructure and technology systems are becoming increasingly instable, presenting a higher risk of failure. Such
complexities are introducing high operating and maintenance costs for these systems, and present additional challenges to enhance the customer experience
The development of a target operating model (TOM) to define and clarify how ENTITY’s Customer Services organization works and delivers on its strategy
•Alignment of ENTITY’s Customer Services’ vision and strategy, including the intended customer experience
•Validation of the processes and initiatives required to achieve the desired target operating model
Response
•Development of a delivery methodology, including an appropriate governance structure, to support the implementation and execution of the TOM
•Creation of a performance framework to support the measurement and assessment toward achievement of the TOM
•Coordination with HR to design an organizational structure that enables the achievement of the Customer Services TOM
7
Our approach for Customer Services’ Target Operating Model
workshop week
September October November December January February March
W/C 3rd 10th 17th 24th 1st 8th 15th 22nd 29th 5th 12th 19th 26th 3rd 10th 17th 24th 31st 7th 14th 21st 28th 4th 11th 18th 25th 4th 11th 18th 25th
Baseline customer service performance • CS Baseline Holiday

1. Current State & Vision Conduct market assessment • Market assessment
Alignment Workshop Analyze customer segments • Customer segment analysis
Agree customer value proposition Oct 26 • Validated strategy
• Quick wins
Agree CS quick wins • Customer service long list of issues
2. Operational Documents high level processes • Prioritizing ‘customer service’ quick wins
Improvements Workshop
Nov 28
• TOM case for change
Build out TOM case for change
• Current state TOM
Collate baseline data
3. Future State High Level • TOM design principles
Develop design principles
Design Workshop Build strategic design options Dec 4 • Leadership-validated high level TOM design
decisions
Obtain existing customer journey maps • High level customer experience design over time for customers
4. Customer Experience
Collate existing CX data • Customer Journey (BPD) change impact assessment
Design Workshop
Prepare leading practice insights Jan 17 • Agreed set of customer experience measurement priorities
Build high level future org structure & RACI • Future org structure & RACI
5. People, Culture and Develop process change impact assessment • Org change impact analysis
Supporting Processes • Process change impact assessment
Develop gap analysis of tech roadmap Dec 12 •
Tech roadmap gap analysis
• Agreed definition of analytics and role Prepare leading practice examples of analytics functions
6. Data analytics and KPIs within ENTITY Customer Services’ Prepare design choice options for analytics
• Agreed set of KPIs to measure success of
operating model performance Prepare leading practice views on op model success measurement Feb 12
Build high level future org structure Build detailed design future org structure
Establish TOM Governance Develop Customer Services Initiative Roadmap Build new role descriptions
Consolidate operating model report
General Interview and align key stakeholders
Begin to execute on identified quick win initiatives
Build w’shop plan Begin to execute on H1 2019 operating model roadmap
Develop org change impact analysis
8
Target Operating Model overview
Supports ENTITY by articulating the future state of the Customer Services organization that we are working
towards
Looks across rapidly changing market drivers, customer needs and organizational capabilities to inform how
Customer Services will need to evolve to stay successful
Describes the people, process and technological changes that are required to effectively serve our
customers in the future
9
What is the Target Operating Model for Customer Services?
Vision and strategy
Customers
Channels Why do we operate the way we do?

e
ri enc
r expe Brand & communication
e
u sto m
C
Offerings
What capabilities are needed to

Capability
People & organization Technology & data Process & policy enable the vision and strategy?
Governance
How will these objectives and

Enablers
Performance metrics
capabilities will be delivered?
Culture & values
10
Over the last six months we have worked closely with the business
to define the future state of the Customer Services operating model
Vision workshops Idea Gathering sessions Stakeholder interviews

Gather input from Customer Service Gather input from 90+ employees on how Gather input from 25+ ENTITY Customer
leadership as to the future direction to achieve CS vision Service stakeholders
Market assessment Customer services baseline Call listening

Understand of the market changes that Understand the operations of Customer Identify quick win operational improvement
need to be considered to 2025 Services today opportunities
11
The Customer Services Target Operating Model work stream
Customer Services Target Operating Model: looking to 2025
The Mission Design Principles Vision Statements Key Decisions

Early decisions made by leadership that start
us on the journey towards the TOM
Strategies
Tells Customer Services and its Helps the whole organization Helps operational teams Initiatives identified that will enable the
partners what direction we are make choices that are in line with understand how they contribute organization to transition into the future state
headed the Mission to the Mission
Delivery
A process to transform the business and a
system to measure that change
‘Setting the direction’ ‘Making it real’
12
Key Decisions
The Mission Design Principles Vision Statements Strategies
Delivery
13
The Customer Services’ mission articulates where we want to take

the Customer Services organization by 2025
Make it easy
Key Decisions
Delivery
14
The Customer Services’ mission is elaborated on in the

design principles for the Customer Services Target Operating Model
We put customers first and provide an effortless service experience
We believe service starts with trusted team members who are empowered to help customers the first time
We prioritize digital solutions for our team and our customers
We are an agile organization that reacts quickly to customer needs and changing market conditions
We add value to customers by connecting them to relevant energy offerings
Key Decisions
Delivery
15
We have agreed to a set of vision statements across each of the

operating model components that will guide our transformation
Brand & Offerings People &

Customers Channels
communication organization
To provide all of our Experience is optimized ENTITY customers have a We are excellent at our core We are an agile organization
customers with an effortless across a selective set of personal and positive offerings and add value to with employees empowered
energy experience channels to support 75%+ of experience with our brand customers with to make decisions
contact digitally complementary services
Tech & data Process & policy Governance Performance metrics Culture & values
We harness technology to drive Process design and execution Delegated authority is given Priority KPIs measure and We have a continuous
process efficiency and prioritizes the customer, to defined, accountable and communicate strategic improvement and first-time
anticipate our customers’ even when that is challenging empowered decision makers outcomes to drive informed resolution culture, and hold
needs for the business at all levels decisions each other accountable to this
Key Decisions
Delivery
16
Key Decisions
Delivery
17
Customer Services leadership proposed some early key decisions to

guide the development of the Target Operating Model
Question asked TOM Decision
• We will use Customer Effort Score to measure performance across customers

How will we measure the success of Customer Services through • We will use an Employee Engagement Index to measure performance across employees
a set of primary KPIs? • We will use Cost Per Contact to assess value across the organization
• We will use Days Elapsed to Deliver to measure organizational agility
How can we make it easier for customers via field? • We will offer 1-hour appointment windows for emergency and non-emergency requests
How will we communicate our journey to the business? • We will focus early on putting out effective communication of existing initiatives and activities
How will we respond to the rise of CCAs in ENTITY? • CCAs will be treated as a primary customer group and we will strategically explore various CCA billing options, including
the option of sending two separate bills
How will we manage these changes? • We will work to build out an effective governance structure across Customer Services
How will our channel priorities need to change to deliver? • We will explore prioritizing: (1) Mobile App, (2) Voice, (3) SMS, (4) Digital Assistants, and (5) MyAccount
Key Decisions
Delivery
18
Key Decisions
Delivery
19
Based on our assessment, we have developed a TOM roadmap that

stakeholders believes can transform the business
Make it easy Making it easy Made it easy 
Illustrative plan using TOM design principles 2019 2020 2021 2022 2023 2024 2025
Implement a voice of the customer platform, which has the ability to measure customer effort score
Make the bill more simple, user friendly and easy to understand
We put customers first and provide an
Simplify the credit card payment process for customers
effortless service experience
Route customer to the correct agent through the IVR
Build flexibility to achieve 1-hour field appointment windows
Deliver a consistent experience across channels (e.g. Mobile App and MyAccount) for customers
Auto-enroll customers in text alerts and notifications for outage
Introduce voice support (i.e. Alexa, Siri, Google) for 2 use cases through voice channel
and high bills
Introduce text alerts for account changes (e.g. bills reminders & alerts, field service status
We prioritize digital solutions for our team Improve presence on social media (I.e. Twitter & Facebook) Implement a chatbot-like assistant on the current website to handle a broader set of questions, integrated with
and our customers Promote the usage of self-service to customers customer accounts
Establish a consistent process for updating information on the website
Default customers to paperless billing
Identify areas and opportunities to increase automation to support workflow of
field / ESS agents
Document and communicate roles and responsibilities for improving CX to all
We believe service starts with trusted team employees within Customer Services
members who are empowered to help Create a "Voice of the Employee" platform and process of soliciting ideas across the organization
customers the first time Provide opportunities for employees to shadow, visit other departments, attend offsite,
conduct field ride alongs
Implement an automated process to measure days elapsed to deliver certain offerings, communications, rates
Establish a performance framework – including KPIs – across the business to deliver the CS vision
We are an agile organization that reacts Consider the use of multi-skilled vs specialized agents
quickly to customer needs and changing
market conditions Work with HR to assist in organizational re-design efforts that improve efficiency, structure, and function
Implement the use of a consistent continuous improvement methodology to drive operating model initiatives
Implement a method to measure first contact resolution that the business has confidence in
Invest in actionable segmentation to define service strategy for different customer types
We add value to customers by connecting Simplify program offerings / value prop to make them easy for customers to understand
them to relevant energy offerings
Create personalized service offerings and recommendations through predictive analytics
Key Decisions
Delivery
20
Key Decisions
Delivery
21
Delivering and implementing the TOM to drive and measure

Customer Services’ journey towards its goal
Customer Services org design: Target operating model delivery Customer services dashboard:
in progress methodology: in progress in progress
Organizing to effectively manage the transition Delivering change to the organization Measuring the impact of our changes
Key Decisions
Delivery
22
Vision & alignment
Vision & alignment: context and overview
Purpose of this section Key artifacts

• Understand the direction of the energy market and how it will impact ENTITY in the • Customer Services’ vision (across operating model components)
future. • Mission statement
• Gather alignment on the vision for the Customer Services organization • Design principles
• Develop an understanding of current business performance • Market and baseline assessment (Appendix)
• Define design decisions across each of the operating model components to shape the
target operating model
1. Vision & 2. High Level 3. Operational

Alignment Design Improvement
Alignment on the vision across Making decisions based on Development of initiatives form
each of the Customer operating vision identified in across the business to meet the
model components previous workshops Customer Services vision
4. Customer 5. Customer 6. People &

Services Services KPIs Culture
Transformation
Defining the process and Defining the KPIs by which Defining the organization
plan to deliver the target we will measure that will deliver the vision in
operating model Customer Services the future
24
Defining the Target Operating Model for Customer Services
Vision and strategy
Customers

e
ri enc
e
u sto m
C
Offerings

Capability
Governance

Enablers
Performance metrics
Culture & values
25
What will the front page read when they write about the ENTITY
Customer Services organization in 2025?
ENTITY Delivers World Class customer service in our ever changing energy environment Who would have thought? ENTITY a
leader in customer experience.
ENTITY: ENTITY
ENTITY is the "ENTITY" The Comeback Kid: redefining enables the ENTITY, the utility that is the
of the Utility World utility customer service sustainable home darling of the tech industry
Newsweek: ENTITY, the "IT" utility.
ENTITY: Most Trusted Brand
ENTITY Knew the Answer to my ENTITY creates genuine connections ENTITY: Cutting
Question Before I Even Asked It with customers to solve energy needs through the chaos
ENTITY is #1 nationally in Energy experts connecting

Customer Services us to energy solutions ENTITY rated #1 in customer satisfaction for
the 3rd consecutive year!
Delight Starts Here
ENTITY mastered a combination of value, satisfaction, ENTITY hits a home run in
ENTITY: Powering purpose customer service
and delivery efficiency that consumers love.
26
What areas would you prioritize for investment for ENTITY from
today to 2025?
(A) Efficiency 8
leader
Efficiency leader
Operate with extreme efficiency, often providing
a “one size fits” all experience for customers
(B) Innovation / 14
product leader
(C) Customer
service leader 17
Innovation / product leader Customer service leader

First to bring new, disruptive ideas Obsessed with the delivering an
to the market exceptional customer experience, often
leading the industry in satisfaction
Inside-out
Poll results
27
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 2 assigned operating model components and plot the
appropriate design decision for each ‘slider’.
operating model 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
28
Current-state
Where are we today?
Interim-state (2021)
Where will ENTITY get us?
Ambition (2025+)
Where do we want to be? Customers
Customers
Case studies Example Design choice Example Case studies
What relationship do we want to have with the

customer?
CSR’s are trained to
Electric co-ops serve Deliver reliable electricity Meet a variety of customer analyze each customer’s
customers by focusing
on traditional electricity services with a limited focus needs through value-add situation and identify ways
on additional energy-related to help them through
services and high price
satisfaction programs products and services offered programs or
services
Commodity Provider Partner
How personalized will customers’ experience of

ENTITY be?
ENTITY delivers the Each ENTITY customer has
same experience to its Provide a uniform Different customers warrant a different experience with
customers regardless of customer experience for unique service the service, thanks to the
channel or purchasing experiences and offerings company’s AI
habits all segments recommendation engine
Standardized Individualized
How will we support our customers’ needs?

AT&T uses proactive
Uber’s experience
focuses on efficiently Provide service to customers
Service customer needs strategies (text messages,
serving customers as as they initiate contact proactively before they smart video bills) to
minimize bill shock for
they submit requests initiate contact customers with high bills
On-request Anticipate
Consensus reached in workshop Consensus based on plotted decisions
29
Current-state
Where are we today?
Ambition (2025+)
Where do we want to be? Channels
Channels

What kinds of channel innovations are we willing to
Investments limited to invest in?
proven, mature We will invest in proven, We will invest in the latest, Uses advanced A.I. and
technologies that natural language
support existing mature technologies in cutting edge technologies processing to provide
customer support through
customer service our channels in our channels chatbot-like functionality
capabilities
Mature Emerging
How integrated do we want our channels to be?

Direct-to-consumer
mattress companies Each customer interaction Customer interactions and Customers can pick up right
occurs in its own, separate where they left off
efficiently push content usage are integrated regardless of the channel
through as many
channels as possible
channel across all channels they choose
Multi-channel Omni-channel
How many channels can we be successful at offering?

Subscription-based We offer exceptional Dominos has provided the
Our customers can reach us on options to place an order in
clothing services provide service and support on any and every channel nearly every possible
concierge-like support
select channels channel
Few Many
To what extent will contact through our channels be

Offers alternatives (e.g. digital?
Non-digital channels are All customer support is
physical stores, no IVR) Almost all customer handled through customer-
to traditional digital- encouraged some customer
channels to support requests contact will be digital driven forums to help
service queries
customer requests
50% 100%
Consensus reached in workshop Consensus based on plotted decisions Inside-out
30
Current-state
Where are we today?
Ambition (2025+)
Where do we want to be? Brand & reputation
Brand & reputation
How do we want our customers to perceive our

brand?
Seen as a reliable and We are known for our We are known for bringing the Seen as the most
innovative car company
dependable car reliable, dependable latest technologies to today, releasing vehicles
manufacturer focused customers in our products and with the newest technology
on quality products and services services and capabilities
Reliable Innovative
How targeted do we want our communications to be

with our customers?
Mass recognition and We have high brand We target our brand and Brand, products, and
brand recall pursued services targeted to
through TV ad recognition due to our products / services to specific particular customer
campaigns mass market campaigns customers segments and geographies
One to many One to one
31
Current-state
Where are we today?
Ambition (2025+)
Where do we want to be?
Products & services
Product & services
What will our product mix look like?
Primarily regulated
offerings focused on Our products and services will We will only offer non- EDF U.S. has developed
be limited to regulatory deregulated energy
reducing energy usage regulated products and services for large C&I
through EE or DR requirements
programs services for customers customers
Traditional Non-traditional
How diversified do we want our product and service

offerings to be?
Develops products We want to focus on a
primarily focused on concentrated set of We want a diverse product Diverse products and
semi-conductors for services across a variety of
personal computers and related products or offering for customers industries and sectors
desktops services
Concentrated Diversified
How will we communicate our products and services

to customers?
Actively promote certain
Leverages brand to We will present products We will promote our products and services
manage customer across different channels
touchpoints and present and services to those products and services including stores, website,
its products customers interested across audiences direct mail, and mobile
apps
Pull Push
32
Current-state
Where are we today?
Ambition (2025+)
Where do we want to be? People & organization
People & organization
How can our teams manage through change?

Microsoft underwent a As consumers opted for
major transformation to A company’s organization is A company’s organization is
healthier breakfast choices,
shift its focus to nimble enough to realign aligned so that it can evolve to Dunkin Donuts opted to re-
focus its business on coffee
intelligent cloud
computing
quickly to change change and other breakfast items
Agile Adaptive
U.S. car manufactures

How should we work as a team?
with specialized Each employee has Employees leverage multiple
EY pools resources
nationally to ensure each
processes have specialized skills and skills in coordination to engagement is staffed with
employees focused on a contributes to solving a portion diverse and versatile
segment of the solve a business problem
production process of a problem skillsets
Specialized Versatility
For what purpose do we invest in employee training?

NextEra employees are
Focus on employee
incentivized to become Focus on driving efficiency Focuses and invests in
six sigma trained to help development and career development rotation and
improve processes and and performance leadership programs.
enhance efficiencies progression
Efficiency Empowerment
What should the flow of work look like?

Roles are task oriented Defined roles and levels Elevated employee Strong emphasis on
and closely managed to individual unique ability to
mitigate risk and focus of authority / responsibility responsibility with less contribute with high
on efficient processes drive employee specialization management overhead autonomy
Authority Autonomy
33
Current-state
Where are we today?
Ambition (2025+)
Where do we want to be?
Technology & data
Technology & data

How ‘predictive’ do we want our analytics functions
to be?
Uses data to understand Our analytics will shed insight Predictive models help
how companies use Our analytics can help predict
into what previously serve more relevant ads
platform to help drive
happened what will happen to customer
future product decisions
Information Optimization
To what extent do we want to invest in automation?
Insurance companies
invest in basic We will invest in simple, Our automation investments will Google’s AI, from its
photo processing to
automation tools to rudimentary forms of focus on cutting-edge virtual assistant features
speed up claims
processes automation automation technologies are regarded as leading-
class
RPA Advanced A.I.
How standardized do we want reporting across the

Reporting and
Reporting is consolidated
organization? Individual BUs use
visualization tools such
as Power BI and Tableau and socialized as one
Individual business units reporting and
enable single sources drive the reporting they visualization tools most
across an organization ‘source of truth’ across the find most relevant relevant to their
or business units organization organization
Standardized Reporting Bespoke Reporting
Where do we want to focus our technology & data

Splunk aggregates
investments? Clarabridge processes
synthesizes ‘big data’ Our investments should drive Our investments should drive real-time analytics
across multiple systems across channels to drive
for search and operational efficiencies customer experience insight and improve
analyzation customer experiences
Back-office Front-office
34
Current-state
Where are we today?
Ambition (2025+)
Where do we want to be? Process & policy
Process & policy
To what extent will we enforce customer-facing

policies?
Due to the nature of their Policies are enforced on a
business, health insurance Policies are consistently Nordstrom’s return policy is
case-by-case basis extremely lenient toward
provides must consistently
enforce policies across
enforced across the depending on the customer accepting returns in order to
customer base business situation please the customer
Business-first Customer-first
Do we want our policies and processes designed to

manage risk or drive customer satisfaction?
Banks design policies to Policies and processes are
Policies and processes are ENTITY designs company
manage risk and protect
designed to protect the designed to enhance the policies across the
themselves from
fraudulent transactions business from risk customer experience and organization to help drive
customer satisfaction
and customers drive satisfaction
Manage Risk Drive CSAT
35
Current-state
Where are we today?
Ambition (2025+)
Where do we want to be? Governance
Governance
How will accountability be shared across the

organization?
In large oil & gas
In designer fashion Limited to key groups or Shared across the companies, accountability
brands, accountability is
limited and centralized stakeholders to drive organization and flexible is shared and delegated
across many levels of the
to key decision makers efficient processes processes are in place organization
Centralized Delegated
How will decisions be made across the organization?
Upper management All employees are All employees are

Key decisions are driven encouraged to help
by vision and roadmap drives decision making included in management’s support decision making
set by leadership and strategic direction of that drives products and
company decision making process services
Top-down Bottom-up
36
Current-state
Where are we today?
Ambition (2025+)
Where do we want to be? Partners & suppliers
Should future partnerships drive optimization or

enable new capabilities?
Drive operational
Drive customer efficiencies, reducing Differentiate our Develop new capabilities
acquisition of “new-
costs or improving capabilities and service such as EV charging
move” home services solutions
functional performance offerings in the market
Operational Strategic
(e.g. Optimize) (e.g. new capabilities)
What part of the business do we want partnerships

to support?
Investments in data Out partnerships interface Partners are directly Business and residential
science and analytics directly with our
to enabler smarter interfacing with the smart-thermostat
company internally partnerships
energy solutions customer
Non customer-facing Customer-facing
37
Current-state
Where are we today?
Ambition (2025+)
Where do we want to be? KPIs
KPIs
What types of KPIs will we monitor and track?

Water utilities focus on We will focus on how the We will monitor progress or KPIs measure strategic
KPIs that track and business is performing trends toward a stated value such as customer
optimize business lifetime value and EV
operations today and in the past future direction market share
What will be the mix of KPIs among customer

Shared service centers interactions?
Established a customer
and outsourced KPIs will measure the
providers constantly KPIs will measure the outcome effort score metric after
performance of coaching sales
look for ways to improve
transactional individual transactions of the transaction representatives on
alternative phrasing
performance
Transactional Outcome-oriented
Will KPIs be shared and assessed across the

enterprise, or managed individually with select BUs?
Consumer product Built a consolidated
brands track and Individual business units A single, centralized analytics center of
manage KPIs at a
product (business unit)
will be responsible for business unit will track and excellence from data that
was previously in more
level tracking and managing KPIs manage KPIs than 2,100 silos
Select BUs Enterprise Wide
38
Current-state
Where are we today?
Ambition (2025+)
Where do we want to be? Culture & values
Culture & values
What do we want need our culture to be?

Zappos has made
Employees are Employees are focused on Employees are obsessed conscious trade-offs in its
compensated by the service model to ensure
sales they make and the producing results in a about the customer and customer service is
quota the meet timely manner the experience they have ingrained across the
company
Efficiency Customer

Employees do not hesitate to PillPack, a full service
Employees are given a
budget to go above and take additional steps to Employees are inspired to digital pharmacy, has a
‘team-first’ culture that has
beyond in customer
ensure quality is seek out innovative helped turned the
service
ingrained in the culture opportunities on their own pharmaceutical industry
up-side down
Quality Innovation
How do team members view trust?

Card issuers rely on
credit scores, on-time Trust is immediately Lyft places enormous trust
payments, and healthy Trust builds over the course given across all levels of the on drivers to help with
credit balances to build of time passenger pick-up requests
trust over time with organization
consumers
Trust is earned Trust is given
39
The Customer Services’ mission articulates where we want to take

the Customer Services organization by 2025
Note: WIP draft, to be validated
40
The Customer Services’ mission is elaborated on in the

design principles for the Customer Services Target Operating Model
We believe service starts with trusted team members who are empowered to help
customers the first time
We are an agile organization that reacts quickly to customer needs and changing
market conditions
41
We have agreed to a set of vision statements across each of the

operating model components that will inform our transformation
Customers Channels Brand & communication Offerings
Experience is optimized across We are excellent at our core

To provide all of our customers ENTITY customers have a
a selective set of channels to offerings and add value to
with an effortless energy personal and positive
support 75%+ of contact customers with
experience experience with our brand
digitally complementary services
People & organization Tech & data Process & policy
We are an agile organization We harness technology to drive Process design and execution
with employees empowered to process efficiency and anticipate prioritizes the customer, even
make decisions our customers’ needs when that is challenging for the
business
Governance Performance metrics Culture & values
Delegated authority is given to Priority KPIs measure and We have a continuous

defined, accountable and communicate strategic improvement and first-time
empowered decision makers at outcomes to drive informed resolution culture, and hold
all levels decisions each other accountable to this
Note: partners & suppliers removed from operating model scope at request of Customer Services leadership
42
High-level design
High-level design: context and overview

• Validate design principles for the operating model design • High-level decision decisions
• Make a set of high-level design choices to help guide the design of the future • ENTITY business process design change impacts
operating model
• Understand potential impacts to existing/to-be business processes


Transformation
44
Our design principles help to guide the direction of each High Level
Design decision and have corresponding assessment criteria
Design principles help us articulate the biases of the organization and enable us to prioritize some activities over others
through the application of corresponding criteria
Does it enable a simpler experience for the customer?
Is it controllable and achievable within the Customer Services organization?
Does it put digital first for the customer and the business
Does it increase the efficiency of the Customer Services organization?
Does it allow us to bring a wider range of ENTITY services to the customer?
45
We made high-level decisions across 10 questions to guide the

development of Target Operating Model (1/2)
# Question Decision
• We will use Customer Effort Score to measure performance across customers

What are the primary set of KPIs that we will use to measure • We will use an Employee Engagement Index to measure performance across employees
1
success of the Customer Services business? • We will use Cost Per Contact to assess value across the organization
• We will use Days Elapsed to Deliver to measure organizational agility
What are our priority channels to invest in to create an effortless We will prioritize the following channels: (1) Mobile App, (2) Voice, (3) SMS, (4) Digital Assistant, and (5)
2
customer experience? MyAccount
What are the highest impact areas we should prioritize when trying Several pain points were identified across (1) billing and payment, (2) pricing plans / offering, (3) outage
3 to reduce customer effort? communications, (4) field service appointment, (5) understanding communications, and (6) timely service
4 How can we encourage customers to interact via our priority A range of adoption and engagement strategies across priority channels were discussed to help alter and
channels? shift customer behavior
5 What appointment window should we offer for field service visits? We will offer 1-hour appointment windows for emergency and non-emergency requests
46
We made high-level decisions across 10 questions to guide the

development of Target Operating Model (2/2)
# Question Decision
We will primarily use demographic and behavioral attributes to support our customer groups across the
6 How will we use different customer profiles across the business?
business
7 How will we serve our CCA customers? CCA customers will be the norm by 2025 and will be treated as a primary customer group
8 How will we handle CCA billing? We will strategically explore various CCA billing options, including the option of sending two separate bills
9 How can we provide each ENTITY customer with a personal and We will focus our efforts on effective communication of existing initiatives and activities
positive experience with the brand?
10 How will we drive empowerment and accountability for decision- We will work to build out an effective governance structure across Customer Services
making across Customer Services?
47
We reviewed BPDs to understand any target operating model

implications based on high-level decisions made
To better understand change implications and impacts to the business, we have reviewed 40+ ENTITY BPDs that have been finalized. Of the
reviewed BPDs, approximately 30 are potentially impacted by TOM decisions or to-be processes.
ENTITY Business Process Documents (BPDs) : Target Operating Model (TOM) Impact Analysis
Note: full analysis
Note: High, medium, and low rankings indicate the degree to which TOM Decisions impact the BPD as drafted
High embedded below
9
Medium EMBEDDED FILE
1
Low DELETED
6 6
BPDs with potential target
5
2 2
model implications
7 1
3
2
1
4 4
2 2
1 1
Billing Device Mgmt Digital FICA Marketing & Sales Services
& Field Communications
Analysis based on ~50 completed BPDs that are relevant target operating model work stream; does not include BPDs that are still in draft form
Note: BPD change impacts presented to functional and work stream leads on January 29th, 2019. Attendees included Chris Swartz, Sandra Webb, Ben McCarthy, Eva Ng, Stacey Dyson, Olivia Nguyen, Corey Miller, Giovanna
Casillas, Cristina Abelgas, and Laura Welty
48
Identified target operating model implications: high impact
TOM Decision Workstream ENTITY implication(s) based on BPD
Change implied from BPD: Choice billing enrollment (DA, CCA, CAT) will undergo significant automation and process changes; SAP
We will strategically explore various CCA billing will now be the system of record for choice billing and employees interfacing may see increased workload as choice billing
options, including the option of sending two Billing enrollment increases overtime
separate bills Implication of TOM decision: The various CCA billing options under consideration could directly impact choice billing enrollment
and mass enrollment of customers
Change implied from BPD: Service request enhancements will be rolled out including online service capabilities, guest logins,
Digital proactive notifications, centralized tracking, eligible appointment slots
Implication of TOM decision: Service requests should support 1-hour appointment windows and delineate between emergency
and non-emergency requests
We will offer 1-hour appointment windows for
emergency and non-emergency requests
Change implied from BPD: Field service reps will have increased access of service orders through SAP and ESS/BSS agents will have
Device
increased autonomy to create/maintain/modify/override field service requests
Management &
Implication of TOM decision: Service requests should support 1-hour appointment windows and delineate between emergency
Field and non-emergency requests
Change implied from BPD: Significant changes to managing marketing segmentation and target group creation, including ability to
We will primarily use demographic and quickly create ad-hoc segment and target groups for campaigns, predictive modeling, ability to segment on customer interactions,
Marketing &
behavioral attributes to support our customer Communications and more
groups across the business Implication of TOM decision: Centralization of segmentation attributes and capabilities to view and perform analysis of customer
profiles should be designed to support demographic and behavioral attributes
Note: BPD change impacts presented to functional and work stream leads on January 29th, 2019. Attendees included PERSONS
49
Identified target operating model implications: medium impact (1/2)

Change implied from BPD: Standardization of tracking and planning customer tasks and activities; integration of business master
Sales data and customer / contact data into one system of record between Business Service employees and ESS agents
Implication of TOM decision: Applications of standardized and consolidated customer / interaction data could have potential
operating model decisions depending on suite of offerings /services for customers
Change implied from BPD: Consolidated / centralized repository of program eligibility information will be provided and field
technicians will have greater access to systems used to manage such programs
We add value to customers by connecting them Service
Implication of TOM decision: Eligibility requirements should be drafted based on complementary services that will be offered;
to relevant energy offerings potential implication on service windows appointments for energy audits
Change implied from BPD: My Account will see deeper integration of program offerings and rebates presented to customers;
offering information and enrollment will be further consolidated within My Account for customers to view and enroll
Digital Implication of TOM decision: My Account enhancements and capabilities related to offerings (e.g. Energy Efficiency programs)
should align to complementary energy offerings/services offered to customers; potential impacts to Customer Effort Score for
enrollment of these energy-related offerings
Change implied from BPD: (1) Social media will become a larger part of customer interactions as the system now enables ESS/BSS
We will use Customer Effort Score to measure Service to view social media interactions in SAP and provides a platform for reps to interact with these customers and solve customer
performance across customers, and we will use inquiries; system now supports appending customer data through social media channels and can automatically assign tickets based
Cost Per Contact to assess value across the
organization. We will prioritize the following on rules (2) Significant enhancements and capabilities to certain digital channels, including new two-way SMS, in-app notifications,
email, and robo-calls
channels: (1) Mobile App, (2) Voice, (3) SMS, (4)
Implication of TOM decision: (1) Service applications of social media should be considered given decision to prioritize other
Digital Assistant, and (5) MyAccount to support Digital
channels and focus on customer effort / cost per contact KPIs (2) Channel capabilities should align to prioritization of channels
support 75%+ of contact digitally
previously decided on by Customer Services
50
Identified target operating model implications: medium impact (2/2)

Change implied from BPD: Updated algorithm for enrollment and eligibility of low income assistance programs requires
Billing additional ESS resources for explaining eligibility and handling exceptions
Implication of TOM decision: Changes to low income assistance program enrollment / eligibility could impact customer effort
scores once live
We will use Customer Effort Score to measure
performance across customers Change implied from BPD: Digital capability enhancements to outages, move –in, move-out, and transfers, will bring real-time
validations, abbreviated digital registration, tracking, streamlined scheduling of service orders, proactive notifications and
Digital notification management through My Account
Implication of TOM decision: Digital enhancements have potential to reduce customer effort, but customer inquiry volume
remains at risk
We will strategically explore various CCA billing Change implied from BPD: Levelized payment plan enrollment is now handled by Hybris/C4C, which brings support for ad-hoc
options, including the option of sending two Billing calculations and service level enrollment; implications for demand response bill credits / energy saving calculation
separate bills Implication of TOM decision: The various CCA billing options under consideration could directly impact levelized payment plans
Change implied from BPD: Significant energy usage view enhancements will bring deeper energy usage insights, customized alerts
and notifications (e.g. Smart Payment reminder), updated energy consumption views, comparison with neighbors, and updated bill
CCA customers will be the norm by 2025 and
Digital usage breakdown views;
will be treated as a key customer group Implication of TOM decision: As CCAs become the norm, bill and usage forecasts are presented and calculated to customers
should consider these customers
51
Identified target operating model implications: low impact (1/2)

We will strategically explore various CCA billing Change implied from BPD: ENTITY users (customers, agents) can simulate bill forecasts and compare rates via self-service
options, including the option of sending two Billing Implication of TOM decision: As CCA customers become the norm, the degree to which bill and usage forecasts are presented
separate bills and calculated to customers should be considered
Change implied from BPD: Service requests for managing disconnections, reconnections, and outages will now be completed
Device
We will offer 1-hour appointment windows for Management & through SAP
emergency and non-emergency requests Implication of TOM decision: Service request should support 1-hour appointment windows and delimitate between emergency
Field
and non-emergency requests
Change implied from BPD: Campaign design, execution, and effectiveness/reporting will be consolidated into one system,
We will communicate existing ENTITY initiatives
bringing a handful of capabilities such as deeper integration across channels, real-time campaign tracking, A/B testing support,
and activities to ensure ENTITY customers have automation of marketing processes and more
personal and positive experience with our Implication of TOM decision: Decision of creating a ‘personal and positive’ ENTITY brand experience will impact the allocation of
brand Marketing and resources and budget to different campaign / marketing initiatives
Communications
Change implied from BPD: Marketing reporting, effectiveness, and analytics will be consolidated and integrated In one primary
We will use Priority KPIs to measure and
system, enabling tracking of campaign effectiveness, ROI, acquisitions, leads, etc.
communicate strategic outcomes to drive
Implication of TOM decision: Holistic view of marketing measures (including access to standard KPIs to help track marketing
informed decisions
spend, effectiveness, and performance) will introduce additional KPIs to manage and track alongside priority KPIs
52
Identified target operating model implications: low impact (2/2)

Change implied from BPD: Customer communication preferences and interactions will now be stored in a single system of
record, providing an integrated way to see all communication sent to the customer; A single platform can now be used to
Service communicate and respond to customers on certain channels
We will prioritize the following channels: (1) Implication of TOM decision: Prioritization of selected channels could be managed and monitored through newly integrated
Mobile App, (2) Voice, (3) SMS, (4) Digital system
Assistant, and (5) MyAccount to support
A range of adoption and engagement Change implied from BPD: Changes to online account preferences and management including delegation access, enhanced
strategies across priority channels will be used security questions, and account linking provide new opportunity for customers to edit and update preferences
to manage (i.e. shift) customer interactions and Digital
Implication of TOM decision: Increased autonomy and enhanced capabilities for customer online account settings and account
contacts. preferences should be managed via selected priority channels
Change implied from BPD: Formal customer complaints to ENTITY or to the ENTITY will now be stored in one system of record
We will use Customer Effort Score to measure and will be integrated with customer records / interactions
Service
performance across customers Implication of TOM decision: Consolidated insight into customer complaints and interactions history highlights potential pain
points to address when assessing customer effort
Billing Change implied from BPD: Systems responsible for managing and enrolling customers in demand response programs will
undergo further consolidation, with some processes becoming automated; Deeper integration of EV self-service options and
We add value to customers by connecting them
capabilities within My Account
to relevant energy offerings
Digital Implication of TOM decision: Customer understanding and enrollment of these offerings could impact any potential customer
effort score metrics
53
Operational improvement
Operational improvement: context and overview

• Obtain a longlist of people, process, and technology issues in current-state business • Consolidated roadmap of prioritized initiatives (quick win and TOM)
• Identify a list of quick-win initiatives and associated framework to support • One-pager overview for initiatives identified
operationalization
• Develop a consolidated, prioritized roadmap across people, process, and technology to
support the achievement of the target operating model


Transformation
55
Over four months we worked closely with the business to define the
future state of the Customer Services operating model
Vision workshops Idea Gathering sessions Stakeholder interviews

Gather input from Customer Service Gather input from 90+ employees on how Gather input from 25+ ENTITY Customer
leadership as to the future direction to achieve CS vision Service stakeholders
Market assessment Customer services baseline Call listening

Understand of the market changes that Understand the operations of Customer Identify quick win operational improvement
need to be considered to 2025 Services today opportunities
56
Across the various inputs, we synthesized 1000+ responses into

potential initiatives aligned to operating model components
Attendees from customer services joined us to share their view on how we can build for the future
26 8 6 9 3
Representation
Stakeholders
Customer care Business services Customer Programs Dispatch Pricing
90+ Sessions
30+ 1000+
Inputs
2 28 4 3 8 1
CSF & Smart Metering Customer Operations Digital Electric Meter Smart Meter Rate Reform
Responses were synthesized into 100 initiatives… …Some technology responses are already being considered as part of ENTITY… …Then split by execution time
Initiatives were categorized into the operating model components Initiatives were analyzed for impact on Initiatives were then examined for Operating model initiatives
People, Process, and Technology resolution through ENTITY work
 Strategic in nature
Customer
Channels 1 2 3 % initiatives covered by ENTITY:  Requires more resources and
Brand and Communications investment
Offerings  Longer-term benefits

People and Organization 17%
Tech and Data Quick win opportunities
38%
Governance  Quickly deployed within 6
weeks
Process and Policy 29%
Performance metrics  Requires modest resources
Culture and values and investment
0 5 10 15 20 25
45%
 Visible, near-term benefit
# Responses
57
Each opportunity was assessed to determine its feasibility and

alignment to Customer Services’ goals
Using the methodology, we selected the top 10 opportunities based for

1 Strategic alignment criteria potential operating model and quick win initiatives
Operating model initiatives Quick win opportunities
The strongest initiative should… The strongest opportunity should…
Drive a simple Be controllable by

Put digital first
experience CS Drives organizational
Drives a simple experience
Drive organizational Promote wider service efficiency
efficiency offering
2 Operational feasibility criteria
Is there a positive impact to the organization?
Can we implement a solution in our current organization?
How much capital expenditure / system changes are required?
58
Based on our assessment, we prioritized the top 10 quick win

initiatives
Assessment of quick win opportunities based on strategic # Initiative

alignment and operational feasibility
Quick win
A There is not a consistent enforcement of payment collection protocols on residential customer accounts
9
A
Higher
C
B Customers do not consistently receive call-backs when they have been requested
3 F8 1
B
7 E D C There is not a consistent application of sharing information about 211 energy assistance with customers
6 G
J 5 2
4 H Terms and Conditions being shared with customers are dependent upon ESS agents reading out a hand-
D
Strategic alignment
I
10 printed note including those T&Cs
E ESS agents are spending a long time on calls walking customers through actions to perform on ENTITY.com
F Customers do not receive confirmation alerts that account changes made online have completed
successfully, which results in multiple calls into the call center
G There are multiple instances of scam ENTITY calls to business customers
H Service order comment boxes have very low character limit
I Contact information is not consistently collected on calls with business customers

Lower
J Required payment amounts for customers are not clear during service reconnection
Lower Operational feasibility

Higher
59
Based on our assessment, we prioritized the top 10 operating model

initiatives that have been identified by the business
Assessment of operating model initiatives based on strategic # Initiative

Operating model initiatives
1 Establish a performance framework – including KPIs – across the business to deliver the CS vision
9
Higher
C A
2 Build flexibility to achieve 1-hour field appointment windows
3 F8 1
B
7 E D 3 Consider the use of multi-skilled vs specialized agents
6 G
J 5 2
4 H 4 Invest in actionable segmentation to define service strategy for different customer types
Strategic alignment
I
10
Implement the use of a consistent continuous improvement methodology to drive operating model
5 initiatives
6 Make the bill more simple, user friendly and easier to understand
7 Route customer to the correct agent through the IVR
8 Promote the usage of self-service to customers
9 Default customers to paperless billing

Lower
10 Create personalized service offerings and recommendations through predictive analytics

Higher
60
A consolidated Target Operating Model roadmap was developed

based on the initiatives identified
Quick wins
effortless service experience Simplify the credit card payment process for customers
Auto-enroll customers in text alerts and notifications for Introduce voice support (i.e. Alexa, Siri, Google) for 2 use cases through voice
outage and high bills channel
We prioritize digital solutions for our team Improve presence on social media (I.e. Twitter & Facebook)
Implement a chatbot-like assistant on the current website to handle a broader set of questions,
and our customers Promote the usage of self-service to customers integrated with customer accounts
Establish a consistent process for updating
information on the website
Identify areas and opportunities to increase automation to support
workflow of field / ESS agents
Document and communicate roles and responsibilities for improving
We believe service starts with trusted team CX to all employees within Customer Services
Provide opportunities for employees to shadow, visit other departments, attend
offsite, conduct field ride alongs
61
Target operating model roadmap: key people-focused

People Process Technology
initiatives
Quick wins
Note: some initiatives mapped to people/process/technology categories
62
Target operating model roadmap: key process-focused

initiatives
Quick wins
63
Target operating model roadmap: key technology-focused

initiatives
Quick wins
64
Implement a voice of the customer platform, which has the ability to

measure customer effort score
Sponsor: PERSON Owner: PERSON Kickoff: 19Q1 Duration: Long
Hypothesis Potential Solution Activity timeline Status Owners
Develop business case for VoC platform
and explore platform options ● AF
 Currently, there is no set platform for ENTITY to solicit
feedback from customers regarding their recent transaction or
experience with ENTITY
 Implement a voice of the customer
platform, which has the ability to
Outline VoC inputs/outputs, survey
attributes, implementation plan, etc ◑ AF
◔
 A voice of the customer platform would enable ENTITY to measure customer effort score and
Deploy VoC platform across the
review and analyze customer feedback across the business capture additional customer attributes AF
business
and address customer comments through additional outreach (e.g. channel / journey / segment)
or new initiatives Analyze and measure customer input,
identify improvement opportunities  -
 Need identified
◔ Owner defined
◑ Work initiated
◕ Early rollout
● Full rollout
Risks Dependencies Impacts

H Cost (e.g. materials, systems, labor) H Benefits (customers, employees, business)
 Some dependencies with IT to

 Success of VoC platform requires integrate platform with existing ENTITY  Resource costs required to design,  Greater insight into service and
ongoing effort to assess, analyze, and systems and store customer responses implement and maintain solution offering improvement opportunities
gather actionable insight from VoC (if applicable)  Vendor technology costs associated  Additional input for regulatory
platform data  Capabilities of VoC platform with sourcing / using platform discussions
dependent on vendor  Resource costs required to  Potential longer term lift in customer
analyze/assess outputs of VoC sentiment and brand / reputation
65
Make the bill more simple, user friendly and easier to understand

Perform assessment of bill to
understand improvement
opportunities
 -
 Currently there are ~18K calls each month to the contact
center related to bills  Identify opportunities to make the bill Identify system / technology
 There is an opportunity to make the bill more simple, user more simple and easier to understand, dependencies that impact bill format  -
friendly, and easier to understand without making significant changes that
Propose billing changes based on
 A simpler bill that is easier to understand could reduce the drive additional billing inquiries or impact and feasibility  -
number of customer inquiries (e.g. calls, live chats) related to customer contact volume
Implement changes by working with
understanding their bill
internal/external stakeholders  -
 Need identified
◔
Owner defined
◑ Work initiated
◕ Early rollout
● Full rollout

M Cost (e.g. materials, systems, labor) M Benefits (customers, employees, business)
 Significant technological / system

dependencies, as capabilities may limit  Resource costs required to perform
 Any design changes to the bill present possibilities of any visual changes to initial assessment, identify
the risk of increased call volume  Reduction in customer inquiries
bill improvement opportunities, and regarding billing
 CCA billing still under consideration
 Potential regulatory implications when support any changes to bill format  Increase in customer sentiment /
making billing changes  Potential investments in systems if effort score
additional capabilities are required
66
Simplify the credit card payment process for customers
Sponsor: PERSON Owner: PERSON Kickoff: 20Q1 Duration: Medium

Understand customer pain points with
existing credit card payment process  -
 Customers are increasingly opting for credit card payments,  Provide deeper integration of credit
Design and develop solutions to
with average monthly number of credit card payments card payments with ENTITY and
addressing customer pain points  -
increasing 16% from 2017 to 2018 BillMatrix (e.g. My Account integration,
 Currently, ENTITY offers credit card payments exclusively ESS payments over the phone) Work with appropriate stakeholders
through BillMatrix, which charges a convenience fee for each  Look to new platforms that could and teams to deliver the solution  -
transaction, limits autopay and offering options, and requires support more convenient payment Measure customer sentiment and
payment through an external channel options for customers effort for payments / credit card  -
 Need identified
◔ Owner defined
◑ Work initiated
◕ Early rollout
● Full rollout

 Customer adoption of more costly

credit card payments likely if made  IT resources to support and systems
changes that could be required  Operational costs vary depending on
more convenient solution, but could be significant if  Lift in customer sentiment and
 Solution(s) dependent on payment
 No other major risks identified, but processing companies (e.g. BillMatrix, change requires new systems or customer effort
any specific risks dependent on absorption of convenience fees  Potential reduction in late payments,
solution(s) developed SpeedPay)
 Resource costs required to support bad debt, etc.
implementation of initiatives
67

Identify root-cause of incorrect agent
routing through the IVR  -
Develop solution based on root-cause

 There is an opportunity to increase the effectiveness of IVR  While additional work is required to
analysis  -
routing when the customer calls the contact center identify a solution, a potential initiative
 Currently, a number of calls are being routed to the incorrect could include re-vamping the existing Work with appropriate stakeholders to
agent resulting in additional call transfers and longer wait IVR to better service customers and implement changes outlined  -
times for customers support their needs Measure effectiveness of solution
implemented  -
 Need identified
◔ Owner defined
◑ Work initiated
◕ Early rollout
● Full rollout

M Cost (e.g. materials, systems, labor) H Benefits (customers, employees, business)
 Timing of changes should align to  Potentially requires integration with

ENTITY roadmap IVR systems  Initial investment of resources  Reduction in number of customer
 Updating IVR presents additional risk  Resources required to assess existing required to perform assessment and transfers
for maintaining system uptime and IVR tree, identify painpoints, and design proper solution  Reduced customer wait time when
latency develop solution (e.g. updated IVR)  Systems investments potentially calling contact center
required if changes are significant  Potential increase in IVR containment
68

 Existing Customer Services field operations appointment

Assess customer impact of existing
field appointment windows ◔ LD
 Build flexibility across ENTITY’s

windows are considered a significant customer pain point
given the broad appointment window slots when customers
request an appointment
Customer Service organization to
support more convenient appointment
Assess financial impact to shifting
toward 1-hour appointment window ◔ LD
windows, with time slots as short as 1- Develop formal business case,

 As customer preferences and needs evolve, the need for
hour for both emergencies and non- including detailed rollout & timeline  -
shorter, more convenient appointment windows will become
emergencies Communicate and execute rollout plan
essential to achieve the ENTITY TOM
for shorter appointment windows  -
 Need identified
◔ Owner defined
◑ Work initiated
◕ Early rollout
● Full rollout

 Potential for operational costs to  IT enablers and technologies (e.g.

significantly exceed budget WAM, proactive notifications)  Significant impact to number of FTEs
and field resources required  Customer sentiment and satisfaction
 Increased customer expectations  Resources required for business case
require improved forecasting and development and feasibility  Technology and system updates lift
dispatch capabilities assessment potentially required  Faster responses times for other
 Significant overhaul likely required for operational field / emergency requests
field service dispatch process
69
Deliver a consistent experience across channels (e.g. Mobile App and

MyAccount) for customers
Identify experience gaps between
Mobile App and My Account; develop
business case based
 -
 ENTITY customer usage of online service functionality such as
Mobile App and My Account continue to rise as web and  Deliver a consistent experience across Refine solution requirements and
mobile become increasingly popular channels channels (e.g. Mobile App and capabilties required  -
 The current customer experience of using the ENTITY website MyAccount) for customers by closely
Work with IT/digital teams to integrate
varies compared to the mobile app (e.g. different functionality aligning capabilities between web and changes across channels  -
and capabilities). As a result, there is an opportunity to deliver mobile
a more consistent experience across these channels Measure and assess performance  -
 Need identified
◔ Owner defined
◑ Work initiated
◕ Early rollout
● Full rollout

H Cost (e.g. materials, systems, labor) M Benefits (customers, employees, business)
 Significant dependence on IT and

 Initiative could become costly to associated systems to support desired  Potential lift in customer sentiment /
maintain on an ongoing basis as  Significant IT and digital resources customer effort score
capabilties grow on both channels capabilties across both channels
required to align capabilties and  Drives adoption of cheaper, more
 ENTITY roadmap and capabilties need
 Performance and latency could be to be considered as part of this
experience between the two channels efficient digital channels
impacted as customer volume grows initiative  Additional resources required to  Supports training proficiency with a
support initiative on an ongoing basis consistent set of capabilties across
channels
70
Introduce voice support (i.e. Alexa, Siri, Google) for 2 use cases
through voice channel
Develop business case for introducing
support for a handful of use cases on
voice platform of choice
 -
 Next generation voice and digital assistance, such as ENTITY Design solution, including solution
Alexa, Siri, and Google Home, are growing in popularity  Introduce voice support (i.e. Alexa, Siri, requirements and conversational flows  -
 While these technologies are still in nascent stages, an Google) for 2 use cases through voice
Work with stakeholders (e.g. IT) to
opportunity exists for ENTITY to begin piloting and prototyping channel develop and build solution  -
with these emerging channels
Measure adoption and conduct benefit
realization  -
 Need identified
◔ Owner defined
◑ Work initiated
◕ Early rollout
● Full rollout

 Technology is still early, presenting  IT resources required to develop,

some unknowns such as adoption, rollout, and maintain solution  IT resources and systems (some
security/privacy, long-term relevancy,  Integration with third parties (e.g. potentially new) required to develop  Development of brand and reputation
etc present additional risk ENTITY, Google, ENTITY) could be solution  Potential lift in customer sentiment /
reduction in customer effort score
 Maintenance of additional channel required to support and rollout  Additional resources required to
introduces operational support risk implementation design solution and prioritization of  Potential reduction in customer
initial use cases service inquiries
71
Auto-enroll customers in text alerts and notifications for outage and

high bills
Sponsor: PERSON Owner: PERSON Kickoff: 19Q3 Duration: Short
Validate scope, feasibility, and impact
of auto-enrollment of notifications  -
 Customers are increasingly opting for SMS text notifications  Automatically enroll new and existing Define phased approach and solution
for critical alerts such as outages and unusually high bills customer with an eligible cell phone to auto-enrolling customers  -
 Currently, ENTITY has automatically enrolled customers in number in text alerts for outages
Work with IT to determine batch
outage alerts on email channels, as a result, an additional  Automatically enroll new and existing enrollment process for notifications  -
opportunity exists to proactively enroll customers in outage customers with eligible email addresses
Monitor post go-live metrics (e.g.
text alerts, as well as high bill alerts in high-bill alerts
customer sentiment / inquiries)  -
 Need identified
◔ Owner defined
◑ Work initiated
◕ Early rollout
● Full rollout

L Cost (e.g. materials, systems, labor) H Benefits (customers, employees, business)
 Regulatory and data privacy risks with

using customer phone numbers and  IT resources required to auto-enroll
eligible customers in outage/high bill
email addresses alerts  Reduced customer contact given auto-
 Potential customer pushback with  No significant costs required other enrollment of proactive notifications
auto-enrollment of certain  System capabilties to support batch initial resources required auto-enroll
enrollment customers  Increased in customer sentiment /
notifications associated customer effort score
72
Introduce text alerts for account changes (e.g. bills reminders &
alerts, field service status)
Align with ENTITY roadmap on planned
capabilties for alerts  -
 Customers are increasingly opting for notifications to manage Outline business case for key
their energy usage and receive up-to-date information on
 Provide notifications (through mediums
transactions that would support alerts  -
such as SMS text, mobile, and email) for
account changes and updates
key service transactions such as bill Define full solution and work with
 A handful of customer contact is related to customers calling
reminders, field service status, and stakeholders to implement solution  -
in to confirm that recent self-service transactions were
other service requests Measure adoption of alerts for initial
successful, as no confirmation notice was ever sent
transactions mapped  -
 Need identified
◔ Owner defined
◑ Work initiated
◕ Early rollout
● Full rollout

 IT resources required to support  Systems costs required to

 Introducing additional capabilties implementation and maintenance of development and implementation of  Potential lift in customer sentiment /
potential to impact system alerts notifications customer effort score
performance and latency  Multiple systems required for  Technology costs related to delivery of  Reduction in customer contact volume
integration notifications related to self-service transaction
 Resource time required to develop and confirmations
implement solution
73
Improve presence on social media (I.e. Twitter & Facebook)

Identify improvement areas for
ENTITY’s social media presence ● CI
 A considerable amount of ENTITY customers use social media  Execute the social media strategy and
channels today
 An opportunity exists to improve presence on social media
VoC refresh that was focused on
listening and responding on social
Define approach and strategy for
improving presence on social media ◕ CI
through 1) listening, monitoring, and responding to customer

questions and complaints, 2) promote customer awareness of
platforms, support branding, engaging
with influencers, and support selling
Executive and implement social media
strategy refresh ◔ CI
ENTITY offerings/services, and 3) build ENTITY’s brand through products and servicing customers by
relevant content and campaigns leveraging social media platforms. Assess performance and results of
revamped strategy ◔ CI
 Need identified
◔ Owner defined
◑ Work initiated
◕ Early rollout
● Full rollout

 Marketing and communication drives  Significant resources required to  Development of brand and reputation
 Expansion of another channel for most social media strategy monitor, respond, and address  Potential lift in customer sentiment /
customer service could prove  Some technology / IT tools potential customer inquiry reduction in customer effort score
challenging to manage required to support social media
strategy  Some system tools likely required to  Adoption of value-add offerings
support engagement on social media  Deeper understanding of customer
and monitor results sentiment and feedback
74
Implement a chatbot-like assistant on the current website to handle

a broader set of questions, integrated with customer accounts
Develop business case for introducing
conversational assistant to handle
general FAQs
 -
 Implement a chatbot-like assistant on
 Customers across industries are increasingly preferring more
the current ENTITY website to handle a Design solution, including solution
convenient self-service support and tools
 Customers are increasingly starting service requests online
broader set of questions, support requirements and conversational flows  -
customer self-service transactions by
and a conversational assistant provides the opportunity to Work with stakeholders (e.g. IT) to
support customers with the service needs, while also
integrating directly with customer develop and build solution  -
accounts, and deflect customer
deflecting potential customer contact into the contact center Measure adoption and conduct benefit
calls/live chats into the contact center
realization  -
 Need identified
◔ Owner defined
◑ Work initiated
◕ Early rollout
● Full rollout

 Conversational technology is still early,

presenting some unknowns such as  IT resources required to develop,  Initial IT resources required to  Potential lift in customer sentiment /
adoption, security/privacy, long-term rollout, and maintain solution reduction in customer effort score
integrate solution into ENTITY website,
relevancy, etc  Third-party platform likely needed to customer accounts  Potential reduction in customer
 Preference for digital assistance varies support initiative service inquiries, as assistant will help
across customer base  Technology costs associated with deflect calls to more cheaper self-
sourcing and using platform service transactions
75
Promote the usage of self-service to customers
Sponsor: PERSON Owner: PERSON, PERSON Kickoff: 19Q2 Duration: Long

As part of continuous improvement
methodology, identify areas to drive
self-service usage and functionality
 -
 Customers across industries are increasingly preferring more

 Promote the usage of self-service to (If applicable) work with IT and
convenient self-service support and tools
 As ENTITY and other initiatives across the business bring
customers by increasing technology teams to develop specific
self-service functionality desired
 -
functionality/capability of service tools
additional self-service functionality, there is an opportunity to
and communicating the benefits to Align with marketing and
increase the current self-service usage among customers by
promoting certain capabilities and services
customers communications on campaigns and
communication efforts
 -
 Need identified Owner defined Work initiated Early rollout Full rollout

 Self-service functionality / benefits do  Marketing and communications

not align to all customer preferences resources required to promote self-  Upfront costs required to identify
areas to build-out additional self-  Reduction in customer care and
 Regulatory implications with service capabilties contact costs
exclusively offering self-service  IT resources required to enhance and service functionality and associated
functionality for some transactions support new self-service capabilities promotion of that functionality (both  Increased customer sentiment /
customer effort score
labor and systems)
76
Establish a consistent process for updating information on the

website
Sponsor: PERSON Owner: PERSON Kickoff: 19Q4 Duration: Short
Understand existing process of
updating and changing website;
identify any potential process  -
• The ENTITY website is primary resource for customers to breakdowns
receive information and service • Establish a structured governance
• Based on employee and customer feedback, the ENTITY process for updating the information on Design solution to maintain website
website often contains information that is out of date or is not the ENTITY website to ensure it is
with most up-to-date information and
remove outdated / inaccurate info
 -
consistent across pages, confusing customers and driving accurate and up-to-date for customer
Work with appropriate stakeholders to
volume to the contact center
rollout and implement changes  -
 Need identified
◔ Owner defined
◑ Work initiated
◕ Early rollout
● Full rollout

 IT resources and groups that have

direct access to making changes to the  Resource costs required to perform
ENTITY website initial assessment, as well as  Potential reduction in customer
 No major risks identified supporting the initiative on an ongoing contacts
 Limited accountability / ownership of
website information introduces basis  Potential lift in customer sentiment /
additional complexity  No major technology or systems effort scores
investments are expected
77

Identify business processes and
resources needed for support  -
 Customers are increasingly opting for paperless billing, with Understand potential business and
latest adoption among ENTITY customers at ~55%
 Default all new customers to paperless
regulatory implications  -
 Currently ENTITY defaults customers to a paper bill rather than
billing; with the eventual transition of Validate rollout of paperless billing
a paperless bill, presenting an opportunity to realize additional
all customers to paperless billing (e.g. phased approach or complete)  -
operational efficiencies, while better aligning to customer
Work with appropriate stakeholders to
preferences
implement change  -
 Need identified
◔ Owner defined
◑ Work initiated
◕ Early rollout
● Full rollout

 Potential impact to customers who  IT resources to support

prefer receiving paper bill
implementation  Operational efficiencies (e.g. postage,
 Potential regulatory implications  No major cost implications, other than stationary savings)
 Potential risk of data quality of  Regulatory understanding of default resources required to make the
paperless delivery addresses
customers to paperless bills change across the business  Potential customer sentiment lift /
customer effort score
78

Sponsor: PERSON Owner: PERSON, PERSON Kickoff: 19Q3 Duration: Medium
Review existing workflow of field/ ESS
agents to identify ◑ LD/TC
 Existing workflow of field and ESS agents consists of a handful  Work with field and ESS agents to Identify areas for automation based on
of repetitive manual tasks that take up resource time and understand manual tasks that take up feasibility and potential benefit  -
drive inefficiencies considerable amount of time and
Outline automation solution, including
 An opportunity exists to automate certain aspects of field /
ESS agents workflow to free-up resource time to service
identify potential ways to support their
workflow through automation solution
scope, timeline, and those accountable  -
customers (e.g. RPA, artificial intelligence, etc.) Develop formal business case to
implement automation solution(s)  -
 Need identified
◔ Owner defined
◑ Work initiated
◕ Early rollout
● Full rollout

 Assessing automation of certain tasks  No major dependencies, although  Supports field / ESS agent efficiencies
could be seen as controversial by capabilties of existing systems may  Resource costs required by freeing-up resource time to service
outside parties impact  Additional costs would be required as additional customers
part of full deployment (e.g. systems,
training for process change etc.)  Potential to service more customers /
reach customers more quickly
79

CX to all employees within Customer Services
Sponsor: PERSON Owner: TBC Kickoff: 19Q3 Duration: Short
Define future-state organizational
structure and key processes  -
 In order to achieve the Customer Services TOM, employees Define future-state roles and
must have clear direction and hindsight into their roles and  Develop and document organizational responsibilities based on updated
organizational design
 -
responsibilities for improving the CX RACI for Customer Services to support
 Today, there is no clear RACI defined for the Customer Services the improvement of the Customer Communicate roles and responsibilities
organization and an opportunity exists to clearly document experience with organization  -
and communicate respective roles and responsibilities
Refine RACI on an ongoing basis  -
 Need identified
◔ Owner defined
◑ Work initiated
◕ Early rollout
● Full rollout

 Success dependent on effective  Validated future-state organizational  Supports organizational efficiency and
communication and adherence to design along with capability and  No major costs identified, other than agility
Customer Services RACI process maps resources required to support and  Potential lift in employee engagement
manage initiative (e.g. retention, efficiency, sentiment,
morale, etc.)
80
Create a "Voice of the Employee“ (VoE) platform and process of

soliciting ideas across the organization
Sponsor: PERSON Owner: TBC Kickoff: 20Q1 Duration: Medium
Validate scope and requirements for
VoE platform  -
 The Customer Services TOM objective states that service starts
 Create a “voice of the employee” Identify solution (e.g. integrate with
with trusted team members who are empowered to help
platform and process to solicit ideas VoC or source new VoE platform)  -
across the organization. This would
 Soliciting ideas and suggestions across the organization Integrate inputs from VoE platform into
through a structured and formalized process/platform
serve as an input for the identification TOM delivery methodology  -
of initiatives under the target operating
provides the opportunity to receive input from employees and Measure adoption and success of VoE
drive empowerment
model deliver methodology.
(e.g. number of submissions, etc)  -
 Need identified
◔ Owner defined
◑ Work initiated
◕ Early rollout
● Full rollout

 Some dependency with IT; however,  Initial system / resource investments  Potential lift in employee engagement
varies based on support of existing vary based on solution (e.g. integration (e.g. retention, efficiency, sentiment,
 No major risks identified Voice of Customer platform currently with VoC or sourcing new platform) morale, etc.)
under development  Resources required for determining  Identification of additional operational
solution and supporting / customer benefits (e.g. operating
implementation of VoE platform efficiencies, customer sentiment)
81
Provide opportunities for employees to shadow, visit other

departments, attend offsite, conduct field ride alongs
Sponsor: PERSON Owner: TBC Kickoff: 19Q2 Duration: Short
Identify key business impacts to
operationalizing initiative  -
 Providing learning and development opportunities to
Design solution to manage employee
employees – such as job shadowing, visiting other  Develop a formal, structured process
requests and  -
departments, and conducting field ride alongs – would that provides the opportunities for
support the empowerment of employees, while providing employees to shadow, visit other Work across departments to enable
additional insight and context into other department activities departments, attend offsites, conduct opportunities for employees  -
 Currently, ENTITY has no formal way to manage and support field ride alongs Measure employee engagement scores
such employee requests and assess ongoing feedback  -
 Need identified
◔ Owner defined
◑ Work initiated
◕ Early rollout
● Full rollout

 No major costs estimated for  Potential lift in employee engagement

 Potential impacts to managing operationalization of initiative; (e.g. retention, efficiency, sentiment,
staffing / resourcing if volume of  Opportunities will depend on however, ongoing resources required morale, etc.)
availability among other departments to develop and maintain process
requests becomes significant  Potential improvement in training /
 Once live, initiative could present learning proficiency
some ongoing costs, as resources are  Supports identification of new
pulled from day-to-day activities initiatives
82
Implement an automated process to measure days elapsed to

deliver certain offerings, communications, rates
Sponsor: PERSON Owner: TBC Kickoff: 20Q2 Duration: Long
Understand existing metrics captured
 ENTITY’s Customer Services organization has defined
today related to organizational agility  -
organizational agility (e.g. the ability to quickly react to
customer needs and changing market conditions) as a Design methodology and attributes for
component of its TOM  Implement an automated process to capturing each associated metric  -
 Developing a measurement framework for assessing measure key agility metrics, including
Begin capturing metrics, working with
organizational agility performance requires many components, days elapsed to deliver certain offerings,
one of which includes speed to market for relevant products communications, rates and training
IT to automate certain aspects where
appropriate
 -
and services
 ENTITY’s Customer Services organization currently does not Refine measurement process (ongoing)  -
measure metrics related to organizational agility
 Need identified
◔ Owner defined
◑ Work initiated
◕ Early rollout
● Full rollout

 Potential dependency on IT if  Some resource costs required to

 Consistent and effective measurement measurement and tracking of KPIs is identify and design methodology for  Faster speed to market (for new
methodology across each metric measuring delays elapsed to deliver services, offerings, etc)
automated
necessary for assessing performance for certain processes
of TOM achievement  Some agility KPIs could be impacted by  Better tracking of operational and
organizations outside of CS  Depending on desire level of organizational efficiencies (e.g.
automation, some IT resources could identification of backlog)
also be needed
83
Establish a performance framework – including KPIs – across the

business to deliver the CS vision
 In order to achieve the target operating model, a set of critical

 A handful of KPIs that capture
Establish primary / secondary KPIs that
will be used to deliver the CS vision ◕ SC
operational metrics across the business

KPIs should be measured to track and assess performance
 These KPIs should also capture operational metrics that
support TOM initiatives and projects
to support the achievement of the
target operating model
Define and identify necessary data and
metrics across the business ◔ CG
◔
 An automated dashboard that Develop dashboard that captures and
 In addition to developing the KPIs, a structured process and CG
integrates with existing governance socialized KPIs and metrics identified
governance framework needs to be established to support the
forums to help measure performance
rollout of the performance framework in a sustainable manner Deploy, integrate, and operationalize
and drive change across the business dashboard across the business  -
 Need identified
◔ Owner defined
◑ Work initiated
◕ Early rollout
● Full rollout

 IT to support capturing and measuring

 Some KPIs could take additional time some KPIs  Continuous tracking of critical KPIs
to define and capture given their  Some technology resources including supports reporting efficiencies (both
 Data scientists to support data labor to develop the dashboard
 Decentralized data across the business management ad-hoc, TOM, and BAU)
could increase measuring and  System / infrastructure costs expected  Rapid identification and tracking of
reporting complexity  Data analysts to drive analysis and to be marginal given existing
reporting initiatives to drive KPI performance
environment across the business
84
Consider the use of multi-skilled vs specialized agents

Identify potential benefits and use
cases for more specialized agents  -
 ENTITY currently handles approximately 1.5M calls a year  Perform an analysis to determine the Determine additional costs and
through its contact center, primarily using multi-skilled agents benefits and operational feasibility of training requirements  -
to handle a variety of calls using multi-skilled vs specialized agents
Understand and map skills-based
 There could be a potential opportunity to handle some calls  Identify potential use cases to use routing capabilities of existing IVR  -
through more specialized agents that can provide more specialized agents vs multi-skilled
tailored service due to their expertise in a specific skill set agents Develop formal business case,
including cost-benefit analysis of
operational metrics/KPIs
 -
 Need identified
◔ Owner defined
◑ Work initiated
◕ Early rollout
● Full rollout

 No major risks if performing initial
assessment; however, full rollout  Skills-based routing would require  Moving to more specialized agents
would introduce operational risks to some dependency on systems (e.g.  Resource costs required to perform could result in greater customer
analysis of using multi-skilled vs
the contact center including potential IVR) sentiment as agents can provide full
specialized agents issue resolution in one call
for higher number of transfers and  Additional training would be required  Additional costs would be required as
increased staffing / work force to develop required specialization part of full deployment (e.g. systems,  Less training required for specialized
management coordination training, etc) agents on an ongoing basis given their
more narrow scope
85
Work with HR to assist in organizational re-design efforts that

improve efficiency, structure, and function
Sponsor: PERSON Owner: Customer Services Leadership, HR Kickoff: 19Q1 Duration: Long
◕
Assess current organizational,
identifying opportunity areas based on CS/HR
TOM vision and strategy
 There is an opportunity to improve the existing organizational
structure to improve efficiency and effectiveness
 ENTITY would benefit by aligning its organizational structure
 Design an organization that improves
efficiency, structure, and function of the
business, while supporting the
Design high-level organizational
structure for achievement of TOM ◕ CS/HR
◔
to support articulated Target Operating Model vision and achievement of the target operating Work with HR to implement and
strategy model execute detailed organizational CS/HR
structure (ongoing)
 Need identified
◔ Owner defined
◑ Work initiated
◕ Early rollout
● Full rollout

 If re-design efforts are not executed  Organization in place to deliver

properly certain capabilities or  Alignment with ENTITY timeline &
benefits case operating model strategy
activities may be hindered  Cost anticipated for strategic hires to
 Alignment with corresponding enable operating model capabilities  Future state strategic opportunities to
 Role realignment for existing staff may business units such as IT to support re- attract / retain HiPo talent
result in required upskilling and  Cost associated with any upskilling or
knowledge transfer design outcomes training for new roles  Optimized alignment of resources to
deliver services & enable new
capabilities as a result of ENTITY
86
Implement the use of a consistent continuous improvement

methodology to drive operating model initiatives
Develop methodology and framework
to support continuous improvement ◑ BB
 A structured, continuous improvement methodology that Identify owners and accountable

supports initiatives from identification to execution can drive
 Develop a continuous improvement
model across Customer Services that stakeholders to support CI  -
organizational agility and achievement of the Customer
supports the operationalization of Develop measurement framework to
Services TOM
 Today, there is no consistent process that drives accountability
initiatives to deliver incremental support CI methodology  -
improvement overtime
of initiatives across Customer Services Implement methodology across
organization  -
 Need identified
◔ Owner defined
◑ Work initiated
◕ Early rollout
● Full rollout

 Resources required to standup and

support the CI methodology on an  Faster speed to market (for new
 Some process changes required, ongoing basis services, offerings, etc)
potential impact to BAU  Initial resource time required to design  Improved customer sentiment and
 Potential integration with other and setup CI model and methodology
organizations outside of Customer across the organization employee empowerment
Services (e.g. IT)  Better tracking of operational and
organizational efficiencies
87
Implement a method to measure first contact resolution that the

business has confidence in
Develop business case for moving
 First contact resolution is a critical driver toward customer toward first contact resolution  -
effort score
Design methodology for measuring
 Industry leaders are moving to first contact resolution, which
 Implement a method to measure first
FCR across channels  -
trackers resolution attempts across all channels rather than
first call resolution, which is focused exclusively on call center contact resolution that the business has Work with IT to develop and deploy
performance confidence in system to track FCR across channels  -
 Tracking first contact resolution will be a key driver for creating Compile and assess results, continue to
an effortless customer experience and achievement of the develop and evolve FCR methodology  -
TOM
 Need identified
◔ Owner defined
◑ Work initiated
◕ Early rollout
● Full rollout

 Significant system resources required  Gathers insight for targeted actions

 Success of measuring FCR will be to track customer contacts across channels that reduces
require ongoing maintenance as new  ENTITY is set to bring new capabilities
capabilties and functionality is
across channels and could impact  Resources required to define FCR customers effort
rollout of FCR measurement methodology across channels  Potential lift in customer sentiment /
introduced across channels
 Resources required to capture and reduction in customer effort score
measure customer FCR across  Greater efficiency across customer
channels service organization
88
Invest in actionable segmentation to define service strategy for

different customer types
Sponsor: PERSON Owner: TBC Kickoff: 19Q3 Duration: Long
Understand existing customer behavior
and data attributes ◔ DS
 An opportunity exists to improve the existing segmentation

strategy, by specifically defining and applying customer
profiles that drive action across the business
 Refresh existing segmentation across all
customer types
 Define specific applications of customer
Develop refreshed segmentation based
on Customer Services TOM ◔ DS
 There is an opportunity to further apply customer profiles Outline applications of segmentation

across organizational design, service strategy, offerings,
profiles and segmentation across the and supporting processes  -
business
performance measurement, and much more Integrate segmentation with existing
systems and processes  -
 Need identified
◔ Owner defined
◑ Work initiated
◕ Early rollout
● Full rollout

 Effectiveness of customer segments  Data analysts resources to support

will be determined by ongoing analysis of customer base
management and refresh of customer  Initial investment required in  Enhanced customer service strategy
 Data scientists resources to support resources to develop segmentation enables more tailored service and
segments data management and collation and integrate into business potentially lifts customer sentiment
 Application of segments requires  IT resources to integrate segmentation  Potential efficiencies through sales and  Improved marketing and
broader coordination outside of CS into systems / records service effectiveness communication effectiveness
89
Simplify program offerings / value prop to make them easy for

customers to understand
Define and outline existing end-to-end
 ENTITY offers many programs and offerings today to
offering portfolio for customer types  -
customers, including demand response, energy efficiency, and Working with regulatory bodies, design
enhanced billing services
 Revamp offering portfolio to make it
the “to-be” offering portfolio  -
 As the offering portfolio has evolved overtime, additional
easier for the customer to understand Integrate and update portfolio with
complexity and duplication of these offerings has been
and sign-up for programs and services existing systems and databases  -
introduced
 As a result, customers do not realize the value that existing Conduct training on revamped
ENTITY programs and services can offer portfolio; monitor post go-live
feedback
 -
 Need identified
◔ Owner defined
◑ Work initiated
◕ Early rollout
● Full rollout

 Varies depending on degree of  Significant regulatory implications

given the existing offering portfolio  Resource time required to assess
changes proposed; however, existing offering portfolio and define  Customer loyalty through additional
additional customer inquiry /volume  Significant systems dependencies if adoption of offerings
portfolio / offerings are revamped or future-state portfolio
at risk given any change to offerings  Potential lift in customer sentiment
overhauled  IT resources required to integrate and customer effort scores
requested changes
90
Create personalized service offerings and recommendations through

predictive analytics
Define current-state and existing
capabilities of next best action/offer  -
 Across channels, update and develop a
 ENTITY currently presents offers and recommendations to next best action/offer engine that Define analytics to capture in next best
customers through next best action on a limited basis presents recommendations to
action model based on existing data
and planned ENTITY capabilities
 -
 There is an opportunity to drive additional customer customers based on propensity
Integrate and deploy recommendation
engagement through personalized recommendations across
channels using more advanced analytics
modeling (e.g. identify those customers
most likely to respond to a service engine across channels  -
offering) Conduct training for contact center

agents on (if applicable)  -
 Need identified
◔ Owner defined
◑ Work initiated
◕ Early rollout
● Full rollout

 Existing systems and data models  Customer loyalty through additional

 Additional system resource would need to support a more  Resource costs to outline and develop adoption of offerings
requirements for personalized service solution
offerings could impact stability and
advanced predictive analytics engine  Potential lift in customer sentiment
latency of existing systems  Resources would be needed to  Potential investments in systems and customer effort score
develop and deploy the solution required to support more robust next  Proactive recommendations
best action / offer capabilities potentially reduces additional
customer contact
91
Customer services transformation
Customer Services Transformation: context and overview

• Validate approach and methodology to deliver the target operating model to support • Continuous improvement process
the desired future customer experience • Governance structure
• Agree on a set process to prioritize and operationalization initiatives as part of a • Governance terms of references
continuous improvement model
• Agree on a governance model and structure to support achievement of the TOM


Transformation
93
People Process Technology The future Target Operating Model roadmap should be
systematically refreshed with new operating model initiatives
Quick wins
94
The target operating model delivery methodology will help us manage the
changes that need to be delivered through the organization
Target Operating Model Delivery: Make it Easy Key questions for today
Identify Diagnose Design Deliver Sustain • What activities take place in each
Identifying initiatives Diagnosing route cause Defining our approach Delivering our solution Making sure the stage?
to pursue and business impact to execution to the business solution sticks
Gather initiatives from Assess the current Define the solution Monitor the results
• How do we manage and govern
Build the solution
multiple sources situation each of these paths?
Test the design Roll out the initiatives
Define and prioritize
the initiatives Develop the business Plan the • How will work flow across the
case implementation organization?
Develop the
measurement • How can we start to put the target
framework operating model delivery
methodology into action?
E.g. Prioritized initiatives E.g. Diagnostic analytics E.g. solution design documents E.g. functional processes E.g. measurement results
TOM delivery
95
Pre-defining a TOM governance structure is key to operationalizing

the initiatives and ensuring efficient implementation
Drive rapid decision-making and prioritization of initiatives
Accelerate a cultural shift in ENTITY’s and Customer Services’ ways of working
Establish ownership and oversight of implementation activities and decisions
Own the Customer Services’ roadmap providing visibility to all programs
96
The Performance Improvement Team will align initiatives with

organization goals, drive greater visibility, and issue management
The Performance
The Performance Improvement Team will:
Improvement Team will not:
• Shape and communicate the transformation agenda in line with Customer Services E.g. converting the need • Set ENTITY’s overall
Shape the performance strategic drivers organization goals or
improvement agenda to be innovative into new
• Facilitate consensus on ENTITY’s transformation goals, both financial and non- product propositions
strategies
financial, and identify opportunities for improvement
• Replace the accountability
• Own the ideation process that will determine the scope of change of functions for delivery of
Determine initiatives to E.g. prioritization against overall business outcomes
deliver performance • Translate transformation goals of the business into criteria to prioritize initiatives budget, strategic
improvement • Establish and monitor a overall performance improvement program plan to track alignment and risk • Approve the progression
initiatives against Customer Services business goals of programs through stage
• Monitor initiatives within the performance improvement program throughout the E.g. reporting progress gates and milestones in
Provide consistent visibility process and summarize the realization of benefits and KPIs against targets through the Executive their respective lifecycles
& oversight • Manage resources and capacity delivering change Transformation (this will only be done at
• Track BAU initiatives to identify required interventions or overlap Committee an Customer Services
initiative level)
• Resolve performance improvement program level interdependencies and
Manage risks, issues and risks/issues and enable escalation and cross-program collaboration where E.g. dependencies
required between Customer
critical dependencies
• Consolidate and coordinate performance improvement program change Services and Technology
management and communication to drive change adoption and support
• Drive definition and implementation of new ways of working across the business E.g. integration of new
Drive process harmonization • Identify improvements and use consistent methods / best practice to support script language in Contact
process harmonization Center
Establish consistent • Use a light touch approach to governance at the program level but mandate E.g. train initiative
performance improvement common standards across initiative level activities managers on consistent
standards • Support knowledge sharing of performance improvement best practices methodology
97
The Customer Services Performance Improvement (PI) Team has

specific roles and activities outlined to drive accountability
PI Team Role Organization Role Accountability Activities
Overall performance improvement within the Customer • Generate buy-in to the Customer Services strategy across
Services Organization, in particular for articulating Customer the business
Target Operating Model
(TOM) Board Chair VP, Customer Services Services strategy into objectives and working with the • Articulate objectives to Customer Services organization
Performance Improvement Team to align prioritized and communicate Performance Improvement program
performance improvement initiatives with strategy successes and progress
Identification and recommendations for technical-related • Provide overall insight on potential impacts, risks, and
Target Operating Model Chief Information Officer impacts and activities from Customer Services strategy and support required from external organizations based on
(TOM) Board Members Chief Marketing Officer performance improvement initiatives Customer Services objectives and Performance
Improvement agenda
• Obtain agreement on Performance Improvement
objectives and prioritization criteria based on input from
Defining and translating Customer Services strategy and Performance Improvement Leader and communicate to
Performance Improvement Customer Services objectives into action; consolidating the inputs from the Performance Improvement team
Performance Improvement Leader and Advisors to develop a
Leadership Team Directors set of measurable goals and priorities to form the • Provide input and guidance to Performance Improvement
team as required to align progress to objectives and goals
Performance Improvement agenda
• Communicate overall progress to the Performance
Improvement Leader
98
The Customer Services Performance Improvement (PI) Team has

specific roles and activities outlined to drive accountability
PI Team Role Organization Role Accountability Activities
• Prioritize initiatives and review with Performance
Improvement Leadership Team
• Update the Performance Improvement program plan to
coordinate execution of prioritized initiatives
Prioritization and delivery of Performance Improvement • Set up the Performance Improvement Initiative Leaders
Performance Improvement
Execution Team Transformation Team initiatives through maintenance of an overall Performance and Execution Teams and track overall progress against
Improvement program plan program plan
• Coordinate SMR input and advice
• Consolidate and communicate overall Performance
Improvement progress to the Performance Improvement
Leadership Team
• Develop the initiative-level roadmaps for assigned
initiatives
Executing and operating the standard processes to manage • Track the status of Performance Improvement initiatives
Performance Improvement Select Customer Services
Initiatives Leaders Operations Managers performance improvement initiative activities and align them along the Performance Improvement process
with set objectives and track against goals • Communicate stage gate completion and escalated
risks/issues for assigned initiatives to the Performance
Improvement Execution Team
• Manage and coordinate the execution of tactical activities
Coordinate tactical activities at the initiative level to develop for the execution of the assigned Performance
Performance Improvement Select Customer Services
Initiative Owner Roles and implement the solution, manage and track initiative Improvement initiative
benefits and progress against goals • Communicate stage gate completion and escalated risks to
the Performance Improvement Initiative Leader
99
Project Plan for TOM – Governance Forums
Objective Key Milestones Dependencies or Risks

This plan focuses on the implementation of the governance  Participant lists finalized for each forum  Securing a regular time for each forum
forums to support the practice of continuous improvement.  Governance forums scheduled  Completion of inputs/work to drive some forums
 Risk identification and escalation process developed  Timeliness and availability of dashboard resources
Actions Week Timing TBC

Mar 4 Mar 11 Mar 18
Key Milestones Participant lists Forums scheduled
Define format of each meeting
Outline objectives and agenda for each meeting
Determine participation level and pre-work required for each meeting
Set up logistics of each meeting
Finalize participants lists
Determine regular location and time for each meeting; send out invites
Develop dashboard
Understand data source(s) and refresh frequency of current dashboard
Assess current dashboard governance and integrate into governance forums
Draft updated front end of dashboard and deploy
Key Milestones
100
Governance Terms of Reference
Terms of Reference – Customer Services Town Hall
Objective To inform Timing Quarterly; 2 hours Audience Customer Services Organization
Purpose Attendees
• Informs employees of Customer Services organization strategy and Target Operating Model (TOM) Board Chair
objectives, plus Performance Improvement progress and activities across
the Customer Services organization Performance Improvement Leadership Team
• Communicate overall impact and benefits realized for Performance
Improvement efforts Customer Services Organization
• Enables open dialogue and feedback to gather input from across the
organization for identification of potential initiatives
Agenda Timing Input Output

Introductions and overview 15 minutes • Overall Customer Services strategy and • Meeting minutes to be distributed to
objectives Performance Improvement Leadership
Review organizational performance and progress 45 minutes Team for assessment and communication
• Performance Improvement program to Performance Improvement teams
Communicate organization-wide impacts 15 minutes progress and updates
• Ideas/ feedback collected to be synthesized
• Summary of realized benefits from by the Performance Improvement
Open forum for discussion/ Q&A 30 minutes Performance Improvement work Execution Team
Dependencies In Scope Out of Scope

• Culture encourages open communication • Customer Services Performance • Prioritization or execution of Performance
• Performance Improvement initiative metrics and updates are available to Improvement progress Improvement initiatives
communicate • Open discussion on performance • Detailed discussion on specific initiatives
improvement opportunities
102
Terms of Reference – Target Operating Model (TOM) Board Meeting
Objective To decide Timing Monthly; 1 hour Audience Target Operating Model Board
Purpose Attendees
• Act as a stage gate process for the execution of initiatives Target Operating Model (TOM) Board Chair
• Review overall performance and health of the Customer Services
Performance Improvement Leadership Team
Performance Improvement program
• Adapt and make changes to Customer Services strategy and objectives while Target Operating Model (TOM) Board
considering impacts from market and organizational changes Members

Assess external impacts to Customer Services 15 minutes • Summarized progress across Customer • Go/No-Go decisions for performance
Services Performance Improvement improvement initiatives
Review performance and health of Customer Services 15 minutes program • Updated strategic objective for Customer
• Proposed prioritized Performance Services as required
Discuss alignment of initiatives to CS objectives 15 minutes
Improvement initiatives and alignment to • Decisions and guidance to address issues
Approve stage gate progress for initiatives as required 15 minutes Customer Services strategy and objectives and prioritized initiatives at each gate

• Transparency of risks and issues for Performance Improvement work • Overall Performance Improvement initiative • Execution of tactical activities for
• Timely decisions made for Performance Improvement initiatives program objectives and goals Performance Improvement initiatives
• Alignment on Customer Services objectives and strategy • Discussion of potential PI opportunities • Initial prioritization of PI initiatives
103
Terms of Reference – Target Operating Model (TOM) Working Group

Meeting
Objective To organize Timing Weekly; 1 hour Audience PI Leadership and Execution Teams
Purpose Attendees
• Manage Performance Improvement program plan and monitor program Performance Improvement Leadership Team
performance
• Consolidate status and performance metrics for initiatives to communicate Performance Improvement Execution Team
to TOM Board
• Provide day-to-day leadership and manage alignment to Customer Services
strategy and objectives for the Performance Improvement program

Discuss and align on PI initiative prioritization criteria 10 minutes • Collected feedback and ideas from idea • Summarized long-term benefits from
gathering sources to assess for Performance Improvement work
Review overall progress against PI program plan 15 minutes Performance Improvement opportunities • Updated Performance Improvement
• Performance metrics and reporting from program plan and issues log
Assess metrics and summarize benefits from initiatives 15 minutes
Performance Improvement Initiative • List of prioritized Performance
Review input gathered for PI opportunities 20 minutes Leaders Improvement initiatives for review

• Necessary data and information is available for assessment of performance • Prioritization and identification of • Execution of tactical initiative level activities
and identification of initiatives Performance Improvement initiatives • Decisions or changes to Customer Services
• Performance Improvement program plan has been adhered to or updated • Review and changes to PI program plan strategy or objectives
when required
104
Terms of Reference – Customer Services Managers Operations

Meeting
Objective To track Timing Weekly; 1 hour Audience PI Execution and Initiatives Teams
Purpose Attendees
• Manage day-to-day operations of Performance Improvement initiative Performance Improvement Execution Team
execution, including allocation of resources and identification/ resolution of
risks and issues Performance Improvement Initiative Leaders
• Track progress of Performance Improvement initiative within the
Performance Improvement process and identify which stage gate each
initiative belongs
• Guides and reviews execution of individual initiatives

Review overall Performance Improvement progress 15 minutes • New Performance Improvement initiatives • Feedback to Performance Improvement
with roadmaps and resource requirements Leadership Team regarding initiative-
Review status of ongoing PI initiatives 20 minutes specific status and progress
• Updated Performance Improvement
program plan and initiative roadmaps • Mitigation of initiative-level risks and issues
Discuss requirements and roadmaps for new PI initiatives 15 minutes
or escalation where required
• Initiative level status, issues, and risks
Discuss escalated risks and issues for initiatives 10 minutes

• Resources required for PI initiative execution are available • Decisions regarding specific initiative risks • Updates to Performance Improvement
• Transparency with Performance Improvement initiative status, risks, and and issues program plan
dependencies • Identification of resources and timing for • Performance Improvement program level
execution decisions
105
Terms of Reference – Customer Services Operational Improvement

Meeting
Objective To execute Timing Weekly; 1 hour Audience PI Initiative Teams
Purpose Attendees
• Manage day-to-day operations and activities laid out in the Performance Performance Improvement Initiative Leaders
Improvement initiative-level roadmaps
• Tracking against the Performance Improvement process and communication Performance Improvement Initiative Owners
of progress to the Performance Improvement Initiative Leaders and
Performance Improvement Execution Team

Review status of specific roadmap activities 15 minutes • Updated Performance Improvement • Summarized status of initiatives, including
program plan, including new initiatives materials required for stage gate approvals
Review and discuss risks and issues 15 minutes • Updated resource plan and assignments for
• Detailed initiative-level roadmaps and
resource requirements initiative level activities
Assess performance metrics for initiatives 15 minutes
• Initiative level activity progress and risks • Summary of performance metrics for each
Track and identify initiatives at a stage gate for approval 15 minutes Performance Improvement initiative

• Initiatives have been prioritized correctly and roadmaps reflect any changes • Decisions for tactical risks and issues • Prioritization of Performance Improvement
to the Performance Improvement program plan • Review of newly assigned Performance initiatives
• Implementation activity tasks, owners, and deadlines are clearly outlined Improvement initiatives and resource • Approval of initiative progress within the
assignments Performance Improvement process
106
TOM delivery will require a focused set of governance forums that

are managed closely and regularly
Governance Forum Objectives of the Forum Attendees Frequency
• Informs employees about key activities, messages

Customer Services Town Hall and performance of Customer Services • All of Customer Services • Quarterly
• Enables open dialogue and feedback
Strategic
• Make decisions about strategic questions • Chief Customer Officer +

Target Operating Model (TOM) • Measures performance and overall health of Direct Reports • Biweekly, Monthly
Board Meeting Customer Services • Chief Information Officer TOM
• Intervenes and re-directs strategy where required • Chief Marketing/Comms Specific
Forums
• Conducts analysis for strategic questions to take to •
Target Operating Model (TOM) Core CS Operating Model
leadership team • Weekly
Working Group Meeting • Owns Operating Model roadmap, monitors • CS Directors (as required)
performance and recommends action
Customer Services Managers • Manages day-to-day operations of the business • Key resources from across
Operations Meeting • Tracks metrics and mitigates risks and issues with customer services • Weekly / biweekly
performance • CS Directors (as required)
Operational
Operational Improvement • Workstream leaders

• Maintain day-to-day operation of initiatives • Weekly
Meetings • Initiative owners
107
The TOM Board and the TOM Working Group will provide the
required oversight and drive the timely implementation respectively
Governance Structure Forum Purpose Roles and Responsibilities
• Provides overall strategic direction and governance Executive Sponsor

• Establish a consolidated view of all transformation • Set overall business objectives and actively sponsor the program
changes; Monitor programmes lifecycle; intervening by
exception • Address key barriers to change and resource issues as needed
• Review business cases, approves and fund new Board Member Accountabilities
Target Operating Model transformational initiatives, within an allocated budget • Review business cases, approve and fund new transformational initiatives
(TOM) Board Meeting • Ensure portfolio risks are managed
• Provide input and approval on program roadmap and priorities
• Oversee change management plan
• Escalation point for portfolio/programmes risks, issues • Establish the escalation path for program issues and risks
and dependencies • Monitor programs through their lifecycle; intervening by exception
• Approve changes to prioritisation and intro of initiatives • Ensure portfolio risks from critical interdependencies are managed
• Direct governance of projects / portfolios and Working Group Leader

programmes to be delivered in the Customer Services
• Design the program plan to most effectively meet the business case
business
• Accountable for analysis, day to day management and • Provide day-to-day leadership for the program
delivery of programmes, reporting and escalating cross- Working Group Member
Target Operating Model portfolio risks and issues
(TOM) Working Group • Accountable for successful delivery of their work products (schedule, quality, costs)
• Report progress and status of the programmes within
Meeting • Ensure the TOM Working Group Leader is aware of statuses, issues and risks
their portfolios and to the TOM Board
• Implement the gate process and report progress to the • Implement the stage gate process and report progress to the TOM Board
TOM
(This group consists of key resources from the Business (Customer Services, IT, etc.) who will
assist in driving the programs forward)
108
Four stage-gates will drive important design and implementation

decisions across the two governance forums
Identify Diagnose Design Deliver Sustain

Identifying initiatives Diagnosing route cause Defining our approach Delivering our solution Making sure the
Should we pursue the Do we understand the Should we invest in Should we cycle back to
Decision initiative? business issue? executing? Design or go to Sustain?
Forum TOM Board TOM Working Group TOM Board TOM Working Group
Frequency Biweekly Ad hoc / weekly Biweekly Ad hoc / weekly
• Alignment with the design • Viability of initiative and its • Defined estimates of • Realized gains and favorable
Success Factors principles return on investment investment required and outcomes
• Appropriate timing with • Impactful long term gains robustness of gains • Entrenched cultural change
other initiatives that align with overall TOM • Feasibility in terms of to continue implementing
strategy timing and budgeting for new/changed process
the CS program • Sustainable at the
operational level
109
How will we measure success?
Contribution to the achievement of the Customer Services Target Operating Model Vision
Effectiveness of the through portfolio management, better governance and process improvement
Target Operating
Model delivery
function Feedback from the Executives on the role and the TOM Team and their contribution to
delivering their strategic objectives
Maturity of the Increased capacity to deliver target operating model initiatives

Target Operating
Model delivery
function
# of ongoing improvements identified and implemented
110
Customer Services KPI
Customer Services KPIs: context and overview

• Agree upon on a key set of KPIs, including supporting metrics, the organizational will • Customer Services performance framework overview (e.g. primary and
track to assess performance against achieving the target operating model secondary KPIs)
• Define the process for which the organization will review and address KPI and initiative • Target operating model objectives, goals, strategies, and measures
performance, including the associated objectives, goals, strategies, and measures • KPI value tree
• Prototype dashboard


Transformation
112
The Primary KPIs identified will align to the design principles in order
to assess performance toward achieving the TOM
Primary KPI TOM design principles
We put customers first and provide an effortless service

Customer effort score
experience
We prioritize digital solutions for our team and our

Cost Per Contact
customers
We believe service starts with trusted team members

Employee Index
who are empowered to help customers the first time
We are an agile organization that reacts quickly to

Customer Services Agility
customer needs and changing market conditions
We add value to customers by connecting them to

Avg offerings per customer
relevant energy offerings
113
Primary and Secondary KPIs provide stakeholders with an overview

of key target operating model drivers
Customer Effort
Customer Effort Score by Journey Channel cost
Score by Segment
Customer contact Primary KPIs

volume
Customer Effort • Top-line KPIs for leadership that indicate overall performance and
Score by Channel progress toward achieving the target operating model
Cost per • Directly related to target operating model design principles
Customer
contact
Effort Score
Draft Customers enrolled
CS in offerings
KPIs
Employee Index Avg offerings
per customer Secondary KPIs
Customer • A breakdown of primary KPIs into their component parts
Employee
engagement Services Agility • Provide additional context for analysis and diagnostics for
Customers eligible operational teams
for offerings
Attrition rate Days elapsed

to deliver
Safety /
Continuous
incident rate*
improvement initiatives
*Not part of Employee index
114
A full KPI value tree was developed to validate the specific operational
metrics that the organization can target
Level 5
Level 4
Average time to next available appointment
Field Service Customer
Level 3 Effort Drivers % requests booked through customer channel of preference
Number of clicks / request (web & mobile)

Field service CES
Secondary KPIs Average time deviation outside of stated window
% of field appointments completed on-time

Full KPI Value Tree
Number of field
Customer effort
service requests Avg response time (emergency)
score by journey
Start/stop/transfer % of customers receiving service status notification
CES
% appointment window 1-hour
Primary KPI
First-fix rate
Customer Customer effort

Billing and payment Each of the five primary KPIs have been mapped to
Effort Score score by channel
CES
specific operational metrics that the business either
tracks today, or plans to in the future (through
specific initiatives or through ENTITY)
Outage CES
Customer effort
score by segment
Energy management
(i.e. offerings CES)
115
A dashboard containing these KPIs would create a single point to

track the progress towards Customer Services’ vision
116
The Customer Services’ dashboard would integrate within existing

governance forums….
Dashboard integration
Governance Forum Objectives of the Forum Attendees Frequency KPI Metrics Responsibilities
• Informs employees about key activities, Primary

• Review top-line priority KPIs
messages and performance of Customer • Highlight key initiatives that
Customer Services Town Hall • All of Customer Services • Quarterly Secondary
Services
plan to address primary KPIs
• Enables open dialogue and feedback Operational
Strategic
• Make decisions about strategic questions • Chief Customer Officer + Primary • Defines priority top line KPIs
• Measures performance and overall health of Direct Reports and targets
Target Operating Model • Chief Information Officer • Biweekly, Monthly
Customer Services Secondary • Monitors progress vs plan
(TOM) Board Meeting • Chief Marketing/Comm.
• Intervenes and re-directs strategy where • Assigns accountability to
Officer Operational
required direct reports
Target Operating Model • Conducts analysis for strategic questions to • Core CS Operating Model • Takes ownership of particular KPIs
(TOM) Working Group take to leadership team • Weekly • Monitors changes to KPIs and
Meeting • Owns Operating Model roadmap, monitors • CS Directors (as required) understands impact
performance and recommends action Primary
• Takes responsibility for explaining
Secondary changes to the dashboard that fall
under their remit
• Manages day-to-day operations of the Operational • Originates initiatives that target
Customer Services Managers • Key resources from across
business customer services • Weekly / biweekly specific KPIs; articulates the
Operations Meeting • Tracks metrics and mitigates risks and issues • CS Directors (as required) overall impact to top line metrics
with performance
• Metrics are articulated in terms of

Operational
Primary
• Workstream leaders contribution and impact to top line
Operational Improvement • Maintain day-to-day operation of initiatives
• Initiative owners • Weekly Secondary metrics
Meetings
• Are monitored pre and post-
Operational
delivery
117
A structured process helps drive accountability for each KPI and

metric across the organization
Receive data Analyze changes Compile insights Socialize findings Track and measure
Work with business owners and Input commentary and insight Track and report on
Receive updated Identify key changes that
stakeholders to understand into report to highlight root- progress of action items and
dashboard data require attention
root-causes of deviations causes of deviation follow up where appropriate
Target Operating Model (TOM) Working Group Meeting Target Operating Model (TOM) Board Meeting
Suggested meeting structure Suggested meeting structure
1 Accountable employees discuss each section 1 Review discussion topics
2 Review progress towards pre-set targets 2 Review changes and actions discussed in last meeting
3 Gather input from business owners for root-cause of deviations 3 Discuss presented analysis for each section
4 Discuss action plans or initiatives with impact any KPIs 4 Gather input from Customer Services’ leadership on priority areas
5 Establish discussion topics and KPIs for TOM Board meeting 5 Additional follow-up on prioritized initiatives status
118
The OGSM structure helps drive the identification of goals,

measurements, and strategies tied to the target operating model
Broadly what How
Objectives Goals Strategies Measures
O G S M
What we need to achieve Quantitative target of How we will achieve our Measures will assess
based on our mission progress towards objectives objectives and goals performance of strategies
E.g. design principles E.g. KPI targets E.g. TOM initiatives E.g. initiative metrics
Successfully implemented strategies Measures for strategies and

should lead to achieving objectives initiatives should drive toward KPIs
119
The future Target Operating Model roadmap should be systematically

People Process
refreshed with new operating model initiatives
Technology

Quick wins
120
Objectives, goals, strategies, and measures

Objectives Goals Strategies Illustrative measures
• % of transactions that Customer Effort Score (CES) is used
1 Implement a voice of the customer platform, which has the ability to measure customer effort score • # customer effort score (CES) at individual channel level
• # customer effort score (CES) score across all channels
We put customers first Primary 2 Make the bill more simple, user friendly and easy to understand • % of customer contacts (calls, chats, emails) each month regarding understanding bill
and provide an • Achieve a customer effort score of [X] by 2025 3 Simplify the credit card payment process for customers % of customers paying on-time with a credit card through self-service channels
Secondary: •
effortless service % of calls incorrectly routed to agents
experience • Customer Effort Score of [X] across all channels, journeys, and •
customer segments by 2025 4 Route customer to the correct agent through the IVR • # of call transfers per month
• Avg call transfer rate
5 Build flexibility to achieve 1-hour field appointment windows • % of customer service orders completed on 1-hour appointment window
• Avg time deviation appointments met outside of 1-hour window
• Customer review score (#) via mobile app
• Number transactions (#, by type) via mobile app
6 Deliver a consistent experience across channels (e.g. Mobile App and MyAccount) for customers • Number of monthly active users (#) via mobile app
• Number app downloads per month
• Avg app launches per month per user
7 Introduce voice support (i.e. Alexa, Siri, Google) for 2 use cases through voice channel • # of unique monthly customers using voice channel
Primary:
• Maintain a cost per contact of less than $X by 2025 8 Auto-enroll customers in text alerts and notifications for outage and high bills • % of customers enrolled in SMS outage alerts
We prioritize digital
Secondary: 9 Introduce text alerts for account changes (e.g. bills reminders & alerts, field service status • % of customers enrolled in notification alerts
solutions for our team
and our customers • Our total channels costs will remain less than $X million by
2025 10 Improve presence on social media (I.e. Twitter & Facebook) % Digital self-service
•
• Customers will contact us a total of X million times by 2025 11 Implement a chatbot-like assistant on the current website to handle a broader set of questions, integrated with customer accounts • # of customer queries using a virtual assistant - web / social channel
12 Promote the usage of self-service to customers • # of estimated calls deflected due to virtual assistant - web / social channel
13 Establish a consistent process for updating information on the website • % positive Page Helpfulness' feedback (e.g. 'was this information helpful Y/N)
14 Default customers to paperless billing • % of customers on paperless billing
15 Identify areas and opportunities to increase automation to support workflow of field / ESS agents • % System uptime for ESS/Field service reps (digital/system tools)
• Employee engagement score index
We believe service Primary: 16 Document and communicate roles and responsibilities for improving CX to all employees within Customer Services Customer Services RACI implemented and communicated by the end of 2019
•
starts with trusted • Achieve an employee index score of [X] by 2025 Voice of employee platform implemented by end of 2019
team members who Secondary •
• Employee engagement score index (#)
are empowered to • Exceed [X] on total employee engagement score by 2025 17 Create a "Voice of the Employee" platform and process of soliciting ideas across the organization
help customers the • # of ideas suggested by employees per time frame
• Maintain annual attrition rate of [X] by 2025 % of employees that have suggested an idea
first time •
• Have a zero safety/incident rate in 2019
18 Provide opportunities for employees to shadow, visit other departments, attend offsite, conduct field ride alongs • Employee engagement score index (#)
19 Implement an automated process to measure days elapsed to deliver certain offerings, communications, rates
• # days elapsed to deliver rate / offering / communication / training
Primary: 20 Establish a performance framework – including KPIs – across the business to deliver the CS vision
We are an agile
organization that • Achieve a agility index of [X] by 2025 21 Consider the use of multi-skilled vs specialized agents • An assessment and service applications for use of multi-skilled vs specialized agents
Secondary:
reacts quickly to 22 Work with HR to assist in organizational re-design efforts that improve efficiency, structure, and function • Spans & layer analysis
customer needs and • [X] number of continuous improvement initiatives will pass the
TOM board stage gate • # of initiatives implemented through continuous improvement methodology / year
changing market 23 Implement the use of a consistent continuous improvement methodology to drive operating model initiatives
conditions • Achieve average days elapsed to deliver below of less than [X] • Benefit realization (e.g. #, %, $) for initiatives implemented through continuous improvement methodology
days by 2025
• % first contact/call/web resolution (by channel)
24 Implement a method to measure first contact resolution that the business has confidence in, by tracking customer touchpoints across all channels % first contact resolution (in aggregate across channels)
•
• Identification of key customer profiles
25 Invest in actionable segmentation to define service strategy for different customer types • Customer segmentation roadmap, including applications across the organization
We add value to Primary: • Metrics by Customer segment (Cost per contact, CES, etc.)
customers by • Our customers will have an average of [X] offerings by 2025
connecting them to Secondary: • # of average offerings / Customer
26 Simplify program offerings / value prop to make them easy for customers to understand • # offering enrollment / month
relevant energy • [X]% of customers are eligible for one or more offerings in 2025
• # customer effort score – offerings
offerings • [X]% of customers are enrolled in one or more offering in 2025
• # of customers offered a product through 'next best offer’
• # of product enrollments through 'next best offer'
121
People & culture
People & culture: context and overview

• TBC • Finalized organizational design and associated RACI
• Transition plan
• Updated job profiles for agreed Customer Services areas


Transformation
123
INENERGY COMPANY ART: Customer Services Organization Design
Please see separate Organization Design document
124
INENERGY COMPANY ART: Customer Services Associated Transition

Plan
125
INENERGY COMPANY ART: Updated job profiles for agreed Customer

Services areas
126
Next steps and delivery
Communicating the Target Operating Model to the Customer

Services business
Purpose of this communication Objectives of this communication
The purpose of Target Operating Model This communication has 3 objectives:

communications is to communicate the Mission, • Provide guidance for those ENTITY personnel who are designing a system to support the future Customer Services business
Design Principles and Vision Statements to
ENTITY personnel, Customer Services personnel • Inform and inspire Customer Services personnel who can refer to the mission statement as the Purpose of this part of the
and Customer Services business partners to help business
guide the work they do in the business. • Provide a clear direction to Customer Services’ partner organizations to help them understand the direction of the business
Stakeholder groups targeted Risks and mitigations

Customer Services ENTITY Partners
Risk of confusing TOM and ENTITY messages Start to merge messaging into one
All ENTITY
Leadership team employees IT organizations
Employees disagree with direction set Link back to ENTITY messaging in comms
All staff All ENTITY HR
contractors Lack of context from leadership about how to use Provide context in emailed comms
Channel Approach Start

Future ENTITY communications Embed language of ‘Make it Easy’ into all future ENTITY communications Q2
Customer Services town halls Introduce the language and vision messaging into future town hall communications Q2
Future Customer Services leadership communications Embed the language and vision messages into future leadership communications (emails) Q2
Office posters Start to formalize messaging into posters and office collateral to spread the message Q3
Formal communications Formally announce new direction to Customer Services and its partners Q4
Desk drops Provide employees with copies of ‘Effortless Customer Experience’ to mark formal launch Q4
128
Target Operating Model Communications Plan
Approach
We plan to take a staged approach to communicating the Target Operating Model in order to avoid confusion with existing messaging being released by ENTITY. Our approach is
staged across 2019 and aims to bring together the ENTITY messaging and Target Operating Model Messaging into one in a natural way that avoids confusion at formal launch.
Q2 2019 Q3 2019 Q4 2019
Future ENTITY
Embed language of ‘Make it Easy’ into all future ENTITY communications
communications
Customer Services
Introduce the language and vision messaging into future town hall communications
town halls
Future Customer
Services leadership Embed the language and vision messages into future leadership communications (emails and videos etc)
communications
Start to formalize messaging into posters and office collateral

Office posters to spread the message
Formal Formally announce new direction to Customer Services

communications and its partners
Provide employees with copies of ‘Effortless Customer

Desk drops Experience’ to mark formal launch
129
Appendix
Vision & alignment
Key workshop materials
Vision and alignment workshop
The following section depicts the content that was used for the associated workshop. The output and thinking from this session, which was held on October 26 th, has been
incorporated into the primary target operating model deliverable.
Workshop date: October 26th, 2018
Purpose of this workshop
To gain alignment on the vision across each of the Customer operating model
components
• Understand the direction of the energy market and how it will impact ENTITY 1. Vision & 2. High Level
in the future. Alignment Design
• Gather alignment on the vision for the Customer Services organization
• Develop an understanding of current business performance
• Define design decisions across each of the operating model components to
shape the target operating model
4. Customer
Attendees 3. Operational
Services
Improvement
Transformation
PERSONS
5. Customer 6. People &
Services KPIs Culture
132
Why are we designing a target operating model for ENTITY Customer
Services?
Vision and strategy
Customers

ce
er ien
p Brand & reputation
er ex
to m
Cus
Products & services

Capability
Governance
Partners & suppliers How will these objectives and

Enablers

KPIs
Culture & values
133
[Poll] What did you take away from Scott’s opening remarks?
“We are empowered in this session” “Change is constant” “Planning for the future”
“Let’s solve for the customer experience” “CCA first” “Change is coming”
“Be leaders”
“The customer relationship is fundamentally changing”
“Technology will affect change”
“Let’s engage in a robust manner today!”
“Transformational” “CCAs” “Biggest change since the 90s”
“Stampede of CCAs coming in a couple of years”

“Leadership is essential” “Bots”
“California [market]” “Change” “Brilliant”
“We're finally getting started”

“Things are changing” “Think forward”
Workshop Output
134
Outside-in
The energy market is evolving with the development of more

dynamic technologies
Energy journey over the last century .. Birth of a new distributed energy system – digitally driven
Power to gas
er
Solar cells
sum
Prosumer Utility scale Local solar
Con
storage farms Electric
Electric vehicles vehicles
P2P
Large scale
Off-grid wind
ail
generation
Ret
Industry
Fast charging
2000-
1900 1960 1970
now
Microgrids Baseload power Offices
generation Dispatch
Tranmission
and distribution Balancing
automation Settlement
Blockchain
Solar Home
Local wind farm
Internet of Things generation
Smart grid
Demand response
Battery storage
136
EY research has examined 10 core technologies impacting the global

market
The model is designed to incorporate both the reciprocal interactions of these technologies and their effect on the demand for electricity, and the cost of
generating, distributing and selling electricity
Solar PV Smart meters
Accelerating Enabling
Electric vehicles technologies Battery storage Artificial Technologies Grid edge
intelligence technologies
Home and building energy systems Microgrids Peer-2-peer energy exchange Cloud
137
Timing of energy market disruption can be tied to three “tipping

points” in the energy market
Tipping point 1 (T1) The birth of the new

“Grid cost parity” of non-utility 1 solar plus storage systems energy system
Tipping point 2 (T2)

Electricity and mobility
The price of battery electric vehicles reaches cost parity and industry convergence
performance parity with ICE2 vehicles

The digital energy
The cost of transporting electricity exceeds the cost of market place
generating and storing it locally
Non utility: households and business customers producing electricity

1
CE: internal combustion engine

2
138
California will reach tipping points first in the US due to investment

in renewables and lowering emissions
Birth of the new energy Electricity and mobility

The digital energy market place Illustrators1
system industry convergence
ENTITY Tipping Points Analysis

Tipping point 1 is 10 years
$800 away in California
Grid cost parity of
$700 Period of EV & ICE parity non utility solar plus T&D parity with
(cost + performance) storage systems non utility solar +
$600 battery LCOE
Fully delivered
cost of Tipping point 2 is 7 years
electricity
$/MWh
$400
2 Cost of transmission
1 and distribution
$300
3 Tipping point 3 is 18 years
Non utility solar
$100 + battery LCOE
$0 1
Analysis is based on average profiles. In each geography,
1 2 3 4 5 6 7 8 9 101112131415161718192021222324252627282930313233343536 there will be segments of the customer base for whom the
economics improve much sooner
Source: Utility impact model Central scenario California — EY Analysis
139
California will reach tipping points before other regions in the US
Midwest (MIW)
West (WE)
T1 T2 T3
North East (NOE)
T1 T2 T3 WA
2036 2025-29 2044
MT NH T1 T2 T3
ND VT ME
2034 2025-29 2045 MN
OR 2031 2025-29 2039
WI
ID MA
SD NY
WY MI
RI
CT
PA
California NV
NE
IA
OH MD
NJ
IL DE
(ENTITY) UT IN WV
T1 T2 T3 CO
VA
ENTI KS
TY MO KY
2028 2025-29 2036 TN
NC
AZ
NM
OK
AR
South East (SOE)
SC
MS AL GA T1 T2 T3
ERCOT* (ERCT) TX
LA 2042 2025-29 >2050
T1 T2 T3 FL
2038 2025-29 2045

*ERCOT: The Electric Reliability Council of Texas
Source: Utility impact model central scenario – EY analysis
140
We know the market will change in some way; how are we preparing
our organization for this?
Deregulation CCA uptake Grid Defection EV Growth

If retail supply opened up to If CCA’s took over the supply of If customers moved off-grid en If EV adoption accelerates
competitive participation, how 50%+ of our customers, how mass, how would we respond? beyond our current projections,
Response would we respond? would we respond? how would we respond?
Is our focus on reducing Are we investing in activities to How do we provide an energy

Fight operational cost and raising take control of the narrative service that is valuable even
barriers to entry in the future? and retain customer supply? beyond the economics?
Example considerations
Are we going far enough to How do we build the new CIS How are we going to balance
How do we build and maintain
build a competitive value system to accommodate the participation in the market with
Embrace proposition fit for a required processes for
a business around off-grid
the economic consequences of
products & services?
deregulated market? managing CCAs? increasing battery storage?
What
if How will we navigate customer What are the risks to the
How are we going to maintain a
relationship with our
attrition and competition and customer services business if How will we navigate increasing
Ignore navigate a shrinking customer we do not plan sufficiently for rates and political pressure?
customers without
participating in the issues most
business? CCAs?
important to them?
Exit How are we investing in shorter term necessities without over-investing in capabilities that may not be as relevant in the future?
141
Inside-out
We engaged with ~20 employees across Customer Services and

other parts of the business
Who did we engage with? What did we ask?
Talk about what areas of key changes your organization is

expecting to see in its main customer segments into the future?
How do we identify major What capabilities are you

Customer opportunities when it comes to most excited for from the CIS?
Services new / improved channels?
Please describe the culture /

What works? What doesn't? values of the organization
Additional In what areas are we particularly

supporting successful when it comes to customers? What do you think the customer
stakeholders organization does exceptionally well?
How does our product and service

strategy evolve going forward? How do you see the customer
changing in the short term future?
143
Interviews: four themes we heard
Customer Services Proactive issue

vision clarity resolution
Collaboration across Prioritization of

functions activities
144
What we heard: vision
At ENERGY COMPANY A
Customer Services vision clarity: level, want to be North
American leading
infrastructure company –
“Define a clear, comprehensive view of the goals for Customer what does that mean for
Clean, safe and
Services, aligned to corporate strategy” reliable is a clear ENTITY Customer Services?
message, but difficult
 A common, concise Customer Services vision to link this to
Customer Services
 An integrated approach to implementation of Customer Services vision
and strategy What messages do we
want to emphasize to
 Alignment with overall corporate strategy customers?
 Emphasize the positive work that ENTITY does across the community
There hasn’t been
 A rallying cry that can be used to motivate and inspire investment in internal /
external branding for
 Built on principles that can help prioritize business decisions
What does ENTITY several years now
want to be known for?
145
What we heard: proactive
Proactive issue resolution: There is a reactive culture

within Customer Services
“Invest in capabilities to support identification of customer

issues before they happen and enable the flexibility to respond” We respond really well to
incidents when they occur
 Build flexibility into the organization to have the capacity to plan
ahead for future issues High bills are an issue that
ENTITY react to
 Train our people in identifying trends
 Invest in predictive analytics capability Real-time data
would help identify
 Incentivize a culture of early issue identification and mitigation trends
 Work directly with customers to anticipate needs and behaviors Would like the ability to
conduct predictive A 360 degree view
analytics to identify pain of the customer
points for customers would allow
before the occur proactive action
146
What we heard: prioritization
Prioritization of activities: We have so many

different rates –
“Identify what the priorities are across each area of the business complexity on complexity
What is the one thing
and focus time and effort there” ENTITY do well?
 Meet regulatory requirements, but consider the preference for We offer so many channels (e.g., for
ENTITY payments) to customers – can we make
it easier on our preferred channels?
 Make it easy for customers to do business via priority channels
 Consolidate a hierarchy and a method for tracking KPIs and use this We track many KPIs, but there is a lack
consistently across the business, to build trust in the data of confidence and accountability for the
quality of the data
 Identify opportunities to stop any superfluous activity – apply a set
of consistent decision criteria for this
We are not very good at
saying “no”
147
What we heard: more collaboration
Collaboration across functions: The operations

I would like to have a
greater view of what is
meetings that Scott a priority across other
“Promote opportunities to collaborate and share information attends are a great parts of Customer
across Customer Services and across the business” source of knowledge Services
 Formalize regular cross-divisional collaboration meetings

Cross-functional interactions
 Share status and dashboards across varying departments for are largely relationship
visibility and input driven
 Define clear accountability for business functions
 Encourage and incentivize collaboration
I get most out of the
 Request feedback from teams as to where and who they would like meetings where I meet Some parts of the
to collaborate with more with people outside of my business are siloed
functional area
148
Pick your favorite publication. What will the front page read when they
write about the ENTITY Customer Services organization in 2025?
ENTITY Delivers World Class customer service in our ever changing energy environment Who would have thought? ENTITY a
leader in customer experience.
ENTITY: ENTITY
ENTITY is the "ENTITY" The Comeback Kid: redefining enables the ENTITY, the utility that is the
of the Utility World utility customer service sustainable home darling of the tech industry
Newsweek: ENTITY, the "IT" utility.
ENTITY: Most Trusted Brand
ENTITY Knew the Answer to my ENTITY creates genuine connections ENTITY: Cutting
Question Before I Even Asked It with customers to solve energy needs through the chaos
ENTITY is #1 nationally in Energy experts connecting

Customer Services us to energy solutions ENTITY rated #1 in customer satisfaction for
the 3rd consecutive year!
Delight Starts Here
ENTITY mastered a combination of value, satisfaction, ENTITY hits a home run in
ENTITY: Powering purpose customer service
and delivery efficiency that consumers love.
Workshop Output
149
What will our Operational Strategy be?
Market leaders dominate, differentiate, draw or don’t

care on Cost, Customer Service, and Innovation… Efficiency leader
Operate with extreme efficiency, often providing a “one
size fits” all experience for customers
Economy
Fee-based
Pay-for-add-ons
Costco Generic
Centralized
ENTITY
Pay-per-use
Innovation / product leader Customer service leader

First to bring new, disruptive ideas to the market Obsessed with the delivering an exceptional customer
experience, often leading the industry in satisfaction
Inside-out
150
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 2 assigned operating model components and plot the
appropriate design decision for each ‘slider’.
operating model 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?
Governance

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
151
Appendix – Vision & alignment
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 intuitive experiences with other providers; they Today we are starting from a point where…
sustainability
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
153
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
Number of accounts
Of the 150K electric commercial 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
6K 12K 7K
family homes homes 1K
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
154
Current-state
Where are we today?
Ambition (2025+)
Where do we want to be? Customers
Customers
What relationship do we want to have with the

customer?
CSR’s are trained to
Electric co-ops serve Deliver reliable electricity Meet a variety of customer analyze each customer’s
customers by focusing
on traditional electricity services with a limited focus needs through value-add situation and identify ways
on additional energy-related to help them through
services and high price
satisfaction programs Commodity Provider Partner products and services offered programs or
services
How personalized will customers’ experience of

ENTITY be?
ENTITY delivers the Each ENTITY customer has
same experience to its Provide a uniform Different customers warrant a different experience with
customers regardless of customer experience for unique service the service, thanks to the
channel or purchasing experiences and offerings company’s AI
habits all segments Standardized Individualized recommendation engine
How will we support our customers’ needs?

AT&T uses proactive
Uber’s experience
focuses on efficiently Provide service to customers
Service customer needs strategies (text messages,
serving customers as as they initiate contact On-request Anticipate
proactively before they smart video bills) to
minimize bill shock for
they submit requests initiate contact customers with high bills
155
ENTITY have opportunities to prioritize additional investment in

Channels customer channels to advance channel capabilities
+ interactions span across multiple
Integrates with me
• Integration across 3rd party devices
devices and platforms, becoming a
Self-sufficient / automated
• Workflow operates across multiple disparate hardware
core part of a customer’s lifestyle
• Interacts with 3rd party channels
regardless of the product
Builds around me
Cultural and • Innovation capability that allows them to experiment and be
Cost to develop
first to market in emerging areas e.g. AI, Voice Interface

governance transformation
to enables investment in • Experimental culture where they are allowed to fail fast and
bring new technologies to market
experimentation and
acceptance of failure • Early investors in emerging technology
+ Advanced • 360 degree of customer at point of contact
Knows me
Self-serve
analytics, • Machine learning integration to anticipate and solve queries at
machine learning point of contact
integration • Cross-platform predictive capabilities
Responds to me
• Multiple channels offered
We serve
• Channel experiences are distinct
• Popular web channel for contact
• Mobile application is being enhanced
Difficulty to deliver
Source: ENTITY Xfinity, Ally Financial, and ENTITY
156
Customer contact and transaction volume continues to rise year-

Channels over-year, while customer growth remains flat
Historical and forecast customer contacts and transactions Contact Center Energy Service Specialists (ESS):
through existing channels: (2015 – 2018 YTD)* Historical and YTD call types answered by agents
ASO 3% 2%
+6% Billing and credit
4.5M Contact / transaction CAGR 4.2M calls, as well as calls
13% 14% 15%
Customer contacts and transactions
Billing
3.9M related to high-bills,
Percent out of total transactions for year indicated

4.0M
3.6M 3.6M (YTD)
continue to make up
3.5M 1.5M an increasingly
3.2M
larger portion of all
1.6M ESS Calls
3.0M ESS calls
1.6M 1.5M Credit 30% 30% 29%
1.1M IVR
2.5M
0.8M Web & Mobile
2.0M 0.8M
0.6M Email
0.8M 0.8M
1.5M Chat
Default 15% 16% 17%
1.0M 1.8M Customers***
1.4M 1.4M The proportion of
1.1M 1.2M Emergency 7%
0.5M 6% 6% move calls, while
High Bill 3% decreasing thanks
0.0M to an increase in
2015 2016 2017 2018 EY 2018 YTD digital requests, still
Forecast** Move 23% 21% 22% make up almost a
Total number of customers are to increase on average, about 1% each year. Despite flat Other quarter of all ESS
Outage calls
customer growth, overall transactions by are expected to grow 6% (CAGR) through 2018
Solar / EV 6% 6% 4% 2%
*Excludes payments; includes ESS calls, chat, and email inquiries handled; select VR, web & mobile self-service transactions
**Indicative forecast based on 2018 YTD and historical averages for each channel
2016 2017 2018 YTD
***Customers forecasted based on ratio of customer base to active electric meters, agriculture and lighting count based
on active meters; 2018 customer contact forecasted by an actual YTD and historical averages Source: ENTITY Customer Care, Public Testimony, ENTITY Customer Forecasts, EY Analysis
157
Average speed of answer has declined over the last year across
Channels contact channels
Call Center (ESS): Average handling time (AHT), seconds: 2016 – 2018 YTD Call Center (ESS): Average speed of answer (ASA), seconds: 2016 – 2018 YTD
ENTITY AHT target Top quartile ENTITY ASA target Top quartile
AHT in seconds AHT increase , compounded Bottom quartile ASA in seconds Bottom quartile
500 1,200
+3% 413 ASA decline, compounded
400 1,000
390
AHT in seconds
-37%
ASA in seconds
352 800
300
600
200
214 400 329
100 200 200
43
0 0 12
Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18
Chat: volume & average speed of answer (ASA), seconds: 2016 – 2018 YTD Email : volume & average speed of answer (ASA), hours : 2016 – 2018 YTD
ASA in seconds ASA decline, compounded ASA in hours
ASA decline, compounded
1,000 5K 150 10K
-3%
-90%
ASA in seconds
800 4K 8K
ASA in hours
100
600 3K 6K
Volume
Volume
400 2K 4K
50
200 1K 2K
0 0K 0 0K
Note: 25th and 75th percentiles derived from a sample set of various U.S. utilities; ENTITY has no internal target for call abandonment rates Source: ENTITY Customer Care, Public Testimony, ENTITY Customer Forecasts, EY Analysis
158
MyAccount and paperless adoption continue to grow and outpace

Channels peers, although adoption lags other industries
1
Self-service rate, all channels: Jan 2017 – August 2018 Paperless adoption: Jan 2017 – August 2018
100%
Cross-sector leading practice3 100%
90% 100%
% of transactions
80% Cross-sector leading Practice

2 75% 95%
Utility leading practice 90%
3
70% Actual 64% 90%
60% 85%
Target 60%
50% 80%
40%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug 75%
Adoption rate (%)

2017 2018
70%
My Account Adoption: Jan 2017 – August 2018 65%
100%
Cross sector Leading Practice3 100% 60%
90% Paperless target % 56%
55%
80%
Adoption rate %
Paperless adoption % 54%

My Account 50%
70% Target:63%
(Residential) (Residential) 65%
45%
60% 63% Utility average 40%
3
40%
50% My Account 54%
(Commercial) 35%
40%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
2017 2018 2017 2018
1
Self-service rate includes key transactions through non-digital channels, excludes payments
2
Based on 75th percentile of web self-service rates for utilities in the U.S Source: Contact Babel, ENTITY Customer Services KPI Report, EY analysis
3
Based on leading practice of industry and cross industry peers
159
Current-state
Where are we today?
Ambition (2025+)
Where do we want to be? Channels
Channels
What kinds of channel innovations are we willing to

Investments limited to
invest in? Uses advanced A.I. and
proven, mature We will invest in proven, We will invest in the latest, natural language
technologies that
support existing mature technologies in cutting edge technologies processing to provide
customer support through
customer service our channels in our channels chatbot-like functionality
capabilities Mature Emerging
How integrated do we want our channels to be?

Direct-to-consumer
mattress companies Each customer interaction Customer interactions and Customers can pick up right
occurs in its own, separate where they left off
efficiently push content usage are integrated regardless of the channel
through as many
channels as possible
channel Multi-channel Omni-channel across all channels they choose
How many channels can we be successful at offering?

Subscription-based We offer exceptional Dominos has provided the
Our customers can reach us on options to place an order in
clothing services provide service and support on any and every channel nearly every possible
concierge-like support
select channels channel
Few Many
To what extent will contact through our channels be

Offers alternatives (e.g. digital? All customer support is
physical stores, no IVR) Non-digital channels are Almost all customer handled through customer-
to traditional digital- encouraged some customer
channels to support requests contact will be digital driven forums to help
service queries
customer requests 50% 100%
160
Companies are building brand equity by embracing new

Brand & reputation technologies and servicing customer needs
Customer measures are evolving across industries Net promoter scores (NPS) of key U.S. industries and leading practice examples
Organizations agree there is no single measure that addresses all On a scale of 0-10, how likely would you be to recommend [Brand] to a friend or colleague? 1 2 3 4 5 6 7 8 9 10
attributes that drive customer profitability Detractor Passive Promoter
NPS Score % promoters - % detractors = NPS (net promoter score)
Department Stores 62
Higher predictive power for Tablet Computers 56 Nordstrom has consistently
increased spending / purchasing
Investments 50 high NPS scores with its
Online Entertainment 47 exceptional customer service
Online Shopping and generous return policy
45
Customer Satisfaction Airlines 44
Score (CSAT) Smartphones 44
Measure of short-term happiness Auto Insurance 43 Southwest’s customer service strategy
Laptop Computers 42 starts with its employees. The company
Typical utility focus today Hotel 40 makes significant investments to keep
employees happy with strong support
Grocery Stores 40 and perks / benefits.
Credit Cards 39
Net Promoter Score Home Insurance 38
Shipping Services 38
(NPS)
Cell Phone Providers 37 Ally financial is online bank that is known for
Measure of long term happiness, Banking 35 its innovative approach to customer service
strongly correlated to company growth Software & Apps across its digital (web, mobile) and traditional
31
(i.e. phone) channels
Life Insurance 30
Pharmacies 28
Customer Effort Score Travel Sites 23
Health Insurance 13
(CES) ENTITY sets the gold standard across utilities when
Utilities 4 it comes to engaging customers through a wide
Measures how much effort a Cable / Satellite TV array of value added products and services
1
customer puts in an interaction
Internet Service -1
*Utility and ENTITY NPS score based on 2018
ENTITY* -12 ENTITY Power residential electric customer survey
Source: NICE Satmetrix 2018 U.S Consumer Net promoted Benchmark Study, ENTITY Power 2018 Residential Electric Satisfaction, Market Strategies International
161
Customer perception of ENTITY brand attributes are slightly more

Brand & reputation negative compared to peer utilities
Change vs 2017 Image semantic differentials (Top 2 box analysis): ENTITY

West Utilities
43%
36%
33%
28%
25%
Top 2 score, %
22% 23%
20%
Flexible (vs Rigid) Enviornmentally Innovative (vs Customer- Friendly (vs Rude) Affordable (vs Trustworthy (vs Good Reputation
Responsible (vs conventional) focused (vs Expensive) Untrustworthy) (vs Bad)
unconcerned) Bottom-line)
Note: based on residential electric customers surveyed
Top-2 box analysis indicates the percentage of customers that selected the ‘top two’ categories of the rating scale (i.e. strongly agree & somewhat agree) Source: ENTITY Power 2018 Residential Utility Satisfaction Study
162
Current-state
Where are we today?
Ambition (2025+)
Where do we want to be? Brand & reputation
Brand & reputation
How do we want our customers to perceive our

brand?
Seen as a reliable and We are known for our We are known for bringing the Seen as the most
innovative car company
dependable car reliable, dependable latest technologies to today, releasing vehicles
manufacturer focused customers in our products and with the newest technology
on quality products and services services and capabilities
Reliable Innovative
How targeted do we want our communications to be

with our customers?
Mass recognition and We have high brand We target our brand and Brand, products, and
brand recall pursued services targeted to
through TV ad recognition due to our products / services to specific particular customer
campaigns mass market campaigns customers segments and geographies
One to many One to one
163
ENTITY’s existing product and service portfolio may continue to

Product & services expand beyond traditional utility programs
Traditional utility programs Behind the meter Beyond the meter
Energy and information Value-added solutions Energy technologies and services
Energy Management • EE product sales • Home audits Home and

• Advanced usage information and data • DR programs, • Home warranties Business
offerings • Appliance services telecom
Evolving offerings
Grid edge
• Energy advisors • Bundled services Wireless
Home capacity,
• Remote consulting
EE & DR (internet, TV, buyback
management
Services security) Retail
• Landscape services Energy
DER Connecte Ecosystem
On-site
d Home Smart City
Alerts / notifications Billing / payment generation
• Solar sales • Appliance sales and storage
services
• Outage alerts • Level billing • EV charging • Smart product sales Installation
• Usage alerts • Group billing • Home battery sales and
• IoT support
• Pick your due date • C&I advisors maintenance
Existing ENTITY offerings Additional opportunity (subject to restrictions set by regulatory environment)
• Regulatory and policy management • Marketing, sales, and services • Design, engineering, procurement, and construction
• Operational excellence (billing, payment, call center) • Commercial management and partnerships • Vendor management and selection
Capabilities
• Customer asset management • Data and analytics • Economics

• Data security and privacy • Brand reputation, trust, and management
• Customer contact • Order fulfillment and delivery
• Marketing
164
Current-state
Where are we today?
Ambition (2025+)
Where do we want to be? Products & services
Product & services
What will our product mix look like?

Primarily regulated
offerings focused on Our products and services will We will only offer non- EDF U.S. has developed
be limited to regulatory deregulated energy
reducing energy usage regulated products and services for large C&I
through EE or DR requirements
programs
Traditional Non-traditional services for customers customers
How diversified do we want our product and service

offerings to be?
Develops products We want to focus on a
primarily focused on concentrated set of We want a diverse product Diverse products and
semi-conductors for services across a variety of
personal computers and related products or offering for customers industries and sectors
desktops services Concentrated Diversified
How will we communicate our products and services

to customers? Actively promote certain
Leverages brand to We will present products We will promote our products and services
manage customer across different channels
touchpoints and present and services to those products and services including stores, website,
its products customers interested across audiences direct mail, and mobile
Pull Push apps
165
There are options to consider for ENTITY to determine how people

People & organization work together across Customer Services
1. Structure 2. Roles 3. Resources 4. Capability

Individuals and interactions Collaboration Blended and mobile Responding to change
vs. vs. vs. vs.
Processes and tools Siloes Singular and stagnant Following a plan
• Work together to achieve a • Designed to promote and facilitate • Mobile workforce pulled to where • Continuous planning
shared business goal collaboration it's needed, when needed. incorporates new knowledge
• Effective interaction between • Find the best way to build and • Blended set of skills to adapt • Team constantly respond to
team members deliver and bring in diversified change to achieve best outcome
• Focus on team responsibility • Workers encouraged to perspectives. • Framework of feedback loops:
experiment and test solutions, Inspect and adapt to maximize
empowered to make quick value
decisions
Are you able to coordinate and interact Can you quickly mobilize Can you perform systematic
effectively across structural boundaries? the organization? problem solving?
How do you ensure high quality team Are you capable to make Are you able to quickly acquire and
leadership? decisions quickly? implement new competencies?
166
Current-state
Where are we today?
Ambition (2025+)
Where do we want to be? People & organization
People & organization
How can our teams manage through change?

Microsoft underwent a As consumers opted for
major transformation to A company’s organization is A company’s organization is
healthier breakfast choices,
shift its focus to nimble enough to realign aligned so that it can evolve to Dunkin Donuts opted to re-
focus its business on coffee
intelligent cloud
computing
quickly to change change and other breakfast items
Agile Adaptive
U.S. car manufactures

How should we work as a team?
with specialized Each employee has Employees leverage multiple
EY pools resources
nationally to ensure each
processes have specialized skills and skills in coordination to engagement is staffed with
employees focused on a contributes to solving a portion diverse and versatile
segment of the solve a business problem
production process of a problem Specialized Versatility skillsets
For what purpose do we invest in employee training?

NextEra employees are
Focus on employee
incentivized to become Focus on driving efficiency Focuses and invests in
six sigma trained to help development and career development rotation and
improve processes and and performance leadership programs.
enhance efficiencies Efficiency Empowerment
progression
What should the flow of work look like?

Roles are task oriented Defined roles and levels Elevated employee Strong emphasis on
and closely managed to individual unique ability to
mitigate risk and focus of authority / responsibility responsibility with less contribute with high
on efficient processes drive employee specialization Authority Autonomy management overhead autonomy
167
Utilities are uniquely positioned to combine digital, emerging

Technology & data technologies and energy innovations
Unique field of play

For utilities, addressing
decarbonization, digitalization, and
decentralization
168
Current-state
Where are we today?
Ambition (2025+)
Where do we want to be? Technology & data
Technology & data
How ‘predictive’ do we want our analytics functions

Uses data to understand Our analytics will shed insight to be?
Our analytics can help predict Predictive models help
how companies use into what previously serve more relevant ads
platform to help drive what will happen to customer
future product decisions happened
Information Optimization
To what extent do we want to invest in automation?

Insurance companies
invest in basic We will invest in simple, Our automation investments will Google’s AI, from its
photo processing to
automation tools to rudimentary forms of focus on cutting-edge virtual assistant features
speed up claims
processes automation automation technologies are regarded as leading-
class
RPA Advanced A.I.
How standardized do we want reporting across the

Reporting and
Reporting is consolidated organization? Individual BUs use
visualization tools such
as Power BI and Tableau and socialized as one
Individual business units reporting and
enable single sources drive the reporting they visualization tools most
across an organization ‘source of truth’ across the find most relevant relevant to their
organization Standardized Reporting Bespoke Reporting organization
or business units
Where do we want to focus our technology & data

Splunk aggregates investments? Clarabridge processes
synthesizes ‘big data’ Our investments should drive Our investments should drive real-time analytics
across multiple systems across channels to drive
for search and operational efficiencies customer experience insight and improve
analyzation customer experiences
Back-office Front-office
169
Understanding the end-to-end customer lifecycle provides

Process & policy opportunities to highlight process and policy pain points
Want to
Learn about
disconnect
ENTITY
Want to Start Service
complain Receive 1st bill
Stop
Have a
Set up account and preferences
Sign-up for
pl &
W
service
ts
pricing plan
m es
elc
ain
co Issu
issue
o
me
jou
Have an Moving
rn
Outage
locations
ey
outage
Bil men
Pay my past
pay
ling t
due bill Make account
changes
Encountered a billing problem &

Understand & Use Receive
pay my bill information
Manage my New
usage Interested in business
Field service programs
170
Current-state
Where are we today?
Ambition (2025+)
Where do we want to be? Process & policy
Process & policy
To what extent will we enforce customer-facing

policies?
Due to the nature of their Policies are enforced on a
business, health insurance Policies are consistently Nordstrom’s return policy is
case-by-case basis extremely lenient toward
provides must consistently
enforce policies across
enforced across the depending on the customer accepting returns in order to
customer base business Business-first Customer-first situation please the customer
Do we want our policies and processes designed to

manage risk or drive customer satisfaction?
Banks design policies to Policies and processes are
Policies and processes are ENTITY designs company
manage risk and protect
designed to protect the designed to enhance the policies across the
themselves from
fraudulent transactions business from risk customer experience and organization to help drive
customer satisfaction
and customers
Manage Risk Drive CSAT drive satisfaction
171
How do we manage governance within and across Customer

Governance Services to support collaborative decision-making?
Governance Levels Purpose
Are we doing the right things?

Strategic Bodies:
Prioritization of ENTITY investments for optimal
Set the strategic direction for ENTITY, assess and
outcomes and accountability through structured
ensure the alignment of direction with business
objectives and strategy Strategic decision making and annual planning
Managerial Bodies: Are we doing things the right way?

Focus on setting standards, assuring Efficient execution of ENTITY strategy,
Managerial roadmap and delivery of services
compliance and evaluating services
Operational Bodies: Is ENTITY receiving value from

Focus on transition activities and the Operational the investment?
delivery of programs, projects and Improving and assessing ENTITY
services at the operational level services provided to customer
172
Current-state
Where are we today?
Ambition (2025+)
Where do we want to be? Governance
Governance
How will accountability be shared across the

organization?
In large oil & gas
In designer fashion Limited to key groups or Shared across the companies, accountability
brands, accountability is
limited and centralized stakeholders to drive organization and flexible is shared and delegated
across many levels of the
to key decision makers efficient processes Centralized Delegated processes are in place organization
How will decisions be made across the organization?

Upper management All employees are All employees are
Key decisions are driven encouraged to help
by vision and roadmap drives decision making included in management’s support decision making
set by leadership and strategic direction of that drives products and
company Top-down Bottom-up decision making process services
173
Across the enterprise, ENTITY works with third-parties to utilize

Partners & suppliers partnerships where appropriate
Customers Channels Corporate brand & Products & services People & organization Technology & data Process & policy
reputation
Examples of partners used today Examples of areas for potential partnerships
• Customer insights and • Channel optimization • Reputation management • Third-party vendors for • Third-party contractors • API gateways • Collections and credit
research • Contact center • Marketing management products & services and contingent workers • Advanced web analytics • Payroll processing
• Customer strategy outsourcing • Lead generation, • Order fulfilment and (e.g. freelancers, • IT services • Process automation
• Customer acquisition (P&S) • Service requests and promotion, campaign management consultants) • Third-party data (on
• General customer inquires scheduling exec. customers, channels,
• Branch locations products, etc)
Claritas Prizm data used to LivePerson powered live External advertising agency Smart thermostats in ENTITY outsources Microsoft office 365 and To make payments,
drive additional insight from chat functionality utilized supports with creatives and ENTITY’s marketplace application development Power BI support reporting customers often use
customers by customers tracking effectiveness provide additional savings and data center operations and visualization of KPIs ENTITY’s billmatrix service
options for customers to IBM tracked today
Works with fortune 100 companies to deliver Partners with companies across industries to Works with 90% of Fortune 100 companies Analytics platform used assess existing customer data
experimentation and personalization across key drive brand and CX research aggregate and synthesizes ‘big data’ across -- driving new KPIs that provide refined insights to
channels such as web, mobile, and apps multiple data systems for search and analyzation support sales, service, compliance and efficiency
Higher potential Lower potential
174
Current-state
Where are we today?
Ambition (2025+)
Where do we want to be? Partners & suppliers
Should future partnerships drive optimization or

enable new capabilities?
Drive operational
Drive customer efficiencies, reducing Differentiate our Develop new capabilities
acquisition of “new-
costs or improving capabilities and service such as EV charging
move” home services solutions
functional performance Operational Strategic offerings in the market
(e.g. Optimize) (e.g. new capabilities)
What part of the business do we want partnerships

to support?
Investments in data Out partnerships interface Partners are directly Business and residential
science and analytics directly with our
to enabler smarter interfacing with the smart-thermostat
energy solutions company internally customer partnerships
Non customer-facing Customer-facing
175
Digital KPIs will become increasingly important as contact and

KPIs interactions shift toward digital channels
Value driver Typical call center metric Intent of metric Equivalent digital metric
Average speed to answer Customer responsiveness Channel latency / clicks to destination
First call resolution First contact / first visit resolution
Customer query resolution
Number of contacts to resolution Clicks to resolution
Cost
Complaints per CC FTE Customer satisfaction Complaints per active users
FTE per customer Mobile app adoption rate
Efficiency
Average handling time Time per session
Right first time Resolution rate completed on channel

Leading Number of contacts to resolution Clicks to resolution
customer Quality Time to resolve query Customer satisfaction Time per session to resolution
experience Number of transfers Number of clicks per session
Customer journey quality
Customer repeated information Login attempts per session
Outsourced supplier management SLAs Customer responsiveness Hosted support management SLAs
Product Churn Customer Satisfaction Product Churn

Product Lapsed after 14 days Sales Quality Product Lapsed after 14 days
Revenue Cost per sale Cost / efficiency Cost per sale
Sales per FTE Sales per channel
Sales effectiveness
Agent conversion rate Channel conversion rates
Source: EY Analysis
176
Current-state
Where are we today?
Ambition (2025+)
Where do we want to be? KPIs
KPIs
What types of KPIs will we monitor and track?

Water utilities focus on We will focus on how the We will monitor progress or KPIs measure strategic
KPIs that track and business is performing trends toward a stated value such as customer
optimize business lifetime value and EV
operations today and in the past future direction market share
What will be the mix of KPIs among customer

Shared service centers interactions?
Established a customer
and outsourced KPIs will measure the
providers constantly KPIs will measure the outcome effort score metric after
performance of coaching sales
look for ways to improve
transactional individual transactions of the transaction representatives on
alternative phrasing
performance Transactional Outcome-oriented
Will KPIs be shared and assessed across the

enterprise, or managed individually with select BUs?
Consumer product Built a consolidated
brands track and Individual business units A single, centralized analytics center of
manage KPIs at a
product (business unit)
will be responsible for business unit will track and excellence from data that
was previously in more
level tracking and managing KPIs manage KPIs than 2,100 silos
Select BUs Enterprise Wide
177
Employee engagement scores across ENERGY COMPANY A and

Culture & values ENTITY utilities have fallen over the last 10 years
Employee Engagement Scores, ENERGY COMPANY A and ENTITY Total Safety Incidents – ENTITY: 2017
100% Based on OSHA, LTI, and CMVI reported incidents
Asset Management 0
95%
CIO and Info Tech 4
> 80% = excellent
90% Customer Services 24
87%
Electrical Operations 49
85% 83% 83% Electric System Operations 1
85% 82%
82% 82% 80% Electrical Engineering and Construction 24
80% 79%
80% Sempra
75% Gas ops 23
< 80% = good
75% 73%
Fortune 500 Gas transportation ops 0
72% SDG&E Operations support 14
70%
2009 2011 2013 2015 2017 2019* 3
*based on trend Supply management & logistics
Employee engagement index represents a combination of four survey questions based on employee satisfaction,
opportunities outside of ENERGY COMPANY A/ENTITY, whether or not the employee would refer a friend to ENERGY
COMPANY A/ENTITY, and how proud the employee is working at ENERGY COMPANY A/ENTITY
Source: ENTITY safety report, Employee Engagement Index Report (2017)
178
Current-state
Where are we today?
Ambition (2025+)
Where do we want to be? Culture & values
Culture & values

Zappos has made
Employees are Employees are focused on Employees are obsessed conscious trade-offs in its
compensated by the service model to ensure
sales they make and the producing results in a about the customer and customer service is
quota the meet timely manner Efficiency Customer the experience they have ingrained across the
company

Employees do not hesitate to PillPack, a full service
Employees are given a
budget to go above and take additional steps to Employees are inspired to digital pharmacy, has a
‘team-first’ culture that has
beyond in customer
ensure quality is seek out innovative helped turned the
service
ingrained in the culture opportunities on their own pharmaceutical industry
Quality Innovation up-side down
How do team members view trust?

Card issuers rely on
credit scores, on-time Trust is immediately Lyft places enormous trust
payments, and healthy Trust builds over the course given across all levels of the on drivers to help with
credit balances to build of time passenger pick-up requests
trust over time with organization
consumers Trust is earned Trust is given
179
Natural gas-fired plants and utility-scale renewables will dominate

the US generation mix
West Coast Midwest North East
• Natural gas currently dominates; • High coal generation • High electricity prices
strong uptake of renewables • Balanced portfolio of natural gas, coal • Favours natural gas; renewables
• High adoption of distributed and renewables by 2050 displacing coal and nuclear power
solar PV • Wind power will comprise most of • Investment in energy storage and smart
renewables by 2050 grid technologies is on the rise
• Most states have binding standard for
clean energy
South East
California WA
MT
ND
N
VT H M
• High natural gas, coal and nuclear
• California leads the way in M
N
E
reserves;
distributed solar PV and EV
OR
WI
Natural gas to dominate the power

ID
SD MA
•
adoption
NY
WY M
demand in future
I RI
CT
PA
NV IA N
NE
O MD J
Solar deployment is slow due to lack of

DE
UT
IL
I
H
W
•
CO N
Renewable Portfolio Standards program

V VA
ENTITY KS
MO KY
N
AZ
NM
OK
A
TN
S
C • Renewables is expected to displace coal
R
M A GA
C
and nuclear power by 2050
S L
ERCOT* TX
L
• Utility-scale solar PV to pick up
A
• Wind generation is high in Midwest and FL
ERCOT region
180
Three factors explain why tipping points will occur in the US much
later than Europe
Low coal, gas generation and

1 utility-scale renewable costs
2 Low T&D costs
3 Low taxes
• Natural gas costs in the US are almost half • Cost of T&D estimated at around $49/MWh • Taxes contribute only 5% of US retail
that paid in Europe (US$2.5/MMBtu in Europe vs as low as $22/MWh (Southeast, electricity prices – compared to making up
compared to $4.9/MMBtu). the cheapest US region). one-third of prices in Europe and 20% in
ANZ
• Coal prices are as low as US$12 a ton • Low maintenance cost: over-ground poles
compared to US$64 a ton in Europe. and wires are much cheaper to maintain • In the US, generation costs make up 50%-
than the underground infrastructure used in 60% of electricity retail prices compared to
• LCOE generation cost of new build much of Europe. only 38% in Europe
renewables is already competitive in many
states in the US. Utility-scale renewables to • Over recent decades, US utilities have
gain market share as prices decline further. invested less in the electricity grid than
utilities in developed regions of the world.
• Only one new nuclear plant (PLANT)
scheduled for new units in future, while • The US has one of the highest per capita
other US plants are uprated/ upgraded consumption of electricity and a relatively
enabling additional capability with minimal lower number of customers, thus making
investment. T&D costs lower.
181
Cost of natural gas and coal is projected to achieve parity with

utility-scale renewables after 2030 in the US
2 Low T&D costs
3 Low taxes
Generation cost* (Northeast) Generation cost* (Westcoast)

200 200
150 150
100 100
50 50
For 2017, overall generation cost ($/MWh) in the US is less 0
0
than in Europe 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8
Generation cost* (ERCOT) Generation cost* (Southeast)

Westcoast: Midwest: 68 Northeast: 200 200
Europe: 97 Vs. 86 77 150
100
150
100
50 50
ERCOT: 64 Southeast: 58
0 0
1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8
Utility
Coal Gas Solar* Wind*
Generation cost* (Midwest)
Rooftop solar to achieve grid parity only
200
after 2030, for all regions in the US.
150
*The LCOE generation cost of new build renewables is competitive in many Westcoast and Southeast to achieve parity
100
states in the US, however, the cost of running the whole existing generation fleet sooner than other regions, mostly due to
50
is calculated after averaging the cheaper cost of new and future build with the favorable climate and regulatory
0
higher cost of existing plants in the above graphs 1 2 3 4 5 6 7 8 environment driving higher value.
182
T&D costs will not remain low as utilities will need to maintain and
improve their T&D infrastructure and performance
2 Low T&D costs
3 Low taxes
T&D cost* in $/MWh (Europe vs. US) US capital expenditure breakdown by categories for utilities
(in US$ billion)
30 • T&D investment is expected
35
44 to account for a growing
1 114
22
39
112 106
share of overall
99 98 expenditure.
T&D cost* ($/MWh)
49
41 41
32 40
68 36 • There is an increasing focus
82
124 on grid modernization and
2 29 23 18
43 26 16 integrating renewable
80
89 energy resources.
42 45 48 49 45
229 • Several utilities, including
258
433 Pacific Gas & Electric,
3 129 2015 2016 2017 2018 2019 ENTITY and Southern
189
198 Company, announced
Source: SNL Energy Others billions of investment in
Series6 Series5 Series4 Series3 Series2 *Capital expenditure is sum of expenditure of 52 electric and gas utilities. Generation T&D over next 5-10 years.
Series1 Other expenditure includes environment, renewable, gas and corporate
expenditure T&D
183
Low taxes and levies applied to low generation and T&D costs lowers
overall US retail prices compared to Europe
2 Low T&D costs
3 Low taxes
Retail price breakdown by regions, 2015 High taxes in Europe vs US

$- $50 $100 $150 $200 $250
1 57% 28% 5% 1/3 of electricity retail

prices in Europe comprise taxes
2 52% 30% 5% and levies compared to only 1/20
of the total retail price in the US
3 54% 26% 5% High composition of generation
cost in the US
4 49% 30% 5%
50%-60% of retail prices
5 59% 24% 5% in the US are attributable to
generation costs, which make
6 38% 22% 33%
account for a much lower share
(38%) of Europe’s retail prices
Series1 Series2 Series3 Series4 Series5
184
ENTITY is leading the way in the US for increasing the renewable

generation mix
Coal Gas Renewables Nuclear
ERCOT Midwest West Coast

60%
70% 60%
60% 50%
% Total Demand
50%
50% 40%
40%
40% 30%
30%
30%
20% 20%
20%
10% 10%
10%
0% 0% 0%
1 2 3 4 5 1 2 3 4 5 1 2 3 4 5
Northeast Southeast California

60% 50% 70%
% Total Demand
50% 60%
40%
50%
40%
30% 40%
30%
20% 30%
20% 20%
10% 10%
10%
0% 0% 0%
1 2 3 4 5 1 2 3 4 5 1 2 3 4 5
*Renewables, excludes hydro-based power and includes both grid-scale and distributed renewable generation. Renewables comprise of Bioenergy, Wind, Geothermal, Solar PV, CSP and Marine
185
The tipping points are expected to arrive at varied times in different

regions
Europe
T1 T2 T3
2022 2025-29 2042
U.S.A.
T1 T2 T3
Northeast 2031 2025-29 2039
West Coast 2034 2025-29 2045 Oceania
Midwest 2036 2025-29 2044

T1 T2 T3
ERCOT 2038 2025-29 2045
2021 2025-29 2040
Southeast 2042 2025-29 >2050
186
US Northeast: Tipping point 1 arrives first due to a sharp rise in the

retail and T&D price of electricity

Northeast Tipping Points Analysis

Grid cost parity of non utility T&D parity with Fully delivered away in US Northeast
$800
solar plus storage systems non utility solar + cost of
battery LCOE electricity
$700 Period of EV & ICE parity
(cost + performance)
$600
$500 Cost of transmission away in US Northeast
2
$/MWh
and distribution
$400 1
$300 3
$200 Non utility solar
away in US Northeast
+ battery LCOE
$100
$0 1
Source: Utility impact model Central scenario US Northeast — EY Analysis
187
US West Coast: The pace of change will be defined by growing

distributed solar, battery storage and uptake of EVs

West Coast Tipping Points Analysis

$800 Tipping point 1 is 16 years
Period of EV & ICE parity Grid cost parity of non away in US West Coast
(cost + performance) utility solar plus storage T&D parity with
$700 non utility solar +
systems
battery LCOE
$600

$500
away in US West Coast
Fully delivered
$/MWh
2 cost of
$400
electricity
1
$300
3 Cost of transmission Tipping point 3 is 27 years

$200 and distribution away in US West Coast
$100
Non utility solar
+ battery LCOE
$0 1
1 2 3 4 5 6 7 8 9 101112131415161718192021222324252627282930313233343536
there will be segments of the customer base for whom the
Source: Utility impact model Central scenario US West Coast— EY Analysis
188
US Midwest: Coal generation will continue to dominate but utility

scale renewables is starting to make inroads

Midwest Tipping Points Analysis

$800 Grid cost parity of non away in US Midwest
Period of EV & ICE parity utility solar plus storage T&D parity with
(cost + performance) systems
$700 non utility solar +
battery LCOE
$600
Fully delivered
$500 away in US Midwest
electricity
2
$/MWh
$400
Cost of transmission
$300 1 and distribution
$200 Non utility solar away in US Midwest
+ battery LCOE
$100
$0 1
1 2 3 4 5 6 7 8 9 101112131415161718192021222324252627282930313233343536
Source: Utility impact model Central scenario US Midwest— EY Analysis
189
US ERCOT: The pace of change will be defined by modest growth in

solar PV, but gas dominates the generation mix

ERCOT Tipping Points Analysis

Grid cost parity of non
Period of EV & ICE parity utility solar plus storage away in US ERCOT
(cost + performance) systems T&D parity with
$700
non utility solar +
battery LCOE
$600

$500
Fully delivered away in US ERCOT
$/MWh
2 cost of
$400
electricity
$300 1 Cost of transmission

and distribution
$200 away in US ERCOT
Non utility solar
$100 + battery LCOE
$0 1
1 2 3 4 5 6 7 8 9 101112131415161718192021222324252627282930313233343536
Source: Utility impact model Central scenario US ERCOT— EY Analysis
190
US Southeast: Low cost gas and nuclear generation means retail

prices are some of the lowest in the US

Southeast Tipping Points Analysis

Period of EV & ICE parity
(cost + performance)
Grid cost parity of non away in US Southeast
utility solar plus storage
$700
systems
$600

$500
away in US Southeast
2
$/MWh
$400
Fully delivered
cost of
$300 1 electricity
Tipping point 3 in the US
$200 Non utility solar Southeast is after 2050
+ battery LCOE
$100 Cost of transmission
and distribution
$0 1
Source: Utility impact model Central scenario US Southeast — EY Analysis
191
Utilities are responding in different ways across the U.S.
NextEra to add wind Southern Company ConEdison plans to invest AEP plan to invest US$1.8 PG&E plans to expand NJR Clean Energy Ventures
capacity of 2,400 to 4,100 entered into a joint US$1.25 billion in billion in new renewable energy efficiency, its use of owns and develops
MW during 2017-18 development agreement renewable energy energy projects during the renewable energy, and onshore wind and
with Renewable Energy production facilities over 2018-2020 timeframe energy storage that would commercial / residential
Expects to add solar Systems Americas, Inc. the three year period exceed current state solar projects
capacity of 400 to 1,300 (RES) to develop and (2017-2020) The company has in mandates
MW during 2017 to 2018 construct ~3,000 MWs pipeline US$4.5 billion, 2 5%–10% of 2018F EPS
across 10 wind projects GW Wind Catcher complex PG&E Central California
expected to be placed in in Oklahoma — its largest has asked state regulators
In Dec 2017, NextEra US$137 million of planned
service between 2018 and clean energy investment in for permission to build an
Energy Resources has been capex in 2018
2020 2018 estimated 25,000 electric
selected by Tucson Electric
Power to develop, build vehicle (EV) chargers at
and operate a 100-MW In January 2018, Southern sites in Northern and
solar array and 30-MW Power announced
energy storage system acquisition of its 20 MW
Gaskell West 1 Solar
Facility
192
Discussion: Alphabet's diverse portfolio will set the bar for

future customer service standards
2018 2021 2023 2025 Beyond
Purchase of Smart city powered Complete

Packaged electricity Completely self-sustainable energy and connected by integration
Access & Energy
renewable plus network service worldwide Integration of

contracts plus internet offering Alphabet
smart city
from NextEra and home
Integration Adoption of Increased data
P2P energy
with P2P autonomous improves maps to
Integration exchange
energy EVs guidie manual and
with DERMs services autonomous traffic
services Completion
Automated of first smart
Nest/ Google Home
Nest join Use of autonomous

Google Duplex- service city build drones for delivery
hardware requests and Mass services in smart cities
enabled AI-driven
resolutions adoption of
smart home customer
ridesharing
devices calls Analyze health information alongside energy
Commercial and network use to optimize lifestyle
Partnership autonomous
AI Call Center with vehicle adoption
Adoption of
community
smart
Toronto solar
wearables Development of new energy
smart city
Deepmind
storage methods at grid-scale
Release of design
duplex Google Voice made Auronomous drones Development of
Successful testing and available to deliver packages in Wifi balloons personal health
early rider use enterprise users southeastern Australia provide internet to trackers
of autonomous vehicle Puerto Rico
Sidewalk Labs Waymo Google GoogleX Google Capital
193
Scenario 1: possible energy retail deregulation in California
Retail Deregulation
Change in Customer Share between Competitive and non
Timeline Considered 10-20 years Competitive REPs in Texas post deregulation
100.00%
Risk of happening Medium
90.00%
Scenario H M L
80.00%
Customer Loss 100% 50% 20%
70.00%
Organizational impact
60.00%
Profit impact
50.00%
Rate Impact 40.00%
T&D impact 30.00%
20.00%
Do we compete for end customers in
this market? 10.00%
Are channels / products / brand going

TOM consideration to be important to our business? 0.00%
1 7 13 19 25 31 37 43 49 55 61 67 73 79 85 91 97 103 109 115 121 127 133 139 145 151 157 163 169 175 181 187
Does cost leadership become more
important than service or innovation? Series1 Series2 Series3 Series4 Series5 Series6
Source: Electric Choice, Texas PUC Report on Retail Competition and Summary of market share
194
If regulations changed and consumers had retail choice in California,

how might ENTITY respond?
If consumers in California were at some point in the future able to choose their retail electricity supplier from a market of qualified, experienced and even
familiar organizations, how would we respond and how would that change the decisions we make for ENTITY and the Customer Services business?
Response Immediacy Potential Responses and Consequences

0-5 years Lobby for weaker Aggressively expand utility-scale renewables
policy and Emergence of customer-friendly
5-10 years regulatory Raise barriers to entry for integrating rooftop solar and large scale low-cost centralized
Fight support for storage technologies energy supply model with low
10+ years rooftop solar incentives to go off-grid
and storage Aggressive price war to abate rooftop solar uptake
0-5 years
Invest today in competitive capabilities e.g. analytics, innovation,
5-10 years digital, product & services, brand, marketing Use ENTITY as a ‘once in a lifetime’ opportunity to anticipate and gain
Embrace
1 10+ years Reconfigure business towards DER and ancillary services
competitive advantage
Greater retail
choice in ENTITY
0-5 years
Navigate customer Higher rates Lose significant market share due to non competitiveness e.g. Texas
Ignore 5-10 years sentiment and over shrinking
attrition customer base
10+ years Traditional retailers become increasingly marginalized
0-5 years Reduce Customer Services expenses aggressively Design for cost saving and lean operations
Exit 5-10 years Reduce expense, deliver against medium term regulatory priorities Build capabilities around regulatory mandates (e.g.
EE) but don’t differentially invest in ‘additional’
10+ years Balance investment vs performance over mid term features
195
Scenario 2: CCA proliferation in California
CCA ENTITY IOU v CCA market share

Timeline Considered 1-5 years 90%
Risk of happening High 80%

Scenario H M L
70%
60%
% customers
50%
Profit impact
40%
Rate Impact
T&D impact 30%
20%
Do we compete for end customers in
this market?
10%
Are channels / products / brand
TOM consideration important anymore?
Does cost leadership become more
0%
1 2 3 4
important than service or innovation?
IOUs CCAs
196
With the introduction of CCAs, ENTITY might soon have a different

relationship to its customers; how might ENTITY respond?
CCAs are being introduced to ENTITY’s service territory; the number of customers who might be affected is unknown but has the potential to be large pending
the decision by the City of ENTITY. What does this mean to the Customer Services business and the decisions being made today?

0-5 years CCAs must pay full cost of lots load through PCIA (achieved),
Lobby for greater eliminating some price advantages Achieving competitive parity
5-10 years
Fight regulation and full cost with a big threat to the
reflective recovery CCAs are regulated like utilities, eliminating market advantages e.g. customer supply business
10+ years
pricing strategies that utilities are restricted from using
Reconfigure Customer Services business to meet core regulatory

0-5 years
obligations only (EE, T&D billing etc)
Embrace a DSO and regulatory market role; use ENTITY to meet this but
5-10 years Incorporate fixes to pain points and low cost quick-wins into
Embrace
2
manage cost by stripping back on non-core capabilities
ENTITY design; don’t differentially invest in additional retail
10+ years capabilities
Introduction of
CCAs
0-5 years Potentially create
Continue to operate as customer confusion,
Potentially sets precedent for future deregulation or further regulatory
Ignore 5-10 years we do today; bill CCAs lose end to end
intervention e.g. telecommunication industry
where appropriate customer relationship
10+ years and trust
197
Scenario 3: Grid defection on a large scale
Grid Defection Share of US residential battery storage by application 1

100%
Timeline Considered 10 years
90%
US residential battery storage installations by

Risk of happening Low
80%
Scenario H M L
70%
60%
application (%)
50%
Profit impact
Rate Impact 40%
T&D impact 30%
20%
• Does brand become more 10%
important for regulatory influence
TOM consideration or less important?
0%
• How will we enhance our offering
to provide a strong alternative? 2014 2015 2016 2017E 2018E 2019E 2020E 2021E 2022E
Off-grid Grid-independent back up Grid-tied
Source: Green Tech Media
198
With technological advances driving falling costs of storage and solar

systems, consumers will soon have the ability to move off grid
Off grid systems are attractive to a range of customer segments, from those who want independence to those who look for reliability. Previously, this wasn’t an
economic reality for consumers; increasingly the costs are making this viable. If more customers departed from the grid, how would Customer Services react?

0-5 years Those that the grid was built for and maintained for remain
Lobby for policies that responsible for those investments Achieving competitive parity
5-10 years
Fight incentivise grid usage with a big threat to the
or departure fees customer supply business
10+ years Consumers perceive ENTITY as anti-customer choice
0-5 years
Utilize the utility’s customer relationships and asset management
expertise to grow new revenue streams related to off grid services Customer Services business re-tools its existing capabilities to market
5-10 years
Embrace e.g. installation, sales, manufacturing, micro grid developments
3
and drive DER and off-grid system related services
etc
10+ years
Consumers shift
off grid
0-5 years
Continue to invest in Monitor and assess
Utility continues to offer centralized electricity delivery and regulatory
Ignore 5-10 years centralized grid-based market economics and
programs until there is a significant threat
energy model turning point
10+ years
199
Scenario 4: Accelerated growth in Electric Vehicle adoption
EV Growth Acceleration Historical and projected cumulative ZEV sales, accounting for vehicle scrappage rates
for 2025 goal in ENTITY
Timeline Considered 10 years
3.5M
Risk of happening High
3.0M
Scenario H M L
Cumulative sales of ZEVs

2.5M
EV Growth + 100% +50% +25%
Organizational impact 2.0M
Profit impact 1.5M

Rate Impact
1.0M
T&D impact
0.5M
• How does the growth in EVs
drive a change in our training, 0
brand and purpose? 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
TOM consideration • How do our rates have to evolve
to provide a credible service as Actual 2025 goal 2016-2017 growth rate
new products & services are
integrated onto the grid? 5% diminishing per year 2025 goal (smoothed growth)
Source: Next 10
200
As EVs become more popular, the consumer relationship with the

utility will change as ENTITY takes on additional roles
Electric Vehicles are gaining in popularity; as they do so there will be a shift in the conversation that the Customer Services group will have with customers, the
topics they talk about and the types of services that they require from the utility. How will ENTITY respond?

0-5 years
Limit conversations Potentially be left behind on a hot consumer topic
5-10 years about EVs to save AHT
Fight and reduce customer
10+ years contact Consumers perceive ENTITY as a transactional supplier, not a partner
0-5 years Grow ENTITY’s existing Electric Vehicle programs to be a leader in

the area Customer services develops additional training for agents and invests in
5-10 years
Embrace product innovation and marketing in order to position itself as an
4 10+ years
Gain regulatory approval to expand EV involvement and market energy leader in the region
additional EV related products (chargers, cars etc)
EV Growth
Acceleration
0-5 years
Offer regulated Customer services
Ignore 5-10 years
programs but no more does not have to adapt
Other leaders in EV charging, programs and vehicles emerge
10+ years
0-5 years
ENTITY withdraws
Exit 5-10 years from existing EV
programs
10+ years
201
Understanding the emerging technology is crucial to remain relevant

as a utility
Forerunners have been able to successfully harness these emerging
technologies to introduce new products and services to the market Deep Natural
Seamless Machine
learning language Personal
Agile interfaces learning
gene- analytics
methods
Fog Pre- ration
com- Multi- scriptive
puting analytics Speech
cloud API Advanced recognition
Micro- gateways analytics Natural
services language
processing
Conver- Cognitive
Distributed sational bots
ledger robots
technology
Auto- Autonomous
Smart nomous transport
wallet operatives
Pre- Power &
Distributed configured Robotic
utilities process
computing nodes Nano-
and storage Decarbonization, automation robots
Crypto- digitalization and
Bio-
currency decentralization mimetics
Personal
Smart
assistants
contract
Energy
block- Sensory
chains robotics
Smart Virtual
meters Connected reality
home Augmented/ Volumetric
Wearables new reality displays
Gesture
3D/4D control
Autonomous Low IoT services
Intelligent power networks Reactive Digital printing Holo-
grid
things sensor sensor twinning graphic
interfaces
202
High-level design
High-level design workshop
The following section depicts the content that was used for the associated workshop. The output and thinking from this session, which was held on December 4 th, has been
Workshop date: December 4th, 2018
Making decisions based on vision identified in previous workshops 1. Vision &
• Validate design principles for the operating model design
2. High Level
• Make a set of high-level design choices to help guide the design of
Alignment Design
the future operating model
• Understand potential impacts to existing/to-be business processes
4. Customer
Attendees 3. Operational
Services
Improvement
Transformation

204
Objectives for today
Review a set of decisions that build on the Vision & Alignment workshop
Determine the set of decisions which will set up the Customer Services organization of the future
(2025+) and agree on next steps
Understand the operational improvement initiatives gathered from the performance improvement

workshops
205
We have used the Operating Model structure to examine the discrete

components that we need to influence in order to achieve our mission
Vision and strategy
Customers

e
ri enc
e
u sto m
C
Offerings

Capability
Governance

Enablers
Performance metrics
Culture & values
206
Building on input from leadership, we have agreed the following

vision statements across each of the operating model components
Customers Channels Brand & communication Offerings
Experience is optimized across We are excellent at our core

To provide all of our customers ENTITY customers have a
an selective set of channels to offerings and add value to
with an effortless energy personal and positive
support 75%+ of contact customers with
experience experience with our brand
digitally complementary services
People & organization Tech & data Process & policy
We are an agile organization We harness technology to drive Process design and execution
with employees empowered to process efficiency and anticipate prioritizes the customer, even
make decisions our customer’s needs when that is challenging for the
business
Governance Performance metrics Culture & values
Delegated authority is given to Priority KPIs measure and We have a continuous

defined, accountable and communicate strategic improvement and first-time
empowered decision makers at outcomes to drive informed resolution culture, and hold
all levels decisions each other accountable to this
207
These vision statements are all designed around achievement of the

Customer Services mission…
Workshop Output
Zero energy wasted
Note: to be approved
208
The Customer Services mission is elaborated on in the

design principles for the Customer Services Target Operating Model..
We put customers first, as we provide them with an effortless energy experience
We are an agile organization that is able to respond quickly to changing market

conditions
Zero energy wasted

We prioritize digital solutions as we anticipate our customer’s needs
We focus on designing efficient processes, as we encourage a culture of

continuous improvement
Note: still draft, to be approved
209
Our design principles help to guide the direction of each High Level
Design decision and have corresponding assessment criteria
Design principles help us articulate the biases of the organization and enable us to prioritize some activities over others through the
application of corresponding criteria
Design principle Assessment criteria
We put customers first, as we provide them with an effortless energy Does it enable a simpler experience for the customer?
experience
We are an agile organization that is able to respond quickly to changing Is it controllable and achievable within the Customer Services
market conditions organization?
We prioritize digital solutions as we anticipate our customer’s needs Does it put digital first for the customer and the business
We focus on designing efficient processes, as we encourage a culture of Does it increase the efficiency of the Customer Services organization?
continuous improvement
Does it allow us to bring a wider range of ENTITY services to the

customer?
210
High-level design decisions
Workshop Output We have made decisions across 10 questions to guide the

development of the Target Operating Model for Customer Services
# Question Decision Next step
We will use Customer Effort Score to measure performance across customers

1 What are the primary set of KPIs that we will use to We will use an Employee Engagement Index to measure performance across employees Serves as an input into KPIs and performance metrics workshop
measure success of the Customer Services business? We will use Cost Per Contact to assess value across the organization to further develop additional KPIs and metrics
We will use Days Elapsed to Deliver to measure organizational agility
What are our priority channels to invest in to create an We will prioritize the following channels: (1) Mobile App, (2) Voice, (3) SMS, (4) Chatbots, Discuss implications with digital and CX team; serves as an input
2 effortless customer experience? and (5) Live chat into the customer experience workshop
What are the highest impact areas we should prioritize We will prioritize reducing customer effort across the following areas (1) billing and Perform additional analysis on cited impact areas and develop
3 when trying to reduce customer effort? payment, (2) pricing plans / offering, (3) outage communications (4) field service supporting initiatives to help address pain points; serves as an
appointment, and (5) understanding communications input into the Customer Experience workshop
How can we encourage customers to interact via our A range of adoption and engagement strategies across priority channels were discussed Develop an adoption and engagement strategy for each priority
4 priority channels? to help alter and shift customer behavior channel listed
What appointment window should we offer for field We will offer 2-hour appointment windows for non-emergency requests.. Emergency Assess the technical feasibility and operational impact of shifting
5 service visits? requests will operate on 1-hour windows. toward 2-hour appointment windows
6 How will we use different customer profiles across the We will primarily use demographic and behavioral attributes to support our customer Develop a customer profile and grouping strategy that
business? groups across the business incorporates the customer attributes discussed
7 How will we serve our CCA customers? CCA customers will be the norm by 2025 and will be treated as a key customer group Review BPDs to understand how we are aligning to CCA and
non-CCA customers in 2025
8 How will we handle CCA billing? We will strategically explore various CCA billing options, including the option of sending PERSON to follow-up and discuss with executive leadership team
two separate bills
How can we provide each ENTITY customer with a Follow-up with PERSON on existing communication initiatives
9 personal and positive experience with the brand? We will focus our efforts on effective communication of existing initiatives and activities and strategies
10 How will we drive empowerment and accountability for We will work to build out an effective governance structure across Customer Services Develop a formal governance structure across Customer Services
decision-making across Customer Services? as part of future workshops
212
1. What are the primary set of KPIs that we will use to measure
success of the Customer Services business?
1 2 3 4 5 What are the primary set of KPIs that we will use to measure
6 7 8 9 10
success of the Customer Services business?
Customers Employees Value Agility

What are the major KPIs we will use to How will we measure how well we engage, How will we track the commercial How will we measure our agility and speed
measure our performance with our serve and / or retain our employees? performance of the customer services to deliver for our customers?
customers? business?
What are the primary set of KPIs that we will use to measure success of the Customer Services business?
214
1 2 3 4 5 Across customers, what are the primary set of KPIs we will use
6 7 8 9 10
to measure performance?
Illustrative view:
customer KPIs Customer Satisfaction Score (CSAT) Net Promoter Score (NPS) Customer Effort Score (CES)
Provides direction to improvement areas around

Opportunity to ask a variety of questions providing Measures customers opinions around channels,
Usability broad insight about customer satisfaction contact moments, and experiences
channels, communications, offerings, and day-to-day
interactions
Limits any insights into the customer behaviors; CSAT Metrics too generic to link the score to actions (it is Measurements only focuses on service and
metrics can be difficult to drive measures than
Limitations organization can understand and adopt, both
recommended to ask additional open question(s) interactional areas; doesn’t assess the core reasons
conceptually and statistically around value, quality, useability, etc.) why customers have service issues
On a scale of 0-10, how likely would you be to

How would your rate your experience with your.. (e.g. recommend [the organization / product] to a friend or The organization made it easy for me to handle my
Methodology call centre query, service request, utility, etc.) issue
colleague?
Billing & payment

General / relationship survey Relationship NPS (rNPS) (ease of understanding bill, payment effort)
Communications
(ease of understanding communications and information)
Additional Channels
measurement Product / service survey Product/Service NPS (pNPS)
(effort of channel service, ease of use)
types Offerings
(Ease of program enrollment and usage)
Post-transaction survey Transactional NPS (tNPS) Service requests
(Ease of booking appointment, technician satisfaction)
215
1 2 3 4 5
6 7 8 9 10
NPS is being used by most major companies
NPS is an industry standard
65% of the top 200 global companies use NPS

It is an efficient method with a high response rate for assessing customer
experience and sentiment
NPS can be determined for any level of the customer journey
A brief history
The NPS score and system was a by-product of a Harvard Business Review
article written in 2003 by Fred Reichheld
Two years of research and testing were involved in determining this
particular survey method
The goal of the project was to create an easy to answer question with
immediately identifiable and actionable applications
What areNotes
the primary set of KPIs that we will use to measure success of the Customer Services business?
1. Percentage of companies using NPS: http://info.satmetrix.com/hubfs/eBooks/Satmetrix-ebook-ROI-of-CEM-091516.pdf?t=1481564196081
216
1 2 3 4 5
6 7 8 9 10
Yet, despite its ubiquity, NPS still struggles to drive change
NPS Objectives
The majority of global companies have • Correlate performance

and NPS evolution
launched NPS
• Benchmark vs.
Compare and
support decisions competitors
However, companies struggle with how to Most companies
• Define priority areas for are doing this well
use NPS programs to effectively drive strategy
change
• Practically enact NPS learnings
Over time NPS inevitably loses momentum • Close the loop with customers
and its potential actionable insights fall by Drive effective • Track changes overtime
the wayside or are never implemented in change
• Create a culture where CX is
Most companies
are NOT doing
the first place not merely a buzz expression this well
“65% of the top 200 global companies use Net Promoter but few are doing it right”
Fred Reichheld, co-creator of Net Promoter
What areNotes
the primary set of KPIs that we will use to measure success of the Customer Services business?
1. Percentage of companies using NPS: http://info.satmetrix.com/hubfs/eBooks/Satmetrix-ebook-ROI-of-CEM-091516.pdf?t=1481564196081
217
1 2 3 4 5 Customer Effort Score outperforms NPS in terms of predicting

6 7 8 9 10
customer behavior…
Customer Effort Score as better predictor of customer behavior:

Customer satisfaction vs. NPS vs.
High Customer Effort Score
Of customers who reported low effort, 94% expressed an intention to
repurchase, and 88% said they would increase their spending. Only 1%
CES
said they would speak negatively about the company
Predictive power for

NPS
repurchasing
Conversely, 81% with high effort reported an intention to spread
negative word of mouth
The Customer Effort
The superior performance of CES in a service environment is said to Score (CES) is said to
derive from: outperform NPS and
CSAT measures in
CSAT predicting behavior
1. Ability to capture customer impressions at the transactional level
(as opposed to NPS, which captures more-holistic impressions of a
company)
Low High
2. Ability to capture negative experiences as well as positive ones Predictive power for
increased spending
Source: HBR (2010) ‘Stop Trying to Delight Your Customers’
218
1 2 3 4 5 …and outperforms Customer Satisfaction by identifying

6 7 8 9 10
underlying negative experiences
Utilities lag other sectors for customer effort… …CES also highlights opportunities that CSAT A customer may be ‘satisfied’,
would not identify as their problem was solved,
but the effort to get there
may have been significant
8.76
8.50
8.25 8.22
uired
8.20
req 7.83 8.00 7.94
t
er effor 7.57
7.23 7.25
m
Custo 6.54 6.64
6.25 6.33
6.00
5.50 5.60 5.47 5.36
5.22
CSAT / CES score

5.00
4.67 Introduction Executive Summary Vision & alignment High-level design Operational improvement CS Transformation KPIs People & culture Next Steps Appendix
Customer Effort Score
Distribution
Utilities
Hotel & leisure
Grocery stores
Banking
Retail
Airlines
Restaurants
Online retail
Telco
Insurance
Ease of Repairs / Customer Making Meter Other

contact emergency service contact problems
work by phone
CSAT CES
Source: TTI Global (2018), UK CSAT benchmark survey
219
1 2 3 4 5 Across employees, what are the primary set of KPIs we will use
6 7 8 9 10
to measure performance?
Illustrative view: Employee Net Promoter Score Employee Engagement Index Employee Attrition Rate Employee Safety / Incident Rate
employee KPIs
Measures employee willingness to Measures overall connection and Measures employees voluntarily Assess employee safety and health by
Usability recommend ENTITY as a place to work enthusiasm of employees vacating their position at ENTITY tracking reportable incident rates
Reason for attrition not always clear or Lagging safety indicators may not
A single data point that only captures Difficult to define, consistently an indication of underlying issues
Limitations one factor of employee advocacy measure, or draw actionable insights (market driven, process driven, stress highlight additional weaknesses of
particular safety program
driven)
On a scale of 0-10, how likely would you Employee engagement indexes vary by
Number of employees who left during a Safety index / incident can vary by
be to recommend [the organization / organization, but typically a single score given period / average number of
Methodology product] to a friend or colleague? is derived from a handful of employee
organization, but typically a weighted
survey questions employees during period combination of incident types
Satisfaction
External attrition Recordable OSHA Incidents
(Employee vacates ENTITY)
Additional Commitment / Loyalty
measurement
N/A Days Away From Work
types
Advocacy/referral
Internal Attrition
(Employee vacates organization) Controllable Motor Vehicle
Pride Incidents
220
1 2 3 4 5To assess value across the organization and customers, what are
6 7 8 9 10
the primary set of KPIs we will use to measure performance?
Illustrative view:
value KPIs Customer Life-time Value Cost Per Contact Offerings Per Customer Field Service Efficiency
Supports optimization of customer Assess field service workload and

Primary indicator of efficiency across Measures customer engagement,
Usability service, marketing, and offering contact channel adoption, and propensity of offerings productivity for both customer / non-
development customer jobs
Difficult to apply in traditional regulated

Many drivers and variations of cost per Primarily used to track internal Focused solely on efficiency (value) to
utility, overlooks influencing market
Limitations factors outside of utility transaction
contact make it difficult to derive improvement over time vs baselining business rather than impact, or
data insightful actions against industry assessment of the CX
Varies by organization, but typically KPIs vary by organization, but typically

Sum of all costs to operate contact Number of active offerings / average
Methodology includes expected future value based
channel / Sum of all contacts handled number of customers
include measurement types listed
on tenure and margin contribution below
Cost per channel Jobs on time

Cost to serve
Additional First time fix rate
measurement Cost per service job N/A
types Jobs per technician
Customer economic value
Cost per contact type
Route efficiency rate
221
1 2 3 4 5 To assess organizational agility, what are the primary set of

6 7 8 9 10
KPIs we will use?
Illustrative view:
agility KPIs Training Proficiency Days Elapsed to Deliver… Continuous Improvement Impact initiatives
Assess advisor and field service technician proficiency

Provides an indicator of organization speed to market Assess effectiveness and timeliness of any project
Usability level to support meeting evolving customer
across different parts of the organization derived from a ‘continuous improvement’ initiative
expectations
Requires ongoing investment and assessment of Difficult to track and maintain, focuses solely on Difficult to track and maintain, measures only one
Limitations employee proficiency post training / hiring speed and not value, benefit realization, or ROI type of improvement initiative
Varies by measurement type, but can be expressed as

Can be expressed as percent of new hires at a certain Number of days between task (project) initiation and
Methodology level of proficiency within 90 days completion
% implemented, % completed on time (hours or $)
and the benefits ($) realized from total initiatives
New tarrif / rate Initiatives Implemented

Advisory (ESS) proficiency
Additional New offering
measurement Projects completed on time
types New communication
Field service technician proficiency
New training Initiative Realization / benefit
222
1 2 3 4 5 Across customers, what are the primary set of KPIs we will

6 7 8 9 10
use to measure performance?
Across customers, what are the primary set of KPIs we will use to measure performance? Customers
What are the major KPIs we will use to measure our

performance with our customers?
Customer Satisfaction Score (CSAT) 0 (0%)
Employees
How will we measure how well we engage, serve and

/ or retain our employees?
Net Promoter Score (NPS) 0 (0%)

Value
How will we track the commercial performance of

the customer services business?
Customer Effort Score (CES) 5 (100%)

Agility
How will we measure our agility and speed to

deliver for our customers?
Workshop Output
223
1 2 3 4 5 Across employees, what are the primary set of KPIs we will

6 7 8 9 10
use to measure performance?
Across employees , what are the primary set of KPIs we will use to measure performance? Customers

Employee Nett Promoter Score 0 (0%)
Employees

Employee Engagement Index 4 (80%) / or retain our employees?
Value
Employee Attrition Rate 1 (20%) How will we track the commercial performance of
Agility
Employee Safety / Incident Rate 0 (0%)
Workshop Output
224
1 2 3 4 5To assess value across the organization and customers, what are
6 7 8 9 10
the primary set of KPIs we will use to measure performance?
To assess value across the organization and customers , what are the primary set of Customers
KPIs we will use to measure performance?

Customer Lifetime Value 0 (0%)
Employees

Cost Per Contact 3 (60%) / or retain our employees?
Value
Offerings Per Customer 2 (40%) How will we track the commercial performance of
Agility
Field Service Efficiency 0 (0%)
Workshop Output
225
1 2 3 4 5 To assess organizational agility, what are the primary set of

6 7 8 9 10
KPIs we will use?
To assess organizational agility, what are the primary set of KPIs we will use? Customers

Training Proficiency 0 (0%)

Employees

/ or retain our employees?
Days Elapsed to Deliver… 4 (80%) Value
How will we track the commercial performance of

Continuous Improvement Impact Initiatives 1 (20%) Agility

Workshop Output
226
2. What are our priority channels to invest in to create
an effortless customer experience?
1 2 3 4 5 Customers prefer convenient, effortless digital channels, but

6 7 8 9 10
utilities have generally lagged other industries
Utilities have lagged other industries when it comes to channel performance, particularly with digital channels. Convenience-driven
digital channels receive the highest JD power scores, though there are untapped channels that utilities should take advantage of
Channel satisfaction for utility customers – JD Power Customer preferred channels
Chat JD Power research has found that effective digital channels that enhance
the customer relationship are lacking for the industry
Email Experience and product scored higher; but to truly embed a digital
experience the utility must look beyond just website functionality.
Phone - IVR Increasingly preferred channels:
Text Video explanation Voice interfaces

communications
Website
Phone - CSR
770 780 790 800 810 820 830
Satisfaction score
Source: ENTITY Power Residential Electric, EY Analysis
What are our priority channels to invest in to create an effortless customer experience?
228
1 2 3 4 5
6 7 8 9 10
11 primary channels support Customer Services today
Channel (Each icon represents ~100K contacts) Contacts* Primary usage Est Transaction $ Existing breakdown of customer transactions
through existing channels 2015 – 2018 YTD
Direct Mail <9M Billing $0.35 - $0.45
Contact Center Web & mobile
Contact Billing / credit / bill inquiry, Chat
Center 1.54M start/stop/moves, emergency reports $4.84 (actual) IVR E-mail
Payments, bill inquiry, outages, 100%
Web energy usage <$0.10
1.43M 90%
Payments, account management,
Mobile <$0.10 80% 40% 36%
start/stop/moves 45% 42%
Billing / credit / bill inquiry, outages 70%
IVR 839K inquires $0.30 - $1.00
60%
ENTITY Payments, service orders, offer 19%
607K $2.17 (actual) 50% 21%
Branch Offices enrollment
22% 23%
40%
Third-party
locations 369K Payments / billing N/A
30%
36% 43%
General customer support , outage 20% 31% 32%
E-Mail 68K notifications $1.70- $5.80
10% 2% 2% 2% 1%
0% 0% 1% 1%
Live-chat 30K General customer support $1.40 - $5.60 0%
2015 2016 2017 2018 YTD
Call / chat / email: Billing, credit, ASO, emergency, high bill, start / stop / moves,
Social Media <1K General customer support $1.70- $5.80 outages, solar / EV, general, other
IVR: Billing, credit, ASO, start / stop / move, outage, general, other
SMS notification volume TBC, ~60K customer Web & mobile: Account management, credit, ASO, goals & alerts, outage start / stop /
enrolled today SMS N/A Outage notifications <$.02 move, outage, paperless registration, rate management letter credit residency
Note: transaction types exclude payments
*2017 transaction volume, billing/payment excluded unless channel’s primary service
What are our priority channels to invest in to create an effortless customer experience? Source: Contact Babel, Forrester Research, Javelin Research, ENTITY KPI Report
229
1 2 3 4 5 You have five coins to invest: What are our priority channels to
6 7 8 9 10
invest in to create an effortless customer experience?
Contact Center 3 (10%)

Direct Mail
Physical / analog channels offered today IVR
(10%)
ENTITY
Third-party Locations
Web 2 (7%)
Mobile App 6 (20%)
SMS 5 (17%)
Digital channels offered today
(54%) Social Media 1 (3%)
Live Chat 2 (7%)
E-mail
Chatbots 4 (13%)
Voice 5 (17%)
Emerging channels (i.e. not offered today)
(36%) Wearables 1 (3%)
AR/VR 1 (3%)
Workshop Output
230
1 2 3 4 5 What are our priority channels to invest in to create

6 7 8 9 10
an effortless customer experience?
Physical Digital
Options:
Optimize usage of existing physical channels Optimize usage of existing digital channels
Contact Center ENTITY Branch Web SMS Live chat

Offices
Mobile App Social
Third-party media E-mail
Direct Mail
locations
Emerging channels
IVR
Assessment Criteria Chatbots Voice Wearables AR/VR
Customer needs are increasingly shifting toward more digital, mobile Expands ease of access for customers wishing for more convenient,
Simple experience digital channels
channels
Controllable by Customer Services Driven by CS organization, but dependencies outside organization Driven by CS organization, but some dependencies with IT
Digital first Directly limits use of digital channels Prioritizes use of digital channels
Dependent by channel, but typically non-digital channels require

Organizational efficiency Increased support and resources needed
Opportunity to optimize interactions across more efficient channels
More robust digital channel capabilities to market additional services

Wider service offerings No major impact
and offerings
Physical channels as the priority limit alignment to current and developing Digital channels offer improved customer experience, higher efficiency, and more
customer expectations, hinder digital adoption, and potentially reduce efficiency opportunity to connect with the customer.
Alignment to vision: No impact Stronger alignment Moderate alignment Weaker alignment
231
3. What are the highest impact areas we should prioritize when
trying to reduce customer effort?
1 2 3 4 5 Based on market research and analysis, six priority areas have

6 7 8 9 10
been identified as Customer Service satisfaction attributes
Selecting customer satisfaction attributes
Categorization of satisfaction
that are controllable by Customer Services
attributes to identifiable impact areas
(e.g. excluding outages, price/cost)
3rd and 4th Quartile ENTITY 3rd and 4th Quartile ENTITY Electric Satisfaction Attributes:
Illustrative priority areas
Electric Satisfaction Attributes Controllable by Customer Services
3rd quartile attributes
Ease of paying your bill 8.0
Appearance of the website 8.0
Clarity of the information provided 7.9 Ease of Navigation
Ease of navigating website 7.9
Timeliness of problem resolution 7.9
Knowledge of representative 7.8
Billing & Payment
Amount of time given to pay bill 7.6
Usefulness of energy reduction tips 6.8
Outage information 6.7
Efforts to communicate changes 6.6 Managing Energy Usage
Variety of EE programs offered 6.6
Creating communication that gets attention 6.2
Outage information
4th quartile attributes
Usefulness of information on bill 7.6
Variety of methods to pay bill 7.5 ESS Service
Representative’s concern for needs 7.4
Promptness in speaking to a person 7.2
Not controllable by Customer Services Communicating how to be safe around electricity 6.7 Communication Effectiveness
Ease of understanding pricing 6.6
Controllable by Customers Services Efforts of utility to help manage usage 6.4
Keep you informed about keeping costs low 6.2
Customer Satisfaction Score, ENTITY
Power
Source: ENTITY Power Residential Electric, EY Analysis
What are the highest impact areas we should prioritize when trying to reduce customer effort?
233
1 2 3 4 5 Existing data highlights opportunity areas for reducing

6 7 8 9 10
customer effort across ENTITY channels
ENTITY Customer Effort by Channel
% transactions that required substantial effort*
% transactions that required substantial effort*
q uired 34%
Y c u stom er effort re 32%
ENT IT
26%
24%
21%
9%
Branch Office My Account (Commercial) IVR Self Service Contact Center IVR My Account (Residential)
*YTD 2018, as defined by Kantar Research
234
Customer delights and opportunity areas across the ENTITY

customer lifecycle
Start Service Billing and Payment Manage Usage Manage Outage Manage Initiated Work Day-to-day awareness
Contact ENTITY Bill inquiry (view & View energy usage and Communication reminder Schedule or Personalized communication
request service
Customer Interaction
receive bill) understand tools of outage options and offers

Request order available
status Request bill Outage inquiry Provide feedback Community events/
correction (status, restoration) partnerships
Initiate or Learn about and Planned outage
sign-up for Informed by ENTITY of
transfer service Understand billing and information work to be done
payment options offerings Make account changes
Enroll in pricing plans Media communication and manage account
and offerings Enroll in usage Report gas leak / request
Make bill payment alerts and around outages
emergency support
Provide account notifications Reporting an Mass communications
outage Check status of
information
Sign-up for pricing plan or service
Make payment assistance programs
Credit check arrangements and Outage notification
Request to reschedule Customer
and deposit extensions communication
work/visit feedback
500K Payment’s received by channel (%) 320K+ annual self-service Outage enrollments by channel 255K annual customer ~17M emails sent across
Estimated start/stop/move Mail transactions related to managing and company initiative ENTITY in 2017, 65% (11M)
Key stats
568K active SMS 8% Voice

requests annually based on 15M+ 21% energy goals & alerts (web/mobile) 12% service orders related to marketing
transaction volume accounts
annual 6% subscribed
~30% In-person 52% of residential electric ~80% of service orders on
payments to outage
Estimated percent of “digital” 74% customers are familiar with all-day 8-hour 70% of emails opened are
received alerts 80% Email
start/stop/move transactions Self-service ENTITY’s EE programs appointment windows read for more than 10 seconds
• Courtesy of the customer service • Payment arrangement options and • Energy efficiency programs that • Overall PQ&R and occurrence of • Interaction with service technician • Engaging content through email
representative flexibility help reduce energy usage interruptions and first fix rate (low unsubscribe rates, length of
Delights
• Variety of channels offered • Automatic enrollment of outage reading)

• First call resolution alerts and notifications
• Promptness in speaking to a person • Usefulness of information on bill • Ease of understanding pricing and • Outage information (promptness, • Appointment windows offered • Keeping you informed about keeping
Opportunities
• Navigating IVR, website • Payment methods (variety and offerings estimated time of restoration) costs low
• Representatives concern for needs ease) • Variety of programs offered • Communicating how to be safe
• Efforts of utility to help manage around electricity
energy usage • Navigating IVR, website
• Timeliness of problem resolution
What are the highest impact areas we should prioritize when trying to reduce customer effort? Source: ENTITY Power, Kantar Research, EY
Analysis
235
4. How can we encourage customers to interact via our priority
channels?
1 2 3 4 5 Across industries, companies are influencing customer channel

6 7 8 9 10
behavior in a variety of ways
Optional: Incentivize: Mandatory:
provide the customer with more than one choice offer incentives to alter customer behavior require the customer to behave a certain way
Banking customers are encouraged Outside of warranty, ENTITY Lyft only provides online-based
to use the most appropriate channel encourages users to use a self-service support for customers who wish to
for their support topic portal in lieu of paying for telephone contact the ride-sharing company
Customer technical support
inquiries
& support ENTITY first prioritizes a
Customers wishing to pay over the
ENTITY customers are phone are re-directed to third-party
virtual assistant, Julia, to
presented with any and all service to make payment
handle all online customer
channel options for support
inquiries
Wireless carrier customers can ENTITY offers, sales and ENTITY requires all customers to opt
sign-up for new plans, purchase discounts through Alexa (voice) for an electronic bill – no paper bill is
Offerings, devices, enroll in new programs channel only mailed or sent
across all channels
programs,
products
& services Customers wishing to purchase a Customers can opt-in for mobile
home warranty program can either ENTITY places customers in a
outage alerts only through their online
do so online or call an agent to periodic drawing for gift cards if
account portal
receive more information they are enrolled in e-bill
How can we encourage customers to interact via our priority channels?
237
1 2 3 4 5 How can we encourage customers to interact via our priority

6 7 8 9 10
channels?
We can ‘nudge’ customers to interact with ENTITY in ways that are most conducive to them having an easy experience using three main methods…
Optional: Incentivize: Mandatory:

provide the customer with more than one choice offer incentives to alter customer behavior require the customer to behave a certain way
Across the customers’ experience with ENTITY the tactic that we deploy will differ depending on how critical each interaction is to our ability to provide
customers with the easiest energy experience…
Start service Billing & Payment Offerings Move Credit & Collections
Collection of validated email Incentivize those who aren’t Auto enrollment into core Mandatory enrollment in Mandatory enrollment in
and cell phone data. Opt-out enrolled in e-billing, my offerings that are universally notifications and reminders notifications and programs
enrollment in core services account and autopay to do applicable / valuable. Option that drive customer move that drive collections activity
Example opportunities and features to drive so by passing through Cost- enrollment driven through notifications and minimize
adoption and minimize to-serve reduction in the marketing for specific bad debt risk
customer effort. form of incentives. programs.
How can we encourage customers to interact via our priority channels?
238
5. What appointment window should we offer for field service visits?
1 2 3 4 5 Approximately 80% of field service jobs today are scheduled as

6 7 8 9 10
‘all-day’ appointment windows
Customer Services Field Services by Job Type Customer Services Field Services by Appointment Window
Gas & Electric, 2017 Gas and Electric, 24 Rolling Months (2016 – 2018 YTD)
All Day
Over one third of all field
service requests are related to 255K AM
48K
fumigations and turn on / turn PM
off of services Total jobs in 2017 1-hour early AM
77% 80% 81%
39K
37K 37K 36K Despite the introduction
of 1-hour appointment
30K windows, percent of all-
day appointment
13% 11% 11% windows has increased
10% 8% 8%
16K
2016 2017 2018 YTD
12K
92% of field service

90% of field
requests are customer
service requests
90% are exclusively 92% initiated compared to 8%
Fumigation Turn Gas Other Meter Appliance Safety Outage / of requests that ENTITY
on / off Emergency Check check no service Gas job types
initiates
/ leak
Job type categorization based on EY analysis of 600+ job code type descriptions
Note: rolling 24 months of data represented, as a result, 2016 and 2018 are not based on full 12-months of data
What appointment window should we offer for field service visits?
240
1 2 3 4 5 Field and service jobs remain an important customer

6 7 8 9 10
experience touchpoint both inside and outside the industry
...although companies outside the industry are continuing to enhance the customer experience
Utilities have started to invest in field service experience… through live tracking, shorter appointment windows, and automatic service credits
Connecticut Natural Gas offers appointment

windows as short as 2 hours for non-emergency
services. It also offers after-hour appointment
windows and Saturday scheduling
ENTITY’s ‘Customer Service Guarantee’ credits

customers $50 if the utility fails to honor an
appointment window. The utility also offers a
24-hour power outage restoration guarantee,
barring any major storms Appointment windows as short as 30 minutes
Automatic service credit offered for missed appointments
ENTITY’s convenient online scheduling system

lets customers pick an appointment window Live technician tracking with up-to-date time of arrivals
based on their service request all without
needed an existing account
Convenient online / mobile booking and scheduling
241
1 2 3 4 5 Leaders are increasingly differentiating the experience through

6 7 8 9 10
more convenient booking windows and emerging channels
All day 4-hour (AM/PM) 2-hour 1-hour
Dedicated mobile app for developers Appointment times as short as 15 minutes Uses A.I and natural language processing
and builders to schedule appointments with updates via channel of choice technologies to facilitate appointment bookings for
and track status of requests customers
Example
Companies
• Single channel (e.g. in person) bookings • Multi-channel booking and management functionality • Book appointments directly through new emerging channels (e.g
• Broad appointment windows • Shorter, more convenient appointment windows chatbots, voice)
• No reminders for appointment slots or • Online account to check appointment time slot and • Service credits for missed appointments
appointment tracking functionality amend/cancel appointment slots • Live tracking of appointment progress online/via mobile channels
• Limited ability to cancel/amend appointments • Active customer contact ahead of the appointment to gain • Ability to amend/cancel appointment up to 1 hour before
• Booking functionality often manual and not greater certainty around timing and access appointment
integrated with workforce management systems • Part-integrated solution with workforce management solution • Fully integrated solution with workforce management system
Characteristics
Live- Courtesy Live- Courtesy Live- Courtesy
tracking credits tracking credits tracking credits
Convenient Convenient Convenient Convenient Convenient Convenient

windows scheduling windows scheduling windows scheduling
242
1 2 3 4 5 When providing touchpoints with customers, what type of

6 7 8 9 10
appointment windows should we offer?
Options: A 4-hour window (AM, PM) B 2-hour window C 1-hour window (priority jobs) D 1-hour window
Only offer 4-hour appointment Only offer 2-hour appointment Continue to offer all-day and AM/PM Only offer 1-hour appointment
windows, eliminating the all-day windows, eliminating the all-day appointment windows, but expand 1- windows, eliminating the all-day
window and 4-hour AM/PM options hour windows for priority jobs and 4-hour AM/PM options
All-day 2-hour 1-hour All-day 2-hour 1-hour All-day 2-hour 1-hour All-day 2-hour 1-hour
AM PM AM PM AM PM AM PM
Considerations Considerations Considerations Considerations

• Impacts to existing workforce and • Impacts to existing workforce and • Impacts to existing workforce and • Impacts to existing workforce and
technician resources technician resources technician resources technician resources
• Company initiated work may still • Company initiated work may still • Identifying job types that are most • Company initiated work may still
Assessment Criteria require all-day windows require all-day windows critical to receiving 1 hour service require all-day windows
4-hour appointment windows Supports a simple, convenient Supports a simple, convenient Supports a simple, convenient
Simple experience still lag cross industry leaders customer experience customer experience customer experience
Similar appointment windows Some dependency with IT Some dependency with IT on Similar appointment windows
Controllable by CS
offered today with new 2-hour window prioritization of jobs offered today
Digital first No major impact if focus is No major impact if focus is No major impact if focus is No major impact if focus is
solely on window time solely on window time solely on window time solely on window time
Exact impact on field Exact impact on field Exact impact on field Increases field workload and
Organizational efficiency workload and resources TBD workload and resources TBD workload and resources TBD need for resources
Keeps existing 4-hr Introduces shorter 2-hour Expands 1-hour appointment Expands 1-hour appointment
Wider service offerings
appointment windows appointment window window to more customers window to all customers
4-hour appointment window would Makes ENTITY an industry leader, may Lessens strain on field resources while Makes ENTITY a cross industry leader,
brings ENTITY closer to industry impact resource needs expanding 1-hour appointments but severely impacts field resources
243
6. How will we use different customer profiles across the
business?
1 2 3 4 5 Across the business, there are a handful of practical applications

6 7 8 9 10
of applying customer profiles
Organizational Design Customer Service Offerings Performance measurement

How do our customer groups shape the How do we offer service to different How do customer groups drive our How do we measure performance across
way we are structured? customer groups? offerings? customer groups?
• Shapes design and structure of • Optimizes level of service across channels • Strengthens alignment between offering • Highlights operational improvements /
organization and customers value proposition and customer needs pain points and actionable insights for
• Supports accountability of groups and • Drives marketing effectiveness (e.g. specific customer groups
teams for specific customer groups communications, adoption)
Industry and cross-industry examples
Organization is structured around two Dedicated mobile app for builders and Propensity modeling based on demographics Assess customer sentiment and service
primary groups: homeowners and tenants developers, a vocal, high-value group within drive marketing of home warranties and performance based on high-level groupings
along with sub-customer groupings the utility’s service territory other offerings including customer type and operating co
Customer grouping based on product shape Dedicated service channels and queues for Over the top streaming TV service introduced Customer sentiment / performance metrics
the organizational structure high-value, frequent travel customers to support younger demographic preferences tracking through variety of groupings
How will we use different customer profiles across the business?
245
1 2 3 4 5 There are a variety of ways to further develop an

6 7 8 9 10
understanding of ENTITY customers
Understanding of customer group Application / sample customer groupings
Higher
We understand what value we have created for customer
and know what our customers will want in the future
Underlying drivers that guide the aforementioned behaviors Attitudinal
e.g. need for control, need for time How do our Time- Cost-
Control
customers value saving saving
ENTITY?
Understanding of customer
We understand the value that customer has contributed

to us and how to manage future value extraction
Commercial value that they represent to the company
e.g. Lifetime value Value
Lifetime Cost to
How do we recognize their value? Revenue
Value service
We understand what information, services and offerings

our customers have inquired about or adopted
The way that they interact with our organization
e.g. Program holdings, contact channel Behavioral Program
How do they interact with us? Digital Analog
propensity
We understand the demographic profile of our customers

and are able to adapt our services based on emerging trends
Reported demographic attributes Demographic Property
e.g. Homeowner / renter, Gas / electric Who are our customers? Ownership
Geography Income
Lower
246
1 2 3 4 5 How will we use different customer profiles across the

6 7 8 9 10
business?
Organizational Design Customer Service Offerings Performance Measurement
How do our customer groups shape How do we offer service to different How do customer groups drive our How do we measure performance
the way we are structured? customer groups? offerings? across customer groups?
Options:
Customer profiles Customer profiles Customer profiles Customer profiles
1 2 3 4
A Demographic Demographic Demographic Demographic
B Behavioral Behavioral Behavioral Behavioral
C Value Value Value Value
D Attitudinal Attitudinal Attitudinal Attitudinal
247
7. How will we serve CCA customers?
1 2 3 4 5 Today, the CCA value proposition offers customers a more local,

6 7 8 9 10
potentially cheaper and greener alternative that is attractive
CCA value proposition today CCA value proposition tomorrow?
The CCA proposition, as it is framed today, offers customers The value proposition could be strengthened by CCAs in the
three main benefits that could attract them in the short term future if they expand their role in the ENTITY market further
As CCAs continue to focus on local and distributed

Many CCAs aim to provide higher quantities of renewables Reliability generation, they reduce reliance on long distance
Cleaner in their energy mix, resulting in a greater reduction in transmission lines, increasing network resilience
greenhouse gas emissions
Rising cost of transmission revenue requirements and
Cost potential changes to the calculation of delivery fees
could increase incentives for more local generation
CCAs are able to provide green electricity more cheaply to
Affordable customers due to recently renegotiated contracts and less
need to deliver a rate of return CCAs are more motivated to offer higher incentives for
Incentives local distributed resources, as is even seen today
through the different pricing options
CCAs oversee localities and are governed by elected local Not restricted by pricing regulations in the same way as
Local officials, making them quicker to respond to local needs and Innovation IOUs are, innovative CCAs could develop pricing
able to reinvest in local talent and job creation mechanisms that are more intuitive for consumers
How will we serve CCA customers?
249
1 2 3 4 5 By 2021, over a third of ENTITY’s customers could receive their

6 7 8 9 10
power through the city of ENTITY CCA
ENTITY CCA Accounts: Total Accounts, Size of CCA Programs by Customer Accounts: California
Residential, Commercial & Industrial Existing and Future CCAs
1.58M 1.62M
1.41M 1.44M Apple Valley 27K
~500K Clean Power SF 75K
Lancaster Choice 55K

Estimated CCA
accounts by 2021 Redwood Coast 60K
% CCA Sonoma Clean Power 230K
34% Silicon Valley Clean Energy 240K

30% 0.17M 0.18M
1% 58% MCE Clean Energy 255K
Today 2021 Today 2021 Today 2021 Los Angeles Community Choice 310K
Total accounts Residential Commercial & Industrial
ENTITY indicates two-thirds of ENTITY customers are open to other power Peninsula Clean Energy 300K
providers, higher than the average for other utilities in the west. San Jose Clean Energy 300K
One CCA, ENTITY, is currently operating within ENTITY service territory. It began
offering services in June 2018. City of San Diego 500K+
NOTE: CCA % today includes direct access customers; forecast based on customer count published in CCA feasibility study;
Los Angeles Community Choice and San Jose Clean energy still in planning phases
% mix based on forecasted accounts in 2021
Source: ENTITY Customer Analytics, 2017 City of ENTITY CCA Feasibility Study, Market Strategies, EY Analysis
250
1 2 3 4 5
6 7 8 9 10
Organizational Design Customer Service Offerings Performance Measurement

How will CCAs impact the way our How will we provide customer How will we market offerings to CCA How will we measure performance
organization is designed? service to CCA customers? customers? among CCA customers?
Options:
1 2 3 4
Organization is aligned around Dedicated channel for CCA There is a dedicated KPI /
customers, with specially Strong cross-sell and up-sell metrics for measuring
CCAs, with a dedicated group
AA internally to support the CCA
trained customer service strategies around CCA customer experience and
representatives to handle customers performance for CCA
customer experience
customer inquires customers
Focus on Small team dedicated to Specially trained customer Limited marketing and
CCA customers are grouped
CCA together with other
BB supporting the CCA customer service representatives to promotion of offerings to CCA
customers when considering
experience handle CCA customer inquires customers performance measurement
CCAs are just another customer CCA customers will be serviced Limited strategy around
attribute, no sole team or in-line with existing customer offerings for CCA customers; CCA customers are excluded
CC group focused on customer groups (e.g. business vs CCA customers may not be
from any customer
group residential) eligible for all offerings performance measurements
251
1 2 3 4 5
6 7 8 9 10
Organizational Design
How will CCAs impact the way our
organization is designed?
Options:
1
Organization is aligned around

CCAs, with a dedicated group A 0 (0%)
AA internally to support the CCA
customer experience
Focus on Small team dedicated to

CCA BB supporting the CCA customer B 1 (25%)
experience
CCAs are just another

customer attribute, no sole
CC team or group focused on C 3 (75%)
customer group
Workshop Output
252
1 2 3 4 5
6 7 8 9 10
Customer Service
Workshop Output
How will we provide customer
service to CCA customers?
Options:
2
Dedicated channel for CCA

customers, with specially A 0 (0%)
AA trained customer service
representatives to handle
customer inquires
Focus on Specially trained customer

Decision not reached in workshop
CCA BB service representatives to B 0 (0%)
handle CCA customer inquires
CCA customers will be

serviced in-line with existing
CC customer groups (e.g. C 0 (0%)
business vs residential)
253
1 2 3 4 5
6 7 8 9 10
Offerings
Workshop Output
How will we market offerings to CCA
customers?
Options:
3
Strong cross-sell and up-sell A 0 (0%)

AA strategies around CCA
customers
Focus on Limited marketing and

Decision not reached in workshop
CCA BB promotion of offerings to CCA B 0 (0%)
customers
Limited strategy around

offerings for CCA customers;
CC CCA customers may not be C 0 (0%)
eligible for all offerings
254
1 2 3 4 5
6 7 8 9 10
Performance Measurement
Workshop Output
How will we measure performance
among CCA customers?
Options:
4
There is a dedicated KPI /

metrics for measuring A 0 (0%)
AA customer experience and
performance for CCA
customers
Focus on CCA customers are grouped Decision not reached in workshop

CCA together with other B 0 (0%)
BB customers when considering
performance measurement
CCA customers are excluded

CC from any customer C 0 (0%)
performance measurements
255
8. How will we bill CCA customers?
1 2 3 4 5 Different utilities have taken similar approaches to handling

6 7 8 9 10
CCA customers and billing
Customer Existing ENTITY CCA bill format lists delivery and generation charges
Utility Aggregator Overview Customers Billing structure automatically Exit fee? separately
opted in?
Customer receive
Cape Light, the
nation’s first CCA single bill from the
utility with separate
started in 1997, 200K charges for delivery No No
serves over 21
cities today and electricity
generation
Customer receive
There are more single bill from the
than 12
aggregators in 380K utility with separate Yes Yes
charges for delivery
PG&E’s service
territory and electricity
generation
Total ENTITY delivery charges
for electricity
Largest community Customer receive

single bill from the
aggregator in the
United States with 800K utility with separate Yes No
charges for delivery
over 220+ and electricity
communities
generation
Total electricity generation
charges from CCA
Source: EY Analysis
How will we bill CCA customers?
257
1 2 3 4 5 New ‘digital utility’ startups serve as a platform for customers

6 7 8 9 10
to manage their energy billing needs
ENTITY is one example of new ‘digital utility’ platforms
Utility bills ENTITY directly for ENTITY sends an updated statement to

monthly charges customer
 ENTITY also helps customers reduce their carbon
footprint by (1) offering ‘remote’ solar projects
and (2) offering renewable energy credits. It also
helps customers (3) save money through a ‘price
alerts’ feature that finds the lowest energy rate
 Customers can pay with any payment with no

payment fees
 Customers can request an extension, through

ENTITY, if needed
ENTITY pays utility bill Customers automatically pay ENTITY, as all

customers are enrolled in auto-pay
ENTITY generates revenue through three primary ways:

• If the customer finds a cheaper energy rate through ‘price alerts,’ ENTITY earns a percentage of those savings
• If the customer purchases Renewable Energy Credits, ENTITY charges a fee for that sale
• If the customer purchases community solar panels, ENTITY earns referral revenue from the solar developer
258
1 2 3 4 5 We have identified three options for handling electric bill

6 7 8 9 10 delivery for CCA customers
Completely separate bills Collated bill, separated by branding Unified, single billing
Customer receives separate bills from ENTITY and CCA. Charges are broken Customer receive one single bill delivered by ENTITY on two separate Customers receive a single, combined and consolidated energy
out by electric (delivery by ENTITY) and ESP (generation by the CCA). bill pages. Each bill is distinguished by ENTITY or City of ENTITY bill from ENTITY that has breakdown of both electric charges
branding. and ESP (generation) charges
259
1 2 3 4 5
6 7 8 9 10
Workshop Output
Completely separate bills

A Customer receives separate bills from ENTITY and
CCA. Charges are broken out by electric (delivery
A 1 (50%)
by ENTITY) and ESP (generation by the CCA).
Collated bill, separated by branding

Customer receive one single bill delivered by B 1 (50%)
B ENTITY on two separate bill pages. Each bill is
distinguished by ENTITY or City of ENTITY branding.
Unified, single billing C 0 (0%)

Customers receive a single, combined and
C consolidated energy bill from ENTITY that has
breakdown of both electric charges and ESP
(generation) charges
260
1 2 3 4 5
6 7 8 9 10
Options: A Completely separate bills B Collated bill, separated by branding C Unified, single billing
Customer receives separate bills from ENTITY Customer receive one single bill on two separate Customers receive a single, combined and
and CCA bill pages. Each bill is distinguished by branding consolidated energy bill from ENTITY
Considerations Considerations Considerations

• Impact of customer experience and inquiries • Process around managing and generating • Acceptance of payment for both ENTITY
(i.e. call volume) when receiving multiple bills multiple bills and delivery of those bills to delivery charges and CCA generation charges
• Regulatory implications customers • Regulatory implications
Assessment Criteria • Regulatory implications
Introduces complexity to customer Multiple bill inserts could still create Simplifies billing and payment with one
Simple experience billing and payment confusion for customer consolidated bill
Customer Services can continue to Customer Services can continue to Customer Services will need to manage
Controllable by Customer Services manage ENTITY delivery charges manage ENTITY delivery charges both ENTITY and CCA charges
Digital first No impact identified No impact identified No impact identified
Eliminates need to manage or support Requires management of additional Requires management of CCA charges
Organizational efficiency CCA bill / payment bill insert and billing / payment
Wider service offerings No impact identified No impact identified No impact identified
Most efficient approach, but will likely drive Moderate alignment to customer experience Supports simple customer experience, but
customer confusion vision and limits organizational efficiencies potential efficiency impacts to organization
261
9. How can we provide each ENTITY customer with a personal and
1 2 3 4 5 Existing perception of ENTITY’s brand and customer loyalty

6 7 8 9 10
lags peer utilities in the West
Company Reputation & Advocacy Index*: West Region Utility Brand Customer Brand / Loyalty Key Indicators: ENTITY & West Utilities
NW Natural 754
Southwest Gas 728 Lower Higher Suggested driver Potential impact
SMUD 719
Salt River Project 711 • Rates Effort to remain
Cascade Natural Gas 711 Disappointed if no longer a customer
Intermountain Gas Company 710 • Brand loyalty ENTITY
Dominion Energy - West 706 • Customer customer is very
SoCalGas 691
Portland General Electric 687 satisfaction low
Rocky Mountain Power 687
Southern California Edison 686
Idaho Power 679
Puget Sound Energy 676 Prefer utility to • Brand loyalty Increased
Tucson Electric Power 675
Xcel Energy - West 673 provide power • Customer movement to
West Average 667 satisfaction alternative sources
Pacific Power 666
NorthWestern Energy 665
NV Energy 664
New Mexico Gas Company 650
Seattle City Light 642
SDG&E 633
627
Likely to switch • Customer Accelerated
PG&E experience adoption of
APS 619
617
provider if possible • Rates CCAs
Hawaiian Electric
Los Angeles Department of Water & Power 615
Avista 612
PNM 606
Black Hills Energy - West 575
NPS • Customer Reduced
satisfaction customer appeal
ENTITY Power: Overall Index ENTITY Power: Corporate Citizenship • Brand loyalty
720
Score
714
Score
699
662 661
639 Brand Appeal • Customer Low brand
Index* satisfaction and equity
experience
Industry Avg Utility West Avg SDG&E Industry Avg Utility West Avg SDG&E
Source: Market Strategies, ENTITY Power *Index measured by Market Strategies
ENTITY Utilities West
How can we provide each ENTITY customer with a personal and positive experience with the brand?
263
1 2 3 4 5 Enhancing the customer perception of ENTITY brand through

6 7 8 9 10
customer communications and community involvement
Marketing / Communication Corporate Citizenship / PR
ENTITY Power Residential Electric Communication Score Index ENTITY Power Residential Electric Corporate Citizenship Score Index
667
661
651
639
ENTITY Communicating Usefulness of Efforts to Keep you Creating Utilities West ENTITY Corporate Involvement in Actions to take Variety of energy Efforts to develop Utilities West
Communication how to be safe suggestions on communicate informed about messages that Communication Citizenship Index local charities/civic care of the efficiency energy supply plans Corporate Citizenship
Index Score around electricity ways to reduce changes keeping costs low get attention Index Score Score organizations environment programs offered for the future Index Score
energy
Examples Examples
Social responsibility ingrained in business strategy
Strategic branding to build a household name • For each product sold, a similar product is donated, i.e. a pair of
• Consistent messaging around low prices shoes is donated for each pair sold
• Balance experience and value to avoid direct competition with other
stores
• Provide customers tools to save, i.e. launched Cartwheel app to Enrichment through sustainability
centralize coupons • Utilizes 100% natural ingredients – ability to trace source
• Purposeful partnerships with high-profile designers, such as Merona to • Published ingredients using green technology
increase customer appeal of products • Campaign to support threatened natural areas, including building
• Heavy investment in marketing to create high brand recognition bio-bridges
• Stores are powered by 100% renewable or carbon-balanced energy
Source: ENTITY Power Residential Electric

264
1 2 3 4 5 U.S. utilities have engaged in partnerships to showcase

6 7 8 9 10
customer appreciation across their service territory
U.S utilities are creating partnerships to showcase customer appreciation While European providers have more mature rewards programs and
and improve brand perception loyalty initiatives to drive customer retention
CenterPoint Energy and Houston Astros British Gas Rewards

• Sweepstakes partnership with Houston Astros that • Customers receive big discounts on family-related
provided customers with Astros tickets, a ballpark tour, events (e.g. restaurants, products/services)
store gift card, meet & great and more • Ongoing giveaways and prize drawings
ENTITY and Lowe’s Home Improvement

SENERGY COMPANY A Rewards
• ENTITY partnered with Lowe’s to provide new home
• Customers are given access (sometimes exclusive) to
owners and movers monetary vouchers / coupons to
ticket presales, customer lounges and other prizes
use at a local Lowe’s Home Improvement store
Ovo and Powershop: refer a friend

Florida Power Light and ‘Beat the Heat’
• Ovo and Powershop offer every customer who refers a
• Partnered with local businesses to create a sponsored
friend £25 ENTITY vouchers
‘family fun’ weekend that consisted of discounts,
• Ovo also offers 3-5% interest to customers whose
contests, and other family-friendly activities
accounts are in credit
265
1 2 3 4 5 How can we provide each ENTITY customer with a personal and

6 7 8 9 10
Options: A Marketing / Communication B Corporate Citizenship / PR
Focus on both personalized and mass-media forms of customer communication Continue to pursue efforts around corporate citizenship, specifically,
to develop strong customer-brand relationships. Examples include: involvement in local events and strengthen partnerships within the community/
Examples include showcasing the following throughout the community:
Communicating Usefulness of Efforts to Keep you Creating Involvement in Actions to take Variety of energy Efforts to develop
how to be safe suggestions on ways communicate informed about messages that local charities/civic care of the efficiency energy supply plans
around electricity to reduce energy changes keeping costs low get attention organizations environment programs offered for the future
Considerations Considerations
• Collateral that would needed to be developed along with medium • Specific areas of community investment and involvement that would help
(channel) of delivery strengthen the ENTITY brand
• Implications to existing marketing and communication lifecycle, including
Assessment Criteria campaign creation process and effectiveness tracking
Simple experience Exact impact on customer experience dependent on communication type No major impacts identified
Customer Services can continue to drive corporatize citizenship

Controllable by Customer Services Dependencies outside of Customer Services (e.g. marketing/comms.)
initiatives and involvement in the community
Digital first Communications can primarily be pushed through digital channels No major impacts identified
Organizational efficiency No major impacts identified No major impacts identified
Helps promote services and offerings to customers and build customer

Wider service offerings Helps promote services and offerings to customers
advocacy
Drives a positive brand experience through personalized communications that Drive corporatize citizenship and positive PR by continuing to be involved in the
could be less effective than other options local community
266
10.How will we drive empowerment and accountability for decision-
making across Customer Services?
1 2 3 4 5 How will we drive accountability for decision-making across

6 7 8 9 10
Customer Services?
ILLUSTRATIVE
In order to achieve transparency of decision-making, a clear governance forum structure must be defined:
Meeting forum Objectives of the meeting Attendees Frequency
• Informs employees about key activities, messages • Quarterly

Customer Services Town Hall and performance of Customer Services • All of Customer Services
Strategic
• Make decisions about strategic questions

• Chief Customer Officer +
Customer Services Leadership • Measures performance and overall health of
Direct Reports • Monthly
Team meeting Customer Services
• Intervenes and re-directs strategy where required
• Conducts analysis for strategic questions to take to

Customer Services • CS Operating Model team • Every two weeks
leadership
Transformation group • Owns Operating Model roadmap, monitors • CS Directors (as required)
Customer Services Managers • Manages day-to-day operations of the business • Key managers from across
• Weekly / every two weeks
Operations meeting • Tracks metrics and mitigates risks and issues with customer services
Operational

meetings • Initiative owners
How will we drive empowerment and accountability for decision-making across Customer Services?
268
1 2 3 4 5 How will we drive accountability for decision-making across

6 7 8 9 10
Customer Services?
Key building blocks required to enable accountability for achievement of the organization’s mission and vision…
Building 4. Roles & 5. Objectives, Goals,

block 1. Mission & Vision 2. Culture 3. Organization Design Responsibilities Strategies & Measures 6. Scorecard
Enables… Clear expectations Clear feedback Clear capability Clear measurement Clear consequences
• Understand existing • Design organization aligned with • Set objectives • Align employee
• Define mission culture organization vision aligned to vision success with
Key • Define vision • Design desired achievement of
activities • Communicate culture • Define roles and responsibilities • Assign owners to metrics
mission and vision • Identify capability gaps and build plan to each component
• Begin implementing address • Measure success • Continually review
culture and refine
ENTITY CS
TOM  Defined in To be discussed in Workshop 4 To be discussed in Workshops 5 and 6
Workshop 1
coverage
269
1 2 3 4 5 How will we drive empowerment for decision-making across

6 7 8 9 10
Customer Services?
Some suggestions from Customer Services employees were identified to drive greater empowerment across the business:
Incentivize employees for Encourage more cross-

contributing to change and communications with different
identifying ideas departments
Communicate better with

Implement a 'voice of the
employees to excite them
employee' platform
about the coming change
270
Appendix – High level design
Customers: How can Customer Services make being an ENTITY

customer easier?
1
Session 1
3
0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45
Proportion of participants
1
Session 2
3
0.00 0.20 0.40 0.60 0.80
1
Session 3
3
0.00 0.20 0.40 0.60
Op model initiatives
272
Customers: How can Customer Services make being an ENTITY

customer easier?
1
Session 1
3
0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45
1
Session 2
3
0.00 0.20 0.40 0.60 0.80
1
Session 3
3
0.00 0.20 0.40 0.60
273
Brand and Communications: How can Customer Services build a

more personal relationship with the customer?
1
Session 1
3
0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35
1
Session 2
3
0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45
1
2
Session 3
3
4
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70
274
Offerings: How can Customer Services increase the value customers

get from our programs, services, and other offerings?
1
Session 1
3
0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35
1
2
Session 2
3
4
5
0.00 0.10 0.20 0.30 0.40 0.50 0.60
1
2
Session 3
3
4
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80
275
Governance: How can Customer Services empower our people to

take ownership over the customer experience?
1
2
Session 1
3
4
5
0.00 0.10 0.20 0.30 0.40 0.50 0.60
1
Session 2
3
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90
1
Session 3
3
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70
276
Performance metrics: How can Customer Services better use data to

improve how performance is managed?
1
Session 1
3
0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45
1
Session 2
3
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70
1
Session 3
3
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80
277
Culture and Values: How can we receive improvement ideas on an

ongoing basis across Customer Services?
1
Session 1
3
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80
1
Session 2
3
0.00 0.10 0.20 0.30 0.40 0.50 0.60
1
Session 3
3
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80
278
Customer satisfaction scores from ENTITY Power and other internal

groups shed light on the current customer experience
ENTITY’s Overall Residential Electric CS ENTITY’s Overall Business Electric CS Net Promoter Score: Industry vs ENTITY
Ranking Across Utility Industry, ENTITY Ranking Across Utility Industry, ENTITY On a scale of 0-10, how likely would you be to recommend
[Brand] to a friend or colleague?
Power Power
47 Department Stores 62
52
ENTITY Ranking, Utilities

54 Tablet Computers 56
62 67 Investments 50
67
Online Entertainment 47
78 Online Shopping 45
91 88 Airlines 44
Smartphones 44
112 Auto Insurance 43
Laptop Computers 42
Hotel 40
Grocery Stores 40
Credit Cards 39
2014 2015 2016 2017 2018 2014 2015 2016 2016CY 2017 Home Insurance 38
ENTITY’s Overall Service Quality Index, Annual Cell Phone Providers 37
65% 2014 – 2018 YTD ENTITY Power residential and business Banking 35
customers cite price, new TOU rates, and Software & Apps 31
Max 61% Life Insurance
PQ&R as the primary areas for dissatisfaction 30
Index score, %
60% 59% 61% Pharmacies 28

60% 58% 58%
Travel Sites 23
55% Target 57% Health Insurance 13

Utilities 4
Significant YTD decreases for residential
Cable / Satellite TV 1
Min 53% contact center and field service operations
Internet Service -1
50% have contributed to CCS index decline
2014 2015 2016 2017 2018 YTD
ENTITY* -12
NPS Score
*Utility and ENTITY NPS score based on 2018 ENTITY Power residential electric customer
Source: NICE Satmetrix 2018 U.S Consumer Net promoted Benchmark Study, ENTITY Powersurvey 2018 Residential Electric Satisfaction, Market Strategies
279
Lagging elements of the existing customer experience as identified

by market research
ENTITY 3rd Quartile Elements of Customer Perception, Electric Utilities
Ease of paying your bill 8.0
Appearance of the website 8.0
Clarity of the information provided 7.9
Ease of navigating website 7.9
Timeliness of problem resolution 7.9
Provide quality electric power 7.8
Knowledge of representative 7.8
Avoiding lengthy outages 7.7
Amount of time given to pay bill 7.6
Usefulness of energy reduction tips 6.8
Outage information 6.7
Efforts to communicate changes 6.6
Variety of EE programs offered 6.6
Creating communication that gets attention 6.2
ENTITY 4th Quartile Elements of Customer Perception, Electric Utilities

Energy supply during extreme temperatures 7.8
Usefulness of information on bill 7.6
Promptness of power restoration 7.5
Variety of methods to pay bill 7.5
Representative’s concern for needs 7.4
Promptness in speaking to a person 7.2
Communicating how to be safe around electricity 6.7
Ease of understanding pricing 6.6
Efforts to develop energy supply plans for the future 6.5
Efforts of utility to help manage usage 6.4
Actions to take care of environment 6.3
Involvement in local charities and civic organizations 6.2
Keep you informed about keeping costs low 6.2
Availability of pricing options that meet needs 6.1
Total monthly cost of service 5.9
Fairness of pricing 5.7
280
Brand trust remains the most critical path to improving NPS as

utilities continue to invest in service improvements
% Influence on Net Promoter Scoring Existing customer service priorities: “Please rate the top customer
service priority you plan to address in the next 2 years”
Building customer trust Service satisfaction has
is the most critical path the biggest influence on % respondents
to improving NPS existing promoters Improving Self-service 76%
39%
36% 35% Call center operations 67%
34% 35%
32% 33%
28% 29% Cost Reduction 61%
Analytics 61%
New Products & services 57%
Introducing mobile apps 30%
Modifying / replacing CIS 25%

Detractors Passives Promoters
Product Experience Utilities continue to invest in improving self-service functionality and capabilities.
1 2 3 4 5 6 7 8 9 10 Improving customer satisfaction is the number one driver for strengthening
Service Satisfaction Detractor Passive Promoter customer-self-service cited by utility executives
Brand Trust % promoters - % detractors = NPS (net promoter score)
Note: based on survey of 100+ North American utility executives
Source: Market Strategies International Cogent Reports, PennEnergy
281
The case for change
Situation: Complication: Response:

• ENTITY is undergoing some fundamental • As the Customer Services organization In response to these unprecedented
changes as a business, and Customer transforms, there are some fundamental challenges, the Customer Services Organization
Services is at the heart of this market changes it will need to adapt to: is undergoing an exercise to:
• The threat of new legislation opening up 1. Define the future mission of the Customer
• The Customer Services organization is
the customer supply relationship, and Services organization
undergoing a new CIS replacement which
the longer term implications that this
presents a unique opportunity for the
poses 2. Articulate the vision for each element of the
organization to rethink the way it operates
• Growth of new technologies that are customer services operating model
fundamentally altering the future
economics of the market, such as 3. Build a roadmap that identifies how ENTITY
battery storage, solar panels and smart will deliver on the defined vision
meters
These inputs will enable the organization to
• Potential changes in the ENTITY drive towards the creation of a consistent and
corporate strategy that could change the aligned future state, and help the Customer
way that we serve customers in the Services organization reflect the vision
market developed by leadership
282
Operational improvement
Operational improvement workshop
The following section depicts the content that was used for the associated workshop. The output and thinking from this session, which was held on November28 th, has been
Workshop date: November 28th, 2018
Development of initiatives form across the business to meet the Customer 1. Vision & 2. High Level
Services vision Alignment
• Obtain a longlist of people, process, and technology issues in current-state
Design
business
• Identify a list of quick-win initiatives and associated framework to support
operationalization
• Develop a consolidated, prioritized roadmap across people, process, and
technology to support the achievement of the target operating model 4. Customer
3. Operational
Services
Improvement
Transformation
Attendees
• Over 70 attendees participated across the Customer Services organization.
The full list can be found in the attached document
284
The Customer Services organization is on a journey to adapt to

changing market and customer conditions
Change in the energy market is driving the need for Customer Services to adapt how it operates to serve its customers.
Rapidly changing regulatory New technology evolving market, e.g. Higher customer expectations of
environment, e.g. CCAs EVs, batteries, solar PV service, e.g. digital experiences
Today You are being asked to participate in this session as a representative from your part of the
organization.
Operational Your input is requested for seven two-part questions to understand how Customer Services can
Improvement adapt to changing customer needs.
workshop
How can the Customer Answers will be collected using TOOL, an online collaboration tool.
Services organization
improve? Input will be considered to help determine what changes can be made to make us more
successful in the future.
285
TOOL, an anonymous collaboration tool, will be used to gather input

from all participants
An online tool that engages all participants to collect open and honest responses.
Collaboration is online and anonymous to create a safe and open environment for all team members to
participate.
Encourages input from everyone, rather than only vocal team members.
Activities are structured to maximize time spent on questions rather than technology.
Alignment is encouraged through review and prioritization activities.
286
Follow the below guidelines when providing responses for each question
Remember: responses are anonymous!
Be honest!
Provide context in your responses.
Remember: people will rank ideas relevant to all groups – so submit ideas that will impact the
whole group!
287
We will go through seven questions about how the Customer

Services organization can improve
We will go through seven questions, for which there will be a Part A and Part B.
Part A: Respond to the question Part B: Select top 3 responses

2 minutes per component 2 minutes per component
Guidance Guidance
Responses should begin with an action word (Start/Stop/Continue) Look for the following attributes in responses:
and indicate an initiative to act upon.  Applicable across the Customer Services organization
 Begin with an action word (Start/Stop/Continue)
 Describes an initiative (something that can be acted upon)
 Provides context
288
For Part A, think about initiatives the Customer Services organization

can Start, Stop, or Continue
Please follow the below format for your responses:
Action: Initiativ
e People
Start:
An initiative is not currently in action and would support An action that involves the people of the organization, e.g.
the Customer Services organization's vision increasing training on a certain program
Stop: Process
An initiative is preventing progress towards the An action that involves how tasks are executed within the
Customer Services organization's vision organization, e.g. Maintaining consistency across channels
Continue: Technology
An initiative is in action and is supporting the Customer Services An action that involves technology and features,
organization's vision e.g. Streamlining access to all channels
Example:
Stop: requiring additional sign-up effort for outage alerts.
289
Thank you for your input today!
Your input will be consolidated to provide the perspective of all levels of the Customer Services
organization.
Leadership will consider all inputs as part of the broader process to help the Customer Services
organization move towards its vision for the next three years.
Please treat this information sensitively.
290
Structure responses based on an initiative Customer Services could

start, stop, or continue
A few reminders
 Responses are anonymous!  Provide context in your responses.
 Be honest!  People will rank ideas relevant to all groups – so submit ideas that will impact the whole group!
For Part A, utilize the below format:

Action: Initiativ
e People
Start:
An initiative is not currently in action and would support An action that involves the people of the organization, e.g.
the Customer Services organization's vision increasing training on a certain program
Stop: Process
An initiative is preventing progress towards the An action that involves how tasks are executed within the
Customer Services organization's vision organization, e.g. Maintaining consistency across channels
Continue: Technology
An initiative is in action and is supporting the Customer Services An action that involves technology and features,
organization's vision e.g. Streamlining access to all channels
Example:
Start: requiring additional sign-up effort for outage alerts.
291
Summary of Customer Services Input Gathering responses
Workshop Output Attendees from customer services joined us to share their view on how we can build for the future
70 professionals were brought from across 16 8 6 9 3
Responses
Attendees
Customer Business Customer Dispatch Pricing
Customer Services together to share
70 3
Sessions
Groups
ideas for how to enhance the 2
care
28
services
4
Programs
3 8 1
1000+
CSF & Smart Customer Digital Electric Meter Rate
organization
Smart
Metering Operations Meter Reform
1. How can Customer Services make being an Responses were synthesized into 55 themes Some responses are already being considered as part of ENTITY…
ENTITY customer easier?
10 themes with the highest frequency of contribution Themes were analyzed for impact on Themes were then examined for
2. How can Customer Services build a more Educate customers about
personal relationship with the customer? rates, programs, and other
items
Actively collect and respond to
Six key questions
employee feedback 26%

3. How can Customer Services increase the value Create a platform to encourage Approx.
44% 1 2 3 % initiatives covered by
customers get from our programs, services, and
other offerings?
employee ideas
Improve training and devel- 20% ENTITY
opment 30%
Improve programs
4. How can Customer Services empower our
people to take ownership over the customer Improve service
experience? Simplify rates
NEXT STEPS
Improve resource support
5. How can Customer Services better use data to
improve how performance is managed? Increase personalization of ser- • Communicate ENTITY themes to Customer Services leadership
vice
Improve data practices • Develop action plan for analyzing and executing those themes
6. How can we receive improvement ideas on an 0 10 20 30 40 50 60
not currently being considered across Customer Services
ongoing basis across Customer Services? # Responses
292
Customer services transformation
Customer Services transformation workshop
The following section depicts the content that was used for the associated workshop. The output and thinking from this session, which was held on January 17 th, has been incorporated
into the primary target operating model deliverable.
Workshop date: January 17th, 2019
Defining the process and plan to deliver the target operating model 1. Vision &
• Validate approach and methodology to deliver the target operating model to
2. High Level
support the desired future customer experience Alignment Design
• Agree on a set process to prioritize and operationalization initiatives as part of
a continuous improvement model
• Agree on a governance model and structure to support achievement of the
TOM
4. Customer
3. Operational
Services
Improvement
Attendees Transformation

294
Review TOM work-to-date including vision, mission, and design principles for Customer Services
Review initiatives submitted by the business and approach to operationalizing the target operating
model, starting in the coming months
Agree an approach to TOM delivery governance, management, and leadership
295
Over the last four months we have gathered input from multiple
stakeholders through workshops, interviews and dedicated sessions
Input Gathering sessions Contact Center sit-ins Stakeholder interviews TOM workshops
Gather input from many employees Identify quick win operational Gather input from ENTITY Customer Gather input from Customer Service
on how to achieve CS vision improvement opportunities Service stakeholders leadership
 Three hour-long sessions  Hour-long sessions  Hour-long interviews  Vision and strategy
 70+ attendees from across CS  12+ hours of call listening  Structured by TOM components  High-level design
 800+ inputs  30+ observations  Organized input from leaders  People and culture
IMAGES DELETED
296
Across the various inputs, we have synthesized 1000+ responses into

potential initiatives aligned to operating model components
Input Gathering sessions Attendees from customer services joined us to share their view on how we can build for the future
TOM Forums
26 8 6 9 3
Representation
Contact Center sit-ins
Stakeholders
Customer care Business Customer Dispatch Pricing
90+ 30+
Sessions
1000+
Inputs
services Programs
Stakeholder interviews
2 28 4 3 8 1
CSF & Smart Customer Digital Electric Meter Smart Meter Rate Reform
TOM workshops Metering Operations
Responses were synthesized into 100 initiatives… …Some technology responses are already being considered as part of ENTITY… …Then split by execution time
Initiatives were categorized into the operating model components Initiatives were analyzed for impact on Initiatives were then examined for Operating model initiatives
 Strategic in nature
Customer
Channels 1 2 3 % initiatives covered by ENTITY:  Requires more resources and
Brand and Communications investment
Offerings  Longer-term benefits

People and Organization 17%
Tech and Data Quick win opportunities
38%
Governance  Quickly deployed within 6
weeks
Process and Policy 29%
Performance metrics  Requires modest resources
Culture and values and investment
0 5 10 15 20 25
45%
 Visible, near-term benefit
# Responses
297
Each opportunity has been assessed to determine its feasibility and

alignment to Customer Services’ goals
Using the methodology, we selected the top 10 opportunities based for

1 Strategic alignment criteria potential operating model and quick win initiatives
Operating model initiatives Quick win opportunities
The strongest initiative should… The strongest opportunity should…
Drive a simple Be controllable by

Put digital first
experience CS Drives organizational
Drives a simple experience
Drive organizational Promote wider service efficiency
efficiency offering
2 Operational feasibility criteria
Is there a positive impact to the organization?
Can we implement a solution in our current organization?
How much capital expenditure / system changes are required?
298
Based on our assessment, we have prioritized the top 10 operating

model initiatives that have been identified by the business
Assessment of operating model initiatives based on strategic # Initiative

Operating model initiatives
1 Establish a performance framework – including KPIs – across the business to deliver the CS vision
9
Higher
C A
2 Build flexibility to achieve 1-hour field appointment windows
3 F8 1
B
7 E D 3 Consider the use of multi-skilled vs specialized agents
6 G
J 5 2
4 H 4 Invest in actionable segmentation to define service strategy for different customer types
Strategic alignment
I
10
Implement the use of a consistent continuous improvement methodology to drive operating model
5 initiatives
6 Make the bill more simple, user friendly and easier to understand
7 Route customer to the correct agent through the IVR
8 Promote the usage of self-service to customers
9 Default customers to paperless billing

Lower

Higher
299
Based on our assessment, we have prioritized the top 10 quick win

initiatives

Quick win
9
A
Higher
C
3 F8 1
B
6 G
J 5 2
D
Strategic alignment
I

Lower

Higher
300
The target operating model delivery methodology will help us manage

the changes that need to be delivered through the organization
Target Operating Model Delivery: Make it Easy Key questions for today
Identify Diagnose Design Deliver Sustain • What activities take place in each
Identifying initiatives Diagnosing route cause Defining our approach Delivering our solution Making sure the stage?
Gather initiatives from Assess the current Define the solution Monitor the results
• How do we manage and govern
Build the solution
multiple sources situation each of these paths?
Test the design Roll out the initiatives
Define and prioritize
the initiatives Develop the business Plan the • How will work flow across the
case implementation organization?
Develop the
measurement • How can we start to put the target
framework operating model delivery
methodology into action?
E.g. Prioritized initiatives E.g. Diagnostic analytics E.g. solution design documents E.g. functional processes E.g. measurement results
301
In Identify, ideas and initiatives are prioritized after being sourced

from customers, employees, stakeholders, and executives
Identify Identifying issues to pursue as initiatives
Inputs Outputs and artifacts
Consolidated and prioritized list of initiatives

selected for further analysis, including identification
of scope and categorization of initiative
Input gathering sessions Contact center Market analysis
Each initiative is ranked based

on the following:
Stakeholder / executive input Voice of the customer Customer data Operational feasibility
Actions
Strategic alignment
Gather initiatives from multiple sources
• Use customer, employee, and data insights to continuously develop
initiative list
Define and prioritize initiatives
• Identify and prioritize potential initiatives and scope
Prioritized and consolidated list of initiatives
302
In Diagnose, a root-cause analysis is performed using business data

to better understand potential impacts of any initiative
Diagnose Diagnosing root cause and business impact
Root cause analysis

hypothesizes the root cause
to problems identified and
Prioritized initiatives Business process maps uses data to validate and
propose a solution
Hypothesized root cause analysis

Data request Journey/experience maps
Actions
Business cases are developed
Assess current situation for each initiative to highlight
• Analyze existing business processes, information, and data to potential costs (e.g. resources,
understand the root cause of the problem capital expenditure) and
Develop business case benefit (e.g. ROI, CSAT lift)
• Develop business case to understand business and customer impacts
(cost, revenue, satisfaction)
Business case
303
The Design phase includes designing a solution and outlining an

approach to operationalizing the initiative
Design Defining our approach to execution
Hypothesized root External and Business case Solution Requirements Market/customer

cause analysis internal input
(customers, vendors, employees) design for build research findings
Actions
Define solution
• Design future-state experience and high-level process flows
Test design
• Market and user testing and refinement
Plan implementation
• Identify cross-functional execution stakeholders
Measurement Stakeholder Implementation
Develop measurement framework
• Develop measurement framework framework assessment plan
304
Based on the design, the solution is built out and executed during
Deliver
Deliver Delivering our solution to the business
Requirements for build Solution design

External and
internal input
(Change management, process
owners, SMRs, vendors) Functioning processes for deployment High level RACI
Implementation plan Stakeholder assessment
Actions
Build solution
• Manage technical and specialist teams to develop, test, and deliver
Roll out initiatives

• Validate and finalize launch approach
Resource plan Change management collateral
(communications, training)
305
In Sustain, the initiative is monitored after being rolled-out to

identify future improvement opportunities and initiatives
Sustain Making sure the solution sticks
Measurement framework Post go-live analytics
Actions
Measurement results Customer and employee feedback

Monitor
• Consistently gather and assess feedback on delivered solutions Post go-live analytics and measurement results – along with additional customer / employee feedback
– provide additional insight for improving, iterating, and enhancing existing and future initiatives
306
For quick win initiatives, a rapid six-step framework supports

operationalization of initiatives
Quick win Following a process for quick-win initiatives
List of prioritized quick win initiatives
Actions
1. Define problem statement: why was this ideas was proposed?

2. Assess current state: what impact has this problem had on ENTITY?
3. Identify root cause: what is the underlying cause of this problem?
4. Develop solution outline: what is the best solution for this problem?
5. Creation implementation: how should this solution be implemented?
6. Establish tracking: which KPIs will reveal the success of this solution? Illustrative: six-step framework
307
Pre-defining a TOM governance structure is key to operationalizing

the initiatives and ensuring efficient implementation
Drive rapid decision-making and prioritization of initiatives
Accelerate a cultural shift in ENTITY’s and Customer Services’ ways of working
Establish ownership and oversight of implementation activities and decisions
Own the Customer Services’ roadmap providing visibility to all programs
308
TOM delivery will require a focused set of governance forums that

are managed closely and regularly
Governance Forum Objectives of the Forum Attendees Frequency
• Informs employees about key activities, messages

Customer Services Town Hall and performance of Customer Services • All of Customer Services • Quarterly
Strategic
• Make decisions about strategic questions • Chief Customer Officer +

Target Operating Model (TOM) • Measures performance and overall health of Direct Reports • Biweekly, Monthly
Board Meeting Customer Services • Chief Information Officer TOM
• Intervenes and re-directs strategy where required • Chief Marketing/Comm.s Specific
Forums
• Conducts analysis for strategic questions to take to •
Target Operating Model (TOM) Core CS Operating Model
leadership team • Weekly
Working Group Meeting • Owns Operating Model roadmap, monitors • CS Directors (as required)
Customer Services Managers • Manages day-to-day operations of the business • Key resources from across
Operations Meeting • Tracks metrics and mitigates risks and issues with customer services • Weekly / biweekly
Operational

Meetings • Initiative owners
Workshop Output
309
The TOM Board and the TOM Working Group will provide the
required oversight and drive the timely implementation respectively
Governance Structure Forum Purpose Roles and Responsibilities
• Provides overall strategic direction and governance Executive Sponsor

• Establish a consolidated view of all transformation • Set overall business objectives and actively sponsor the program
changes; Monitor programmes lifecycle; intervening by
exception • Address key barriers to change and resource issues as needed
• Review business cases, approves and fund new Board Member Accountabilities
Target Operating Model transformational initiatives, within an allocated budget • Review business cases, approve and fund new transformational initiatives
(TOM) Board Meeting • Ensure portfolio risks are managed
• Provide input and approval on program roadmap and priorities
• Oversee change management plan
• Escalation point for portfolio/programmes risks, issues • Establish the escalation path for program issues and risks
and dependencies • Monitor programs through their lifecycle; intervening by exception
• Approve changes to prioritisation and intro of initiatives • Ensure portfolio risks from critical interdependencies are managed
• Direct governance of projects / portfolios and Working Group Leader

programmes to be delivered in the Customer Services
• Design the program plan to most effectively meet the business case
business
• Accountable for analysis, day to day management and • Provide day-to-day leadership for the program
delivery of programmes, reporting and escalating cross- Working Group Member
Target Operating Model portfolio risks and issues
(TOM) Working Group • Accountable for successful delivery of their work products (schedule, quality, costs)
• Report progress and status of the programmes within
Meeting • Ensure the TOM Working Group Leader is aware of statuses, issues and risks
their portfolios and to the TOM Board
• Implement the gate process and report progress to the • Implement the stage gate process and report progress to the TOM Board
TOM
(This group consists of key resources from the Business (Customer Services, IT, etc.) who will
assist in driving the programs forward)
310
Four stage-gates will drive important design and implementation

decisions across the two governance forums

Identifying initiatives Diagnosing route cause Defining our approach Delivering our solution Making sure the
Should we pursue the Do we understand the Should we invest in Should we cycle back to
Decision initiative? business issue? executing? Design or go to Sustain?
Forum TOM Board TOM Working Group TOM Board TOM Working Group
Frequency Biweekly Ad hoc / weekly Biweekly Ad hoc / weekly
• Alignment with the design • Viability of initiative and its • Defined estimates of • Realized gains and favorable
Success Factors principles return on investment investment required and outcomes
• Appropriate timing with • Impactful long term gains robustness of gains • Entrenched cultural change
other initiatives that align with overall TOM • Feasibility in terms of to continue implementing
strategy timing and budgeting for new/changed process
the CS program • Sustainable at the
operational level
311
How will we measure success?
Contribution to the achievement of the Customer Services Target Operating Model Vision
Effectiveness of the through portfolio management, better governance and process improvement
Target Operating
Model delivery
function Feedback from the Executives on the role and the TOM Team and their contribution to
delivering their strategic objectives
Maturity of the Increased capacity to deliver target operating model initiatives

Target Operating
Model delivery
function
# of ongoing improvements identified and implemented
312
Customer Services KPI
Customer Services KPIs workshop
The following section depicts the content that was used for the associated workshop. The output and thinking from this session, which was held on February 12 th, has been
Workshop date: February 12th, 2019
Defining the KPIs by which we will measure Customer Services 1. Vision & 2. High Level
• Agree upon on a key set of KPIs, including supporting metrics, the Alignment Design
organizational will track to assess performance against achieving the target
operating model
• Define the process for which the organization will review and address KPI and
initiative performance, including the associated objectives, goals, strategies,
and measures
4. Customer
3. Operational
Services
Improvement
Attendees Transformation

314
Review primary and secondary KPIs and prototype Customer Services sample dashboard
Agree on dashboard delivery governance, management, and leadership review
Discuss next steps for operationalization of dashboard prototype
315
The Primary KPIs identified will align to the design principles in order
to assess performance toward achieving the TOM
Primary KPI TOM design principles
We put customers first and provide an effortless service

Customer effort score
experience
We prioritize digital solutions for our team and our

Cost Per Contact
customers
We believe service starts with trusted team members

Employee Index
who are empowered to help customers the first time
We are an agile organization that reacts quickly to

Customer Services Agility
customer needs and changing market conditions
We add value to customers by connecting them to

Avg offerings per customer
relevant energy offerings
316
Our five primary KPIs were sourced from different inputs and can be
traced back to different operational metrics the business tracks
Inputs to understanding what are the primary KPIs we need to measure to support the Customer Services’ Target Operating Model
TOM Workshops Stakeholder interviews TOM initiatives
Gathered input from Customer Service Gathered input from ENTITY Customer Assessed draft target operating model
Leadership to support HLD of KPIs Service stakeholders initiatives to understand associated measures
Top-down input
Five primary KPIs identified
Customer Cost Per Employee Customer Average offerings

Effort Score Contact Index Services Agility per customer
Bottom-up verification
Inputs to validating and verifying approach to proposed primary and secondary KPIs
ENTITY KPIs KPI Value Tree EY SMR Network Detailed stakeholder review
Reviewed KPIs and metrics as part Developed a KPI value tree to Considered leading practice from Reviewed findings with Customer
of ENTITY go-live understand KPI drivers industry/cross-industry peers Services stakeholders
317
Our approach follows the previously outlined target operating model

delivery methodology to support achievement of the TOM
Target Operating Model Delivery: Make it Easy
Today
 Sourced initiatives across the  Analyzed existing  Identified and defined primary  Work with business to better  Gather feedback and assess
business through workshops, information, including KPI and secondary KPIs, as well as understand data constraints post go-live results
employee input, etc. reports, initiatives, and supporting metrics
leading practice KPIs to  Validate and finalize  Review feedback for
 Identified and prioritized outline potential performance  Defined and designed potential deployment approach and additional insight and
initiative around “Establishing frameworks solution implementation strategy iterations
a performance framework,
including KPIs, across the  Established TOM vision,  Designed detailed  Work with technical and
business to deliver the CS mission, and design principles implementation plan, including specialist teams to fully
vision” to guide business case and identified stakeholders and develop, test, and deliver the
solution development product owners finalized solution
318
A set of objectives supported the development of the Customer

Services’ dashboard prototype and metrics
Considerations: dashboard prototype Considerations: KPIs and metrics
Applicable: can the dashboard provide a high-level view Alignment: Does the metric align with the Customer Services
of primary indicators for multiple audiences and user group Target Operating Model (TOM) vision, mission, design principles,
types across the Customer Services organization? and ENTITY KPIs?
Actionable: Is the dashboard designed to drive specific Commercial Impact: By influencing this metric, can we drive a
action through the Customer Services’ organization? positive commercial impact?
Feasible: Can the dashboard be delivered and executed in Customer Impact: By influencing this metric, do we have a
ENTITY’s environment in the foreseeable future? positive effect on the customer experience?
Timely: Can the dashboard be updated on a reoccurring, Controllable: Is the metric within Customer Services’
frequent basis to provide the most relevant and accurate data organization scope?
319
Primary and Secondary KPIs provide stakeholders with an overview

of key target operating model drivers
Customer Effort
Customer Effort Score by Journey Channel cost
Score by Segment
Customer contact Primary KPIs

volume
Customer Effort • Top-line KPIs for leadership that indicate overall performance and
Score by Channel progress toward achieving the target operating model
Cost per • Directly related to target operating model design principles
Customer
contact
Effort Score
Draft Customers enrolled
CS in offerings
KPIs
Employee Index Avg offerings
per customer Secondary KPIs
Customer • A breakdown of primary KPIs into their component parts
Employee
engagement Services Agility • Provide additional context for analysis and diagnostics for
Customers eligible operational teams
for offerings
Attrition rate Days elapsed

to deliver
Safety /
Continuous
incident rate*
improvement initiatives
*Not part of Employee index
320
A full KPI value tree was developed to validate the specific

operational metrics that the organization can target
Level 5
Level 4
Average time to next available appointment
Field Service Customer
Level 3 Effort Drivers % requests booked through customer channel of preference
Number of clicks / request (web & mobile)

Field service CES
Secondary KPIs Average time deviation outside of stated window
% of field appointments completed on-time

Full KPI Value Tree
Number of field
Customer effort
service requests Avg response time (emergency)
score by journey
Start/stop/transfer % of customers receiving service status notification
CES
% appointment window 1-hour
Primary KPI
First-fix rate
Customer Customer effort

Billing and payment Each of the five primary KPIs have been mapped to
Effort Score score by channel
CES
specific operational metrics that the business either
tracks today, or plans to in the future (through
specific initiatives or through ENTITY)
Outage CES
Customer effort
score by segment
Energy management
(i.e. offerings CES)
321
A dashboard containing these KPIs would create a single point to

track the progress towards Customer Services’ vision
322
Although data exists within Customer Services today, work is

required to operationalize the dashboard
Primary KPI Secondary KPI Measured today? Comments and next steps
• Customer Effort Score by Channel • Determine capabilities of voice of customer platform

Customer Effort Score • Customer Effort Score by Journey No • Understand data metrics and attributes under consideration for first
• Customer Effort Score by Segment release
Cost Per Contact • Channel cost Partial • Available for contact center and branch office visits
• Customer contact volume • Determine feasibility of reporting by channel
• Employee Engagement • Finalize metrics for employee engagement

Employee Index • Safety/incident rate Yes • Determine to-be frequency of measuring and collecting employee
• Attrition rate engagement
Customer Services Agility • Continuous improvement initiatives No • Finalize metrics for agility index, including components
• Days elapsed to deliver • Determine to-be processes and methodology to capture metrics
• Assumed to be available
Avg offerings per customer • Customers enrolled in offering No • Determine offering portfolio and attributes available to measure for
• Customers eligible for offerings customer
323
Operationalizing the Customer Services’ dashboard using the TOM

delivery framework
Illustrative approach to fully operationalizing the Customer Services’ dashboard
Design Deliver Sustain
 Validate key metrics and KPIs that exist in the  Develop environment that combines and joins different  Establish dashboard governance to ensure continuous
business and across external vendors data sources and reports accuracy and validation of data
 Work with core team and stakeholders to understand  Build dashboard using visualization tool such as Power
implications of moving necessary data to a BI
consolidated source
 Finalize deployment of dashboard across Customer
Services’ organization
 Finalize design of dashboard based on feedback and
discussions with stakeholders
Key questions for next phases
What data exists within ENTITY vs external vendors? What is the level of effort needed to develop the dashboard? How will the dashboard be socialized across CS?
Who are those accountable for data required / needed? How often will the dashboard be updated? How will the dashboard be maintained?
What is ENTITYs’ impact to any required data? Who are the product owners and accountable stakeholders? How will the dashboard be used in BAU/TOM context?
324
Dashboard governance
The Customer Services’ dashboard would integrate within existing

governance forums….
Dashboard integration
Governance Forum Objectives of the Forum Attendees Frequency KPI Metrics Responsibilities
• Informs employees about key activities, Primary

• Review top-line priority KPIs
messages and performance of Customer • Highlight key initiatives that
Customer Services Town Hall • All of Customer Services • Quarterly Secondary
Services
plan to address primary KPIs
• Enables open dialogue and feedback Operational
Strategic
• Make decisions about strategic questions • Chief Customer Officer + Primary • Defines priority top line KPIs
• Measures performance and overall health of Direct Reports and targets
Target Operating Model • Chief Information Officer • Biweekly, Monthly
Customer Services Secondary • Monitors progress vs plan
(TOM) Board Meeting • Chief Marketing/Comm.
• Intervenes and re-directs strategy where • Assigns accountability to
Officer Operational
required direct reports
Target Operating Model • Conducts analysis for strategic questions to • Core CS Operating Model • Takes ownership of particular KPIs
(TOM) Working Group take to leadership team • Weekly • Monitors changes to KPIs and
Meeting • Owns Operating Model roadmap, monitors • CS Directors (as required) understands impact
performance and recommends action Primary
• Takes responsibility for explaining
Secondary changes to the dashboard that fall
under their remit
• Manages day-to-day operations of the Operational • Originates initiatives that target
Customer Services Managers • Key resources from across
business customer services • Weekly / biweekly specific KPIs; articulates the
Operations Meeting • Tracks metrics and mitigates risks and issues • CS Directors (as required) overall impact to top line metrics
with performance
• Metrics are articulated in terms of

Operational
Primary
• Workstream leaders contribution and impact to top line
Operational Improvement • Maintain day-to-day operation of initiatives
• Initiative owners • Weekly Secondary metrics
Meetings
• Are monitored pre and post-
Operational
delivery
326
…and have different applications across the organization and

business
Primary Application Applications Example
Used to assess month-to-month and longer-term changes to core metrics E-bill adoption dropped 5% due to adjusted sign up process
Target Operating Model (TOM) Board
Meeting
Provides visibility across entire customer services organization Across all channels, customer effort score was 80%
Enables business leaders to drill down to identify underlying drivers of Cost per contact has been variable due to a high number of long high
impacts bill inquiries in the Contact Center
Target Operating Model (TOM) Working
Group Meeting
Enables management of core metrics at a granular level
Agility Index is being impacted by the decrease in special projects
prompting further discussion and investigation
Reference to KPIs enables critical decisions to be made between Moving to 1-hour appointment windows could impact cost per
competing initiatives contact in field by 20%
Target Operating Model and Quick Win
Initiative Management
Enables monitoring of initiative benefits planned vs actual
We forecast a drop in ASA of 10 seconds compared to the planned 5
seconds
Supports tracking of benefit realization and ROI Switching to paperless billing has resulted in $10M in postage savings
Traditional reporting
Supports ad-hoc reporting often requested by other executives,
organizations, and stakeholders How many customers are using the mobile app today?
327
A structured process helps drive accountability for each KPI and

metric across the organization
Receive data Analyze changes Compile insights Socialize findings Track and measure
Work with business owners and Input commentary and insight Track and report on
Receive updated Identify key changes that
stakeholders to understand into report to highlight root- progress of action items and
dashboard data require attention
root-causes of deviations causes of deviation follow up where appropriate
Target Operating Model (TOM) Working Group Meeting Target Operating Model (TOM) Board Meeting
Suggested meeting structure Suggested meeting structure
1 Accountable employees discuss each section 1 Review discussion topics
2 Review progress towards pre-set targets 2 Review changes and actions discussed in last meeting
3 Gather input from business owners for root-cause of deviations 3 Discuss presented analysis for each section
4 Discuss action plans or initiatives with impact any KPIs 4 Gather input from Customer Services’ leadership on priority areas
5 Establish discussion topics and KPIs for TOM Board meeting 5 Additional follow-up on prioritized initiatives status
328
Objectives, Goals, Strategies, and Measures
To date, we have defined the future state vision, principles and

desired TOM for Customer Services
The Mission Design Principles Vision Statements
Tells Customer Services what Helps the whole organization understand and Helps operational teams across the organization understand how they contribute to the
direction we are headed make choices that in-line with the Mission Customer Services Mission
Customers To provide all of our customers with an effortless energy
experience
effortless service experience Channels Experience is optimized across a selective set of channels to
Brand & ENTITY customers have a personal and positive experience with our
communication brand
We believe service starts with trusted
team members who are empowered to We are excellent at our core offerings and add value to customers
help customers the first time Offerings
with complementary services
Make it We prioritize digital solutions for our

People &
organization
We are an agile organization with employees empowered to make
decisions
We harness technology to drive process efficiency and anticipate
easy
team and our customers Tech & data our customers’ needs
Process design and execution prioritizes the customer, even when
Process & policy that is challenging for the business
We are an agile organization that
reacts quickly to customer needs and Delegated authority is given to defined, accountable and
changing market conditions Governance
empowered decision makers at all levels
Performance Priority KPIs measure and communicate strategic outcomes to
metrics drive informed decisions
We add value to customers by
connecting them to relevant energy We have a continuous improvement and first-time resolution
offerings Culture & values culture, and hold each other accountable to this
330
The OGSM structure helps drive the identification of goals,

measurements, and strategies tied to the target operating model
Broadly what How
Objectives Goals Strategies Measures
O G S M
What we need to achieve Quantitative target of How we will achieve our Measures will assess
based on our mission progress towards objectives objectives and goals performance of strategies
E.g. design principles E.g. KPI targets E.g. TOM initiatives E.g. initiative metrics
Successfully implemented strategies Measures for strategies and

should lead to achieving objectives initiatives should drive toward KPIs
331
Objectives, Goals, Strategies, and Measures
332
People & culture
INENERGY COMPANY ART: People and culture workshop
The following section depicts the content that was used for the associated workshop. The output and thinking from this session, which was held on December 24 th, has been
Workshop date: December 24th, 2018
Defining the organization that will deliver the vision in the future 1. Vision & 2. High Level
Alignment Design
4. Customer
3. Operational
Services
Improvement
Transformation
Attendees

334
ENERGY COMPANY ART: Workshop material
335
Target Operating Model – Workshop Materials Plan
TOM Work Stream Approach & Timeline - 2018

Note: original plan differs from actual delivery based on input from Customer Services’ leadership
September October November December January
W/C 3rd 10th 17th 24th 1st 8th 15th 22nd 29th 5th 12th 19th 26th 3rd 10th 17th 24th 31st 6th 13th
• CS Baseline Holiday
• Market assessment
1. Current State & Vision • Customer segment analysis
Alignment Workshop • Workshop materials / materials plan / outputs
• Validated strategy
• Quick wins
• Customer service long list of issues

2. Operational • Prioritizing ‘customer service’ quick wins
Improvements Workshop
• TOM case for change

• Current state TOM
3. Future State High Level
• TOM design principles
Design Workshop
• Leadership-validated high level TOM design decisions
• High level customer experience design over

time for customers
4. Customer Experience
• Customer Journey change impact assessment
Design Workshop
• Agreed set of customer experience
measurement priorities
• Future org structure & RACI

5. People, Culture and • Org change impact analysis
• Tech roadmap gap analysis
• Agreed definition of analytics within ENTITY

6. Data analytics and KPIs • Agreed role of analytics within ENTITY
• Agreed set of KPIs to measure success of operating model performance
TOM work stream is

= proposed workshop week ongoing into 2019
337
TOM Work Stream Approach & Timeline - 2018

Note: original plan differs from actual delivery based on input from Customer Services’ leadership
September October November December January
W/C 3rd 10th 17th 24th 1st 8th 15th 22nd 29th 5th 12th 19th 26th 3rd 10th 17th 24th 31st 6th 13th
• CS Baseline
Baseline customer service performance
• Market assessment Holiday
1. Current State & Vision Conduct market assessment • Customer segment analysis
Alignment Workshop Analyze customer segments • Workshop materials / materials plan / outputs
Agree customer value proposition • Validated strategy
• Quick wins
Agree CS quick wins • Customer service long list of issues
2. Operational Improvements Documents high level processes • Prioritizing ‘customer service’ quick wins
Workshop
Build out TOM case for change • TOM case for change
Collate baseline data • Current state TOM
3. Future State High Level
Develop design principles • TOM design principles
Design Workshop
Build strategic design options • Leadership-validated high level TOM design decisions
Obtain existing customer journey maps

• High level customer experience design over time for
customers
4. Customer Experience Collate existing CX data • Customer Journey change impact assessment
Design Workshop
Prepare leading practice insights • Agreed set of customer experience measurement
priorities
Build high level future org structure & RACI
• Future org structure & RACI
5. People, Culture and Develop process change impact assessment • Org change impact analysis
Develop gap analysis of tech roadmap • Tech roadmap gap analysis
Prepare leading practice examples of analytics functions

• Agreed definition of analytics within ENTITY
6. Data analytics and KPIs • Prepare design choice options for analytics
Agreed role of analytics within ENTITY
• Agreed set of KPIs to measure success of operating model performance Prepare leading practice views on op model success measurement
Establish TOM Governance
General Interview and align key stakeholders

= proposed workshop week TOM work stream is
Build w’shop plan ongoing into 2019
338
Workshop 1 – Current state and vision alignment

Specific to the Target Operating Model and therefore the Workshop Materials and the Workshop Results of which will be Restricted Reports.
Objectives Attendees Proposed Dates Duration Site
• Gain alignment on direction of the energy market and how this impacts ENTITY / ENTITY
• Understand interpretation of current vision / strategy across business W/C 22nd October 4 Hours CP Annex
• Gain alignment on baseline business performance
Proposed Agenda Dependencies

Introductions 10 mins • Availability of key personnel to workshop • Availability of Program Management to review and provide
• Timely provision of data requested in order to perform analysis guidance on key materials
Objectives 10 mins
Outside-in of the Energy Market 60 mins Constraints

Review Current Performance of the business 60 mins • Data availability
• Time
Understand customer segments 45 mins
Review and develop inside out view of vision 30 mins Inputs Outputs
Summarize 30 mins • Market Assessment • Approved customer service baseline and market assessment
• Customer Segment Analysis • Validated customer segment analysis
Close 5 mins • Baselined customer service performance • Validated organizational vision
September October
3 rd
10 th
17 th
24 th
1 st
8 th
15th 22nd
Receive CS Create initial draft of customer service
Schedule
Draft initial analysis templates Iterate and refine customer service baseline
Workshop Week
baseline data baseline
Note: original plan differs
workshop pre
Receive Develop
Distribute
Submit data requests for CS and Create initial draft of customer
from actual delivery based segmentation Iterate and refine customer segmentation workshop
read
Segmentation segmentation materials
data
on input from Customer Create initial draft of market
Develop and agree topics for market assessment Iterate and refine market assessment
Services’ leadership assessment
Schedule interviews Interview and align with key stakeholders Summarize interviews
Initial drafts developed Review workshop
All date received Analyses review
and reviewed materials
339
Workshop 2 – Operational improvements ‘Hot House’

• Agree on current state customer service processes Front office, back office,
• Obtain a ‘long list’ of people, process and technology issues in current state processes leadership etc. Plus EY / W/C 5th November 4 – 6 Hours CP Annex
• Assess root causes of identified issues Accenture facilitators

Objectives 10 mins
Review operational KPIs 90 mins Constraints

Review current state customer service processes 90 mins • Data availability
• Time
Issue identification and route cause explanation 90 mins
Next step discussion 30 mins Inputs Outputs

Summarize 20 mins • Customer service baseline / current state KPIs • Customer service baseline / current state KPIs
• Document current state high level processes • Document current state high level processes
Close 5 mins • Prepare workshop materials and facilitators • Prepare workshop materials and facilitators
October November
8th 15th 22nd 29th 5th

Schedule
Note: original plan differs Analyze to identify longlist of CS quick wins and
Workshop
workshop pre
Request, receive and
Distribute
from actual delivery based review all operational associated route causes / explanations Incorporate
Documents high Develop workshop
read
KPIs and current state feedback and
on input from Customer customer service
level processes
finalize deck
materials
Services’ leadership processes Draft initial analysis deck
All date received Review initial draft Review workshop materials
340
Workshop 3 – Future state High Level Design

• Agree to the case for change for the operating model

• Build a set of design principles for the operating model design W/C 26th November 4 Hours CP Annex
• Make a set of design choices about the future operating model

Objectives 10 mins
Review operating model case for change 60 mins Constraints

Review and agree operating model design principles 60 mins • Data availability
• Time
• Process scope of CIS
Make operating model design choices 60 mins
Summarize 15 mins Inputs Outputs

Close 5 mins • Build draft operating model case for change • Operating model case for change
• Prepare operating design principles options • Operating model design principles
Next steps 5 mins • Prepare a set of high level operating model design choices • High level operating model design choices
October November
1st 8th 15th 22nd 29th 5th 12th 19th 26th

Schedule
Review outputs Develop draft design principles

Note: original plan differs from vision
workshop pre
Workshop
from actual delivery based
Distribute
session Draft strategic design options
Develop workshop
read
on input from Customer Draft TOM case for change materials
Services’ leadership Collate baseline
data
All data Wshop materials

Drafts reviewed reviewed
received
341
Workshop 4 – Customer Experience Design

• Design desired future customer experience for different customer segments

• Examine change impacts from existing to desired customer experience W/C 10th December 4 Hours CP Annex
• Agree on customer experience measurement priorities

Objectives 10 mins
Review existing ENTITY customer experience and Constraints

customer journeys 60 mins
• Data availability
• Time
Examine leading practice customer experience from Process scope of CIS
across industries 60 mins •
Design high level desired customer experience for

ENTITY customers 60 mins Inputs Outputs
Summarize 20 mins • Obtain existing ENTITY customer journey maps • High level customer experience design over time for ENTITY
• Collate historic ENTITY customer experience data Customer journey change impact assessment
• Prepare leading practice, cross-market CX insights • Agreed set of customer experience measurement priorities
Close 5 mins
October November December
15th 22nd 29th 5th 12th 19th 26th 3rd 10th

Schedule
Note: original plan differs Request Obtain and analyze existing customer journey Draft high level experience design by customer
maps group
workshop pre
from actual delivery based customer
Distribute
Workshop
journey maps Develop
Iterate materials and review
read
on input from Customer and CX data Collate and analyze existing CX data Draft change impact assessment with cross-ENTITY stakeholders
workshop
materials
Services’ leadership
Schedule EY SMR Draft customer experience measurement
Hold EY SMR interviews
interviews priorities
All data received Drafts reviewed Workshop materials reviewed
342
Workshop 5 – People, Culture and supporting Processes

• Outline desired culture principles for the future ENTITY operating model
• Agree upon the high level organization design appropriate for ENTITY W/C 3rd December 4 Hours CP Annex
• Explore capability gaps and training requirements to meet desired organization design

• Availability of key personnel to workshop • Availability of Program Management to review and provide
Introductions 10 mins • Timely provision of data requested in order to perform analysis guidance on key materials
Objectives 10 mins
Constraints
Review existing and desired culture for ENTITY
60 mins
operating model • Data availability
• Time
Make design choices about future state organization • Process scope of CIS
60 mins
design for ENTITY
Discuss capability gaps in meeting new organization

60 mins
Inputs Outputs
design
• Conduct internal ENTITY culture assessment • Desired future-state culture for ENTITY operating model
Summarize 20 mins • Prepare organization design model options • High level future-state organization design
• Prepare capabilities and skills required to meet organization • High level capability gap analysis
design models
Close 5 mins
October November December
15 th
22 nd
29 th
5 th
12 th
19 th
26 th
3rd
Schedule
Note: original plan differs Request current org

Receive and analyze Draft high level future org structure & Draft process change impact assessment
workshop pre
Workshop
structure and RACI Finalize
from actual delivery based
Distribute
current state RACI
across Customer analysis Develop workshop
read
on input from Customer based on materials
Services’ leadership feedback
Request, receive and analyze tech roadmap Draft gap analysis of tech roadmap
All data Review ORG drafts Review impact assessments

received
343
Workshop 6 – Data, Analytics and KPIs

• Gain alignment on a company-wide definition of analytics

• Make decisions on the role of analytics within ENTITY W/C 13th January 4 Hours CP Annex
• Agree upon KPIs for the new operating model

Objectives 10 mins
Constraints
Review scope of analytics within ENTITY 60 mins
• Data availability
• Time
• Process scope of CIS
Make decisions on the role of analytics within ENTITY 60 mins
Review leading practice KPIs to be measured in the

60 mins
Inputs Outputs
new operating model
• Prepare cross-market, leading practice examples of analytics • Agreed definition of analytics within ENTITY
Summarize 20 mins • Prepare design choice options for analytics within ENTITY • Agreed role of analytics within ENTITY
Prepare cross-market, leading practice views on TOM • Agreed set of KPIs to measure success of operating model
performance measurements performance
Close 5 mins
November December January
5 th
12 th
19 th
26 th
3 rd
10 th
17 th
24 th
31 st
6th 13th
Schedule
Note: original plan differs Set up meetings
Distribute workshop
Draft leading practice examples of functions
Workshop
with analytics
from actual delivery based SMRs
pre read
Develop
on input from Customer Analytics Draft design choice options for analytics Develop proposed set of KPIs to measure
ASSUMED HOLIDAYS workshop
interviews operating model success
Services’ leadership Research into
materials
analytics best Draft leading practice views on op success

practices measurement
Review analytics drafts Review KPI drafts Review workshop materials
344
Customer Service Baseline
October 23, 2018
About this document
Document Description
The Customer Service Baseline assessment is a document that outlines the

current-state of ENTITY’s existing customer service organization. This initial
draft uses existing data within the enterprise to assess the different operating
model components
346
Table of contents
1 | Purpose and Approach

1.1 | Operating model components
1.2 | Key Questions
2 | Baseline assessment
2.1 | Customers
2.2 | Channels
2.3 | Brand & reputation
2.4 | Products & services
2.5 | People & organization
2.6 | Technology & data
2.7 | Process & policy
2.8 | Governance
2.9 | Partners & suppliers
2.10 | KPIs
2.11 | Culture & values
347
Purpose & approach
Purpose and approach
Purpose
• Baseline the Customer Services organization’s performance to develop an understanding of where it is today
• Utilize analysis as an input to Target Operating Model workshops, which will support the development and design of the target
operating model for the Customer Services organization
Approach
• Defined key operating model components including: customers, channels, corporate brand & reputation, products & services,
people & organization, technology & data, process & policy, governance, partners & suppliers, KPIs, cultural & values
• Explored key market trends, customer behaviors, and demographic shifts that could impact ENTITY’s current and future
operating model
• Gathered data across enterprise to highlight key areas across the organization that could be impacted by future operating
model decisions
• Analyzed industry leading practices to better benchmark elements of ENTITY’s current customer services organization
349
Customer services baseline assessment
External assessment and Review, socialization, and

Framework development Data collection and analysis
leading practice examples consolidation
 Identify key operating model  Request and collect key customer  Identify leading practice examples for  Conduct leadership workshops to
strategy components that will be service data and reports and align each operating model component, socialize current state findings
used to drive assessment of with operating model components including cross industry examples
customer service baseline  Consolidate leadership input for
 Work with core team and  Compare ENTITY’s current customer future-state target operating model
 Begin development of operating stakeholders to analyze required data service organization against identified design decisions
model decisions to be answered by and perform “current-state” analysis leading practices
leadership in workshops
Key outputs
(Illustrative, sample deliverables)
Operating model strategy components

Current-state performance assessment Leading practice examples and benchmark Current-state leadership workshop outputs
and key design decisions
350
There are several operating model strategy components used for our
baseline assessment
Customer experience
Customers
Why the
Channels
transformation is
taking place Brand & reputation
Products & services
What capabilities
Capability
are needed to
enable the vision
and strategy
Governance
How the objectives Partners & suppliers

Enablers
and capabilities will

be delivered KPIs
Culture & values
351
Baseline assessment
About this section
Section Description
This section includes outputs from analyses that have been conducted as part
of the Customer Service Baseline. Data across the organization was gathered
and synthesized to help support future operating model decisions. Case studies
and other leading practices have also been be compiled for each strategy
component. The analyses and content will be specifically tailored to drive
operating model inputs as well as decisions in future workshops.
353
Customers
B2B & B2C expectations are influenced by leading practice experiences,
Customers significantly impacting utilities
Loyalty is low Expectations are higher

76% of customers think it’s easier than ever As disruptive companies leverage breakthroughs in
to switch brands to find an experience that technology to deliver superior experiences, customers
matches their expectations expect this superior experience from all companies
76% of consumers expect companies to cater to their needs and expectations: Key takeaways
Collaboration across functions (channels,
marketing, data, IT) will be increasingly
64% expect immediate responsive 84% expect personalization important to ENTITY in driving a real-time, 360-
service • Being treated like a person, not a number degree view and strategy for key customer
• 64% of consumers/80% of business buyers
• Tailored engagements with knowledge of past segments across channels
expect real time responses interactions and product/service usage
Specialized agents that serve a more
consultative role and deliver a personalized
experience could be more important to
consumers in the future, complimenting the
70% expect connected journeys 66% expect impressive new products automated transactional tasks
• Seamless handoffs & services Innovation is a competition ground for
• Consistent experience across multiple channels Actively seek to buy from the most innovative
•
consumers; ENTITY will be held to the
companies standards of its competition
• Expect frequent innovations
Source: Salesforce Customer Expectations Research Report, Global Consumer and Business Buyers, 2017
355
Improving customer experience is key to increase ENTITY’s
Customers position in the emerging energy landscape
Quality of customer experience strongly drives brand reputation, customer loyalty and willingness to pay more.
Customers’ perception of experience strongly ENTITY has an opportunity to increase CSAT
impacts brand reputation, customer retention relative to industry peers, and can leverage Key takeaways
& perceived value for money cross-industry learnings
Various Impacts of Customer Satis- Improving ENTITY’s customer
faction1 Series1 Series2 Series3 Customer Satisfaction has increased YOY for 7 consecutive experience would strengthen
years for Residential Electric Utility Companies2 brand reputation, customer
90%
Key driver: Proactive communications primarily through loyalty and overall strategic
80% 77% digital channels2 position especially in the
% of customers
72% 74%
70% 70% emerging energy landscape in
67%
62% 61% 63% 61% 63% which customers will have
60% 57% other energy provider
50%
50%
ENTITY’s ENTITY Power ranking has decreased from 3rd to options, e.g., CCAs,
4th quartile from 2017 to 2018, driven by lower perceived residential solar, EV charging
40%
value for money. Proactive messaging to increase providers
30% perceived value would boost satisfaction, e.g., TOU rates,
20% infrastructure improvements.
10%
• Industry ranking: 112/138
0%
• West ranking: 11/12
1 2 3 4
Sources: (1) Salesforce Customer Expectations Research Report, Global Consumer and Business Buyers, 2017, (2) ENTITY Power 2018 Electric Utility Residential Customer Satisfaction Study
356
Perceived creativity, disruption and connection are key levers to
Customers enhancing brand value
Increasing brand value enables companies to develop a stronger, more sustainable strategic position.
E Tesla’s disruptive mission to Key takeaways

X
Strong brands enable businesses to : 1 “accelerate the world’s transition to
A
sustainable energy,” its launches and As California consumers value having more
• Charge a price premium and generate a higher sales M
P
initiatives to date have resonated options, and the energy landscape is fast
volume
Example
with consumers. It increased its
L evolving, ENTITY can further prioritize brand
• Attract and retain the best employees E brand value3 by 60% 2018 vs. 2017,
making it #8 on the top riser list of relevance by considering:
• Facilitate expansion into new products and markets most valuable brands4.
• An enabling governance and infrastructure
to drive innovation effectively, e.g., agile,
Key drivers of brand value2,3
matrix start-up team to drive an EV
Creativity Disruption Connection charging/smart city initiative with targets
distinct from regular business
Brands or their messaging Brands that are transforming Brands that are perceived by
perceived by consumers as industries with a highly consumers as having meaningful • To strengthen connections with customers,
unique and engaging customer-centric approach to connections with them, ENTITY’s positioning needs to be truly
product, service or go-to- especially through key channels impactful and well-aligned with its
market execution such as social media channel strategy, e.g., engaging with
Brands that consumers Brands that consumers Brands that consumers consumers on social media about ENTITY’s
perceived as creative grew their perceived as disruptive & perceived as connective, Future Leaders program
brand value by 69% over the 12 creative grew their brand value disruptive and creative grew
years of a study1 by 154% over the 12 years1 their brand value by 265%1
Sources: (1) “Increasing Brand Value,” Millward Brown, 2013, (2) “The challenger brands that embrace creativity get ahead,” Virgin.com, July 2018, (3) Brand valuation methodology as defined by Kantar Millward Brown (brand value is the product of
brand contribution (%) and financial value of business), (4) Brand Z Top 100 Most Valuable US Brands 2018, Millward Brown
357
New generations are seeking increased value through continuous
Customers product and experience innovation
Newer generations stress customizable and innovative products that are environmentally friendly, approved by peers, and
advertised through multiple channels, including social media. Brand loyalty is lower, driven by need for latest innovation.
Baby Boomers – Over 50 Millennials (Generation Y) – Driving Change Key takeaways
• Want quick fixes that require little change • Value choice, customization and speed
• Cost-savers but less price sensitive for quality products • Care a lot about the experience Each generation’s unique
• More information is better and want personal gratification needs are to be factored in
• Very image driven and care a lot about opinions of peers
• Want most up-to-date products and therefore are not very brand loyal while designing personalized
• Creative media and promotions capture their attention and seamless multi-channel
• Word-of-mouth and social media are very important for product reviews customer journeys
and research
As the younger generations
grow in influence and
purchasing power, delivering
against their higher
Generation X – 30 Something expectations will become
• Very price conscious – want to know about product features and Generation Z – Todays Teens….tommorrow’s customers more critical in the emerging
their importance energy landscape
• Want products to help with tasks and lifestyles • Much harder to gain their brand loyalty
• Want plenty of access to information • Value online ordering and quick delivery – instant gratification
• Will be brand loyal if they trust the brand • Beyond customization of products, they want to co-create the product/service
• Greater purchasing power and influence on parents
• Value realness, authenticity, and opinions of peers
• Highly value environmentally friendly products and seek to change the world
• Television and social media and best ways to reach them
Source: EY analysis
358
Gen Z’s higher expectations are an early indicator of high
Customers expectations among the entire customer base
EY research found that there are 3 aspects to effectively serving Gen Z
Key takeaways
consumers
Gen Z expectations are being fast adopted by other
generations and are an insight into how customer
Provide an Allow Build expectations will change in the future. To deliver a
Intuitive experience Control Trust customer experience that meets these expectations,
new approaches:
Gen Z expects quick, easy and Gen Z highly values customization Gen Z values realness and
efficient interactions, with no in their shopping experiences authenticity. They want to hear • The demand for intuitive experiences requires
excuses accepted for hassles • 48% would most like to see shopping brands share about both good and ENTITY to consider agile approaches to
Gen Z has an 8 second attention experiences that allow them to bad news understanding and responding to customer needs
customize products for themselves2
span vs. millennials’ 12 seconds, Gen Z also highly values corporate e.g., processes to respond to consumer needs as and
making effective interactions even They want to actively engage in social responsibility, valuing
more important dialogues with brands, esp. on brands/companies that champion
when they arise
social media positive social change
They expect ENTITY to know them, • Data & technology systems, channels and
anticipate their needs and cater to • ENTITY’s Future Leaders program
marketing will need to be integrated to provide an
them before they’ve thought of it and volunteering efforts are good
examples of these types of initiatives experience in line with market/ customer (i.e. NBA)
• Products & services that enable consumers to take
further control of their energy usage will become
Gen Z has the highest rate of Taco Bell’s app allows highly Uber’s share of rides dropped from more important to consumers
membership for ENTITY vs. other customizable mobile orders – post- 90% to 75%6 over the 2 yrs. since
ages3,4. Its optimized launch, average mobile orders were scandals surfaced in 2015. However, • The reputation of ENERGY COMPANY A / ENTITY
recommendation algorithm and user 20% higher than in-store.5.This revenues grew 15%7 in the months
interface across platforms provides a customization is highly valued with following leadership change in 2017 will increasingly be under scrutiny by consumers
seamless, intuitive experience its main customer base, Gen Z who want to align themselves to ethical and trusted
organizations
Sources: (1) “How Gen Z is Shaping the Future,” EY Research, January 2017, (2) “What do Gen Z shoppers really want?”, NRF, March 2018, (3) “Gen Z hates TV,” Forbes, May 2017 (4) ENTITY members USA by age group, Statista, 2017 (5) “Mobile Apps Boost
Sales at Starbucks, TB, Domino’s,” Eater.com, June 2016, (6) “Uber lost market share to Lyft during crisis,” USA Today, June 2017, (7) “Uber’s US sales have recovered,” Recode.net, November 2017
359
New technologies and rising expectations are shifting what
Customers customers believe a utility should provide
New technologies and customer Rising customer expectations shaped Key takeaways
engagement … by…
Utilities will be increasingly
compared to other product /
service providers that customers
consider leading edge, leaving the
energy landscape open to more
disruption from alternative
providers
• To effectively move to the role
of an energy advisor, a
disruptive mindset and
To an energy advisory
customer-centric culture, an
Prosumer innovation-enabling
Customer engagement
producer + consumer organizational structure, as

From a commodity provider Conservator • New energy solutions and well as innovation-driving KPIs
programs that encourage will drive success
• Real-time consumption data (i.e., customers to contribute back to
Rate payer via smart metering initiative) the grid
• Energy efficiency awareness and
• Rising customer energy needs
conservation incentives
• Limited visibility into energy usage
Customer expectations
360
About a quarter of ENTITY customers are 55+ years today, growing
Customers at a steady but gradual 1%
Key takeaways
Age of household: ENTITY vs Orange County vs California vs United States
A multi-channel approach for CIS and
34% ENTITY comms is ideal given that about a quarter
35%
33% 33% of ENTITY customers are 55 years + today,
Orange
CA and the age group shows lower usage of
30% digital self-service options2, while the
US
younger age groups are significantly higher
25% 23% users
23%
21%
As 29% of San Diegans are in the 25 – 44
Percent of customers
20%
20% year range, which shows the highest usage
15% 13%
of disruptor brands3, an innovation
13% 15% 13% 14%
15% 14% 14% 14% 14% 12% strategy and infrastructure is key
13% 13% 13%
12% 12% In the next 8 years, ~23% of San Diegans
10% (Gen Zers) will be in the age range of
purchasing their first homes4, and will be
5% ENTITY account holders, the importance of
having a seamless omni-channel
1% experience for that ENTITY customer base
0%
Under 25 25 - 34 35 - 44 45 - 54 55 - 64 65+ becomes more important
Age of household segment
Note: ENTITY’s service area spans across ENTITY County and some of Orange County, ENTITY data based on data pulled from CIS
Sources: (1) U.S. Census Bureau - 2016 Estimate, 2010 Census, (2) Ask PYMNTS Self-Service Retail Study, July 2018, (3) “Disruption Uncovered,“ Brand Quarterly,
February 2018, (4) LA Times, “Why California stinks for first-time home buyers,” March 2017 and U.S. Census Bureau 2016 Estimate
361
There is a slight decline in owner-occupied households in the
Customers ENTITY service area, and across the country overall
Owner vs renter: ENTITY vs Orange County vs Household size: ENTITY vs Orange County Key takeaways
California vs United States vs California vs United States
ENTITY ENTITY The decline in owner-occupied
Orange Orange households and the slight
CA CA decline in household size in the
64% 2.8 ENTITY service areas reflects a
65% US 2.8 US
2.6
2.5
shift in product / service
60% 57% 2.6
54% 2.3 opportunities for ENTITY,
55% 2.4
51% especially when planning the
50% 48% 2.2
46% messaging strategy and
2.0
# of people per household

45% 43% innovation pipeline (e.g.,
1.8
% of households
40% 36% renters would be better

1.6
35% targeted with smart home
1.4
30% products rather than
1.2
25% residential energy storage)
1.0
20% 0.8
15% 0.6
10% 0.4
5% 0.2
0% 0.0
Owner-Occupied Renter-Occupied Average household size
Legend: Growth (change in % pts.) for 2016 vs. 2010 are within bar graph
Source: U.S. Census Bureau - 2016 Estimate, 2010 Census
362
The ENTITY service areas have a higher percentage of households
Customers with $100K + income than the U.S.
Key takeaways
Household income: ENTITY vs Orange County vs California vs United States
At least a third of ENTITY
ENTITY There has been a +3% growth in the $150K + service area households are
household group across ENTITY service areas, $100k + / high income
Orange California and the U.S.
CA households (30% higher than
35%
US 32% ENTITY has seen growth in both the $100 - $150K national mean), and these
29% 29%
30% and $150K + household income groups income groups are forecasted
30%
to continue rising
25% 23% 74% of high income
22%
% of Households
21% 21% households (defined as +20%

20% 19%
20%
18% 18% 18% vs. national mean)2 are users of
17%
15% 16% disruptor brands, highlighting
15% 14% 15%
14% the importance of addressing
11% innovation strategy and brand
10% communications
5% Opportunity to engage in
products and services for
0% those customers with higher
Less than $25k $25k - $50k $50k - $100k $100k - $150k $150k + disposable income
Household income
Legend: Growth (change in % pts.) for 2016 vs. 2010 are within bar graph; *2010 Census numbers reflected
Sources: U.S. Census Bureau - 2016 Estimate, 2010 Census, (2) “Disruption Uncovered,“ Brand Quarterly, February 2018 and EY analysis
363
ENTITY customer growth is expected to remain flat, while
Customers transactions and customer contact continue to rise
1 2
Current and forecasted customer base: 2015 – 2021 Current snapshot of existing customers
Actual Customers
Forecasted customers
CAGR
1.3M total customers
Contacts /customers
CAGR
+1%
+1%
1.39M 1.40M 1.2M Residential 75K Commercial
1.34M 1.35M 1.36M 1.37M
1.33M
3.1
Residential
2.9 1.4M Accounts 173K Accounts
2.7
Contacts / customer
Total customers
~1.16 accounts ~2.28 accounts

1.25M 1.25M 1.26M 1.27M 1.29M 1.30M 1.31M per customer per customer
3.9M total contacts and transactions3

Commercial
0.07M 0.08M 0.08M 0.08M 0.08M 0.08M 0.08M
~3 contacts / customer per year
Agriculture &
2
Lighting Note: Represents all billable customers; account count is based on those with
2015 2016 2017 2018 2019 2020 2021 electric only, gas only, and both service types
1 3
Customers forecasted based on ratio of customer base to active electric meters, agriculture and lighting count based on active meters; 2018 Excludes billing and payment, based on 2017 actuals. Includes select transactions across
customer contact forecasted by on actual YTD and historical averages, excludes payment contact center, web & mobile, IVR, Email, and chat. Transaction types include billing,
credit, start/stop/move outages, and other miscellaneous transactions
Source: ENTITY Market Intelligence, Insights & Analytics, ENTITY Customer Care, EY Analysis
364
ENTITY currently has 1.2M residential customers that hold over
Customers 1.3M accounts
360 view of the customer Residential customer segmentation
Unscored Energy Elites

~1.2M $140 avg • Do not have 12 months of • Affluent
residential ENTITY bill consumption data • High solar adoption
customers • Tech Savvy
• Early Adopters
20% 13% Skeptical Solution-

~1.4M $1.9B total
annual
seekers
accounts
revenue 12% • Frustrated
• Highest bills
• Have done everything they can to
Mature & Mindful work closely w/ ENTITY
• Older homeowners
Rent vs own by customer account • Older homes 21% 15%
• Environmentally concerned
• Interested in TOU Connected Coastal
Own 19% • Young
• Coastal
42% single 64% single family • Environmental Concerned
family homes homes • Want to work closely w/ ENTITY
48% 51% Budget constrained & disengaged • Interested in TOU
• Lower Bills • Lowest Bills
58 % multi- 36% multi-family • Lower Income
family homes homes • Not interested in TOW
• Cannot shift usage
Rent • Uninterested in working w/ ENTITY
365
60% of ENTITY’s residential base has been a customer for over 10
Customers years
ENTITY Residential customer tenure distribution
60% of residential customers

Additional opportunity exists to value and appreciate loyal
514K
customers as they are service through areas such as
• Billing and payment: Increased flexibility and leniency
toward late / missed payments
• Service orders: white glove experience with proactive 1-
1 calls and follow-ups, and scheduling tailored towards
Number of customers
a customer’s availability
• Products and services: offers that are tailored to
customers based on available customer data and history
43%
210K
191K
171K
71K 17% 16%

14%
44K
6% 6K
1% 4%
0-1 years 1-5 years 5-10 years 10-25 years 25-50 years 50+ Unknown
Note: includes all ENTITY customer / account types Number of years as a customer
Source: ENTITY Market Intelligence, Insights & Analytics, EY Analysis
366
Small and medium business customers make up 85% of ENTITY
Customers existing commercial base
360 view of the customer Commercial account distribution by sub-segment
~75K $1.2K avg 133K
commercial Of the 153K commercial accounts,
Number of accounts
ENTITY bill
customers approximately 85% are small business
accounts (<20 kw)
~173K $2.4B total

accounts annual
6K 12K 7K
revenue 1K
Uncategorized Large Medium Small SMD*
* Indicates new ATOU implemented in July
Commercial account segment 2018, accounts between 20 and 40kW
Assigned accounts by top 5 industry types (NAICS) Unassigned accounts by top 5 industry types (NAICS)
29K
Public sector (government, 22K

water/sewage, utilities, schools) Total unassigned
Number of accounts
Total assigned ~123K
Number of accounts
represent over half of assigned accounts ~30K accounts
accounts
10K
9K 8K
7K 6K 5K 5K
3K 2K 2K 1K 1K
Govt Comms Utilities Water/Sewage K-12/Libraries Property Miscellaneous Miscellaneous Property Non-food Restaurants Healthcare Construction General
Management Services Mgmt retail Manufacturing
NAICS category NAICS category
367
Over 60% of commercial customers have been customers for over
Customers 10 years
1
ENTITY commercial customer tenure distribution ENTITY commercial customer tenure distribution by NAICS industry tag
<1 yr 1 to 5 yrs 5 to 10 yrs 10 to 25 yrs 25 to 50 yrs > 50 yrs

Over 60% of commercials customers have been with
ENTITY for over 10 years Growers <1% 7% 7% 36% 24% 26%
20K General Manufacturing 2% 16% 11% 34% 21% 16%
Groceries 2% 14% 13% 39% 20% 12%
Water/Sewage <1% 9% 18% 36% 15% 20%

Number of customers
Residential 2% 20% 9% 43% 17% 7%
Wholesale/Warehousing <1% 15% 14% 39% 17% 12%
Recreation/Entertainment 7% 32% 15% 25% 9% 11%

10K
Sand & Gravel/Contractors 2% 17% 15% 38% 14% 13%
8K 8K
7K Non-food Retail 2% 16% 17% 37% 15% 13%
Healthcare 2% 19% 17% 37% 12% 13%
Property Management/Offices <1% 15% 12% 39% 15% 18%

3K
Restaurants 5% 26% 17% 34% 10% 9%
Miscellaneous Services <1% 12% 14% 38% 14% 21%
<1yr 1 to 5 yrs 5 to 10 yrs 10 to 25 yrs 25 to 50 yrs > 50 yrs Not Coded 30% 30% 10% 22% 6%
Customer tenure segment % of customers in tenure segment
Note: given complexity of tracking industry and tenure, data should be treated as a directional snapshot of existing customer base 1
Excludes the following segments due to low counts: Cable/utilities, military, Government,
Source: ENTITY Market Intelligence, Insights & Analytics, EY Analysis Communications, Manufacturing, Education, and Lodging
368
Customer moves in ENTITY’s territory yield additional opportunity
Customers to engage customers and build value
Number of move requests by channel: 2016 – 2018 Forecast

Move requests provide an additional customer touchpoint with about
a third (~35%) of customer base (based on number of move requests)
497K 504K
ESS Agent
481K
IVR
Web & Mobile
Total Requests
+26%
490K
Estimated moves annually based on
340K transaction volume
328K 323K
Number of move requests
141K 153K ~30%

Estimated percent of move transactions that
112K
will be completed through a digital channel in
2018 (up 23% from 2016 and growing)
29K 28K 28K
2016 2017 2018 EY Forecast*

*
Contact and transactions forecasted by actual YTD and historical averages Source: ENTITY Customer Care, EY Analysis
369
Channels
Approximately 45% of existing customer contacts and transactions
Channels are through digital channels today
Historical and forecast customer contacts and transactions Existing breakdown of customer transactions
through existing channels: (2015 – 2018 YTD)* through existing channels: 2015 – 2018 YTD
100%
+6%
4.5M 4.2M 90%
Customer contacts and transactions
CAGR
4.0M 3.9M 36% ESS Calls
80% 2%
3.6M 3.6M
3.5M 1.5M 3.2M 70% <1%
1.6M ESS Calls
3.0M
% of transactions
1.5M IVR 60%
1.6M 1.1M 19% IVR
2.5M Web & Mobile 50%
0.8M 22%
2.0M 0.8M Email 40%
0.8M 0.6M
1.5M 0.8M Chat 30%
Customers*** 43% Web & Mobile
1.0M 1.8M 20% 31%
1.2M 1.4M 1.4M Email
0.5M 1.1M 10%
Chat
0.0M 0%
2015 2016 2017 2018 EY 2018 YTD 2015 2016 2017 2018 YTD
Forecast**
Approximately 45% of existing customer contact today is through digital
Total number of customers are to increase on average, about 1% each year. Despite channels (Including web, mobile, email, and chat). Digital channels (web,
flat customer growth, overall transactions by are expected to grow 6% (CAGR) mobile, and chat) are increasingly becoming a greater proportion of all
through 2018 customer transactions
*Excludes payments
**Forecasted based on 2018 YTD and historical averages for each channel
***Customers forecasted based on ratio of customer base to active electric meters, agriculture and lighting count based on active Source: ENTITY Customer Care, Public Testimony, ENTITY Customer Forecasts, EY Analysis
meters; 2018 customer contact forecasted by on actual YTD and historical averages
371
Almost half of all call center (ESS) calls are related billing and
Channels credit, with volume increasing slightly YoY
Contact Center Energy Service Specialists Contact Center Energy Service Specialists (ESS): Historical and YTD call types answered by agents
(ESS): Historical and YTD call value
ASO 3% 2%
+4% -3% Billing 13% 14% 15% Billing and credit calls, as well as

calls related to high-bills,
1.55M
1.49M 1.50M continue to make up an
increasingly larger portion of all
30% 30% 29% ESS calls
Credit
1.12M
Calls handled
Default 15% 16% 17%

Emergency 7% The proportion of move calls,
6% 6% while decreasing thanks to an
High Bill 3% increase in digital requests, still
Move make up almost a quarter of all
Other 23% 21% 22% ESS calls
Outage
Solar / EV 6% 6% 4% 2%
2016 2017 2018 EY 2018 YTD 2016 2017 2018 YTD
Forecast*
*Forecasted based on 2018 YTD and historical averages for each channel Source: ENTITY Customer Care, Public Testimony, ENTITY Customer Forecasts, EY Analysis
372
Contact center KPIs show variability by month, but generally
Channels remain within bottom quartile of utilities
Average handling time (AHT), seconds, 2016 – 2018 YTD ESS Average speed of answer (ASA), seconds, 2016 – 2018 YTD
ENTITY AHT target Top quartile ENTITY ASA target Top quartile
AHT in seconds Bottom quartile ASA in seconds Bottom quartile
500 1,200
+3% 413
400 1,000
390
AHT in seconds
-37%
ASA in seconds
352 800
300
600
200
214 400 329
100 200 200
43
0 0 12
Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18
ESS Level of service (% calls answered within 60 seconds), 2016 – 2018 YTD Call abandonment rate, %, 2016 – 2018 YTD
ENTITY ESS LOS target Top quartile
ESS LOS in % Abandonment rate in % Bottom quartile
80% 50%
70% -19%
Level of service (%)
60% 40%
% calls abandoned
60% -30%
50% 30%
40%
20% 17%
30% 20%
20%
10% 5%
10%
3%
0% 0%
Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18
Note: 25th and 75th percentiles derived from a sample set of various U.S. utilities; ENTITY has no internal target for call abandonment rates Source: ENTITY Customer Care, Public Testimony, ENTITY Customer Forecasts, EY Analysis
373
Seasonality tends to drive contacts and transactions, impacting call
Channels center operations
Historical average monthly temperature vs ESS Calls Handled: Historical average monthly temperature vs ASA:
During such fluctuations in
2016 – 2018 YTD 2016 – 2018 YTD temperature, an opportunity
Avg Monthly Temp Avg Monthly Temp exists to drive as many customer
Calls Handled ASA
140K 80°F 1,200 80°F transactions through more self-
U.S. utility average sufficient digital channels to limit
Monthly Temperate
Monthly Temperate
135K 75°F 1,000 75°F impact on call center hold times
Calls handled
ASA (seconds)
and handle times
130K 70°F 800 70°F
125K 65°F 600 65°F Temperature and call volume are

120K 60°F 400 60°F correlated – where one degree
increase in average monthly
115K 55°F 200 55°F temperate results in additional
~800 handled calls per month 1
110K 50°F 0 50°F
J F MAM J J A S O N D J F MAM J J A S O N D J F MAM J J A S J F MAM J J A S O N D J F MAM J J A S O N D J F MAM J J A S
2016 2017 2018 2016 2017 2018 ASA is also impacted by
ESS Level of service (% calls answered within 60 seconds): 2016 – 2018 YTD temperature with a one degree
increase in average monthly
Avg Monthly Temp temperature impacting ASA by
80% 80°F
Monthly Temperate
70% LOS 75°F ~101
Level of service
60% 70°F
50% Level of service tends to drop
65°F
40% during temperature extremes,
30% 60°F
but rises toward company target
20% 55°F (60%) around February
10% 50°F
J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S
Based on regression analysis of rolling 12-month of data
1
2016 2017 2018
Data represents 2-month moving average Source: ENTITY Customer Care, Customer Services, KPI Report, NOAA Weather
374
Throughout 2016 – 2018, 90% of all IVR transactions were related
Channels to billing and credit
Interactive Voice Response (IVR): Historical and Interactive Voice Response (IVR): Historical and YTD self-service transactions by type
YTD self-service transaction volume
+2% ASO Customer transactions across the

-1%
IVR have historically been related
839K 828K

820K to billing and credit. As new IVR
platforms and enhancements
considered, such usage and
functionality data should be
628K 73%
considered
Billing 73% 74%
Self-service transactions
Proportion of transactions related

to outage have declined since
2016 likely due to an increase of
customers enrolled in
Credit notifications and mobile app
Move 15% 14% 16% usage
Other 4% 3% 3%
2% 2% 3%
Outage 7% 6% 5%
2016 2017 2018 EY 2018 YTD 2016 2017 2018
Forecast*
375
ENTITY customers are using mobile & web to manage their energy
Channels goals, alerts & notifications
Web & Mobile: Historical and YTD Web & Mobile: Historical and YTD self-service transactions by type
self-service transaction volume
+24%

As time of use plans become
1.77M more widespread across the
48% 44%
customer base, transactions
+23% Account Management 54% related to managing goals and
1.42M 1.43M alerts (e.g. energy usage) and
customer rates, have become a
Self-service transactions
larger portion of all reported

1.16M 6% digital transactions
ASO 7%
Credit 7%
Goals & Alerts 28%
23%
Move 14%
Outage
Paperless Registration 10% 10% 9%
Rate management 6% 5% 5%
Letter credit residency 7% 6% 6%
2016 2017 2018 EY 2018 YTD 2016 2017 2018
Forecast*
376
Customers are increasingly using mobile to contact and transact
Channels with their utility
Customer contacts with utilities Most common reasons customers engage

Channel usage and first contact resolution with their utility
(FCR) Channel usage by billing and outages contact type
65% FCR (Across U.S. Utilities) 67% (Across U.S. Utilities)
58% FCR
11%
% resolved on first contact
49% FCR Billing

40% FCR 43% Outages
Of utility executives have
26%
high confidence in their
38% 23%
mobile applications 20%
21% 8% 15%
8% 8% 8%
Contact Center Website Mobile Web App

32% Contact Website Mobile Web App
Center
% of communication that starts in channel
Customers are engaging in different channels
Mobile remains a challenge for utilities, as 51% of mobile web users and Of customer opinions on depending on their initial reason for contact.
utilities’ mobile apps are
60% of app users fail to complete their task on their first attempt Providers that are increasing the amount of online
favorable
mobile information (web, apps) see a reduction in
Overall, slightly less than half of customer succeed on the first attempt in
calls and an increase in customer satisfaction
their channel of choice
Source: Foresee Insights, Navigant Research
377
While ENTITY’s mobile app continues to see increase in adoption
Channels and usage, the current experience lags peers
Cumulative mobile app downloads: 2014 – 2018 YTD Active Users: 2016 – 2018 YTD Mobile app comparison: U.S. Utilities
ENTITY’s mobile app has been Utility Name Store Rating Reviews
downloaded ~300K times +51K 50K +112%
Cumulative App Downloads
since its launch in 2014 +76K 45K Florida Power & Light Co 4.66 403
291K Total
40K DTE Electric Company 4.63 17,527
Number of MAUs
+54K 240K 35K
iOS Pacific Gas & Electric Co 4.29 12,828
30K
+55K 164K 25K PacifiCorp 4.03 102
20K Ameren Illinois Company 3.97 230
110K
15K Commonwealth Edison Co 3.94 2,973
55K 10K
Entergy 3.86 1,225
5K Android
0K Nevada Power Co 3.48 397
2014 2015 2016 2017 2018 YTD Jan-16 Jan-17 Jan-18 Jan-19 Ohio Edison Co 3.44 9
Georgia Power Co 3.39 478
Mobile App Activity (views by activity type): 2017 – 2018 YTD Salt River Project 3.31 75
180K Consolidated Edison Co-NY Inc 2.95 766
Approximately 60% of ENTITY mobile app activity is focused on viewing / paying bill
160K ENTITY Inc 2.83 380
140K Jersey Central Power & Lt Co 2.81 16
Number of uses
120K
Los Angeles Department of
100K 2.67 54
Water & Power
Bill Pay
80K West Penn Power Company 2.6 10
Outage Map
60K ENTITY Co 2.5 504
My Energy
40K Southern California Edison Co 2.4 819
Get Bill Alerts
20K Settings Arizona Public Service Co 2.31 261
0K Alabama Power Co 2.28 259
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
2017 2018 Source: Javelin Strategy & Research, Foresee Insights, EY Analysis, ENTITY Public Testimony
378
Increases in self-service and online account engagement have
Channels reduced cost to serve
1
Self-service rate, all channels: Jan 2017 – August 2018 Cost to serve, cost per call and in-person branch transaction:
100%
Jan 2017 – August 2018
90%
% of transactions
80% Leading Practice2 75% $9.5

70% Actual 64% $9.0
$8.5 Utility average cost per call3 $8.0
60%
Target 60% $8.0
58%
50% $7.5
40% $7.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug $6.5
2017 2018
3
Leading practice utility cost per call $6.0
$6.0
Cost, US dollars
My Account Adoption: Jan 2017 – August 2018 100% $5.5 $5.0 Cost per call
100% $4.8
$5.0
3
Leading Practice
90% $4.5
$4.0
80%
Adoption rate %
$3.5
My Account
70% Target:63%
(Residential) 65% $3.0
(Residential) $2.4 $2.2
60% $2.5
61% $2.0 Cost per in-person transaction
50% My Account 54%
50% $1.5
(Commercial)
40% $1.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
2017 2018
1
Self-service rate includes key transactions through non-digital channels, excludes payments
2
Based on 75th percentile of web self-service rates for utilities in the U.S
3
Based on leading practice of industry and cross industry peers Source: ENTITY Power 2018 Residential Study, Contact Babel, ENTITY Customer Services KPI Report, EY
analysis
379
E-bill adoption continues to grow and outpace peers, although
Channels adoption lags other industries
Breakdown of bills sent by format in the US: 2013 & 2016 E-Bill enrollment by industry, U.S: 2016
62% Cell phone providers lead
+32%
the way with enrollment
2013 +23%
+19% rates typically 30% higher
2016
Adoption rate
41% than utilities
% of bills
28%
17% 17% -13%

14% 12%
9%
Bills paid with no bill sent Bills sent electronically Bills sent in both paper and Paper bills sent in the mail Cellphone Financial Internet Utilities Insurance
only (e-bills) electronic form (e-bills) Provider Services Provider
ENTITY Paperless adoption: Jan 2017 – August 2018

100%
Cross-sector leading practice1 100%
90% 1 90% An estimated 7M annual bills were suppressed in 2016 due
Utility leading practice
to e-bill adoption. This resulted in over $3M in annual
Adoption rate (%)
80%
savings of postage and stationery costs alone. Given
70% adoption rates and accounts billed, EY estimates 2017
Target 56% 2
60% savings are around $3.8M.
50% Paperless adoption % 54%
50% Reaching 100% adoption could save over $7.5M annually in
40% postage and stationary costs alone
2
1
Utility average 40%
30%
J-17 F-17 M-17 A-17 M-17 J-17 J-17 A-17 S-17 O-17 N-17 D-17 J-18 F-18 M-18 A-18 M-18 J-18 J-18 A-18
1
Based on leading practice of industry and cross industry peers
2
Assuming bills suppressed based on paperless adoption rate, postage costs of $.40 and stationary costs of $.04 Source: ENTITY Customer Services KPI Report, Contact Babel, Chartwell, EY analysis
380
Customers are increasingly opting for more convenient, cheaper
Channels self-service payment options
ENTITY Payments Received: Jan 2016 – August 2018
1.4M 1.4M 1.4M 1.4M
1.3M 1.3M 1.3M 1.3M 1.3M 1.3M 1.3M
1.3M 1.3M 1.3M 1.2M 1.2M 1.3M 1.2M 1.2M 1.2M 1.3M 1.3M 1.3M
1.2M 1.2M 1.2M 1.2M
24% 23%
1.2M 1.2M 1.2M 1.2M 21%
23% 1.1M 22% 21% 21% 21% 21%
24% 24% 25% 23% 23% 23% 22% 24%
21% 23% 23% 22% 22%
Mail 24% 24% 23% 24% 22% 21% 21% 20% 21% 6%
23% 6%
Payments Received
6%
7%
In-person
74%
69% 69% 69% 69% 71% 69% 70%
70% 71% 71% 71% 72% 70% 72% 71% 71% 71% 72% 72% 73% 73% 73% 73% 73% 73% 74% 74% 74%
71% 73% 71%
Self service
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
2016 2017 2018
ENTITY Self-service payment % by channel: Jan 2016 – August 2018

100%
% of self-service payments by channel
Home Banking
90%
30% 26% Payment made through online banking In addition to being a
80%
MyAccount cheaper channel to accept
70%
Checking account payment made through online portal payments from, ENTITY
60% Power research shows that
50%
56% customers are most
52%
40%
Direct satisfied with a utility's
30% Checking account payment with no MyAccount access billing and payment options
20% 7% Credit / Debit Card when paying through the
9% BillMatrix payments via credit or debit card
10% 5% 7% utility’s website
4% Other
0% 3% IVR, Direct wire transfers, EDI payments
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
2016 2017 2018
Source: ENTITY Payment Remittance, ENTITY Power 2018 Residential Utility Study, ENTITY Customer Services KPI Report, EY analysis
381
Brand & reputation
Since 2013, customer service among utilities has been improving,
Brand & rep although still lags other industries
Customer service has been improving ….yet still lags others …that are driving new customer
across utilities… industries… experiences
Median ENTITY Power Score: Utilities ACSI, Customer Satisfaction Index: Company Customer Experience
U.S. Economic Sector Satisfaction
+18% AI-driven chatbots provide

Manufacturing 81 immediate service resolution
761 Retail Trade 78
705 Accommodation &
663 678 78 Seamless mobile app allows for
645 Food Services
personalized orders and reduces
Finance & Insurance 77 wait times
Transportation 77
Health Care 76 Priority customers receive
immediate access to agents for to
Energy Utilities 75 faster call resolution
Telecommunications &
Information
72
Integrated booking platform leads
Government 71 to an enhanced booking and travel
experience
Utilities were found to have the lowest Customer Effort
Scores along with the Media industry in a cross-industry study. Preference algorithm provides
Banking & Finance had the highest scores, above Insurance and customized entertainment
Home Emergency industries recommendations
2013 2014 2015 2016 2017
Note: Customer Effort Score measures how much effort customers put into interactions with company
Source: ACSI Customer Service Index, ENTITY Power Electric Utility Study, Future Thinking Services Benchmarking Study. EY analysis
383
ENTITY’s overall service quality score, as measured quarterly, has
Brand & rep continued to fall over the last year
ENTITY’s Overall Service Quality Index, Quarterly: 2015 – 2018 YTD ENTITY’s Overall Service Quality Index, Annual: 2014 – 2018 YTD
Score 65%
65% Min 65%
Target 63%
62%
Max
61% 61%
60% 59% 59% 59% 60% 59% 61%
Index score, %
Index score, %
60%
57% 58% 58% 58% 60% 58% 58%
58%
57% 57%
55% 55%
54%
53% 53%
50% 50%
Q2 ’15 Q3 ’15 Q4 ’15 Q1 ’16 Q2 ’16 Q3 ’16 Q4 ’16 Q1 ’17 Q2 ’17 Q3 ’17 Q4 ’17 Q1 ’18 Q2 ’18 2014 2015 2016 2017 2018 YTD
Significant YTD decreases for residential contact center and field service operations have contributed to CCS index decline. For ESS agents, showing
respect for a customer's time and talking in terms the customer understands are primary priorities for improvement. For field operations, improvements
to the appointment window is the main area for improvement. Other index scores, including IVR self-service, my account online, and the service order
team, have remained relatively constant
ENTITY’s quality score index (customer connections survey) is a transactional survey that provides a weighted index that factors service quality ‘excellence’ as well as customers concern for each customer service transaction. It is conducted
quarterly by market research firm Kantar TNS
Source: Kantar TNS
384
Across all categories, ENTITY residential customer satisfaction has
Brand & rep fallen to 4th quartile
ENTITY’s Overall Residential Electric CS Power, Quality & Reliability Billing & Payment Price
ENTITY Residential
ENTITY Residential
ENTITY Residential
Ranking, Utilities
Ranking, Utilities
Ranking, Utilities
Ranking Across Utility Industry, ENTITY 46
56 60
Power 85
72 71
85
71 77
97 102 104
113 122
133
62
67
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
91 88
Corporate Citizenship Communications Customer Service
ENTITY Residential
ENTITY Residential
ENTITY Residential
Ranking, Utilities
Ranking, Utilities
Ranking, Utilities
112
62 67 66 22
78 81 72 78 77 26
44 50
100 94
63
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
ENTITY Residential Electric Customer Satisfaction: ENTITY

SDG&E Customer satisfaction has been regarded at or behind industry
Power peers; however, customers remain satisfied with the customer
ENTITY Power Index
Industry
+8% +4% service they receive from ENTITY when compared to rest of industry
1,000
Score
761 770 769 783 787 780

800 699 720 651 672 The impact of new TOU rates have been the primary drivers for the
606
654 639 662
600 fallen satisfaction. As such, price and corporate citizenship remain
the biggest gap for ENTITY when compared to the rest of the
400
Overall PQ&R Billing & Price Corporate Communications Customer industry
Payment Citizenship Service Source: ENTITY Power 2018 Residential Utility Study
385
Among business customers, overall satisfaction has slightly improved
Brand & rep over the last year
ENTITY’s Overall Business Electric CS Power, Quality & Reliability Billing & Payment Price
Ranking Across Utility Industry, ENTITY
Ranking, Utilities
Ranking, Utilities
Ranking, Utilities
ENTITY Business
ENTITY Business
ENTITY Business
42 45
Power 47
57
62 65 64 59
71 68 71
47 75 81 81
83
52 54
67
2014 2015 2016 2016CY 2017 2014 2015 2016 2016CY 2017 2014 2015 2016 2016CY 2017
78
Corporate Citizenship Communications Customer Service
Ranking, Utilities
Ranking, Utilities
Ranking, Utilities
ENTITY Business
ENTITY Business
ENTITY Business
46 42 38 41 38 48
52 51
65 69
48 39 36
56
63
2014 2015 2016 2016CY 2017 2014 2015 2016 2016CY 2017 2014 2015 2016 2016CY 2017 2014 2015 2016 2016CY 2017
ENTITY Business Electric Customer Satisfaction: ENTITY Power

SDG&E
+3%
ENTITY Power Index
Industry Although customer satisfaction has declined among business

+4%
1,000 customers in previous years, there has been an uptick in satisfaction
775 801 787 805 797 806 over the last year
Score
800 748 765 692 722 721 727 734 741

600 Price and PQ&R satisfaction remain the biggest gap among ENTITY
400 business customers when compared to industry peer performance
Overall PQ&R Billing & Price Corporate Communications Customer
Payment Citizenship Service Source: ENTITY Power 2018 Residential Utility Study
386
ENTITY’s NPS, like other utilities, lags other cross industry retailers
Brand & rep and service providers
Customer measures are evolving across industries Net promoter scores (NPS) of key U.S. industries and leading practice examples
Organizations agree there is no single measure that addresses all On a scale of 0-10, how likely would you be to recommend [Brand] to a friend or colleague? 1 2 3 4 5 6 7 8 9 10
attributes that drive customer profitability Detractor Passive Promoter
NPS Score % promoters - % detractors = NPS (net promoter score)
Department Stores 62
Higher predictive power for Tablet Computers 56 Nordstrom has consistently
increased spending / purchasing
Investments 50 high NPS scores with its
Online Entertainment 47 exceptional customer service
Online Shopping and generous return policy
45
Customer Satisfaction Airlines 44
Score (CSAT) Smartphones 44
Measure of short-term happiness Auto Insurance 43 Southwest’s customer service strategy
Laptop Computers 42 starts with its employees. The company
Typical utility focus today Hotel 40 makes significant investments to keep
employees happy with strong support
Grocery Stores 40 and perks / benefits
Credit Cards 39
Net Promoter Score Home Insurance 38
(NPS)
Cell Phone Providers 37 Ally financial is online bank that is known for
Measure of long term happiness, Banking 35 its exceptional customer service across its
strongly correlated to company growth Software & Apps 31 digital (web, mobile) and traditional (i.e.
phone) channels
Life Insurance 30
Pharmacies 28
Customer Effort Score Travel Sites 23
(CES) Health Insurance 13 ENTITY sets the gold standard across utilities when
Utilities 4 it comes to engaging customers through a wide
Measures how much effort a customer Cable / Satellite TV 1 array of value added products and services
puts in an interaction
Internet Service -1
ENTITY* -12
*Utility and ENTITY NPS score based on 2018 ENTITY Power residential electric customer
Source: NICE Satmetrix 2018 U.S Consumer Net promoted Benchmark Study, ENTITY Powersurvey 2018 Residential Electric Satisfaction, Market Strategies International
387
Customer perception of ENTITY brand attributes are slightly more
Brand & rep negative compared to peer utilities
Change vs 2017 Image semantic differentials (Top 2 box analysis): ENTITY

West Utilities
43%
36%
33%
28%
25%
Top 2 score, %
22% 23%
20%
Flexible (vs Rigid) Enviornmentally Innovative (vs Customer- Friendly (vs Rude) Affordable (vs Trustworthy (vs Good Reputation
Responsible (vs conventional) focused (vs Expensive) Untrustworthy) (vs Bad)
unconcerned) Bottom-line)
Note: based on residential electric customers surveyed
Top-2 box analysis indicates the percentage of customers that selected the ‘top two’ categories of the rating scale (i.e. strongly agree & somewhat agree) Source: ENTITY Power 2018 Residential Utility Satisfaction Study
388
Email remains a cheap, yet effective form of medium for marketing
Brand & rep communications
Residential Marketing Email Benchmarks Commercial Marketing Email Benchmarks
35% SDG&E 31% SDG&E

National Average for Utilities 26% National Average for Utilities
26%
Rate %
Rate %
12% 12%
9% 8%
3% 4% 4%
2%
Open Rate Click Rate Effective Rate Open Rate Click Rate Effective Rate
(Emails opened / emails sent (Clicks / emails sent) (Clicks / emails opened) (Emails opened / emails sent (Clicks / emails sent) (Clicks / emails opened)
ENTITY’s open rates have hovered over 30% for the last 5 years related to Commercial / business open rates have improved over the last year, but email lists for
marketing. Not all emails contain click-through links or a call to action, which have an these customers are not as reliable for marketing purposes. As a result, engagement is
impact on click-rate and effective rate metrics. typically lower for this group
Customers are engaging with marketing content, with 70% of emails opened being
~17M emails sent across ENTITY in 20171
read for more than 10 seconds
65% (11M) emails were related to marketing Low unsubscribe rates (.04% vs 1.74% average) show customers are finding email
content information useful and relevant
1
Includes all emails, such as alerts, notifications, and marketing messages
Benchmarks listed are averages across all customer types. Typically, large C&I customers have the highest open, click, and effective rates, followed by residential customers, then SMB customers
Source: Marketing and Communications 2017 Annual Email Report
389
ENTITY’s first call resolution is among leading practice, but customer
Brand & rep perception differs
Perceived first call resolution (FCR) based on ENTITY residential Customer Satisfaction Index Score and FCR
electric customers surveyed, contact center
Perceived FCR (based on survey respondents) ENTITY (based on actual call center data) 1 +23%
West Large (based on survey respondents) U.S Utilities (based on actual call center data)
2
831 FCR has a material impact
88% on overall ENTITY Power
residential electric customers

676
CSAT index score among

86% score. Overall satisfaction
74%
66% scores are improved by
73% +20% when the issue is
% contact FCR
resolved on first contact
Across utilities, the

average first call
J.D. Power Score J.D. Power Score resolution rate is 73%
when issue resolved when issue resolved
on first contact on 2+ contacts
Report Outage Verify Payment Check Balance
Perceived first contact resolution based on residential
Actual ENTITY FCR Phone resolution Web resolution
(based on survey respondents)
electric customers surveyed Utility Leaders (based on survey respondents)
86% 86% 86% 86%
% contact FCR
% contact FCR
85% 85% 86% 85% 85%
Santee Cooper South Central power Green Mountain Wisconsin South Central Power Public Service Entergy Louisiana Jackson EMC
Power Public Service Co. of Oklahoma
1
Based on 2018 YTD FCR data provided by contact center. FCR across ENTITY calculated by taking percentage of cases resolved in first and single contact within 7 days over total cases
2 Source: ENTITY Power 2018 Residential Electric Study
Based on sample set of actual call center data from U.S. utilities; note that first call / contact resolution measurement methodology varies across different utilities
390
Recollection of communication and customers varies by medium
Brand & rep and communication type
Through what medium was communication recalled? What was the most frequent type of communication recalled?
SDG&E
Utilities, West Energy conservation tips 43%
38%
54% 56% 35%
50% Paperless billing 34%
44% 43% 23%
40% Price or rate change
% of customers recalling
19%
33% 32%
communication
21%
Energy efficiencyrebates/financing 18% ENTITY
17% 19% Utilities, West
Customer service 19%
11%
14%
5% 6% Consumer safety around electricity 16%
14%
Paper Electronic Bill Insert Mass Media Other No Emergency preparedness 13%
Communication 14%
Paper = Brochure, bill newsletter, direct mail, statement message Recalled Product or service offers 17%
Electronic = Utility website, email, utility blog, utility social media site , text message 54%
Mass Media = Newspaper/magazine, television, radio, billboard No Recall 56%
Other = Other, Utility called, and In-person % of customers recalling communication
• Electronic (digital) channels remain the most effective in terms of driving
• Targeted communication, which requires a deep understanding of the
communication recall
customer, can help increase effectiveness and recollection of
• Adequate data and technology enablers are needed to ensure customer preferences
communication
align with the appropriate communication medium
• Today, primarily communication customers recall is around saving energy
• Effectiveness measurements must be in place to better understand customer
and pricing / rate changes.
communication lifecycle
Note: based on residential electric customers surveyed Source: ENTITY Power 2018 Residential Utility Satisfaction Study
391
Products & services
Products and services remain top of mind for customers, although
Product & Service many are unaware of a utility’s offerings
Utility provided programs, such as energy efficiency,
Key Takeaways
have a substantial impact on customer satisfaction Utility customers are ready for
products and services from their As both awareness and recall
Impact of program awareness (I.e. Energy Efficiency) on a customer's… provider, yet half of ENTITY’s
Price Satisfaction Communication Satisfaction Corporate Citizenship customer base is not familiar with of ENTITY’s programs can
Satisfaction EE programs that are offered drive significant increase in
ENTITY Power Index
customer satisfaction, ENTITY

-19% -20% -20%
to consider:
669 721 706
Score
540 576 567 • Improving the

71%
communication strategy,
Of consumers expect their including channels,
utility to provide options messaging and customer
Yes No Yes No Yes No
(Program Awareness) (Program Awareness) (Program Awareness) for reducing their energy targeting
On average, customers who also then choose to participate are +45 more satisfied bills and costs
• Leveraging innovative, more
in terms of ENTITY power satisfaction index
effective ways to connect
Familiarity with Existing EE Programs – ENTITY
50% and engage with customers,
e.g., leveraging strong
% customers familiar
60% 57% Of consumers want their community influencers, esp.

55%
with programs
54% provider to tell them what via social media to amplify

55% 52%
51% products and services to ENTITY’s program awareness
50% buy to manage energy use
45%
2014 2015 2016 2017 2018
Source: Navigant Research, 2018 Residential Utility Satisfaction Study
393
ENTITY has built a foundation of products and services that touch
Product & Service its customer base
Powering the Home
LOGO
DELETED
Energy efficiency
ENTITY marketplace rebates and cost saving
DR programs
Home / business audits Public EV charging Mover and field parts Renewable Meter
stations services Adaptor
394
But like many utilities, ENTITY is only beginning to
Product & Service develop DER and connected home capabilities
(To be validated)

Southern Company
Arizona Public Service
Pacific Gas & Electric

CenterPoint Energy
Salt River Project

Portland General
ENTITY
Direct Energy
National Grid
Eversource
NV Energy
Dominion
NiSource
Ameren
Electric
ENTITY
ENTITY
Exelon
ConEd
Avista
NRG
AEP
Solar PV
Storage
Generation
Distributed
Fuel cells / CHP
Micro-wind
Energy Management
Connected Home
Appliances
Lighting
Security
Maintenance
Maintenance
Emergency Repair
Service /
Protection/Cover
Energy Advisors
Energy Efficiency
Aggregation
Demand Response
Control
Source: EY Analysis Rebate and Incentives Presence in Market Developing presence (e.g. partnerships) Limited Presence in Market
Usage Data
lytics
395
ata
New products and services serve as an additional opportunity for
Product & Service ENTITY to evolve customer experience
Consumer & Market Trends Impact to ENTITY
Forecasted ENTITY
Key Takeaways
Product or Service Illustrative: Product prioritization (subject to regulatory approval / environment )
Growth Capability
In addition to defining the products &
Solar ~20% + Strategic fit
services roadmap, ENTITY can consider
the below to effectively go to market:
Solar
Higher
with ENTITY
Smart
• Strong customer-focused culture that
EVs
~25% embraces a retail and product-centric
devices Demand
Storage
service environment
Energy
Efficiency Response
• Adequate training and resource
Storage ~50% Home management to support future
Smart Home Services product and service growth
Assessment of Products • Advanced marketing and
Lower
 Technological
EVs ~40% + synergies and
process steps
communication effectiveness of new
products to appropriate customer
 Customer segments
Home propensity • Robust data & analytics capabilities
~50%  Business model
Services required to capture and model
Existing offering
Lower Higher propensity for customers to adopt
New product
new products and services
EE ~1%  Assessment of
 Growth potential
Market / segment attractiveness
State and local regulations may serve as a barrier to
 Market size enter some of these business segments
Home services market includes growth from on-demand services, based on revenue growth forecasted to 2021
DR ~2%  Solar, smart devices, and storage CAGR calculated from 2017 – 2021 based on capacity
EV growth based on unit sales from 2015 -2020
 Existing capability + Exploring capability
396
People & Organization
Nearly 1K employees support customer services through a handful
of roles and capabilities
314 30 11 5 63 164 25 217 114
CSF & Smart Meter CIS Program Digital Customer Rate Reform
Ops Management Experience Program Team Business Service Customer Programs Customer Pricing Customer Care Customer Operations
Manage field services Modernize and Empower customer Mange rate reform Provide account and Enhance the energy Design appropriate Provide exceptional Drive customer billing,
including technician improve our business engagement across our program for residential services for our relationship with our rates and pricing plans customer care through payment, and
dispatch and smart for customers and digital channels and commercial commercial accounts, customers through by analyzing customer existing and emerging collections across all
meter management employees customers including large programs and services usage and behavior channels accounts
industrials
• ARSO Dispatch • CIS Program Management • Service Innovation • Rate Reform Program • Business Services • Product & Transition Mgmt. • Electric Rate Design • Complaint Resolution • Account Research
• C/S Fld Oprs Trng • Tech, Digital Egmt. • Customer Experiences • Federal Accounts • Customer Programs • Rate Strategy • Customer Care Centers • Busn Rqrmnts & Support
• Workload Management Analytics • Digital Customer • Analytics, Rates, & Support • Program Operations • Electric Data Analysis • Customer Care • Credit & Collections Lead
Ops • Business Process & OCM Experience Services • Financial Bus. Analysis • Electric Load Research • Customer Privacy • Credit & Collections Oper
• Electric Mtr Ops • Data Gov. & Legacy System • Web & Mobile • Energy Services • Cust. Programs Policy & • Electric Load Analysis • CS PMO
• Centralized Ops Integration • Bus. Services Major Strtgy • Electric Demand • Cust Bld Resrc & Litg Svcs
• District Ops • PMO & Testing Accounts • Cust. Programs Eng Sys & Forecasting • Customer Billing
• Dispatching • Planned Outage Cust. Support • Customer Operations
• Dispatching Knowledge Coord. • Outreach & Engagement Support
Mgmt • Interval Data
• Electric Meter Service • Lighting Services
• Field Services • Meter Revenue Protection
• Smart Meter Systems Ops • Mnl Blg & Cust Rate
• SM Tech Support Changes
• Net Metering
• Operations Support
• Prod Supp & Rqrmnts
• Production Support
• Register Reads
• Residential TOU Default
# roll-up count (excluding contractors)
398
Technology & data
Capabilities across digital channels are expected to enhance the
Technology & Data customer experience
Digital vision ENTITY go-live
“Empower customer engagement by 2020+ Mobile app refresh
• New registration process
delivering a seamless omni-channel customer
• New forgot password process
and user experience and engaging in
• Enhanced single sign-on
personalized interactions enabled through
digital capabilities, targeted marketing and Enhanced live chat (e.g. SMS, chatbot)
agile delivery.” IVR CX improvements
2019
Mobile app (early mobile release)
Key strategic priorities • Biometric authentication
• Empower semless omni-channel access • Pay-now option
• Native energy usage charting
• Increase diital self-servicesPersonalize the
• Outage push notifications
digital experience
• Single sign-on
• Deliver data-driven insights via predictive • Native account assist
analystics IVR platform refresh
• Increase speed to market via agile deliver 2018
Gas outage notifications
 Mover’s services / AllConnect
ENTITY website redesign
 MyAccount O&M launch Payment enhancements
 CCA (customer choice aggregation) release 1 launch Paperless my account registration enhancements
 Auto-enroll outage notifications
 Newscenter redesign
 Completed in 2018  Spanish localization for ENTITY.com
Note: list not exhaustive, capabilities and roadmap initiatives pulled from existing DCX roadmap
400
Outside of ENTITY, there are several customer experience
Technology & Data enhancements planed across channels
2018 2019 2020
J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D
ENTITY.com
ENTITY.com re-design Multilingual website Milestone Customer experience enhancement
Spanish support
My Account
R1 R2 R3 R4 R1 R2 R3 R4 R1 R2 R3 R4
Paperless My
Payment
Account Reg.
Draft: Pending Mobile app re-development (TBD) Mobile app refresh (TBD)
Mobile
Dependencies
App
approvals • IM Project
New mobile app (TBD)
Cust design Wireframing of prioritized flow sprints Development

Customer testing of clickable
Final Decision Journey Map
prototype Go Live
Gap Analysis
Draft: Pending
ENTITY
Flows & arch

approvals
Visual Design
Mobile WF
Sprints
Visual Style Guides
IVR / CX Improvements
IVR/CCC
Draft: Pending Business case Phase 1 (TBD)

SMS / Chat
approvals Platform Refresh Phase 2 (TBD)
Other Digital
NewsCenter 2.0
Auto Outage Notifications

Source: Digital and Customer Experience
401
Data used by customer services today is spread across many
Technology & Data systems, some to be consolidated via ENTITY
Related to conversion into core SAP
Others: CAP, DIIS, EBMS
CRM MyAccount / ETrust ACIS CARE CPD CCSR
Products and services (i.e.

Online interactions with
energy efficiency Summarizes and Contains new
customer, such as bill and
programs, demand aggregates accounts into Low income program construction projects and Choice enrollments for
payment, online energy
response programs, and a single, consolidated enrolment information respective physical customers
management, and other
customer customer view locations
self-service applications
communications)
Electric Bill Payment EECP (EE) OMS GIS / OUA DRMS ECOBEE
Summarizes and Contains secondary

Contains latitude and Contains demand
aggregates accounts into Outage history for device information of
Contains contact notes longitude information for response attributes for
a single, consolidated customers customer (i.e.
installed maters customers
customer view thermostats)
Legacy CIS (CISCO) Customer analytics systems (CAS) Next Best Offer Commercial Energy Online Presentment Residential Energy Online Presentment
Online energy management Online energy management

Basic marketing analytics for Predictive analytics for CCC
tools for commercial tools for residential
customer contact center and Bill Ready notifications
Customer billing, revenue and customers customers
financial reporting, interval data
processing, meter inventory, service Customer data warehouse iAvenue Marketplace Payment Entry Processing
orders, and credit / collection
processing Repository for customer data C&I customers data for AE
Drivers energy-related Enables payment processing
(i.e. energy usage, meter and (contacts, notes, leads,
products and service sales into legacy CIS system
account information) prospects, etc)
Note: list not exhaustive, focuses on systems and databases that store key customer information and data Source: ENTITY Data Conversion and Strategy Approach, ENTITY CIS RFP
402
Process & policy
Process & Policy
No Data Provided
404
Governance
Governance
No Data Provided
406
Across the enterprise, ENTITY works with third-parties to utilize
Partners & Suppliers partnerships where appropriate
Corporate brand &
Customers Channels reputation Products & services People & organization Technology & data Process & policy
Examples of partners used today Examples of areas for potential partnerships
• Customer insights and • Channel optimization • Reputation management • Third-party vendors for • Third-party contractors • API gateways • Collections and credit
research • Contact center • Marketing management products & services and contingent workers • Advanced web analytics • Payroll processing
• Customer strategy outsourcing • Lead generation, • Order fulfilment and (e.g. freelancers, • IT services • Process automation
• Customer acquisition (P&S) • Service requests and promotion, campaign management consultants) • Third-party data (on
• General customer inquires scheduling exec. customers, channels,
• Branch locations products, etc)
LOGOS DELETED
Claritas Prizm data used to LivePerson powered live External advertising agency Smart thermostats in ENTITY outsources Microsoft office 365 and To make payments,
drive additional insight from chat functionality utilized supports with creatives and ENTITY’s marketplace application development Power BI support reporting customers often use
customers by customers tracking effectiveness provide additional savings and data center operations and visualization of KPIs ENTITY’s billmatrix service
options for customers to IBM tracked today
Works with fortune 100 companies to deliver Partners with companies across industries to Works with 90% of Fortune 100 companies Analytics platform used assess existing customer data
experimentation and personalization across key drive brand and CX research aggregate and synthesizes ‘big data’ across -- driving new KPIs that provide refined insights to
channels such as web, mobile, and apps multiple data systems for search and analyzation support sales, service, compliance and efficiency
Higher potential Lower potential
408
KPIs
ENTITY’s current customer services reporting is decentralized
KPIs across business units and LOB
Dedicated reporting and Centralized channel reporting and Center of excellence manages all reporting
optimization for each LOB optimization teams serve all LOBs and optimization
Current approach
Channel
Channel Channel analytics
Channel analytics analytics Channel
analytics Channel analytics
analytics
Channel Channel Channel LOB team

LOB team Analytics Analytics Analytics
Center of
excellence
Channel LOB team LOB team Channel LOB LOB LOB LOB
analytics analytics
Channel LOB team LOB team Channel
analytics analytics
Channel Channel
analytics analytics
Channel Channel Channel Channel
analytics analytics analytics analytics
Channel Channel
analytics analytics
Decentralized Centralized
Source: Forrester Research, EY Analysis
410
Front-runners are using both leading and lagging KPIs developed
KPIs based on the audience and their focus
ENTITY customer-related reporting and KPIs
within Customer Services
Metrics: Return on Investment (ROI) Digital and Customer Experience
Operating Income KPIs
Audience: Executive level Penetration / Market Share • Digital self-service
Customer Lifetime Value (CLTV)* • Mobile and web engagement
Focus: Strategic/Financial Customer Feedback / NPS* • Transaction volume
• Web engagement
• System performance
Lead to Sales conversion rates* Customer Services KPIs
Metrics: Revenue per Customer
Products per Customer* • Call center metrics (i.e. ASA, AHT,
Roll-up Campaigns results
Audience: Director level Cost to serve per contract* call volume)
Product Portfolio mix
Cost to serve per customer* • Program enrollment (E-bill,
Focus: Strategic/Insights Profitability
MyAccount, MarketPlace visits)
Retention
• Cost per call
Gross Margin per Customer*
• Customer sentiment
• Mobile, social engagement
• Digital and payment self-service
Metrics: Response Rate Delivery Rate
• Employee safety
Response Channel Open Rate
Audience: Manager Level • Field ops
Close Rate Click Through Rate
Focus: Tactical/Campaigns Campaign Cost Return Rate
Contact Center Dashboard
Cost per Acquisition Customer Complaints* • Primary call center metrics
Cost per Participant Social Reputation*
including AHT, ASA, call / queue
* Predictive metrics
volume, etc.
Note: list not exhaustive Source: ENTITY Customer Services KPI Report, Digital and Customer Experience KPIs, ENTITY Market Intelligence, Insights & Analytics, ENTITY Marketing & Communications
411
Existing customer-related reporting span across the enterprise
KPIs with varying data sources
Customer-related reporting and KPIs within Customer Services Customer-related reporting and KPIs outside of Customer Services
Digital and Customer Experience KPIs

• Digital self-service
• Mobile and web engagement Digital channel
IMAGES
dashboard highlighting
• Transaction volume
engagement across
• Web engagement digital channels;
• System performance distributed monthly
DELETED
Customer Services KPIs
• Call center metrics (i.e. ASA, AHT,
call volume) Customers services KPI
• Program enrollment (E-bill, dashboard showing
MyAccount, MarketPlace visits) monthly/ YTD progress Customer sentiment Payment & billing
toward defined goals;
• Cost per call
socialized and updated
• Customer sentiment monthly by those
• Mobile, social engagement accountable for measuring
• Digital and payment self-service respective KPIs
• Employee safety
• Field operations
Contact Center Dashboard Near real-time dashboard of

• Primary call center metrics call center metrics primarily
used by those accountable
including AHT, ASA, call / queue
for contact center operations Marketing and communications Customer information & firmographics
volume, etc.
Note: list not exhaustive Source: ENTITY Customer Services KPI Report, Digital and Customer Experience KPIs, ENTITY Market Intelligence, Insights & Analytics, ENTITY Marketing & Communications
412
Digital KPIs will become increasingly important as interactions
KPIs shift toward digital channels
Value driver Typical call center metric Intent of metric Equivalent digital metric
Average speed to answer Customer responsiveness Channel latency / clicks to destination
First call resolution First contact / first visit resolution
Number of contacts to resolution Clicks to resolution
Cost
Complaints per CC FTE Customer satisfaction Complaints per active users
FTE per customer Mobile app adoption rate
Efficiency
Average handling time Time per session
Right first time Resolution rate completed on channel

Leading Number of contacts to resolution Clicks to resolution
customer Quality Time to resolve query Customer satisfaction Time per session to resolution
experience Number of transfers Number of clicks per session
Customer journey quality
Customer repeated information Login attempts per session
Outsourced supplier management SLAs Customer responsiveness Hosted support management SLAs
Product Churn Customer Satisfaction Product Churn

Product Lapsed after 14 days Sales Quality Product Lapsed after 14 days
Revenue Cost per sale Cost / efficiency Cost per sale

Sales per FTE Sales per channel
Sales effectiveness
Agent conversion rate Channel conversion rates
Source: EY Analysis
413
As part of ENTITY, there are additional leading practice KPIs and
KPIs metrics that ENTITY could measure
Guiding Leading Value Area Primary KPI Supporting metrics
principle practice KPI Channel effectiveness
NPS, Transactional CSAT
Customer sentiment scores
2. First Contact Resolution 4. ASA (web-chat)

Customer Effort 1. ASA (Contact Center)
Customer
Customer Score
5. Call abandonment
31. Digital self-serve %
First
29. % of users enrolled in My Account
Session duration
28. Monthly Active Users
Unique sessions
Payment self-service rate
40. Payment accuracy rate 39. Payment exception
35. Invoice to cash: avg days duration from invoice to cash
33. Operational uncollectable Payment arrangement rate
34. Delinquent account receivables over 45 days as a %...
Revenue per rate
Volume and revenue 36. Collections effectiveness index
customer Revenue / margin per customer
6. E2E campaign elapsed time 37. Percentage of shutoff in error App downloads
for customer o/b comms 38. Deposit coverage rate
Social media growth Customer Churn
Marketing effectiveness metrics Product and service enrolment Product penetration

Vision to Field-service response time
Value Cost per call / interaction 3. Average Handling Time (AHT)
10. Billing accuracy Customer Lifetime Value
30. E-bill adoption
Average revenue per user (ARPU)
58. Call center calls offered
18. # of inactive cust not received invoice within 10 days...
Chat sessions Cost per acquisition
7. Average training time 19. # of active cust who have become active over 38 days…
Cost per contact Efficiency 8. Cost per Customer (billing) 20. Meter to invoice: Average days…
9. Cost per Exception (billing) 11. Billing / invoicing timeliness (<=5 days)
21. Cost per processed
application – CARE/FERA 22. CARE application timeliness <=5 days 12. Billing / invoicing timeliness for delayed bills (>30 days)
23. Timeliness – CARE/FERA delayed applications > 30 days 17. AHT (exceptions)
24. Cost per processed
25. Medical baseline application timeliness <=5 days 13. Billing & invoicing exceptions
application – Medical Baseline
26. Timeliness – Medical Baseline delayed app > 30 days 14. Billing & invoicing exceptions timeliness
15- 16. Average days outstanding - exceptions
Number of non- 27. Elapsed time from design through to implementation
compliant Compliance Disconnect compliance
interactions
Empower & Attrition
Enable Employee Sickness / absenteeism XX
Listed in ENTITY ENTITY contract; number next to metric indicates
Note: number next to metric indicates
Employee reference in KPI schedule 5
engagement Accident / safety incident rate
Not currently listed in ENTITY ENTITY contract, but actively
reference in KPI Schedule 5
XX *actively measured refers to metrics in the
Department employee engagement scores measured* in CS organization today
existing KPI dashboard updated and socialized
XX Leading practice KPI that is neither listed in ENTITY ENTITY contract, each month across customer services
Streamline & 41. Decommission rate for legacy applications nor actively measured* in CS Organization today
42- 50. Availability: ISU, C4C, BW/4HANA, Hybris, OpenText
Sustain System timeliness Performance
51 – 56. Batch Timeliness
Technology 32. % of Uptime
57. System response time for specific transactions
Average Page Load Time
Source: ENTITY ENTITY CIS Contract, EY Analysis
414
Culture & values
Employee engagement scores across ENERGY COMPANY A and
Culture & Values ENTITY utilities have fallen over the last 10 years
Employee Engagement Scores: ENERGY COMPANY A and ENTITY Total Safety Incidents – ENTITY: 2017
100% Based on OSHA, LTI, and CMVI reported incidents
Asset Management 0
95%
CIO and Info Tech 4
> 80% = excellent
Employee engagement score
90% Customer Services 24

87%
Electrical Operations 49
85% 83% 83% Electric System Operations 1
85% 82%
82% 82% 80% Electrical Engineering and Construction 24
80% 79%
80% Sempra
75% Gas ops 23
< 80% = good
75% 73%
Fortune 500 Gas transportation ops 0
72% SDG&E Operations support 14
70%
2009 2011 2013 2015 2017 2019* 3
*based on trend Supply management & logistics
Employee engagement index represents a combination of four survey questions based on employee satisfaction, Number of incidents
opportunities outside of ENERGY COMPANY A/ENTITY, whether or not the employee would refer a friend to ENERGY
COMPANY A/ENTITY, and how proud the employee is working at ENERGY COMPANY A/ENTITY
Source: ENTITY safety report
416
Market Assessment
October 23, 2018
The market assessment presents a macro analysis of regions,
plus a specific analysis of identified drivers
Section 1 - macro analysis Pages 3-19
Estimated times of arrival

for three key disruptive
industry events at the
Global, US, and California
level.
Global impact of disruptive trends United States California
Page 4 Page 9 Page 16
Section 2 - detailed driver analysis Pages 20-79

Market factors considered
Socio -
Political Economic Technological
environmental
Global
Universal trend that will impact all Page 21 Page 24 Page 26 Page 28
organizations
Energy market
Trends that impact the entire US Page 35 Page 38 Page 42 Page 44
energy market
Regional trends
State and local trends that ENTITY Page 62 Page 69 Page 71 Page 77
will uniquely feel within the market
418
Section 1: Macro analysis
Global impact of disruptive trends

Page 4-8 Page 9-15 Page 16-19
The energy market is evolving with the development of more
dynamic technology
Energy journey over the last century .. Birth of a new distributed energy system – digitally driven
Power to gas
er
Solar cells
sum
Prosumer
Con
Utility scale Electric
storage Local solar
Electric vehicles farms vehicles
P2P
Large scale
Off-grid wind
ail
generation
Ret
Industry
Fast charging
2000-
1900 1960 1970
now Dispatch
Microgrids Baseload power Offices
generation Balancing
Tranmission Settlement
and distribution
Blockchain automation
Solar Home
generation Local wind farm
Internet of Things
Smart grid
Demand response
Battery storage
421
10 core technologies are impacting the global market and
driving a shift in the market’s economics
Solar PV Smart meters
Solar systems, both utility-scale and smaller on-site, Records consumption of electric energy in intervals of an
producing energy that can be consumed hour or less and communicates the information back to the
utility for monitoring and billing every day
Battery storage Artificial intelligence

On-site batteries used to store electrical energy, including AI/cognitive systems that formulate possible answers and
both stationary as well as EV batteries automatically adapt based on available evidence and
training by ingesting vast amounts of data
Enabling technologies
Delivery technologies
Electric vehicles Grid edge technologies

Plug-in passenger EVs, including battery electrical vehicles Includes devices, such as syncrophasers/smart grids, which
(BEVs) and plug-in hybrid electric vehicles (PHEVs) helps record, monitor, control and optimize energy
distribution
Microgrids Cloud
A group of distributed energy resources (DER) and electrical Defined by public cloud sharing of electric utility spending
loads with clear network boundaries. Can operate in island- on software, server and storage.
mode. Controllable as a single entity.
Home and building energy systems Peer-2-peer energy exchange

Energy management systems that enable the most efficient Technology which helps prosumers to exchange excess
and cost effective measurement, monitor, control, and electricity with other consumers
optimization of energy consumption
The model is designed to incorporate both the reciprocal interactions of these technologies and their effect on the demand for electricity, and the
cost of generating, distributing and selling electricity
422
Timing of disruption can be tied to three “tipping points” in the
energy market
Tipping point 1 (T1) The birth of the new

“Grid cost parity” of non-utility* solar plus storage systems energy system

Electricity and mobility
The price of battery electric vehicles reaches cost parity and industry convergence
performance parity with ICE** vehicles

The digital energy
The cost of transporting electricity exceeds the cost of market place
generating and storing it locally
* Non utility: households and business customers producing electricity

** ICE: internal combustion engine
423
The Tipping points are expected to arrive at varied times in
different regions
Europe
T1 T2 T3
2022 2025-29 2042
U.S.A.
T1 T2 T3
Northeast 2031 2025-29 2039
West Coast 2034 2025-29 2045 Oceania
Midwest 2036 2025-29 2044

T1 T2 T3
ERCOT 2038 2025-29 2045
2021 2025-29 2040
Southeast 2042 2025-29 >2050
424
United States

Natural gas-fired plants and utility-scale renewables will
dominate the US generation mix
West Coast Midwest North East
► Natural gas currently ► High coal generation ► High electricity prices
dominates; strong uptake of ► Balanced portfolio of natural gas, ► Favours natural gas; renewables
renewables coal and renewables by 2050 displacing coal and nuclear power
► High adoption of distributed ► Wind power will comprise most of ► Investment in energy storage and
solar PV renewables by 2050 smart grid technologies is on the rise
► Most states have binding standard
for clean energy
South East
California WA
MT
ND
N
VT H M
► High natural gas, coal and nuclear
► California leads the way in M
N
E
reserves;
distributed solar PV and EV
OR
WI
Natural gas to dominate the power

ID
SD MA
►
adoption
NY
WY M
demand in future
I RI
CT
PA
NV IA N
NE
O MD J
Solar deployment is slow due to lack

DE
UT
IL
I
H
W
►
CO N
of Renewable Portfolio Standards

V VA
ENTITY KS
MO KY
AZ
OK
TN
N
C program
NM A
S
R
M A GA
C ► Renewables is expected to displace
ERCOT* TX
S L
coal and nuclear power by 2050
L
A ► Utility-scale solar PV to pick up
► Wind generation is high in Midwest and FL
ERCOT region
426
ENTITY will reach tipping points before other regions in the US
Midwest (MIW)
West (WE)
T1 T2 T3
North East (NOE)
T1 T2 T3 WA
2036 2025-29 2044
MT NH T1 T2 T3
ND VT ME
2034 2025-29 2045 MN
OR 2031 2025-29 2039
WI
ID MA
SD NY
WY MI Tipping point 1 is reached
RI first in the Northeast in
CT
PA 2031, and as late as 2042
California NV
NE
IA
OH MD
NJ
in the Southeast
IL DE
(ENTITY) UT IN WV
T1 T2 T3 CO
VA
ENTI KS
TY MO KY
2028 2025-29 2036 TN
NC
AZ
NM
OK
AR
South East (SOE)
SC
MS AL GA T1 T2 T3
ERCOT* (ERCT) TX
LA 2042 2025-29 >2050
T1 T2 T3 FL
2038 2025-29 2045

*ERCOT: The Electric Reliability Council of Texas
Source: Utility impact model central scenario - EY analysis
427
Three factors explain why tipping points will occur in the US
much later than Europe

2 Low T&D costs
3 Low taxes
► Natural gas costs in the US are almost half ► Cost of T&D estimated at around ► Taxes contribute only 5% of US retail
that paid in Europe (US$2.5/MMBtu $49/MWh in Europe vs as low as electricity prices – compared to making
compared to $4.9/MMBtu). $22/MWh (Southeast, the cheapest US up one-third of prices in Europe and
region). 20% in ANZ
► Coal prices are as low as US$12 a ton
compared to US$64 a ton in Europe. ► Low maintenance cost: over-ground poles ► In the US, generation costs make up
and wires are much cheaper to maintain 50%-60% of electricity retail prices
► LCOE generation cost of new build than the underground infrastructure used compared to only 38% in Europe
renewables is already competitive in in much of Europe.
many states in the US. Utility-scale
renewables to gain market share as prices ► Over recent decades, US utilities have
decline further. invested less in the electricity grid than
utilities in developed regions of the world.
► Only one new nuclear plant (PLANT)
scheduled for new units in future, while ► The US has one of the highest per capita
other US plants are uprated/ upgraded consumption of electricity and a relatively
enabling additional capability with lower number of customers, thus making
minimal investment. T&D costs lower.
428
Cost of natural gas and coal is projected to achieve parity with
utility-scale renewables after 2030 in the US
2 Low T&D costs
3 Low taxes
Generation cost* (Northeast) Generation cost* (Westcoast)

200 200
150 150
100 100
50 50
For 2017, overall generation cost ($/MWh) in the US is less 0
0
than in Europe 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8
Generation cost* (ERCOT) Generation cost* (Southeast)

Westcoast: Midwest: 68 Northeast: 200 200
Europe: 97 Vs. 86 77 150
100
150
100
50 50
ERCOT: 64 Southeast: 58
0 0
1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8
Utility
Coal Gas Solar* Wind*
Generation cost* (Midwest)
Rooftop solar to achieve grid parity only
200
after 2030, for all regions in the US.
150
*The LCOE generation cost of new build renewables is competitive in many Westcoast and Southeast to achieve parity
100
states in the US, however, the cost of running the whole existing generation fleet sooner than other regions, mostly due to
50
is calculated after averaging the cheaper cost of new and future build with the favorable climate and regulatory
0
higher cost of existing plants in the above graphs 1 2 3 4 5 6 7 8 environment driving higher value.
429
T&D costs will not remain low as utilities will need to
maintain and improve their T&D infrastructure and
performance
2 Low T&D costs
3 Low taxes
T&D cost* in $/MWh (Europe vs. US) US capital expenditure breakdown by categories for utilities
(in US$ billion)
30 ► T&D investment is
35
44 expected to account for a
1 114
22
39
112 106
growing share of overall
99 98 expenditure.
T&D cost* ($/MWh)
49
41 41
32 40
68 36 ► There is an increasing focus
82
124 on grid modernization and
2 29 23 18
43 26 16 integrating renewable
80
89 energy resources.
42 45 48 49 45
229 ► Several utilities, including
258
433 Pacific Gas & Electric,
3 129 2015 2016 2017 2018 2019 ENTITY and Southern
189
198 Company, announced
Source: SNL Energy Others billions of investment in
Series6 Series5 Series4 Series3 Series2 *Capital expenditure is sum of expenditure of 52 electric and gas utilities. Generation T&D over next 5-10 years.
Series1 Other expenditure includes environment, renewable, gas and corporate
expenditure T&D
430
Low taxes and levies applied to low generation and T&D costs
lowers overall US retail prices compared to Europe
2 Low T&D costs
3 Low taxes
Retail price breakdown by regions, 2015 High taxes in Europe vs US

$- $50 $100 $150 $200 $250
1 57% 28% 5% 1/3 of electricity retail

prices in Europe comprise taxes
2 52% 30% 5% and levies compared to only 1/20
of the total retail price in the US
3 54% 26% 5% High composition of generation
cost in the US
4 49% 30% 5%
50%-60% of retail prices
5 59% 24% 5% in the US are attributable to
generation costs, which make
6 38% 22% 33%
account for a much lower share
(38%) of Europe’s retail prices
431
California

ENTITY is leading the way in the US for increasing the
renewable generation mix
Coal Gas Renewables Nuclear
ERCOT Midwest West Coast

60%
70% 60%
% Total Demand
60% 50% 50%

50% 40% 40%
40% 30%
30%
30%
20% 20%
20%
10% 10%
10%
0% 0% 0%
1 2 3 4 5 1 2 3 4 5 1 2 3 4 5
Northeast Southeast California

60% 50% 70%
50% 60%
40%
% Total Demand
50%
40%
30% 40%
30%
20% 30%
20% 20%
10% 10%
10%
0% 0% 0%
1 2 3 4 5 1 2 3 4 5 1 2 3 4 5
*Renewables, excludes hydro-based power and includes both grid-scale and distributed renewable generation. Renewables comprise of Bioenergy, Wind, Geothermal, Solar PV, CSP and Marine
433
ENTITY will reach tipping points first in the US due to
investment in renewables and lowering emissions
The digital energy market place
system industry convergence Illustrators*
ENTITY Tipping Points Analysis

$800
away in California
Grid cost parity of
$700 Period of EV & ICE parity non utility solar plus T&D parity with
(cost + performance) storage systems non utility solar +
$600 battery LCOE
Fully delivered
electricity
$/MWh
$400
2 Cost of transmission
1 and distribution
$300
Non utility solar
$100 + battery LCOE
$0
1 2 3 4 5 6 7 8 9 101112131415161718192021222324252627282930313233343536
* Analysis is based on average profiles. In each geography, there
will be segments of the customer base for whom the economics
Source: Utility impact model Central scenario California — EY Analysis improve much sooner.
434
Energy storage market, rise in renewables, and regulations pull
the tipping points forward in ENTITY
California leading the energy transition
62% 2050 65%

20 states have at 140+ approved or
least 1 MW pending policies
around storage of energy mix will be of cars will be electric
storage projects renewables by 2050
9 states have at
least 20 MW ► State-based initiatives ► Leader in EV adoption,
storage projects such as cap-and-trade supported by policy
program, CSI*, net ensuring 15% of sales in
energy metering program zero emissions vehicles
and CSGI** by 2025 (7m EVs)
► Plans to roll out 100% ► Incentives of up to

renewable target US$7,000 on EV
purchases and ambitious
► High storage deployment rollout of charging
amid favourable stations by utilities
regulations
► Solar PV + Storage will become price competitive in the US by 2020
(National Renewable Energy Laboratory (NREL)).
*CSI stands for California Solar Initiative; **CSGI stands for California’s Self-Generation
Source: Utility impact model US central scenario - EY Analysis Incentive
435
Section 2: driver analysis
Global Trends
Global Political factors
Socio-
environmental
Withdrawal from the Paris Climate Agreement has put
P E S T
California into a global climate leadership position
Main goals and activities of the Paris Climate Agreement 1
1) Prepare and respond to effects of global warming to keep global temperature rise below 2ºC this century
2) Provide additional support to developing countries to do so
Responsibilities tied to the Paris Climate Agreement
For the agreement to be effective, countries

must be committed. Some countries are
leaving the agreement which is regionalizing the
Financial contribution to
Regularly report emissions Global measurement of global issue of climate change.
help developing countries
and implementation efforts progress every five years
reduce emissions
Large countries leaving the Paris Climate Agreement:
?
Impacts of regionalizing climate change:
• Developing nations may not be able to reach
their reduction goals with less support.
• Reduced global accountability for reducing
US withdrew from the agreement altogether in Australia will not provide any additional emissions and increased autonomy on globally
2017; it contributes an estimated 21% of GHG financial contribution and submit questionable impacting issue.
reductions. 3 claims of being on track to renewable targets. 2
439
Global Economic factors
Socio-
environmental
The global economy is being impacted by clean energy
P E S T
technologies and renewable goals
Four priorities of the World Economic Forum’s System Initiative Stewardship Board 1
1) Provide clarity on the energy transition in different contexts and geographies
2) Identify and enable means required to achieve these transitions
3) Contribute to the design and development of policies, market systems and technology enablers that can effectively deliver required change
4) Understand and address the societal consequences of the energy transition
The System Initiative encourages development of favorable policies, plus private and public sector actions to create a more sustainable, affordable, secure
and inclusive energy future, essential for economic and social development.
Global energy economy focus factors
Global Urbanization is increasing the Shift in energy demand growth Declining cost of
demand and consumption of energy to less developed countries renewable technology
Innovations, including
Increased consumption of natural
digitalization, automation, and AI
gas and renewables
441
Global Socio-environmental factors
Socio-
environmental
Latest IPCC report calls on individuals and organizations to take
P E S T
action to limit irreversible impacts of climate change
Intergovernmental Panel on Climate Change (IPCC) has issued a report on the impact of global warming at 1.5C, which could be reached by 2030.1
1) Limiting warming to 1.5ºC brings important preventative benefits compared to a 2.0ºC threshold.
2) Nature of changes required to limit to 1.5ºC impact corporate and individual level transportation, land management, and energy systems.
Overall impacts of 2ºC global warming
Coral reefs will be eliminated Sea levels will rise 10cm Reduced ability to grow maize, wheat, and rice
The report outlined key actions that need to be taken now by individuals and organizations. Specifically, the energy system was called upon to increase use of
renewables.
Action needed from the global energy system 2
Inaction will cost more with higher levels of

risk later on.
• CO2 removal later in the century will be more expensive
and not proven to work
75-80% renewable energy by 2050 Requires $2.4T average annual • Reduced economic growth at 2ºC compared to 1.5ºC.
investment over two decades
443
Global Technological factors
Socio-
environmental
AI will have implications across different realms of the
P E S T energy space
Key impacts of AI on the energy market
1. Virtual agents
2. Robotics
3. Automation
Different applications of AI in the energy market 1

1. Forecasting 2 2. Distribution systems 3. Supply and storage 4. Customer services
Use of AI forecasting for: Examples of distribution application: Use cases

2 span residential to utility- Examples of AI powered customer
• Demand • Predictive maintenance scale: service:
• Generation • Predictive energy management in • Solar+storage • Virtual agents
• Weather adaption Microgrids • Grid-scale applications • Smart home devices
Brand spotlight: What do they do?
ENTITY utilizes AI algorithms to manage storage asset portfolios, including batteries,

EVs, and solar PV systems.
445
AI will help utilities prepare for changes to their business
P E S T
models in the future
Data revolution
►
1
A great energy disruption
Massive increase of data

Clean Energy
►
2
A cleaner Energy mix
Solar and wind farms

3
A complex business model
New business models

► New business models to low-carbon
► Multiple sources of data ► Mass-market electric vehicles energy generation
► Development of new products and
Digitalisation and Technology New Industry, new possibilities services
► Digitalisation along the P&U value ► Energy storage
chain ► Classical energy sources slowdown
► Exponentially improving new Competitive and deregulated P&U
technologies efficiency ecosystem
Unpredictability and reliability issues ► Opening the market to increasing
► Renewables power sources are less levels of competition as digital tools
predictable and services become more popular
► Maintain a secure, reliable supply to
customers
High volatility of costs
► Continuous assessment of supply and
demand based on price signals
1 EY research
446
AI has the potential to impact each part of the utility
P E S T value chain
Supply and demand Customer services

Distribution systems balancing
Power generation and Smart Grids Marketing
► Create new energy trading ► Commercialise new tailored services

► Create new power ecosystems capabilities (modelling and that suit customers preferences (best
► Enable new generation models based on new ways to produce pricing, energy supply, virtual agents)
forecasting of electricity prices)
(DER, REN…) supporting the and consume power (e.g.
growth of new energy usages Micro-grid)
(Storage, EV,…) ► Improve demand and supply
balance using self-learning ► Improve Customer retention due to
► Tackle uncertainty and prediction models better understanding of his behaviour
► Maximize power generation unpredictability grids
(consumption peaks, fault Energy services
efficiency with real time ► Perform short-term and long-
detection…)
adjustments term forecasting of spot prices ► Provide new energy solutions to
based on various factors optimise business consumption
Reduce operating costs :
► Enable predictive maintenance with smart operations management (maintenance, ► Provide autonomous response ► Pilot energy consumption with
security, monitoring…) to market signals with autonomous smart systems
► Minimize downtime with data management on the grid (supervision, monitoring, continuous assessment of supply
autonomous piloting) and demand
Top line AI capability
Bottom line AI capability

1 EY research
447
Blockchain creates a more transparent and trustworthy
P E S T transaction network
A network and a database. Transactions are stored in virtual blocks, which are connected together in a chain, creating a
complete history of all transactions that have ever occurred within a particular network
Distributed Smart Time-stamped Consensus Secure and

ledger contract & permanent validation encrypted
Back-end database that Embedding trust rules Time-stamping, Resistance to single point Self-execution of business
maintains a shared, inside transactions and rights and ownership of failure of censorship logic with
distributed ledger interactions proofs self-enforcement
Attributes
Peer
Trust vs. Smart
to peer Immutable Traceable
no Trust wallet
network
1 EY research
448
Blockchain has applications throughout the energy value
P E S T chain
Key impacts of Blockchain on the energy market 1
1. Increased trust
2. Improved transaction records
3. Better management of assets and trading
Different applications of Blockchain in the energy market 2
1. Distribution 2. Smart devices and technology 3. Asset management 4. Energy trading
Blockchain will enable grid-scale Applications to smart devices and Blockchain enables: Different components:
and off-grid distribution: technology: • Asset tagging and tracking • Trading platform
• Distributed generation sources • IOT and security • Failure tracking • Microgrid platform
• Neighbor-to-neighbor • Meter data management
microtransactions
ENTITY utilizes blockchain to support regional energy distribution, demand response,

and faciitate interaction between supply and demand.
449
More complex use cases of blockchain will be required as
P E S T the energy landscape changes over the next 10+ years
Maturity timeline 1
Large scale EV mobile charging
and sharing platform
High complexity
Large scale micro grid/ smart

grid mgmt./IoT/grid service
automation Examples of use cases being explored now:
• Smart device management:
Large scale peer2peer • Green energy tracking
trade/prosumer • Smart meter data management
• Peer-to-peer energy exchange
Settlement in wholesale trade
• Microgrids
Low complexity
Grid management on base

of wholesale trade data
There are more than 120 organizations with

Local isolated microgrids
blockchain-enabled technology in the energy
Wholesale trading
sector, with 40 pilots in progress. 2
2 – 5 years 5 – 10 years >10 years

Complexity of transaction and counterparty arrangements
1. EY research
2. https://www.engerati.com/smart-infrastructure/article/transactive-energy/blockchain-electricity-%E2%80%93-progress-report
450
Energy Market Trends
Political energy market factors
Socio-
environmental
Federal policy support shifts to state responsibility and
P E S T increased oil and coal investment
Federal policy has poised itself on a platform for the following key goals 1
1) Decrease regulatory burdens
2) Develop innovative energy technology
3) Build new energy-related infrastructure
Shifting responsibility to the states

• Leaving the Paris Agreement decreases global accountability
of the US government for emission reduction.
• Replacing federally planned emission reduction targets with
state-planned goals is placing further responsibility on the
Withdrew from Paris Agreement Replaced federal targets with states.
state targets
Support for Oil and Coal

• High cost to build coal plant will limit investments. 2
• Judicial system still limiting building of pipelines due to
environmental concerns, despite reduced federal regulations.3
Removed cap on power plant Less regulation on building energy-
emissions related infrastructure
453
Economic energy market factors
Socio-
environmental
Grid defection potential relies on availability of self-
P E S T generation and storage technologies
Key impacts of grid defection on the energy market 1
1. Movement from the utility business model
2. Increased peer-to-peer interaction
Impacted components of energy market 2

1. Generation 2. Storage 3. Infrastructure 4. Customers
B2C and B2B customers are Falling price of storage systems makes Increasing amount of load is Remaining grid-tethered customers
increasingly self-generating off-grid an increasingly removed from the grid, reducing the further incentivized to
due to the decreasing LCOE of need for grid investment and driving
sustainable options for some explore distributed solutions
2 to
decentralized energy generation. customers, in some geographies. up prices for consumers. drive down rising prices.
ENTITY provides solar and storage services to consumers.
455
Commercial customers are purchasing energy directly or
P E S T investing in self-generation to meet renewable goals
1
Corporate Renewable Deals (2013-2018YTD)
71 of Fortune 100 and 215 of Fortune
500 companies currently have renewable energy
or sustainability targets.1
Movement of large corporations from utilities as

service providers may increase the cost for
remaining customers.2
There is opportunity in taking on an advisory-

oriented role for utilities.
456
Reduced cost and increased incentives are accelerating
P E S T energy storage adoption, but mix will be majority grid-tied
Battery storage improvements will drive multiple changes in the energy market
1. Increased efficiency and storage of renewable energy generation
2. Improved grid stability for grid-connected systems
Share of US residential battery storage by application 1 Both off-grid and grid-independent back
100%
90%
up are seen declining as purposes for installation of
residential battery storage systems and are expected
80% 1
to fall below 5% by 2020.
installations by application (%)
US residential battery storage
70%
60% Energy storage system prices are expected to
50% decline at an average rate of 8% through
2
40% 2022.
30%
20% There are two Federal tax incentives available,
10% plus ENTITY recently extended $800M worth 3
in
incentives for behind-the-meter batteries.
0%
2014 2015 2016 2017E 2018E 2019E 2020E 2021E 2022E
Off-grid Grid-independent back up Grid-tied
457
Social energy market factors
Socio-
environmental
Replacement of original clean energy plan with a more relaxed
P E S T
one will slow the decrease in CO2 emissions
Change in Federal emissions reductions policy 1
Clean Power Plan (CPP) was replaced by the Affordable Clean Energy Rule (ACE) to stimulate the coal industry and place more regulatory power on the
states. ACE removed the cap on power plant emissions and requires states to set their own emission reduction goals.
1
ACE would reduce the rate of CO2 emission reduction compared to CPP
1680
1660
CO2 (million metric tons)
1640 Under the Affordable Clean Energy Rule (ACE),

1620 emissions would continue to decline but at a
1600 slower rate compared to the original Clean Power
Plan (CPP).
1580
1560 Though CO2 emissions would not decrease at the
1540 same rate, EPA estimated CPP replacement with ACE
1520 would generate $3.4 billion in net benefits.2
1500
1480
1 2 3 4 5 6 7 8
Series1 Series2
459
Energy Technological factors
Socio-
environmental
Electric vehicles (EV) will impact the ENTITY service
P E S T model and pull in competition
Key impacts of EV adoption on the energy market 1
1) Increased competition due to convergence of industries and new entrants
2) Opportunity to be viewed as an advisor to customers
Different spaces within the EV market

1. Mobility 2. Charging infrastructure 3. Charging strategy 4. Vehicle-grid services
EVs are being adopted in all Focus is shifting on setting up a Charging strategy will become EV integration with the grid could
reliable charging network in increasingly reliant on vehicle-to- improve grid stability
realms of transportation,
from public transportation to ENTITY for the progressing mass grid (V2G) integration and through EV batteries and move
2
heavy-duty commercial vehicles. adoption of EVs. smart applications. charging to off-peak times.
ENTITY focuses on developing EV charging technology which concurrently improves

grid stabilization.
461
P E S T
Key policy goals are pushing EV adoption forward
2010: California Vehicle Rebate Program

(CVRP) is established as a resource for 2025 (T2): EVs expected to reach
rebates for EV related purchases cost/ performance parity with ICEs
1990: ENTITY begins implementing policies to 2014: ENTITY allows IOUs to own
reduce emissions from transportation energy transportation electrification 2030: ENTITY to have 5M EVs on the road
infrastructure on a case-by-case basis based on goals set by Gov. Brown
2025: ENTITY Air Resources

2006: AB 32, Global Warming Solutions Act Board (CARB) voted 14% or
passed to reduce greenhouse gas emissions 1.5M of auto sales to be for EVs
(GHG) to 1990 levels by 2020 by 2025
2012: Gov. Brown issues executive order

2050: Gov. Brown targets all
to fund EV charging stations across ENTITY
personal vehicle purchases to be EVs
462
Policies, prices, and consumer appeal are driving the
P E S T adoption of EVs in ENTITY
EVs are expected to reach cost and performance parity with internal
combustion vehicles (ICE) by 2025 in California 1
$700
Period of EV & ICE parity
$600 (cost + performance)
Fully delivered
ENTITY passed the requirement that all major
cost of electricity automakers must derive 14% of sales from EVs
$500 in 2025.
2
$/MWh
$400
2
Cost of transmission
67% of ENTITY respondents for a 2016 survey
$300 and distribution conducted by UCS showed interest in EVs.
$200 75% of respondents were not aware of ENTITY

3 .
EV incentive programs
Non utility solar
$100
+ battery LCOE
$0
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35
463
Customers will seek optimized charging strategies
P E S T and increased outlet availability
Drivers for charging optimization 1
1) Smart applications and software to enable smart charging
2) Fast charging stations
2,3
Cumulative EV charging outlets and EV sales in California
100,000 1200
90,000
1000
80,000
70,000 The ENTITY has funded the placement of enough
# charging outlets
800
# BEVs and PHEVs
60,000 charging outlets to support the expected number

50,000 600
of EVs in ENTITY.
40,000 ENTITY is one of the funded IOUs in ENTITY,

400 4
30,000 presenting opportunity for further brand
20,000
200
building.
10,000
0 0
1 2 3 4 5 6 7 8
Series1 Series2
464
Microgrids will create opportunity and competition for
P E S T utilities
Key impacts of microgrids on the energy market 1
1. Increased opportunities for partnerships with large communities
2. Increased threat of grid defection from large corporations
Different spaces within the microgrid market 2

1. Distributed generation 2. Battery storage 3. Controls and systems 4. Distribution
Microgrids provide the opportunity Focus is shifting on setting up a • Controls systems are invested in Customers range from single-
to focus on increasing reliable charging network in to manage the distribution of the home residential, office buildings,
ENTITY for the progressing mass energy generated in the microgrid
renewable energy generation. communities, militaries, schools,
adoption of EVs. efficiently. plus utility-scale microgrids.
ENTITY Electric offers microgrid controls technologies, such as their EcoStruxure

solution which is IOT-enabled.
465
Microgrids have proven to be helpful in mitigating outages
P E S T
during natural disasters
1882: Thomas Edison opened the 2012: Superstorm Sandy showcases the 2018: CEC allotted $50M to boost
Pearl Street station – first microgrid benefits of microgrids in Northeast US commercialization of microgrids
2036 (T3): T&D cost

parity with storage
2028: (T1) Grid-cost parity

expected in California
1955: Whitling Refinery in Indiana –

2018: Gov. Brown signed
the first modern industrial microgrid
microgrid bill (SB 1339) to boost
project development in ENTITY
466
Non-residential customers are expected to be the largest
P E S T
microgrid adopters in the next 5 years
1 Case study: Brooklyn Microgrid
Cumulative microgrid capacity in the U.S. Customers wanted to...
(by owner type, 2014-2020)
3500
3000 Increase use of renewables Share excess energy

Building the digital grid to make it happen
LO3 Energy worked with Siemens to build a network of the
2500
community's rooftop solar. The first transaction occurred in
Capacity (MW)
April 2016.
2000
Success in the digital space
Approximately 60 prosumers utilize the trading platform to
1500
exchange renewable energy certificates. The platform uses
blockchain to track transactions and identify any needs for
1000 replacement parts for participants.
Ways to go in the physical arena

500 Physical flow of energy still centers on the main grid.
Prosumers do not actually purchase energy, only renewable
0 certificates, making it a digital microgrid but not a physical
1 2 3 4 5 6 7 one.
Series1 Series2 Series3 Series4 Series5 Series6 Next steps are to add grid-based energy storage to increase
resilience in storms and consult with utilities and
regulators to build real physical infrastructure. 2
467
Solar PV is changing the energy generation and
P E S T consumer market
Key impacts of solar PV on the energy market 1
1. Movement towards distributed generation sources
2. Increased net metering customers
3. Increase demand for battery storage systems
Different spaces within the solar PV market
1. Generation 2. Net metering 3. Self-generation 4. Grid-tied
An increase in solar PV generation As solar PV continues to grow in Increased adoption of solar PV will Increased availability of energy
will improve the renewable ENTITY, there will be an increase in increase demand for storage from distributed sources will
net metering customers. systems to move energy reliance require improved grid
mix in ENTITY.
away from the grid. management technology and
further infrastructure investment.
ENTITY provides optimization, inverters, and monitoring of PV arrays to

optimize energy output.
468
Solar PV growth was accelerated by CA's renewable vision and
P E S T
continues to be supported by ENTITY policy
2018: Solar import 2020: Executive Order S-14-08

tariffs applied requires 33% renewable by 2020
1998: CEC charge to increase total renewable

energy production statewide
2022: Solar import
tariffs end
2006: Senate Bill 1 establishes 2020: ENTITY building code

renewable vision for ENTITY requires all newly constructed
homes to include solar
2045: ENTITY legislative goals to be

Carbon-free by 2045
469
Policies, regulations, and public appeal are pushing
P E S T adoption of Solar PV in ENTITY
1
Distributed solar PV as % of total demand
25%
22%
20%
Self-generation incentive program establishes
% of total demand
rebates and incentives for installation of solar

15% 2
PV, wind energy, and batter storage systems in ENTITY.
10% 10%
ENTITY Energy Commission has added the
7% requirement for new homes to include solar
beginning in 2020, adding to the growth of solar in
3
5%
4% ENTITY.
3%
0%
1 2 3 4 5
470
Corporations and 3rd party owners are expected to
P E S T account for a majority of the solar PV market
Non-residential installed capacity by ownership type 1

2,500
2,000
1,500 Third-party implementation and ownership of solar

PV for non-residential customers make up 53% of the
MWdc
current market and is expected to grow 25% by

1
1,000 2021.
500
-
2010 2011 2012 2013 2014 2015 2016 2017
3rd part owned - 3rd party owned -
Customer-owned
community remaining
1. https://www.greentechmedia.com/articles/read/commercial-solar-expected-to-be-78-third-party-owned-by-2021#gs.NJaS9zY
471
Battery storage is necessary for the growth of EVs, solar
P E S T reliance, and increased use of renewables
Battery storage improvements will drive multiple changes in the energy market
1. Increased efficiency and storage of renewable energy generation
2. Improved grid stability for grid-connected systems
3. Encouraged off-grid capability, especially for solar PV systems
Different spaces within the battery storage market
LOGOS DELETED
1
ENTITY designs and builds solar cells for the PV arrays and provides a complete
system along with it.
472
Battery storage improvements have been supported by ENTITY
P E S T
regulatory bodies
2010: CEC invests in BSS projects to 2036 (T3): T&D cost

showcase their potential parity with storage
2008: Coupled battery storage systems (BSS)

included with the Self-Generation Incentive 2015: ENTITY and CEC host workshop to
program accelerate bulk energy storage
2009: SB412 includes the 2028: (T1) Grid-cost parity

incentivization of stand-alone BSS expected in California
2013:Decision 13-10-040 sets storage

procurement target to 1% of 2020 annual
peak load
473
Batteries can provide up to 13 services for 3 stakeholder
P E S T groups across the organization
Backup power Energy arbitrage

Monetizing customer service’s batter value streams
Increased PV self-
Spin/ Non-spin will require regulatory cooperation.
consumption
reserve
le
sib
Multi-benefitor rate design and policies will need to
os
Demand charge Frequency
tp
no
reduction regulation be developed and executed for the utility to benefit

e
vic
from the entire range of revenue streams.1

Service
r
Se
not Voltage
possible support
Time-of-Use bill
management
Black start
INFO DELETED
Distribution Resource
deferral Adequacy
Transmission Transmission
deferral congestion relief
474
Energy management systems and efficiency programs
P E S T help maintain ENTITY energy consumption levels
Energy management systems (EMS) and energy efficiency programs (EE) impacts to the ENTITY energy market
1. Empowered customers with management and incentives to control their consumption
2. Utility-scale efficiency to adhere to regulations and keep in-step with customers
Different spaces within the energy efficiency market 1

1. Smart technology 2. Customer-driven efficiency 3. Utility-scale efficiency 4. Rebates & Incentives
Smart control technology enables Efficiency programs incentivizes and Utility-scale management tools Rebates and incentives encourage
customer and utility control and encourages lower consumption. improves behind-the-meter investment in energy saving
analysis of usage. efficiency. technology, behaviors, and
structural decisions.
ENTITY provides a cloud-based demand side management solution, which combines

energy efficiency, DR, and HVAC performance monitoring.
475
Energy efficiency goals and programs have worked towards
P E S T
reducing emissions over 40 years
2030: Clean energy and pollution reduction act

passes to require 50% renewable electricity
2008: ENTITY funds $2B for 2 years to and double additional energy efficiency
finance energy efficiency via utilities, local
governments, and implementers
1970: CEC developed first energy
conservation standards for buildings and
appliances
1987: National Appliance Energy Conservation

Efficiency Act passes
2012: Gov. Brown uses executive order

requiring state agencies to reduce GHG 2017: 70,000 GWh saved from efficiency
emissions and conservation savings in ENTITY
476
EMS and energy efficiency maintain stable consumption
P E S T levels in ENTITY
1
Average yearly consumption: ENTITY v the
US
12,000
Customers are driven to control their consumption

10,000
due to savings potential and environmental
concerns.
8,000
Annual KWh
Leads to increased investment in energy

6,000 management tools, addition of self-generation
sources, and manual reduction of energy
consumption despite increased demand. 2
4,000
2,000
1970 1980 1990 2000 2010
477
Regional Factors
Socio-
environmental
Regional factors
Socio-
environmental
Policy and regulation is reflective of consumer needs and
P E S T drives adoption of renewables
Key impacts of policy and regulation on the energy market
1. Accelerating the movement to renewables
2. Customers are incentivized to move towards self-generation
Parts of the IOU regulation landscape

1. Government 2. ENTITY Energy Commission (CEC) 3. ENTITY Public Utilities 4. IOUs
Commission (ENTITY)
Federal and state government set The CEC is responsible for state- The ENTITY regulates IOUs and IOU reviews regulations and works
the vision and goals for the wide regulation, including public ensures compliance with with the ENTITY to implement
energy market through legislation. utilities, power plants, and statewide ENTITY state legislature. programs and rate structures
programs. in line with regulations and
objectives. 1
480
Increasing renewable policy and regulations reflect continued
P E S T
support for clean energy from ENTITY residents
2020: ENTITY building code requires all 2045: State Bill 100 to
newly constructed homes to include become Carbon-free
solar by 2045
1998: CEC charge to increase total renewable

energy production statewide
2018: Solar import
tariffs applied 2022: Solar import tariffs end
2020: Executive Order S-14-08

2006: Senate Bill 1 establishes renewable vision requires 33% renewable by
for ENTITY 2020
2030: State Bill 350 requires ENTITY

to become 50% renewable by 2030
481
Policy and regulation are driving renewable adoption
P E S T in the California market
1
Increasing renewable ambitions in ENTITY
120%
Solar ENTITY
import goal to be
100% tariffs end 50%
renewable Recent ENTITY state legislation set the
objective for 100% renewable energy
% Renewable mix per IOU
80%
Solar required in procurement by 2045.
new ENTITY
60% homes
California is poised to meet 50% renewables
40% ENTITY target ten years ahead of its 2030 target.2
goal to be
100%
20% renewable
1
0%
1 2 3 4 5 6 7
482
Legislation passed to require new homes built in
P E S T ENTITY to include solar panels to produce at least 3 KW
Residential solar forecast with addition of 2020 requirement 1
1,800
1,600
1,400
An increase in solar households will increase the
1,200 number of net metering customers, and NEM rate
Capacity (MWdc)
reform would reduce benefits by 31% to

1,000 accommodate for the increase.
800
Non-solar households pay an
600
additional $65 per year for T&D due to solar
households. 2
400
200
2018E 2019E 2020E 2021E 2022E 2023E
Q1 2018 Base-case forecast New build ENTITY
483
A solar import tariff adds to the cost of solar
P E S T installations and will decrease panels installed
Cumulative US solar installed capacity, 2018E-2022E 1
80,000
-8.3% -48.2% Tariffs would equate to approximately 8.3%
decrease in expected solar market growth in the
US.
Solar deployment (MWdc)
60,000
10% increase in installations of utility-scale
solar projects despite tariffs.
40,000
3-4% increase in the cost of a typical

residential solar panel installation.
20,000
$2.5B in canceled or frozen projects due

1
to the solar tariffs.
0
Base Case 10c/W Tariff 40c/W Tariff
Tariff amount (cents per Watt)
484
Regional factors
Socio-
environmental
CA’s energy economy is outpacing the growth in the rest of the
P E S T
US
The ENTITY energy economy is outpacing the rest of the US due to its investment and focus1on
1) Integrating distributed energy resources in the grid
2) Clean energy goals set by the ENTITY regulatory and legislative bodies
3) Opening the market to new players with the increase in new technology and shift towards distributed generation
Three key elements describe the current growth of CA’s energy economy
ENTITY renewable goals are

ENTITY has more than 540,000 jobs in
driving investment in clean
clean energy and is expected to grow
energy
10%
CAISO reforms are opening the market Utilities are integrating

to distributed energy resource providers distributed energy resources
486
Regional factors
Socio-
environmental
Community Choice Aggregation (CCA) is a competitor for
P E S T the electricity customer relationship
What is Community Choice Aggregation (CCA)? 1
1) Municipal organization representing at least one community
2) Purchases electricity on behalf of the community
Current CCA formation and customer appeal
CCAs are currently able to provide lower rates due to

low costs of renewables and freedom to engage
short-term contracts.
Lower rates, due to current Higher renewable mix with Customers are defaulted to ENTITY regulations require CCAs to enter long-term
lower cost of renewables “greener” rate options for the CCA in their area and 2
customers must opt-out to be service generation contracts by 2021.
by the local IOU
Place in the market
CCAs rate charges appear on the customers’ bills as a

line item for energy generation.
IOUs maintain charges for use of the

Can only form in areas Billing and transmission CCA responsible for load transmission and distribution network, plus other
served by IOUs remain the responsibility of estimation and energy program fees required by ENTITY.
the IOU procurement
488
Community choice aggregation is altering the ENTITY
P E S T electricity landscape
Key impacts of CCAs 1
1. Takes on responsibility for energy purchases and generation
2. Becomes main point of customer relationship
The energy value chain with CCAs 2

1. Load estimation 2. Energy trading 3. Transmission and distribution 4. IOUs
CCAs estimate the load required to Short-term energy contracts are CCAs do not own delivery The local IOU processes billing and
serve their community. purchased based on the infrastructure and must use IOU- customer service requests. The
renewable and rate goals owned transmission lines. IOU takes their portion of payment
estimated by the CCA. before forwarding to the CCA.
489
CCAs will be required to enter long-term energy contracts after
P E S T
2021, reducing their agility in the market
2010: First CCA in California was formed –

Marin Clean Energy
2035: ENTITY CCA feasibility

1997: The first CCA was established in the US
2018: ENTITY County conducts feasibility study estimated 100%
– Cape Light Impact in MA
study for CCA renewable energy
2021: 65% of CCA renewable

2002: ENTITY state legislature passed AB 117 2045: ENTITY legislative
generation required to be from
enabling formation of CCAs goals to be Carbon-free by
contracts longer than 10 years
2045
2011: ENTITY state legislature passed SB

790 detailing rights of CCAs
490
Customers are moving to CCAs due to lower rates
P E S T and higher renewable mixes
1
ENTITY IOU v CCA market share
90%
80%
70%
2.5M customers are served by CCAs today, with
60% 50-80% IOU load departure estimated by
50%
40%
2030.
30%
20%
10% Short-term contracts enable CCAs to provide
0%
1 2 3 4 lower rates to customers.
IOUs CCAs
3
Current average CCA rates are 0.1-2.1% lower
A similar pattern was seen when the UK market opened to new entrants than IOUs.
2
Established
100% 99% 99% 98%
100% 93% 90% New entrants
Retail market share
86% 81% 79% CCAs advertise higher renewable mixes

80% compared to IOUs.
(%)
60%
40%
21% Average CCA renewable mix: 52%
14% 19% 2
20%
0% 1% 1% 2% 7% 10% Average IOU renewable mix: 44%
0%
2010 2011 2012 2013 2014 2015 2016 2017 2017
Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q4
491
Key ENTITY decisions impacting the future of CCAs:
P E S T PCIA and contract requirements
Power Charge Indifference Amount (PCIA) calculation
2022-2026 estimated base rate comparison: ENTITY v CCA as ENTITY decided to raise costs for CCA and direct
presented by the ENTITY CCA feasibility study 1 access customers to mitigate cost shifts to remaining
bundled customers.
5.24% increase to ENTITY CCA customers’ bills.

Base rate ($/kWh)
PCIA calculation would now include legacy

generation costs incurred for investments for
newly defected customers.2
Energy purchasing contract length

Recent ENTITY regulations require CCAs to provide at
least 65% renewable energy from
contracts longer than 10 years by 2021,
reducing the potential for CCAs to provide lower rates
Base case Low PCIA High PCIA to customers.
2.5% decrease in 2020 10% increase in PCIA in 2020
Lack of credit scores may make it difficult for

3
CCAs to engage in cost-effective, long-term contracts.
492
Regional factors
Socio-
environmental
The ENTITY consumer privacy act will impact how ENTITY
P E S T
manages and uses customer data
Under the ENTITY Consumer Privacy Act (CCPA), ENTITY customers have the right
to: 4) Access personal information in a usable format for transfer to third parties
1) Be informed about what and why data was collected 5) Receive equal service, even if they exercise their privacy rights
2) Request deletion of personal information
3) Opt out of sale of personal information
Personal information under the protection of the CCPA include:
Personal identifiers Geolocation Biometrics Browsing history Psychometric data Company-made inferences
Impacts to ENTITY:
Targeted advertising may become less precise Upheaval and reorganization of existing data to Investment in software, tools, or processes to
as consumers pull and safeguard their data. track and prepare it for compliance in 2020. enable efficient transferring, requests, and
deletion of data. 1
494
Integration of technology accelerated by supporting
policies will set utilities next to tech goliaths and industry
disruptors
2018 2021 2023 2025+ Beyond
ENTITY to
Withdrawal from the Presidential election Increased data privacy Fully
reach 100%
Paris Agreement requirements renewable by 2045 Integrated
New homes to Solar import Energy
Politics
include solar in Development of smart city

Increased data tariffs end market
ENTITY integration with renewable and
privacy policies mobile technology
Commercial integration/ investment
Major commercial in community microgrids EV performance/cost
customers move off-grid parity with ICEs in
Large commercial Increased EV ENTITY
Increased investment Movement to sales in ENTITY
customers increase
in self-generation community-based driven by policy
purchase of renewables
Economics
Increased number of generation systems

NEM customers Smart home device integration
Increased availability with local generation sources
Removal of US power
Battery storage system of EV-to-grid
plant emission cap
prices continue to decline technology AI-driven distributed energy
AI-driven customer service resource management
Spurred interest and
IPCC report
development of more
implores action to
Socio-environmental
AI-enabled Divergence of EV blockchain-enabled microgrids AI-enabled smart

prevent negative impacts and standalone battery
solar optimization home devices
of climate change technology
Microgrid projects receive funding,
Replacement of ENTITY government I.e. ENTITY Naval Base Increased public
Reduced cost and increased
federal emission support to build EV interest in
incentivization of battery Blockchain-driven P2P energy trading
reduction goals with state charging network smart devices, i.e. Nest
storage on microgrid
Solar Battery Storage EV Microgrids Energy efficiency
495
ENTITY: Target Operating Model Design
Quick Win handbook
The EY team sat in the contact center to listen in on calls and identify
potential areas for improvement
EY team members conducted contact center sit-ins
Potential benefit Ease of implementation
to collectively listen to over 600 minutes of calls
High-level assessment of initiative benefit High-level assessment of ease of implementation
to better understand existing functions and
highlight potential opportunity areas High 43% High 40%
30 Potential impact initiatives identified Medium 71% Medium 78%

Of initiatives identified have
~25% potential high benefit and high

ease of implementation
Low 100% Low 100%
Categorization of initiatives Top 5 themes identified

Systems
<5% People related Technology observations that impacted ESS resolution or customers inquires
~20% Billing queries

Customer billing inquiries and ability for ESS agents to resolve customer questions or issues
Technology-related
Self-service questions
Questions about self-service functionality, including confirmation of transaction or question
Collections process
Processes around enforcing payment collections and resolving customer payment inquiries
~75% ESS capability
Process-related Tools and enablers that support ESS duties and customer inquiries
497
The 30 observations were prioritized to identify the top 10 quick win
initiatives

Quick win
9
A
Higher
C
3 F8 1
B
6 G
J 5 2
D
Strategic alignment
I

Lower
Lower Operational feasibility Selected for implementation

Higher
498
Over the next few weeks, we will work together to begin
implementing two high priority quick win initiatives
Objective Key Work Products Dependencies or Risks
This plan focuses on the process of implementing quick wins  Two quick win initiatives in implementation  Scheduled approval at identified gates
and guiding a representative from the Contact Center through  Any work products as defined in the solution outlines  Data for current state assessment provided in timely manner
the six-step process.  Capacity from Contact Center representative
Actions Week
Mar 11 Mar 18 Mar 25
Onboarding and initial work
Prioritize quick win initiatives and develop templates
Onboard Contact Center representative
Define problem statements and perform current state analysis
Solution development
Hold root cause workshop
Develop solution outline and artifacts
Implementation and tracking
Develop implementation plan and success monitoring
Implement and monitor initiatives
Meeting for approvals
499
Quick Win Process Handbook
For quick win initiatives, a rapid six-Step framework supports
operationalization of initiatives
Quick win Establishing a process for quick win initiatives

List of prioritized quick win initiatives
Actions
1. Define problem statement: why was this idea was proposed?

2. Assess current state: what impact has this problem had on ENTITY? Illustrative: six-step framework
3. Identify root cause: what is the underlying cause of this problem?
4. Develop solution outline: what is the best solution for this problem?
5. Create implementation plan: how should this solution be implemented?
6. Establish tracking: which KPIs will reveal the success of this solution?
501
In Step 1, quick win initiatives are formed into problem statements
Step 1 Defining the problem statements. High priority quick wins and observations are formed into problem statements
Inputs Actions Outputs and artifacts
Describe the concern, problem, or opportunity
List of prioritized quick List of problem statements

win initiatives
Critical Success Factors

Capture the frequency, magnitude and severity of the problem and the affected part of the process in a short 25-45 word
summary:
 Specific – A precise statement of the problem
 Measurable – Able to measure progress towards fixing the problem
 Attainable –The problem is fixable
Tools
 Relevant – Of importance to the individual/organization
 Time bound – A defined timeframe for achieving the goal Problem
Stakeholder
 Explained in simple terms – Avoid using technical language and assigning cause or blame statement
assessment
structure
502
In Step 1, quick win initiatives are formed into problem statements
Describe the concern, problem, or opportunity

Step 1 Activity
Ensure that the problem described is a known, verifiable and measurable fact rather than a guess or assumption
List of problem
statements
Tool/ Method Purpose Guidance
Problem statement structure Clearly outlines the components and impacts • What impact does this problem have?
of a problem • Which teams are most affected?
• Is the problem impact measurable in some way?
503
In Step 2, analysis is performed to understand the current state
Step 2 Assess the current state to understand the environment and factors contributing to each high priority problem statement.
Analyze current state data
Data request
Develop business case Current state
analysis

 Understand the available data
 Definition of a set timescale – the baseline period must be long enough to include a sufficient number of data points
 If required, collect new data to understand the historical behavior of the process
 Validate data sets and share with the business to ensure data integrity, giving a clear view of what needs to be improved
and a baseline against which to validate improvements or prioritize problem statements Business
Tools case
 Assessment of the end-to-end process to understand cycle time and distribution template
 Use the correct graphs/charts to present findings Data Data
 Validation of the analysis by a reviewer who has data knowledge of the process request analysis
template template
504
Analyze current state data

Step 2 Activity
Ensure that the problem described is a known, verifiable and measurable fact rather than a guess or assumption
Current state
analysis
Data request template To assess the current state of the problem • How can we measure the impact of the problem?
statement, the proper data must be identified • Are there specific metrics that led to the identification of the
and requested problem?
Data analysis template To outline the key components of data analysis • Are there any visualizations specifically requested by stakeholders?
for effective assessment of the current state • Is this data currently visualized? How? Can it be visualized more
effectively?
Stakeholder assessment Determines which roles in the organization • Which teams are impacted by the problem?
may be involved or be impacted with each • Which teams perform actions that lead to the problem?
quick win
505
Develop business case

Step 2 Activity Understand the overall impact of the problem on the business and what benefits could result from
implementing a potential solution Current state
analysis
Business case template To outline the key components of a business • What is the impact of this problem to the business?
case for the consistent outlining of the • Has this issue impacted other organizations? What did they do to
situation, problem, and analysis of potential resolve it?
solutions • What are some potential causes and solutions to this issue?
506
Gate 1: Prioritizing problem statements and validating research in
preparation for root cause analysis and solution development
Create
Define problem Assess current Identify root Establish Establish
implement- Deployment
statement state cause tracking tracking
ation plan
1. Define problem statement 2. Assess current state 3. Identify root cause

Customer calls exiting through ‘general’ or ‘default’ IVR
There are a high volume of calls into the contact center
tree has seen a CAGR of 11% since 2016, which calls
where the customer is incorrectly routed. Potential
outside have seen a modest increase
impacts include increased call length, increases ASA, and
customer dissatisfaction 1%
Scope Out of scope
• IVR Routing • IVR tree and +11%
• Agent training navigation
• IVR Prompts adjustments
2016 2017 2018 2016 2017 2018
6. Establish tracking 5. Create implementation plan 4. Develop solution outline
507
In Step 3, the underlying cause of the problem is uncovered
Step 3 Identify root cause of each problem statement. What is really causing this issue?
Generate potential contributory factors
Hold root cause workshops
Validate and prioritize hypotheses

Current state
Root cause analysis
analysis Validate root causes with stakeholders

 Identify the problem correctly – Always ensure it is the problem itself you are identifying and not a symptom of the
problem
 Keep it simple and practical – Make workshops brief and action-oriented, and use open questions with an exploratory
nature
 Identify the Root Cause, not who is to blame – Avoid the tendency to mistake the question ‘Who?’ for ‘Why?’ Ishikawa
Tools
 Engage with multiple individuals to ensure different views from the business are captured diagram
 Test root cause data for statistical significance – when using sample sizes and averages, one number compared to another Data 5 whys
can look like an issue analysis analysis
guidelines template
508
Generate potential contributory factors

Step 3 Activity Create an initial list of the most likely causes for further investigation by order of magnitude based on the
current state analysis List of potential root
causes
Data analysis guidelines To create an effective base board for root • Does the problem become apparent over time?
cause analysis and allow for investigation as • Does the problem impact certain types of customers?
required • Does the problem impact organizational performance or efficiency?
5 whys analysis To decompose the problem from an • Why is this a problem?
organizational or process perspective and • Why is the impact considered negative?
identify a potential root cause • What is the first action that generates this problem?
Ishikawa diagrams To evaluate the problem statement from • Which processes are related or affected by the problem?
multiple perspectives to identify the area of • Can the problem be isolated to one system or department?
root cause
509
Hold root cause workshops

Step 3 Activity
Collaborate with key stakeholders to determine root causes leading to the identified problem
List of potential root
causes
Root cause workshop To outline the key components and outcomes • Which activities would be best suited for brainstorming root causes
checklist of the root cause checklist of this problem?
• What are some potential root causes for this problem?
510
Validate and prioritize hypotheses

Step 3 Activity Create and review hypotheses stating impacts and root causes of the identified problem; prioritize hypothesis
based on impact to business List of potential root
causes
Hypothesis statement To outline the key components of a successful • What about the root cause indicates relation to the problem?
template hypothesis statement
511
Validate root causes with stakeholders

Step 3 Activity
Validate root causes with key stakeholders to ensure team is proceeding correctly
List of potential root
causes
List root causes List the potential root causes in a prioritized • N/A
and consolidated manner
512
In Step 4, the solution is determined and outlined
Step 4 Develop solution outline. Detail the elements and concept of the proposed solution and share with stakeholders.
Generate solution
Prioritize solution elements
Map and communicate proposed solution

Current state Solution outline
Root cause analysis
analysis Validate solutions with stakeholders

 Every root cause advanced from the step 3 must be addressed
 Each solution element should have SMART objectives and clearly state the relevant process owner
 Be mindful of timescales and consider how long it will take to implement potential solutions
Tools
Solution Opportunity
workshop prioritization
checklist matrix
513
Generate solution
Step 4 Activity Hold workshops and consult specific stakeholders to produce a list of potential solutions for each of the root
causes identified Solution Outline
Solution workshop checklist To discuss the root cause identified and • What are some potential root causes for this issue?
brainstorm potential solutions
514
Prioritize solution elements

Step 4 Activity
List solution elements and prioritize based on level of impact and cost to implement
Solution Outline
Opportunity prioritization To prioritize potential solutions and identify • What is the benefit of each solution?
matrix the solution for deployment • What is the cost or requirement for each solution?
515
Map and communicate proposed solution

Step 4 Activity
Outline solution along with benefits, costs, and elements to communicate solution clearly to key stakeholders
Solution Outline
Solution outline template To provide a concise outline of the solution • What impact would this solution have to the problem?
listing its benefits, costs, and high-level • What are the high-level activities required to implement this
activities required for implementation solution?
516
Validate solutions with stakeholders

Step 4 Activity
Review solution and requirements with key stakeholders
Solution Outline
Review solution outline To review the proposed solutions with key • What are the key impacts and requirements of each solution?
stakeholders
517
Gate 2: Identifying root cause and developing the solution for each
problem statement validates the quick wins with which to proceed
Create
ation plan

There are a high volume of calls into the contact center Ref Root Cause Validated?
outside have seen a modest increase IVR options are not comprehensive
impacts include increased call length, increases ASA, and
customer dissatisfaction 1 enough to align to customer No
1% inquiries
Scope Out of scope
Agents are manually transferring
2 No
• IVR Routing • IVR tree and +11% customers to incorrect departments
IVR input or speech recognition is
• IVR Prompts adjustments 3 causing routing inconsistencies No
2016 2017 2018 2016 2017 2018

Ref Potential solution Agreed?
Add additional IVR options without re-

1 vamping IVR tree No
2 Perform additional training or add No

automatic controls for transfers
Make minor adjustments to IVR

3 language processing algorithm No
518
In Step 5, the implementation plan is created
Step 5 Create implementation plan to detail resourcing, timing, and tasks to execute each solution.
Clarify the actions required
Establish a realistic timeframe
Consider external factors
Solution outline Assess impact of change on the business Implementation

plan
Sign off implementation plan

 Well-defined solutions must identify any sub components so they can be separated on the implementation plan
 Consideration of the capacity of all affected sections of the business is essential to manage stakeholder expectations from
the start
 Realistic but challenging implementation target dates help drive adherence to the timeline set forth
Tools
Implement- Solution
ation plan elements
template tracker
519
Clarify the actions required

Step 5 Activity List the key implementation tasks for each solution element on the plan with clearly assigned roles for each
activity to ensure accountability Implementation plan
Solution elements tracker To organize the elements of the solution and • What are the key outputs of the initiative?
track their completion • What are the key activities that build each output?
• How would successful use or implementation of each output be
measured?
520
Establish a realistic timeframe

Step 5 Activity Identify time required to complete each task within the organization considering factors such as resources
working part-time vs. full-time on implementation Implementation plan
Implementation plan To structure each solution’s implementation • Which activities need to be completed to implement this initiative?
template plan across time and resources • How much time will each activity take?
• What are the interdependencies between activities?
521
Consider external factors

Step 5 Activity
List potential external factors that may impact the implementation plan and timeline for the solution
Implementation plan
List external factors To think through external factors that may • Which processes are related to the processes impacted by the
impact the implementation activities or solution?
resources • Are there any events occurring during this time that require outputs
from this process?
522
Assess impact of change on the business

Step 5 Activity
Review potential impacts to the business such as a change in roles or process requirements
Implementation plan
Change impact template To outline the key changes to the business • With implementation of this solution, is additional responsibility
from the implemented solution such as added to a role or does responsibility shift from one role to
changes to activities for a specific role another?
• Does the solution impact how certain activities are completed?
523
Sign off implementation plan

Step 5 Activity
Review implementation plan with key stakeholders and receive final approval to implement solution
Implementation plan
Review implementation plan To review the implementation plan elements • What is the high-level roadmap for implementation of this solution?
with key stakeholders for sign off and • Which resources and how much time does implementation require?
deployment • What are the key dependencies for this solution?
524
In Step 6, tracking practices and metrics of success are established
Step 6 Create implementation plan to detail resourcing, timing, and tasks to execute each solution.
Validate initial improvements
Feedback to the business
Monitor process performance
Respond to performance deviations
Measurement Post go-live Evaluate the project
framework analytics
Close down the project
Measurement Customer and
results employee feedback
 Control the future state process to ensure that any deviations from target are corrected before they result in defects
 Key questions to ask:
 How do you know the problem has been reduced?
 How do you know that the problem will not reoccur?
 What did you learn while leading the project? Tools
Escalation
process
Performance Tracking
dashboard cadence
525
Validate initial improvements

Step 6 Activity Refer back to the Step 2 analysis activities and repeat the analysis to quantify the improvements made by the
solution on the specified KPI metrics (comparing the baseline analysis with current performance) Measurement results
Tool/ Method Description Guidance
Performance dashboard To establish measurement and cadence of • How would this initiative impact the key Customer Services metrics?
identified performance metrics to assess the • If not apparently reflected in key KPIs, which lower level metrics
health of a solution on a regular basis does this initiative impact?
526
Feedback to the business

Step 6 Activity
Review impacts of solution and present results to the business
Measurement results
Feedback template To acquire feedback in a consistent format to • What are the key impacts to stakeholders?
present back to the business and close the • How have activities changed for any stakeholders?
project • What is the sentiment of involved parties regarding the initiative?
527
Monitor process performance

Step 6 Activity Establish performance monitoring cadence and reporting; integrate into BAU reporting and monitoring where
possible Measurement results
Tracking cadence Established tracking schedule to ensure • What are the notification thresholds or target improvements for this
continuous monitoring of the solution, initiative?
includes hand-off to business-as-usual • How often should this initiative be checked/ tested?
employees
528
Respond to performance deviations

Step 6 Activity Identify deviations from expected performance and resolve where possible; Conduct assessment step when
necessary to develop another solution Measurement results
Escalation process Process used to escalate identified issues with • How should issues regarding this initiative be prioritized?
the implemented solution • Which team receives escalated issues?
529
Evaluate the project

Step 6 Activity Gather feedback from key stakeholders, performance metrics, and outline key developments and benefits from
solution implementation Measurement results
Lessons learned template To create a consistent mode of communication • What were the obstacles in executing on this initiative?
for lessons learned • Were there any preparatory activities that would have prevented
any delays or errors in implementation?
530
Close down the project

Step 6 Activity
Present final results to key stakeholders and hand off operations to BAU teams
Measurement results
Project close template To layout key outcomes and impacts made • How were the actual benefits of the solution compared to the
with the solution implementation, summarize expected?
lessons learned and feedback, and • What were the key impacts and lessons learned?
communicate hand off to BAU resources • Which hand off activities have been completed and which require
additional support?
531
The solution has been successfully implemented and deployed, and
the project has been closed and signed off
Create
ation plan

There are a high volume of calls into the contact center Ref Root Cause Validated?
outside have seen a modest increase
impacts include increased call length, increases ASA, and IVR options are not comprehensive
customer dissatisfaction 1 enough to align to customer No
1% inquiries
Scope Out of scope
2 Agents are manually transferring No
• IVR Routing • IVR tree and +11% customers to incorrect departments
IVR input or speech recognition is
• IVR Prompts adjustments 3
causing routing inconsistencies
No
2016 2017 2018 2016 2017 2018

Illustrative: Metric/KPI tracking Ref Action Owner Date Status
Ref Potential solution Agreed?
Add additional IVR options without re-

% calls routed incorrectly
1 vamping IVR tree No

1 TBD TBD TBD
2 Perform additional training or add No

2 TBD TBD TBD automatic controls for transfers
Make minor adjustments to IVR

3 TBD TBD TBD 3 language processing algorithm No
1-Jan 1-Feb 1-Mar 1-Apr
532
LOGO DELETED
533

Target Operating Model - Customer Service

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Target Operating Model - Customer Service

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ABOUT THIS DOCUMENT

SOW ID 81: Target Operating Model

Version No. 0.7

Document Version Control

Customer Services’ Target Operating Model (TOM) overview

Our approach for Customer Services’ Target Operating Model

Baseline customer service performance • CS Baseline Holiday

Target Operating Model overview

What is the Target Operating Model for Customer Services?

Vision and strategy

Channels Why do we operate the way we do?

What capabilities are needed to

How will these objectives and

Vision workshops Idea Gathering sessions Stakeholder interviews

Market assessment Customer services baseline Call listening

The Customer Services Target Operating Model work stream

Customer Services Target Operating Model: looking to 2025

The Mission Design Principles Vision Statements Key Decisions

‘Setting the direction’ ‘Making it real’

The Customer Services’ mission articulates where we want to take

The Customer Services’ mission is elaborated on in the

We put customers first and provide an effortless service experience

We prioritize digital solutions for our team and our customers

We add value to customers by connecting them to relevant energy offerings

We have agreed to a set of vision statements across each of the

Brand & Offerings People &

Customer Services leadership proposed some early key decisions to

Question asked TOM Decision

• We will use Customer Effort Score to measure performance across customers

Based on our assessment, we have developed a TOM roadmap that

Delivering and implementing the TOM to drive and measure

Vision & alignment: context and overview

Purpose of this section Key artifacts

1. Vision & 2. High Level 3. Operational

4. Customer 5. Customer 6. People &

Defining the Target Operating Model for Customer Services

Vision and strategy

Channels Why do we operate the way we do?

What capabilities are needed to

How will these objectives and

ENTITY is #1 nationally in Energy experts connecting

Innovation / product leader Customer service leader

Activity: what decisions will we make around the Operating Model

1 have been drafted to help assess current state

Products & services Sample question: what relationship do we want

Partners & suppliers

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What relationship do we want to have with the

How personalized will customers’ experience of

How will we support our customers’ needs?

Consensus reached in workshop Consensus based on plotted decisions

Case studies Example Design choice Example Case studies

How integrated do we want our channels to be?

How many channels can we be successful at offering?

To what extent will contact through our channels be

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How do we want our customers to perceive our

How targeted do we want our communications to be

One to many One to one

Consensus reached in workshop Consensus based on plotted decisions

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What will our product mix look like?

How diversified do we want our product and service