NYSEG Accident-free Driving: AGA Motor Vehicle Safety Achievement

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Allen Peterson, Manager Gas Operations Steven Hadcock, Health & Safety Compliance October 2016 NYSEG Accident-free Driving: AGA Motor Vehicle Safety Achievement www.avangrid.com 1

Who We Are IBERDROLA, S.A., a worldwide leader in the energy industry, owns 81.5% of AVANGRID. Avangrid Networks Avangrid Renewables RG&E NYSEG CMP MNG Berkshire Gas CNG SCG UI www.avangrid.com Top Of The Class AGA Motor Vehicle Safety Achievement 2

Where We Are www.avangrid.com Top Of The Class AGA Motor Vehicle Safety Achievement 3

NYSEG Natural Gas Service Area www.avangrid.com Top Of The Class AGA Motor Vehicle Safety Achievement 4

Safe Driving Demographics and Challenges Demographics of the natural gas business at NYSEG: 260,000 customers 4,772 miles of distribution main 238,467 services 194 Gas Operations employees 209 vehicles 2,410,650 miles driven in 2015 0 PMVIs Challenges: Rural roads Hills and curves Snow and ice Sudden changes www.avangrid.com Top Of The Class AGA Motor Vehicle Safety Achievement 5

Iberdrola Commitment to Become Best in Class Safety Transformation Initiatives: Reduce safety incidents 1. Telematics 2. PPE Standardization 3. Safety NET Program 4. Asset Safety Evaluation and Replacement 5. Requirements for Certain Types of Work (Live Work and Work at Height) 1. General Safety Training (For all Employees) 2. Manager/Supervisor Training 3. Driver Training 4. Mentor Program (MRO/Supervisor) Leadership & Accountability to achieve: 1. Top quartile safety performance 2. Reduced frequency & severity of incidents 3. Improved safety culture Improve safety communications 1. Communication and Outreach 2. Reporting of Results 1. Safety Structure/Process 2. Recognition & Accountability 3. Safety Observations 4. Standard Operating Procedures Strengthen safety training Increase safety ownership Not just driving, but all aspects of safety a culture change www.avangrid.com Top Of The Class AGA Motor Vehicle Safety Achievement 6

Avangrid Networks Safety Performance 2014 vs 2015 Safety Culture: It s Not About the Zero: Changing a corporate culture requires reaching into every aspect of the employees job, work processes and attitude. It takes time, is hard work, and is prone to uneven progress, but it can be done. 24 LT Dec 2014 Dec 2015 21 LT 91 NLT 64 NLT 70 PMVIs 59 PMVIs 256 minors 191 minors www.avangrid.com Top Of The Class AGA Motor Vehicle Safety Achievement 7

Results Example: PMVI Rates All OpCos Natural Gas/Electric www.avangrid.com Top Of The Class AGA Motor Vehicle Safety Achievement 8

Results Example: PMVI Rates - Natural Gas Business Only www.avangrid.com Top Of The Class AGA Motor Vehicle Safety Achievement 9

Motor Vehicle Incident Action Plan: Define the Problem Analysis of 2015 Motor Vehicle Incidents: Count of Nature of Incident/Vehicle Movement at Impact (Total %) Backing 8, 14% 4, 7% 23, 40% Following too closely Forward 17, 30% 3, 5% 2, 4% (NYSEG, RG&E, CMP vehicles) Insufficient Clearance Loss of control Turning www.avangrid.com Top Of The Class AGA Motor Vehicle Safety Achievement 10

Motor Vehicle Incident Action Plan: Develop Components AVANGRID Corporate-Sponsored Initiatives Communications Safety observation program Accident managerial review process Online driving training program Fleet Services Sponsored Initiatives Telematics Specified for all new vehicles beginning 2015 Active tender to retrofit all existing vehicles in 2016 Backing aids for all new vehicles as of 2013 Cameras and/or sensors Light duty leased vehicles Additional safety features All wheel drive, snow tires, backing cameras and sensors, heated mirrors High visibility seat belts, wheel lug indicators Heavy duty vehicles LED beacon lights to improve visibility Supervisory and Individual accountability always and everywhere Daily and pre-job safety discussion, post-job safety review, safety observations Stop backing up or use a spotter Parking judgment and spotter www.avangrid.com Top Of The Class AGA Motor Vehicle Safety Achievement 11

Plan Component: Communications Weekly Employees accident targets and data, contractors grading Monthly Internally: Employees accident targets and data, Incident Notifications, Safety Briefs, Iberdrola Safety Expresses To Global H&S: Employees and contractors accident data and Global H&S database application update Quarterly Leading indicators, H&S Plan, relevant incidents notification and investigation reports www.avangrid.com Top Of The Class AGA Motor Vehicle Safety Achievement 12

Plan Component: Incident Communications www.avangrid.com Top Of The Class AGA Motor Vehicle Safety Achievement 13

Plan Component: Accident Managerial Review Purpose: To develop, document and communicate a standard process to ensure all OSHA-reportable injuries and preventable motor vehicle incidents receive top-to-bottom managerial safety reviews. To ensure all employees receive the information to avoid a second occurrence of the same event (or incident). www.avangrid.com Top Of The Class AGA Motor Vehicle Safety Achievement 14

Plan Component: Accident Managerial Review Process: PMVI occurs: reported to supervisor and Health & Safety. Weekly notification bulletin is created and distributed to all employees. Department prepares managerial safety review document. Management chain (employee plus all levels of supervision) meets in-person with business leader (COO) to agree upon action items. Results communicated to all employees. www.avangrid.com Top Of The Class AGA Motor Vehicle Safety Achievement 15

Plan Component: Online Driver Safety Training Purpose: To increase driving techniques in order to improve safety and reduce traffic accidents and violations. Interactive program that puts employee behind the wheel, captures dynamics of real-world driving. Consists of 20 real-life driving scenarios and 28 theory-based multiple choice questions. Initial evaluation takes ~30 minutes to complete. Targeted Training Modules After employee completes the Hazard Perception Evaluation, they receive additional training modules to complete, based upon initial performance. The modules 15-20 minutes to complete. Each participant is required to achieve a grade of 90% on each module. www.avangrid.com Top Of The Class AGA Motor Vehicle Safety Achievement 16

Plan Component: Online Driver Safety Training The Training Curriculum (sample topics): Maneuvering in Tight Spaces Avoiding the Worst Collisions at Intersections Avoiding Rear-End Collisions Onboard Technology Distractions Anticipating the Other Motorist Aggressive Driving www.avangrid.com Top Of The Class AGA Motor Vehicle Safety Achievement 17

Plan Component: Telematics Fleet Monitor How it works: www.avangrid.com Top Of The Class AGA Motor Vehicle Safety Achievement 18

Plan Component: Telematics Fleet Monitor Available Telematics Data: Real-time data Vehicle location Vehicle speed Maintenance schedule Historical reports on all of the above Alarms for various conditions Speeding Idling Leaving service area www.avangrid.com Top Of The Class AGA Motor Vehicle Safety Achievement 19

Plan Component: Telematics Fleet Monitor Example of Alarm Conditions: www.avangrid.com Top Of The Class AGA Motor Vehicle Safety Achievement 20

Plan Component: Telematics Fleet Monitor Telematics Guiding Principals Defined Increase Safety: Speed Access to information Workforce awareness Coaching and education Increase Fleet Utilization Vehicle utilization Vehicle optimization Work planning Environmental Stewardship: Reduce fuel consumption and air emissions Reduce idling Route planning Increase Employee Knowledge Train and engage employees www.avangrid.com Top Of The Class AGA Motor Vehicle Safety Achievement 21

Plan Component: Telematics Fleet Monitor What Telematics Is: Opportunity to recommit everyone to safety. Tool to assist AVANGRID to provide best in class service at the lowest cost. Chance to incorporate 21st century technology and drive AVANGRID to be the best in the business. Ability for employees to be aware of their driving habits. Ability to locate vehicles easily, including locating employees in an emergency/storm situation. Opportunity to reduce true idling by using common sense and thereby significantly reducing unnecessary expense. www.avangrid.com Top Of The Class AGA Motor Vehicle Safety Achievement 22

Plan Component: Telematics Fleet Monitor What Telematics Is Not: It s not a gotcha program. It s not a hammer. It s not a micromanagement tool. It s not a program just for drivers of company vehicles. Everyone should be rethinking their actions and driving habits as if they had Telematics in their vehicles. www.avangrid.com Top Of The Class AGA Motor Vehicle Safety Achievement 23

Plan Component: Telematics Fleet Monitor Telematics Results: Savings: 7% reduction in fuel costs Potential to reduce underutilized vehicles Additional Benefits: Reduction in accidents Storm response Gas Operations response Ability to locate employees quickly www.avangrid.com Top Of The Class AGA Motor Vehicle Safety Achievement 24

Plan Component: Individual Accountability and Initiative Where it all comes together on the road: When a safe driving attitude permeates every driver decision before, during and after the trip: Daily and pre-job safety discussion Weather stand-downs Trip and job planning Post-job safety review, safety observations Limit backing up or use a spotter Parking judgment and spotter That s when the results happen. www.avangrid.com Top Of The Class AGA Motor Vehicle Safety Achievement 25

End Thank you. Any questions? www.avangrid.com Top Of The Class AGA Motor Vehicle Safety Achievement 26