31 companies responded representing 44% of all electric and natural gas utility employees

Respondents represent electric and natural gas operations in 46 states

Results do not represent Rural Electric cooperatives

Results are for non-nuclear generation, transmission and distribution

Survey Demographics

1

Employees are retiring after age 58 and 25 years of service – later than in previous survey results

Non retirement attrition is greater than previous estimates – 4.2% compared to 3.7 which may reflect moves within the company, but out of the skilled trades positions

What we learned

2

84% of respondents said they were not in a hiring freeze

But, 88% of respondents reported that their companies have slowed down hiring

30% of those in a hiring freeze expected it to last less than one year with the rest reporting the duration was unknown at this point

32% of respondents said they had some downsizing in 2009

Recruiting and Hiring

3

2009 Survey Results

4

2006 2007 2008 2009 -

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

Electric and Natural Gas Utility Industry Hires

Lineworker Technician Plant / Field Operators Pipefitters / Welders

Engineers

Industry hiring decreased by 56% from 2008 to 2009 with the

largest decrease in technicians and

engineers

2009 CEWD SurveyHiring by Function

5

2006 2007 2008 20090

1000

2000

3000

4000

5000

6000

7000

8000

Electric and Natural Gas Hiring by Company Function

Generation T & D

Generation hiring decreased by 49%

while T & D decreased by 60%

Skilled Trades SummaryYears of Service vs. Retirement Age

15

20

25

30

35

40

45

50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65

Aver

age

Year

s of S

ervi

ce

Average Age at Retirement

2006 2007 2008 Thru June 2009

Skilled Trades Retirement and Attrition

7Assumes an even age distribution for retirements over next 5 years

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 -

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

Cumulative Forecast of Potential Retirements

Actual Non-retirement Attrition Actual RetirementsAverage Non-retirement attrition Over Age 58 with 25 years of serviceOver age 53 with 21 years of service

2008 Age and Years of ServiceData reflecting Potential retirements for Skilled Trades

8

18-22 23-27 28-32 '33-37

38-42 43-47 48-52 53-57 58-62 63-67 67 plus

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Retained RetirementPossible Retirees Attrition

Summary Findings Estimated Number of Potential Replacements

9

Potential Replacements 2009 - 2015Job Category Percentage of

Potential Attrition & Retirement

Estimated Number of Replacements

Technicians 50.7 27,800

Non-Nuclear Plant Operators 49.2 12,300

Pipefitters / Pipelayers 46.1 8,900

Lineworkers 42.1 30,800

Engineers 51.1 16,400

Potential Replacements by Skilled Trades Job Category by 2015

10

32,000

28,700

12,700

9,100

Total Skilled Trades Potential Replacements by 2015

LineworkersTechniciansNon-Nuclear Plant OperatorsPipefitters / Pipelayers / Welders

74 % of respondents require an electrical engineering degree from a 4 year university for an individual to work in a titled engineering position

52% provide tuition reimbursement for new hires or incumbents and 23% provide company sponsored training to gain the required level of knowledge if they do not have an Electrical Engineering degree

In the future, 85% will not likely hire for Electrical Engineering positions without an Electrical Engineering degree or relevant coursework

Most companies do not have the ability to identify employees by type of engineering degree

Engineering Positions

11

Skilled Trade Occupations with Apprenticeships

12

Lineworke

r

Technici

an

Plant /

Field Operat

or

Pipefitter / Pipelay

er / W

elder0%

20%

40%

60%

80%

State RegisteredDOL RegisteredNot Registered

Respondents reported

How is Lineworker training conducted?

13

0%20%40%60%80%

100%

Most companies reported having internal company training programs for lineworkers

81% of respondents are currently partnered with one or more community colleges or vocational programs to provide new or pipeline employees

68% say these partnerships reduce required initial training and time to qualify new hires

76% say there are cost or other quantifiable benefits from the partnerships

Training partnerships

14

Workforce Planning Methodologies

15

Benchstrength

Retirement model (age and years of service predictions)

Dashboard (scorecard or metrics)

Predictive modeling

Scenario planning

Hosted solution (HR system)

Vendor provided service

0%10%

20%30%

40%50%

60%70%

80%90%

100%

Benchstrength and retirement modeling are the most

common methodologies used

Estimating Retirements

16

Age and years of serviceHistoric department av-erageEmployee declarationRetirement triggers (Social Security)No explicit methodVendor

Companies use Age and Years of Service and Historic department average most frequently in estimating future retirements

No respondents reported that their workforce planning system is fully integrated with business planning

47% of participants report their system is partially integrated

Workforce Planning

17