CEO’s REPORT

PRESENTED BY :

Paula Gold-WilliamsPresident & CEO

July 30, 2018

CHALLENGES -> OPPORTUNITIES

FLEXIBLEPATH

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AGENDAOUTREACH &INITIATIVES

THOUGHTLEADERSHIP

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CHALLENGES -> OPPORTUNITIES

We see challenges as opportunities to learn, improve &

grow

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CHALLENGES -> OPPORTUNITIES:ENVIRONMENTAL• CHALLENGE: - Bexar County was recently designated as “non-attainment” SUMMARY MEANING: While this is unfavorable, multiple initiatives have

driven incremental improvements to date• EXISTING HELPFUL CONTRIBUTORS: OUR FOOTPRINT: We cover or touch 8 counties OTHER COUNTIES:o Surrounding communities appear to have an improved designation –

unclassifiedo Potentially, less environmental mitigation required

PROGRESS SO FAR: See our successful efforts thus far on the next slide• NEW HELPFUL EFFORTS ARE EVOLVING: OUR NEW FLEXIBLE PATH: It is helping to expand awareness & engagement CAAP: S.A.’s Climate Action and Adaption Plan, sponsored by Mayor Nirenberg

and Councilwoman Sandoval is taking form o We will start with a good Baseline

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CHALLENGES -> OPPORTUNITIES:OTHER HELPFUL EFFORTS TO DATE

MORE TO COME

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FLEXIBLE PATH

Flexible Path is a full reboot of how we will

prudently plan for, develop and/or

install new energy sources going

forward

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FLEXIBLE PATH:SAN ANTONIO CHAMBER

• I presented our Flexible Path to fellow SA Chamber of Commerce Board Members

• Chamber members took this opportunity to ask thoughtful questions &provide helpful comments and suggestions

June 27, 2018

Paula Gold-WilliamsOther SA Chamber of Commerce Members

FLEXIBLE PATH:COMPLETED

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FLEXIBLE PATH:COMPLETED

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FLEXIBLE PATH:COMPLETED

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FLEXIBLE PATH:“SIMPLE SUMMER SAVINGS”COMPLETED CUSTOMER CARE FAIRS

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FLEXIBLE PATH:PENDING

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FLEXIBLE PATH:PENDING

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FLEXIBLE PATH:ANNUAL SUBURBAN CITIES SUMMIT

25+ officials from the 31 suburban cities received updates on:• Our Flexible Path• CAAP• ERCOT summer update• Lessons learned regarding

small cell wireless technology

• Developing wireless pole attachment standards

Paula Gold-WilliamsSuburban Cities Summit Attendees

July 13, 2018

July 13, 2018

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We focused on many special

efforts during the month; several are included in

this report

OUTREACH & INITIATIVES

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OUTREACH & INITIATIVES:SAFETY LEADERSHIP DISCUSSION

• I joined Cris, Fred & other Ops & Safety Leadership / Managers for a Safety Discussion

• We had a very open & honest conversation about Resetting Expectations

• Managers will now have a weekly Manager Field Day to spend more time with their field employees

Cris Eugster, COOOther Meeting Attendees

July 20, 2018

OUTREACH & INITIATIVES:TEXAS LINEMAN'S RODEO IN SEGUIN

Left:Trey Elley, Apprentice

Top Right (left to right):Bo Green, ApprenticePaula Gold-WilliamsTommy Williams, ApprenticeKenny Byrom, Apprentice

Bottom Right (left to right):Eunice Lopez, Manager, S&HZoe Wallis, InternTony Weston, JourneymanFrank Mata, JourneymanPaula Gold-WilliamsBryan Mills, JourneymanDavid Garcia, JourneymanTravis Wiatrek, Journeyman

July 21, 201817

OUTREACH & INITIATIVES:TEXAS LINEMAN'S RODEO IN SEGUIN

Going up against the best of the best from dozens of utilities across the state, our rodeo team brought home three trophies: • Journeyman team with Bryan Mills, Travis Wiatrek and

David Garcia, 3rd place, Overall Municipal Division• Apprentice Lineman Clarence Elley, 3rd place, lightning

arrestor change-out• Apprentice Lineman Robert Webb, 3rd place, mystery

event in which the event isn't announced to competitors until it actually begins (mystery event turned out to be a lightning arrestor change-out)

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Pictured Top Left:Bryan Mills, JourneymanGilbert Brown, Mgr., CCDavid Garcia, JourneymanTravis Wiatrek, Journeyman

Pictured Bottom Left:Robert Webb, Apprentice LinemanGilbert Brown, Mgr., CCTrey Elly, Apprentice Lineman

July 21, 2018

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OUTREACH & INITIATIVES:SOLAR PANELS

• On July 23rd, the Chief Appraiser issued his determination that solar panels individually owned are exempt from taxes under the Tax Code

• This is a reversal of a prior determination earlier this year• Reversal is a direct result of our:

CONCERNED CUSTOMERS! Internal Efforts External Engagement, including:

o Consultation with Outside Counselo Letters of Support from Councilmember John Courage and

Commissioner Ken Wolffo Meeting with the Appraisal District Facilitated by Councilman

Robert Trevinoo Our providing a Copy of the Agreement with Clean Energy

Collective

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THOUGHT LEADERSHIP

Alignment of our strategic thinking is broadening

rapidly, & our THOUGHT LEADERSHIP

is paving the way to new solutions & more

creativity!

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THOUGHT LEADERSHIP:TACOMA PUBLIC UTILITIES VISIT

• Representatives from TPU received an overview from our Community Programs team & CRU

• They took a tour of our MSC and Call Center

Pictured left to right:Robert Martinez, Manager, WeatherizationJesse Hernandez, Director, Community ProgramsAmanda Rowley, Supervisor, Customer Services, TPUMaizey Nunn, Customer Services Clerk, TPULaura Jacobs, Manager, Community Program DevelopmentHollie Coates-Seamster, Manager, Customer Services, TPUKirk Nuckols, Outreach SpecialistSamantha Perez, Manager, OutreachRoe Gawlik, Program/Project ManagerAnnie Ledesma, Supervisor, Outreach ProcessingPriscilla Robledo, CFSR1, Customer Response Unit

June 27, 2018

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THOUGHT LEADERSHIP:LOAD CURTAILMENT TABLE TOP EXERCISE

Rudy Garza & team held this exercise to demonstrate our readiness to:• Respond to an ERCOT

emergency• Meet CPS Energy’s

obligation in preserving the grid

Anthony Mecke, Systems Operations Training ManagerDustin Mattke, Supervisor System OperationsRick Maldonado, Sr. Director Customer ReliabilityRudy Garza, Sr. Vice President Distribution Services & OperationsWilliams McCarson, Business Continuity Program ManagerBert Hargesheimer, Sr. Director Fleet Operations S&BC

July 2, 2018

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THOUGHT LEADERSHIP:ENERGY MARKET POLICY DISCUSSION

• I attended the Energy Market Policy Unit’s July meeting

• Frank Almaraz presented our Flexible Path

• Beth Garza, the Vice President & Director of Potomac Economics and ERCOT Independent Market Monitor (IMM) toured our facility

John Bonnin, Vice President, ESMO & Director, ERCOT IMM

Beth Garza, Vice President & Director of Potomac Economics & ERCOT IMMDavid Sobotik, Power Generation Engineer

July 17, 2018

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THOUGHT LEADERSHIP:2018 TPPA MEETING

• Annual Summer Meeting held in Austin, Texas

• Zandra presented on Records Management: “Email, Texts & Tweets: Information Management for Public Utilities”

Zandra Pulis, Deputy General Counsel & CRMO

July 24, 2018

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THOUGHT LEADERSHIP:2018 TPPA MEETING – OUR SA TEAM

Pictured left to right:Zandra Pulis, Deputy General Counsel & CRMOPaula Gold-Williams, President & CEOCarolyn Shellman, CLAOMarie Stoner, Coordinator, Federal & State RelationsKari Torres, Director, Federal & State RelationsDavid Kee, Energy Market Policy ManagerJohn Bonnin, VP, Energy Supply & Market OperationsRobert Nathan, Analyst, Federal & State RelationsJuly 24, 2018

July 24, 2018

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THOUGHT LEADERSHIP:DENTONS SMART CITIES &COMMUNITIES SUMMIT

July 26, 2018

I participated in a panel discussion focused on key developments &challenges for Smart Cities & Communities

Paula Gold-WilliamsRodney Ellis, County Commissioner, HoustonStephanie Rawlings-Blake, former Mayor of Baltimore & former

President of the Conference of MayorsClint Vince, Moderator & Chair, U.S. Energy Practice & Co-Chair, Global Energy Sector, Dentons

UPCOMING KEY CEO DATES

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8/11-15/2018Toronto, Canada: 2018 EPRI Board Meetings

8/20-23/2018Long Beach, CA:EPRI Electrification 2018 Conference

9/12/2018Houston, TX: Houston Smart Cities

9/19-21/2018White Plains, NY:LPPC CybersecurityTask Force Meeting

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TRUSTED BRAND!

June 13, 2018

For the 2nd consecutive year, Market Strategies International (MSI) ranked CPS Energy 1st

as the Most Trusted Utility Brand in the US Southern Region for 2018 for a combined (electric & gas) utility

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PEOPLE FIRST IN ACTION:NOT ALL HEROES WEAR CAPES

July 26, 2018

July 25, 2018

• When a man collapsed on an east-side street corner, two CPS Energy employees jumped into action to save him

• They were caught in action by a Kens 5 reporter who tweeted about their heroic efforts

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PEOPLE FIRST IN ACTION:NOT ALL HEROES WEAR CAPES

July 26, 2018James Avila, Trainee DistributionRudy Garza, Sr. VP Distribution Services & OperationsFaustino Sanchez, Journeyman Serviceman

• James & Faustino were interviewed by Kens 5 and credited their safety training with helping them know how to respond

• Their quick action and concern for a man in trouble are the epitome of our PEOPLE FIRST philosophy

Kens 5 News Story

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TOPICS FOR FUTURE MEETINGS

MORE SOLAR/STORAGE & OTHER

GENERATION

TALENTDEVELOPMENT

EDUCATIONALPARTNERSHIPS

Thank You

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GLOSSARY / DEFINITIONS

• CAAP Climate Action & Adaptation Plan• CEO Chief Executive Officer• CFSR1 Community Field Service Rep 1• CLAO Chief Legal & Administrative Officer• COO Chief Operating Officer• CRMO Chief Records Management Officer• CRU Customer Response Unit• EPRI Electric Power Research Institute• ERCOT Electric Reliability Council of Texas• ESMO Energy Supply & Market Operations• IMM Independent Market Monitor• LPPC Large Public Power Council• MSC Mobile Support Center• MSI Market Strategies International

• O&S Operations & Strategy• Ops Operations• S&BC Safety & Business Continuity• SA San Antonio• S.A. San Antonio• Sr. Senior• SVP Senior Vice President• TBD To be determined• TPPA Texas Public Power Association• TPU Tacoma Public Utilities• VP Vice President