PowerPoint Presentation

Citizens’ Academy

Kathy VieheGRU Interim General Manager

November 12, 2014

The Basics

GRU is a multi-service, community-owned utility providing electric(93,000 customers), water,wastewater, natural gas andtelecommunications services

Mission: To provide safe, reliable,competitively priced utility services inan environmentally responsiblemanner to enhance the quality of lifein our community

Core Business Values: DeliveringCustomer Value through Safety,Efficiency, EnvironmentalResponsibility and Professionalism

Measures of Success

Service reliability compares well

Safe drinking water

Responsive to customers – local call center,employees live here

Natural gas rates among lowest in the state

Electric rates are high, but aggressively pursuingcost reductions and revenue enhancement

Excellent financial standing

GRU is a Big Business

$413 million annual operating budget

$1.6 billion in assets

$948 million outstanding debt

Typical for a generating/multi-service utility

Among the highest bond ratings for municipal utilitiesfrom Fitch, Standard & Poor’s, and Moody’s

The Challenge: Electric Rates

How Did We Get Here?

Lower-than-forecast customer growth

Lower-than-forecast electric sales

Loss of wholesale sales

Seminole contract

Market sales

Lower energy use in Florida and nationally

How Did We Get Here?

Customer conservation combined with GRUconservation programs

Federal standards improving appliance efficiency andstate building codes

Addition of distributed generation (Solar NetMetering)

Loss of Business Partners’ Rate discount

Increased expenses (O&M, personnel)

Integration of new generation (GREC PPA)

Electric Sales (MWh)

O&M Expenses: Past 10 Years

2015 Business Plan

Focuses on three key areas:

Maintaining our financial strength

Providing excellent service

Developing engaged and proficient employees

Major focus on cost containment and increasingrevenues

South Energy Center expansion

Wholesale sales

Providing new services/products to customers

Hot Topics

EPA regulation of carbondioxide

Managing water resources

Regulatory compliancewith wastewater standards

General manager search

Carbon Regulation

EPA’s proposed “Clean Power Plan” calls for Floridautilities to reduce carbon emissions by 38 percent by2030

Concerns among municipal utilities:

Technical issues

No credit for previous efficiency and emission control upgrades

Potential effect on customer bills

GRU is tracking the policy’s progress and working withother utilities to express concerns

Water Management

Consumptive Use Permit

20-year permit approved inSeptember authorizinggroundwater withdrawals up to30 mgd, which is the same amountpermitted since 2009

Project 25 percent increase incustomers over this period

Groundwater withdrawals mitigateddue to customer conservationefforts, increased use of reclaimedwater and aquifer recharge projects

Wastewater Regulatory Compliance

Biosolids Recycling

Currently converted intofertilizer and applied to alocal farm to supplementfarming needs

Estimated cost of $23 millionto change disposal methodto comply with regulations

Dewatering facility underconstruction

General Manager Search

Job description approved by City Commissionin July

Currently evaluating proposals from searchfirms

Hope to have new GM in place by spring 2015

UF Energy Supply

GRU provides water and naturalgas service to UF

Also provides electricity off-campus, making UF one of ourlargest customers

UF’s steam agreement with DukeEnergy expires soon

GRU stands ready to assist UFwith its on-campus electricalneeds

The GRU Bill

Can include the following utility services:

Electric

Water

Wastewater

Natural gas

Also can include City of Gainesvilleservices:

Stormwater

Garbage/refuse

The quiz – How many kWh did you uselast month?

Know your bill

Join Our Advisory Committee

New advisory committee tohelp GRU with customercommunication efforts

Accepting applications

Sign up at gru.com/ccag

Employee Recruitment & Retention

Currently more than 800 GRU employees

Challenges:

Many experienced, long-term employees set to retire

Lack of depth in workforce; expectation to do more with less

Goal:

Develop and implement ongoing succession-planningprocess to address current and future talent needs in orderto continue providing safe, reliable service for our customers

Employees are the Core of theServices We Provide

Questions?