AGA Best Practices Kick Off Meeting Los Angeles January 17, 2012

1. AGA Best Practices Kick Off MeetingLos AngelesJanuary 17, 2012 Lisa Kallberg Principle Pipeline Compliance Consultant

2. Key Performance Indicators within Gas Operations • Leak sheet audit process • Compliance assessment - corrective actions • Faulty material process • Emergency response

3. Leak Sheet Audit Process • Developed after several regulatory enforcement actions • Steps • Crew completes form • Reviewed by Supervisor • Sends to auditor • Auditor approves or sends back to Supervisor • Supervisor sends back to auditor • Final version and audit form kept in local office • Pilot in St Paul area in October 2011 • Moved to NSPM in spring 2012

4. Leak Sheet Audit Process • Total reviewed • Total correct • Total forms returned • Total # of errors • Compliance • Total % forms returned • Total % forms correct • Average # of days date created – date reviewed by Supervisor • Average # of days date created – date returned to Supervisor

5. Compliance Assessment - Corrective Actions • Conducted prior to regulatory inspections • Colorado • MN, WI, MI, ND • Review and document corrective plans • In place within 45 days of completion

6. Compliance Assessment - Corrective Actions • 2013 upgrading equipment to allow for electronic forms when doing assessments • Advantages of electronic over older paper forms • Report the assessment findings to different levels • Report trends and areas of concern • Update assessment form company wide so all use same version

7. Faulty Material Process • Gas Faulty Material Analysis Form (Originator completes) • Originator:      • Date received from OpCo:      • Originator’s Phone #:      • Material description:      • Operating Area:       • Cat ID:      • Was faulty material removed? YES NO • Manufacturer:       Lot #:       • Address where faulty material was installed:      • Description of defect:       • Did this faulty material cause an injury? YES NO • Date Received by PC&S:       • Assign Faulty Material Log #

8. z Faulty Material 8D Process • 1. Identify team • 2. Define problem • 3. Containment action • 4. Identify root cause • 5. Formulate corrective and preventative action • 6/7. Implement action plan • 8. Closure

9. Faulty Material 8D Process • Material investigation & analysis cycle time • 85% processed within 90 days • Communicated internally and with material supplier • Some cases with regulatory agencies

10. Emergency Response Reporting MN only

11. Time Interval Definition • Dispatch • Response • Repair crew • Gas shut off • Line repaired

12. Emergency Response MN only • Reported to the Minnesota Office of Pipeline Safety 30 days after 60 day reporting timeframe • January – February report in March… • November – December report in January next calendar year

13. Emergency Response at Xcel Energy • Gas Operations scorecard • % ≤ 30 minutes • Required number of drills • CO • MN, ND, WI, MI • 45 days to review and publish results including corrective action plans

14. Questions?