Managing the Challenges of an Aging Workforce

1. Managing the Challenges of an Aging Workforce Tracy McPhail, Ph.D., SPHR

2. Built In Bifocals with magnifier When magnification is not enough use Narrator http://www.microsoft.com/enable/aging/tips.aspx

3. Aging Workforce and Business Operations • People 45 years and older comprise 37% of the US labor Force • North American Electric Power Industry is comprised of: • 3000+ electric utilities • 120 million residential customers • 16 million commercial customers • 700K High Voltage Transmission lines valued at $160 Billion • 5 million miles of distribution lines valued at $140 Billion

4. Aging Workforce and Business Operations • American Public Power Association did a study of Workforce Planning Efforts of Power Utilities and found that : • 50% of the utilities track age of their workforce • Of those utilities all had a workforce in which 87% were over 40 years old. • 62% of the workforce had 15+ years of service • 77% of the companies did not have a formal plan to respond to workforce needs

5. Aging Workforce and Business Operations • Utility Industry has a workforce that has at least double the number of 40+ workers as other industries • At 50+ utility craft workers have the highest average age of any industry • Higher possibility of a workforce of inexperienced operators, system planners and engineers • DOE- Homeland Security

6. Utility Industry Initiatives • Center for Energy Workforce Development (CEWD)The Center for Energy Workforce Development is a non-profit consortium that was formed in March, 2006. CEWD is the first partnership between utilities, their associations, contractors and unions to focus on the need to build a skilled workforce pipeline that will meet future industry needs. • Florida Energy Workforce Consortium (FEWC):The consortium was formed in April 2006 to identify and develop solutions to meet the current and future workforce needs of utilities in Florida. • Florida Construction Users Roundtable (FCURT):The mission of FCURT is to provide Florida Construction Industry Users and their Associates a Forum for effective exchange of information, views, practices, and policies to help Members improve their Business Operations.

7. TECO Energy, Inc.Overview

8. The Men and Women of TECO Energy • 4,900 team members • 3,000 are local to Tampa Bay area

9. Our Core Values • Safety • Integrity/Ethical Behavior • Respect for Others • Achievement with a Sense of Urgency • Customer Service

10. TECO Energy, Inc. • TECO Energy, Inc. (NYSE:TE) • Energy-related holding company • Based in Tampa, Florida • Mostly known for: • Tampa Electric • Peoples Gas

11. One Company, Five Businesses Florida Utilities Other Businesses

12. Tampa Electric • Electric utility • Started in 1899 • West Central Florida • 2000 sq. miles • Hillsborough • Portions of : • Polk, Pasco and Pinellas • 2,400 team members • 645,000 customers • Median Age: 46 • Median LOS: 17

13. Clean-burning power stations • H.L. Culbreath Bayside Power Station • Converted coal to natural gas • Big Bend Power Station • Scrubbers and SCR technology • Polk Power Station • Clean-coal gasification (IGCC) • 10-Year anniversary 1996-2006

14. Peoples Gas System • Natural gas utility • Started in 1895 • Statewide presence • 563 team members • 320,000 customers • Median Age: 46 • Median LOS: 12

15. Florida Service Areas Tampa Electric Peoples Gas

16. TECO Coal • Coal mining/processing • U.S. and international markets • Mines in Kentucky, Virginia and Tennessee • 900 team members • Produces 9 million tons/year + • Median Age: 42 • Median LOS: 5 Years

17. TECO Transport • TECO Ocean Shipping • Domestic/international shipping • Tampa, FL • TECO Barge Line • Inland, U.S. waterways • Metropolis, IL • TECO Bulk Terminal • Storage/transfer for import/export • Davant, LA • 1,100 team members • Median Age: 43 • Median LOS: 11 years

18. TECO Guatemala • Two power plants with long-term sales agreements • 24% ownership in largest Guatemalan electric utility • 145 team members • Median Age: 38 • Median LOS: 5 years

19. One Company/Five Businesses(2005 data)

20. Challenges • The Center on Aging and Work at Boston College • www.BC.EDU/AGINGANDWORK • Workforce Planning • Engagement/ Retention • Health/Safety

21. Our Response to the Challenge • Ensuring we have Human Resources to meet projected needs • Keep experienced employees performing as long as possible • Change recruitment strategies to meet demand

22. Industry-wide Aging Workforce Challenges External labor market data forecasts Jobs vs. employees More jobs than people Source: Snodgrass, Center for Energy Workforce Development 2006

23. Corporate Wide Workforce Planning • CHRO supported by HR and HR generalists two process points • Includes traditional succession planning focusing on key positions: CEO, COO, CFO, CHRO, CIO, various Directors • Includes Operation Critical positions: Journeyman Lineman, IGCC process specialists, Watch Engineers

24. Critical Positions • Non-degreed essential positions • Linemen / Troublemen • Call center professionals • Skilled trade crafts • Power plant operators • Degreed essential professionals • Engineers • Accountants • I/T professionals

25. Recruitment and Staffing • Involvement in State and National Consortiums • Help Build pipeline by partnering with educational institutions • Hillsborough County School Administrators • Continue Strong Presence in the Market

26. Engagement/Retention • Older workers may work past traditional retirement age when they have: • Flexible work schedules • Engaging work • Opportunity for learning and development • Need to increase financial security before retirement

27. Knowledge Transfer • Utilize the expertise within • MDA and LDA • Peer coaching • Officer involvement in learning • Job rotation as a form of development and recognition

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29. Health/Safety • Higher incidence certain chronic illness/disease • Inform Participants • Focus on prevention • Modify work to respond to issues with aging • Ergonomic initiatives • Accessibility to tool boxes • Hydraulic lifts and power tools • Elevated walkways to eliminate ladders and stairs

30. Post Retirement

31. The Future • Integrated learning management and talent management systems • Utilize data to drive strategy to build, buy and contract

32. Questions?