CEO’s REPORTPRESENTED BY:

Paula Gold-WilliamsPresident & CEO

November 12, 2018

CHALLENGES -> OPPORTUNITIES

FLEXIBLEPATH

2

AGENDAOUTREACH &INITIATIVES

THOUGHTLEADERSHIP

3

CHALLENGES -> OPPORTUNITIES

We see challenges as opportunities to learn, improve &

grow

CHALLENGES>OPPORTUNITIES:GROWING CULTURE & TALENT

4

• Participated in 2 fireside chats w/500+ team members to cover:Relevant topics such as employees transitioning to new

roles after the closure of the DEELY Units 1 & 2 Important strategic steps our Company will be taking in

the near future to keep pace w/constant changes in the energy industry

Questions about safety, emissions & our Flexible Path

CHALLENGES>OPPORTUNITIES:GROWING CULTURE & TALENT

Joe Cordova, Interim Program ManagerBlaize Skocny, Interim Chief of Staff, COO

Derrick Wilson, Energy Controller IMike Hemingson, Operator, Control RoomDon Stanton, Senior DirectorPaula Gold-Williams, President & CEO

September 26, 2018

Paula Gold-Williams, President & CEO Don Stanton, Senior DirectorDerrick Wilson, Energy Controller I

Francie Gust, Operator Control RoomJoe Sepulveda, Senior Manager

5

October 10, 2018

6

FLEXIBLE PATH

Flexible Path is a full reboot of how we will

prudently plan for, develop and/or

install new energy sources going

forward

FLEXIBLE PATH:BRIEFINGS – 1 of 5

7September 25, 2018 September 28, 2018

• Shared details of our Flexible Path to:RECSAChamber Business

Roundtable group

FLEXIBLE PATH:BRIEFINGS – 2 of 5

8Kathy Garcia, VP, G&RA&PP

John Leal, Director, LGR

October 24, 2018

• Presented our Flexible Path to:AH Chamber of CommerceLocal Agency Partners

October 3, 2018

FLEXIBLE PATH:BRIEFINGS – 3 of 5

9

November 5, 2018

Paula Gold-Williams, CEOMeeting Attendees

• UNION LEADERSHIP MEETING #2

• Tailored an update on our Flexible Path to: IBEW NAPE

FLEXIBLE PATH:BRIEFINGS – 4 of 5

10

Pictured With:• The Chamber Chair,

Eddie Kirby, who is also our Director, Digital Experience (Top & in the center and Bottom-right)

• Barbara Gervin-Hawkins, TexasState Rep., (Top on the right)

• Adena Williams Loston, St. Phillips President, (Bottom left, on the right)

• I presented our Flexible Path to Alamo City Chamber of Commerce

October 3, 2018November 9 , 2018

11

FLEXIBLE PATH:BRIEFINGS – 5 of 5

CURRENTLY PENDING

12

We focused on many special

efforts during the month; several are included in

this report

OUTREACH & INITIATIVES

OUTREACH & INITIATIVES:CCEO BOARD SERVICE

13

• CONGRATULATIONS … Felecia Etheridge on being elected to the board of directors of:

Clarity Child Guidance Centeronly nonprofit treatment center in San Antonio and South Texas that specializes in children ages 3-17 who suffer from serious mental health problems

Make-A-Wish Central and South Texas Governing Boardprovides wishes to children diagnosed with critical illnesses

Felecia Etheridge, CCEO

OUTREACH & INITIATIVES:2018 UNITED WAY CAMPAIGN

14

Michael Sparkman, ManagerJonathan Tijerina, Senior Director

October 5, 2018

Cris Eugster, COOUnited Way Rally Attendees

October 29, 2018September 18, 2018

OUTREACH & INITIATIVES:NATIONAL NIGHT OUT

15

• CPS Energy’s Customer Response Unit (CRU) &Outreach teams participated in National Night Out events on October 2nd across the greater SA area

• Teams attended 43 events driving over 400 miles to reach all 10 Council Districts & 3 suburban cities:La CosteElmendorfAlamo Heights

October 2, 2018

OUTREACH & INITIATIVES:CEO CUSTOMER CARE AWARDS

16

• Honored a group of team members for demonstrating People First in action by delivering exceptional customer service

• Thanks & congratulations to each of these award recipients for going the extra mile to provide our customers with outstanding service

Pictured with Paula Gold-WilliamsFar Left:James Avila, Distribution TraineeFaustino Sanchez, Journeyman ServicemanTop Middle:Jacob Perez, Customer Solutions Specialist 1Martha Mitchell, VP, Customer SuccessBottom Middle:Jose Trevino, Director, CES&SFrederick Beebe, Director, EAM

October 8, 2018

OUTREACH & INITIATIVES:EMPLOYEE RECOGNITION DINNER

17

• Nearly 300 team & family members celebrated at our annual dinner

• Employees recognized for: Years of Service Years of Safety Volunteerism Exceptional Customer Service

Top:Daniel Segura, Corporate CommunicationsPaula Gold-Williams, President & CEORight:Karen Sanders, Project/Program LeadLillian Morales, Gas Ops & Construction

October 10, 2018

October 10, 2018

OUTREACH & INITIATIVES:CUSTOMER APPRECIATION EVENT

18

• EAM & KAM hosted the 2nd

Annual Commercial Customer Appreciation Event @ the Briscoe Museum

• The event provided our customers an opportunity to connect w/our Executive & Key Account Management teams

Dr. Adena Williams Loston, President, St Philips CollegePaula Gold-Williams, President & CEO, CPS Energy Dr. Richard Aste, Director, McNay Art Museum

October 11, 2018

OUTREACH & INITIATIVES:INTERNATIONAL LINEMAN’S RODEO

19

Our Team:

• CONGRATULATIONS to our team for competing @ the International Lineman's Rodeo in Kansas

• The competition was comprised of 221 journeyman teams & 290 apprentices from around the world, including the United States, Brazil, Canada,Guam & Poland

October 13-14, 2018

OUTREACH & INITIATIVES:VETERANS DAY

20

Top Left:Michael Garza, Treasurer, Vet ConnectFrank Almaraz, SVP, Commercial OperationsPaula Gold-Williams, President & CEOBottom Left:Ceremony Attendees

• It was my privilege to participate in the ceremony honoring our 300+ CPS Energy military veterans

• Thank you for your service!

21

Left:• Stuart Parker, CEO USAATop Right:• Harriett Dominique, President of USAA

Foundation, SVP Corporate Responsibility & Community Affairs, USAA

OUTREACH & INITIATIVES:VETERANS CELEBRATIONS ACROSS TOWN

USAA SA CHAMBER OF COMMERCE

November 8, 2018

November 7, 2018

22

THOUGHT LEADERSHIP

Alignment of our strategic thinking is broadening

rapidly, & our THOUGHT LEADERSHIP

is paving the way to new solutions & more

creativity!

23

June 21, 2018June 21, 2018Simon Castillo, HOPE PresidentCouncilwoman Shirley Gonzales, District 5Paula Gold-Williams, President & CEOCouncilwoman Ana Sandoval, District 7Carla De La Chapa, HOPE SecretaryMembers of HOPE

September 28, 2018

• The Hispanic Organization for Public Employees (HOPE) hosted a leadership series

• Councilwomen Gonzales & Sandoval answered questions about their personal experiences & journey to becoming leaders & championing efforts for improvements in our citySept. 27, 2018

THOUGHT LEADERSHIP:HOPE LEADERSHIP SPEAKING SERIES

THOUGHT LEADERSHIP:SAN ANTONIO MOVERS AND SHAKERS

24

• Cris Eugster was the featured guest on an episode of Movers and Shakers on 930 AM

• Cris answered questions related to his personal &career experiences, highlighting the initiatives &good work happening @ our company

John Thurman, Host, Sa Movers and ShakersBjorn Dybdahl, Host, SA Movers and ShakersCris Eugster, COO, CPS Energy

October 5, 2018

THOUGHT LEADERSHIP:SAN ANTONIO MOVERS AND SHAKERS

25

• Felecia Etheridge was the featured guest on an episode of San Antonio Movers and Shakerson 930 AM The Answer

• Felecia was interviewed by John Thurman, Host of SA Movers and Shakers

• Felecia spoke about her personal background, as well as the efforts she spearheads to make sure that customers are happy & satisfied with our serviceFelecia Etheridge, CCEO

November 1, 2018

26

Tom Duckett, Executive VP, RESDavid Jungman, Sr. Dir., Business & Economic Dev.James Boston, Manager, Market IntelligenceToby Baker, Executive Director, TCEQAdam Hamilton, CEO, Southwest Research InstitutePaula Gold-Williams, President & CEOCouncilman Greg Brockhouse, District 6Cris Eugster, Chief Operating Officer (COO)Paul Easley, VP, SWRI

October 8, 2018

• San Antonio District 6 City Councilman Greg Brockhouse joined us & our partners SWRI, TCEQ and RES @ a groundbreaking ceremony for a new solar generating &battery storage facility

• The project will include a 5-megawatt (MW) solar power array & a 10-MW battery storage system

THOUGHT LEADERSHIP:GROUNDBREAKING

THOUGHT LEADERSHIP:JOINT BOARD MEETING

27

• CPS Energy & SAWS Boards of Trustees held a joint meeting

• CEO’s Paula Gold-Williams &Robert Puente discussed: A case study released by the

EDF that highlighted how well our 2 companies work together to conserve energy & water

• Great opportunity to show our organizations’ new potential to work together to benefit our customers

Bottom:SAWS Board of Trustees & Leadership TeamTop:CPS Energy Board of Trustees, CPS Energy Leadership Team & City Manager

October 9, 2018

THOUGHT LEADERSHIP:TEXAS CYBER SUMMIT

28

• San Antonio's first ever Texas Cyber Summit was a premier conference with the mission of spreading knowledge & interest in the field of cybersecurity

• Participated in a panel on Smart Cities

• CPS Energy was the title sponsor

Craig Hopkins, Chief Information Officer, COSAPaula Gold-Williams, Chief Executive Officer, CPS EnergyUrsula Pari (Moderator), Anchorwoman, KSAT-TV

October 12, 2018

THOUGHT LEADERSHIP:SAP4U CONFERENCE

29

• CPS Energy was honored at the SAP4U Conference as the top Purpose Driven Utility

• Delivered the keynote on our Flexible Path & the future of energy

• As a winner & per our recommendation, $5,000 was awarded to UTSA’s scholarships to support students in the UTSA Cybersecurity Program

Michael O'Donnell, National Vice President, Utilities, SAPPaula Gold-Williams, President & CEO, CPS Energy

October 16, 2018

THOUGHT LEADERSHIP:SAMA CEO EVENT

30

• Attended the 13th annual event sponsored by BB&T Bank, RSM US LLP & CPS Energy

• An informative annual event for CEOs, Presidents & Owners

• Rolando B. Pablos, Texas Secretary of State, was the Keynote Speaker

John Barrow, Manager, KAM, CPS EnergyJim Caldwell, Chair, SAMAPaula Gold-Williams, President & CEO, CPS EnergyRey Chavez, President & CEO, SAMAKathy Garcia, VP, G&RA&PP, CPS Energy

October 18, 2018

THOUGHT LEADERSHIP:SOUTH TEXAS CYBERSECURITY FORUM

31

• UTSA hosted the South Texas Cybersecurity Forum, which focused on cybersecurity in the energy industry

• Department of Energy Secretary Rick Perry delivered the keynote

• Congressman Will Hurd moderated a panel discussion

Congressman Will Hurd, 23rd District of TexasZachary Tudor, Associate Laboratory Director of National and Homeland Security, Idaho National Laboratory, Steve Ashby, Director, Pacific Northwest National LaboratoryHeidi Ammerlahn, Director, Homeland Security and Defense Systems, Sandia National LaboratoriesPaula Gold-Williams, President & CEO, CPS Energy

October 19, 2018

• Participated on the Dentons Smart Cities & Communities Roundtable in Washington DC

• Spoke on Grid Modernization as a Vital Initial Step for Bringing Smart City Platforms to Scale

32

Steve Hauser, Gridwise AlliancePaula Gold-Williams, President & CEO, CPS EnergyClint Vince, Chair, Dentons’ Global Energy PracticePresley Reed, Dentons

THOUGHT LEADERSHIP:SMART CITIES THINK TANK

October 25, 2018

33

• Interviewed by Llewellyn King

• Discussed state of energy, San Antonio’s progress in Smart Cities & future of energy

• WHC celebrating 20 years on PBS

• Airs on more than 200 PBS stations across the country

• Will air locally on KLRN

• Sirius XM P.O.T.U.S channel 124

Nov. 3: 7 a.m. and 6 p.m.

Llewellyn King, HostPaula Gold-Williams, President & CEO, CPS Energy

THOUGHT LEADERSHIP:WHITE HOUSE CHRONICLE

October 25, 2018

34

• We toured OCI Gunsan Polysilicon Plant w/ a 51-MWh Energy Storage System

• We spoke about:

Flexible Path

Our Energy Storage Strategy

THOUGHT LEADERSHIP:MEETING WITH OCI COMPANY

Pictured Bottom Right:• WooHyun Lee, CEO, OCI• Paula Gold-Williams, President & CEO, CPS

Energy• David Jungman, Sr. Dir., Bus. Dev., CPS

Energy• Greg Baik, Vice Chair, OCI

• Met w/KEPCO CEO

• We compared notes about:

Org Structures

Energy Storage

Energy Policy

Global Energy Trends

Innovation in Transmission & Other Areas

Paula Gold-Williams, President & CEO, CPS EnergyJongkap Kim, President & CEO, KEPCO

THOUGHT LEADERSHIP:MEETING WITH KEPCO

October 30, 2018

35

THOUGHT LEADERSHIP:BIXPO CONFERENCE 2018

36

• Spoke about the “Status of Digital Transformation Deployed in North American Utilities”

• Toured the KEPCO Headquarters & Gochang Power Testing Center & viewed their innovation center

Paula Gold-Williams, President & CEO

November 1, 2018

THOUGHT LEADERSHIP:iP UTILITY SAFETY CONFERENCE & EXPO

37

• This conference brought together leading safety & operations experts from across the country for 3 days of education, networking & exhibits

• Fred gave the keynote address on “Reduce Incidents & Improve Safety Performance in Your Fleet Department

Fred Bonewell, CSSO

November 1, 2018

UPCOMING KEY CEO DATES2018

38

12/18-20/2018New York, NY:• Rating

Agencies’ Visits

11/14-16/2018Dallas, TX:• EPRI Board of

Directors & Committee Meetings

11/17-22, 2018Japan:• Mayor’s

Sister City’s Trip

12/5-7/2018New York, NY:• Bloomberg

Commodities Interview

• Platts Awards: Award of

Excellence –Power

Chief Executive of the Year

Corporate Social Responsibility

39

TOPICS FOR FUTURE MEETINGS

MORE SOLAR/STORAGE & OTHER

GENERATION

TALENTDEVELOPMENT

EDUCATIONALPARTNERSHIPS

Thank You

41

GLOSSARY / DEFINITIONS

• AH Alamo Heights• ARC Analyst Regulatory Compliance• Bus. Dev. Business Development• CCEO Chief Customer Engagement Officer• CEO Chief Executive Officer• CES&S Customer Engineering Services

& Schedule• COO Chief Operating Officer• COSA City of San Antonio• CSSO Chief Security & Safety Officer• DA&RTO, Day Ahead & Real Time Operations,

ES&MO Energy Supply & Market Operations• DGC&CC&EO Deputy General Counsel & Chief

Compliance & Ethics Officer• DEVO Data. Evolved.• DCR&P Director Compliance Reliability

& Protocols• EAM Executive Account Management• EDF Environmental Defense Fund• G&RA&PP Government & Regulatory Affairs &

Public Policy• HOPE Hispanic Organization for Professional

Employees

• KAM Key Account Management• KEPCO Korea Electric Power Corporation• LGR Local Government Relations• MC Manager Compliance• MWH Megawatt Hours• Ops Operations• Org Organization• RES Renewable Energy Systems Americas• SA San Antonio• SAMA San Antonio Manufacturers Association• SAP4U SAP For Utilities• Sr. Senior• Sr. Dir. Senior Director• SVP Senior Vice President• SwRI Southwest Research Institute• TCEQ Texas Commission on Environmental

Quality• UTSA The University of Texas at San Antonio• VP Vice President• WHC White House Chronicle