March 2018

State of the District 1

Construction Crew Gas Main Abandonment

Minne Lusa Project Capital Improvements

Metropolitan Utilities District

Mission Statement

We provide safe, reliable, and cost-effective natural gas and water services to our community.

2

Employees Volunteer & Donate to the Community

2017 Priorities Safety

Employee Public

Reliability

Continuity of Operations IT Reliability Cast Iron Pipe Replacement

Customer Service

Customer Experience Plan 2-Hour Appointment

Window

Lead Water Service Strategy

3

Construction Crew Gas Infrastructure Replacement

2018 Priorities Safety

Employee Public

Reliability

Continuity of Operations Infrastructure

Cast Iron Pipe Replacement Florence

Metering System Financial Stability

Long-term Growth

Customer Experience Delivering the Right

Customer Experience 100% of the Time

4

Business Continuity Exercise

District Vision Statement

To maintain our commitment to serve our community, while striving to become one of the nation's top utilities. This will be demonstrated by achieving industry leading performance in: Safety Reliability Customer Service Efficiency Regulatory

Compliance Financial Stability

5

6

EMPLOYEE SAFETY Key Performance Indicators (KPI’s)

Employee Safety Employee’s safety, health, and welfare at work is a primary focus for all within the District

Benchmark Sources: BLS-Bureau of Labor Statistics; AGA-American Gas Association

2014 2015 2016 2017 2017 2016 BENCHMARK

KPI's Baseline Yr-End Yr-End Yr-End Goals Goals Top Median Bottom Benchmark Source

Recordable Injury Rate per 200,000 hrs. worked 3.80 4.29 5.12 3.37 1.6 2.52 1.6 4.0 6.1 BLS

Preventable Vehicle Accident Rate per 1,000,000 miles driven 10.79 8.98 6.75 6.87 4.26 5.84 2.84 Mean AGA

District GPS Safety Rate Speeding Events 0.62 0.56 0.75 0.75 0.75 MUD

7

Employee Safety: Incident Comparisons

10 Year Personal Injury Average 2006-2016: 51.9 incidents per year

65

80

61 5948 51

42 38 3540

47

30

0

10

20

30

40

50

60

70

80

90

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Num

ber

of In

juri

es

10 Year Injury Trend

Median Annual Injury Rate 51.9

2017 = All-Time Low Rate of Recordable Injuries

Employee Safety: Personal Injuries 2017 had the lowest rate of workplace injuries on record

8

Workplace Injuries (30) 60% were the result of

“Conditions Beyond Control” (e.g. insect bites, routine activities, vehicle accidents, etc.)

23% were the result of “Unsafe Acts”

17% were the result of “Unsafe Conditions”

Leading Types of Injuries: 60% (18 total) of injuries are sprains and strains

1 1

2

1

2

5

18

1 Carpal Tunnel

1 Rash, Reaction

2 Animal Bite, Sting

1 Abrasion

2 Slips/Trips

5 Cuts, Lacerations, Puncture

18 Sprains, Strains

Employee Safety: Vehicle Accidents 9

Total Vehicle Accidents (32) 65% were preventable (PVA) (21)

Over 80% of Preventable Vehicle Accidents (PVAs) involved a collision with a fixed object resulting in the creation of the M.U.D. PVA Reduction Strategic Initiative for 2018

012345678

8 6 5

2

Preventable Vehicle Accident (PVA) Collision Location

2017

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

15

5

1

Preventable Vehicle Accident (PVA) Causes 2017

Employee Safety: 2017 Initiatives 10

Personal Protective Equipment: Policy Creation for Compliance and Enhanced Employee Safety

Vehicle Operator Policy Development: Park Smart, Walk-A-Round and Safety Enhancements District-Wide.

Creation of High Visibility Safety Apparel Policy

Modification of Driving Policy for Increased Safety

Expansion of Existing GPS Technology: Dispatch Efficiency and Driver Safety Performance assurance

Mutual Aid Development: “Trench Rescue” with Area Special Operations Teams

Active Shooter Training: expanding to include See Something/Say Something and De-escalation

Employee Safety: 2017 Initiatives 11

Active Outreach with City of Omaha for Traffic Safety Addition of Portable Rumble Strips to increase field

Safety Actively Participating with American Gas Association

to define best practices for gas operations, lone-worker safety, evacuations and gas emergency response

Supervisor safety training and performance metrics aimed at increased engagement

Commercial Drivers License (CDL) Training contracted to Metropolitan Community College

Intensive in-house driver training program (Safety employee certified as driver trainer in December, 2016)

Improved Safety and Security staff visibility 90 Comprehensive Site Safety Visits scheduled Monthly

Employee Safety: 2018 Initiatives 12

Preventable Vehicle Accident Rate Reduction Implement Vehicle Operator Policy Implement Preventable Vehicle Accident Policy

Work-place Injury Reduction Strategy

Implement High Visibility Safety Apparel Policy Deliver Safety Training through Learning Management System

Lone Worker Safety/Security Enhancement Strategy

De-escalation Training Risk Awareness, Identification and Reduction Strategy

Mass Communication System

Design, Budget and Implement System Global Employee Awareness Strategic Initiative

Increase Site Visits and Overall Safety Focus Personal Protective Equipment; Compliance and Review Enhanced Supervisor Safety Training

Cross Functional Team Development for Near-Miss Investigations

Using Root Cause Analysis to Identify Causation to Reduce Loss Representatives from across the District

Expanded Certification and Specialty Training Chemical Facility, Anti-Terrorism Compliance

13

PUBLIC SAFETY Key Performance Indicators (KPI’s)

Public Safety The welfare and protection of the general public is a critical responsibility and focus for all District personnel

Critical Public Safety Programs (Monitored) Gas Leak Awareness “District Pipeline Public Awareness Plan” “Nebraska 811 – Call Before You Dig” Leak Survey Program Walking; Mobile; Business District Manhole & Vault; Downtown Gas Services Cross-Bore Inspection & Reporting

Valve Audit Program (Gas & Water)

Benchmark Sources: AWWA-American Water Works Association; ; AGA-American Gas Association

2014 2015 2016 2017 BENCHMARK

KPI's Baseline Yr-End Yr-End Yr-End Top Median Bottom Benchmark Source

Emergency Response - Gas (min) 31.17 25.6 25.9 21.4 23 26 31 AGA

Emergency Restoration – Water (hr) 3.2 2.3 Q4 3.1 4.0 1.9 3.3 8.1 AWWA

Public Safety: 2017 Initiatives Emergency Response: Completed & On-Going Created and Implemented New Gas-Filled Structure

Emergency Response Policy Emergency Response Roles Redefined:

Adopted and Expanded Incident Command System (ICS) Created Emergency Response and Incident Management Team

Emergency Response Vehicle Placed in Service

Improved Quality Assurance/Quality Control (QA/QC): Post-Incident Review Meetings Emergency Calls Locating Valve Audit Program

Applied Technology: Texting for Notifications and Valve Info Click/Work Manager Utility Viewer Ipad distribution GPS

Expanded ESChat Communications and Portable Radio use Added Portable Radios to Communication Plan

On Existing 911 Radio Framework

14

June 18th, 2017 9th & Dodge

July 31st, 2017 Creighton University

Public Safety: 2017 Initiatives Emergency Response Initiatives: In-Progress & Planned Expanded Training:

Simulations/Drills

Centralized Hazardous Materials Response Teams Expanded Relationship and Dialogue with:

Area Fire Departments Critical Infrastructure and Community Partners Douglas/Sarpy 911 Hosted Infrastructure & Community Partners Exercise at Platte West

Started Putting All the Pieces Together:

15

March 14th, 2017 Trench Rescue Event; Omaha, Ne

Employee Safety

Public Safety

Continuityof

OperationsSecurity

Emergency Response

Public Safety: 2018 Initiatives 16

Execute Emergency Communication Strategy

Continued and Expanded Involvement in Public Safety Committees, Groups and Boards

Execute Traffic Safety Enhancements

Incident Management Team Response to Emergencies

Expanded Training: Emergency Drills for Field Service Personnel Joint Exercises

Continue On-Going Staffing Assessment

Continue Active Industry Involvement

Omaha Public Safety Training Center (OPSTC)

Reliability: District Water Plants 17

Florence Platte South

Platte West

18

Reliability Our customers can count on our service availability and support being provided in a fashion that aligns with the District’s values.

RELIABILITY Key Performance Indicators (KPI’s)

Benchmark Sources: SLA-Service Level Agreement

2015 2016 2017 BENCHMARK

KPI's Yr-End Yr-End Yr-End Top Median Bottom Benchmark Source

Uptime % for business critical systems (SAP, GIS, OpenText & Payment Systems)

99.90% 99.0% SAP target SLA for Cloud-Hosted Systems

Breaks per mile of pipes - Gas (Cast Iron) 0.25 0.16 0.18 0.10 0.19 0.27

AGA

Breaks per 100 miles of pipes - Water 13.3 15 16.7 3.5 7.4 16.3

AWWA

Unplanned Disruptions of Water Service < 4 Hrs (per 1000 accts) .37 Q4 2.54 3.2 0.46 0.92 2.13

AWWA

Total Unplanned Disruptions of Gas Service (per 1000 accts) 0.02 Q4 0.27 0.30 0.54 1.12 2.04

AGA

Reliability: 2017 Initiatives 19

Information Technology Data Center Moved to Private Cloud

Gas & Water Infrastructure Replacement

Florence Capital Improvement Plan (CIP)

Business Continuity Replaced boil-off compressors at

Liquefied Natural Gas (LNG) Plant Back-up Generator for

Construction Center & Compressed Natural Gas (CNG) Station

Completed 5th and final phase of Gas Distribution SCADA Master Plan

Data Center Move Team

Minne Lusa Refurbishment

Reliability: Gas & Water Infrastructure 20

7.7 9.2

23.019.3 20.2

26.430.7 32.0 34.0 34.9

405.45

5.5 3.96.6

9.4

3.9 4.18.3 9.1 10.6 9.2 11

1.9

0

5

10

15

20

25

30

35

40

45

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Budget

IR Program - Cast Iron ReplacementMiles of Main

Gas Cast Iron Gas Other Water Cast Iron Water Other

Reliability: Gas & Water Infrastructure 21

**Beginning in 2017 the definition of “Break” was refined with “leaks” and “hits” removed and tracked separately**

0

100

200

300

400

500

600

700

800

Annual Pipe Damage

Gas Hits

Gas Leaks

Gas Breaks

Water Hits

Water Leaks

Water Breaks

2017 Business Continuity Program (BCP) 22

Business Continuity Manager Added

Complete Safety (Public and Employee) initiatives started in 2017

Expand Public Safety Posture throughout service area with industry and community partners

Expand participation with Sarpy and Douglas County Emergency Management

Improved Safety, Security, Business Continuity and Emergency Response training to include in-house and District first responder simulations/drills/table-top exercises; BCP Tabletop occurred on November 8th, 2017.

Deployed Portable Radios for Emergency Scene Communications and created formal emergency

communications strategy on the 911 framework

Complete Business Continuity Plan Delivered March 1st, 2018

Business Continuity Plan Continuity of Operations

Business Continuity: 2018 Initiatives 23

Business Continuity Training & Activities: Conduct Two Scaled Exercises in CY 2018 Continue On-Going Staffing Assessment Execute comprehensive risk reduction strategy for

Construction Center and District Capital Assets

Business Continuity Plan: Test Draft 0 of Final BCP Deliver Final BCP Draft 1 to President Plan Updates Stress-Test Current Security Contract

Evolution of Emergency Drills for operations crews And Emergency Operation Plan Revisions Mass Communication System Adopted and

Deployed Q1 2018

M.U.D. Emergency Command Center

Reliability: 2018 Initiatives Major System Improvements

144th & W. Dodge to Pacific 36” Connection Main 148th – 156th W. Dodge Road 30” Main West Dodge Pump Station

Florence, Platte South CIPS 117th & Fort well casings inspection Replace 2nd boil off compressor at LNG Plant Gas & Water Infrastructure Replacement Information Technology:

Cyber Security SCADA Systems

Future of Downtown Building Metering Infrastructure:

Plan for Next 25 Years Advanced Metering Infrastructure (AMI) vs Existing

Encoder Receiver Transmitters (ERT’s)

24

Construction Crew Gas Infrastructure Replacement

25

Customer Service Customers can count on the District providing excellent services and an overall positive experience with every interaction.

CUSTOMER SERVICE Key Performance Indicators

Benchmark Sources: EEI-Edison Electric Institute; AWWA-American Water Works Association

2014 2015 2016 2017 2018 BENCHMARK

KPI's Baseline Yr-End Yr-End Yr-End Goals Top Median Bottom Benchmark Source

Appointments made; % adherence to 2-Hr window

TBD 93.0% 95% 99% 98% 90%

EEI-AGA DataSource

Billing - Corrected Bill Rate (per 10,000 billings)

16 12.5 6.7 6.0 Top Quartile 5.3 11.6 36.4

AWWA

Call Center - % Calls Answered 79% 95.5% 95.8% 94.6% 95% MUD Target

Call Center - Average Wait Time 4.2 1.6 1.4 1.7 < 2.0 MUD Target

QA Customer Accounting (Avg Score) 94%

95%

96%

95%

MUD target

QA Customer Service (Avg Score) 86.5%

90.4%

94%

95%

MUD target

Customer Service Initiatives

2017 Projects In-Process or

Completed

2-Hr Appointment Scheduling

Outbound Calling Capability/Campaigns

Recurring E-Checks Builder/Contractor

Online Self-Service

2018 Projects Budgeted

Recurring Credit Card

Payments Interactive Voice

Response (IVR) Enhancements

Self-Service Options Invoice Redesign

26

Launched Customer Experience - 2017

Annual Customer Satisfaction Survey created, released and incorporated into Geographic Information System (GIS)

Customer Service and Communication Training Initiated

District-Wide Customer Experience Committee formed

27

Customer Experience Committee – December, 2017

Customer Survey Results Summary 28

83% of Customers are either very satisfied (51%) or somewhat satisfied (32%) with MUD’s performance.

Customer Experience - 2018 Annual Customer Satisfaction Survey with GIS Creation and implementation of quarterly surveys

Emergency Response, Customer Service, Infrastructure Replacement, Technology

Customer Journey Mapping Customer Service Definitions District-Wide Customer Service Training Communication and Engagement

Customer Experience Vision Statement Our commitment:

Get it right the first time – Always! Excellence, Accuracy, Timeliness

29

30

Efficiency The District must effectively utilize its resources to accomplish its mission by maximizing productivity and demonstrating optimal performance.

EFFICIENCY Key Performance Indicators

2014 2015 2016 2017 BENCHMARK

KPI's Baseline Yr-End Yr-End Yr-End Top Median Bottom Benchmark Source

Total Customer Service Cost per Account

$47.69 $47.90 $45.59 $43.45 $22.71 $38.91 $51.84 AWWA

O&M expense per customer (Gas) excluding Cost of Natural Gas and 'gas peak shaving'

$212 $229 $233 $225

MUD target

O&M expense per customer (Water) $337 $360 $356 $360 $314 $396 $530

AWWA

HR-Employee Turnover Rate 5.8% 4.3% 4.3% 6.6% 6.0% 7.2% 12.2%

AWWA

Efficiency: BPI 2017 Initiatives Lean Six Sigma/Creighton

Partnership Training:

35 Yellowbelts (111 total) 12 Greenbelts

Certification: 18 Yellowbelts (67 total)

Benefit Opportunities Identified ~$5.6M Annual program-to-date

Business Process Improvement (BPI)

Final Meters-to-Cash Projects Completed (4)

Leadership Assigned – Water IR, GRM, NNG

31

Employee Recognition ‘17 Yellowbelt Lean Six Sigma Certification

Employee Recognition ‘17 Greenbelt Lean Six Sigma Certification

Efficiency: BPI 2018 Initiatives Lean Six Sigma Training – Creighton Partnership

Yellow Belt Training Green Belt Candidate Selection

Green Belt Project Mentoring Mentor and Coach 12 Green Belts working 6 Projects

Metretek/Meter reading process Review Move Water Distribution and Construction to Paperless Orders Main Break Data Collection and Reporting Service Cutoff Procedures Eliminate Field Services “Paper” sales orders Enhance the Budget Process

Water Main Break Analysis Paving Cuts Customer Experience

Project Management Coaching, Mentoring and Training

KPI’s Tier I & II – Improvement Planning Install Plan for Updating the Strategic Plan

New Vision and Mission Statement: Focus on Customers & Employees

32

33

Regulatory Compliance The District shall adhere to all applicable laws, regulations, guidelines, and specifications relevant to its business.

REGULATORY

Drinking Water Compliance Gas Operations Reporting Compliance Liquefied Natural Gas (LNG)

Operator Qualification Human Resource Reporting Compliance Taxes DOT / PHMSA PCI Industry Reporting Compliance Cyber Security Related Compliance (CFATS) Physical Security Related Compliance (CFATS and DOT) Distribution Integrity Management (PHMSA based reporting)

PCI-Payment Card Industry; DOT-Dept of Transportation; PHMSA-Pipeline & Hazardous Materials Safety Administration; CFATS-Chemical Facility Anti-Terrorism Standards

Regulatory Compliance: 2017 Performance

Maintained regulatory compliance for all primary and critical regulations

Above-average performance on the Chemical Facility Anti-Terrorism Standards (CFATS) compliance inspection

34

Liquefied Natural Gas (LNG) Plant

Regulatory Compliance: 2017 Initiatives

Excess Flow Valve Rule

Lead Water Service Strategy

Platte South NDEQ Discharge Permit

Regulatory Monitoring System

35

Platte South Water Treatment Plant

Regulatory Compliance: 2018 Initiatives 36

Platte South Nebraska Department of Environmental Quality (NDEQ) Discharge Permit

Chemical Facilities Antiterrorism Standards (CFATS)

Role of the Compliance Manager and the Law Department

Propane Air Plant

Financial Stability: 5 Critical Factors

1) Providing our customers with affordable gas and water service

2) Sustainable reinvestment in our infrastructure

3) Proper funding of our promises to our employees

4) Maintaining debt service coverage

5) Maintaining adequate cash reserves

37

Accounting Staff

38

Financial Stability

Key Performance Indicator

FINANCIAL

2014 2015 2016 2017 BENCHMARK

KPI's Baseline Yr-End Yr-End Yr-End Top Median Bottom Benchmark Source

Affordability - Gas (200 CCF) $144.74 $104.35

$111.89

$116.92 $144.98 $165.70 $209.91

MLGW

Affordability - Water (10 CCF) $27.81 $28.37 $29.23 $29.37 $24.16 $30.78 $42.75 MLGW

Debt Service Coverage - Water 2.56X 2.26x 3.02x 3.17x 1.2X Bond Agreement

Cash Reserves (days cash on hand) - Gas 216 249 215 180 MUD target

Cash Reserves (days cash on hand) - Water 139 235 357 180 MUD target

Sustainable Reinvestment - Gas Infrastructure $14.4M $16.3M $19.7M $19.2M MUD Budget

Sustainable Reinvestment - Water Infrastructure $11.4M $10.8M $12.4M $12.0M MUD Budget

Proper Funding of Promises to Employees - OPEB $5.0M $5.0M $7.0M $7.0M MUD Budget

Proper Funding of Promises to Employees - Pension 86% 87% 88% 100% 80% MUD Budget

$13.

71

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36

$20.

05

$20.

14

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27

$20.

43

$21.

61

$21.

77

$24.

57

$23.

76

$24.

16

$25.

54

$25.

60

$25.

65

$25.

85

$27.

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$28.

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$29.

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$29.

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$30.

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$30.

44

$30.

78

$31.

64

$32.

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32

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41

$34.

32

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51

$36.

70

$38.

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22

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75

$42.

80

$-

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

Aver

age

Bill

Am

ount

(10

CC

F)

City, StateSource: MLGW (Memphis Light Gas & Water)

39

2017 Residential “Water” Bill Comparison

Source: MLGW (Memphis Light Gas & Water)

40

2017 Residential “Gas” Bill Comparison $8

5.57

$117

.33

$117

.33

$118

.80

$122

.88

$127

.68

$132

.56

$137

.65

$139

.28

$140

.22

$141

.97

$144

.50

$145

.46

$145

.60

$146

.86

$148

.86

$152

.76

$154

.24

$156

.31

$161

.41

$161

.71

$162

.98

$165

.02

$165

.70

$166

.03

$171

.46

$178

.01

$178

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$178

.98

$180

.83

$190

.62

$191

.92

$198

.00

$205

.71

$-

$50.00

$100.00

$150.00

$200.00

$250.00

Aver

age

Bill

Amou

nt (1

00 C

CF)

City, State

Financial Stability: Progress in 2017

Gas rates remain below national and Midwest averages 7th lowest out of 34 metro areas listed in the 2017 Memphis Light Gas & Water survey

Water rates trend mid-range nationally and regionally compared with other utilities 20th lowest out of 34 metro areas listed in the 2017 Memphis Light Gas & Water survey

Reinvesting in infrastructure $19.7 million invested in gas cast iron replacement, 40 miles of main abandoned $12.4 million invested in water cast iron replacement, 11 miles of main abandoned $11.2 million invested in Florence capital improvement projects

Funding promises to employees Pension plan 88% funded as of January 1st, 2018 Contributed $7 million to OPEB trust fund in 2017

Bond ratings: Water upgraded from A1 to Aa2 by Moody’s (AA- by S&P). Gas remains strong at Aa2 (AA by S&P).

Debt service coverage of 3.17x (1.2x required by bond agreement)

41

Financial Stability: Progress in 2017 cont.

Cash reserves exceed target of 180 days cash on hand (Gas=215; Water=357)

Completed Central Plains Energy Project (CPEP) #3 Refunding Transaction enabling CPEP to refund 2012 Bonds in 2022 with Lower Interest Rates $77 million increase in gas price discounts from 2022-2038

Entered into 30-year Prepay with Tennessee Energy Acquisition Corp.

$0.27/Dth discount for first 5 years resulting in $1.4 million savings

42

Prepay Estimated Discounts 43

– Discounts based on extending existing agreements as well as pending agreements over next 2 years

– Estimated $73M in savings over 10-yr Period – CPEP #1 volumes stop flowing on 10/31/20 reducing 2021 discounts. CPEP #3

discount increases from $0.35/Dth to $1.35/Dth in August, 2022.

$-

$0.050

$0.100

$0.150

$0.200

$0.250

$0.300

$0.350

$0.400

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

PrePay Discounts

Est. Annual $ Est. $/Dth Total Sales

CPEP #1 vol. stops flowing

Pre-pay discounts increase from $5M to $10M in next 5 years

Proper Funding of Promises to Employees 44

The District’s pension plan had assets of $402,738,799 at December 31, 2017, representing a funded ratio of 88%.

$7 million contributed to OPEB trust fund in 2017; Cash funding in 2018 will be 94% of annual required contribution.

$3.9 $3.2 $4.0 $4.3

$5.0 $7.0

$12.5

22%

46%

66%

94%

0%

20%

40%

60%

80%

100%

$-

$5.0

$10.0

$15.0

$20.0

2015 Actual 2016 Actual 2017 Actual 2018 Budget

OPEB Cash Funding($ in millions)

"Pay-As-You-Go" Trust Funding Cash Funding as % of Annual OPEB Cost

Maintaining Adequate Cash Reserves 45

Cash reserves remain strong in both Gas and Water. Internal goal is to maintain an amount equal to six

months of operating expenses (180 days).

Financial Stability: 5-Year Rate Increase Trends 46

5.5%

5.0%

3.5%

2.5% 2.5%2.5%

0.0% 0.0%

1.0%

0.0%0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

2014 2015 2016 2017 2018

Rate Increases

Water Gas

**Water rate increases were to both service charge and commodity except 2018 where the increase was only to commodity**

Financial Stability: Priorities for 2018 Achieve bottom line budget targets in 2018 for Water and Gas,

while maintaining an appropriate balance in other aspects of the District’s operations, and adjusting spend rate to compensate for weather and other unknown factors.

Operate at 825 full-time employee level

Replace 40 miles of cast iron gas mains Replace 11 miles of water cast iron mains Increase OPEB trust funding to $12.5 million in 2018 Continue capital spend management

$32.6 million bond issuance planned in 2018 to fund portion of GIR spending through 2020 $38.7 million bond issuance planned in 2018 to fund Florence CIP through 2021 Major system improvements of $9.8 million planned in 2018 (West Farm development)

Continue marketing and expand economic development efforts

Long-term Water Supply Planning with City of Lincoln

47

Gas Sales (DTH)

Water Pumpage (MG)

Annual Sales Trends 48

48,000,000

53,000,000

58,000,000

63,000,000

68,000,000

73,000,000

78,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

Total Gas Sales (DTH) Water Pumpage (MG)

CNG Sales 49

2018 CNG Sales as a whole are projected to be equal to a Top 10 gas customer.

Austin, TX

Des Moines, IA

Kansas City, MO-KS

Nashville, TN

Omaha

Raleigh, NC

0

50

100

150

200

250

300

350

400

2001 2005 2010 2015 2020 2025 2030 2035 2040

Real GDP (in billions of chained 2009 dollars)

Austin, TX Des Moines, IA Recession

GDP Comparison 50

Austin, TX

Des Moines, IA

Kansas City, MO-KS

Nashville, TN

Omaha Raleigh, NC

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

2010 2015 2020 2025 2030 2035 2040

Population (in millions)

* * * *

Source: U.S. Census Bureau, Population Division * Projection

Population Growth 51

3.1%

1.9%

0.8%

2.4%

1.1%

1.8%

Est. Avg. Annual Growth Rate

Customer Growth 52

100,000

150,000

200,000

250,000

300,000

350,000

400,000

2003 2005 2007 2009 2011 2013 2015 2017 2019 2021

MUD Customers

Gas Water

5-Year Projected Annual Growth Rate: 0.8%

Questions or Comments? 53