WIXLIB

very important for every employee to be part of the BTESteam as a whole, without segmentation. BTES does notcreate organizational charts vertically, but instead createsthem horizontally to show that employees stand besideeach other. BTES employees are our most importantasset. They provide the intelligence and determine thereputation of our organization. They are respected asvaluable team workers striving to meet our goals of qualityservice. We are committed to providing a safe and healthyworkplace for all BTES employees who are the drivingforce behind all we do.P.1a (4) The BTES office building is located at 2470Volunteer Parkway in Bristol, Tennessee, central to mostof our customers. The BTES system is made up of 19substations, 1,295 miles of electric distribution lines and15,724 transformers totaling 614,550 kVA, six fibernetwork hub sites, 195 Local Convergence Cabinets(LCC) and 944 miles of fiber optic cable.BTES provides competitive pay and benefits that arecompared at the local level and within the electric utilityindustries. BTES also provides employees witheducational opportunities and an open voice in decisionmaking.The combination of our electric and fiber optic system isunique. BTES uses our fiber optic system to integrateseveral innovative systems to ensure our electric servicesare more effective and efficient. This is an innovative,cutting-edge approach in operating an electric grid. Weeffectively use a Supervisory Control and Data Acquisition(SCADA) system to aid in outage detection, loadswitching and voltage regulation. We also have a PowerOutage Reporting and Call Handling Equipment(PORCHE) system which is used for tracking customeroutage calls. In addition, BTES also has a power alarmsystem which utilizes the fiber optic system and notifiesBTES of a customer outage. We also install loadmanagement switches on water heaters to help reduceload in peak situations which will help keep customers’electric bills lower than it would have been otherwise.BTES provides extensive training through apprenticeshipprograms in the Construction and Meter and SubstationsDepartments. The 4-1/2 year on-the-job, correspondenceand classroom program tests the skills and knowledge ofthe apprentice and prepares them for any situation. As aresult of BTES' highly educated, trained and skilled workforce, BTES employees are capable of performingdifferent jobs allowing an extremely low employee-tocustomer ratio (figure 7.3-1).Most recently, BTES began automating our electricsystem with the installation of intelligent devices acrossour system called IntelliRupters. These devices candetect an outage, isolate the problem area andautomatically restore power in a matter of seconds. BTES’customers have already seen a significant reduction inoutage times (figure 7.1-1) and, once the system is fullyinstalled, will see an even more significant decrease inoutage times.Key workforce engagement drivers are determined anddeployed using the annual employee performanceappraisal process and include:P.1a (5) BTES is regulated by a contract with TVA andthe TVA Federal Act under the Public Utility RegulatoryPolicies Act. We must comply with guidelines set forth bythe State of TN Municipal Audit Division, the TN CodeAnnotated, the Federal Energy Regulatory Council, theNational Electric Safety Code and the EnvironmentalProtection Agency.We build and maintain our culture through our storytellingtechnique that is used across our entire workforce. Thestories that are told relate to our culture and support ourmission and vision. BTES’ values and storytellingtechnique engage its workforce to accomplish the missionand vision. Workplace SupportCareer DevelopmentFair TreatmentFamily-FriendlyCommunity InvolvementRecognition/Reward ProgramsBTES places a high level of importance on employeesafety. Our special health and safety requirements includeelectrical safety, environmental, chemical materials, lifting,and customer threats, among others. Our safetyprocedures are detailed in 5.1b(1).In compliance with Public Chapter 561 of the GeneralAssembly of the State of TN, BTES established anOccupational Safety and Health Program for ouremployees, under the TN Occupational Safety and HealthAct of 1972 and Part IV of the Tennessee OccupationalSafety and Health Plan. This plan is administered by ourDirector of Operations and Safety under direction of theCommissioner of the TN Department of Labor andWorkforce Development.

The Tennessee Regulatory Authority (TRA) has authorityover the BTES’ telephone service and the FederalCommunications Commission (FCC) has federal authorityover telecommunication services.P.1b Organizational RelationshipsP.1b (1) BTES is governed by a five-member Board ofDirectors appointed by the Bristol Tennessee CityCouncil. The Board governs the utility and plays animportant role in the planning, prioritizing and approvalprocess. The Board has input into the Strategic PlanningProcess (SPP) and approves the Strategic Business Plan(SBP), annual budget and all purchases above 50,000.The CEO is appointed by the Board and is accountable tothe Board. The CEO appoints all other positions and setstheir duties and compensation. The CEO leads thecompany, and a monthly Board meeting that is open tothe public is held to review and approve the ongoingaffairs of the organization.P.1b (2) BTES’ major customer is the electric user. BTES’electric system currently serves 28,784 residentialcustomers and 4,657 general power customers in Bristoland Sullivan County in Tennessee and a portion ofWashington County, Virginia. A smaller set of customerrevenue includes electric customers who also haveInternet, telephone and cable television services.Our key customer requirements are reliable, safe andcost-effective service. BTES is expected and required toprovide reliable, safe and cost-effective services to thesame degree among our customers and stakeholders.BTES stakeholders consist of anyone who might beaffected by our actions and success including ourcommunity, customers, workforce, partners, suppliers andcollaborators.We offer many support services including our EnergySavings Loan Program, Heat Pump Program and HelpYour Neighbor Program, among others.BTES has a very creative and innovative Existing IndustryProgram that supports economic development and givesBTES the opportunity to listen to its existing industrycustomers. This program also allows BTES to assistindustries/businesses with growing their business,retaining their current employee base, supportingworkforce development, adding new employees, addingcapital investments and adding electric load and fiberservices. BTES has developed and maintainedrelationships with all existing industries/businesses in theBTES service area. This program allows BTES to conductcommunity surveys to assess interests, needs, concernsand threats to staying in business. The information ismaintained and updated every time contact is made withan existing industry or business allowing BTES tounderstand trends and identify potential threats. Thisprogram has been recognized as one of the mostsuccessful programs in the region and has beenshowcased in several neighboring communities. Also,BTES staff instructs a Business Expansion and Retentionclass based on the Existing Industry Program at theUniversity of Tennessee.P.1b (3) Our vendors and suppliers are our partners. Wetreat our vendors and suppliers with respect and createan environment which will ensure mutual success.Key suppliers and partners are provided with opencommunication and some participate in weekly meetingsto share and discuss opportunities for improvement andnew ideas and processes. As opportunities for innovationpresent themselves, BTES works closely with our keysuppliers and partners to be able to provide the mostreliable, safe and cost-effective services in implementingnew innovations through weekly conference calls andmeetings. They must mirror BTES' mission and culture ofproviding services that exceeds expectations. We expectand require them to provide us with reliable, safe andcost-effective services, just as our customers andstakeholders expect and require of us.Figure P.1-3Key SupplierRoleTennessee ValleyAuthority (TVA)ElectricityNokiaElectronics for Fiber Optic SystemOnTrac, Inc.Installation of Fiber Optic Servicesat customer’s premiseCarina TechnologiesSystem to gather and manage datafrom Fiber Optic System and WaterHeater ProjectAsplundh Tree ExpertCompanyTree TrimmingHeat Pump DealersInstalls heat pumps for Heat PumpProgramSoutheastern DataCooperative (SEDC)Customer data and billing servicesWater HeaterInstallersInstalls water heaters for WaterHeater ProgramFive, IncFiber optic billing and advisingDesktop Co-OpHosted applications, data storageand enterprise mail

BTES also partners with the City of Bristol, TN; State ofTN; TVA; and NETWORKS-Sullivan Partnership toidentify and assist businesses with expansion andrelocations to the Bristol area. For the 25th year, incooperation with the Bristol Chamber of Commerce; theCity of Bristol, TN; and NETWORKS-Sullivan Partnership,BTES has maintained the Governor's Three-StarCommunity Economic Preparedness Program Awardwhich signifies that Bristol, TN has the organization,attitude, facilities and skills to attract and retain industry. Amajor component of this certification is having availableproperty for industrial development. The Bristol IndustrialPark and the Bristol Business Park purchased anddeveloped by BTES provide this component as well aselectric power and fiber optic technology availability forfuture growth.P.2 Organizational SituationP.2a Competitive EnvironmentP.2a (1) BTES competes with the local gas companybeing the main energy competitor. Currently, it costs lessto heat a home with a BTES inspected electric heat pumpthan with gas. Since electric rates can be a determiningfactor in the location or expansion of industry, BTES playsan important role in the health and prosperity of the Bristolcommunity. Therefore, we consider all electric distributionutilities to be competitors. In recent years, several majorcompanies have located in our area due, in part, to thereliability of the electric system, high safety standards andcompetitive electric rates offered by BTES.For cable television, BTES is working to manage ourcustomers’ monthly bills by fighting excessive TV networkfee increases from large media conglomerates.BTES has been very innovative in the programs we offer.In many cases, we are a pioneer. Some examples: BTES implemented an innovative Water HeaterProgram over 30 years ago that has continuouslybeen improved on. Today this program uses our fiberoptic system to monitor and manage the usage ofwater heaters and to move load from the higher costtime periods to the lower cost time periods. This canhelp lower customers’ bills while lowering TVA’s andBTES’ cost. During peak load hours, the DemandResponse Control System can temporarily turn offselected, or all, water heaters and minimize theelectricity used during this time, all while monitoringthe current temperature of the water to ensure thatthe customer has available hot water. The controlsystem will also monitor and turn on or recharge thewater heaters over a phased-in non-peak usage timeto minimize customer costs. BTES also implemented an innovative VoltageControl Program that involves the management andmonitoring of the real time voltage being delivered tothe home or business. This is accomplished bydynamically turning on and off 13.2kV capacitors andchanging voltage regulators already installed in theBTES system.Our customer base for our fiber services is directly basedon our electric customer base since we are legally notallowed to provide services outside of our electricfootprint. We serve over 17,000 fiber customers. BTES isthe home town provider and offers competitive rates,reliability, and a strong customer service focus. BTES’ Existing Industry Program, detailed inP.1b(2), is a key component in helping BTES staycompetitive, attract and retain industries andbusinesses, support economic development andcollaborate with our community.P.2a (2) We constantly monitor the electric utility industryand other related businesses so we can provide the bestvalue for our customers and our community. We reviewour findings annually during the SPP. BTES’ Automated Switching System through theuse of IntelliRupters is unlike any in the country.BTES is able to remotely and automatically monitorand control our electric system and significantlyreduce outage times with the use of this system.Currently, power supply and surrounding issues continueto be a concern. Employees and board members haveattended meetings and seminars to keep updated on theprogress of power supply to ensure that BTES ispositioned to best serve our customers in the new andchanging environment. BTES provides the fastest Internet currently availablein the United States and offers 10 gigabits persecond to every business and every home in ourservice area.BTES works with APPA, Tennessee Municipal ElectricPower Association (TMEPA), Tennessee Fiber OpticCommunities, TVPPA and local legislators to stay up to

date and influence favorable language for our customerswithin telecommunication and electric legislation to ensurethat our customers and potential customers receive worldclass service at reasonable prices.P.2a (3) BTES is a role model in providing among thehighest reliability at among the lowest cost while doing sowith one of the best safety records in the nation. BTES isbest in class in all of these areas when compared to otherTennessee Valley Authority (TVA) local power companieswhich is the most relevant comparison group.TVA is the primary source of information for comparingourselves to other electric distribution utilities. Othersources include: APPA, TVPPA, TMEPA, Electric PowerResearch Institute (EPRI) and individual utilities. TheAccounting and Finance Department also gathersinformation on rates. Engineering and Operations hasaccess to information and data on outage times andinformation regarding the electric distribution, mappingand dispatching. Management Services keeps data onemployment and wage statistics, employee to customerratios and fringe benefits.BTES also gathers comparative information on rates,market share and customer satisfaction levels for our fiberservices.P.2b Strategic ContextFigure P.2-1 – Strategic ContextStrategicAdvantagesStrategic Challenges Attracting a Highly Educated Workforce Capital IntensiveFacilities SpecializedTechnologicalExpertise Cost of Fuel Technological Changes External Facilities Threats Power SupplyOur advantages are driven by our core competencies withour capital intensive facilities and highly competent andspecialized technological expertise. BTES reviews ourcore competencies and strategic advantages annuallyduring our SPP to ensure alignment and integrationthroughout the organization and to ensure that BTES istaking full advantage of our strategic advantages to createcompetitive advantages.P.2c Performance Improvement SystemSince 2007, BTES has implemented a very mprovement. It is based on analysis and measurement ofdaily customer feedback questions, complaints andconcerns. Key employees from every department havebeen participating in a Continuous Improvement Team(CIT) and our Improvement Initiative Process (IIP). Everycustomer communication is grouped as a positive or anopportunity for improvement (OFI). These are tracked bydepartment then by subcategory. The data gatheredthrough this process are used to define customer needs,technological requirements, employee training provements and future strategies that are part of ourSPP. The ultimate goal is to serve our customers and coworkers more effectively every day and ensure that weare aligned as an organization based on our mission,vision, values and KSF.For example, the Customer Service OFIs and positiveshave gone through many improvements including addingadditional categories to provide more detail. One specificexample is that we originally tracked how manycustomers called for an arrangement (meaning theywanted to extend their due date without interruption ofservice). We then expanded this category to track thenumber of customers that call for an arrangement but thatwe cannot give them one. In addition, we are now alsotracking the reason why we cannot give that arrangementto see trends in billing cycles, specific reasons or times ofyear. We have used this information to improve ouroverall arrangement process and communication we havewith our customers. Most recently, this has helped uslaunch an Interactive Voice Response (IVR) system sothat customers can set up arrangements on their own,among numerous other options.BTES uses the CAP DO approach (Check, Act, Plan, Do)for decision making, continuous improvement initiatives,organizational learning and innovation processes. Thisapproach is used throughout BTES ranging from theindividual level, entire departments and the organizationas a whole. BTES encourages and expects decisionmaking skills at every level of the organization.

1 Leadership1.1 Senior Leadership1.1a Vision and Values1.1a (1) BTES’ senior leaders, which include the CEO,Director of Management Services, Director of Operationsand Safety, Director of Engineering and Director ofAccounting and Finance, set and annually review ourMVV (see P.1) as part of our annual Strategic PlanningProcess (SPP). Senior leaders personally lead thisprocess and disseminate updates to employees throughweekly departmental meetings. The MVV are in theannual Strategic Business Plan (SBP), a product of theSPP, which is reviewed, critiqued and approved by theBoard of Directors then deployed to the workforce.Senior leaders ensure that our vision and values aredeployed throughout the entire workforce and to keysuppliers, partners, customers and other stakeholders byusing multiple forms of communication. The CEO uses anarticle in the employee newsletter, Telowatt News, and anarticle in the customer newsletter, BTES News, to conveyBTES’ emphasis on continuous improvement, customersatisfaction and exceeding expectations. The MVVsystem are posted throughout the building. They are alsodisplayed on the BTES website and the BTES televisionchannel 13. Attendance at weekly departmental meetingsand the employee performance appraisal system areadditional methods that senior leaders utilize to ensuredeployment methods for the MVV are appropriate anduseful. BTES’ senior leaders and employees are alsotested quarterly through our SMART training program toensure deployment and integration of our MVV and theRotary 4-Way Test.Senior leaders reflect commitment to BTES valuesthrough their daily decisions and behaviors which supportand show commitment to our MVV and key successfactors (KSF). Senior leaders developed a ContinuousImprovement Team (CIT) that includes key employeesfrom each department and key suppliers and partners tomeet on a weekly basis to discuss ongoing projects andany organizational issues to strive towards organizationalexcellence. This team reports OFIs and positivecommunications for every department and can quicklymake decisions to implement new processes to decreasethe OFI. Since the improvements are based on issuesthat impact the KSF and what customers value, theprocesses systematically use all the values. The teambases all decision making on BTES’ MVV and KSF andreports back weekly on the outcomes of processes so thatwe can continue to learn and improve.Senior leaders’ actions reflect commitment to BTES’values by following the Rotary 4-Way Test and being rolemodels for the organization. The Rotary 4-Way Test isrecited weekly during the CIT meeting and departmentalmeetings, reviewed annually during our SPP to ensurethat it remains relevant and aligned with our MVV and islisted in our annual SBP which is distributed toemployees. Plaques and coins promoting the Rotary 4Way Test are displayed on employees’ desks andthroughout the building to ensure the entire workforce,key suppliers, partners, customers and other stakeholdersare aware and reminded of our values and our decisionmaking process. Senior leaders also use our storytellingtechnique, detailed in 1.1c(1), to support and maintain theBTES culture.BTES’ senior leaders’ leadership approaches aresystematically reviewed on an annual basis through theperformance appraisal process to determine opportunitiesfor improvement. This evaluation process helps BTES’senior leadership team show commitment to our valuesand continuous improvement efforts.1.1a (2) Actions of BTES’ senior leaders showcommitment to and promote an environment of legal andethical behavior by modeling correct decision making and behaviors, communicating openly and honestly, creating a culture of open communication anddecision making at every level, and embodying how we treat others through s

BTES offers Internet (6.78 percent of revenue), telephone (3.86 . percent of revenue) and cable television (9.17 percent of revenue) services through our fiber optic system. BTES offers the fastest Internet speeds currently available in the United States with 10 gigabits per second