Engauge: October/November 2024 by citizensenergygroup

State of the Trust 2024

THE BIG PICTURE

2020 N. Meridian Street

Indianapolis, Indiana 46202

www.citizensenergygroup.com

TRUSTEES

Dennis Bland

Jamie Merisotis

Jackie Nytes

Mel Raines

Brian Williams

DIRECTORS

Anne Nobles, Chair

Jeffrey Good, Vice Chair

Daniel Appel

Moira Carlstedt

Christia Hicks

J.A. Lacy

José Martínez

Maria Quintana

Nichole C. Wilson

OPERATING MANAGEMENT

Jeffrey Harrison

President & Chief Executive Officer

J.P. Ghio

Vice President, Energy Operations

Mark Jacob

Vice President, Capital Programs & Engineering / Quality

Jeff Willman

Vice President, Water Operations

Craig Jackson

Senior Vice President and Chief Financial Officer

Sabine Karner

Vice President and Controller

Joseph M. Perkins, Jr.

Senior Vice President and General Counsel

Joe Sutherland

Vice President, Regulatory Affairs

Jodi Whitney

Vice President, Human Resources & Chief Diversity Officer

Mike Strohl

Senior Vice President, Chief Customer Officer

John Lucas

Vice President, Information Technology

Curtis Popp

Vice President, Customer Operations

COMPANY VISION:

Enhance the well-being of our customers, communities, and employees by providing unparalleled service now and for generations to come.

COMPANY MISSION:

We fulfill the Promise of the Trust to provide essential utility services for our customers and communities, maintain the lowest possible rates with sound financial management, and create the greatest long-term benefit through a unique business structure.

ENGAUGE

Engauge is published by Citizens Energy Group, Corporate and Public Affairs Department, under the direction of Shannon Stahley, Director of Corporate and Public Affairs. It is distributed to the company’s employees and retirees, and to other interested parties upon request. The Corporate and Public Affairs Department welcomes any ideas, comments, or suggestions from readers on how this publication might better serve you. Please email the Corporate and Public Affairs Department at alowe@citizensenergygroup.com or call 317.927.4336.

Editor: Adam Lowe

Contributors:

Tracey Black

Ben Easley

Susan Harris

Courtney Trickle

Terri Zaichek

Graphic Arts:

Wayne Stohs

Joel Bustamante

$155,853.08

$311,706.16

$39,000 Retiree Match

$14,265.72 Raised by Online Auction

$403,971.88 Overall Giving Year to Date / Grand Total 6 Sessions Held for

44 Participants in United Way Trivia

Citizens Energy Group leaders gather for State of the Trust, held September 19 at Indy Parks' new Frederick Douglass Park Family Center. Read the feature on page 4 and learn how Citizens is taking a look at The Big Picture.

Q&A Meet Jessica Sharp, Valve & Hydrant Technician

Jessica Sharp joined Citizens Energy Group as a part-time Meter Reader in 2013. After leaving Citizens in 2015, she returned in February 2022 as a Utility Helper. Today, Jessica is a Valve & Hydrant Technician and is working toward her career goal of becoming an engineer.

1. What did you do prior to coming to Citizens?

I worked at the United States Postal Service as a Carrier and Mail Handler, and at Allison Transmission as an Operator and Skilled Assembler. I also attended Ivy Tech Community College while working to obtain my associate degree and plan to go back to school in the near future to finish my Bachelor of Science in engineering.

2. Tell us about your team/department, and what you are responsible for at Citizens.

My current position is a Valve & Hydrant Technician in the Water Production and Distribution area. I assist the mechanics with maintenance on all the equipment. I also repair and test valves and water hydrants with the mechanic to ensure proper operation.

3. What do you enjoy about your job?

I’ve always been an outdoors person, so I really enjoy working outside and seeing all the different areas of the city as opposed to working in the office. I also enjoy learning the different aspects of this role in how water is distributed throughout the city. I find myself explaining what I do in detail to my friends and family when I pass a hydrant that I’ve worked on.

4. What are some of the challenges you face in your job?

My biggest challenge is arriving at a job site when the weather is bad. I prefer 70-degree weather and sunny every day, but those unpredictable days of extreme hot or cold can be challenging when you are out there in it. But we have a job to do, so we find ways to motivate ourselves and be safe.

5. How do you spend your time outside of work?

I am a mom of three awesome kids, two girls and one boy, ages 4, 3, and 2. I enjoy spending time with my husband, Donovan, and my friends and family by relaxing at home or traveling to a Caribbean destination for a long vacation. I also enjoy going to car shows with my husband and riding my motorcycle when the kids are visiting their grandparents.

Nominate a Coworker for a Customer Champion Award

Employees are encouraged to share “wow” stories about coworkers who demonstrate the best practices of owning the customer experience: closing the loop, making it personal, challenging the process, acting with urgency, identifying unvoiced needs, collaborating, knowing the business, and continuously improving. Quarterly nomination deadlines are December 31, 2024, and March 31, June 30, September 30, 2025.

Just click on the Customer Champion logo from the iTrust home page.

THE BIG PICTURE State of the Trust 2024

The annual State of the Trust event was held on Thursday, September 19 at Indy Parks’ new Frederick Douglass Park Family Center, highlighting news and accomplishments from fiscal year 2024 and providing a big picture look at the year ahead.

The following is a summary of what was presented:

National Jefferson Award Winner Recognized

Jeffrey Harrison presented Terrell Al-Sharif with a national Jefferson Award – the first time a Citizens employee has been recognized with the national honor – along with a $5,000 check to help Indy Rarebreed Academy, a wrestling academy providing inner city youth with learning and growth opportunities, to continue their important work.

The Big Picture: Systems and Community Thinking

Big-picture thinking, or systems thinking, has been used by Citizens for years and emphasized in our One Company One Culture commitment, enabling us to avoid the pitfalls of operating in silos. This same approach applies to the community—the work we do as an organization has a direct impact on the community and the people who reside there. This is reflected through initiatives such as Sharing the Dream, our Neighborhood Ambassador Program, the Investment Collaboration on Neighborhoods (ICON), and events like Community Resource Day.

The Big Picture: Lead Service Line Replacement

Citizens $5 million-per-year IURC-approved lead service line replacement program (LSLRP) has great momentum. Since December 2023, Citizens has been awarded $21 million from the Indiana Finance Authority State Revolving Fund in forgivable and no-interest loans to accelerate lead service line replacements in the Martindale Brightwood neighborhood.

The Big Picture: Enhancing Quality of Life

Our natural gas utility recently broke ground on multi-year project to upgrade four miles of legacy natural gas pipeline at key locations on the east side of Indianapolis. We reached two DigIndy milestones this year: The tunnel system has now prevented nearly 6 billion gallons of sewage from entering our waterways, and we planted the 10,000th tree in our 10 Thousand Trees program. By the end of 2024, the Pleasant Run Tunnel is expected to connect to the Deep Rock Tunnel Connector, marking five of six tunnels becoming operational. At Thermal, infrastructure has expanded to serve the new Elanco headquarters, growing IU School of Medicine facilities, and the upcoming Signia by Hilton hotel.

The Big Picture: Strategic Outlook

Looking forward, we must confront challenges, including implementing a monumental Lead and Copper Rule Revision from the United States Environmental Protection Agency; transitioning DigIndy from construction to operation and compliance; remaining reliable, affordable, efficient, and relevant as global attention on renewable energy intensifies; and navigating multiple imminent leadership transitions at the officer level. Looking at 2025, we will be taking the following strategic actions: establish an outreach program that further engages and supports the diverse communities we serve, develop and provide to all employees a total rewards statement, develop a sustainable and consistent process to close gaps in fee invoicing, and migrate to a predominantly electronic payment business model.

Officers Share Success Stories

As you can probably guess after watching/reading about Jeffrey Harrison’s State of the Trust address, we could fill an entire issue of Engauge with FY2024 success stories. Since we don’t have the space, we’ve gathered some of the most notable highlights from our Officers here.

Craig Jackson, Senior Vice President & Chief Financial Officer

• Since the implementation of the Building the Future Together program in FY2022, the participants of the program (7NT, CMID, and VETS) have accomplished the following: 80% increase in Tier I spend with Citizens; 26% increase in Tier II/Prime spend with Citizens; 16% increase annual revenue; and 9 FTEs & 3 PTEs hired.

• The Accounts Payable (AP) team worked with IT to implement Azure/Inview for invoice processing and viewing. This application replaced ImageNow/WebNow, which went into service in 2005 and was unsupported since 2021. During this implementation, the AP met its metric of processing invoices within 2 business days.

Joe Perkins, Senior Vice President & General Counsel

• The Environmental team has played a critical role in ensuring Citizens compliance with the LCRR by the deadline of October 16. Their leadership and organization has been invaluable over the past three years.

• Legal and Regulatory Affairs collaborated to develop a Dewatering During Construction Rate for the Signia Hotel. The new rate has been filed with the IURC and, if approved, will become the new standard for dewatering rates for future construction projects in the downtown area.

• The Legal and Regulatory Affairs teams led the successful execution of the Westfield Water rate case.

Mike Strohl, Senior Vice President & Chief Customer Officer

• A cross-functional team of employees spent three months developing an Artificial Intelligence (AI) strategy for the Trust that includes a framework for how we will evaluate AI technology deployment and parameters for its use.

• The Corporate & Public Affairs team continues to proactively build and maintain collaborative external relationships and execute robust public outreach strategies on behalf of Citizens such as working with CP&E and others in rolling out a successful outreach and communications effort for the LSLRP.

• The Sales and Marketing team secured long-term agreements to provide steam and chilled water service to the new Signia Hotel in downtown Indianapolis.

J.P. Ghio, Vice President Energy Operations

• For the fourth year in a row, Gas made improvements in the operations of underground storage. In winter 2022-2023, the maximum storage withdrawal was 151,265 dekatherms. During the past winter, a new maximum was set at 166,710 and exceeded 160,000 over several days, demonstrating reliable and repeatable results. The new capabilities allow Citizens to provide value to the beneficiaries of the Trust via lower costs of gas and increased wholesale storage margins.

Mark Jacob, Vice President Capital Programs & Engineering/Quality

• In a team effort with Water Operations, we accelerated and implemented a complex capital project to relocate a 36-inch diameter water transmission main for the Indiana State Archives expansion project along the downtown Central Canal. The SRF-funded $2 million project was completed within a two-month construction timeline and involved the successful trenchless installation of the large diameter water transmission main more than 1,400 feet under the canal and the Ohio Street bridge.

• Our Quality team of Susan Harris Tim Gerardot Erin O’Leary, and Staci Turner continue to exhibit leadership across the Trust as they help our colleagues reach their goals. They are managing the hiring process for CP&E interns, making improvements to the revenue allowance process for water and wastewater, and leading the annual AWWA benchmarking survey for water and wastewater, respectively.

Sabine Karner, Vice President & Controller

• Courtney Trickle, Senior Accountant, participated in one of the strategic planning teams this year for the first time. When the time came to present the team’s progress in a large setting, the subject matter expert for one of the proposals could not attend, and Courtney volunteered last minute to present. Courtney had limited knowledge of the proposal and knew herself to be anxious about public speaking, but she nonetheless jumped in to help the team. After this initial experience, she wanted to improve her presentation skills and asked to be the presenter for the final round. When she presented to the Officer group, she was nervous but self-assured and presented well. A wonderful example of continuously improving ourselves and preparing employees to be leaders.

John

Lucas, Vice President Information Technology

• To address the ever-evolving cyber threat landscape, we implemented several critical projects, including the NextGen Firewall (NGFW) project to shield Citizens from Internet-based threats, Endpoint Detection and Response (EDR) systems to detect and counter threats on our network, immutable backup storage to protect data from ransomware, and micro-segmentation to mitigate the risk associated with unsupported legacy systems.

• We initiated projects aimed at enhancing the security of our Operational Technology environments, which are essential for utility operations. Most notably, CP&E, Water Operations, and IT launched a multi-year initiative to modernize the control systems for our water production and distribution systems. This modernization effort significantly bolsters cybersecurity controls, enabling us to better prevent and detect threats within these environments.

Curtis Popp, Vice President Customer Operations

• Customer appointment on-time rate improved from 92.6% to 94.7% (through June), and we have maintained a 96.6% or higher rate since February. In addition, we’ve offered a 57% increase in two-hour and four-hour move-in appointment windows, and we’ve seen an approximate increase of 19,000 more move-in appointments scheduled.

• Citizens received an Expanding Excellence Award for Innovation in Field Service Management in commendation for our implementation of the KloudGin field service management system at the annual CS Week conference earlier this year.

Joe Sutherland, Vice President

• The Regulatory and Legal teams received Indiana Utility Regulatory Commission approval for Distribution Service Infrastructure Charge (DSIC) for Citizens Water in November 2023, which was our second attempt to use the state statute for cost recovery of distribution infrastructure expense in between rate cases. The approval established recovery of $31.3 million in eligible projects to be recovered over a 12-month period.

• The Regulatory and Legal teams also led the successful update of the annual adjustment amount (approved annual spending) in the LSLRP. This updated adjustment amount will allow Citizens Water, under the existing LSLRP, to recover costs ranging between $10 million to $25 million per year. This is expected to be especially advantageous to beneficiaries of the Trust, as customer-owned lead service lines will be replaced in half of the time originally expected.

Jodi Whitney, Vice President Human Resources & Chief Diversity Officer

• Human Resources had a number of successes in FY2024, including Citizens receiving the Employer of Choice Award at the Mayor’s Celebration of Diversity event; holding successful Safety Days and health fairs for employees; and launching a new employment branding initiative and external Careers web page.

• The team has also begun to discuss development of an in-depth onboarding/training program for people hired/promoted into supervisor or manager roles.

Jeff Willman, Vice President Water Operations

• Water Production received the Partnership for Safe Water Presidents Award for the Fall Creek Treatment Plant and obtained IDEM approval of orthophosphate feed systems for improved corrosion control in preparation for new Lead and Copper Rule Revision requirements. Water Distribution stayed busy year round, repairing main breaks during inclement weather in January – 105 in a two-week period alone – and filling the Olympic Swimming Trials pools in May.

• The Belmont Advanced Wastewater Treatment Plant received the NACWA Platinum 11 Peak Performance Award for excellence in wastewater treatment as measured by perfect compliance with its NPDES permit for 11 consecutive years. Wastewater Collections used funds from the Metalworking Lubricants settlement agreement to complete cleaning of the Adler-McCarty Interceptor, saving around $200,000 compared to original cost estimates.

• The Westfield Wastewater Treatment Plant is going through an expansion that will increase its capacity by 25%.

Benefits Corner

What is a Qualifying Life Event?

You can only add and/or drop coverage and dependents during the Open Enrollment period and/or when you experience a Qualifying Life Event (QLE).

A QLE could be any of the following:

• Marriage

• Birth or adoption

• Court order

• Loss or gain of other health coverage

• Loss or gain of Medicaid coverage

You have 30 days from the QLE effective date to complete the election change process through BSwift and upload proof of change documentation. If you miss the 30-day deadline, your next opportunity will be the next Open Enrollment period or if you experience another QLE.

Review and Update your Beneficiaries!

It is tough to think about and easy to ignore, but if you were to pass, the people who depend on you could have financial and legal troubles.

To make it less stressful for them, it is important that you review and make necessary updates to beneficiary designations for your life insurance, retirement accounts, and Health Savings Account.

Take five minutes and update your beneficiaries now by clicking below and going to the “beneficiaries” sections:

• Life Insurance and Pension Plan through BSwift at ceg.bswift.com (use a Citizens device to access SSO)

• Please update your emergency contact information as well.

• Health Savings Account through Chard-Snyder at chard-snyder.com

• 401k through Fidelity at netbenefits.com

Note: If you have individual accounts (not through Citizens), we recommend you review those as well.

Employees and spouses can stay up to date on benefit changes, deadlines, and more with Citizens Connect. Scan the QR code to create your own account. Go to settings to add your phone number or email address to get started.

Accounting Team Spreads Spooky Cheer

Just when you thought basic accounting was already scary, members of the Accounting team got together to spread some good-natured Halloween fun around the Trust. The team dressed up as some of your favorite Hollywood killers, showing just how calculating accounting professionals can be. Rest assured, they had no accrual intentions, but they were fully prepared to handle all suspense accounts. Jaws even took a moment to chew on the recently updated vision, mission, and values – he knew you’d depreciate it.

Phil Zbojniewicz (as Freddy Krueger), Joseph Ko (as Jaws), Katrina Revere (as Jason), James No (as Chucky), Joseph Perkins, Megan Buehler (as M3gan), Jason Howard (as Sam), Colleen Rosene (as Pearl), Nick Smallwood (as the Killer Clown), Craig Jackson, and John Goebes (as Billy Butcherson).

SECOND ANNUAL

ECLIPSES EXPECTATIONS

While gates were scheduled to open at 10:00 am for Community Resource Day at Citizens General Office, that didn’t stop a crowd from lining up for the event more than an hour in advance. Minutes before opening the event, the line stretched from the employee entrance gate at Illinois Street across the block to Meridian Street, then taking a turn north and continuing up the street. “Looking at the crowd that had gathered in anticipation of the event, I estimate we had more people waiting in line than we had throughout the entire day in 2023,” remarked Shannon Frederick, Corporate Events & Philanthropy Coordinator.

By the end of the day on October 5, more than 1,000 guests had participated in the event, ten times the crowd size of the previous year. While the day’s beautiful weather, coupled with a slightly later start time certainly helped, the team behind the event was quick to recognize the hard work of Kenya McMillin, Community & Stakeholder Engagement Manager, for her leadership in coordinating the event, supported by the Corporate & Public Affairs department, Citizens Neighborhood Ambassador Program (NAP) Ambassadors, and a wealth of volunteers. Terri Williams, Contact Center Supervisor, shared, “This event was nothing short of amazing! Kenya did a remarkable job of pulling this all together and executing her vision. Very positive response and turnout from the community we serve. Great job to all who were involved!”

In Central Indiana, more than 244,000 households are living in or at risk of poverty. Many members of our community lack access to essential resources, services, and information. Community Resource Day is an opportunity for our neighbors to get access to community organizations, local businesses, healthcare providers, educational institutions, and more. The goal is to connect Central Indiana residents to the resources they need to thrive.

Visitors received vouchers to enjoy a free lunch with our vendors, including Allan’s Extreme Nachos, Chef TLC, and That’s My Flavor Popcorn, where lines stretched across the parking lot throughout the day. Thanks to an invaluable partnership with Indy Hygiene Hub, an organization built on community, stewardship, authenticity, compassion, and respect, Citizens distributed 100 backpacks filled with school supplies, including crayons, pencils, notebooks, and more. Visitors could also receive free hats and gloves, as well as hygiene kits and gently used clothes.

Citizens staff were on hand to discuss utility assistance options available through the Warm Heart Warm Home Foundation™, as well as to help attendees learn energy efficiency, and gas safety.

In all, 40 community partners were present, showcasing their services and offering assistance to community members.

The event wasn’t all business though. Kids and families were invited to enjoy face painting, bike riding courtesy of Nine13Sports, games like Jenga, cornhole, and pickleball, and big-truck encounters. Indy’s favorite sports teams added to the excitement. Families were visited by the Indianapolis Colts cheerleaders, the Fever’s Freddie and the Inferno Hip Hop Squad, Indy Fuel’s Nitro, the Indians’ Rowdie, and the Pacers’ Pacemates.

Citizens is dedicated to enhancing the wellbeing of our customers and communities, and helping those in need access essential services while learning about the utility assistance available to them is a key part of our service to the community. Through Warm Heart Warm Home and partner programs such as Utilities Unite for Customers, our neighbors can find ways to keep their homes warm, their lights on, and their water flowing.

Thirty Citizens employees, retirees, and friends offered their time, hard work, and enthusiastic energy at the event:

• Joe Anthis

• Chrissy Bruns

• Eric Buntain

• Austin Burris

• Joel Bustamante

• Crit Crabtree

• Ben Easley

• Shannon Frederick

• Tommy Frost

• Alex Haberfield

• Rhonda Harper

• Sonja Grooms

• Derek Grubbs

• Lynn LaFara

• Adam Lowe

• Brett McClellan

• Dontraz McClendon

• Kenya McMillin

• Jairo Mendoza

• Clay Menzell

• Lavashia Primus, and daughter Jordyn Brown

• Sherly Rios

• Charisse Simpson

• Riley Simpson

• Wayne Stohs

• Cinthia Tello

• Lee Wadlington

• Ben Warren

• Terri Williams

CITIZENS FOR GOOD: VOLUNTEER SPOTLIGHT

Our volunteer spotlight is a chance to meet a Citizens Energy Group employee who is making a big impact in the community outside of their job. Citizens employees are encouraged to volunteer at Citizens-sponsored events, or at community organizations of their choice.

Meet Michelle Bennington

Michelle Bennington joined Citizens in 1989 as a Customer Support Associate and has held roles including Systems Project Leader and Gas Transportation Analyst. Today she serves as Manager of Gas Control.

Michelle has volunteered with Ronald McDonald House Charities (RMHC) for more than five years.

Tell us a little about your role within the organization.

I am the Manager of Gas Control in our Gas Supply department. Gas Control regulates the flow of natural gas into the Citizens transmission system to ensure adequate and safe delivery to our customers in Marion County and Westfield. Gas Control also manages the flow of natural gas to and from Citizens storage fields in Greene County.

Why is it important to you to volunteer?

It is so fulfilling to be able to give my time and energy into helping others. My family and I have been through some difficult times and have always felt the love and support from others. By volunteering, I am able to give to others and share that same gift of love and support. The opportunity to help a family feel heard, feel supported, and to ease their mind or pain in any way is very important to me.

What sparked your interest in volunteering for Ronald McDonald House?

My family and I received an outpouring of support during my son’s treatment for lymphoma. I wanted to pay that forward by helping other families in similar situations. The families at Ronald McDonald House, who come from all over the Midwest, leave their support systems at home to receive the best care possible at Riley Hospital for Children and other area hospitals. The volunteers and employees at RMHC become their support system by providing an environment where they can focus solely on their child.

What has been your most rewarding experience volunteering for Ronald McDonald House?

The most rewarding experience for me is knowing that at the end of a long day with their child at the hospital, our guests can return to RMHC for a hot meal and a place to unwind and rest without having to worry about the cost of a hotel. We’re there to assist in any way that we can to make their stay as comfortable and easy as possible.

You’ve volunteered for Citizens-sponsored events. What has been your favorite?

My clear favorite is the annual Sharing the Dream event. So much planning and hard work goes into that event each year and it’s amazing to see the transformation. It makes me proud to be a part of Citizens as I see so many employees working hard to give back to our community. I enjoy getting to know other employees that I don’t interact with during the regular workday.

About Ronald McDonald House Charities of Central Indiana

Ronald McDonald House Charities of Central Indiana (RMHCCIN) provides a home away from home for families of children receiving medical care at Riley Children's Health and other area hospitals. Their goal is to provide essentials for families so they can focus on their child during their difficult time.

Depending on schedule and availability, individuals may volunteer for roles including Guest Services at the Ronald McDonald House, Family Rooms inside Riley Children’s Health, and Culinary Crew for the First Floor Family Room lunch program.

Arielle Hirt, Volunteer Manager, shared her thoughts about Michelle. “Michelle is incredibly loved and admired at RMHCCIN. She was recently nominated for the Lori Kleiman award—a prestigious annual volunteer award in recognition of volunteers who go above and beyond. She is kind, compassionate, driven, and proactive in her role as a volunteer at RMHCCIN.”

435 Limestone St. Indianapolis, IN 46202 www.rmhccin.org

Arielle Hirt, Volunteer Manager ahirt@rmhccin.org 317-267-0605 x225

Ronald McDonald House Charities of Central Indiana

Third-Annual Yvonne Perkins Legacy Fund Golf Outing Raises $60,000

More than 190 golfers on 48 teams gathered once again at the Eagle Creek Golf Club on September 12 to honor the late Yvonne Perkins. Yvonne’s daughter, Kim Black, attended the event this year in her mother’s memory. Tracey Black, Engineer II Underground Engineering & Construction, shared her thanks for the hardworking volunteers who make this event possible.

“Abby Robbins, IT Business Relationship Consultant I, coordinates the volunteers and does a wonderful job. The golf outing would not go on without the volunteers setting aside their valuable time to help. I am still blown away by how many people attend this event every year. It is always such a fun day, and we are doing something good for the community. You can’t get much better than that.”

The Yvonne Perkins Legacy Fund Golf Outing, which raised $63,000, was attended by numerous Citizens employees and representatives of Citizens partner companies. At the event, Jeffrey Harrison, President & CEO, and John Trypus, Director Underground Engineering and Construction, thanked participants for their support over the past several years. TSW Utility Solutions, Inc. once again served as title sponsor.

The Yvonne Perkins Legacy Fund board has awarded two grants and eight scholarships in the past year, for a total of $69,000 committed to organizations and students who are continuing education and building a stronger community.

The Yvonne Perkins Legacy Fund Board

J.P. Ghio Board President and Citizens Energy Group Vice President of Energy Operations

Mark Jacob Citizens Energy Group Vice President Capital Programs & Engineering

Olivia Hawbaker VanDuyn Citizens Energy Group Manager Engineering

Jennifer Bailey Citizens Energy Group Director of Treasury

Ann McIver Citizens Energy Group Director Environmental Stewardship

Rachel Doba DB Engineering

Ben Reed B.E. Reed, LLC

Amy Smitley Arcadis

Yvonne Perkins, who passed away in 2016, was a servant leader; a distinguished alumna of Indianapolis Public Schools and Butler University; a longtime Citizens Energy Group executive; and a tireless advocate for improving the quality of life in Indianapolis. As a tribute to her memory, the fund continues impactful workforce development initiatives, enhancing access to meaningful educational and career opportunities while specifically reducing disparities for members of the Black community and other diverse groups including veterans and members of reentry programs.

“In all, we have raised over $1 million since 2005 through these outings; money that goes to the heart of helping those in our community. However, in 2022, we chose to move in a different direction, providing financial support to more areas and people in need of assistance in our communities. Accordingly, we chose to honor Yvonne Perkins,” said Mark Jacob, Vice President, Capital Programs & Engineering and Quality Systems. “Yvonne was such an impactful person in our community, and this helps, in some small way, to keep her legacy going. We cannot fully address underemployment, but the Yvonne Perkins Legacy Fund offers opportunities to members of our community to reach their full potential. We envision a day where we hope to establish an endowment for the fund and begin to expand the ‘touches’ we provide to our community members.”

Lead Service Line Replacement Program

Showcased in Martindale Brightwood

On September 25, Citizens joined leaders from the Indiana Department of Environmental Management, the City of Indianapolis, and the Martindale Brightwood neighborhood to showcase the impact of construction crews replacing customerowned lead service lines. Citizens recently began construction in a segment of the Martindale Brightwood neighborhood, the largest area thus far within the program Citizens is implementing.

“Martindale Brightwood is one of many neighborhoods that will soon see construction crews proactively replacing lead service lines block by block,” said Mark Jacob, Vice President Capital Programs & Engineering. “It goes without saying that full replacement of our customers’ lead service lines is the surest way to help our neighbors reduce their exposure to lead.”

While water in the utility’s distribution system does not contain lead, Citizens is implementing a program, first approved in 2022, to replace all customer-owned water service lines made of lead that connect homes and buildings to public water mains. To date, the program’s replacements have largely been completed in coordination with other utility maintenance projects or when utility line relocations were required by roadway improvement projects. Martindale Brightwood is Citizens’ largest proactive focus area thus far in which crews are mobilized for the sole purpose of replacing lead service lines.

In 2023, Citizens updated the Customer Satisfaction pillar of STIP (Short-Term Incentive Plan) to include Lead Service Line Replacements. By the end of the third quarter, the Outstanding threshold of 700 replacements had already been surpassed with 990 replacements.

“We are encouraged to see the steps being taken in this neighborhood – and many others in the future – to mitigate lead exposure in our communities,” said Brian Rockensuess, Commissioner of the Indiana Department of Environmental Management (IDEM). “IDEM continues to be a strong supporter of programs that get the lead out, and we encourage education at the community level explaining how Hoosiers can limit lead exposure in soil, dust, air, or water.”

Many homes built in Indianapolis before 1950 – including a majority of those in the Martindale Brightwood area – still include service lines made of lead, a common building material used through the middle of the 20th century.

“Martindale Brightwood is a neighborhood with a long history, and the age of many of our homes means that neighbors are likely to own a lead service line,” said Elizabeth Gore, Chair of the Martindale Brightwood Environmental Justice Collaborative. “But we have deep roots here, and our neighborhood will continue to organize ourselves in support of programs like this one that are critical for the community’s health.”

Citizens estimates that more than 75,000 customers may own or rent a home with a service line made of either lead or a galvanized metal requiring replacement. The program Citizens is implementing has been estimated to cost more than $500 million, though we have received $21 million to date in outside financing for the program; to accelerate the pace of replacements, Citizens will continue to apply for funding from foundations, endowments, and government programs that align with the project’s community health goals of limiting lead exposure.

Proactive focus areas are prioritized based on several factors, including the number of known or suspected lead service lines in an area, neighborhood economic impacts, and inter-agency coordination ahead of other planned infrastructure work in the area, which helps lessen construction impacts and overall project costs.

EMPOWER Team Takes Part in Habitat for Humanity Build

On September 4, Diversity and Inclusion’s EMPOWER team along with Citizens contractor partners (TSW Utility Solutions, Inc., American Structurepoint, VETS, and Christopher B. Burke Engineering) participated in a volunteer event with Habitat for Humanity, a nonprofit organization that helps families make homeownership a possibility with building a home from the foundation up with the support of volunteers. The team came together to help with a busy day of installing kitchen cabinets, pantry and closet shelving, windowsills, baseboards, and trim for two newly constructed homes in Indy’s North Perry Neighborhood.

The EMPOWER team is Empowering and Motivating Professionals with Opportunities for Workplace Excellence and Relationships. It's a peer-led opportunity for peer engagement, to strengthen and find connections and opportunities to grow in networking, professional development, and service together. The team’s mission is to promote development, engagement, and retention across Citizens by providing opportunities for employees to network with peers and foster a culture of inclusion, collaboration, and growth.

Fall Fishing Tournament Winners

Congratulations to the winners of Citizens Energy Group’s annual fall fishing tournament, held September 28 at Lake Lemon in Unionville, Indiana. Money collected from entry fees and donations from employees, totaling $1,000 across the spring and fall tournaments, will be donated to Riley Hospital for Children.

• First Place: Brad Hostetler, Construction Specialist VI and Ron Sanders, Wastewater Field Operations Supervisor – Six fish totaling 10.265 pounds

• Second Place: Tony Kivett and Lee Thomas – Four fish totaling 6.140 pounds

• Third Place: Chris Barron, Production O&M Manager and Cody Barron – Three fish totaling 5.405 pounds

• Big Bass Winner: Brad Hostetler – 2.895 pounds

• Big Bass Second Place: Cody Barron – 2.315 pounds

Front row from left to right: Mike Picklesimer, Technical Specialist IV, Kaitlyn Currie (American Structurepoint),

Courtney Trickle, Senior Accountant – Property Records, Brittany Meunier, Engineer III Gas, Doran Watt (VETS) Back Row from Left to Right: Erica Duncan, Supervisor Technical Lead Lab Services, Rich Newell, Construction Specialist VI, Dennis Doyle, Fleet and Facilities Services Supervisor, Louis Caito (Christopher B. Burke Engineering), David Mohler (American Structurepoint), Paul Johnson, Engineer IV, Justin Burnett, Project Manager.

Brad Hostetler and Ron Sanders

Lee Thomas and Tony Kivett

Cody Barron and Chris Barron

Quality Corner

CLASS FY24 STIP Metric Update

Employees are empowered to improve our processes to deliver measurable benefits impacting customer satisfaction, cost containment, safety, and day-to-day engagement of employees. This can be accomplished using Citizens Lean and Six Sigma (CLASS) tools for improvement projects. For STIP, completed belt projects count as two points and Just Do It Projects count as one point. At the end of September, the Trust-wide total of project points was 108. Our STIP levels for fiscal year 2024 were 80 project points for Threshold, 90 project points for Target, and 100 project points for Outstanding, which means we surpassed Outstanding! Do you have an idea for an improvement project? Utilize the Project Pipeline on the Quality iTrust page or reach out to any member of the Quality team.

CLASS Project Benefits

The organization is realizing significant benefits from CLASS projects in FY24 with 3,903 hours reduced and $2,052,392 in financial benefits. Financial benefits are realized in three ways:

• Redirected savings are measured savings that are not taken directly from the operating budget. These dollars are redirected to cover other costs.

• Direct savings are measured savings that are removed from the operating budget.

• Increased revenues are measured increases in revenue (typically billing).

CLASS Belt Certifications

YELLOW BELT

Gas Pressure Gauge Calibration

• Project Leader: Scott Herbertz (Gas Transmission & Distribution)

• Team Members: Jim Bennett, John Eddington, Casey O’Gara

• Scott’s project implemented a process to ensure 100% of all pressure gauges are calibrated and documented appropriately for compliance with state and federal pipeline safety regulations as required by new state requirements (170 IAC 5-32.2). Prior to this project, gauges would stay in use until they either broke or the employee noted an accuracy issue and requested a replacement.

• Benefits: By purchasing non-adjustable gauges annually, Citizens will ensure compliance with the new state regulations and mitigate the liability cost associated with non-calibration through potential fines and lawsuits. Cost estimates for the prevention of liability in just one event is estimated to be in excess of $50,000 as evidenced by fines incurred to other utility operations for similar evidence of violations or failure to comply.

ADVANCED YELLOW BELT

CMOM Route Development

• Project Leader: Kevin Hackett (Wastewater Collections)

• Team Member: Ron Sanders, Bill Adams, Joe Nagy, DJ Bunton

• Kevin’s project developed a process for efficiently creating routes for the Capacity, Management, Operations, and Maintenance (CMOM) Plan, which guides the bulk of Wastewater Collections required activities in the sanitary sewer collections system. Monthly inspections were being conducted in an inconsistent manner, which would result in missed and duplicated inspections each month and would take a significant amount of time (16 working days) to complete.

• Benefits: Reporting now can be made on individual routes and allows for data on the duration of the activities to be collected. After the launch, from May through July, workdays per month were decreased from 16 days to five days (69% reduction) and duplicate and missed activities eliminated.

Time & Materials Billing

• Project Leader: Nick Polley (Gas Transmission & Distribution)

• Team Members: Emelyne Lane, Cassie Miller

• Nick’s project reviewed the process around Time & Material (T&M) requests when a customer wanted their gas line and/or meter moved to accommodate a change on their property. The previous process billed customers around 7.5% of the total cost for T&M jobs, which resulted in inadequate cost recovery for labor, loading, permits, and other resources.

• A T&M estimator tool was developed within an Excel spreadsheet. This estimating tool utilitizes past-year labor, equipment, and loading costs to determine a true hourly project cost.

• Benefits: Currently for FY2024, total costs for T&M jobs are $111,853 with a billed amount of $85,642. Actual billed for 2024 to date is 77%.

Nick Polley

Water Bonded Plumbers

• Project Leader: Jared New (Water Distribution)

• Team Members: Mike Elliott, Madison England, Nate Schiller

• Jared’s project developed an interview process for plumbers performing work on Citizens water assets to ensure that they are aware of the water standards for service line installations and preparing for water taps. Prior to this process, plumbers completing work often were not prepared due to a lack of understanding of Citizens water standards, which would create rework and return trips.

• Benefits: There were a total of 55 return trips for the nine months prior to implementation (February 2023-November 2023). Since the process was implemented in November 2023, there have been 40 return trips in the next nine months (November 2023-July 2024).

RECENTLY COMPLETED JUST DO IT (JDI) PROJECTS

Just Do It projects are a great way to continuously improve something where the solution is already known. This doesn't mean it necessarily has to be a quick or simple project, it just doesn't go through the DMAIC process. But Just Do It projects can make a big impact in efficiency and savings. All completed Just Do It projects can be found on Quality’s CI Activities and Completed Projects page.

• Leak Survey App – Bob Edwards (Water Distribution)

• Daily Demand Projections – Michelle Bennington (Gas Supply)

• WIMS Operational Report Optimization – Ed Bukovac (Westfield)

• Arc Flash Breaker Alarm – Ed Bukovac (Westfield)

• Jaggaer Optimization – Kris Lang (Supply Chain)

• BAI Mapping – Jason Howard (Accounting)

• Training Lab – Cody Gibbs (Shared Field Services)

• Reduce B2B Estimates – Gary Young (Shared Field Services)

New Employees

In Memoriam

We are saddened to report the recent passing of a Citizens employee. Joe Snyder on September 27, 2024. Joe worked as a Field Service Representative in Westfield and was a valuable member

Estrella Catalan Torreblanca Corporate Support Services

Trenton Inglert Water Cameron Patterson Corporate Support Services

Qadira Carbajal Corporate Support Services

Astajha McGill Corporate Support Services

Jael Mendez Corporate Support Services

Amanda Miller Corporate Support Services

Brian Hedge Gas

Daniel Byers Steam Jeana Cox Corporate Support Services

Liveonah Duncan Corporate Support Services Marcellus Edwards Corporate Support Services

Katelin Ferrell Corporate Support Services

Shalanda Griffin Corporate Support Services

Connor Troxell Corporate Support Services