Conway Corp Annual Report | 2017

2017 ANNUAL REPORT

TABLE OF CONTENTS Introduction .................................................... 1 Progress ...........................................................2 Economic Impact .......................................... 8 Community ................................................... 12 Safety ............................................................ 20 Reliability ..................................................... 24 Passing the Torch ........................................ 28

2017 ANNUAL REPORT

CONWAY IS POWERED BY US. IF YOU LIVE HERE, YOU ALREADY KNOW THAT.

Electricity

Water

Cable

Internet

Telephone

Security

It’s all part of keeping things running smoothly in homes, schools, businesses and more throughout our community. We love the work – and we do it well. But you already knew that, too.

The thing that many people don’t know, however, is what powers Conway Corp – what keeps us running smoothly. And that would be our people. We could not possibly look back on the past year without shining a spotlight on the ones who make it all happen. They are thinkers and doers.

Educated and experienced. Caring and courageous.

Without them, we could do nothing. With them? There’s nothing we can’t accomplish.

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ROY GRUBB Manager, Network Operations Instrumental to the one-gig launch that changed the digital landscape in Conway.

2017 ANNUAL REPORT

BRIGHT FUTURES DON’T JUST HAPPEN. SEE PEOPLE AND PLANNING COME TOGETHER.

PROGRESS

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Conway is one of the fastest-growing cities in Arkansas. But it’s not enough for us to grow with the community – we have to grow ahead of it. Fortunately, our team is up to the task.

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PROGRESS

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“New technology and communication capabilities are essential to maintaining the service our customers expect. We will use this platform to optimize our infrastructure and resource planning while providing even more improvements in the future.”

- BRET CARROLL

Chief Executive Officer

CITYWIDE UPGRADES Conway Corp’s meter upgrade project generated attention. With our high-tech electric and water meters, streetlight controls and hybridfiber-coax network, Conway was pegged the “smartest city in the world” by MW Consulting in 2017.

Our new meters transmit and receive data automatically and securely, utilizing a twoway mesh radio network, enhanced electric meters, water meter communication modules, streetlight controllers and a meter data management system. This eliminates the need for manual meter reads and enables new programs for outage notification and alerts.

With these upgrades, Conway Corp can provide improved efficiency during peak energy usage periods, which helps keep the cost of electricity lower. In addition, electric readings are more accurate and outages can be addressed faster.

Electric meter deployment was more than 60 percent completed in 2017 and will be complete in early 2018, with water meter deployment to follow.

“For several years, we have been on a strategic path toward gigabit service. With this initiative, Conway Corp is embracing its position as an internet technology leader.”

- JASON HANSEN

Chief Technology Officer

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PROGRESS

GREATER SPEED, MORE OPPORTUNITY Conway Corp is always working to grow business and residential services to meet demand. We added one-gigabit internet for residential customers in December 2016, enabling download speeds that were once only possible with a direct fiber connection. The onegig package provides equivalent speeds up to 1,000 Mbps down and 50 Mbps up. In 2017, the residential gig package grew 249 percent.

2017 ANNUAL REPORT

Conway Corp has been an innovative leader in broadband offerings for more than 20 years. In 1995, we began construction on a citywide cable conversion to a fiber-coax hybrid, a project cost that was estimated at $5.6 million. Upon completion in 1997, we became the third company in the country and fifth in the world to offer highspeed, broadband cable internet service.

For businesses, Conway Corp’s fiber offering provides a more efficient, more reliable and faster connection. This service is connected to our own fiber-optic IP backbone that operates over multiple redundant connections to ensure the highest network reliability.

“Conway businesses count on us to help them work faster and more efficiently. Speed and reliability are always top priorities, and we’re excited to be a part of that.”

- ELEISE WOOD MYERS

Commercial Sales Account Executive

Conway Corp is proud to meet this growing need for residential and business customers alike.

ARNOLD INNOVATION CENTER Conway Corp Board of Directors 2017 Chair Johnny Adams announced plans for the Arnold Innovation Center at the 2017 Conway Area Chamber of Commerce annual meeting. The center is named in honor of retired Conway Corp CEO Richard Arnold, and will be a destination for entrepreneurs to connect with one another while having access to necessary resources to create, launch and grow businesses.

Richard began working at Conway Corp in 1978 in the data processing department and was named the company’s fifth CEO in 1998. He retired from that position on June 1, 2017.

“Richie’s leadership positioned Conway as a creative hub for entrepreneurs. The Arnold Innovation Center will feature the latest in technology and provide a venue for developers, students and the wider community to engage directly with Conway Corp’s latest infrastructure upgrades, business tools and the fastest digital data technology available.”

- JOHNNY ADAMS

2017 Board of Directors Chair

PRESTON GLOVER Senior Journeyman Meterman

PROGRESS

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CUSTOMER CARE CENTER Our Customer Care Center opened in February 2017, adding a whole new level of convenience. Customers can pay their bill, talk to account managers, add services and more in the new building, plus enjoy easy access with a twolane drive-thru and after-hours payment drop box.

Conway Corp leadership began working with Rik Sowell Architects in 2014 to develop a long-range plan to address growth and expansion needs. As the anchor of our downtown location, this 30,000-square-foot building represents the first phase of that plan.

The Customer Care Center is three stories tall and overlooks an outdoor plaza. Customer care space is on the first floor, while the second floor houses the marketing department, billing services, training facility and room for future expansion. The third floor is utilized for executive staff offices. The Customer Care Center was built by Nabholz Construction with design elements from Georg Andersen Interior Design and Eric Rob & Isaac. Custom art pieces created by local artists Steve Griffith, Sheila Parsons and Nina Ruth Baker are displayed throughout the building, along with historic photographs of Conway Corp’s 88-year history.

The original Conway Corp building is now home to accounting, local programming, ad sales, energy smart and power supply staff.

ENGINEERING LICENSURE MARK FERGUSON

Water Systems Engineer 2

Mark earned his professional engineering license this year when he passed the Principals and Practice of Engineering exam. The exam is designed for engineers who have gained a minimum of four years of post-college work experience in their chosen engineering discipline. Mark has been a part of our team for five years.

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PROGRESS

BROADBAND SPECIALIST CODY ROWLETT

Business Class Service Specialist, Cable

Cody completed his broadband distribution specialist (BDS) training. The BDS certification demonstrates proficiency in subject matter related to the radio-frequency distribution of signals. Cody has been a part of our team for five years.

2017 ANNUAL REPORT

LEADERSHIP CHANGES Real power comes from within. Conway Corp has always benefitted from outstanding guidance and direction, and these recent changes continue our tradition of positive, effective leadership. As always, we set the bar high. The positions below require commitment. Experience. Integrity. And this team delivers.

BRET CARROLL

Chief Executive Officer

On June 1, 2017, Bret became the sixth person to lead Conway Corp in the company’s 88-year history. Prior to this appointment, he served as chief financial officer. Bret holds a BBA in accounting and an MBA in finance from the University of Central Arkansas and is a certified public accountant. He is recognized by the American Public Power Association as a certified public power manager. He serves on the board of directors for the Mid-America Cable Television Association, the Conway Development Corporation and is the VP of Finance for the Arkansas Municipal Power Association.

LEE TEDFORD

Water Systems Manager

As water systems manager, Lee is responsible for overseeing the operations of our water and wastewater systems, including the water and wastewater plants and Brewer Lake, Conway’s water source. Lee was hired in August 2010 and was a water systems engineer before being named assistant manager of water systems in December 2016 and now manager in April 2017.

GREG DELL

Chief Operating Officer

In September 2017, Greg was named chief operating officer.

As COO, he directs, administers and coordinates operations to support objectives established by the CEO and board of directors. He is responsible for the overall direction, coordination and evaluation of our operations. Greg began his Conway Corp career in January 1985. He worked in several engineering and design departments before being named assistant manager of engineering and planning in January 2005. He held that position until May 2005 when he was named manager.

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TRACY MOORE

Chief Financial Officer

In July 2017, Tracy was named chief financial officer. As CFO, he directs Conway Corp’s financial planning and accounting practices, as well as our external financial relationships. Tracy began his career with us in July 1987 as manager of data processing.

He held that position for nine years before being promoted to manager of accounting services and had been manager of accounting compliance and risk management since February 2012.

BRETT MCDANIEL

Engineering and Planning Manager

Brett is responsible for directing and coordinating the operation of our engineering and planning department, including forecasting, system planning, system design and engineering analysis as it supports the community and Conway Corp. He was hired as a water systems engineer in 2005 and was promoted to water systems senior engineer in 2008, the role he held until his promotion to manager in October 2017.

PROGRESS

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CHRIS BOUDREAUX GIS Coordinator Planning for growth and change means having a team that is mapping and tracking our systems.

2017 ANNUAL REPORT

THEY FLIP THE SWITCH TO OUR LOCAL ECONOMY. AND IT’S DEFINITELY ON.

ECONOMIC IMPACT

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The quality and affordability of our service sparks growth in Conway. Attracting high-paying jobs.

Making valuable connections. And building a better life for us all.

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ECONOMIC

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“Jacob Longing Construction has been committed to building homes that have met or exceeded Conway Corp’s Energy Smart criteria. More than 748 Energy Smart homes have been built since the program began in 2009 with an estimated accumulative energy savings to the homeowners of more than $853,000.”

- DAVID AVRA

Conway Corp Major Accounts and Energy Efficiency Manager

250 CONWAY CORP

employees

ENERGY SMART BUILDER AWARD Conway Corp named Jacob Longing Construction the 2017 Energy Smart Builder of the Year for their dedication to building energy-efficient homes in the Conway community.

Energy Smart homes use less energy than standard-built homes and help save homeowners money and energy for years to come.

Conway Corp has recognized 23 homes built by Jacob Longing Construction as being Energy Smart in 2017. They currently have seven more Energy Smart homes under construction.

Energy Smart specifications are based on the United States Department of Energy recommendations. Energy Smart homes can save 20 to 30 percent energy use over a standard built home thanks to a variety of energy-efficient features including insulation, highperformance windows, tight ducts and efficient heating and cooling equipment.

37% 56%

$853,000+ Energy Savings ESTIMATED ACCUMULATIVE

TO ENERGY SMART HOMEOWNERS

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ECONOMIC

AVERAGE ANNUAL RESIDENTIAL

Electric Customer SAVINGS

IN CONWAY VS. OUTSIDE CONWAY AVERAGE ANNUAL RESIDENTIAL

Water Customer SAVINGS

IN CONWAY VS. OUTSIDE CONWAY

748+ ENERGY SMART

Homes

BUILT SINCE 2009

“Today the Conway Corporation provides water, water and waste-water treatment, electric, telephone, cable television, broadband internet and security monitoring services – supported by

universally-acclaimed customer service, high-caliber planning and engineering and construction that meets ‘well accredited and defined standards.’

All of this is done at the lowest cost for any community in the state of Arkansas.”

– HEALTHY CONWAY REPORT

Smart New Homes

112 BUILT 2017 Energy Audits 192 IN

PERFORMED

31,175 TOTAL METRIC TONS OF CO2 SAVED BY ENERGY SMART PROGRAMS, 2009-2016

CONWAYCORP.COM

IN

2017

$87,940 VALUE OF

Energy Smart LOANS TO CONWAY CORP CUSTOMERS IN 2017

$4,942,134.73 Total Customer Savings

FROM ENERGY SMART PROGRAMS, 2009-2017

ECONOMIC

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ELEISE WOOD MYERS Commercial Sales Account Executive From large to small, we partner with Conway businesses to provide the technology they need to serve our community.

2017 ANNUAL REPORT

PROUD TO SUPPORT LIGHTBULB MOMENTS. IN THE CLASSROOM AND BEYOND.

COMMUNITY

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Our people are plugged in, particularly with education. You’ll find us sponsoring events, speaking with students, making a difference and having fun.

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COMMUNITY

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UCA SCIENCE CENTER Conway Corp pledged $3 million to the University of Central Arkansas for the construction of a new science center in 2016. The 50,000-square-foot addition to the Lewis Science Center – called the Conway Corporation Center for Sciences – is LEED certified and houses teaching, research and laboratory space to accommodate current and future students. The center opened for classes in January 2017.

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COMMUNITY

2017 ANNUAL REPORT

HENDRIX CREATIVE QUAD Conway Corp committed $1.5 million to Hendrix College for the construction of the Miller Creative Quad. The Creative Quad will be a mixed-used development combining first-class facilities for the creative arts with new student living space and featuring the Windgate Museum of Art.

CUSTOMER SERVICE CERTIFICATION JAYLENE SEXTON

Customer Service Manager

Customer Service Manager Jaylene Sexton earned her customer service management certification from the American Public Power Association. To earn the certification, she completed five required courses, passed an online exam and submitted a customer service assessment and plan focused on sustaining Conway Corp’s culture of outstanding customer service. She was recognized at the APPA National Conference in 2017. Jaylene has been a part of our team for 14 years.

“Conway Corp has always been focused on meeting customers’ needs. This certification demonstrates Jaylene’s leadership, knowledge and skill in this area. We are proud to have her leadership in our customer service department.”

– BRET CARROLL

Chief Executive Officer

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CUSTOMER SERVICE AWARDS Conway Corp honored Lead Serviceman Wayne Evans and SCADA and Network Systems Administrator Zach Leach with the company’s annual award for outstanding customer service. Wayne and Zach each received the Customer Service Award presented by CEO Bret Carroll. They were nominated by their fellow coworkers for going above and beyond their job duties.

WAYNE EVANS

Lead Serviceman

The nomination for Wayne stated that even though he has the difficult job of disconnecting electricity for delinquent accounts, “he does his best to ensure the information is accurate. He will call Conway Corp cashiers on behalf of the customers he has interaction with so they have the balance needed to retain services or even research payments. His kind heart is shown in all his interactions with customers and coworkers.”

ZACH LEACH

Network Systems Administrator

Zach was nominated for “building the relationship between operations and technology to ensure his internal customers are getting what they need. He also makes himself available as needed and goes the extra mile.”

“PLUGGED IN” Conway Corp launched “Plugged In,” a web video series featuring the many ways we plug into and connect with our community. Topics include everything from community events to energy efficiency to the proper way to dispose of kitchen grease (not down the drain!).

“Plugged In” was recognized by the Mid-America Cable Association with a community programming award.

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COMMUNITY

2017 ANNUAL REPORT

CHANNEL 5 Conway Corp expanded audience interaction in 2017 with the 5 Sports YouTube channel. Viewers tuned in for Wampus Cats football and basketball games, as well as our “Lineman of the Week” feature.

For the first time, there was real-time interactivity with the ability to share tweets from viewers in the live broadcast. We also used Facebook Live for pre-game updates. Here are just a few of the results: • Away games were a big hit, with CHS football at Springdale, Bentonville, North Little Rock and Fort Smith each garnering more than 1,000 YouTube views.

• The CHS football game at Bentonville West on November 16 scored an incredible 2,231 YouTube views.

• CHS basketball drew 2,395 YouTube views over the course of the season.

• Our 12-week “Lineman of the Week” feature surpassed 1,000 YouTube and Facebook views – sometimes much more – nearly every week.

“We are proud to bring Conway Corp customers local community programming and are excited about the ways we were able to increase connection with our viewers in 2017.”

- JEFF MATTHEWS

Public Relations Coordinator & Voice of the Wampus Cats

SCHOLARSHIPS & SUPPORT Conway Corp provides world-class digital technology to our local schools and universities along with scholarships, grants, educational outreach and more. Since 2010, Conway Corp has given more than $4,000 in scholarships to the Single Parent Scholarship Fund of Faulkner County and has given more than $600,000 in endowed scholarships to local students who attend the University of Central Arkansas, Central Baptist College and Hendrix since 2008.

Conway Corp provides additional scholarships every year including 5 Sports scholarships awards to local student athletes for their performance on the field and in the classroom.

COMMUNITY | 17

“Our crew arrived in Orlando on Friday night ahead of the storm. They reported to the command center Saturday morning and rode out the storm in Orlando.”

HURRICANE RELIEF

The team from Conway Corp joined 36 lineworkers from the Missouri cities of Columbia, Hannibal, Independence, Macon, Nixa, Poplar Bluff and Trenton in Birmingham, Alabama before traveling on to Orlando.

- JIM MOORE

Conway Corp Electric Distribution System Manager

“We have been a part of mutual aid assistance through the Arkansas Municipal Power Association on numerous occasions. This is the first time we have traveled out of state as part of a mutual aid response. We are extremely proud of the work our crews do and that we are able to assist fellow public power providers.”

Conway Corp deployed a crew in September 2017 to Orlando, Florida to assist with power restoration in the wake of Hurricane Irma. Our five-person crew was part of a mutual aid response coordinated by the Missouri Public Utility Alliance (MPUA).

Preparedness coordinators for the Florida Municipal Electric Association issued a call to the MPUA for mutual aid assistance on Wednesday, September 6. MPUA contacted Conway Corp to join with their response.

The mutual aid response, coordinated through MPUA’s mutual aid network, allows public power electric utility workers to help during widespread outages in other communities. Assisting cities are reimbursed by municipal utilities receiving assistance. Nationally, mutual aid agreements organized through the American Public Power Association link more than 2,000 public power and rural electric cooperatives, so they can assist each other in times of need.

- BRET CARROLL

Chief Executive Officer

From left to right: Apprentice Lineman Lance Heer; Groundman Trey Brown; Senior Lineman Scott Ussery; Groundman Kolt Weatherley; Journeyman Lineman Travis Lauer

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COMMUNITY

HIGHLIGHTS the Toad Suck Daze Power Zone, Conway Corp is involved From participating in educational events to sponsoring

in the best of our community. Here are just a few highlights from the last year:

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DEREK COTHREN Facilities Maintenance Coordinator Looks out for the safety of our crews while they take care of customers.

2017 ANNUAL REPORT

WORKPLACE SAFETY IS EVERYONE’S JOB. ESPECIALLY HIS. AND HE TAKES IT SERIOUSLY.

SAFETY

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When it comes to taking care of customers and team members, we never let down our defenses.

Safety first!

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SAFETY

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“Passing this important exam is an accomplishment. Daniel and Reece have shown a clear understanding of the treatment process and will help Conway Corp continue to deliver safe and reliable drinking water.”

WATER TREATMENT After a year of service on our team, Daniel Lawrence and Reece Martin passed the Arkansas water operator exam, earning their operator licenses from the Arkansas Department of Health. Any water operator that performs water treatment duties in the state must hold a valid, active operator license. Daniel and Reece had to conduct 100 training hours in addition to passing the exam.

- LEE TEDFORD

Water Systems Manager

DANIEL LAWRENCE

Water Plant Operator

REECE MARTIN

Water Plant Operator

ENERGI RISK MANAGEMENT AWARD We received Energi’s 2017 Excellence in Risk Management Award for being a leader in the implementation of Energi safety and risk management programs.

Energi, a leading provider of insurance and risk management programs to the energy industry, recognized Conway Corp as being the “Best of the Best” within the energy industry at the Risk Management Summit in Las Vegas, Nevada.

Conway Corp’s focused commitment to safety, implementation of risk management best practices and willingness to learn and apply new safety techniques have enabled us to set a future standard of excellence among industry peers.

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SAFETY

2017 ANNUAL REPORT

SAFETY LEADERSHIP AWARD JIM MOORE

Electric Distribution System Manager

Electric Distribution System Manager Jim Moore received the 2017 Conway Corp Safety Leadership award. The award is given annually by Conway Corp to an employee who has shown exemplary service in the area of safety.

Jim was nominated by the entire electric department who said, as the department manager, “he has created an atmosphere and built a strong team of educated linemen that were able to earn the RP3 designation from the American Public Power Association for two consecutive cycles. He strives to not only be a leader, but a safe one.” JIm joined Conway Corp in 1986 and has been the department manager since April 2013.

ANNUAL SAFETY TRAINING POLE TOP AND BUCKET RESCUE Electric, Cable TV

CPR AND AED All departments

CONFINED SPACE AND RESCUE Water/Wastewater

EMERGENCY RESPONSE All departments

TRENCHING COMPETENT PERSON Water/Wastewater, Electric

SCBA REFRESHER Water/Wastewater

HAZMAT REFRESHER Water/Wastewater, Materials & Fleet Operations

FALL PROTECTION All departments

LOCK-OUT, TAG-OUT, GROUNDING,

HEAVY LIFTING, SLING, CABLE, CHAIN AND

AND ARC-FLAS Electric

BINDER INSPECTION All departments

SAFETY

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LANCE HEER Apprentice Lineman Traveled with five-person crew to Florida to assist with power restoration following Hurricane Irma.

2017 ANNUAL REPORT

REMEMBER THAT BIG POWER OUTAGE? PROBABLY NOT. BECAUSE YOUR POWER STAYS ON.

RELIABILITY

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As your trusted utilities provider, our goal is to deliver service so reliable you never have to think about it. Here’s to the hardworking men and women on the ground – and in the bucket.

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RELIABILITY

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LINEMEN PROMOTIONS “They logged more than 7,200 hours of on-the-job training and are now certified journeymen linemen. Their commitment to the intensive program helps give us the ability to provide a high level of dependable electric service.”

- JIM MOORE

Electric Distribution System Manager

Conway Corp electric department currently has 33 employees, including 19 linemen. In 2017, three of those linemen completed their four-year apprentice program to become journeymen linemen. Nathan Ball, Jake Ballard and Travis Lauer were promoted to journeymen linemen in March.

Reaching this rank requires classroom, correspondence and hands-on training with monthly and annual exams. Employees are required to attend hands-on immersion skills training workshops, including a weeklong session for pole climbing, pole top rescue and bucket truck operation at the National Utility Industry Training Fund facilities in Kansas City.

NATHAN BALL

Journeyman Lineman

JAKE BALLARD

Journeyman Lineman

TRAVIS LAUER

Journeyman Lineman

RP3 RECOGNITION We earned the Reliable Public Power Provider designation from the American Public Power Association for providing customers with the highest degree of reliable and safe electric service. This is the second consecutive three-year cycle where Conway Corp has earned this designation.

The RP3 designation recognizes public power utilities that demonstrate proficiency in four key disciplines: reliability, safety, workforce development and system improvement. Conway Corp is the first and only electric company in Arkansas, and one of only 220 of the nation’s more than 2,000 public power utilities, to earn this prestigious distinction.

FUN FACT There were 491 outages in 2017.

Most were caused by storms, but 145 (roughly 30%) were caused by squirrels.

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RELIABILITY

2017 ANNUAL REPORT

2017 RELIABILITY STATISTICS AVERAGE LENGTH of POWER OUTAGES

52.3

CONWAY CORP

minutes CUSTOMER

NATIONAL 161 minutes AVERAGE

*

AVERAGE NUMBER of POWER OUTAGES

.68 CUSTOMER .85 AVERAGE NATIONAL

CONWAY CORP

*

TELECOMM SERVICE STATISTICS BROADBAND RELIABILITY CONWAY CORP

97.12

percent CUSTOMER

TELEPHONE RELIABILITY CONWAY CORP

98.58

percent CUSTOMER

*American Public Power eReliability Tracker

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RELIABILITY

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PASSING THE TORCH 2017 RETIREMENTS

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Conway Corp is powered by people – past, present and future. It is our privilege to recognize these leaders and the positive impact they have had on our success. Thank you for sharing your vision, your passion and your commitment to progress. Those qualities shine on.

RICHARD ARNOLD

DAVID BRADLEY

TOMMY SHACKELFORD

JIM ISOM

Chief Executive Officer | 39 Years

Chief Operating Officer | 39 Years

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PASSING THE TORCH

Water Systems Manager | 39 Years

Water Systems Designer | 41 Years

Conway Corp is dedicated to exceeding our customers’ expectations in producing and delivering safe, affordable, reliable, innovative and environmentallysound utility and telecommunication services while enhancing the quality of life in our community.

(501) 450-6000 | ConwayCorp.com