CREA LOSS CONTROL CONF JULY 16, 2008

1. CREA LOSS CONTROL CONFJULY 16, 2008 WE’VE COME A LONG WAY OR HAVE WE Eldon Humphers, CLCP-CUSA Senior Safety & Loss Prevention Consultant FEDERATED RURAL ELECTRIC INSURANCE EXCHANGE

2. We’ve Come A Long Way • EARLY DAYS • ONE-HALF OF THE LINE WORKERS DIED IN THE EARLY DAYS OF TRANSMISSION AND DISTRIBUTION LINEWORK.

3. We’ve Come A Long Way • EARLY DAYS • JOB TRAINING AND SAFETY WAS NON-EXSISTENT.

6. We’ve Come A Long Way • Early Days • Worker’s Compensation Insurance Premiums were extremely expensive for electric utilities.

7. We’ve Come a Long Way • TODAY’S INJURIES • THEY ARE STILL EXPENSIVE TODAY.

8. We’ve Come A Long Way • Pie Chart - 1.jpg

9. We’ve Come a Long Way • FROM FEDERATED’S RECORDS 1/1/1998 through 12/31/2007

10. Cause of Injury Federated – Companywide Losses Claims % of Losses % of Total Total Electrical Current164 0.76%21,740,217 13.46% Fall, Slip or Trip, NOC 1,966 9.15% 17,384,451 10.78% Lifting (strain or injury) 1,670 7.77% 16,536,285 10.26% From different level (fall or slip) 626 2.91% 12,495,089 7.75% Pushing or pulling (strain or injury) 1,140 5.31% 9,684,240 6.01% Twisting (strain or injury) 1,140 5.31% 8,232,809 5.11% Falling or Flying Object (Struck) 943 4.39% 7,858,266 4.87% Repetitive Motion (strain or injury) 573 2.67% 6,220,967 3.86% Strain or Injury By, NOC 731 3.40% 6,168,940 3.83% All Other 12,535 58.33% 54,899,577 34.05% Totals 21,288 161,220,842

11. We’ve Come A Long Way Extent of Injury Federated Company Wide Losses # of Claim % of Total Losses % of Total Strain 8, 573 39.90% 75, 494, 680 46.83% Fracture 858 3.99% 21, 200, 857 13.15% Burn 359 1.67% 13, 098, 936 8.12% Multiple Physical Injuries 203 0.94% 6, 569, 587 4.07% Contusion 2, 284 10.63% 5, 750, 345 3.57% Sprain 1, 010 4.70% 5, 725, 140 3.55% Amputation 12 0.06% 5, 687, 109 3.53% Electric Shock 82 0.38% 5, 570, 555 3.46% Lacerations, Cuts 2,673 12,44% 3. 868, 030 2.40% All Other 5,434 25.29% 18, 255, 603 11.32% Totals 21, 488 161, 220, 842

12. We’ve Come A Long Way Point of Injury Federated Companywide Losses # of Losses % of Total Losses % 0f Total Trunk & Lower Back (Lumbar) 2, 694 12.54% 29, 516, 522 18.31% Multiple Body Parts 1,304 6.07% 22, 275, 491 13.82% Shoulder (s) 1,405 6.54% 17, 634, 687 10.94% Lower Extremity (knees) 1,779 8.28% 15, 130, 586 9.39% Body System and Multiple Body 287 1.34% 7, 680, 177 4.76% Upper Extremity (hands) 1,285 5.98% 5, 177, 179 3.21% Lower Extremity (lower leg) 896 4.17% 5, 054, 519 3.14% Neck, Vertebrae 26 0.12% 4, 599, 772 2.85% Lumbar, Sacral Vertabrae 396 1.84% 4, 171, 816 2.59% All Other 11,416 53.13% 49, 980, 095 31.00% TOTALS 21,488 161, 220, 892 .

13. We’ve Come A Long Way • EMPLOYEE CONTACTS • 1998 through 2007 ------164 LAST THREE YEARS • 2005 ----------- 13 • 2006 ----------- 18 • 2007 ------------ 14 • 2008 ----------- 2 (First Quarter Only)

14. We’ve Come A Long Way www.federatedrural.coop Member Services Web-Site Password Required Browse site as specific system Select Loss History Select From Various Menus Follow Commands Run Desired History

15. We’ve Come A Long Way • EARLY DAYS • THE FIRST JOB-TRAINING and SAFETY PROGRAM WAS ORGANIZED IN THE STATE OF WISCONSIN TO HELP REDUCE WORKER’S COMPENSATION COST

16. We’ve Come A Long Way • EARLY DAYS • TRAINING WAS DIRECTED TOWARD THE TASKS THAT A LINEMAN PERFORMS. • IT STILL IS TODAY • HOWEVER

17. We’ve Come A Long Way • 1970’s • WILLIAMS-STEIGER ACT • OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION (OSHA)

18. We’ve Come A Long Way • 1970s - 1990s • OSHA • EPA • DOT

19. We’ve Come A Long Way • OSHA • 1910 • 1926

20. We’ve Come A Long Way • RULE CHANGES • RECENT AND PROPOSED CHANGES IN THESE THREE AGENCIES HAVE AFFECTED THE LINEWORKER. • NEW REVISIONS OR CHANGES WILL AFFECT THEM EVEN MORE.

21. We’ve Come A Long Way • CHANGES • OSHA • PPE STANDARD • FR CLOTHING

22. We’ve Come A Long Way • OSHA has plans to re-work 1910.269. • MAD distances have been wrong since day one. • Host liability • Changes to clothing standards.

23. We’ve Come A Long Way • TREE TRIMMING. • OSHA may address rulemaking on tree trimming later in the year. • It may or may not affect utilities.

24. We’ve Come A Long Way • FMCHSA CHANGES: • LOSS OF CDL • HOURS OF SERVICE • BACKGROUND CHECKS • ENTRY LEVEL TRAINING • LOAD SECURITY

25. We’ve Come A Long Way • Most Dangerous Occupation. • In the early days electrical line work was high on the list. • In mid 1980’s electrical line work was removed from the list.

26. We’ve Come A Long Way • Emphasis on safety increased in 1970’s • Federal OSHA Rules • State’s adopt OSHA

27. We’ve Come A Long Way • ERGONOMIC CHANGES • Aerial Devices • Improved PPE

28. We’ve Come A Long Way • ELECTRICAL POWERLINE INSTALLERS AND REPAIRERS ARE BACK ON THE LIST OF TEN MOST DANGEROUS JOBS IN THE LAND. • THEY ARE CURRENTLY LISTED AT # 8.

29. Most dangerous jobs by fatality rates Rank Occupation Death rate per 100,ooo Total deaths 1 Tower Erectors/Climbers 183.6 18 2 Fishers and Fishing Workers 141.7 51 3 Aircraft Pilots 87.8 101 4 Logging Workers 82.3 64 5 Structural Iron and Steel Workers 61.0 36 6 Refuse and Recyclable Material Collectors 41.8 38 7. Farmers and Ranchers 37.1 291 8. Electrical Powerline Installers/Repairers 34.9 38 9. Roofers 33.9 81 10. Driver/Sales Workers and Truck Drivers 27.1 940 Bureau of Labor Statistics

30. We’ve Come A Long Way WHY ARE LINEWORKERS BACK ON THIS LIST?

31. We’ve Come A Long Way WHAT ARE WE GOING TO DO TO GET OFF OF THE LIST?

32. We’ve Come A Long Way MOST DANGEROUS OCCUPATIONS Our predecessors slowed the injury rate as well as The rate of fatalities. It is time that we did the same thing.

35. We’ve Come A Long Way • ARE WE PROPERLY TRAINING OUR WORKERS TODAY. • APPRENTICESHIP TRAINING • OJT • JT&S

36. We’ve Come A Long Way • WHAT TYPE TRAINING ARE WE PROVIDING • JOB RELATED • REGULATORY TRAINING

37. We’ve Come A Long Way • CAFETERIA PLAN • DO YOU USE A CAFETERIA PLAN • WHAT TRAINING DOES IT OFFER • WHAT TRAINING DO COOPERATIVES CHOOSE

38. BACK TO THE BASICS WE HAVE TO GET BACK TO ENSURING THAT BASIC SAFETY RULES ARE BEING TAUGHT AND ADHERED TOO BY OUR EMPLOYEES.

39. BACK TO THE BASICS • VISIBLE OPENING • TEST FOR VOLTAGE • GROUND • COVER-UP • ISOLATE • PERSONAL PROTECTIVE EQUIPMENT • TAIL-GATE DISCUSSIONS

40. We’ve Come A Long Way • TRAINING • WE MUST PROVIDE TRAINING TO LINEWORKERS RELATED TO THOSE TASKS THAT THEY PERFORM AND PRACTICE ON THE JOB.

41. We’ve Come A Long Way • LINEWORKER TRAINING • GROUNDING • COVER-UP • HOT-LINE WORK • UNDERGROUND INSTALLATION • TROUBLE SHOOTING • RUBBER GLOVES AND SLEEVES • SUPERVISION • OBSERVER

42. ACCIDENT STUDY • ELECTRICAL CONTACTS • RUBBER GLOVES WOULD HAVE PREVENTED 98%OF THE • ELECTRICAL INJURIES and • FATALITIES

43. We’ ve Come A Long Way

44. ACCIDENT STUDY • ELECTRICAL CONTACTS • THE USE OF SLEEVES WOULD HAVE PREVENTED THE REMAINING TWO PERCENT OF CONTACT INJURIES OR FATALITIES.

45. We’ve Come A Long Way

46. We’ve Come A Long Way • WE HAVE TO MAKE EMPLOYEES AWARE OF THE IMPORTANCE OF WEARING THEIR PERSONAL PROTECTIVE EQUIPMENT. • THEY MUST BE AWARE THAT IT WILL SAVE THEIR LIFE IF PROPERLY USED.

47. Personal Protective Equipment • WILL • SAVE • A • LIFE

48. We’ve Come A Long Way • NO

49. We’ve Come A Long Way • FIVE REQUIREMENTS: • SAFETY RULE • STANDARD OPERATING PROCEDURES • TRAINING • SUPERVISION • ENFORCEMENT

50. EFFECTIVE SAFETY PROGRAM • IMPORTANT ELEMENTS • TRAINING • RESPONSIBILITY • ACCOUNTABILITY