Laclede Gas to double in size with Missouri Gas Energy
Transcription
Laclede Gas to double in size with Missouri Gas Energy
Spring 2013 Laclede NEWS Laclede News is published quarterly for the employees and retirees of The Laclede Group. Transformative Acquisition Positions Laclede for Exciting Growth Opportunities Laclede Gas to double in size with Missouri Gas Energy purchase Over the course of the past year, we talked a lot about our future and how we plan to grow. While the building blocks were in place, we needed to make a few adjustments along the way to be in the best position to execute a growth strategy. And we did it. All of our collective hard work culminated in the December announcement that The Laclede Group had agreed to acquire Missouri Gas Energy (MGE) and New England Gas Company (NEG) from Southern Union Company, an affiliate of Energy Transfer Equity, L.P. and Energy Transfer Partners, L.P., for $1.035 billion. Once we complete the transactions, which we expect to occur before the end of the third quarter of calendar year 2013, we will be a much larger company that will be able to support growth initiatives in new markets, with new pipelines and new customers. Our growth in Missouri is exciting because our company will serve the state’s two largest metropolitan areas and effectively double our size by increasing our utility customer base from approximately 630,000 to nearly 1.14 million. By all accounts, this is a transformative acquisition for our company. Then, in February, we announced the sale of NEG to Algonquin Power & Utilities Corp., subject to approval from the Massachusetts Department of Public Utilities. This transaction is a smart business decision for our company and will not impact our progress on the acquisition of MGE. In addition to growing our customer base, we expect the transactions to immediately add to cash flow and add to earnings per share beginning in the second full year following the closing date. Given the nature of the assets we’re acquiring, the transactions will increase the amount of earnings we generate from our stable regulated utility operations, and will also support the dividend. When you put all these things together, it is clear that we have the right recipe for continued growth and success. Sale of New England Gas Company While we’d made plans for “ welcoming New England Gas Company into the Laclede family, Algonquin presented an offer to purchase New England Gas. This transaction will provide value to both our shareholders and NEG’s customers, without affecting the rest of the acquisition. ” —Suzanne Sitherwood President and Chief Executive Officer The Laclede Group, Inc. 4.5 While we are getting bigger, we will not deviate from our commitment to excellence. We will work harder than ever before to live up to our reputation as a trusted and reliable gas utility and to quickly earn the trust of our new customers in Missouri. Laclede Gas Company and MGE both have a history of providing safe and reliable service to customers, a shared focus on maintaining a safe work environment, and a reputation for employing the most highly trained employees in the industry. By leveraging Laclede’s organizational strengths and business processes, we are confident we can enable future growth and higher-quality operations to benefit all stakeholders; with our top priority being a focus on safety and reliability for customers and our employees. Every day our customers rely on natural gas for a home cooked meal, warm shower and dry clothes. We look forward to welcoming the customers IL Kansas City St. Louis KS Jefferson City MO OK AR of MGE to Laclede and providing the best in class service that Laclede customers have come to expect. I want to extend my thanks to our leadership team in connection with these exciting announcements. Not only did our team dedicate hundreds of hours of hard work to make these transactions a reality, but they also helped us communicate the initial announcement to employees. Thanks to the leadership team’s efforts, we engaged with our employees face-to-face by 9 a.m. on the day of the announcement. While we did not have all the answers that day, we continue to provide updates as we work toward closing. Since joining Laclede a year ago, I have had the pleasure of meeting most of you face-to-face. I am gratified by your passion for Laclede and your commitment to serving our customers day in and day out. We are one team and together we continue to uphold our strong legacy and chart a course for an even stronger tomorrow. Thank you again for your continued hard work and dedication. n Suzanne Sitherwood LOCAL DISTRIBUTION COMPANY DISTRIBUTION CUSTOMERS (in millions) 3.2 Features 1.8 2 Laclede Gas Rate Case 3 Spire 1.14 GAS ATO SWX LG (pro forma) 1.07 WGL 1.0 PNY Natural Gas Fueling Solutions 4 2012: 0.7 0.6 0.5 NWN LG MGE 0.5 0.4 NJR SJI With the acquisition of MGE, Laclede Gas Company will have a combined total of 1.14 million customers, moving us to the number four position in our peer group. A Year in Review 6 newBLUE Updates 7 Main Replacement Initiative 8 Laclede Snapshots 10 High Marks to Laclede Customer Service 11 DollarHelp: The Power of One 13 Tribute to Lee Liberman Laclede Gas Seeks Approval for Rate Case Safe and reliable natural gas remains a cost effective energy source For the first time in three years, Laclede Gas Company filed a general rate case with the Missouri Public Service Commission (MoPSC). “This general rate case is to recover the significant investments Laclede has made in the maintenance and operation costs for the 16,000 miles of natural gas pipelines and delivery services that supply natural gas to Laclede customers,” said Steve Lindsey, president of Laclede Gas Company. “This request is about more than pipelines, it’s about the people,” Lindsey continued. “Laclede employees work hard every day to provide safe and reliable natural gas to customers across our service area. Approximately $8 million of this request is to invest in our employees through wages, high-quality comprehensive benefits and pension payments. Compared to previous years, many of these costs have been capitalized rather than expensed as a result of our main replacement program.” This filing will impact the 40 percent of a typical residential bill that today covers the delivery and service costs to operate, maintain and upgrade natural gas pipelines across the Laclede Gas service area. Due to historically low natural gas prices, this past November, Laclede filed to decrease the remaining 60 percent of a residential bill that covers the cost of natural gas. Due to these savings, on an inflation-adjusted basis, customers will be paying less for natural gas service than they paid almost a decade ago. Natural gas remains one of the most cost effective energy sources available today. Customers were not impacted by this general rate case this winter. The MoPSC will continue to conduct a review of the filing that may take up to 11 months. If approved in its entirety, an average residential customer would see an increase of $4.93 per month. The proposed new rates would provide net additional revenues of $48.4 million, exclusive of revenues Laclede Gas is already collecting through the Infrastructure System Replacement Surcharge (ISRS). “Laclede Gas has spent $160 million on new capital projects since our last rate case. These funds have been provided by our investors. In the current rate case, we propose to recover $24 million annually to repay these investments.” —Mike Pendergast, Vice President of External Affairs, The Laclede Group— Q: How does ISRS impact the rate case amount? We are currently collecting $10 million annually in ISRS charges. In our rate case filing, the ISRS amount is included in the new rates and the ISRS is reset to $0. So while we are asking for a $58.4 million rate increase, the proposed new rates would provide net additional $24 million—Capital Investments Capital investments include the cost (both materials and labor) for the safety-related system replacement projects, such as the main replacement initiative, the costs of governmentally mandated relocation work, and the newBLUE project. $9 million—Warm Winter Cost New in this filing, Laclede proposes to use last year’s temperatures to determine the next year’s rates. This will help Laclede be more accurate in customer rates due to weather variations. If the temperatures are colder than those experienced last year, we will return the funds to customers in the form of bill credits or customerrelated program offerings. $8 million—Payroll, Benefits and Pension Laclede Gas offers energy efficiency and assistance programs for all customers with a special focus on elderly, disabled and low-income customers. This rate case filing will continue those efforts to help neighbors in need. n > For more information about the general rate case, contact Mike Pendergast, vice president of External Affairs, The Laclede Group, at 314-342-0532 or [email protected]. Rate cases always help to recover our investment in employees, including payroll, benefits and pension obligations. Unlike previous rate cases, a large portion of this category was capitalized in the main replacement program, which is recoverable through ISRS. $2 million—Credit Card Service Customers have been asking to pay their bill by credit card without a fee. This amount would cover the credit card service fees. January Game On Meeting Q&A Q: How often can you file for a general rate increase? There is no limit on filing rate cases. Since 2006, we have filed two cases in six years, a pace of once every three years. WHAT GOES INTO THE RATE CASE REQUEST? $15 million—Other revenues of $48.4 million, exclusive of revenues Laclede Gas is already collecting through ISRS. Q: Will we recover the full $58.4 million in this rate case? It is up to the Missouri Public Service Commission to set our new rates. Historically, we do not usually receive the entire proposed amount. Laclede educates consumers about energy efficiency programs, rebates and savings each year. This category encompasses those costs and other miscellaneous costs of doing business, such as general inflationary increases. Q: If Missouri Gas Energy is a division of Laclede Gas Company, will they keep their own rates and tariffs? Yes. Industry News Bites 1 In his State of the Union address, President Obama highlighted that the natural gas boom has led to cleaner power and greater energy independence. To encourage this he said the administration will keep cutting red tape and speeding up new oil and gas permits. 2 2 In a bid to cut fuel costs, New York City will retrofit one of the vessels in its Staten Island Ferry fleet to run on liquefied natural gas. The city’s transportation department estimates that a switch to natural gas from diesel fuel may be able to cut the ferry’s fuel bill in half, while also slashing carbon dioxide emissions by a quarter. 3 Connecticut Governor Dannel Malloy is encouraging residents to make the switch from home heating oil to natural gas with his energy proposal. Currently only one-third of Connecticut homes are heated with natural gas. Malloy proposes to make gas available to as many as 300,000 Connecticut homes and businesses by asking state regulators to allow utilities to collect customer payments— extended over longer periods of time—to finance conversions to natural gas. uses compressed natural gas to fuel their busses and has their own fueling station. 4 A group representing petroleum retailers and wholesalers is suing a school district in western Wyoming and the state transportation department over the district’s recent foray into selling compressed natural gas as vehicle fuel, claiming it’s competing with private business. The school district 5 The National Transportation and Safety Board recently released their “Most Wanted List” of 10 areas of importance. Enhancing pipeline safety made the list to encourage improved oversight, timely shut off responses and adequate emergency response in the event of a leak. Laclede Joins with Siemens to Introduce Spire Natural Gas Fueling Solutions First fueling station to open in St. Louis later this year One of the cleanest energy sources, natural gas is gaining traction as the country’s fuel of choice. New technologies are constantly being developed to take advantage of this abundant domestic supply of natural gas. To harness the power of these emerging technologies, Laclede has teamed with the Building Technologies Division of Siemens Industry, Inc. to launch Spire natural gas fueling solutions. Cost savings are driving the switch from gasoline and diesel. Natural gas as a transportation fuel is significantly less expensive on average than equivalent gallons of gasoline or diesel. A typical transit agency can see a 30 percent reduction in fuel costs with compressed natural gas compared to diesel. That equals $12,000 savings per year per bus. “Spire will show companies and communities new ways to save money, protect our environment and create American jobs,” said Mike Spotanski, senior vice president and chief integration and innovation officer of The Laclede Group. As fleet managers shift from gasoline and diesel to natural gas vehicles, Laclede and Siemens are leading the way with Spire which meets the full-spectrum needs of fleet managers including: station design, build and operation as well as financing, ongoing maintenance, facility improvements, safety, billing, technical consultation, and strategic planning. “Natural gas will play a big role in our transportation future. Laclede is an expert in natural gas with 150 years in the industry, including more than 30 years of experience working specifically with natural gas vehicles,” said Spotanski. “Add to that Siemens’ experience with industrial technology solutions and together we can make a big difference to companies and communities.” Having obtained final approval from LambertSt. Louis International Airport and the city of St. Louis, Spire is set to launch in St. Louis later this year with a commercial/public compressed natural gas fueling station just west of the airport. The station will be built on approximately one acre of the Super Park Lot C facility at I-70 and Cypress Road. Open 24 hours a day, the station will initially fuel 160 fleet vehicles already on the road with capacity to accommodate a growing local and regional need. Initially, this station will fuel fleets like Park Express. This St. Louis station will be the first for Spire. The Spire team, with Siemens, stands ready to offer natural gas fueling solutions in locations across the country. Check out the Spire launch video shown at this year’s annual meeting by searching “Spire Natural Gas Fueling Solutions—YouTube.” n With an abundant, low-cost natural gas supply, we are now positioned to transform one of the world’s most important industries. Transportation. Only a fraction of vehicles and fueling stations in America use natural gas. But that’s changing…driven by simple economics. Natural gas is far more affordable than diesel or gasoline. All while reducing the impact on our planet and our health from greenhouse gas emissions. The only thing holding back the forces of change? Infrastructure. That’s why The Laclede Group is excited to announce the launch of Spire Natural Gas Fueling Solutions, in collaboration with Siemens. > For more information on Spire natural gas fueling solutions, contact Tom Schultz, manager of NGV Business Development, at 314-342-0684 or [email protected] A freightliner fuels up at the Shrewsbury compressed natural gas fueling station. + Way to Go! SAID’s Jim Mincher responded to a possible leak after receiving a call from a concerned customer. After getting more information from the customer, he performed an outside investigation and detected no gas or odor in the air. As Jim walked around the neighborhood, he noticed a contractor had recently completed some excavation work about four houses up the hill. Jim, who is coming up on his 25th anniversary with Laclede, could smell Mercaptan but couldn’t immediately determine if the contractor had hit a pipeline or not. “We’re trained to go beyond the immediate area when investigating an odor call and to use our resources,” said Jim. “I located the property and it was pretty clear that a gas line was located where the contractor had been digging. I was pretty sure they had cut it and filled in the hole to cover their tracks.” Jim questioned the contractor that was onsite and all wrongdoing was denied. As Jim was sitting in his van troubleshooting the situation, another member of the contractor’s crew arrived onsite and acknowledged they had cut the service, squeezed it off, taped the loose ends and covered it with dirt. The contractor had not called for any locates before digging. Jim notified the Laclede response teams who came onsite to make the repairs. “The perseverance and professionalism shown by Jim on this job may have prevented a tragedy,” said Foreman Mike Sisak. “And for that, we all owe Jim a big thanks.” n Please send “Way to Go!” submissions to [email protected]. Laclede NEWS 3 2012: A Year in Review The Laclede Group’s performance in fiscal year 2012 was solid, both financially and operationally. We ended fiscal 2012 with a strong balance sheet and we delivered an attractive total return to our shareholders of 16 percent. The dividend was also increased based on 2012 performance, which marked the 10th consecutive annual increase in our dividend. We saw growth in our key business segments—regulated gas distribution and non-regulated gas marketing. We made progress reinvesting in our businesses to upgrade our infrastructure, including replacements of mains in our distribution pipeline network and an upgrade to our technology systems. On page 3, you read about the exciting natural gas fueling solutions initiative the Integration and Innovation Group, led by Mike Spotanski, recently announced. Now let’s dive a little deeper and take a closer look at key accomplishments in 2012 and what we can expect in 2013 for the Distribution Operations Group and Laclede Gas Company, the Chief Financial Officer Group, and the Chief Administrative Officer Group. Chief Operating Officer of Distribution Operations Group Steve Lindsey, executive vice president and chief operating officer of distribution operations, The Laclede Group, and president, Laclede Gas Company The Distribution Operations Group and Laclede Gas Company had a strong year in 2012. We continued to focus on the safety of our system and employees. The safety of our employees, customers and the general public is our top value and is non-negotiable. In 2012, we made improvements in employee and system safety metrics and we continued our status as an industry leader in pipeline damage prevention. We continued to accelerate our strategic main replacement program and replaced over 40 miles in fiscal year 2012, more than a 125 percent increase over fiscal year 2011. We plan to significantly accelerate replacements in fiscal year 2013. This will continue to improve safety and system reliability, as well as lower future maintenance costs on our system. This program has resulted in over 100 new jobs since 2011 and we anticipate adding over 50 new jobs in 2013. There were strong financial results in spite of having one of the warmest winters on record, which resulted in lower than expected revenues. We compensated by managing expenses well and shifting resources to accelerate the strategic main replacement initiative. There was also improved productivity from field operations, customer care as well as the support areas. With the implementation of Customer Care and Billing (CC&B) and Enterprise Asset Management (EAM) in 2013, we will continue to leverage technology to allow our employees to be much more efficient and effective. One of our top areas of focus is to provide worldclass customer service. In 2012, we built on our great history and improved customer satisfaction survey scores. The Customer Care team had improvements in the average time to answer customer calls, the number of bills to be estimated, and we continued to expand our outreach into the community to help those struggling to pay their bills. With the rollout of CC&B in 2013, we expect to give our Customer Care team much more robust tools to better serve our customers’ needs. The Sales and Marketing department continued to find new ways to help our customers use natural gas in an efficient and cost-effective way, including the new Home Energy Advisor online tool. We continued to be on the forefront in supporting new ways to use natural gas, including working with Veteran’s Memorial Hospital on a new combined heating and power system and accelerated the conversion of our own fleet to using compressed natural gas. The most important asset we can invest in is our employees. In 2012, we agreed on a two-year contract with Locals 6 and 194 that included a new incentive plan for all employees. We also hired 164 new employees to build a solid foundation for our future. We are now in the process of reorganizing the Distribution Operations Group to prepare us for growth. We’ve focused on building a functionally-aligned, scalable organization that can accommodate and support acquisitions. A shared services model will be implemented to ensure efficiency and promote standardization across the company. We also focused on employee development which includes quality training, career path development and succession planning. As we’ve seen throughout our industry, many employees are nearing their opportunity for a well-earned retirement. It’s our responsibility to facilitate the transfer of the institutional knowledge from our upcoming retirees to our next generation of employees. In conclusion, 2012 was a great year and has set the stage for an exciting 2013. We will continue to focus on the safe and reliable operation of our system, improve our customer service and enhance the development of our employees. All of these are critical as we continue to grow our company both organically and through acquisitions. n Cast iron replacement project in the city of St. Louis. 4 First-ever, all-employee event at Busch Stadium. Chief Administrative Officer Group Mary Kullman, senior vice president and chief administrative officer and corporate secretary, The Laclede Group The Chief Administrative Officer Group, which includes Governance and Standards, Corporate Communications, Internal Audit, Facilities, Enterprise Risk Management and Charitable Foundation, worked hard in 2012. One of the first steps in creating an organizational structure that enables us to be agile to support future growth was restructuring the senior leadership team and creating a Leadership Council, comprised of Suzanne and her direct reports, to review and provide guidance on transformational, strategic initiatives across the company. Monthly business review meetings to update executive officers and other key leaders on company initiatives were also established. We have also made significant progress on standardizing Laclede Group policies and procedures that we can apply to future business units, including a new e-mail retention policy and employee handbook. Part of this standardization also included developing a process for approving future policies and procedures as we identify gaps. The Corporate Communications group was reorganized to support future growth while strengthening internal and external communications. We successfully launched Game On all-employee meetings to create a culture of face-to-face communication that inspires an open, collaborative and positive dialogue with employees. Employee communication vehicles were consolidated to five key channels: Game On meetings, CEO and senior leadership communications, The Portal, Laclede TV and Laclede Takepoints. In addition to reinstating Laclede News, the quarterly employee newsletter, we also hosted our first-ever, all-employee event at Busch Stadium with over 750 employees in attendance—exceeding expectations for the first such event. Partnering with the newBLUE team, the Internal Audit group was integral in developing controls to ensure segregation of duties for financial reporting, which is critically important to us as a public reporting company. Thanks to all who have been involved in this process. A big project underway in 2012 was taking inventory of current work spaces and starting to identify future work space needs to support our growth and new organization structure. Facilities worked with partners to establish new standards for work spaces, which include fewer offices and more work stations and collaborative areas that promote interaction and teamwork among employees. Look for more to come on the longterm facilities strategy in 2013. Finally, we reassessed our corporate giving strategy to focus on core areas of giving: United Way, Community Enrichment, Sustainability and Key Partnerships. We also expanded the company matching gift program to include other institutions. New work space on the 15th floor at 720 Olive. Fiscal year 2013 is shaping up to be an exciting year as we will soon kick off a corporate rebranding effort, which we refer to as “Rebranding for Growth,” as well as execute the new brand identity for our re-entry into the compressed natural gas vehicle fueling market. We will continue to evaluate our policies and procedures, including record retention policies with a heightened focus on electronic storage as we move toward smaller work stations and use our newBLUE technology. Finally, look for a change to the Game On meetings as we transition to business unit meetings that include both high-level company topics as well as information specific to the functional areas and teams. n Chief Financial Officer Group Mark Waltermire, executive vice president and chief financial officer, The Laclede Group It was a very busy and productive year for the Chief Financial Officer (CFO) Group, which includes Corporate Development and Strategic Planning, Finance and Accounting, Information Technology Services, Laclede Energy Resources and Supply Chain. One of the bigger projects we had underway was the leadership of newBLUE. On October 1, we deployed the finance and supply chain work streams, which included iProcurement, iExpense and Oracle Time and Labor (OTL). Additionally, we launched new general ledger and financial reporting modules. Most recently, the third work stream, Enterprise Asset Management (EAM) Phase 3.1, went live. Kudos to everyone who worked on these projects. I commend your leadership and commitment. newBLUE is foundational in supporting our growth objectives and I look forward to the remaining work streams going live later this year. Another big accomplishment in 2012 was the reorganization of the CFO Group. The entire group underwent this process in order to better support the achievement of the company’s strategic objectives. This was also necessary to fully take advantage of the newBLUE technology that rolled out on October 1. For the employees and teams that went through this process, I truly appreciate the level of engagement and professionalism you exhibited during this uncertain time. In the midst of newBLUE, we centralized the Supply Chain function at 720 Olive and consolidated three storerooms down to one at our Shrewsbury location. Our supply chain team accomplished a lot in a short period of time. We look forward to seeing the benefits of both these initiatives as we continue to expand our newBLUE technology. This past year, we hired our first-ever director of investor relations, Scott Dudley Jr. We are very excited to have him on board as we begin to reach out to the investment community and engage them by telling our story. These efforts were kicked off with our first earnings conference call and webcast on November 19 to release our year-end results. The Laclede Energy Resources team did an excellent job managing the non-regulated gas marketing segment, performing better than anticipated. They renegotiated many of their key agreements for supply and transport and found ways to manage the buying and selling of gas that will lower the cost of goods sold. to support the company’s growth initiatives that was accomplished in 2012. Finance and Supply Chain will continue to improve business processes of current systems while working toward the deployment of Customer Care and Billing (CC&B) in July. Supply Chain will also continue to look for ways to lower the cost of acquisition of materials and supplies to ensure we are meeting our customers’ needs. Laclede Energy Resources is executing a new business strategy and will be expanding business within the producer services and gas-fired electric generation marketplace. n Corporate Development and Strategic Planning worked closely with the Integration and Innovation Group to develop business models for growth initiatives such as Spire. They were also at the forefront in leading the identification, valuation and negotiation process for potential acquisition opportunities which led to the purchase of Missouri Gas Energy and New England Gas Company. Finally, the Finance team was able to lock in lower rates to give us a lower capital cost of operations as we go forward by selling Laclede Group debt securities that settled in December 2012 and Laclede Gas debt securities that will settle in March 2013. newBLUE Enterprise Asset Management (EAM) team. Looking forward, 2013 is off to an exciting start as we start to fully utilize the benefits of newBLUE and realize the benefits of the foundational work Laclede NEWS 5 the report will be cancelled if these codes are Updates not entered. If that happens, the expense report needs to be re-entered. Supervisors should also be looking for this information before approving any expense report. Supply Chain Updates Recent Implementation and Future Launches Enterprise Asset Management (EAM) phase 3.1 (C&M-related activities) launched in February 2013 with the IBM Maximo asset database. EAM phase 3.2 (C&M Leak and SAID G4) is scheduled to launch in July 2013. That same month, the highly anticipated Customer Care & Billing (CC&B) goes live. iExpense Updates Project and Task codes are required for an expense report to be considered complete. The iExpense application allows you to create an expense report without Project and Task codes; however, Staples orders are delivered to the “Deliver To” address selected in iProcurement. All individuals at 720 Olive and Forest Park should search addresses and select by their floor number. For example, a search of 11% will result in the location “11th Floor 720 Olive.” 720 Olive and Forest Park are the only two locations with new floor locator addresses. Existing addresses should be used for the remaining locations. Out of Office Scheduler Out of Office Scheduler should be utilized by Non-Union employees as a tool for planning time away from the office for dates in the future. Oracle Time & Labor (OTL) serves as the system of record for actual time away from the office. Employees must still record actual time away in OTL even if it was approved through Out of Office Scheduler. n To return an item to Staples: process the return on the “Receiving” tab in iProcurement. Contact Staples customer service at 877-294-5499 or [email protected]. Staples will need the order number, the item being returned, the quantity and the reason for the return (defective, received wrong product, ordered wrong item, etc.). Attach a copy of the packing slip to the package and the Staples driver will be at your location in 3-5 days to pick it up. Buzz Laclede Laclede employees were asked... How does newBLUE impact your job? In my role as Office Supervisor, I had been responsible for keeping track and reporting hours worked, vacation time, sick time, etc. for numerous employees. This has been a fairly time consuming, manual process. With our new Oracle Time and Labor system, this process is much more streamlined and it gives individual employees the role of keeping track and reporting their own time. I feel this gives the employees in my group more of a sense of responsibility and control, which is a move in the right direction for all of us. During my 20 years at Laclede, I have ordered parts and supplies on paper. This seemed simple enough, but there was no way to really keep track of orders and there could be potential issues if you misplaced an order. I know many of us are struggling with the new iProcurement system, but I believe that once we all get more familiar with it and we resolve our issues with connectivity, it will really have a positive impact on how we do our jobs. Quentin Ray, service technician, SAID–North Denise Cherry, office supervisor, Missouri Natural division Even though the newBLUE systems seem difficult now, I feel confident that the change will be positive once we are through this transition. newBLUE will allow employees to have more control and be more empowered. Scott Chapman, foreman, Service and Installation Truck (SIT), C&M I have been at Laclede a little over eight years and during that time we have struggled with a disconnect between Customer Relations and C&M. We don’t currently have a working system to track what work has been done and what has not. This causes numerous problems, duplication of efforts and customer frustration. We do the best we can with the system we have, but I am so excited for the new Customer Care & Billing (CC&B) system. From everything I’ve seen and learned, this new system will really change the way we do our jobs every day and will enable us to know when C&M or another department has been to a specific address. This new system will also allow us to have much stronger communication between our customer service representatives and employees out in the field. Deonna Sellers, supervisor, Customer Relations I am new to Laclede, having just started working here in late September. The system we are currently using works; it just requires more time and effort than it should. I am really looking forward to a more fast-paced work environment with the new CC&B system. I know it is really going to help me do my job better and make for happier customers. Jade Graddy, customer service representative, Customer Relations I was hired as a customer service representative last July. I had worked in a customer service role in the financial industry. Learning Laclede’s much older system was challenging. I am truly looking forward to the new CC&B system. It seems so much more simplistic. When we were introduced to OTL in October, I know many were nervous, but it really has been a smooth transition. The process is simple. It allows the employee to have a solid record of their time worked and we have to rely on others less. Kara Bennett, customer service representative, Customer Relations 6 Strategic Main Replacement Initiative: A Win-Win for Everyone Pace of replacements has tripled in two years Laclede Gas Company has provided safe, reliable natural gas service to customers for more than 150 years. Over time, our infrastructure needs to be repaired or replaced just as you would replace the roof on your house or the tires on your car. The goal of the strategic main replacement initiative is to continue improvement of the safety, integrity and reliability of Laclede’s natural gas distribution system by replacing the remaining 785 of the 1,200 miles of aging bare steel and cast iron mains throughout our service area. That’s slightly more than nine percent of our delivery system. Cast iron and bare steel pipes were widely installed throughout the country for distribution of natural gas until the 1950s. Current standards call for pipe made of polyethylene, a high-density plastic, or coated steel, which resists corrosion. While Laclede has been replacing bare steel and cast iron mains for years, the initiative was accelerated two years ago when new construction activity slowed. Laclede construction crews shifted to a heightened focus on replacing the aging infrastructure. Historically, we have replaced six to eight miles of cast iron and bare steel mains annually. When we accelerated those efforts in fiscal 2011, 18 miles were replaced—nearly a 30% increase in one year. The pace hasn’t slowed as crews replaced 41 miles in fiscal 2012 and we are projecting to replace as much or more in fiscal 2013, meaning that the pace of replacements has tripled in two years. The strategic main replacement initiative has been accelerated by more than 125% over the past year. FY2009 12 miles FY2010 14 miles FY2011 18 miles FY2012 41 miles “Replacing the aging infrastructure will ensure the continued and long-term safety and reliability of our natural gas delivery system that customers expect from Laclede,” said Steve Lindsey, president of Laclede Gas Company. “We are on an accelerated path to modernize our system, which offers benefits to both our customers and the company.” Central crew members Chris Niemann (running the mini excavator) and Vince Dilg (locating utilities in the hole) work in the city of St. Louis on a cast iron replacement project. These benefits include: • Safer system with higher operating efficiencies • Greater reliability by moving the system from operating on low pressure to intermediate pressure • Fewer repairs due to a more modern system • Less vulnerability to outages and/or leaks • Reduced long-term operating and maintenance (O&M) costs, which could result in lower customer rates in the future • Better and more customer-friendly accessibility for inspections, emergency shut-off situations and maintenance as a result of moving meter sets from inside the home to outside the home The cost to upgrade our system is partially recovered through the Infrastructure System Replacement Surcharge (ISRS), which is an additional charge on customer’s monthly natural gas bill. The current ISRS amount is $1.23 per month for residential customers. The financial impact on customers is relatively small because Laclede is only recovering a fraction of the overall cost each year for the next several decades. The remainder of the expense (millions of dollars) is financed by investors, which is why it’s critically important we continue to provide value for our shareholders. C&M crews from all districts are working on the main replacement initiative; however, a majority of the work has been in the St. Louis City limits and adjacent neighborhoods. Hundreds of employees from across the company have been working together to accelerate this initiative and reach the milestones we’ve seen the last two years. “This initiative is truly a collaborative effort. It requires a considerable amount of coordination between several functional areas, including C&M, SAID, Meter Shop, Engineering, Right of Way, Training Group and Customer Relations,” said Reitz. The acceleration of the main replacement initiative has resulted in more than 100 new jobs since October 2011. The acceleration of the main replacement initiative has resulted in more than 100 new jobs between the Construction and Maintenance (C&M) and Engineering departments since October 2011, including 15 promotions to foreman. An additional 50 to 60 employees are expected to be hired in fiscal 2013 to continue this initiative and to replace those from the workforce who are planning for well-deserved retirements. C&M crews have replaced more than 400 miles of cast iron and bare steel mains to date. Pictured above: a cast iron pipe (gray) is being replaced with a plastic pipe (yellow). priority for us,” Reitz added. “As more and more of our workforce retires, this initiative provides us the opportunity to get new people in the door to gain experience and expertise and, at the same time, allows us to make tremendous improvements to the overall quality of our distribution system.” “This project provides a great opportunity to transfer knowledge from our veterans with 25 to 30 years of experience to our newer employees,” said Tom Reitz, vice president of Field Operations for Laclede Gas. “This is a top “Cast iron is some of the most complex pipe to replace with no job being the same, and our employees have come through with flying colors,” Reitz continued. “I can’t say enough good things about the employees. The amount of cooperation and the level of effort from everyone involved has been exemplary.” Part of the main replacement initiative involves relocating meter sets that are currently located inside the home to outside of the home for better accessibility. In fiscal 2012, nearly 6,500 meter sets were moved outside—that’s 125 meters per week! Since the start, Laclede crews have replaced more than 400 miles of cast iron and bare steel mains with 785 miles to go. “We are taking a balanced approach to completing the main replacement initiative and will continue to dedicate resources to this project until 100 percent has been replaced,” said Lindsey. n > For more information about the strategic main replacement initiative, please contact Tom Reitz, vice president of Field Operations for Laclede Gas, at 314-658-5477 or [email protected]. Laclede NEWS 7 Laclede snapshots 1 The 18th annual National Gas Rodeo was held in Fairview Heights this past September. Laclede entered three teams in the competition: Gashouse Gang, Laclede Rodeo Clowns and Potential Hazards. Laclede families enjoyed free BBQ, face painting, balloon animals and entertainment from Radio Disney for a fun-filled day at the rodeo. 2 Congratulations to the Gashouse Gang for taking home second place in the National Gas Rodeo! (Pictured from Left to Right) Aaron Hickman, Aaron Witt, Evertt Cox, Jon Loughary and Rob Hayes. 1 2 3 Laclede Rodeo Clowns. (Pictured from Left to Right) Chris Freiberger, Matt Emmendorfer, Jeff Childers, Jason Love, Ken Mertz and Mike Parks. 4 Potential Hazards. (Pictured from Left to Right) James Grofe, Scott Cosma and Carl Monda. 5 Amber Oliver in Human Resources accepted the Missouri Association for Career Services (MACS) 2012 Employer of the Year award on behalf of Laclede Gas Company for our partnership with North Technical High School. (Pictured from Left to Right) Shelly Stewart from MACS, Amber Oliver, and Jeff Chandler from North Technical High School, who nominated Laclede for the award. 3 6 Laclede Gas hosted the ninth annual United We Grill BBQ on September 14, raising $3,646 for the United Way of Greater St. Louis. (Pictured from Left to Right) Suzanne Herberts; Rick Skau; Gary Dollar, president and CEO of the United Way; and Mary Kullman prepare to serve up great food and fun in Kiener Plaza for over 565 Laclede employees and downtown neighbors. 7 Congratulations to the Laclede washer team for taking home the championship title for the third straight year! (Pictured from Left to Right) Amy DeWitte, Matt Voelker, Jim Beishir and Justin Powers. 5 4 8 The Laclede Gas Annual Golf Tournament was held on September 8 at Crystal Springs Quarry Golf Course in Creve Coeur. Congratulations to the A Flight winners. (Pictured from Left to Right) Mitch Voelker, Matt Voelker, Nick Klapp, Gene Voelker and Ron Chac (not pictured). 9 Congratulations to the B Flight winners. (Pictured from Left to Right) Kevin Tolliver, Bill Robinson, Pat Mayfield and Kevin Morrison (not pictured). 6 7 8 8 9 10 Community and Agency Services held its 27th annual Agency Appreciation Luncheon in September to thank all the partner agencies for their hard work. Nearly 400 guests were in attendance. (Pictured from Left to Right) Jennelle James (Urban League), Ron Anderson (keynote speaker) and Julie Trachsel (Laclede Gas Company). 10 11 Urban League of Metropolitan St. Louis is one of several partner agencies Laclede works with each year to provide heating assistance grants to customers in need. (Pictured from Left to Right) Brenda Wrench (Urban League), Jim Buford (Urban League), Rick Skau and Suzanne Sitherwood. 11 12 Suzanne Sitherwood, The Laclede Group Board of Directors and Officers rang The Closing Bell® at the New York Stock Exchange on August 30, 2012 to celebrate Suzanne’s one-year anniversary at Laclede. 13 Congratulations to The Heaters, Laclede’s employee band, for coming in second place at the United Way Battle of the Corporate Bands held October 12 at the Old Rock House in St. Louis. The band raised $2,849 for the United Way of Greater St. Louis. (Jason Fagan not pictured). 14 Jason Fagan, C&M-South, “Bust a Move” at the Battle of the Corporate Bands to raise money for the United Way. 15 Thanks to everyone who came out to cheer on The Heaters. The employee band performed in front of a packed house, which included more than 100 colleagues and friends. (Pictured From Left to Right) Debbie Nelson, Tammy DeClue, Tammy Jones and Kim Steinberg. 16 Congratulations to Laclede’s 2012 YWCA Leader Lunch Honorees. The YWCA Leader Lunch is the region’s premier event honoring women who contribute in business 365 days a year, create a more equitable society, and exhibit future leader potential. Nominations are submitted by fellow employees based upon job performance, leadership, productivity, reliability and volunteerism to name a few. (Pictured from Left to Right) Lisa Chaffee, Missy Lynch, Pam Evans, Mary Thomas, Lynn Rawlings (Laclede host), Susie Kopp, Pat Krieger, Mary Kullman (Laclede host), Michele Danis and Tracey Coleman. 12 17 Twelve Laclede bowling teams competed for the championship title at Tropicana Lanes in Richmond Heights this year. The teams participated in weekly competition from September through December with an awards ceremony on December 18. (Pictured From Left to Right) Team X-Men: Ron Chac, Kurt Biever (Team: Spare Us), Paul Presson, Cyndi Wade, Jon Jenkins and Shea Murray. 13 15 14 16 17 Laclede NEWS 9 Customers Give High Marks to Laclede Gas Customer Service In the home and over the phone, Laclede has a winning strategy Laclede Gas customers say they are highly satisfied with their customer service experience over the last 12 months, according to the latest results from the Laclede Gas Company Customer Study conducted by the RDA Group. Whether calling the Customer Care team or receiving a home visit, Laclede is making a positive impact. Customer satisfaction is at an all-time high with 81 percent of customers highly satisfied with their over-the-phone customer service experience and 86 percent of customers highly satisfied after a service visit to their home or business. “Providing exceptional customer service is our passion,” says Paul Wildeisen, director of Customer Contact. “These [survey] results are a reflection of the hard work and dedication of many teams at Laclede Gas.” Paul and the Customer Care team built performance goals to improve first-call resolution and customer hold time. Customer service representatives (CSRs) are held responsible 4% increase over 12 for their performance during monthly meetings. months Top-performing customer service representatives are recognized each month and their • 82% of customers are highly performance statistics are displayed 7% increase satisfied with their customer for their co-workers to see. over 12 service representative months A survey of customer service representatives • 89% are highly satisfied revealed a desire for continual learning with their service technician opportunities and in-depth training on specific topics, including high bill inquiries, unique payment arrangements and Customer Connection. Paul and his team have created additional classes receives a call from their technician when they are to meet these needs. on the way. “We brought together teams from across “It comes down to an everyday awareness the company, including field and office of customer service,” said Chris Silies, regional staff, to provide a comprehensive director of Field Operations. “We talk customer view of the customer experience. Our monthly meetings provide an opportunity service every day and it is making a difference.” to notice trends and address them The Laclede Gas Company Customer Study early,” says Wildeisen. conducted by the RDA Group surveys customers twice a year about billing and payment process, The Service and Installation Department customer service experience, onsite service (SAID) helps each team member keep experience, community citizenship and customer service top of mind when perceptions of Laclede Gas Company. n visiting a customer’s home or business. Over a year ago, SAID implemented > To learn more about the RDA Survey the “100 percent call ahead” rule. results, contact Terri Fritsche, manager Customers want to know when Laclede of Customer Relations, at 314-342-0868 Gas will be arriving so each customer or [email protected]. STATS AT A GLANCE Members of the Customer Care team. From Left to Right: Brandy Taylor, Dawn Redmon, Brian Erickson, Kara Bennett, Jan Hennicke, Anita Bond, Julia Hines, Pam Robinson, Earlest Johnson and Tom Nestor. Customer Connection Earns Praise from Customers J.D. Power and Associates Study Announces 2012 Findings Customers have ranked Laclede Gas’ Customer Connection tool as one of the best online payment sites, according to a recently released J.D. Power and Associates 2012 Residential Gas Utility Customer Satisfaction Study. Natural gas customers ranked Laclede sixth in the nation for best online payment site. In all, 63,500 residential natural gas customers nationwide participated in the study. “We had customers in mind when we created the Customer Connection tool,” said Carol Yauch, director of Business Support Services. “They can compare current and past usage, schedule payments, learn how to increase their efficiency and keep costs down.” More than 150,000 customers have signed up to use the Customer Connection tool. Features include: • 24/7 account access • Online bill payment options • Account management • Bill history and comparison tool • Payment and usage history • Energy efficiency tips • Budget billing sign up 10 In November, Customer Connection launched its newest feature called Home Energy Advisor. With this feature, customers receive information about home energy use, individualized energyefficiency tips and they can create a customized energy savings plan based on how much time and money they want to invest. This is just another way Laclede Gas offers a top online payment tool for customers. “Customer interactions drive the design of this tool. If we hear customers are looking for something, we strategize to come up with a solution,” said Yauch. “The Home Energy Advisor is a great example of many Laclede teams coming together to help our customers.” n > To learn more about Customer Connection, contact Carol Yauch, director of Business Support Services, at 314-342-0792 or [email protected]. DollarHelp: The Power of One New campaign is threefold: simplify. thank. focus. Have you seen Oliver? Oliver is the face of the new DollarHelp campaign. But he’s not just another sweet face. He represents much more. Families all across our community are struggling to stay warm this winter because they can’t afford to heat their homes. Families with small children like Oliver. DollarHelp is a not-for-profit corporation founded by Laclede Gas in 1982 that provides heating grants to families in St. Louis City and nine counties in Eastern Missouri, including St. Louis, St. Charles, Franklin, Jefferson, Iron, Butler, Madison, Ste. Genevieve and St. Francois. Over the past three decades, DollarHelp has raised more than $20 million thanks to generous donations from neighbors across St. Louis. Last year alone, DollarHelp members joined together to raise over $1 million to keep the heat on for nearly 3,000 families. Laclede Gas, in partnership with United Way of Greater St. Louis, provides the administrative services to DollarHelp so every dollar donated helps those in need. In order to take the program to the next level and increase monthly donations, the “Power of One” campaign was developed. This concept focuses on the idea that a single dollar donation, combined with the donations of your neighbors, makes a real difference to St. Louis families in need. The campaign strategy is threefold: simplify the message by making it easy to donate, thank the donor and focus on attracting more recurring monthly donors. This approach moves us from individual donation to collective action. Through collective action, there’s power in one— one dollar, one team, one simple red box to check. Through a targeted, integrated campaign that includes a new logo, campaign video, redesigned customer bill, bill inserts, refreshed website design, leave-behind materials for C&M and SAID, as well as radio and digital advertising, our goal is to engage customers and activate first-time donations. In the months of November through January, we welcomed 2,215 new DollarHelp members. Currently, only 10 percent of Laclede Gas customers donate to the DollarHelp program. Oliver The power to help is great. The need to help is even greater. With federal cuts and a troubled economy, many more families are struggling to stay warm this winter. DollarHelp is more than just making a donation. It’s about people helping people. So keep a lookout for Oliver. He’s popping up all over St. Louis, reminding Laclede Gas customers to check the red box. Every dollar helps. Together we’ll keep families like Oliver’s warm this winter. Visit dollarhelp.org to view the campaign video. n > To learn more about DollarHelp, contact Julie Trachsel, manager of Community & Agency Services, at 314-342-0669 or [email protected]. Employee Spotlight My Goal Michael Bartlett GIS Coordinator II, GIS & System Planning I hiked 30 miles in one day to raise funds for CureSearch for Children’s Cancer. Along with 11 other St. Louisans, I completed the Ultimate Hike on the Tecumseh Trail in Yellowwood State Forest in Indiana. Each of us pledged to raise $2,500 for a total of $30,000 to help find a cure. CureSearch is a non-profit organization that raises funds for fighting children’s cancer. Locally, they provide funds to three hospitals. My Aspirations “I try to be a good person, help others where I can, and appreciate the good things I have.” —Michael Bartlett I planned on hiking part of the Ozark trail last summer, but I never got around to it. I saw the flyer for the Ultimate Hike and figured it was for a good cause and would force me to start hiking. Afterward, I learned more about the good work CureSearch does and met many children who have cancer, who have survived cancer, and some parents of children who did not survive. Their plight really touched me. I could not imagine how hard it would be hearing the words, “your child has cancer.” My Challenges It was quite a challenge. I started hiking three miles at a time, and week by week I increased the distance to just over 16 miles at a time. Each time, I was sure I had reached my limit, but it always got easier. On the day of the hike, I started at 4 a.m. and finished at 6:30 p.m. I walked 70,700 steps and the equivalent of 363 floors. My Support Honestly, I don’t feel the need to push my body to the extremes like that again. However, I was overwhelmed at the generosity and the support of my family, friends and co-workers. I met a wonderful group of people that I hope will be lifelong friends. I am now a strong supporter of the cause. Next year, I will probably skip the hike, but help others. My Personal Philosophy Please send “Employee Spotlight” submissions to [email protected]. I try to be a good person, help others where I can, and appreciate the good things I have. Laclede NEWS 11 Takepoint (n.) any point along a transmission pipeline where natural gas is regulated, metered and delivered into a distribution system. Delivering the most important information to you. Floating Holiday The floating holiday is now based on a calendar-year period (January 1-December 31) for all Laclede and Non-Union Missouri Natural employees. Previously, Laclede Union employees observed an August 1-July 31 floating holiday schedule. New employees earn a floating holiday once they have been employed for six months. New IRS Mileage Rate The new IRS reimbursement rate of 56.5 cents per mile (up from the previous rate of 55.5 cents per mile) is in effect for all employees as of January 1, 2013. The amount continues to be a fully non-taxable reimbursement. 401(k) Updates Several 401(k) plan items became effective January 1, 2013, including new IRS contribution limits, auto enrollment for new hires and reduction in general purpose loans. Vacation Allowances As of January 1, 2013, the vacation allowance for all Laclede employees and Missouri Natural Non-Union employees changed. An employee qualifies for the increase in the number of vacation days on the first of the year in which the employee will celebrate his/her first (10 days), fifth (15 days), 10th (20 days) and 20th (25 days) service anniversaries. Visit The Portal for details. Leave of Absence Provisions • All Laclede and Missouri Natural Non-Union employees no longer receive a full day’s pay if an employee leaves work early due to sickness involving a family member. • One paid day off for major surgery of a family member has been eliminated. • Employees are now allowed one paid day off to attend a spouse’s or domestic partner’s childbirth. • Employees are eligible to receive a one day funeral leave of absence for a spouse’s grandparent or a brother/sister-in-law, niece or nephew. There have been no changes to the eligible immediate family member deaths that qualify for a three day funeral leave of absence. PBGC 3-Month Look Back Beginning with retirements on January 1, 2013, the discount rate used by the Employees’ Retirement Plan is now the rate announced by the Pension Benefit Guaranty Corporation (PBGC) three months prior. Please note that this change applies only to the Laclede division pension plan. Until further notice, Missouri Natural Gas employees continue to use the PBGC rate announced for October 1, 2012 for retirements. Performance Appraisal Changes The performance appraisal process for all Non-Union employees moved to a focal-date (one point in time) beginning with fiscal year 2013 (October 1, 2012). Objectives for all employees should now be planned for and evaluated based on the company’s fiscal year cycle (October 1– September 30). A mid-year review is also now part of the process, which is set up so any merit pay increase will be on the first paycheck in December. Laclede Supported Charity Walks and Runs Thanks to all employees who voted during the December Game On meetings on the charity walks/runs the company will support through fiscal year 2015. As a direct result of your input, and in conjunction with our new charitable giving strategy, we will support the American Heart Association Heart Walk in fiscal 2013; the Komen St. Louis Race for the Cure in fiscal 2014; and the JDRF Walk for Diabetes in fiscal 2015. Details regarding the AHA Heart Walk will be available in the near future. Laclede Gas Company Wins National Green Building Award First Time for Utility Partner of the Year Award Preserving our environment is vital to our way of life today and in the future. Laclede Gas Company has several programs dedicated to environmental sustainability and energy efficiency. So the employees of Laclede Gas are especially honored to receive the first ever utility partner award given by the National Association of Home Builders. The award was presented during the recent 2013 International Builders Show in Las Vegas. Laclede Gas was honored for their dedication to high-performance building, the National Green Building Standard and environmental education at the local and regional level. The National Green Building Standard was developed as a national building code for environmentally efficient homes. “Laclede Gas is honored to receive this award and is proud to help promote building practices that conserve natural resources, protect the environment, and improve air quality while providing energy cost savings to consumers,” said Jim Hearing, director of Sales and Customer Accounts. “Knowing this is the inaugural award in this category shows what a true leader Laclede Gas is in energy efficiency and sustainability,” said Matt Belcher, chair of the National Association of Home Builders Green Building Council. “We are thrilled to recognize Laclede Gas in a national spotlight.” Laclede Gas works with the Home Builders Association of St. Louis and Eastern Missouri to help builders and owners who want homes that are energy efficient. The design, construction and operation of a home must focus on energy and water efficiency, resource efficient building design and materials, indoor environmental quality, and take the home’s overall impact on the environment into account. n > For more information on green homebuilding, contact Sid Koltun, business development representative for Laclede Gas, at 314-342-0685 or [email protected]. 12 Online Safety Tips It is important to remember that the Internet is public domain and you should be cautious in what you post online, regardless of whether or not the information or content is business or personal. Every employee is privy to information about the company, some of which can be sensitive or confidential, so it’s especially important to be mindful of your posts when it comes to business intelligence. Follow these tips for online safety: • Be careful about what you advertise about yourself and Laclede online • Don’t view the Internet, social media sites or blogs as a work diary • Realize that once you have posted content online, it becomes a permanent record • Before you publish content online, determine the value of the information and the implications of having the information available to the public • If you are not comfortable sharing the information with strangers, don’t post it online > For questions related to online security, contact the Service Desk at 314-342-0644. A Tribute to Lee M. Liberman Leadership that defined our culture for a generation Lee M. Liberman, retired chairman of the board, president and chief executive officer of Laclede Gas Company, passed away on August 31, 2012. His leadership has been widely recognized as having defined Laclede’s management culture for a generation. Throughout his career, Lee focused on the importance of continuous access to adequate, dependable supplies of reasonably priced natural gas. Assurance of a competitively priced supply enabled Laclede to meet customer needs during the coldest winters, to support expansion into new service areas, and to actively promote new uses for natural gas. Lee was a strong advocate of a national energy policy that would ensure the most efficient uses of the nation’s fossil fuels. When Congress enacted the Natural Gas Policy Act of 1978, Lee was one of the few executives of a gas distribution company to oppose its passage. “I first met Lee early in my career in the gas industry when I was at Mississippi River Transmission (MRT). That was when the pipeline was the sole supplier of natural gas to Laclede during the period of a national natural gas supply shortage and massive curtailments,” said retired Chairman of the Board and Chief Executive Officer of The Laclede Group, Inc. Douglas H. Yaeger. “Of course, Lee was extremely vocal regarding national policy addressing the situation. He became a strong advocate for using natural gas only for residential and commercial markets and never for an ‘inferior’ market such as the electrical power generation. Lee gained an industry-wide reputation in that regard. Needless to say, that whole paradigm has changed over the years, but I’m not sure Lee’s passion for the direct use of natural gas as an energy source ever did.” Lee started as a cadet engineer and worked as a chemist at the coke plant on Rutger Street in 1947. He worked in various positions throughout the company before being named president and chief operating officer in 1970. In 1974, the board gave him the additional title of chief executive officer. In April 1976, Laclede’s board of directors elected Lee chairman of the board. He retired as chairman of the board in 1994. “Lee Liberman realized that in order for a corporation to thrive it must bring together a voice for all its constituents,” said The Laclede Group Board Member Mary Ann Van Lokeren. “Not only was Lee concerned about diversity in the workplace, but he also believed it was past time for women to have a seat at the board table.” Born in 1921 in Salt Lake City, Utah, Lee lived in the Mormon Commonwealth until 1931 when the family moved to St. Louis. Lee attended the Field School in St. Louis through the eighth grade and then moved on to Soldan High School. He graduated from Yale University in 1942 with a degree in engineering. After serving in the Army Air Corps during World War II, Lee was discharged in October 1945. Although he had been accepted to Stanford University School of Law, Lee accepted a referral by the U.S. Employment Service and joined Laclede Gas. He was a lifelong learner who attended Washington University full time during retirement earning a doctorate in American literature and history at age 83. n Memories of Lee... “Lee was just a brilliant guy. A big man who was a big supporter of Laclede and St. Louis as a whole. His input and leadership was welcomed in the business community and by the various institutions he patronized. Lee was generous with his time and became a formidable presence in St. Louis.” —William E. Nasser, chairman of the board, The Laclede Group, Inc. “Lee Liberman was a remarkable man in many ways: volatile, opinionated, a fierce competitor, extremely bright, sharp sense of humor, fair-minded and, from a legacy standpoint, I don’t know of anyone who did as much for the St. Louis region on multiple levels to make this a better place to live and work. Lee truly left his mark beyond his career at Laclede. He was a great supporter and mentor to me and he will be missed by many.” “I will always be grateful to Lee for his support and trust. Not only was he a great friend and mentor but also a committed community leader. He will be sorely missed.” —Mary Ann Van Lokeren, board of directors, The Laclede Group, Inc. “I always found Lee to be gracious and fair. He was very well known in the gas industry and, at that time, it set him apart from other gas executives. He was well-respected and his leadership continues to have a lasting impact on Laclede and the St. Louis community.” —Douglas H. Yaeger, retired chairman of the board and chief executive officer, The Laclede Group, Inc. “I worked for Lee for 31 years and learned his style on my very first day of reporting to him. When I was put on special assignment for what I thought would be a two-month project, I was in over my head and went to Lee to ask for help in getting started. With some tough direction, he set me on a path of research and self-teaching, two qualities that guided him in his own approach to work and life. He was a respected and revered leader who understood that all things were possible through research, self-teaching, long hours and hard work.” —Robert Jaudes, retired chairman, president and chief executive officer, Laclede Gas Company —Anthony V. Leness, board of directors, The Laclede Group, Inc., Laclede NEWS 13 Celebrations The following Celebrations are for the months of July–December 2012: Service Anniversaries 45 Years Albert C. Johns—December 2012 40 Years Mark S. Cook—September 2012 35 Years Alvin L. Slater—August 2012 Kenneth J. Brown—September 2012 Thomas L. Coughlin—September 2012 Larry L. Westerfield—September 2012 Walter A. Reitz—October 2012 Sherry K. Anderson—November 2012 Stephen Zeller—November 2012 30 Years Karen S. Werle—August 2012 Rick L. Abel—September 2012 Johnny E. Brannum—September 2012 David A Picarella—October 2012 Marvin A. Hensel—November 2012 Kent R. Merriman—November 2012 Curtis D. Newton—November 2012 Mary E. Thomas—November 2012 Rita J. McIntosh—December 2012 25 Years Phillip J. Bonastia—July 2012 William J. Maragni—July 2012 Keith A Markowski—July 2012 R. Scott Cidlik—August 2012 Michael J. Habsieger—August 2012 Michael P. McCann—August 2012 Mark A. Short—August 2012 Andy J. Wheeler—August 2012 Tony C. White—August 2012 Michael P. Yancy—August 2012 Patrick T. Higgins—September 2012 Lance J. Polette—September 2012 Susan M. Anderson—October 2012 Linda M. Swan-Van Vickle— October 2012 Steven D. Wahlig—October 2012 Martha A. Diekemper— November 2012 David J. Hubbard—November 2012 Gregory A. Lynn—November 2012 Phillip G. Markus—November 2012 Bryan K. Hodges—December 2012 Allen W. Wisniewski— December 2012 20 Years Dale R. Calicotte—July 2012 Darryl A. Carter—July 2012 Mark A. Hovorka—July 2012 Rebecca J. Martin—July 2012 Daniel E. Frigerio—August 2012 Kurt J. Maness—August 2012 Todd M. Rhodes—August 2012 James E. Hickman—September 2012 Barry J. Brinkman—October 2012 Christopher E. Hart—October 2012 Timothy S. Perkins—October 2012 Erik A. Turner—October 2012 Jerry K. Arvanitakis—November 2012 Michael E. Baerman— November 2012 Leonard L. Gray—November 2012 David C. Gummersheimer— November 2012 Richard J. Igo—November 2012 Bernadette M. Triola— November 2012 Jeffrey S. Childers—December 2012 14 There are many reasons to celebrate at Laclede as team members reach service milestones or retire after years of dedicated service to our customers. Congratulations and thank you for your service! Raymond W. Steiger— December 2012 Robert T. Vaughn—December 2012 15 Years Steven E. Coleman—July 2012 Audrey F. Kinder—July 2012 Mark J. Szpatoski—July 2012 Susan K. Tucker—July 2012 Michael J. Behan—August 2012 Julia Hines—August 2012 Richard Phillips II—August 2012 Michael A. Sander—August 2012 Jeffrey R. Benack—September 2012 David A. Riley—September 2012 Veronica Steele—September 2012 Joesph F. Voellinger— September 2012 Darmaine O. Clavelle—October 2012 Richard M. Eggleston—October 2012 Jeff M. Hayden—October 2012 Maliaka R. Jackson—October 2012 Jeniffer A. Tepe—October 2012 Clifton M. Cornish—November 2012 Shelton Morrow—November 2012 Kristina M. Sheridan— November 2012 Robyn K. Williams—November 2012 Michael K. Atkinson— December 2012 Scott A. Eichholz—December 2012 Stacey L. Lawrence—December 2012 10 Years Aaron C. Fish—July 2012 John P. Locascio—July 2012 Christopher R. Niemann—July 2012 Brain D. Patterson—July 2012 Susan G. Ruder—July 2012 Gail A. Schleicher—July 2012 Karen L. Brown—October 2012 Theresa R. Gallagher—October 2012 Daniel J. McCluskey—October 2012 Michael A. Bennett—November 2012 Susan D. Griffey—November 2012 James T. Grofe—November 2012 Kelly A. Hardie—November 2012 Derrick S. Holder—November 2012 David L. Mays—November 2012 Mark N. Bray—December 2012 Michael S. Catanzaro— December 2012 David P. Elliott—December 2012 Nickolas P. Figliolo—December 2012 Nicolae Gherle—December 2012 Brian J. O’Leary—December 2012 Derrick A. Whipple—December 2012 Ezra L. Yount—December 2012 5 Years Kent L. Jones—July 2012 Kimberly E. Miller—July 2012 Timothy J. Washausen—July 2012 Carrie A. Anderson—August 2012 Jonathan Cann—August 2012 Toraino A. Hellems—August 2012 Clifford Q. Jones—August 2012 Tyler J. Lavin—August 2012 Stephen J. Demsko—September 2012 Deionita L. Gibbs—September 2012 Nicholas J. Schlemer— September 2012 Chanel A. Bell—October 2012 Blanche D. Butler—October 2012 Nicole K. Krietemeyer—October 2012 Joel S. Simons—October 2012 Ricky T. Berry—November 2012 Karen S. Gieseking—November 2012 Kellie L. Wayne—November 2012 Amanda M. Reitz—December 2012 Retirements July 2012 Dennis R. Banden Underground Storage 29 years of service Shaaban Ben-Poorat Environmental–South 18 years of service Linda A. Bolton Customer Accounting–Downtown 24 years of service Lawrence E. Eastman Human Resources–Downtown 45 years of service Ronald A. Ferber Maintenance Engineering–Central 22 years of service Dennis R. Henke C&M–North 33 years of service Sheryl A. Hill Customer Relations–Downtown 25 years of service Michael P. King C&M–North 24 years of service Anthony F. Kunz SAID–South 20 years of service Carl E. Luss C&M–Central 34 years of service Dennis C. Ochs Plants and Stations–South 23 years of service Bruce S. Trigg C&M–Central 34 years of service Kenneth S. Turner C&M–North 24 years of service Barbara L. Zytniak Meter Department–Meter Shop 36 years of service August 2012 Kenneth J. Brown C&M–Central 34 years of service Jesse E. Bryant C&M–Central 25 years of service Don L. Carter Transportation–North 34 years of service Michael L. D’Harlingue C&M–South 34 years of service David M. Doering Meter Reading Services–Downtown 31 years of service William C. Ford Meter Department–Central 32 years of service Peter A. Gianino Measurement–South 23 years of service Askia F. Hameed C&M–North 32 years of service David L. McCulloch Meter Department–Meter Shop 34 years of service Michael D. Meinhardt C&M–Central 23 years of service Bruce A. Schrama Plants and Stations–South 34 years of service Mark L. Smith Underground Storage 22 years of service William L. Stout System Control–Central 7 years of service James B. Sunderman Transportation–South 14 years of service Shirley A. Wright Administrative Services–North 26 years of service September 2012 Stanley J. Crain C&M–North 32 years of service Gene A. Goodwin SAID–Central 35 years of service Robert G. Corzine SAID–Central 22 years of service Steven M. Webber SAID–South 21 years of service Terry J. Harris C&M–Central 28 years of service Gail A. Piersol Customer Service–Downtown 34 years of service October 2012 Gerard J. Boschert Meter Department–South 35 years of service James H. Boyd C&M–Central 36 years of service Please send future “Celebrations” to [email protected]. Gregory M. Enghauser C&M–South 32 years of service Douglas K. Lawrence C&M–South 32 years of service In Memory Our hearts go out to the friends and family of those who have recently passed away. Their dedication to this company and our customers helped build a solid foundation for years to come. James M. McMurtry, retiree, passed away on August 23, 2012. He became employed at Laclede Gas Company on January 15, 1952 and retired August 1, 1982 as a special adjuster in the Meter Shop. Lester C. Baier, retiree, passed away on July 24, 2012. He became employed at Laclede Gas Company on November 28, 1949 and retired January 1, 1989 as a corrosion protection inspector in C&M–South. Bob E. McVicar, retiree, passed away on June 21, 2012. He became employed at Laclede Gas Company on March 20, 1944 and retired April 1, 1980 as head stockman in Materials and Supplies. November 2012 Charles H. Birchler, retiree, passed away on October 4, 2012. He became employed at Laclede Gas Company on June 5, 1951 and retired July 1, 1991 as a superintendent of instrumentation and control in Engineering. James E. Menner, retiree, passed away on September 29, 2012. He became employed at Laclede Gas Company on September 19, 1967 and retired February 1, 2008 as a general fitting man in SAID–Central. Robert R. Sammelmann C&M–Central 29 years of service Griffin C. Blansit Jr., retiree, passed away on December 3, 2012. He became employed at Laclede Gas Company on April 1, 1969 and retired July 1, 2000 as the manager of Methods and Procedures–Downtown. Athol J. “A.J.” Michener, retiree, passed away on November 2, 2012. He became employed at Laclede Gas Company on April 9, 1970 and retired March 1, 1985 as a project engineer in Sales–Downtown. Eugene K. Brawley, retiree, passed away on June 15, 2012. He became employed at Laclede Gas Company on March 13, 1950 and retired June 1, 1984 as a general foreman in C&M–Leak–Central. James E. Price, retiree, passed away on July 18, 2012. He became employed at Laclede Gas Company on June 5, 1986 and retired May 1, 2011 as an accounting clerk in Customer Accounting– Downtown. Stephen M. Steffan Underground Storage 28 years of service Patricia A. Wynn Residential Sales–Downtown 27 years of service Barbara A. Pitman Customer Relations–Downtown 24 years of service Daniel R. Seiler Underground Storage 22 years of service Robert E. Stricker Information Technology Services 33 years of service Derrick Triplett C&M–Central 30 years of service December 2012 Kevin C. Dietzman C&M–North 28 years of service Alvin L. Slater C&M–Central 35 years of service Births Congratulations to the proud parents and grandparents! Maliyah Yvette Deeds was born to Cherie Kurtz and Michael Deeds on July 30, 2012. Maliyah weighed 6 pounds, 3 ounces and was 19 inches long. Maliyah is the granddaughter of Lawrence White Sr., C&M–North. Zain Power was born to Gary and Nisar Power on October 29, 2012. Zain weighed 7 pounds, 9 ounces. Gary is a field support technician at Forest Park. We Want to Hear From You! @ To submit an idea, provide feedback, ask a question or just say “hi,” email us at [email protected]. When submitting story ideas, please contact us at least two months prior to the issue date. Laclede News is a quarterly publication. For the next issue, please submit story ideas by April 1 for July 2013 distribution. Ernest L. Cole, retiree, passed away on October 14, 2012. He became employed at Laclede Gas Company on September 11, 1951 and retired September 1, 1982 as a meter reader in Meter Reading. Aloysius “Al” R. Dobelman, retiree, passed away on September 26, 2012. He became employed at Laclede Gas Company on September 3, 1947 and retired May 1, 1993 as the director of Customer Relations–Downtown. Ann R. Gallagher, retiree, passed away on June 13, 2012. She became employed at Laclede Gas Company on December 6, 1965 and retired February 1, 1987 as a service representative– clerical in Customer Relations–Downtown. Gene W. Goad, retiree, passed away on June 2, 2012. He became employed at Laclede Gas Company on June 22, 1949 and retired June 1, 1996 as a special adjuster ICI in SAID–Central. William V. Grigaitis, retiree, passed away on November 20, 2012. He became employed at Laclede Gas Company on July 10, 1957 and retired November 1, 1989 as a residential builder sales representative in Sales–Downtown. Theodore J. Koviak, retiree, passed away on October 7, 2012. He became employed at Laclede Gas Company on August 24, 1949 and retired April 1, 1983 as a main extension representative in SAID–North. Lee M. Liberman, retired chairman of the board, president and chief executive officer of Laclede Gas Company, passed away on August 31, 2012. He became employed at Laclede Gas Company on December 1, 1945 and retired July 1, 1993. John D. Lyons, retiree, passed away on November 11, 2012. He became employed at Laclede Gas Company on March 6, 1967 and retired October 1, 1992 as the superintendent of Underground Storage. Frances V. Makarewicz, retiree, passed away on July 21, 2012. She became employed at Laclede Gas Company on March 30, 1949 and retired July 1, 1986 as a head data processing equipment operator in Data Processing. William Radovich, retiree, passed away on June 29, 2012. He became employed at Laclede Gas Company on March 10, 1950 and retired January 1, 1983 as a leak truck man in C&M–Leak–Central. Robert J. Ruggeri, retiree, passed away on September 11, 2012. He became employed at Laclede Gas Company on September 13, 1967 and retired September 1, 2005 as a service representative–telephone in Customer Relations–Downtown. Frank J. Ruxlow Jr., retiree, passed away on October 3, 2012. He became employed at Laclede Gas Company on June 8, 1949 and retired August 1, 1988 as a fitter in the Meter Shop. Harvey W. Schrum, retiree, passed away on July 8, 2012. He became employed at Laclede Gas Company on October 5, 1953 and retired September 1, 1975 as a gas man in C&M– Leak–Central. William R. Smithey, retiree, passed away on October 4, 2012. He became employed at Laclede Gas Company on October 11, 1949 and retired January 1, 1991 as a supervisor of gas supply and control in Plants and Stations–South. Dorothy J. Spring, retiree, passed away on September 8, 2012. She became employed at Laclede Gas Company on August 4, 1942 and retired September 1, 1981 as a service representative–telephone in Customer Relations–Downtown. Alvina M. Wessling, retiree, passed away on July 29, 2012. She became employed at Laclede Gas Company on February 1, 1960 and retired January 1, 1981 as a custodian in Facilities. Frank Wolff, retiree, passed away on August 15, 2012. He became employed at Laclede Gas Company on November 3, 1944 and retired January 1, 1991 as a meter change and remove man in the Meter Shop. Harry J. Zacher Jr., retiree, passed away on December 24, 2012. He became employed at Laclede Gas Company on March 15, 1950 and retired January 1, 1983 as an off hour domestic adjuster in SAID. Laclede NEWS 15 Laclede NEWS Drawer 9 St. Louis, MO 63166 Prsrt. Std. U.S. Postage PAID Permit No. 735 St. Louis, MO Visit dollarhelp.org for more information. Every dollar helps. DollarHelp is an easy way to lend a hand to families struggling to stay warm this winter. Just check the red box at the bottom of your gas bill. Laclede Gas will match every monthly dollar donation, up to $55,000. Turn one dollar into two. Stay tuned for more details! Thursday, June 20 St. Louis Cardinals vs. Chicago Cubs 2013 All-Employee Event at Busch Stadium SAVE THE DATE Safety: The Cornerstone of Everything We Do We have to be safe in every aspect of our daily service. “Our employees are very well-trained in terms of safety procedures and what to do in the event of an emergency,” said Director of Corporate Safety and Disaster Preparedness Marshall Balk. “And our safety efforts extend past technician training to include public awareness campaigns and other educational programs that help prepare and inform our customer base. We have one of the best overall safety programs in the industry.” Our focus on safety should also carry through to our personal lives. Just as this issue’s topic in Bits & Bytes is related to online safety, there are steps each of us can take to remain safe and secure while traveling to and from work as well as within our communities. Stay alert Always know where you are and remain tuned in to your surroundings. Avoid texting, talking on your cell phone or listening to music or podcasts while walking in public. If your attention is on your device and not on your surroundings, you could become a target for theft or assault. Stick to well-traveled paths and don’t take shortcuts. Plan ahead Know the route to your destination, whether it is to your work location, home, retail outlet, or vehicle or transit stop. Carry as little as possible when walking to and from work. If your arms are full you are a target. Also, find co-workers who travel in similar circles and walk together to your parking garage or transit stop. Trust your instincts If something or someone makes you feel uneasy, cross the street or leave the area altogether. If someone attempts to stop you to ask a question or request something and they make you feel uneasy, do not stop. Keep walking. If you think someone is following you, switch direction or cross the street. Walk to an open store, restaurant, business or lighted house. If you’re scared, yell for help. Protect yourself front pants pocket (not a back pocket). Try to use automated teller machines in the daytime. Have your card in hand and don’t approach the machine if you’re uneasy about people nearby. Have your car or house key in hand before you reach your vehicle or front door. Working late? Make sure there are others in the building and, if need be, ask a colleague or security guard to walk you to your car or transit stop. Downtown Guides If working downtown, complimentary escorts to your vehicle or transit stop are available Monday through Friday from 8 a.m. to 9 p.m. Call 314-280-4817 to request an escort. n Don’t flash large amounts of cash or other tempting targets like expensive jewelry or clothing. A purse should be carried close to your body, not dangling by the straps. Store a wallet in an inside coat or