PRESENTED BY:

Vivian Bouet Interim Chief Information Officer (CIO)

May 20, 2019

Informational Update

ASSET OPTIMIZATION STRATEGY

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OBJECTIVES & TAKEAWAYS

• SHARE OUR STRATEGIC APPROACH OPTIMIZING TECHNOLOGY ASSETS

• DISCUSS CIVIC PARTNERSHIP OPPORTUNITIES

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AGENDA

• EXECUTIVE SUMMARY

• VALUE PROPOSITIONS

• ASSET OPTIMIZATION PRINCIPLES

• DATA CENTER CO-LOCATION

• FIBER NETWORK SHARING

• NEXT STEPS

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EXECUTIVE SUMMARY

Our goal is to serve our customers using a multi-pronged approach to optimize technology assets

Safe, reliable, affordable & sustainable energy

services for our customers

Strategically optimize fiber network & data center investments to business operations & customer experiences

Develop civic partnerships to the

benefit of our customers & community

Stock photo San AntonioCPS Energy workers

1. Data Center

2. Fiber Network

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VALUE PROPOSITIONSMAXIMIZE BENEFITS TO CUSTOMERS, COMMUNITY & PARTNERS

Customer Community Civic PartnersAffordable, Secure, Reliable & Sustainable Energy Products & Services:

• Enable New & Improved Customer Experiences

• Optimize Safe & Efficient Energy Delivery

Supporting a High Quality of Life Through Enablement:

• Enable SmartSA Initiatives• Close Digital Divide • Optimized Community

Services

Leverage Our Assets & Provide Connectivity:

• Reliable & Secure Connections & Space

• Reduced Technology Investments

• Reduce Operational Costs

Technology Assets Value Propositions

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ASSET OPTIMIZATION PRINCIPLESTHESE PRINCIPLES GUIDE HOW WE MAXIMIZE OUR TECHNOLOGY ASSETS

Maximize Value to Our Customers by Managing Cost & Maximizing Returns on Investments

Support Community Initiatives to Improve Lives

Enable Valuable & Flexible Capabilities at Scale

Provide Reliable, Sustainable, & Secure IT Services to Enable Customers & Operations

Minimize Complexity & Risk (Operational, Legal/Political, Security & Financial)

A

B

C

D

E

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• Built in 2015

• Delivers high reliability in computing power

• Supports customer contact & internal business operations

• Technological advancement & strategic management unlocked additional available capacity

ECHO DATA CENTERPROVIDES SECURE & RELIABLE COMPUTING & STORAGE

Stock data center photo

Our goal is serve our customers by lowering our operating costs through a shared asset model with our civic partners

Civic Partner Interest

• SAWS currently co-locates in facility

• Other civic partners are interested in co-locating

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Civic Partner Interest• CoSA & Bexar County currently utilize our fiber (Current radio system)• Alamo Area Regional Radio System will use our fiber network (New radio system)• Other civic partners are interested in sharing in our fiber network

FIBER NETWORKTHE FIBER NETWORK IS OUR NERVOUS SYSTEM & REQUIRES INVESTMENT TO MAINTAIN

Stock network photo

Our goal is to optimize required future investments needed to serve our customers through a shared asset model with civic partners

• Provides secure, reliable & sustainable communication & control

• Fiber network spans our entire service area• Material investment needed to maintain reliability

through lifecycle management• Technological advancements & optimization have given us

available capacity

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SUMMARY

Our goal remains to continue to look for opportunities to manage costs, optimize investments, and unlock value for our customers

Optimize Data Center Operational Costs

Optimize Fiber Network Investments

Develop Civic Partnerships

Serve Our Customers & Community

Stock data center photo Stock network photoSan Antonio

CPS Energy customers & employees

A B C

#1GOAL

Thank You