I I Paul E. Russel l Associate General Counsel

PPL Two North Ninth Street

Allentown, PA 18101-1179 Tel. 610.774.4254 Fax 610.774.6726

perussell@pplweb.com

\ I » i ' * ft o n * '

D o -PPI FEDERAL EXPRESS

March 1, 2016

Rosemary Chiavetta, Secretary ' I ^Qjg Pennsylvania Public Utility Commission Commonwealth Keystone Building PA PUBLIC UTILITY COMMISSION 400 North Street SECRETARY'S BUREAU

Harrisburg, Pennsylvania 17120

. M-ooqnossi Re: PPL Electric Utilities Corporation

Report on Diversity

Dear Ms. Chiavetta:

Enclosed for filing on behalf of PPL Electric Utilities Corporation ("PPL Electric") is a copy of PPL Etectric's "Report on Diversity to the Pennsylvania Public Utility Commission." This report is being filed pursuant 52 Pa. Code § 69.809.

Pursuant to 52 Pa. Code § 1.11, the enclosed document is to be deemed filed on March 1, 2016, which is the date is was deposited with an overnight express delivery service as shown on the delivery receipt attached to the mailing envelope.

Please date and time-stamp the enclosed extra copy of this letter and return it to me in the envelope provided.

If you have any questions regarding the enclosed report or need additional data, please call me.

Very truly yours,

'Paul E. Russell

Enclosure

REPORT ONI DIVERSITY TO THE PENNSYLVANIA PUBLIC UTILITY COMMISSION

m RECEJ MAR " 1

iVED

PA PUBLIC UTILITY COMMISSION SECRETARY'S BUREAU

A

PPL Electric Utilities Corporation March 1,2016

REPORT ON DIVERSITY TO THE PENNSYLVANIA PUBLIC UTILITY COMMISSION

HUMAN RESOURCES SECTION

A

PPL Electric Utilities Corporation March 1, 2016

Human Resources Section

Table of Contents

Page

Part 1 Workforce Composition 1-4

Part 2 Narrative on Affirmative Action Efforts 5

2a Recruiting 5 - 7 2b Advertising 7 2c Training 7.-8 2d Promotion 8 - 9 2e Retention 9-10

PPL Electric Utilities 2012 Workforce Composition

MALE FEMALE

Black Asian Hispanic Amer. Indian White Black Asian Hispanic

Amer. Indian White

Job Category Total Black Asian Hispanic Amer. Indian White Black Asian Hispanic

Amer. Indian White

Executive/Sr Level Officials 4 0 0 0 0 3 0 0 0 0 1

First/Mid Level Officials 373 11 4 2 2 281 3 " 1 4 0 65

Professionals 444 10 7 11 0 284 7 4 4 0 117

Technicians 176 3 0 5 0 153 0 0 0 0 15

Administrative Support Workers 412 2 0 3 0 50 30 2 23 1 301

Craft Workers 848 30 2 12 1 789 0 0 0 0 14

Operatives 49 1 1 38 0 0 0 0 9

Laborers and Helpers 75 3 0 0 0 67 1 0 0 0 4

Total 2381 60 13 34 3 1665 41 7 31 1 526

Source: 2012EEO-1 Report/HRPR Query-03/26/2013

to

P P L Electric Utilities 2013 Workforce Composition

M A L E FEMALE

Black Asian Hispanic Amer. Indian White

2 or More Races Black Asian Hispanic

Amer. Indian White

2 or More Races

Job Cateqory Total Black Asian Hispanic Amer. Indian White

2 or More Races Black Asian Hispanic

Amer. Indian White

2 or More Races

Executive/Sr Level Officials 5 0 0 0 0 4 0 0 0 0 0 1 0

First/Mid Level Officials 360 10 2 2 2 267 1 3 2 3 0 68 o Professionals 454 8 7 11 0 303 0 7 5 6 0 107 o Technicians 169 3 0 5 0 146 0 0 0 0 0 15 o

Administrative Support Workers 399 1 0 3 0 47 0 29 2 22 1 294 o Craft Workers 819 27 2 13 1 761 0 0 0 0 0 15 o Operatives 46 1 0 1 0 36 0 0 0 0 0 8 o

Laborers and Helpers 57 3 0 0 1 47 0 1 0 0 0 5 o Total 2309 53 11 35 4 1611 1 40 9 31 1 513 0

Source: 2013 EE0-1 Report/HRPR Query-02/02/2014

Job Category

Executive/Sr Level Officials

Ftrst/Mid Level Officials

Professionals

Technicians

Administrative Support Workers

Craft Workers

Operatives

Laborers and Helpers

Total

Total

353

459

160

386

764

39

33

2199

PPL Electric Utilities 2014 Workforce Composition

MALE

Black

10

24

45

Asian

Source: 2014 EE0-1 Report/HRPR Query-02/11/2014

Hispanic

11

33

Amer. Indian White

262

312

139

45

711

32

29

1534

2 or More Races

0

FEMALE

Black

30

41

Asian Hispanic

0

21

29

Amer. Indian White

65

108

14

284

14

494

2 or More Races

0

PPL Electric Utilities 2015 Workforce Composition

MALE FEW! ALE

Black Asian Hispanic Amer. Indian White

2 or More Races Black Asian Hispanic

Amer. Indian White

2 or More Races Job Cateqory Total Black Asian Hispanic

Amer. Indian White

2 or More Races Black Asian Hispanic

Amer. Indian White

2 or More Races

Executive/Sr Level Officials 4 0 0 1 0 2 0 0 0 0 0 1 0

First/Mid Level Officials 306 8 2 4 4 230 0 3 1 4 0 50 0

Professionals 406 9 7 10 0 283 0 7 4 4 0 82 0

Technicians 150 2 0 5 0 132 0 0 0 0 0 11 0

Administrative Support Workers 344 0 0 3 0 36 0 29 2 17 1 256 0

Craft Workers 715 22 2 10 1 668 0 0 0 0 0 12 0

Operatives 26 0 0 1 0 20 0 0 0 0 0 5 0

Laborers and Helpers 57 3 0 1 0 50 0 0 0 0 0 3 0

Total 2008 44 11 35 5 1421 0 39 7 25 1 420 0

Source: 2015EE0-1 Report/HRPR Query-01/26/2015

PPL ELECTRIC UTILITIES Narrative on Affirmative Action Efforts March 1,2016 M A R 1

PA PUBLIC UTILITY COMMISSION SECRETARY'S BUREAU

Introduction

PPL Corporation (NYSE: PPL), with 2014 revenues of $11.5 billion, is one of the largest companies in the U.S. utility sector. The PPL family of companies delivers electricity and natural gas to about 10 million customers in the United States and United Kingdom. PPL Electric Utilities is responsible for the operation of United States electricity delivery business, serving 1.4 million customers in Pennsylvania.

Recruiting

PPL Electric Utilities continues its efforts to secure qualified minority and female applicants for job vacancies through aggressive recruiting. All recruitment sources - PPL Website, Internet job boards, advertisements, etc. - include a statement supporting our commitment to Affirmative Action. Additionally, external recruitment agencies are advised of the Company's interest in seeking a diverse slate of candidates for all positions.

Community outreach is an effective recruitment and hiring strategy to assist in meeting PPL's need for a talented, diverse and skilled workforce. In 2015, PPL participated in the following diverse community events:

• Latino Leadership Alliance, NAACP's, American Association of Blacks in Energy, PA Diversity Network (LGBT), Women's Leadership Initiative, LV SWE, Hispanic Center of LV, Urban League, and Hispanic American Organization

• CEWD Regional Meeting - Energy companies partnering with educational institutions and workforce system to create workable solutions to address the need for a qualified, diverse workforce.

• National Society of Black Engineers (NSBE) Conference career fair booth • My Brother's Keeper of the Lehigh Valley, promoting careers in energy to

local high school and middle school students

PPL continued their campaign to recruit veterans in 2015, by participating in two (2) career fairs and transition assistance program events. PPL Electric Utilities attended two (2) additional Orion military hiring conferences and has started to develop a strategic partnership with Orion to aide military recruiting effectiveness. PPL is one of nine corporate sponsors of "Troops to Energy". In addition, PPL utilized the Career Page military translator - matching military jobs to PPL opportunities, assisting veterans' transition to civilian jobs.

A key component of our academic relations strategy is to aggressively seek women and minority students through networking with professional associations such as, the Society of Women Engineers (SWE), the Society of Hispanic Professional Engineers (SHPE), and the National Society of Black Engineers (NSBE). PPL also works with the Urban League of Philadelphia and the Upward Bound Program at East Stroudsburg University. PPL also participates in Future Workforce (High School) events to help create excitement around STEM careers. PPL has participated in many diversity events, as part of our strategy. A large part of our academic relations program focuses on new graduates for PPL Electric Utilities and this has been supported by senior management.

In 2015, PPL:

• Attended targeted diversity events at colleges and universities included Temple University, Penn State University, Moravian College and Kutztown University

• Sponsored a team to participate in the Da Vinci Ice Cream Wars-with a STEM focus

• Co-Sponsor of Thaddeus Stevens TechGyrls Summer Camp for middle school girls (grades 4-9) to expose them to careers in technical fields

• Sponsored and presented at the Villanova VIEW program for high school inner city females

• Sponsored five (3)Latino students through Futures Empresarios to job shadow employees from a variety of professions at PPL

• Participated in events at local diverse high schools such as the Career Pathways Program at Liberty High School, the Whitehall High School Career Fair, and Noche De Gala for student leaders at Allen High School

• Sponsored Upward Bound's Leadership Program, the Samurai Game

PPL Electric Utilities is very supportive of the Company's Internship Program. The program offers the opportunity for students to learn how to apply theories taught in the classroom. Students can clarify career goals and earn a portion of college expenses, while alternating between work and college. In 2015, PPL Electric Utilities employed twenty-eight (28) Interns with 50% being female and 25% being minority. The Internship Program also serves as a feeder pool for new graduate hires. Five (5) seniors were converted to full time hires in 2015, with 40% being female and 20% being minority.

PPL's Internship Scholarship program awards four (4) scholarships to students based on their academic achievements, work contributions, and aspirations to learn about the power industry. One scholarship is designated for diversity leadership.

Management positions are typically filled by a structured team approach to interviewing. Interview guides are designed based on the critical competencies

and behaviors for the positions. Representatives from the PPL's Electric Utilities and Corporate Services Human Resources department organizes interviews and provides guidance and coaching for interview teams to help ensure a fair and consistent process is utilized.

All applicants are required to submit resumes through the PPL Career Website to specific vacancies. These applicants then become the applicant pool for the position.

Advertising

PPL's primary source of advertising is the PPL Career Website (www, p p I web. com/careers). We also use various internet job boards to drive candidates to our career site. In addition, job vacancies are posted through DirectEmployers to 25+ job boards, the PA Commonwealth Workforce Development System Website (www.cwds.state.pa), and. All qualified applicants receive consideration for employment without regard to race, color, age, religion, sex, national origin, protected veteran status, sexual orientation, gender identity, genetic information, disability status, or any other protected characteristic.

PPL has had ad representation in print/web diversity advertisements including: Minority Engineer Magazine, Philadelphia Daily News and a Military specific Employer of Choice ad in Fortune Magazine June 2015 Military Employer Issue. PPL also engaged IMDiversity.com, EqualOpportunityPublications.com and Linkedln Diversity Advertising in an attempt to gain a larger viewing audience, bolster Diversity advertising reach and engage a new group of diverse, passive candidates.

Throughout the year, PPL is a frequent advertising sponsor to various external organizations, such as; local branches of the NAACP, Hispanic Center, Latino Leadership Alliance of the Lehigh Valley, Society of Women Engineers, and the Association of Blacks in Energy.

Training

PPL provides programs to improve employee skills in performing their present jobs and to qualify them for advancement opportunities. PPL also provides on-the-job training.

In 2015, "Managing People and Processes," a program for first-line supervisors trained forty-four (44) first line supervisor (30 from PPL Electric Utilities), and 29.5% of participants were diverse. The program focuses on 12 management skills critical to supervisory effectiveness. This year, the program added "Appreciating Differences" to help employees understand the misunderstandings that can occur when people make assumptions about each other based on superficial differences, and how to be an advocate for inclusion in the workplace.

"Leading People and Processes," a program for mid-level managers trained twenty (20) participants (15 from PPL Electric Utilities) and 40% of the participants were diverse. The program focuses on skills vital for success as a PPL leader.

Of the forty-five (45) PPL Electric Utilities first-line supervisors and mid-level managers participating in the MPP and LPP program, 27% were diverse participants.

PPL's Technical Training Center provides technical and safety training as part of its strategy to develop both management and union employees. Courses are delivered by a professional staff of instructors in a classroom setting and on-the-job. A sampling of subjects include: power plant electrical and mechanical maintenance, line and substation maintenance, heavy equipment operation, computer software applications and all applicable OSHA safety practices.

A variety of professional development training programs designed to develop and broaden interpersonal and personal effectiveness skills are available for all supervisory and professional employees. Workshops focusing on personal effectiveness, team building, leadership, emotional intelligence, conflict resolution, time management, and stress management, are a sampling of the types of programs available. In 2015, PPL Electric Utilities created a professional development curriculum for individual contributors based on job title and major responsibilities. This program has resulted in higher numbers of employees participating in development training.

PPL provides a Tuition Assistance Program for all regular, full-time employees to develop job-related knowledge and skills. Under this program, employees may enroll in degree programs offered by accredited educational institutions. PPL reimburses 100% of tuition for eligible courses of study.

Promotion

Most salaried positions below the level of General Manager and Director are considered for internal posting. In certain circumstances, i.e. developmental rotation assignments or succession planning, certain positions are not posted. Each manager is ultimately responsible for the selection of people. The manner in which each manager fulfills this responsibility is an important part of the manager's overall performance.

In PPL Electric Utilities in 2015, there were seventy-four (74) non-union promotions in various job groups. Of these, thirty (30) were females and six (6) were minorities.

PPL's EEO philosophy applies equally to union and non-union employees, and the Company includes a non-discrimination clause in its Labor Agreements. Policies regarding promotion, demotion, layoff, or termination are clearly covered in the Labor Agreements between the Company and Unions. A copy of the contract is available online for all employees.

There are established lines of progression for jobs covered by the Labor Agreements, and employees advance into vacancies by seniority. Job vacancies above the entry-level and those that cannot be filled through the progression line are posted for internal bid or filled by an external hire.

Retention

PPL Electric Utilities management employees have individual development plans, which focus on continual personal and professional growth. Additionally, many employees participate in the Company's internal and external training programs.

As an effort to promote and foster inclusion, PPL Electric Utilities launched a pilot training workshop for EU human resources and senior leadership on the topic of unconscious bias and micro-inequities. Supervisors and Managers will participate in the workshop in 2016.

PPL's Business Resource (BRG) Leadership Roundtable and Business Resource Group (BRG) Steering Committees function as vehicles for expanding diversity awareness throughout the Company. These groups are comprised of 29 employees, including ten (10) executives. The BRG Leadership Roundtable and Steering Committee provide a forum to:

• Establish strategies and brand BRG's as teams with goals aligned to PPL's diversity and inclusion strategy.

© Review and support strategies that promote a workplace that leverage the talents of all employees.

• Promote diversity and inclusion across all employee groups. • Provide feedback on initiatives that promote diversity and

development. • Review the implementation of initiatives and their progress toward

attaining a more diverse and inclusive workforce.

The BRG Leadership Roundtable and Steering Committee charters nine (9) Business Resources Groups, whose mission in large part is to support and encourage diversity and inclusion at PPL, provide a means for employees with similar interests to work on projects and issues, offer personal and professional development opportunities and pursue community outreach. This year, PPL launched a ninth BRG for employees with diverse abilities (disabilities). Its executive sponsor is PPL Electric Utilities VP of Distribution Operations.

PPL's Gay and Lesbian BRG rebranded as FUSE, to include the Bisexual and Transgender community. FUSE worked with PPL to participate in the Human Rights Coalition's Corporate Equality Index, and for 2015, PPL received a rating of 95 out of 100 due to its culture and benefits that support the LGBT community. PPL's previous score was 65.

PPL's women's network rebranded as The Power Network, with a stronger focus on attracting, developing and advancing women. Their executive sponsor is Electric Utilities VP of Transmission and Substations.

PPL Vets also gained a new executive sponsor in Electric Utilities Regional Director of Operations. In 2015, the President of Electric Utilities turned over the role of executive sponsor for the Latino Employee Alliance for Diversity Business Resource Group to his VP of Customer Service.

In 2015, PPL held its first All-BRG Conference for 130 members of the BRG's. That event included a training presentation on un-conscious bias for all participants.

The list of PPL's 9 Business Resource Groups includes:

African American Business Resource Group Asian Connection for Employees Christian Business Resource Group FUSE (formerly known as the Gay and Lesbian Organization in the Workplace) Latino Employee Alliance for Diversity (LEAD) PPL Tomorrow The Power Network (formerly PPL Women's Network) PPL VETS REACH (Rallying Employees around Challenging Histories)

REPORT ON DIVERSITY TO THE PENNSYLVANIA PUBLIC UTILITY COMMISSION

PROCUREMENT SECTION

A

PPL Electric Utilities Corporation March 1, 2016

Procurement Section

Table of Contents

Page

Part 1 Summary of MWBE Program and Efforts 12

1a Internal Efforts 13 1b External Efforts 13 1c Subcontracting Efforts 13-14 1d Reporting 14

Part 2 Utility Procurement Diversity Report 15

2a Philosophy and Purpose 16 2b Corporate Policy 16 2c Roles and Responsibilities 17 2d Procurement Process 17

Definitions 2e Small Business Concerns 18 2f Small Disadvantaged Business Concern 18 2g Women-Owned Small Business Concerns 18 2h Veteran-Owned Small Business Concerns 19 2i Service-Disabled Veteran-Owned Small Business Concerns 19 2j HUBZONE Small Business Concerns 19 2k Disabled-Owned Small Business Concerns 19

PPL ELECTRIC UTILITIES CORPORATION SUMMARY OF MWBE PROGRAM AND EFFORTS

BACKGROUND

At PPL Electric Utilities Corporation ("PPL"), diversity planning applies not only to employment practices but to sourcing practices as well. PPL values diversity because its customer base is diverse and, therefore, it encourages participation in its sourcing programs by the broadest possible base of suppliers. PPL especially encourages inquiries from Minority/Woman-Owned Business Enterprises (MWBEs) not only because PPL takes its social responsibilities seriously, but because it also makes good business sense to do so. By expanding its potential sources of supply, PPL fosters the competitive process which can result in significant cost savings opportunities and improved quality. PPL's Supplier Diversity Program was developed in 1998 (Attachment A).

An external website:

httD://www.pplweb.com/wp-content/uploads/2014/11/4890-contractor-supplier classification form 2014.pdf

Helps us maintain supplier diversity information. PPL also identifies and invites contact from diverse suppliers by attending local and regional trade fairs for MWBEs.

Once a firm has been identified as a potential source of supply for PPL, interested firms are requested to complete a Contractor/Supplier Classification Form. The completed form is reviewed by buyer and user groups and then entered into the supplier database. Distinct codes are added to a firm's listing to indicate "Minority," Woman-Owned," "Small Business," or other specific categories. These indicators enable buyers to easily identify special characteristics when developing a bidders list for a particular solicitation. Objectives have been established to increase the number of bid opportunities provided to MWBEs.

In addition to the information provided in the supplier database after a potential firm has been approved, several other resources are available to buyers for identifying MWBEs. These include the GSA's www.sam.gov website; Doing Business with the Commonwealth of PA under PA Bureau of Minority and Women Business Opportunities; the Try Us National Minority Business Directory, a list of approved 8(A) (socially & economically disadvantaged) companies published by the Small Business Administration - Philadelphia District Office, and the Regional Minority Purchasing Council (RMPC). Firms listed in the directories or provided by the RMPC may be solicited by buyers prior to approval. If the MWBE shows an interest in doing business with PPL by either responding to the solicitation, or contacting PPL as a result of receiving the bid request, PPL will forward an application so that the firm may be considered for future solicitations.

INTERNAL EFFORTS

Use of MWBE suppliers is encouraged in the corporate credit card policies and procedures guidelines. Renewing awareness of the MWBE supplier program in sections of the corporation that buy numerous small dollar items locally can result in significant increase in sourcing opportunities with MWBEs.

The Supply Chain organization also maintains a website which includes a link to the "Supplier Diversity" Corporate Policy.

EXTERNAL EFFORTS

• Maintain a Supplier Diversity link on the PPL external Web for Supplier Diversity: http://www.pplweb.com/wp-content/uploads/2014/11 /4890-contractor-supplier classification form 2014.pdf

• Attended Mid-Atlantic Small Business Procurement Fair-Wilmington, DE.

• Attended Northeastern Pennsylvania (NEPA) Alliance's 2015 Government Contracting Showcase - Tannersville, PA.

• Attended annual Edison Electrical Institute Supplier Diversity Conference -Albuquerque, NM.

• Attended Lehigh Valley Meet the Buyers - Bethlehem, PA.

• Attended Eastern Minority Supplier Development Council's Procurement Conference and Trade Show - Atlantic City, NJ.

SUBCONTRACTING EFFORTS

Terms and Conditions on all Requests for Quote, Requests for Proposal, Purchase Orders, and Contracts contain language specific to the utilization of MWBEs. Examples of these terms and conditions follow:

Contractor shall use its best efforts to assure that Small, Small Disadvantaged and Women Owned Small Business concerns (SSDWOSBCs) are given equitable opportunity to compete for procurements resulting from this Contract. In this regard, Contractor shall comply with the requirements in 48 C.F.R. 52.219-8, which is hereby incorporated by reference.

13

If the total aggregate commitment hereunder exceeds $650,000, Contractor {unless Contractor is itself a small business concern) shall adopt a plan similar to the plan required in 48 C.F.R. 52.219-9, and shall establish and conduct, or maintain, a program that enables SSDWOSBCs to have equitable opportunities to compete as subcontractors or suppliers for procurements resulting from this Contract. In this regard, Contractor shall assure that known SSDWOSBCs are given equitable opportunities to compete for subcontracts, particularly by arranging solicitations for bids and delivery schedules so as to facilitate participation by those entities, maintain records showing procedures which have been adopted to comply with the provisions of this clause, and prepare periodic reports and cooperate in surveys as may be required by the General Services Administration or the Small Business Administration. Contractor agrees to submit reports electronically via eSRS or by using Standard Forms 294 or 295 to PPL annually with respect to its plan and to provide other certifications and documentation deemed reasonably necessary by PPL to show evidence of Contractor's compliance with all State and Federal rules and regulations relating to the use of SSDWOSBCs.

Contractor (except small business concerns) shall insert in any subcontract hereunder which may exceed $650,000, provisions that conform substantially to the language of this clause.

REPORTING

PPL's approved supplier database, containing a supplier's name, address, telephone number, and special indicators, is used by its Accounts Payable Department to issue payments. This system allows PPL to track payments to MWBEs and prepare summary reports of such payments on a quarterly basis. Goals and actual achievements of dollars spent with American Indian owned, small business, small service disabled veteran-owned, small woman-owned, small veteran-owned, HUBZone small business (SBA-certified and verified in SAM), small disadvantaged business, minority-owned, and disability-owned business are tracked using this system.

14

DATA AS OF

UTILITY SOURCING DIVERSITY REPORT PPL ELECTRIC UTILITIES CORPORATION

DIVERSE SPEND

T O T A L

S P E N D

S M A L L

B U S I N E S S

% SMALL

BUSINESS %

WOMAN WOMAN MWBE %

MWBE

DECEMBER 31,2015 $922,641,582 $ 115,203,414 12.5% $10,150,148 1.1% $4,551,260 .49%

'For 2015, Small Business Includes below:

Veteran-Owned Small Business (Non-Minority Owned) Historically Underutilized Business Zone Small Business Minority Owned Small Business Other Small Business ( )

TOTAL

$ 1,849,562 $ 0 $ 4,551,260 $ 108.802.591 $ 115,203,414

15

Attachment A

17

Attachment A

PPL ELECTRIC UTILITIES CORPORATION SUPPLIER DIVERSITY PROGRAM

Philosophy and Purpose

PPL is committed to encouraging cultural diversity and believes in providing equal opportunity to all suppliers, including diverse suppliers, i.e., small, minority-, women- and disabled-owned business enterprises. Through our Supplier Diversity Program, PPL seeks to encourage that maximum opportunity is provided to diverse suppliers who wish to participate in our procurement process.

PPL values diversity. The communities and customers we serve, as well as our employees, are diverse. PPL's commitment to the Supplier Diversity Program reflects our belief that efforts to assist diverse businesses will enhance their opportunities for success while providing PPL with needed materials and services at competitive prices.

It is our goal to include supplier diversity as an integral part of doing business, rather than by positioning it as a stand-alone program.

The PPL Supply Chain organization is responsible to administer, monitor, and report on the results of the Supplier Diversity Program. Supply Chain is responsible for coordination between suppliers and other personnel within PPL.

The Supplier Diversity Program operates in accordance with PPL Electric Utilities area-wide contract for electric service with the U.S. General Services Administration (GSA), and the Pennsylvania Public Utility Commission's (PUC) Utility Diversity Reporting Program. Both the GSA and the PUC requires companies, such as PPL, to develop programs to increase participation of diverse suppliers.

Corporate Policy

In general, it is PPL's corporate policy to:

• Provide all suppliers with fair and equitable opportunity to participate in the competitive process to contract for materials and services required by PPL.

• Ensure that PPL is provided with the best materials and services at the lowest evaluated life cycle cost.

• Increase utilization of diverse suppliers by proactively seeking these businesses and providing them with competitive opportunity.

• Promote mentor relationships between PPL buying personnel and diverse suppliers.

• Provide no premiums or set-asides for purchases from diverse suppliers.

Attachment A

Roles and Responsibilities

Supplier Diversity Program Administrator

• Establish corporate policy, procedures and annual goals

• Corporate-wide communication of program goals and results • Program performance monitoring and reporting • Develop internal programs to educate and train buying personnel • Develop outreach programs to locate and identify potential diverse suppliers • Act as liaison between PPL, suppliers, advocacy groups, and associations • Encourage and support mentor relationships between PPL buying personnel and

diverse suppliers • Assist diverse suppliers in their efforts to compete

All PPL employees involved in procurements

• Identify diverse suppliers and provide identification information to Supply Chain for inclusion in the supplier database

• Provide opportunities for diverse suppliers • Develop and advance mentor relationships with diverse suppliers • Utilize diverse suppliers in corporate card purchasing activities

Sourcing Process

PPL encourages inquiries from diverse suppliers for inclusion in our supplier database. Diverse suppliers should contact PPL and request to be a potential source of supply.

Competitive bid responses are evaluated and purchase orders and contracts are awarded based on lowest evaluated life cycle cost. Suppliers are expected to perform as promised and are evaluated based on PPL's standards for quality and service. Suppliers who are not awarded business based on a competitive solicitation may request feedback to help them improve future bid submittals.

Mentor relationships are encouraged between all PPL employees involved in sourcing and diverse suppliers. This mentoring initiative is focused on education in the areas of qualification requirements, formatting and presenting proposals, bid and contracting procedures, material and service requirements, and invoicing and payment schedules and procedures.

The Corporate Credit Card Program is another sourcing tool that allows users to buy small dollar materials and services from diverse suppliers.

17

Attachment A

Definitions

Small Business Concerns

The term "small business concern" shall mean a small business as defined pursuant to Section 3 of the Small Business Act and relevant regulations issued pursuant thereto. Generally, this means a small business concern organized for profit, which is independently owned and operated, is not dominant in the field of operations in which it is bidding, and meets the size standards as prescribed in government regulations.

Small Disadvantaged Business Concerns

The term "small business concern owned and controlled by socially and economically disadvantaged individuals" shall mean a small business concern which is at least 51% owned by one or more socially and economically disadvantaged individuals or, in the case of any publicly owned business, at least 51 % of the stock is owned by one or more socially and economically disadvantaged individuals. The U.S. Small Business Administration established that the net worth of an individual claiming economic disadvantage must be less than $750,000.

Socially disadvantaged individuals include Black Americans, Hispanic Americans, Native Americans, Asian-Pacific Americans, Subcontinent Asian Americans, and other minorities or individuals found to be disadvantaged by the Small Business Administration pursuant to Section 8(a) of the Small Business Act. The term "Native Americans" includes American Indians, American Eskimos, American Aleuts and Native Hawaiians. The term "Asian-Pacific Americans" includes United States citizens whose origins are from Japan, China, the Philippines, Viet Nam, Korea, Samoa, Guam, and the US Trust Territories of the Pacific, Northern Marinas, Laos, Cambodia and Taiwan. The term "Subcontinent Asian Americans" includes US citizens whose origins are from India, Pakistan and Bangladesh.

Women-Owned Small Business Concerns

The term "women-owned small business concern" shall mean a) a small business concern which is at least 51% owned by one or more women; or, in the case of any publicly owned business, at least 51 percent of the stock of which is owned by one or more women; and b) whose management and daily business operations are controlled by one or more women.

Attachment A

Veteran-Owned Small Business Concerns

A veteran is a person who served in the active military, naval, or air service, and who was discharged or released under conditions other than dishonorable.

To be a veteran-owned small business (VOSB):

• One or more veterans must own at least 51 percent of the business. If publicly owned, one or more veterans must own at least 51% of the stock.

• One or more veterans must control management and daily business operations.

• The business must meet the size standards as prescribed in government regulations.

Service-Disabled Veteran-Owned Small Business Concerns

A service-disabled veteran is a veteran with a disability that incurred, or was aggravated, in the line of active military duty.

To be a sen/ice-disabled veteran-owned small business (SDVOSB):

• One or more service-disabled veterans must own at least 51 percent of the business. If publicly owned, one or more service-disabled veterans must own at least 51% of the stock.

• One or more service-disabled veterans must control management and daily business operations. In the case of a veteran with a permanent and severe disability, the management and daily business operations are controlled by a spouse or permanent caregiver.

• The business must meet the size standards as prescribed in government regulations. •

HUBZone Small Business Concerns

A HUBZone small business is one that resides in an area designated as a historically underutilized business zone and meets U.S. Small Business administration criteria, including being owned or controlled by one or more U.S. citizens and at least 35 percent of its employees must reside in a HUBZone.

Disabled-Owned Small Business Concerns

A disabled-owned business includes those businesses whose owners are disabled under the definitions of the federal Americans with Disabilities Act. This includes non­profit agencies or programs that promote the interests of the disabled or agencies that have a work force of 51 percent or more disabled workers.

ORIGIN ID:ABEA PAUL E RUSSELL PPL CORPORATION 2 N9TH STREET

(610)774-4254

ALLENTOWN. PA 18101 UNITED STATES US

SHIP DATE: 01MAR16 ACTWGT: 1.00 LB CAD: 1O4308816/1NET3730

BILL SENDER

TO ROSEMARY CHIAVETTA, SECRETARY PA PUBLIC UTILITY COMMISSION 400 NORTH ST COMMONWEALTH KEYSTONE BUILDING HARRISBURG PA 17120

(717) 772-7777 INV: PO

REF:PER20573426&ai0

DEPT:

TRK# I 0201 7757 6957 8868

WED-02 MAR10:30A PRIORITY OVERNIGHT

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