Owenton HSE PresentationOctober 13, 2011Itron Inc.Carroll Sams Greenwood, SC

Agenda What are our HSE goals?

> Our linkage to Corporate Sustainability Goals Q3 accidents

> Current metrics HSE Annual Planning Requirements

Review annual plans for EMS and OHSMS Annual reporting requirements and External audits

> Submitted reports & audit corrective action updates Changes in facility including sub-metering status

> 2011 improvements Accomplishments

> Linked to HSE goals

Our Sustainability Goals

2010 – 2011Compile and analyze Itron’s worldwide energy and water footprint at all major facilities. Raise awareness of Itron’s sustainability initiatives and expectations among our employees.

2012Achieve LEED certification for corporate headquarters.All US manufacturing sites are ISO 14001 certified.

2013Reduce US occupational injury/illness rates by 15%.

2014All major worldwide manufacturing sites are ISO 14001 certified.

Itron was named by Seattle Business magazine as one of Washington state’s top 50 green companies at the 2011 Green Washington Awards. The Green Washington Awards identify and honor those companies that are demonstrating an extraordinary commitment to making their businesses sustainable.

2011 Accident Review

OHSA REPORTABLE ACCIDENTS - 2011

» No Q1 2011 Accidents» (1) Q2 2011 Accident

» No Q3 2011 Accidents

HSE Annual Planning Requirements

ISO 18001 SAFETY MANUAL CREATED & RELEASED» SM 4.1-01 General – Occupational Health and Safety Management System Manual» SM 4.2-01 OH&S Policy & Guiding Principles» SM 4.3-01 Planning» SM 4.3-02 Legal and other Requirements» SM 4.3-03 Objectives and Programs» SM 4.4-01 Implementation and Operation» SM 4.4-02 Competence , Training, and Awareness » SM 4.4-03 Communication, Participation and Consultation» SM 4.4-04 OH&S Management System Documentation» SM 4.4-05 Safety Document Control» SM 4.4-06 Operational Control» SM 4.4-07 Emergency Preparedness and Response» SM 4.5-01 Performance, Measurement and Monitoring » SM 4.5-02 Evaluation of Compliance» SM 4.5-03 Incident Investigation, Nonconformity & Corrective and Preventive Action» SM 4.5-04 Safety Management System Records» SM 4.5-05 Safety Management System Audit» SM 4.6-01 Safety Management Review

EMS Audit ScheduleOHSMS Audit Schedule• All current through September 2011

Annual Reporting Requirements and External Audits

EPCRA 313 REPORT AND CORPORATE HSE AUDIT

» Form R Report• Awaiting Davis & Floyd

Sampling in Q4 2011 for Copper

» 12 open items from July 2011 HSE Audit Code 2 and 3 items• All code 1 completed.• Responses given for all

code 2 and 3.• I need to sit with Facility

Manager and review some of the requested items.

• I still have some items that must be completed.

Install vent line on 500 gallon LP Gas Tank located outside maintenance – Run vent from pressure relief valve on tank through roof and goose neck down.

NFPA 58 2008 6.11.4 Internal Valves Violation: At least one remote shutdown station for internal valves in liquid service not < 25’ or more >100’ from the liquid transfer point. This shall be retroactive to all internal valves required by the code.

FIRE MARSHALL AUDIT – DUE BY JULY 2011

500 USG Propane Tank [forklifts] 2,500 USG Propane Tank

Hazardous Waste Oil/Coolant Separator

» Waste Oil/Coolant Drain-off » Oil/Coolant Separator

HAZARDOUS WASTE OIL/COOLANT SEPARATOR

$2,100 less oil pick up$2,354 less coolant purchase$4,454 savings to date

$4,454 savings to date [6 months]

Oil

Coolant

Sub-metering project status - completed

SUB-METERING PROJECT» Water sub-meter operational » Electricity sub-metering operational

– Data must be transferred to MV-Web

Air Compressor Room s/n 88833051

Wall next to new switchgear1.Incoming power s/n 888330532.Chiller s/n 8883305454

Engineering

http://172.23.18.158/status.htmlhttp://172.23.18.205/status.htmlhttp://172.23.18.206/status.html

Air CompressorIncoming PowerChiller

Sustainability Improvement - QIP Team

SUSTAINABILITY IMPROVEMENT - QIP TEAM•TEAM: Deron Johnson, Howard Berry, Pickens Polatty, Kathy Maez, Chuck Strawn, Curtis Fennell

–Tory Acker [Leader]

–Carroll Sams [Facilitator]

–Paul Brooks [Sponsor]

•Problem: Itron Corporate is promoting “Sustainability” or Itron’s ability to achieve and maintain its objectives in the long term. Our 8 green wastes team has met its objectives for 2010. New HSE focus is energy and water consumption for 2011.

•GOAL: We shall reduce consumption of energy and water by a combined total of 5% by the end of Q4 2011. We shall monitor consumption and/or waste generation of the 8 green wastes each month in 2011, with focus on energy and water [electricity, fuel oil, propane, water] .

•ACTION ITEMS:.

•Evaluating new water meter on Cooling tower water to lower consumption

•CAR written for gas heater project to change from fuel oil to natural gas heat.

2010 Dollars 2011 dollars Improvement$105 thousand $81 thousand -23%

SUSTAINABILITY QIP TEAM’S RESULTS IN 2011

» 23% Normalized Reduction » January – August 2010/2011

2011 SUSTAINABILITY SCORECARD

2011 Itron Greenwood Sustainability Scorecard

Category Sub-Category Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.

Energy Consumption  109,812 [15th to 15th Bill]          

  Electricity (KWH) 109,812 114,812 85,812 94,812 94,812  138,812  134,812 162,812    

  Natural Gas (Therms)          

  Natural Gas (Cubic Feet)          

 #2 Diesel Fuel Oil (Gallons) 7,500 0 0  0 0  0  0 0    

  Propane (Gallons) 0 0 27 750 0  0  0 0    

Water            

  Domestic (Gallons) 33,428 44,135  45,628 68,820 74,057  159,325  128,664 154,836      Irrigation (Gallons)          

ENERGY [BTU/$ Revenue]• Installed 12.5 ton & (2) 10 ton HVAC units [16/13/17 years old replacements]• Evaluating Natural Gas replacement system [$3,700 per year savings (14.6 ROI) up to $23,500 per year (2.3 ROI)]WATER• Found sprinkler valve leaking after quarterly test [30 days]• Found chiller float was stuck running full time [located leak in piping in yard]• Evaluating reducing chiller sewer charges by metering incoming chiller water [subtract incoming from water usage bill]

27% Reduction

6% Reduction

17% Increase

Presentation Review

Agenda What are our HSE goals?

> We are concentrating on energy and water in 2011 Q3 accidents

> (1) accident YTD in 2011 HSE Annual Planning Requirements

2011 EMS and OHSMS requirements are on track and ISO 18001 is being developed Annual reporting requirements and External audits

> Form R response still left to complete and (12) EMS HSE action items Changes in facility including sub-metering status

> 2011 LP Gas improvements and hazardous waste generation reductions> Sub-metering project completed

Accomplishments> 2011 sustainability initiatives - 23% improvement

THANK YOU

www.itron.com

Carroll Sams - GreenwoodMatt Marron & Jeff StewartMike MasonMike ReeseChris SmithPaul Anderson