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2011 Utility Payment Conference

Case Study: Best Practices and Multi-Payment Channels – PGE’s Innovative

Programs & Initiatives

Tuesday, Sept 20th 10:45 – 11:45

Presented by Wes Friesen, Manager – Revenue Collection & Community Offices for Portland General Electric

(Note: the views expressed here are Wes’s and not necessarily PGE’s; Also, PGE does not endorse any vendors or suppliers)

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Company Overview

Portland General Electric

Oregon’s largest utility

Headquarters is located in Portland, Oregon

Fully integrated electric utility that serves 825,000 residential, commercial and industrial customers

PGE is a recognized leader in the utility industry and has safely and dependably powered northwest Oregon since 1889

PGE’s Print & Mail Team

Print & Mail Services InfoPrint 5000 Color Printers; Pitney Bowes Inserters (APS, FPS); other

print and mail related equipment and software

Only electric utility in the nation that is MPTQM certified

Have earned multiple national awards for Excellence (e.g. 2008, 2009, 2010 earned NAPL’s Gold/Silver Awards)

100% Same Day production of bills for over 9 straight years, with zero significant errors!

Maximize postal discounts ($3m savings) via selective/intelligent inserting and automation/sortation work sharing; early adopter of Intelligent Mail BarCode

Customer Bills (June 2011)

Paper Bills = 742,977 (87.7 %)

E-Bills = 103,977 (12.3%)E-Bills are growing in number and %; paper bills are relatively flat in numbers

Multi-Channel Bill Redesign initiative in process (moving Bills & related communications from very good to great)

Paper comes from PGE Customer Boise Cascade, using sustainable fiber sources: construction/lumber mill wood waste; re-cycled paper; sustainable and certified tree farms/forests

Environmental Certification (SFI) in place for envelope & forms vendors; certification in process for print & mail services SFI certification

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Payment Departments

Community OfficesWalk-in payments

Electronic Billing and PaymentsElectronic and Third Party

Cash RemittanceMail-in Payments

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Payment Trends

0%

10%

20%

30%

40%

50%

60%

70%

2005 2006 2007 2008 2009 2010

Mail-In

Electronic

Walk-In

PGE’s Cash Remittance Team

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Cash Remittance

Processes all mail-in payments for PGE Light and Power Agency Non-Light and Power

Process 80+% of payments ARC

Implementing Image Cash Letter for remainder

Hardware: Utilize OPEX 7.5 and 51s w/3690i Burroughs Quantum's

Software Running on a UNISYS Lockbox platform

NOTE: PGE does not endorse any vendors/suppliers

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Cash Remittance

Marksense• Redeem PGE Gift Cards

• Address changes/customer comments

Bangtail envelopes for promoting PGE programs

One Check and Consolidated Bill payments

Archive of Bill Stub and Check Images

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ISO 9001 Certification

Background:

Goal is Continuous Improvement

Became Certified in 2009

111 Procedures, 85 Forms and full-day

Audits Benefits:

Vendor reviews resulted in better

service and relationships

Clear training setup

Changes tracked to procedures

Communication of changes made more

quickly

Pride in meeting goals and passing

audits

Changes:

Quarterly Review of Vendors/Suppliers

Issues Database

Documented Procedures

Quality Manual

Change Management System

Training Manual

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Agency Portal

Allows Agencies to view PGE customer’s

account with permission from customer

Able to view any commitments previously

made on an account, view account balances,

and create a commitment on the account

Reduces calls and call times for both PGE and

agency personnel

Automatically deletes commitment from

account once money is posted

Huge success with Agencies – high

satisfaction!

PGE’s Electronic Bills & Payments Team

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Electronic Bills & Payments

Express Pay Locations

VCOM Kiosks

Bill Matrix

Mobile Payments via Text Message

Automatic Monthly Payments

PGE IVR check payment

Online PaymentsYou are enrolled in

Auto Pay

Express Pay Locations

PGE’s Express Pay stations let you pay your PGE bill at grocery stores, pharmacies and other convenient places.

PGE has contracted with Fidelity Express; transitioning to Western Union.

There is a $1.50 convenience fee charged for each payment made at an Express Pay location. The $1.50 convenience fee must be paid

in cash.

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VCOM

Advantages For Customers:

Convenient Locations

Customer can use the system in English or Spanish

Pay 24 hours a day, 7 days a week depending on the store location

Ability to pay by cash or debit card (no credit cards or money orders)

For PGE:

Provides another convenient payment option for customers

Very low cost to process payments because the customer is paying a $1.50 fee for the service and completing the transaction on their own.

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BillMatrix

Advantages For Customers:

Customers can use the system in English or Spanish

Payments can be made via the web from a link on PGEs website or over the phone

Customers can use VISA, MasterCard or Discover card, as well as any ATM / debit card that displays the StarSM System logo. Note: There is a $600 maximum per transaction

For PGE:

Provides another convenient payment option for customers

Very low cost to process payments because the customer is paying a $3.95 fee for the service and completing the transaction on their own.

 

 

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A COMPANY OF

Mobile Options

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Other Checking Account Options

Automatic Monthly Payments Auto Pay

PGE IVR check payment In house w/no fee

Online Payments Recurring

One-time

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PGE’s Community Offices Team

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Community Offices

• Processes walk-in and drop box payments at 7 different locations

• Created PGE Gift Card Program

• Process MasterCard credit and debit cards with no fee to customer

• Started processing checks via Remote Deposit in February 2008; BOC in 2009

• Electronic surveying of customer experience

• Elder Friendly Certified Offices

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Community Offices

Remote Capture/BOC

Checks are captured and sent to the bank along with MICR info from

the checks

Eligible items are converted to ACH

Reduction in bank fees

Bank deals with Administrative returns

Slight reduction in float time of checks

Payback period was less than 6 months

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Gift Cards

History:

Before 2007, PGE had a Gift Certificate program

Had to know address or PGE account number

Red tape did not allow PGE reps to give out personal information or

verify amount owed

Money went directly on account and card was sent to PGE customer

informing them of gift applied to account

Not a very popular program

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Gift Cards

Challenges:

Public Utility Commission’s rule on 1 year “suspense” payment rule

How to buy or redeem gift cards

Tracking redemption of cards

Cost of gift cards

Reconciling Redeemed/Paid accounts

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Gift Cards

In 2007: 979 cards sold = $36,124

In 2008: 1,574 cards sold = $63,720

In 2009: 2,539 cards sold = $76,829

In 2010: 1,499 cards sold = $71,653

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Credit Cards

Currently receiving MasterCard payments with no fee in Community

offices

VISA and MasterCard can be used through Bill Matrix with a $3.95

fee

Customer feedback supports wanting more credit card options

Challenges in getting approved in revenue requirements; looking at

trying to get residential fees covered in 2013 test year

Looking at future opportunities on PGE website

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Future Plans

Real-time (More Frequent) Payment Posting

Quick Response 2D barcode (payments, marketing)

Pre-paid metering

Credit Cards accepted on PGE website for residential customers for a small fee or free starting in 2013 (free only if covered in rates)

Company focus on Payments

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Questions

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Thank you