Empowering Utilities With Technology & PeopleBenefits of Technology4. Benefits of Technology 5. Challenges5. Challenges 6. Technology -6. Technology -FutureFuture October 18, 2006

Empowering Utilities WithTechnology & People

Joe ThomasAssociate Vice President & General Manager – Client Fulfillment

The United Illuminating CompanyOctober 18, 2006

2October 18, 2006

Joe ThomasThe United Illuminating Company

Agenda

1. Company Profile1. Company Profile

2. Technology – Past2. Technology – Past

3. Technology - Present3. Technology - Present

4. Benefits of Technology4. Benefits of Technology

5. Challenges5. Challenges

6. Technology - Future6. Technology - Future

3October 18, 2006


Company Profile320,000 Accounts288,000 Residential, 35,000 TOU32,000 Comm./Indus.20% Delinquent40% Indoor Meters

726,000 People – 21% of CT7 Major Universities and Colleges1/3 Population Transient

New Haven – Bridgeport, CT17 Towns in 330 Square MilesIncorporated in 1899CT Deregulated in 2000Wires Only Co. - No Generation

September 19, 2005 44October 18, 2006


Process Based Organization

5October 18, 2006


Fulfill Requests & Acquire Revenue

Customer

ClientRelations

Center

Field DispatchOutgoing

Orders

Field Service

Field MeterServices

FieldCollectionActivities

NonRegulated

ServiceRequests

Web-based Customer EnhancedMetering Services

Retail Access Settlement Data

Customer Meter Information

Billing

PaymentProcessing

Remittance

Income

Credit andCollectionActivities

PaymentsCustomer Care

CustomerBillingField Services

Customer UsageInfromation

(Cellnet)

CONNECT SERVICE

Client Relations Center (CRC)

Credit & Collections (COLL)

Standard Field (SF)

Revenue Meter Systems (RMS)

Billing (B)

Legend

6October 18, 2006


Fulfill Requests & Acquire Revenue

121,994Work Orders – Client Fulfillment

22,000Work Orders – Electric System

320,000Monthly Invoices

110,000,000Daily Meter Reads

414,279Interactive Voice Response Volume (IVR)

804,704Customer Calls to Call Center

Annual AverageActivity

7October 18, 2006


Technology Drivers – PastCustomer Expectations

The Demand for Information – Usage & Account ManagementFlexible Billing ModelCredit CardNew Products & Services

Industry DriversDeregulated Energy / Delivery ModelNAICS Code (Old SIC Code Update)Supplier Rate Implementation – 200 to 1,200 New RatesFederally Mandated Congestion ChargesConservation & Load Management Bond Securitization

Inflexible TechnologyUnsupported SystemsIslands of Information – Multiple InterfacesCostly to Maintain

8October 18, 2006


Technology - Present

2002

SupervisoryControl and

DataAcquisition

ACS

ScadaBlue

Pumpkin

2002

Call CenterWork

Scheduler

CellNet

2001

NetworkMeter

ReadingSystem

2002

WorkSuite

STORMSSonet

Ring

2003

FiberBackbone

GISSCADA

FA

Ongoing

EmergingTechnology

9October 18, 2006



Voice

Over IP

February2004

VoiceOver

Internet

SAP

November2003

CustomerInformation

system

May2004

CallCenter

Disaster Recovery

Center

IT Data

CenterSPL

Mobility

November2003

FieldAutomation

WirelessMobile

Dispatch

Aspect

IVR

November2003

InteractiveVoice

Response

Rate A

Load

Control

September2003

OffPeakWaterHeaterControl

Customer Interaction Center

10October 18, 2006



Theft

Detection

October2006

Theft DetectionAlgorithms

BLP

November2006

Remote Disconnect

Nexus

BillPrism

December2006

Online Customer

Energy and Bill Mgmt

Virtual

Hold

July2006

VirtualQueuingSolution

RightNow

Service

April2006

Knowledge Base &

CustomerSelf

Service

11October 18, 2006


Benefits - OperationInformation Availability and Access

Robust Information and Analysis CapabilitiesInformation Available to All End UsersAutomated Outage ReportingCustomer Information Systems are Available 7 x 24

SAPField Automation (FA)Interactive Voice Response (IVR)

Enhanced Billing/Invoice Edits/FunctionalitySupplier Management – Electronic Data Interchange (EDI)New Rates/Suppliers due to DeregulationRate Analysis for Call Center (What – If – Billing)Virtual Disconnect ProcessRemote Disconnect ProcessIdentity Theft Risk MitigationTheft of Service DetectionGround Level Inspection (GLI)

12October 18, 2006


Benefits - CompanyMinimal Customization

Allows for industry wide upgrades - All stakeholders will benefitReduced future upgrade cost due to minimal customizationSupports changes for deployment of new products and services

Order Entry / CompletionImproved office / field workflow and informationDrop down options available to minimize errorsImproved workflow assignments

Improved Business ContinuityMobile Computing – Anytime, Anywhere, Any PlaceDisaster Recovery

AccountabilitySignificantly Improved Audit TrailIncreased Billing ControlsImproved Customer Data Accuracy

13October 18, 2006


Benefits - CompanyEnergy Policy Act of 2005

Daylight Savings TimeNet Metering OfferingsTime-of-Use RatesDemand Response ProgramsSmart Metering TechnologyData Presentment for Conservation and Awareness

Flexible Billing/Accounting ProgramsDaily Sales of EnergyReal Time Billing (hourly) for Large Commercial

and Industrial CustomersReduced DSO and Increased ProfitabilityEasier Daily and Monthly BalancingSarbanes-Oxley Compliance

14October 18, 2006


Benefits - CompanyUnbilled Revenue

Day 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Billing Cycle 1 - Closes Jan 2

Actual; Billed


Actual; Billed

….. ….. ….. ….. ….. ….. …..


Estimated; Unbilled


Estimated; Unbilled

Estimated; Unbilled

Actual; Billed

Actual; Billed

For the January 31st month-end close, about half the revenue is actual, and half is estimated. (The billed and unbilled totals are derived from the sum of data from the 20 billing cycles.)

New methodology eliminates unbilled estimates by receiving actual reads at end of month for every meter.

September 19, 2005 15

Benefits - Call CenterLoad and Usage AnalysisPinpoint when and possibly why a customer’s usage increased

Bill ComparisonAccurately explain a sudden bill increase

Quick GuideExplain estimates, budget billing, and other billing issues that confuse customers

Bill History (side by side)Reassure a customer who believes their bill is out of line with bills from past years

High Bill Resolution

AlertsQuickly identify the most important billing issues

Customer OffersTargeted guidance on programs to promote

16October 18, 2006


Benefits – Call CenterVirtual Queuing – Managing Call Volumes

17October 18, 2006


Benefits – DispatchService OrderStatus

Window

SchedulingEngine

Crew and Order

Mapping / AVL

Crew Status Window

18October 18, 2006


Benefits - CustomerDaily Reads - kWh

19October 18, 2006


Knowledge Base & Customer Self ServiceEasy to Use

Search

Provides Easy Escalation Channel

Order Based on Historical

Usefulness

Benefits - Customer

20October 18, 2006


Benefits - CustomerWhat If Bill – Bill Comparison

September 19, 2005 21

Benefits - Customer

Account Summary

Promote TOU and Conservation

programs

How did my home/facility use energy?

Leverage NMR data to provide load analysis.

How did weather, rate, appliance or lifestyle changes affect my bill?

22October 18, 2006


Benefits - Customer

0.0

0.1

0.2

0.3

0.4

0.5

0.6

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Hour

kW D

eman

d

70 Watt Lamp

175 Watt Lamp

250 Watt Lamp

100 Watt Lamp

150 Watt Lamp

1000 Watt Lamp

Average Measured Streetlight Energy

23October 18, 2006


Revenue ProtectionRevenue Protection Drivers

Rising Energy CostsObligation to Ratepayers, Stockholders, Suppliers, and EmployeesImproved Data and Theft Detection TechnologyIncrease in Unbilled Usage as a Result of Virtual (Soft) Disconnects

It Makes Good Business SenseHelps Prevent Safety Hazards for Public Service Agencies High Return on Investment (ROI) – 245.14% 2006 (YTD)Protects Against FraudDetects Theft OccurrencesAssists in Reducing Uncollectibles

What Needs to be Done?Need to Focus on Revenue Protection (Staffing, Data Mgmt, Remote Disconnect)Need for Legislative and Regulatory ChangesNeed to Share Best Practices Among UtilitiesSupport & Participate in NURPA & IURPAIncrease Revenue Protection Staffing Levels

24October 18, 2006


Revenue Protection

0

10

20

30

40

50

60

70

3/15/2005

3/17/2005

3/19/2005

3/21/2005

3/23/2005

3/25/2005

3/27/2005

3/29/2005

3/31/2005

4/2/20054/4/20054/6/20054/8/20054/10/2

0054/12/2

0054/14/2

0054/16/2

0054/18/2

0054/20/2

0054/22/2

0054/24/2

0054/26/2

0054/28/2

0054/30/2

0055/2/20055/4/20055/6/20055/8/20055/10/2

0055/12/2

0055/14/2

005

kWh

Pining on Weekends – No Power Outages

Sample Usage of Pinned Disk (2 Month Period)

25October 18, 2006


Revenue ProtectionEstablish Detection

Parameters

Identify Virtual vs. Physical

Disconnect

Usage Since Service

Disconnected

26October 18, 2006


Revenue Protection

Consumption History37 Kathy Lane, Ansonia

0

1000

2000

3000

4000

5000

6000

7000

8000

Oct-9

2Apr

-93

Oct-9

3Apr

-94

Oct-9

4Apr

-95

Oct-9

5Apr

-96

Oct-9

6Apr

-97

Oct-9

7Apr

-98

Oct-9

8Apr

-99

Oct-9

9Apr

-00

Oct-0

0Apr

-01

Oct-0

1Apr

-02

Oct-0

2Apr

-03

Oct-0

3Apr

-04

Oct-0

4Apr

-05

Check Meter Billing Meter

KWHRS

Exhibit 4

27October 18, 2006


Revenue Protection

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

$10,000,000

2000 2001 2002 2003 2004 2005 Aggregate

Aggregated Revenues 2000-2005

2005 2004 2003 2002 2001 2000

$9,299,000

28October 18, 2006


Overall Benefits

CustomerChoice

CustomerBilling

ImprovedProductivity

BetterInformation

Customer Marketing

Major Industry Drivers & Benefits Improved

Processes

RevenueProtection

Customer Care

29October 18, 2006


Future Technology UtilizationCredit Card Payments

Phone, Web, Field

Outage Management SystemImproved Power Restoration ProcessEnhanced Outage Information & Accessibility

Street Light Management SystemAutomate Street Light Failure DetectionImprove Asset Management & Location of Assets

Increase Customer Self Service FunctionalityConnect Process – Contractor/Inspector/HomeownerFull Service – Move In/Move Out, Update Acct Information, etc.

Increase Conservation InitiativesTT, Education, Solar

Improve Transformer Load Analysis

30October 18, 2006


Technology Platform

IVR

Customer ServiceCIS

Network Meter Reading

Credit Card Payment

Online CustomerSelf Service

Remote Disconnect

Outage Management SystemField Automation

&

Virtual Queuing

31October 18, 2006


Questions

Customer Service

People PersistencePlanning innovation

Integration

Documents

Empowering Utilities With Technology & PeopleBenefits of Technology4. Benefits of Technology 5. Challenges5. Challenges 6. Technology -6. Technology -FutureFuture October 18, 2006