Lori Beck, Director, Product Management

1. Utility Payment Conference Mobile Payments: Giving Customers More Choice and Ease of Payment Using Text Messaging Nikki Lappin Remittance Processing Supervisor Lori Beck, Director, Product Management

2. Agenda 1. Payment Vendor Solution 2. Northwestern Energy Overview 3. Pay by Text Implementation and Results 4. Marketing and Best Practices 5. Next Steps

3. Payment Solutions Payment Channel Payment Type Web Banking One-Time Consumer Utility Real-Time or Batch Posting Funding Reporting Noting One-Time & Recurring Data Centers Biller Direct © 2010 Western Union Holdings, Inc. All Rights Reserved. All trademarks, service marks, and trade names referenced in this material are the property of their respective owners.

4. Money Mind Set Index • Quarterly study first created in Q4 2008 to understand and longitudinally track how current economic conditions affect consumer behaviors and emotional mindset regarding bill payment, debt, and personal finance issues • Online quantitative survey • 3,000 targeted respondents based on representative proportions of geography, gender, age, income and ethnicity as compared to the overall US population • Plan now for Gen Y payment preferences1 • Gen Y’ersprefer less costly self-service channels like online banking, ATMs and mobile banking • 2 in 5 Gen Y consumers have already tried mobile banking • Mobile banking security less of a concern • More likely to carry unlimited wireless phone plans • More likely to own a Smartphone (Smartphone owners are the stickiest mobile bankers) 1Gen Y Mobile Banking, by Javelin Strategy & Research, April, 2009 4

5. Text Messaging • SMS (Short Message Service) is most commonly referred to as Text Messaging • Text messaging allows a message to be transmitted from one cell phone to another • As of March 2010, 74% of the U.S population has a mobile phone • The number of smart phones (iPhone, Droid, Blackberry) are up from 20 to 27% of the mobile population. Smart phone users are heavy users of text messaging.

6. Text Messaging, Web Browsing and Downloading by Segment Text Messaging is the most common use across all consumers

7. Text Message and Data Plans The number of consumers signing up for unlimited plans is increasing

8. How Bill Payment is Changing • Consumer enrolls via branded IVR or Internet site – no sensitive information is transmitted via text • Biller provides service provider a customer (MAM) file containing customer account number, due date and amount owed • Text Message can be sent a configurable number of days before due date • Consumer replies to the text message to pay their bill Pay by Text servicesallow consumers to easily initiate their payment using their phone's text messaging service based on payment information entered online

9. Pay by Text Consumer Experience Consumer enrolls via IVR or Internet Consumer enters cell phone number and email address (optional) into IVR or Internet Consumer enters payment information into IVR or Internet Consumer receives text message on cell phone when payment is due Consumer replies to text message to complete payment

10. Participating Carriers When the consumer enrolls in the Pay by Text service, a verification is done on the mobile number to confirm the carrier. If the carrier is supported, the plan is saved to the database.

11. Pay by Text Sample Messages Enrollment Complete Bill Alert. Welcome, you are enrolled. Txt STOP to end, HELP for info or 866-316-3360. Msg freq dpnds on accnt setngs. Std msg chrgs apply.. STOP Bill Alert. 866-316-3360. You will no longer receive any messages from WU to your phone.. Payment Due • Bill Alert.NWE bill $XXX.XX+$X.XX fee due. Rply YES NWE to cnfrm processing as u specified. 866-316-3360 if dontrecvecnfrmmsg.Txt STOP 2 end. HELP • Help: Bill Alert. For info 866-316-3360. MsgFreqncydpnds on accntsttngs. Msg&data rates may apply. Text STOP to end.

12. Pay by Text Reporting Sample Report Pay by Text enrollments and payments are available for viewing along with all of your other payments through our current reporting tools

13. Non-Utility Case Study • Pilot launched in May of 2009 • Marketing used: CSR fact sheet and Internet messaging • Data shown is through September of 2010 • 50% of PBT consumers using the Extranet shifted to the Internet as their channel preference. • For those receiving notifications, the Internet is the primary channel used for payment. • ACH adoption is greater than other payment types. Findings Enrollment • Almost 6000 consumers have signed up • By Payment Type • ACH: 2746 • Credit Card: 1919 • ATM: 1277 • By Channel • Internet: 4546 • IVR: • A large number of consumers are using this as an alerting process and then going to the IVR or Internet to pay 13

14. Agenda 1. Payment Vendor Solution 2. Northwestern Energy Overview 3. Pay by Text Implementation and Results 4. Marketing and Best Practices 5. Next Steps

15. Northwestern Energy Overview 15

16. Northwestern Energy Payment Goals • Provide additional self service payment options (targeting the younger generation) • Experience (We wanted to gain experience while we had the opportunity with SMS, we felt that by doing this project we could gain experience using a smaller carrier list. We feel that this option will grow and more carriers will be added). • We had a great deal of concern about Verizon not being a carrier but felt it was best to move forward with smaller carriers • Reduce mail payments which reduces costs • We believe the more mail costs increase the more electronic payments will increase • With reduced mail payments and increased electronic payments we believe when we need to purchase knew equipment that our cost for replacement will be much lower • Over the past 5 years NorthWestern Energy has seen a yearly 2% decrease in mail payments and an increase with electronic payments 16

17. Agenda 1. Payment Vendor Solution 2. Northwestern Energy Overview 3. Pay by Text Implementation and Results 4. Marketing and Best Practices 5. Next Steps

18. Implementation Process Launched on 7/29 IVR and Internet were modified to include Pay by Text enrollment Product certified with wireless carriers so no 3rd parties were involved in implementation Thoroughly tested with employee enrollments during UAT cycle Added same day online banking payment option Added American Express as a payment type 18

19. Northwestern Energy Pay by Text Data • The payment type preference is ACH. • Channel with most adoption is IVR. • There is not enough data to show consumer trends and behavior changes. Payment Types Enrollment Findings • All payment types available on the IVR and Internet are available through Pay by Text • ACH • Credit Card • ATM • By Payment Type • ACH: 112 • Credit Card: 49 • ATM: 4 • By Channel • Internet: 21 • IVR: 144 19

20. Agenda 1. Payment Vendor Solution 2. Northwestern Energy Overview 3. Pay by Text Implementation and Results 4. Marketing and Best Practices 5. Next Steps

21. Available Marketing Touchpoints Web Messaging Email Messaging IVR Messaging Envelope Messaging “Say goodbye to envelopes and stamps! With our web and phone bill payment options, paying your ABC Company bill is quick and easy. Press 4 now to be transferred to our automated payment system or go to www.abccompany.com and select ‘Pay My Bill’.” Statement Messaging

22. Best Practices • Employees were encouraged to enroll • Where an email address is available, each new enrollee also receives a confirmation enrollment email in addition to the text message • Notify consumers in multiple ways about new offering. We have utilized the following marketing options to date: • Statement Messaging • Web Banner • CSR Promotion 22

23. Future Marketing Campaign A new campaign has been created Use existing consumer communication touch points: Web Banner Statement Messaging Payments Brochure Newsletter Article CSR Q&A Flyers/Posters 23

24. Agenda 1. Payment Vendor Solution 2. Northwestern Energy Overview 3. Pay by Text Implementation and Results 4. Marketing and Best Practices 5. Next Steps

25. Next Steps • Add Verizon as a supported carrier • Continue marketing to increase adoption • Research additional mobile channels

26. Pay by Text Benefits Summary Additional self-service payment channel Convenient option for consumers on the go Simple enrollment process Easy for consumers to use Cutting edge service

27. Thank you! Lori Beck Western Union Global Business Payments 212-361-5655 lori.beck@westernunion.com Nikki Lappin Northwestern Energy 406-497-3210 monique.lappin@northwestern.com ©2010 Western Union Holdings, Inc. The WESTERN UNION name, logo and related trademarks and service marks, owned by Western Union Holdings, Inc., are registered and/or used in the U.S. and many foreign countries. This material is confidential and is proprietary to Western Union and is not to be reproduced, disclosed, or used except in accordance with program license or other written authorization of Western Union. Any use, copying, manipulation, or reproduction of Western Union trademarks, logos, or material created by Western Union, its subsidiaries, affiliates or its business units, in whole or in part in any medium for any purpose whatsoever, is strictly prohibited without the prior written permission of Western Union. This information piece shall not be considered an offer, final terms shall be reflected in the Agreement signed by both parties.