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

1. 2011 Utility Payments ConferenceCase Study: Best Practices and Multi-Payment Channels – PGE’s Innovative Programs & InitiativesTuesday, Sept 20th 10:45 – 11:45 Presented by Wes Friesen, Manager – Revenue Collection & Community OfficesPortland General Electric 1

2. Managing Payment Programs Can be Stressful! 2

3. Identical Dolphins… 3

4. But Managing Payment Programs Can be Very Satisfying! 4

5. 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

6. PGE’s Print & Mail Team 6

7. 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 7

8. 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 8

9. Payment Departments Cash Remittance Mail-in Payments Electronic Billing and Payments Electronic and Third Party Community Offices Walk-in payments

10. Payment Trends

11. PGE’s Cash Remittance Team 11

12. 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

13. 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

14. 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

15. 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!

16. PGE’s Electronic Bills & Payments Team 16

17. Electronic Bills & Payments • Express Pay Locations • VCOM Kiosks • BillMatrix • Mobile Payments via Text Message • Automatic Monthly Payments • PGE IVR check payment • Online Payments • EDI You are enrolled in Auto Pay

18. 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 vendors for this service. • 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.

19. VCOM • Advantages For Customers: • Convenient Locations (7-11 Stores) • 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.

20. 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. A COMPANY OF

21. Mobile Options

22. Other Checking Account Options • Automatic Monthly Payments • Auto Pay • PGE IVR check payment • In house w/no fee • Online Payments • Recurring • One-time • Future dated

23. PGE’s Community Offices Team 23

24. 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

25. 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

26. 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

27. 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

28. 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

29. 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

30. 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

31. Questions

32. Have questions or need more info? Contact Wes at: • Wes.Friesen@pgn.com • Work #: 503-612-4771 • Or Contact Kay Limbaugh or Darla Buyas  32

33. Thank you