Focus on the customer? Of course! But what about my staff? Utility Payment Conference – September 17, 2019 Matthew Mays Manager, Payment Operations Constellation Vince Sykora Regional Sales Director Paymentus Corporation

We’re In The Midst Of A Major Shift How payments are made is rapidly changing: In the U.S., digital wallets like PayPal, Venmo, Amazon Pay and Apple Pay are projected to overtake credit cards as the most popular online payment method in 2020 - Worldpay Technological advancements are transforming how consumers and businesses interact: By 2021, 40% of consumers will use voice assistants like Alexa instead of websites or apps when service needs arise - Capgemini By 2020, 85% of all interactions between millennials and businesses will occur without human interaction, as self-service and chatbots become fully ubiquitous - Gartner Those of whom embrace the shift, will have a significant advantage in the pursuit of maximum customer satisfaction and operational excellence.

Customer Satisfaction Consumers Are Seeking More Options And Simplified Experiences According to J.D. Power, the ‘Billing and Payment’ experience drives up to 58% of total customer satisfaction scores Billers who receive highest ‘Billing and Payment’ customer satisfaction scores offer more payment methods and simplified checkout experiences vs. their peers Based on a 2018 ComScore Survey, 70% of consumers cite ‘availability of payment methods’ as top priority during payment experience Positive Correlation Between Choice and Satisfaction: One key factor that contributes to satisfaction in the ‘Billing and Payment’ category is payment choice; ‘variety of payment methods’ offered is highly correlated to customer satisfaction Customer Satisfaction Number of Payment Methods / Channels

More and More Options Payment Channels

PAYMENT PROCESSING SERVICES Managing Integration with More Channels Channel 1 Channel 2 Channel 3 Channel 4 Channel 5 Channel 6 Channel 7 Single Integration Layer PAYMENT PROCESSING SERVICES eCheck Debit Cards Credit Cards CIS

About Constellation, an Exelon company Leading competitive energy company Providing power, natural gas, renewable energy, and energy management products and services 2 million residential, public sector and business customers including more than two-thirds of the Fortune 100 companies Commitment to innovation, dependability, transparency and service

Constellation’s Goals Streamline processes and simplify reporting and reconciliation Consolidate, consolidate, consolidate Maintain compliance PCI compliant solution for taking phone payments Enhance customer experience More channels, consistent user experience Same look/feel/process to complete payments regardless of channel

Credit Card Processers 2015/2016 – Multiple of Everything AR Systems 5 Platforms Credit Card Processers 6 Vendors Online Websites 7 Sites Invoice Formats 6 Versions Banks/Lockboxes 4 Vendors/12 Accts Walk-Up Payments 5 Cash Vendors

Transformation – Major Factors Move away from account-level application to invoice-level application Methodology Best Practice Bank – Vendor A Web/phone Payment – Vendor B Walk-Up Payments – Vendor C Vendor Consolidation Paymatch Logic Cash Work-Queue System Business Process Account numbers Bank accounts Invoice/remit Online portal Customer Change Excerpt From: Deloitte Whitepaper “As payments come in, it’s essential they be applied both to the right customers and to the specific customer invoices they relate to.” Excerpt From: SAP system Implementation Whitepaper “Automate the matching of the payment advice to the customers’ open items Results: Faster, more accurate processing: eliminates time-consuming and error-prone manual reconciliation in SAP”

Increase Satisfaction Key Performance Indicators – Improvements to Focus on Customer Transactional Survey Results: 67% Improvement Cash Posting in 24 Hours: 50% Improvement Unapplied Cash: 90% Reduction Open C&I Care Tickets: 78% Reduction Open MM Care Tickets: 88% Reduction Increase Satisfaction Decrease Exceptions

We will continue to accept and process legacy numbers. Payment Options Available to Commercial & Industrial Customers Vendor A Paper Checks ACH Wires Online Bill Pay via Customers Bank Vendor B Checking/Savings/Credit Card Pay by Phone/IVR Online (Energy Manager) Agent (Customer Care) Please note the customer should always use their remit stub when attempting to pay and provide their new Customer Number & Statement Number. We will continue to accept and process legacy numbers. .

We will continue to accept and process legacy numbers. Payment Options Available to Residential & Small Commercial Vendor A Paper Checks Electronic Checks via ACH Online Bill Pay Vendor B Credit/Debit – Visa/Mastercard, AMEX/Discover or Checking/Savings Account Pay by Phone/IVR Online Agent Security Deposits (Only Visa, MC, AMEX, DC) Vendor C Cash – In person Credit/Debit – Online (pending removal) Please note the customer should always use their remit stub when attempting to pay and provide their new Customer Number. We will continue to accept and process legacy numbers. Payments Options Scheduled for Shutdown – Q1 2019 Vendor 1 (Cash) Vendor 2 (Cash) Vendor 3 (Cash/Check) Vendor 4 (Cash/Check) Vendor 5 (Credit/Debit) Vendor 6 (Direct ACH/Wires) Vendor 7 (Credit/Debit/ACH)

Consolidation from 6 Different Websites to 2 Multiple Vendors to One Wallets Auto-Pay Pay Later Scope of Conversion Consolidation from 6 Different Websites to 2 Energy Manager (Commercial) My Constellation (Residential) 2017 Vendor 1 Vendor 2 Vendor 3 2018 Vendor 4 2019 Vendor 5 Vendor 6

Invoice Information Regarding Paying Online Payments Quick and easy payments Set up auto pay Save payment information View statement history Manage notifications Self-Service or Agent-Assisted IVR Easy to use call flow PCI compliant agent solution Finding Nearest Sites for Cash Payments (i.e. CVS, Walmart, Grocery Store)

C&I Energy Manager Portal: Moving from… Older, outdated online portals Difficult to use interfaces Multiple portals with different usernames and passwords Inconsistent features Limited payment abilities

C&I Energy Manager Portal: Moving to… One unified portal, power & gas Clean, attractive interface Responsive design (mobile!) Easy online payments Interactive usage reports

Voice-Based Assistants Modern Payment Methods What’s Next? More channels, more payment methods Voice-Based Assistants Facebook Chat Mobile Wallet Pay-by-Text Modern Channels PayPal Credit Venmo PayPal Apple Pay Google Pay Modern Payment Methods

customer satisfaction Overall Goals Maximize customer adoption Streamline processes Increase customer satisfaction Level 1 PCI Compliance

Paymentus Corporation Questions? Matthew Mays Constellation Manager, Billing & Payments Matthew.Mays@constellation.com (667) 313-2144 Vince Sykora Paymentus Corporation Regional Sales Director vsykora@paymentus.com 815-331-8298