1 Click to edit Master title style Jeff Hill Senior Business Operations Analyst October, 2009 Duke Energy’s Payment Strategy Utility Payment Conference

2 U.S. Franchised Electric & Gas  5 states: North Carolina, South Carolina, Indiana, Ohio and Kentucky  47,000 square miles of service area  28,000 MW of regulated generating capacity  4 million retail electric customers  500,000 retail gas customers

History of Duke’s Walk In Payment Processing  Since 1988, Duke has used an on-line cash system for real time (or pending) payment posting. Real time payment information is vital for debt management activities and customer satisfaction.  Several upgrades via in-house developed systems (i.e. automatic reconnect orders).  Late 2007, RFP sent out to vendors and Global Express selected as vendor for Duke’s SE pay agent network. 3

Previous Walk-In Payment Strategy  Network of Payment Centers and authorized pay agents  Utilize in-house developed cash drawer systems  Payment centers are Duke Energy owned/leased and staffed by contractors  Duke contracts directly with each pay agent  Customer support (connect, disconnect, high bill) is performed via customer service phone to Call Center 4

Current Walk-In Payment Strategy  Move away from Duke supported infrastructure (i.e. workstations, broadband, banking, and support)  Utilize network of vendor managed pay agents  Evaluate existing Payment Centers and add vendor managed pay agents to provide customers additional options or potentially move to all vendor pay agents when timing is right 5

66 CPI – Common Payment Interface  A web service enabling 2-way communication between Duke and our various pay channels.  Search capabilities for various pay channels. For example, pay agents can search by customer name, address or phone number to locate a customer’s account without a bill stub.  More information provided to the pay channel for customer’s benefit, i.e. balance owed (current and past due), disconnect date and amount to avoid disconnect. Helps optimize self-service channels for customers and provides consistency across all channels.  Communication back to pay channel so customer is aware of what action will take place. For pay agents, messaging is printed on the receipt such as “Disconnect Stopped”.  Provides common channel to route all information flowing between Duke and its payment vendors (pay agent, IVR/Phone, e-Bill).  Enables future adoption of new payment methods (kiosks, cell phone, etc.) and is scalable for new acquisitions or mergers.

Customer Benefits of CPI  Immediate recognition of payment such that correct account balances will be recognized and quoted by the IVR and WEB  Immediately stops disconnection or issues a reconnect where feasible, reducing disconnects in error  No manual intervention -- eliminates the need for a customer to call back and supports Duke’s efforts for first call resolution  Builds customer confidence that credit actions are taken care of properly based on confirmation messages  Customers will have access to multiple self-service channels to obtain current account information and make payments (i.e. IVR, WEB, e-Bill) 7

Future Strategy  More choices/options for customer convenience  Push to lower cost channels and self service models  Evaluate remaining Payment Centers  Expansion of pay agent network  Evaluate kiosk approach that would integrate real time payments via CPI 8

Questions? Speaker Information: Jeff Hill Senior Business Operations Analyst