Con Edison Goes Green to Promote Paperless Billing Stuart Williams, CheckFree, now part of Fiserv Eric Leiserson, CheckFree, now part of Fiserv Utility Payments Conference

2 © 2008 National Automated Clearing House Association. All rights reserved.

3 Genesis of PayItGreen What we know Sending and receiving electronic payments is a “green” choice. Receiving electronic bills and statements is a “green” choice. Research finds 85% of consumers are willing to change their consumption habits to make tomorrow’s world a better place [Edelman goodpurpose study] 81% agree individuals are personally obligated to act [Simmons Winter 2008 NCS/NHCS Recontact Study] 75% agree a company should help consumers be eco-friendly [Simmons Winter 2008 NCS/NHCS Recontact Study] © 2008 National Automated Clearing House Association. All rights reserved.

4 Genesis of PayItGreen Finding opportunity in the gap 78% households receive paper checking acct statements 72% households receive paper savings acct statements 75% households receive paper credit card bills 25% of all household mail volume is transactions sent and received 58% of household first-class mail is transactions sent and received Javelin Research & Strategy USPS Household Diary © 2008 National Automated Clearing House Association. All rights reserved.

5 49% of total respondents say “they choose paperless/ electronic statements to reduce the amount of paper used whenever possible.” Simmons Winter 2008 NCS/NHCS Recontact Study Genesis of PayItGreen Finding opportunity in the gap © 2008 National Automated Clearing House Association. All rights reserved.

6 New behaviors are rarely adopted only on “issue” attitudes or opinions. There must be real [or perceived] improved personal benefits such as convenience and safety. Simmons Winter 2008 NCS/NCS Recontact Study Importance of Safe, Simple Smart © 2008 National Automated Clearing House Association. All rights reserved.

7 Members of the Alliance Bank of America; BillMatrix; Capital One; CheckFree (now part of Fiserv); Citi; Citizens Bank; EPN; Harris Bank; the Federal Reserve Banks; Fiserv; JPMorgan Chase; the Regional Payment Associations; SunTrust Bank; U.S. Bank; Wachovia; Wells Fargo. AT&T, Con Edison, and Qwest Communications are special advisors to the Alliance. NACHA – The Electronic Payments Association is coordinating PayItGreen. © 2008 National Automated Clearing House Association. All rights reserved.

8 Goal Inform and educate consumers and businesses about the positive environmental impacts and personal benefits—simple, safe, smart—of choosing electronic payments, bills, and statements to manage their finances. © 2008 National Automated Clearing House Association. All rights reserved.

9 Framework The Alliance Developed the messageCreated the look Built the brandLaunched PayItGreen The Business Integrates PayItGreen across “touchpoints” Drives the switch by asking customers to Assess the paper payments, bills, and statements Ask for electronic payments, bills, and statements Act to stop the paper payment, bill, and statement © 2008 National Automated Clearing House Association. All rights reserved.

10 Research findings make the PayItGreen case Source: Dove Consulting Foundation © 2008 National Automated Clearing House Association. All rights reserved.

11 Research Finds ANNUAL Collective Impact 1 in 5 Households The annual environmental impact of 1 in 5 PayItGreen households is long lasting Save over 150 million pounds of paper Save over 1.8 million trees Avoid filling 8,597,238 garbage bags Avoid filling 6,141 garbage trucks Avoid consuming 102,945,600 gallons of gas Avoid creating 1,439,601,370 gallons of wastewater  © 2008 National Automated Clearing House Association. All rights reserved.

12 Research Finds ANNUAL Collective Impact 1 in 5 Households Avoid producing almost 2 tons of greenhouse gas emissions annually – the equivalent of Not driving 3,861,769,517 miles Taking 325,722 cars off the road Not consuming 200 million gallons of gas Planting 45.6 million trees and allowing them to grow 10 years Preserving 12,405 acres of forest © 2008 National Automated Clearing House Association. All rights reserved.

13 payitgreen.org Appealing, factual, relevant with clear call to action © 2008 National Automated Clearing House Association. All rights reserved.

14 Proving the Relevance © 2008 National Automated Clearing House Association. All rights reserved.

15 PayItGreen Business Executing across business lines Logo, graphic, samples library “Plug and Play” calculators, video, audio © 2008 National Automated Clearing House Association. All rights reserved.

16 PayItGreen Pays Off 65% increase in e*bill enrollments May 2008 over May % increase in Direct Payment, April/May % signup for eBill from PayItGreen click thru PayItGreen in market March 2008 Targeted segments of online banking and bill pay customers to PayItGreen. Campaign ended June 30. Estimate SunTrust will be planting 20,000 trees. © 2008 National Automated Clearing House Association. All rights reserved.

17 Telling the PayItGreen Story Print – Nearly 5 million circulation Broadcast million Audio – Nearly 3.5 million Total States – 24 Total Markets - 60 Total Stations – 30 Total Audiences – 3,394,600 © 2008 National Automated Clearing House Association. All rights reserved.

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19 Source: CheckFree Consumer Insights, May 2008 Consumers View Bills Online For Multiple Reasons

20 Majority of Utilities Have One to Five Percent Paperless e-Bill Penetration Source: Ascent Group, Billing and Payment Profiles & Best Practices, 2007 Of Utilities Surveyed

21 For each of the bills you viewed electronically at a biller’s site last month, please indicate if you also received that bill through the mail. Huge Opportunities for Paper Turn Off Source: CheckFree Consumer Insights, May 2008 Paper bill recipients: Generally, for the bills you pay at billers ’ sites, would you be willing to stop receiving a paper bill if offered the choice?

22 The Environmental Paradigm Shift is Driving More Green e-Bill Marketing Initiatives Consumers: Thinking about the bills you view, receive or pay online, how important is helping the environment? Sources: 2008 Consumer Lifecycle Survey and TowerGroup 2008 Survey on EBPP Percent of firms using each marketing strategy to promote e-bills: Does not equal 100% due to multiple answers

23 Consolidated Edison Company of New York (Con Edison) is a subsidiary of Consolidated Edison, Inc., (ED, NYSE) one of the nation’s largest investor-owned energy companies, with approximately $12 billion in annual revenues and $28 billion in assets.Consolidated Edison, Inc. A regulated utility, Con Edison provides electric service to approximately 3.2 million customers and gas service to approximately 1.1 million customers in New York City and Westchester County. About Con Edison of New York, Inc.

24 Source: Con Edison Enrollment in Electronic Billing May 2006 – September 2008

25 Press Releases Con Edison web site My Checkfree transition page On-Hold messaging Customer News Employee notification Yankee Stadium Banner Customer s Direct Mail Postcards Radio Ads Bill Envelope Solicitation CSR solicitation Lottery IVM messaging (test) Initiatives to Encourage Adoption of e*bill

26 Con Edison Home Page and e*bill Landing Page

27 Yankee Stadium Con Ed Marketing Examples

28 Current and Future Adoption Initiatives Green initiatives command attention PayItGreen Alliance Partner with banks / payment providers to encourage e-bill migration Increase initiatives Explore Green Customer profiling Explore Internet Security marketing

29 “We saw an incredible lift in e-bill activations in 2007 after implementing a marketing campaign promoting the "greenness" of going paperless. "You can't do just one month of marketing in one place and expect to see results. Our numbers proved that the “green” message is relevant and actionable to our customers. “Nationally we will have to use ongoing messaging around the green benefits at every opportunity the customer has to choose an electronic statement, bill, or payment over paper.” Key Takeaways George Roach, Administrator Electronic Billing and Payment Programs Consolidated Edison

Con Edison Goes Green to Promote Paperless Billing Stuart Williams, CheckFree, now part of Fiserv Eric Leiserson, CheckFree, now part of Fiserv Utility Payments Conference