1 Revenue Recovery How to make more money that’s already yours (SCE) Presented by: Robert Montoya September 2009

2 What we will review today ( Recovering your Revenues)  Quick, Comprehensive review of Revenue Recovery (Internal as well as External)  Internally communicate your performance, success stories, and metrics (gain visibility)  Performance goals and Safety programs to keep everyone focused, constant communications, and gain support  Review an actual and recent theft case at Southern California Edison = Net $ 2.5 M in Theft

3 Review of Best Practices when billing and recovering revenues  Investigate Energy Theft leads ASAP (1 to 5 days)  Go prepared with billing history and research  Conduct a thorough investigation/retain all evidence (photographs and all hardware)  Utilize Prosecution when needed and utilize the D/A office and try to gain support from your law dept.  Communicate/Coordinate with local law enforcement when needed (Marijuana grows- DEA etc.)  Work with your Billing & Collections department (follow up – payment arrangements – collections)  Negotiate a settlement (new and old cases before these go to write off)

4 Communicate your Performance to gain Internal, On-going Support  Do you have a Newsletter  Do you publish your performance  Do you Communicate with upper management on all large success stories, close calls, and safety  Do other Dept’s know about Revenue Protection  Are you involved in Benchmarking (best practice)  Do you reward your employees (bonus program)  Are employee’s focused on goals/metrics and are these published and measured on a monthly basis  Do you have a Training Program for your Investigators

5 Setting Performance Goals and link to performance appraisals  Do you measure the following? –Safety is #1 ride a longs by Supervision (its not all numbers) –Are your goals tied to appraisals –Goals for Billed & Collected Revenue –Goals for Billing the cost incurred for correcting Theft cases Other Operating Revenue (OOR’S) –Goals measuring backlog, and cases investigated within XX timeframe

6 14 Years of Billed & Collected Data 14 Years of Billed & Collected Data MILLION

7 14 Years of Billed & Collected Data 14 Years of Billed & Collected Data Projected MILLIONMILLION

8 Theft Dollars Billed YTD and Projected YE Theft Dollars Billed YTD and Projected YE Theft Billed Percent Increase $ M $ M 231% $12.035M138% 2009 July ytd $ Projected Year End $8.766M

9 SCE- Revenue Protection SCE 2008 = Q2 Low High Performance   SCE remains in the 2 nd Quartile for Inspections and Recovered Revenue   Reviewing the peer panel, Duke and Dominion currently utilize 65% computer analysis to determine theft Lost Revenue Recovered as a % of Lost Revenue Billed Site Inspections per 1,000 Customers SCE 2008 = Q2

10 Review Theft case of $ 2.5 Million Review Theft case of $ 2.5 Million  Major Customer  Plating Business  Time of use Rate  Meter read by RTEM  Energy Theft Program –Prevention –Detection –Investigation –Prosecution –Restitution

11 From Your Power Point – Marijuana Grows  Our Investigators work very close with our local law enforcement agencies, DEA, DOJ, ATF and the District Attorneys office. –We get tips on suspected grow homes  Conduct site visit to amp check service as a routine order. –Respond to law enforcement request to verify and calculate any energy theft and remove potential electrical Safety hazards.

12 Marijuana Grows - Cont  Involve our company lawyers in any case over $400 –Verify assets, who owns the home or business –Assess risks and cost to pursue restitution –Present bill to customer and try to negotiate settlement based on assets  A majority of these grows are maintained by illegal immigrants (MULES) the home owner lives out side the United States.  In some cases we can place a lien on the home hope for future sale to collect. –Prepare documentation for litigation.  How we calculated the bill i.e. method connected load or equipment, time frame, rules and rates that were applied.  Calibration of equipment used to measure must be documented.  Pictures to support information.

13 Closing Thoughts  Safety is #1  Its about the People, Process, & Technology  Keep Performance numbers and Communications high on the list  Communicate to upper management and gain support  Persistence in Billing, Collecting and utilize all resources available