2. 2 APPA Conference September 18, 2006 Credit and Collections: The Back End

3. Collections Using Innovative Initiatives to Increase Collections and Reduce Aged Receivables

4. 4 OUC’s Customers 200,000 Customers 80% Residential 20% Commercial Very transient population Most jobs are service related

5. 5 Collection Processes  Predictive Dialer System.  Successful Sale of Bad Debt Accounts  Implementation of 1.5% Late Fee

6. 6 Need for Predictive Dialer System  Converted to new CIS system in 1998  Dysfunctional delinquency system  Delinquency module repaired in August 2003  With repair of new system, many delinquent accounts and other issues were revealed

7. 7 Disconnect for Non- Pays (DNP)  DNPs on review table: averaging about 10,000 per day.  Not able to cut this many ( as well, we did not want to cut this many)  Utilizing 1.5 FTEs to make strategic manual phone calls to customers that we would not be able to cut.  This was only half effective –unable to contact everyone that should be contacted and collection rate not that great.

8. 8 Partnered with Televox  Set up several campaigns to focus on the delinquent accounts  We analyzed where the greatest risk occurred from accounts on DNP table and on potential write-off  Determined that it was: residential accounts U-rated customers balance between $250- $350

9. 9 Televox (continued)  Decided to call all “U” rated customers daily  Televox sends the results back to us daily  The data indicates telephone numbers called, time, (results- answering machine, no answer, busy, etc.), the amount  The information is loaded into our CIS Notes Section. Each account that receives a call is stamped with a note type – TELVOX and the results  The information to customer is done in English and Spanish

10. 10 OUC Results  The DNP volume on cut sheet dropped by 50%  We were averaging approximately 10,000 DNP accounts each day– we now average approximately 5,500  Aged Receivables in the 31- 60 day category were averaging 5%  Aged Receivables 31- 60 days currently 2.0%

11. 11 Savings  Televox annual expenses for number of calls $54,000  Expenses (staffing for manual calls) = $73,500  Annual Expense Savings with Televox= $19,000

12. 12 Aged Receivables Aged Receivables 31-60 Days Making Automated Courtesy Calls has helped to reduce the percentage of Aged Receivables *started calling in October 2004 Nov-04 5.01% Dec-04 5.00% Jan-05 3.40% Feb-05 3.00% Mar-05 2.90%

13. 13 Aged Receivables (continued) Aged Receivables 61-90 Days Making Automated Courtesy Calls has helped to reduce the percentage of Aged Receivables *started calling in October 2004 Nov-042.8% Dec-042.7% Jan-052.1% Feb-051.7% Mar-051.5%

14. 14 Recovery Rates  Efficiency Rates (recoveries)

15. 15 Sale of Bad Debt 2003- Sold $ 12 million portfolio, 43,000 account (May 1998- April 2002) 2005 – Sold $7.5 million portfolio, 28,000 accounts (May 2002- December 2004)

16. 16 Contact Information: Cynthia M. Henry Director, Collections Division OUC- The Reliable One 407-423-9166 Chenry@ouc.com Fax: 407-236-9630