company overview
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2011 Utility Payment Conference
Case Study: Best Practices and Multi-Payment Channels – PGE’s Innovative
Programs & Initiatives
Tuesday, Sept 20th 10:45 – 11:45
Presented by Wes Friesen, Manager – Revenue Collection & Community Offices for Portland General Electric
(Note: the views expressed here are Wes’s and not necessarily PGE’s; Also, PGE does not endorse any vendors or suppliers)
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Company Overview
Portland General Electric
Oregon’s largest utility
Headquarters is located in Portland, Oregon
Fully integrated electric utility that serves 825,000 residential, commercial and industrial customers
PGE is a recognized leader in the utility industry and has safely and dependably powered northwest Oregon since 1889
PGE’s Print & Mail Team
Print & Mail Services InfoPrint 5000 Color Printers; Pitney Bowes Inserters (APS, FPS); other
print and mail related equipment and software
Only electric utility in the nation that is MPTQM certified
Have earned multiple national awards for Excellence (e.g. 2008, 2009, 2010 earned NAPL’s Gold/Silver Awards)
100% Same Day production of bills for over 9 straight years, with zero significant errors!
Maximize postal discounts ($3m savings) via selective/intelligent inserting and automation/sortation work sharing; early adopter of Intelligent Mail BarCode
Customer Bills (June 2011)
Paper Bills = 742,977 (87.7 %)
E-Bills = 103,977 (12.3%)E-Bills are growing in number and %; paper bills are relatively flat in numbers
Multi-Channel Bill Redesign initiative in process (moving Bills & related communications from very good to great)
Paper comes from PGE Customer Boise Cascade, using sustainable fiber sources: construction/lumber mill wood waste; re-cycled paper; sustainable and certified tree farms/forests
Environmental Certification (SFI) in place for envelope & forms vendors; certification in process for print & mail services SFI certification
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Payment Departments
Community OfficesWalk-in payments
Electronic Billing and PaymentsElectronic and Third Party
Cash RemittanceMail-in Payments
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Payment Trends
0%
10%
20%
30%
40%
50%
60%
70%
2005 2006 2007 2008 2009 2010
Mail-In
Electronic
Walk-In
PGE’s Cash Remittance Team
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Cash Remittance
Processes all mail-in payments for PGE Light and Power Agency Non-Light and Power
Process 80+% of payments ARC
Implementing Image Cash Letter for remainder
Hardware: Utilize OPEX 7.5 and 51s w/3690i Burroughs Quantum's
Software Running on a UNISYS Lockbox platform
NOTE: PGE does not endorse any vendors/suppliers
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Cash Remittance
Marksense• Redeem PGE Gift Cards
• Address changes/customer comments
Bangtail envelopes for promoting PGE programs
One Check and Consolidated Bill payments
Archive of Bill Stub and Check Images
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ISO 9001 Certification
Background:
Goal is Continuous Improvement
Became Certified in 2009
111 Procedures, 85 Forms and full-day
Audits Benefits:
Vendor reviews resulted in better
service and relationships
Clear training setup
Changes tracked to procedures
Communication of changes made more
quickly
Pride in meeting goals and passing
audits
Changes:
Quarterly Review of Vendors/Suppliers
Issues Database
Documented Procedures
Quality Manual
Change Management System
Training Manual
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Agency Portal
Allows Agencies to view PGE customer’s
account with permission from customer
Able to view any commitments previously
made on an account, view account balances,
and create a commitment on the account
Reduces calls and call times for both PGE and
agency personnel
Automatically deletes commitment from
account once money is posted
Huge success with Agencies – high
satisfaction!
PGE’s Electronic Bills & Payments Team
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Electronic Bills & Payments
Express Pay Locations
VCOM Kiosks
Bill Matrix
Mobile Payments via Text Message
Automatic Monthly Payments
PGE IVR check payment
Online PaymentsYou are enrolled in
Auto Pay
Express Pay Locations
PGE’s Express Pay stations let you pay your PGE bill at grocery stores, pharmacies and other convenient places.
PGE has contracted with Fidelity Express; transitioning to Western Union.
There is a $1.50 convenience fee charged for each payment made at an Express Pay location. The $1.50 convenience fee must be paid
in cash.
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VCOM
Advantages For Customers:
Convenient Locations
Customer can use the system in English or Spanish
Pay 24 hours a day, 7 days a week depending on the store location
Ability to pay by cash or debit card (no credit cards or money orders)
For PGE:
Provides another convenient payment option for customers
Very low cost to process payments because the customer is paying a $1.50 fee for the service and completing the transaction on their own.
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BillMatrix
Advantages For Customers:
Customers can use the system in English or Spanish
Payments can be made via the web from a link on PGEs website or over the phone
Customers can use VISA, MasterCard or Discover card, as well as any ATM / debit card that displays the StarSM System logo. Note: There is a $600 maximum per transaction
For PGE:
Provides another convenient payment option for customers
Very low cost to process payments because the customer is paying a $3.95 fee for the service and completing the transaction on their own.
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A COMPANY OF
Mobile Options
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Other Checking Account Options
Automatic Monthly Payments Auto Pay
PGE IVR check payment In house w/no fee
Online Payments Recurring
One-time
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PGE’s Community Offices Team
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Community Offices
• Processes walk-in and drop box payments at 7 different locations
• Created PGE Gift Card Program
• Process MasterCard credit and debit cards with no fee to customer
• Started processing checks via Remote Deposit in February 2008; BOC in 2009
• Electronic surveying of customer experience
• Elder Friendly Certified Offices
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Community Offices
Remote Capture/BOC
Checks are captured and sent to the bank along with MICR info from
the checks
Eligible items are converted to ACH
Reduction in bank fees
Bank deals with Administrative returns
Slight reduction in float time of checks
Payback period was less than 6 months
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Gift Cards
History:
Before 2007, PGE had a Gift Certificate program
Had to know address or PGE account number
Red tape did not allow PGE reps to give out personal information or
verify amount owed
Money went directly on account and card was sent to PGE customer
informing them of gift applied to account
Not a very popular program
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Gift Cards
Challenges:
Public Utility Commission’s rule on 1 year “suspense” payment rule
How to buy or redeem gift cards
Tracking redemption of cards
Cost of gift cards
Reconciling Redeemed/Paid accounts
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Gift Cards
In 2007: 979 cards sold = $36,124
In 2008: 1,574 cards sold = $63,720
In 2009: 2,539 cards sold = $76,829
In 2010: 1,499 cards sold = $71,653
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Credit Cards
Currently receiving MasterCard payments with no fee in Community
offices
VISA and MasterCard can be used through Bill Matrix with a $3.95
fee
Customer feedback supports wanting more credit card options
Challenges in getting approved in revenue requirements; looking at
trying to get residential fees covered in 2013 test year
Looking at future opportunities on PGE website
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Future Plans
Real-time (More Frequent) Payment Posting
Quick Response 2D barcode (payments, marketing)
Pre-paid metering
Credit Cards accepted on PGE website for residential customers for a small fee or free starting in 2013 (free only if covered in rates)
Company focus on Payments
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Questions
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Thank you