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Lowering the Costs of Information Technology Billing and Customer Care The Need For A NEM Solution As the leading market advocate for retail energy providers, NEM sought to provide members with a competitively-priced, componentized end-to-end billing and customer care solution.

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the need for a nem solution
The Need For A NEM Solution
  • As the leading market advocate for retail energy providers, NEM sought to provide members with a competitively-priced, componentized end-to-end billing and customer care solution.
  • Retail energy providers support billing and customer care processes through a wide range of available systems, home grown tools and manual processes today.
  • Changing market conditions create challenges and incremental costs for retail energy providers to modify systems and processes to support changes in market model, transaction rules and processes.
  • Outsourcing is an attractive option for retail energy providers by enabling access to new capabilities at a stable, predictable cost including the option to amortize upfront costs over the life of an outsourcing agreement.
  • Small or independent retail energy providers often lack the buying power and resource bandwidth to obtain a comprehensive end-to-end solution aligned to their business needs with a large, reputable partner.
slide3

The NEM Solution

  • Supported by Alliance Data and available to NEM members operating as retail energy providers in deregulated natural gas and electric markets the United States
  • Comprehensive end-to-end solution that can be implemented in components aligned to each participating member’s needs
  • Standardized pricing by solution component that includes discounts as aggregate member volume grows
  • A best practice solution that is pre-configured to support the critical customer care and billing processes of an energy retailer (all customer types)
  • Optional services and solution customization available to meet member-specific needs
  • Contractual agreements will be executed between each company and Alliance Data
nem solution components
NEM Solution Components
  • Customer Care – Full contact center operations to provide inbound customer service and call center back office support
  • Application Maintenance & Infrastructure Hosting – Including a robust retail energy solution toolkit, an Excelergy-based customer information and billing solution, and all associated customer care applications and infrastructure
  • Marketing & Loyalty Services – Optional loyalty program implementation and management
  • Debt Management – Optional hosted automated notification services to support collections activities
  • Remittance Processing – Lockbox processing and optional e-payment services
  • Critical Correspondence Generation, Print & Mail – Bill and notice print and mail with optional marketing or campaign collateral print and mail
nem solution pricing overview
NEM Solution Pricing Overview

Declining Tiered Pricing Structure

  • Proposed pricing model is volume-based ongoing operational pricing
    • Advantages for early program adopters
    • Fixed pricing for bill print and remittance
    • Call Center services priced per minute
    • Billing Operations including CIS Hosting & Application Management priced on a per meter basis
    • Declining tiered pricing as aggregate NEM member participation and meter count grows
  • Assumptions
    • Implementation, Certification and Conversion Support Services costs to be priced separately per NEM member
    • Best practice adherence to jurisdictional and industry standards including SLAs, base solution configuration and contract terms

100%

90%

80%

70%

60%

Aggregate # of Meters

typical deployment months

10

5

4

1

9

8

7

6

3

2

GO LIVE

Typical Deployment (Months)

Ongoing Performance Tuning

Market and Business Requirement Finalization

QA Testing & Certification

Acceptance Testing

Application Deployment, CC Staffing & Facility Plans

Discovery Session

Training

Customer Support Session

Alliance Data Creates Functional Specification

Implementation Review

comprehensive solution
Comprehensive Solution
  • Robust end-to-end solution
    • Billing system and billing operations including print and mail
    • Full payment processing including lockbox, electronic payments, exception handling
    • Call center and customer service
    • Transaction and market management
  • Mutual commitment
    • Results-oriented, performance driven
    • People and infrastructure: SLA, Best Practices, Continuous Improvement
  • Financial benefits
    • Returns offset monthly expense
    • Immediately cash flow positive
    • Price certainty
  • Ongoing support services
    • Business Intelligence tools
    • Best practices
    • Technology refresh