1. Marketing Executives’ Conference Counterbalancing Rising Rates – Managing the Customer Impact Fred Stoffel Vice President, Marketing Xcel Energy October 13, 2008

2. Customer Indicators  Leading indicators  Late Payments  Third Party Assistance Requests  Payment Arrangements  Late Payment Fees  Bad Debt  Customer Complaints  Lagging Indicators  Customer Satisfaction  Foreclosures

3. Utility Outreach  High Bill campaign  Designed to alert customers of higher bills  Campaign will run during high bill winter months  Promotional component to drive customers to action  Remind Customers of weatherization options  Remind Customers of payment options  Advise customers of availability of assistance programs  Promote seasonally appropriate customers electric and gas DSM programs  Use paid for and “free” media to drive awareness.

4. Basic Billing Options  Customer Payment Convenience  Automatic Payment  “Check-Free” Paperless Billing  Customer Payment Flexibility  Average Monthly Payment  Custom Due Dates  Credit Cards

5. Customer Choice Products  Windsource  Solar*Rewards  Saver’s Switch

6. Alignment with Low Income Assistance Agencies  United Way  Salvation Army  Energy Outreach Colorado  Low Income Provider Agencies  Donations  Efficiency projects

7. Demand Side Energy Efficiency Programs  On-Line Audits  Home Energy Audits  Customer Rebates  In-store Promotions  Separate Web-Site

8. Future Approach, Programs, and Initiatives  Approach  Drive customer from awareness to action  Awareness of utility efforts and programs is high  But, utility industry lags program participation versus other industries (ie. Banking, Hotels)  Customer centricity is not fully embraced because regulatory and operational focus  Make it easier to do business with the utility.  Programs/Initiatives  On-Line Account Management  Web redesign  Personal Energy Reports  Segmented Customer Communications  New Rate Options  Smart Grid Applications  More engaging mass media approach  Community-based marketing

9. Discussion