PeopleSoft Financial Gateway: Duke Energy’s Story Revision History Revision Date Version Description Author Presented by: Wes Huffman, IT Architecture and Project Management Brian Buzzard, PeopleSoft Application Support Approval History Approval Date Version Name Signature

Agenda Company Profile PeopleSoft at Duke Energy Payment Processing Past and Present Implementing Financial Gateway Future Integration Plans Questions Revision History Revision Date Version Description Author Approval History Approval Date Version Name Signature

Agenda Company Profile PeopleSoft at Duke Energy Payment Processing Past and Present Implementing Financial Gateway Future Integration Plans Questions Revision History Revision Date Version Description Author Approval History Approval Date Version Name Signature

Company Profile Over 150 years of service Approximately 4 million customers Fortune 500 $59 billion in assets (as of 12.31.2010) Stock dividends for over 80 years Traded on NYSE as DUK Dow Jones Sustainability Index

Company Profile (Cont.) Total U.S. Generating Capacity: Approximately 35,400 megawatts (owned capacity) Size of Service Territory: Approximately 50,000 square miles Utility Customers (as of 12.31.10): Total Electric – Approximately 4M 500,000 retail gas customers Generation facilities in North, Central and South America

Company Profile (Cont.) North American Generation Facilities Revision History Revision Date Version Description Author Approval History Approval Date Version Name Signature

Company Profile (Cont.) Duke Energy International Facilities Revision History Revision Date Version Description Author Approval History Approval Date Version Name Signature

Agenda Company Profile PeopleSoft at Duke Energy Payment Processing Past and Present Implementing Financial Gateway Future Integration Plans Questions Revision History Revision Date Version Description Author Approval History Approval Date Version Name Signature

PeopleSoft at Duke Energy 1997 HR Version 5.0 1998 Financials 6.0 HR 6.0 2000 Financials 7.5 HR 7.5 Expenses 7.5 2002 Financials 8.0 HR 8.0 Expenses 8.0 2003 Supply Chain 8.0 2007 Financials 8.9 Supply Chain 8.9 2009 Expenses 8.9 2010 Financial Gateway Integration with all banking institutions 2011 Implement With-holding and 1099 Reporting Revision History Revision Date Version Description Author Approval History Approval Date Version Name Signature

PeopleSoft at Duke Energy (Cont.) Current State: Release: Version 8.9 (Through Bundle 36) PeopleTools 8.50 Database Platform: Oracle 11g on AIX 6.1 Web, Application, Process Scheduler (nVision/Crystals) Windows 2008 Process Scheduler for Batch (SQR, COBOL, AE) AIX 6.1 Cybermation ESP Scheduling Agent Revision History Revision Date Version Description Author Approval History Approval Date Version Name Signature

PeopleSoft at Duke Energy (Cont.) Module Transaction Type Volume (Approximate) General Ledger Journals 19K/Month Journal Lines 1.6M/Month Accounts Payable Vendors 16K (2010) Payments 13K/Month Electronic Payments (via Financial Gateway) 7400/Month Accounts Receivable Items 1300/Month Billing Bills Project Costing Projects Travel and Expenses Expense Reports 9100/Month Revision History Revision Date Version Description Author Approval History Approval Date Version Name Signature

Agenda Company Profile PeopleSoft at Duke Energy Payment Processing Past and Present Implementing Financial Gateway Future Integration Plans Questions Revision History Revision Date Version Description Author Approval History Approval Date Version Name Signature

Payment Processing Past and Present Duke Energy’s payment process has evolved from a very customized, manual and deeply integrated process to one that exclusively uses Financial Gateway for electronic payments. Revision History Revision Date Version Description Author Approval History Approval Date Version Name Signature

Payment Processing Past and Present (Cont.) When PeopleSoft 8.9 was implemented, Duke Energy used a highly customized set of processes to integrate with the existing Mainframe architecture: EFT payments produced by a customized version of the FIN2025 SQR to meet bank requirements Check payment data extracted via custom process and sent to the Mainframe Wire payment information produced using a custom Cobol process Revision History Revision Date Version Description Author Approval History Approval Date Version Name Signature

Payment Processing Past and Present (Cont.) Revision History Revision Date Version Description Author Approval History Approval Date Version Name Signature

Payment Processing Past and Present (Cont.) Following the merger with Cinergy, Duke Energy implemented Financial Gateway in conjunction with the previous process to: Deliver a mechanism for sending ACH payment, Wire payment, and Positive Pay information to PNC Bank Use delivered functionality for processing payment acknowledgement files Provide a cost-effective solution for integration understanding the long-term goal of deactivating the Mainframe and PeopleSoft 8.0 applications Revision History Revision Date Version Description Author Approval History Approval Date Version Name Signature

Payment Processing Past and Present (Cont.) Revision History Revision Date Version Description Author Approval History Approval Date Version Name Signature

Payment Processing Past and Present (Cont.) When transaction activity moved from legacy applications in 2010, a project was chartered in conjunction to: Setup new integrations using Financial Gateway functionality with new and existing banks not yet integrated for ACH payment, Wire payment, Positive Pay file, and Payment Acknowledgement file processing Create a new process for capturing check information in an EDI formatted file and transmitting to the third-party check vendor Revision History Revision Date Version Description Author Approval History Approval Date Version Name Signature

Payment Processing Past and Present (Cont.) Revision History Revision Date Version Description Author Approval History Approval Date Version Name Signature

Agenda Company Profile PeopleSoft at Duke Energy Payment Processing Past & Present Implementing Financial Gateway Future Integration Plans Questions Revision History Revision Date Version Description Author Approval History Approval Date Version Name Signature

Implementing Financial Gateway Expected Benefits with Financial Gateway: Reduction in maintenance and support costs by removing customized processes Improvements in process efficiency by eliminating the need for manual intervention Decrease in cost to implement by using standard file layouts and configuration Lowered administration costs with user-friendly interfaces for managing payment information Revision History Approval History

Implementing Financial Gateway (Cont.) Duke’s implementations included: An approach to use delivered file layouts for payment and acknowledgement files Adding new and updating existing bank accounts for Financial Gateway settlement Security for the Financial Gateway components for managing payment and acknowledgement information An approach for file transmission that included Secured VPN connections and/or Secure File Transfer Protocol (SFTP) Revision History Approval History

Implementing Financial Gateway (Cont.) The following challenges were encountered: Bank layout requirements differed from the delivered layouts, but met NACHA standards Bank requirements for processing electronic payments are different between institutions Lack of delivered layout and functionality to support Positive Payment file processing Third-party batch scheduling tool required custom processes to invoke delivered ones Internal and bank requirements for file transfer were not supported by Integration Broker Revision History Approval History

Implementing Financial Gateway (Cont.) Benefits realized include: All regular payment processing is executed in the batch schedule without manual intervention Payment administration boasts new simplified business processes for resolving payment errors and creating payment reissues The ability to make payments through intermediary banks Reduction in batch timings of over 17 percent No post-implementation issues or defects relating to Financial Gateway Revision History Revision Date Version Description Author Approval History Approval Date Version Name Signature

Implementing Financial Gateway (Cont.) Lessons learned from implementation: Initial account setup is critical for configuring the bank account integration Integrated testing requires the majority of the time from the total project lifecycle Bank layouts need to be reviewed early in the project to verify alignment with delivered layouts The Payment Administration business process will change, but should be more efficient Revision History Approval History

Implementing Financial Gateway (Cont.) Lessons learned from implementation: Each of the banking institutions where Duke Energy has checking accounts requested Positive Pay information be delivered with the ACH and Wire payment files in the NACHA 828 format Some banking institutions EDI file processors are setup and configured to produce different acknowledgement data Creating new file layouts does not negatively impact delivered functionality and is easy to implement Revision History Approval History

Agenda Company Profile PeopleSoft at Duke Energy Payment Processing Past and Present Implementing Financial Gateway Future Integration Plans Questions Revision History Approval History

Future Integration Plans Even though there are no immediate plans for integrating with new banking institutions, Financial Gateway gives Duke Energy the ability to do so quickly and cost-effectively. Revision History Revision Date Version Description Author Approval History Approval Date Version Name Signature

Agenda Company Profile PeopleSoft at Duke Energy Payment Processing Past and Present Implementing Financial Gateway Future Integration Plans Questions Revision History Revision Date Version Description Author Approval History Approval Date Version Name Signature

Questions? 30 30

Thank You 31 31

Contact Information Wes Huffman Wes.Huffman@duke-energy.com Brian Buzzard Brian.Buzzard@duke-energy.com 32 32

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