PeopleSoft Financial Gateway: Duke Energy’s Story

1. PeopleSoft Financial Gateway: Duke Energy’s Story • Presented by: • Wes Huffman, IT Architecture and Project Management • Brian Buzzard, PeopleSoft Application Support

2. Agenda • Company Profile • PeopleSoft at Duke Energy • Payment Processing Past and Present • Implementing Financial Gateway • Future Integration Plans • Questions

3. Agenda • Company Profile • PeopleSoft at Duke Energy • Payment Processing Past and Present • Implementing Financial Gateway • Future Integration Plans • Questions

4. 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

5. 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

6. Company Profile (Cont.) North American Generation Facilities

7. Company Profile (Cont.) Duke Energy International Facilities

8. Agenda • Company Profile • PeopleSoft at Duke Energy • Payment Processing Past and Present • Implementing Financial Gateway • Future Integration Plans • Questions

9. PeopleSoft at Duke Energy

10. 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

11. PeopleSoft at Duke Energy (Cont.)

12. Agenda • Company Profile • PeopleSoft at Duke Energy • Payment Processing Past and Present • Implementing Financial Gateway • Future Integration Plans • Questions

13. 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.

14. 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

15. Payment Processing Past and Present (Cont.)

16. 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

17. Payment Processing Past and Present (Cont.)

18. 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

19. Payment Processing Past and Present (Cont.)

20. Agenda • Company Profile • PeopleSoft at Duke Energy • Payment Processing Past & Present • Implementing Financial Gateway • Future Integration Plans • Questions

21. 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

22. 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)

23. 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

24. 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

25. 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

26. 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

27. Agenda • Company Profile • PeopleSoft at Duke Energy • Payment Processing Past and Present • Implementing Financial Gateway • Future Integration Plans • Questions

28. 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.

29. Agenda • Company Profile • PeopleSoft at Duke Energy • Payment Processing Past and Present • Implementing Financial Gateway • Future Integration Plans • Questions

30. Questions?

31. Thank You

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

33. Did you register through Quest? You are now a member!Continue the education ALL YEAR: • Regional Education Conferences: • Northeast: July 20-21 • West: Aug. 16-17 • Midwest: Nov. 7-8 • Online Learning Series: • Business Intelligence: May11-27 • HCM: Aug. 9-25 • Financials: Sept. 8-27 • Upgrades: Oct. 13-27 • Year-End: Nov. 3-15 Plus 200+ OnDemand Online Sessions Save by using the member rate! www.questdirect.org