Utilities Gain New Tool to Set Deposits

Consumers Should Benefit, Too, With The New Equifax System

ATLANTA, February 28, 1996 -- Utilities providing gas, electric and water service now have a new tool to help determine if consumers signing up for service should be asked to put down a service deposit.

The Energy Risk Assessment Model(sm), the first risk-assessment scoring system that predicts the payment behavior of utility customers, was announced today by Equifax. The Energy Risk Assessment Model is the latest in a line of new products developed specifically for utilities and telecommunications companies, working in cooperation with those industries.

"The Energy Risk Assessment Model uses objective criteria to evaluate risk, reducing reliance on judgmental evaluation of customers," said Val M. Perry, senior vice president, Equifax Telecommunications and Utilities Services. "Not only does it reduce subjectivity, but it also should make things easier for hundreds of thousands of consumers who pay their utility bills.

" We developed this Energy Model using data from the industry itself, just as we did in 1995 with the Telco Risk Assessment Model, and we know this approach works," Perry added. "We worked with six major energy utility companies to obtain the data and then validated the model, constructed by our Decision Systems group, with two other utilities."

The Energy Model offers some unique advantages:

• Sets Deposits Equitably. Standardized, non-judgmental risk assessment
• Predicts Potential for Delinquency. Provides immediate risk score and/or action message based on credit classification.
• Broad Consumer Coverage. Scores more applicants for service.
• Accurate Customer Segmentation. Allows applications of specific strategies to targeted groups for deposits, account monitoring and cross selling.
• Fast Delivery of Information. Provides easy to understand information immediately at the point of application, speeding the decision-making process.

The Energy Model assists throughout the credit cycle -- acquisition, management and collection. It is available with four major Equifax products -- POSITIVE ID(sm), ACROFILE(tm), ACROFILE Plus(sm) and ACROSelect(sm) and can be delivered by DAT, System-to-System, Tape, Voice Response Unit or by ETUS' unique delivery system, MultiVisionSM. The Energy Risk Assessment Model is available now. For more information, please call 1-800-879-1025.