Four Bay Area Utilities Say, "No More Checks!"

Business Wire, April 30, 1997

SAN FRANCISCO--(BUSINESS WIRE)--April 30, 1997--During the next 90 days, Pacific Bell, Pacific Gas and Electric Co., East Bay Municipal Utility District and Great Oaks Water Co. will be cooperating on a campaign to introduce their customers to the world of Direct Payment, instead of check payment.

The utilities will be supported by the Federal Reserve Bank of San Francisco and the members of the Western Payments Alliance (WesPay), a trade association for financial institutions participating in the Automated Clearing House (ACH). "Direct Payment saves consumers time and money," commented Peter Yeatrakas, WesPay president. "With Direct Payment, there are no checks to write, envelopes to address, or stamps to buy."

During this joint utility promotion, the participating utilities will include sign-up forms in their billing statements to approximately three million San Francisco Bay Area customers. By completing the form, customers can authorize their utilities to deduct the amount they owe directly from their checking accounts.

With a single signature, a customer will be able to designate any of the four listed utilities for payment of regular gas, electric, phone or water bills. Once enrolled in the service, customers will receive billing statements at the normal time, showing the amount due and when that amount will be deducted from the checking account. The subsequent utility bill(s) and the bank statement will reflect the payment. If customers have questions about their bills, or want to revoke the service, they can contact the utilities directly.

Customers benefit from saving time and money with Direct Payment. Participating billers benefit from reduced collection costs, improved cash flow, and customer retention. Of the approximately 900 million bills paid by Direct Payment in the United States, 50 percent are for insurance premiums, with the remainder split evenly among mortgage, utility, auto and other payments. Direct Payments are processed through the Automated Clearing House (ACH), which is the same network used for Direct Deposit of Social Security benefits and employee payrolls.

CONTACT: WesPay

Dianna Weston, 415/871-8762

or

Federal Reserve Bank of San Francisco

Bill Bennett, 503/221-5793

or

Pacific Gas and Electric Co.

Diana Gapuz, 415/973-5914

or

Pacific Bell

Rebecca Weill, 510/823-0326

or

East Bay Municipal Utility District

Brian McCrea, 510/287-0134

or

Great Oaks Water Co.

Dan L. Stockton, 408/227-9540

or

Pacific Services Federal Credit Union

Ann Lewin, 510/246-6252

or

Patelco

Paula Randolph, 415/442-7172