Rate Modeling Process
EDIFICE rate-modeling functions allow you to set up model rates using proposed rate change information and then produces estimates of revenues from new rates by using your customer historical information. EDIFICE Rate-Modeling reports can be used to simulate, evaluate, and compare different rate structures before implementing changes. One report compares current rates for customer usage and revenues with proposed rate models. another report analyzes customer historical usage and breaks customers into usage groups so you can evaluate the effects of proposed rate changes. All your step or tier rates are taken into consideration, letting you do "what if" analysis on your historical usage for specific date ranges. Rate-Modeling can be used to provide the PUC with information on requested rate increases. When the proposed rates are approved, you can use the Model-ration Utility to automatically move the new rates to your rate tables and to your transaction codes.
When the new rates are approved, the Model-ration Utility can automatically move them to your rate tables.
1. Add the proposed new billing
rates to the appropriate model
rate tables.
Note: For every Rate
Table you maintain you need to set up a corresponding Model-Rate Table
with a Model-Rate ID that matches the associated Rate ID.
For example, if you have Rate Table ID of 004
then you will create a Model-Rate ID of 004.
For more information about billing rates and rate tables, see Rate Table Maintenance.
2. Add the proposed model minimum charge and model minimum usage to the Transaction Codes.
a. Maintain model minimum charge
b. Maintain model minimum usage, if applicable
3. Run the following rate model analysis reports:
a. Simple Detail Analysis report - reports and compares current rates for customer usages and revenues with proposed model-rates.
b. Usage Analysis report - reports customer historical usage and breaks customers into usage groups so you can evaluate the effects of proposed rate changes.
4. Approve the new rates.
5. Run the Pro-Ration Utility to move the current rates to the Pro-rate tables if you need to pro-rate customer bills because of a rate change in the middle of a billing cycle.
6. Run the Model-Ration Utility to move the model rates to the rate tables after they have been approved and to update the minimum charge and minimum usage on the appropriate transaction codes..