Rate/ Tariff & Plans Management

Comprehensive Utility Plans & Tariffs Scenarios

Scenario 1 – Residential Electricity Slab Rate Plan

Scenario Description A residential customer needs a tiered electricity plan where higher consumption levels are charged at increasing rates to promote energy conservation.

Objective (Why)

Encourage energy conservation through progressive pricing structure
Provide affordable base rates for essential electricity needs while discouraging excessive consumption
Generate fair revenue based on actual usage patterns

If Not Set – Business Impact

Loss of $2.3M annually from customers choosing flat-rate competitors due to lack of conservation incentives
15% increase in customer complaints about unfair billing for low-usage households
Regulatory compliance issues as 8 states now require progressive electricity pricing for residential customers

Scenario Explanation - in short Sarah Martinez, a residential customer in Phoenix, uses 850 units monthly. Under the slab rate plan:

First 300 units: $0.08/unit = $24.00
Next 300 units (301-600): $0.12/unit = $36.00
Remaining 250 units (601-850): $0.16/unit = $40.00
Total electricity charges: $100.00 Monthly bill includes $15 service charge, totaling $115.00

Audience (Why it Matters) - in short CSM → Must explain to customers how their usage affects billing tiers and help them understand why their per-unit cost changes at different consumption levels. QA → Must test slab calculations across all tier boundaries, validate correct rate application when usage spans multiple tiers, and verify accurate bill generation. Engineers/Interns → Must understand tier logic, rate calculation algorithms, and how the system automatically determines which slab rates apply to specific usage ranges.

Does it fit in SMART360 ✅ Fits perfectly - SMART360 supports slab rate configuration with unlimited tiers. Example implementation:

Utility Service: Electricity
Rate Type: Slab
Slab 1: 0-300 units at $0.08
Slab 2: 301-600 units at $0.12
Slab 3: 601+ units at $0.16
Service charges can be added as "Service-Specific Charges"

Scenario 2 – Commercial Water Fixed Rate Plan

Scenario Description A commercial business requires a predictable monthly water bill with fixed charges regardless of consumption for better budget planning.

Objective (Why)

Provide budget predictability for commercial customers with consistent water usage
Simplify billing processes and reduce meter reading frequency requirements
Generate stable revenue streams from commercial accounts

If Not Set – Business Impact

25% of commercial customers may switch to competitors offering fixed billing options
$890K annual revenue loss from businesses preferring predictable utility costs
Increased operational costs of $45K monthly for frequent meter readings and variable billing calculations

Scenario Explanation - in short Green Valley Restaurant pays a fixed monthly water charge of $180 regardless of consumption. Whether they use 2,500 gallons or 4,200 gallons, their water portion remains constant at $180. Additional service charges include $25 delivery fee and $8 administrative charge, totaling $213 monthly.

Audience (Why it Matters) - in short CSM → Must communicate to commercial clients that their bill remains constant regardless of usage variations and explain the benefits of predictable budgeting. QA → Must validate that fixed charges remain constant across different usage scenarios and verify no consumption-based calculations affect the final bill. Engineers/Interns → Must understand that fixed rate logic bypasses consumption calculations and applies predetermined charges regardless of meter readings.

Does it fit in SMART360 ✅ Fits perfectly - SMART360 supports fixed rate configuration:

Utility Service: Water
Rate Type: Fixed
Fixed Rate: $180.00 (consumption-independent)
Consumer Categories: Commercial
Service charges: Delivery Charges ($25), Admin Charges ($8)

Scenario 3 – Industrial Gas Seasonal Rate Plan

Scenario Description An industrial facility needs different gas rates during winter heating season versus summer months to reflect supply costs and demand fluctuations.

Objective (Why)

Align pricing with seasonal supply costs and market demand patterns
Encourage load balancing by incentivizing off-season usage
Maintain competitive pricing during peak demand periods while ensuring adequate revenue

If Not Set – Business Impact

$1.7M annual revenue shortfall during high-cost winter months due to fixed pricing
Loss of 12 major industrial accounts to competitors offering seasonal flexibility
Inability to pass through 35% winter supply cost increases, resulting in negative margins

Scenario Explanation - in short Midwest Steel Manufacturing consumes 85,000 cubic feet monthly. Their seasonal gas rates are:

Winter (Nov 1 - Mar 31): $0.75 per cubic foot = $63,750
Summer (Apr 1 - Oct 31): $0.55 per cubic foot = $46,750 January bill (winter rate): $63,750 + $350 capacity charge + $125 delivery fee = $64,225 July bill (summer rate): $46,750 + $350 capacity charge + $125 delivery fee = $47,225

Audience (Why it Matters) - in short CSM → Must explain to industrial customers how seasonal pricing reflects market conditions and help them plan consumption around rate periods. QA → Must test automatic rate switching on seasonal boundary dates and validate correct seasonal rate application based on billing period dates. Engineers/Interns → Must understand date-based rate logic, seasonal boundary calculations, and how the system determines which seasonal rate applies to specific billing periods.

Does it fit in SMART360 ✅ Fits perfectly - SMART360 supports seasonal rate configuration:

Utility Service: Gas
Rate Type: Seasonal
Winter Season: Nov 1 - Mar 31 at $0.75/unit
Summer Season: Apr 1 - Oct 31 at $0.55/unit
Service charges: Capacity based recovery ($350), Delivery Charges ($125)

Scenario 4 – Residential Multi-Utility Bundle Plan

Scenario Description A residential customer wants a single plan covering electricity, water, and gas services with bundled pricing and unified billing.

Objective (Why)

Increase customer retention through service bundling and convenience
Reduce billing costs by consolidating multiple utility bills into one statement
Cross-sell additional utility services to existing customer base

If Not Set – Business Impact

40% of customers may choose single-provider solutions from competitors
$3.2M annual revenue loss from customers unbundling services
Increased billing costs of $120K annually for separate billing processes across utilities

Scenario Explanation - in short The Johnson family subscribes to "Premium Residential Bundle" covering all utilities:

Electricity: 450 units at $0.11/unit = $49.50
Water: 3,200 gallons at $0.006/gallon = $19.20
Gas: 125 cubic feet at $0.52/unit = $65.00 Subtotal: $133.70, Bundle discount (5%): -$6.69 Service charges: $15 admin fee + $8 meter fee = $23.00 Total monthly bill: $150.01

Audience (Why it Matters) - in short CSM → Must explain bundled pricing benefits, discount calculations, and how multiple utility services appear on unified billing statements. QA → Must test bundle discount calculations across multiple utilities, validate service charge consolidation, and verify accurate multi-utility bill generation. Engineers/Interns → Must understand multi-utility plan configuration, discount calculation logic, and cross-utility billing integration processes.

Does it fit in SMART360 ✅ Fits perfectly - SMART360 supports multi-utility plans:

Plan can include: Electricity, Water, Gas
Each utility can have different rate types (Flat, Slab, Fixed)
Bundle discounts can be applied through service charge modifications
Unified billing through single plan structure

Scenario 5 – Commercial Electricity Time-Based Rate Plan

Scenario Description A commercial customer needs electricity rates that vary by time of day (peak/off-peak hours) to optimize energy costs during different demand periods.

Objective (Why)

Reduce grid strain by incentivizing off-peak electricity consumption
Offer cost savings opportunities for businesses with flexible operating schedules
Align pricing with actual grid demand and generation costs throughout the day

If Not Set – Business Impact

$890K annual lost savings opportunities for commercial customers
20% increase in peak-hour grid demand without price incentives to shift usage
Loss of 15 major commercial accounts to time-of-use pricing competitors

Scenario Explanation - in short Metro Office Complex consumes electricity across different time periods:

Off-Peak (10 PM - 6 AM): 800 units at $0.08/unit = $64.00
Standard (6 AM - 4 PM, 8 PM - 10 PM): 1,200 units at $0.12/unit = $144.00
Peak (4 PM - 8 PM): 400 units at $0.18/unit = $72.00 Total usage charges: $280.00 Service charges: $45 electric delivery rate + $25 distribution charges = $70.00 Monthly bill total: $350.00

Audience (Why it Matters) - in short CSM → Must help commercial customers understand time-based pricing periods and advise on consumption timing to minimize costs. QA → Must test time-based rate calculations across different hour boundaries and validate correct rate application based on actual usage timestamps. Engineers/Interns → Must understand time-period logic, hourly rate calculations, and how the system determines which time-based rate applies to specific usage intervals.

Does it fit in SMART360 ⚠️ Partial fit - SMART360 supports time-based rates but wireframe indicates "no validation for time based while creating rate":

Rate Type: Time-based is supported
Gap: System needs enhanced validation for time period conflicts
Recommendation: Implement time overlap validation similar to date validation for other rate types

Scenario 6 – Residential Water Flat Rate Plan

Scenario Description A residential customer requires a simple water plan with consistent per-gallon pricing regardless of consumption volume.

Objective (Why)

Provide transparent, easy-to-understand water billing for residential customers
Encourage water conservation through consistent per-unit pricing signals
Simplify billing calculations and customer service explanations

If Not Set – Business Impact

Customer confusion leading to 30% increase in billing inquiry calls
$150K annual cost increase for customer service to explain complex rate structures
Potential regulatory issues as flat-rate transparency is preferred for essential services like water

Scenario Explanation - in short Maria Rodriguez uses 4,850 gallons of water monthly. Under flat rate pricing: Water usage: 4,850 gallons × $0.0085/gallon = $41.23 Service charges: $12 water service fee + $3.50 meter charge = $15.50 Total monthly water bill: $56.73 Easy calculation allows Maria to predict her bill based on usage.

Audience (Why it Matters) - in short CSM → Must explain simple per-gallon pricing and help customers calculate their expected bills based on usage estimates. QA → Must validate flat rate calculations for various consumption levels and verify consistent per-unit pricing across all usage scenarios. Engineers/Interns → Must understand that flat rates apply single unit pricing regardless of consumption volume, with no tier or bracket calculations.

Does it fit in SMART360 ✅ Fits perfectly - SMART360 supports flat rate configuration:

Utility Service: Water
Rate Type: Flat
Base Unit Rate: $0.0085 per gallon
Service charges: Water Service Fees ($12), Meter Charge ($3.50)
Consumer Categories: Residential

Scenario 7 – Industrial Waste Management Fixed Monthly Plan

Scenario Description An industrial facility needs predictable monthly waste management costs with fixed pricing for budget planning and operational efficiency.

Objective (Why)

Provide cost certainty for industrial waste management budgeting
Encourage proper waste disposal through comprehensive service coverage
Generate stable revenue from industrial waste management services

If Not Set – Business Impact

$450K annual revenue loss from industries choosing variable pricing competitors
18% increase in improper waste disposal due to unpredictable cost concerns
Loss of 8 major industrial accounts requiring fixed-cost waste management solutions

Scenario Explanation - in short Pacific Manufacturing pays a fixed monthly waste management fee of $2,400 covering:

Regular waste collection (3x weekly)
Hazardous material handling
Recycling processing services
Documentation and compliance reporting Total monthly bill: $2,400 (no usage-based calculations) Additional one-time charges may apply for special waste types.

Audience (Why it Matters) - in short CSM → Must communicate comprehensive service coverage included in fixed pricing and handle any special waste requests outside the standard plan. QA → Must validate that waste management charges remain fixed regardless of volume fluctuations and verify proper service inclusion. Engineers/Interns → Must understand fixed pricing logic for waste management services and integration with special charge handling for non-standard waste types.

Does it fit in SMART360 ⚠️ Needs customization - SMART360 primarily handles metered utilities:

Waste Management not explicitly listed in utility services
Gap: Need to add Waste Management as utility service option
Workaround: Can use "Service-Specific Charges" for fixed waste management fees
Recommendation: Expand utility service categories to include waste management

Scenario 8 – Commercial Gas Slab Rate Plan

Scenario Description A commercial customer needs tiered gas pricing where larger consumption volumes receive progressively better per-unit rates.

Objective (Why)

Reward high-volume commercial gas customers with volume discounts
Encourage customer loyalty and prevent switching to competitors
Optimize revenue through tiered pricing that balances volume incentives with profitability

If Not Set – Business Impact

Loss of 25 high-volume commercial accounts worth $1.8M annually
Inability to compete with volume discount pricing from regional gas suppliers
30% reduction in commercial gas sales due to uncompetitive flat-rate pricing

Scenario Explanation - in short Downtown Restaurant Group consumes 8,500 cubic feet monthly:

First 2,000 cubic feet: $0.85/unit = $1,700
Next 3,000 cubic feet (2,001-5,000): $0.78/unit = $2,340
Next 3,000 cubic feet (5,001-8,000): $0.72/unit = $2,160
Remaining 500 cubic feet (8,001-8,500): $0.68/unit = $340 Total gas charges: $6,540 Service charges: $75 delivery + $25 distribution = $100 Monthly bill: $6,640

Audience (Why it Matters) - in short CSM → Must explain volume discount benefits to commercial customers and show how increased usage leads to lower per-unit costs. QA → Must test slab calculations for commercial gas rates and validate volume discount tiers apply correctly across usage boundaries. Engineers/Interns → Must understand commercial slab logic differs from residential progressive pricing by offering discounts rather than penalties for higher usage.

Does it fit in SMART360 ✅ Fits perfectly - SMART360 supports commercial slab rates:

Utility Service: Gas
Rate Type: Slab
Consumer Categories: Commercial
Multiple slabs with decreasing rates for volume incentives
Service charges: Delivery Charges ($75), Distribution Charges ($25)

Scenario 9 – Residential Multi-Tier Electricity Plan with Service Charges

Scenario Description A residential customer needs a comprehensive electricity plan with multiple consumption tiers, seasonal adjustments, and various service fees.

Objective (Why)

Provide detailed electricity pricing that reflects true cost structures
Encourage conservation through progressive tier pricing
Cover infrastructure and service costs through appropriate fees

If Not Set – Business Impact

$2.1M revenue shortfall from simplified pricing that doesn't recover infrastructure costs
Customer confusion about bill components leading to 45% increase in service calls
Inability to implement conservation incentives resulting in 12% higher peak demand

Scenario Explanation - in short The Chen family uses 720 units in December: Electricity tiers:

First 400 units: $0.09/unit = $36.00
Next 320 units (401-720): $0.13/unit = $41.60 Total electricity: $77.60

Service charges:

Electric delivery rate: $18.50
Distribution service charges: $12.75
Administrative fee: $8.99
Meter fee: $4.25
Late payment protection: $2.50 Total service charges: $46.99 Final monthly bill: $124.59

Audience (Why it Matters) - in short CSM → Must explain each service charge component and help customers understand how their total bill is calculated beyond just electricity usage. QA → Must validate all service charge calculations, tier pricing accuracy, and proper itemization on customer bills. Engineers/Interns → Must understand complex billing with multiple service charges, tier calculations, and how various fees are applied and displayed.

Does it fit in SMART360 ✅ Fits perfectly - SMART360 supports comprehensive service charges:

Utility Service: Electricity
Rate Type: Slab (multi-tier)
Multiple predefined service charges available:
- Electric Delivery Rate
- Distribution Service Charges
- Admin Charges, Meter Fee, Late Payment
All charges can be configured as fixed amounts

Scenario 10 – Small Business Water & Electricity Bundle

Scenario Description A small business needs combined water and electricity service with business-appropriate rates and unified billing.

Objective (Why)

Serve small business segment with appropriate utility bundling
Reduce billing complexity for small business owners
Increase revenue through multi-service customer relationships

If Not Set – Business Impact

35% of small businesses choose competitors offering utility bundling
$750K annual revenue loss from small business segment
Increased billing costs of $65K annually for separate utility billing processes

Scenario Explanation - in short Corner Coffee Shop monthly usage: Electricity: 950 units at $0.115/unit = $109.25 Water: 2,100 gallons at $0.0078/gallon = $16.38 Subtotal: $125.63

Service charges:

Electric service charge: $22.00
Water service fees: $15.50
Small business admin: $12.99
Account setup (first month): $35.00 Total with services: $211.12

Audience (Why it Matters) - in short CSM → Must communicate small business pricing benefits and explain how bundled services provide convenience and potential cost savings. QA → Must test small business rate calculations across multiple utilities and validate proper service charge application for business accounts. Engineers/Interns → Must understand business-specific pricing logic, multi-utility integration, and how small business plans differ from residential or large commercial plans.

Does it fit in SMART360 ✅ Fits perfectly - SMART360 supports small business multi-utility plans:

Consumer Categories: Commercial, Small Business
Multiple utility services: Electricity, Water
Business-appropriate service charges available
Account Setup Fees can be applied for new customers

Scenario 11 – Industrial Electricity Demand-Based Pricing

Scenario Description A large industrial customer requires electricity pricing based on peak demand periods and consumption patterns for optimal cost management.

Objective (Why)

Provide industrial customers with demand-responsive pricing
Encourage load management and grid stability through peak demand pricing
Generate appropriate revenue from high-demand industrial users

If Not Set – Business Impact

Loss of 6 major industrial accounts worth $4.2M annually
Grid instability from unmanaged industrial demand peaks
$880K annual loss from inability to charge demand-based rates

Scenario Explanation - in short Advanced Manufacturing Corp monthly usage: Peak demand: 2,500 kW at $8.50/kW = $21,250 Energy consumption: 450,000 kWh at $0.055/kWh = $24,750 Total electricity charges: $46,000

Service charges:

Electric delivery rate: $2,850
Distribution service charges: $1,200
Capacity based recovery: $750
Total regulatory charges: $425 Monthly industrial bill: $51,225

Audience (Why it Matters) - in short CSM → Must explain demand charges versus energy charges and help industrial customers understand how peak demand affects their total costs. QA → Must validate demand charge calculations, energy consumption pricing, and proper application of industrial-specific service charges. Engineers/Interns → Must understand demand-based pricing logic, peak demand calculations, and how industrial pricing differs from standard consumption-based models.

Does it fit in SMART360 ⚠️ Needs enhancement - SMART360 supports industrial rates but may need demand charge features:

Consumer Categories: Industrial (supported)
Gap: Demand-based pricing not explicitly shown in rate types
Workaround: Use service charges for demand components
Recommendation: Add demand-based rate type for industrial customers

Scenario 12 – Residential Off-Grid Solar with Grid Backup

Scenario Description A residential customer with solar panels needs net metering and backup grid electricity service for cloudy days and high-usage periods.

Objective (Why)

Support renewable energy adoption through net metering programs
Provide reliable backup service when solar generation is insufficient
Balance grid maintenance costs with renewable energy incentives

If Not Set – Business Impact

Loss of environmentally conscious customers to solar-friendly utilities
$320K annual revenue loss from customers installing solar with competitors
Regulatory compliance issues as 12 states require net metering options

Scenario Explanation - in short Green Family solar home in March: Solar generation: 850 kWh Grid consumption: 920 kWh Net usage: 70 kWh at $0.095/kWh = $6.65 Grid backup availability charge: $25.00 Solar interconnection fee: $8.50 Administrative charges: $5.99 Total monthly bill: $46.14 (Bill shows credits for excess solar generation in sunny months)

Audience (Why it Matters) - in short CSM → Must explain net metering calculations, solar credits, and how grid backup charges apply even with solar generation. QA → Must validate net usage calculations, solar credit applications, and proper handling of negative usage months. Engineers/Interns → Must understand net metering logic, bidirectional energy flow calculations, and solar interconnection billing processes.

Does it fit in SMART360 ⚠️ Significant gaps - SMART360 needs solar/net metering enhancements:

Gap: No net metering or bidirectional usage handling
Gap: No solar generation credit calculations
Recommendation: Major enhancement needed for renewable energy programs
Workaround: Could use negative service charges for solar credits, but not ideal

Scenario 13 – Unmetered Electricity Service Plan

Scenario Description A customer needs electricity service for equipment or areas where installing meters is not practical or cost-effective, requiring fixed monthly charges.

Objective (Why)

Provide electricity service for remote locations or equipment where metering is impractical
Generate revenue from unmetered connections through fixed pricing
Reduce infrastructure costs by avoiding expensive meter installations

If Not Set – Business Impact

$280K annual revenue loss from customers requiring unmetered connections choosing competitors
Loss of agricultural and remote commercial customers (18 accounts worth $165K annually)
Increased costs of $95K for unnecessary meter installations in impractical locations

Scenario Explanation - in short Rural Farm Equipment Barn requires electricity for grain dryers and equipment but meter installation would cost $8,500 due to remote location. Monthly unmetered service: Fixed electricity charge: $185.00 (estimated for typical farm equipment usage) Electric delivery rate: $45.00 Distribution service charges: $28.50 Administrative fee: $12.99 Total monthly bill: $271.49 No meter readings required - consistent monthly billing.

Audience (Why it Matters) - in short CSM → Must explain to customers why unmetered service uses fixed pricing and help them understand cost-effectiveness versus meter installation. QA → Must validate that unmetered services apply fixed charges correctly without any consumption-based calculations or meter reading requirements. Engineers/Interns → Must understand unmetered service logic where fixed charges replace consumption calculations and no meter data integration is required.

Does it fit in SMART360 ✅ Fits perfectly - SMART360 explicitly supports unmetered services:

Business rule states: "The Unmetered utility charges should be visible in service charges and the rate name should be shown in the rate field"
Rate comes from utility service selection
Fixed pricing structure supports unmetered billing

Scenario 14 – Stormwater Management Fee Plan

Scenario Description Property owners need stormwater management service charges based on impervious surface area to fund municipal drainage and flood control systems.

Objective (Why)

Fund critical stormwater infrastructure maintenance and improvements
Ensure fair cost allocation based on property impact on stormwater systems
Comply with EPA stormwater management regulations

If Not Set – Business Impact

$1.2M annual shortfall in stormwater infrastructure funding
Potential EPA fines of $500K for inadequate stormwater management compliance
Flood damage liability increasing insurance costs by $180K annually

Scenario Explanation - in short Metro Shopping Center has 85,000 sq ft of impervious surface (parking lots, building roofs): Stormwater fee calculation: 85,000 sq ft ÷ 1,000 × $2.15 = $182.75 Additional charges:

Stormwater system maintenance: $45.00
Administrative processing: $8.50
Environmental compliance fee: $15.25 Total monthly stormwater bill: $251.50 Quarterly billing cycle = $754.50 per quarter

Audience (Why it Matters) - in short CSM → Must explain stormwater fee calculations based on property characteristics and educate customers about environmental compliance requirements. QA → Must validate stormwater fee calculations based on property data and verify proper application of environmental service charges. Engineers/Interns → Must understand property-based fee calculations, environmental compliance integration, and stormwater management billing logic.

Does it fit in SMART360 ✅ Fits perfectly - SMART360 includes stormwater fees:

Predefined service charge: "Strom Water Fee" (note: appears to be typo for "Storm Water Fee")
Can be configured as fixed or variable charge
Quarterly billing frequency supported

Scenario 15 – Large Commercial Multi-Utility with Discounts

Scenario Description A large commercial customer receives volume discounts and negotiated rates across multiple utility services with complex discount structures.

Objective (Why)

Retain high-value commercial customers through competitive pricing
Maximize revenue from large accounts while maintaining profitability
Provide comprehensive utility solutions for major commercial clients

If Not Set – Business Impact

Loss of 8 major commercial accounts worth $3.8M annually
Inability to compete with bundled commercial utility offerings
$450K annual revenue reduction from customers negotiating individual utility contracts

Scenario Explanation - in short Regional Hospital Complex monthly usage: Electricity: 125,000 kWh × $0.089/kWh = $11,125.00 Water: 28,500 gallons × $0.0065/gallon = $185.25 Gas: 15,200 cubic feet × $0.68/cubic ft = $10,336.00 Subtotal: $21,646.25 Large customer discount (8%): -$1,731.70

Service charges:

Electric delivery rate: $875.00
Water service fees: $125.00
Distribution charges: $285.00
Large account management: $150.00 Total monthly bill: $21,349.55

Audience (Why it Matters) - in short CSM → Must manage complex large customer relationships, explain discount structures, and coordinate multi-utility service delivery. QA → Must validate volume discount calculations across multiple utilities and verify complex billing with multiple service components. Engineers/Interns → Must understand large customer discount logic, multi-utility rate integration, and complex commercial billing processes.

Does it fit in SMART360 ✅ Fits well with customization:

Multi-utility plans supported
Volume discounts can be implemented through service charge modifications
Large customer service charges available
Complex billing calculations supported

Scenario 16 – Prepaid Utility Service Plan

Scenario Description Customers need prepaid utility service where they pay in advance and service is disconnected when credit balance reaches zero.

Objective (Why)

Reduce bad debt and collection costs through prepaid model
Provide service options for customers with credit challenges
Improve cash flow through advance payment collection

If Not Set – Business Impact

$890K annual bad debt from customers with payment difficulties
Collection costs of $125K annually for delinquent accounts
Loss of 450 potential customers who cannot qualify for standard credit terms

Scenario Explanation - in short James Wilson has credit challenges and chooses prepaid electricity: Current balance: $125.00 Monthly usage estimate: 650 units × $0.095/unit = $61.75 Service charges: $18.50 delivery + $8.99 admin = $27.49 Estimated monthly cost: $89.24 Remaining balance after month: $35.76 System sends low balance alert at $25.00 threshold Automatic disconnection if balance reaches $0.00

Audience (Why it Matters) - in short CSM → Must help prepaid customers understand balance management, usage monitoring, and payment options to avoid service disconnection. QA → Must test prepaid balance calculations, automatic disconnect thresholds, and customer notification systems for low balances. Engineers/Interns → Must understand prepaid account logic, real-time balance tracking, and automated service control based on account credits.

Does it fit in SMART360 ⚠️ Major gap - SMART360 lacks prepaid functionality:

No prepaid account management features shown
No real-time balance tracking or usage monitoring
Gap: Prepaid requires significant system enhancement
Recommendation: Major development needed for prepaid utility services

Scenario 17 – Municipal Water with Late Payment Penalties

Scenario Description Municipal water customers face progressive late payment penalties and potential service disconnection for overdue accounts.

Objective (Why)

Encourage timely payment through progressive penalty structure
Minimize collection costs and bad debt through payment incentives
Maintain cash flow for essential municipal water services

If Not Set – Business Impact

$325K annual revenue loss from delayed payments without penalty incentives
Increased collection costs of $85K annually for overdue account management
Service disruption affecting 12% of municipal customers due to poor payment timing

Scenario Explanation - in short City resident Lisa Park's water bill payment timeline: Original bill (due Feb 15): $67.85 Late payment fee (Feb 16-25): $12.50 (first 10 days) Additional penalty (Feb 26-Mar 7): $25.00 (next 10 days) Final notice fee (Mar 8+): $35.00 Disconnect notice fee: $45.00 Total if paid March 10: $67.85 + $12.50 + $25.00 + $35.00 = $140.35 Potential additional: $45.00 disconnect fee if not paid by March 15

Audience (Why it Matters) - in short CSM → Must explain late payment fee structure to customers and help them understand escalating penalties for overdue payments. QA → Must validate progressive late fee calculations, proper fee timing, and accurate penalty application based on payment dates. Engineers/Interns → Must understand late payment logic, automated fee calculations, and progressive penalty structures based on overdue periods.

Does it fit in SMART360 ✅ Fits perfectly - SMART360 includes late payment features:

Predefined service charge: "Late Payment"
Can be configured as progressive fees
System can track payment timing and apply appropriate penalties

Scenario 18 – Electricity with Renewable Energy Credits

Scenario Description Environmentally conscious customers purchase renewable energy credits (RECs) as an add-on to standard electricity service.

Objective (Why)

Provide environmental sustainability options for eco-conscious customers
Generate additional revenue through renewable energy credit sales
Support renewable energy development through customer participation

If Not Set – Business Impact

Loss of 280 environmentally conscious customers to green energy competitors
$156K annual revenue loss from REC sales opportunities
Reputational damage affecting customer acquisition in sustainability-focused market segments

Scenario Explanation - in short Environmental advocate Susan Chen opts for 100% renewable energy credits: Standard electricity: 485 kWh × $0.098/kWh = $47.53 Renewable energy credits: 485 kWh × $0.025/kWh = $12.13 Service charges:

Electric delivery rate: $22.50
Distribution service charges: $15.75
Green energy processing: $3.99 Total monthly bill: $101.90 Certificate shows 485 kWh from renewable sources

Audience (Why it Matters) - in short CSM → Must educate customers about renewable energy credits, environmental benefits, and additional costs for green energy options. QA → Must validate REC calculations, proper credit application, and accurate green energy billing components. Engineers/Interns → Must understand renewable energy credit logic, environmental tracking, and add-on service billing integration.

Does it fit in SMART360 ✅ Fits with service charge configuration:

RECs can be implemented as additional service charges
Variable pricing based on consumption (kWh-based)
Green energy fees can be added to standard electricity plans

Scenario 19 – Security Deposit Management Plan

Scenario Description New customers and those with credit issues must pay security deposits that are managed, tracked, and potentially refunded over time.

Objective (Why)

Mitigate credit risk through security deposit collection
Provide service access for customers with credit challenges
Maintain proper escrow management for customer deposits

If Not Set – Business Impact

$425K annual bad debt from customers without adequate credit protection
Regulatory compliance issues for improper deposit handling
Loss of potential customers who need deposit options to establish service

Scenario Explanation - in short New customer Mike Torres establishes service with credit challenges: Required security deposit: $225.00 (based on estimated usage) Monthly electricity bill: $89.45 Security deposit status:

Held in interest-bearing account: $225.00
Accrued interest (annual 2%): $0.38/month
Eligible for refund after 12 months of on-time payments
Applied to final bill upon service termination Deposit refund conditions: 12 consecutive on-time payments

Audience (Why it Matters) - in short CSM → Must explain security deposit requirements, refund conditions, and interest accrual to customers establishing new service. QA → Must validate security deposit calculations, interest accrual, and proper deposit management throughout customer lifecycle. Engineers/Interns → Must understand deposit tracking logic, escrow account management, and automated refund processing based on payment history.

Does it fit in SMART360 ✅ Fits perfectly - SMART360 includes security deposits:

Predefined service charge: "Security Deposit"
System can track deposits and manage refunds
Account management supports deposit lifecycle

Scenario 20 – Bulk Billing for Apartment Complex

Scenario Description Property management companies need master-metered utility billing for apartment complexes with allocation to individual units.

Objective (Why)

Provide utility solutions for multi-unit residential properties
Enable property managers to allocate costs fairly among tenants
Reduce infrastructure costs through master metering

If Not Set – Business Impact

Loss of 45 property management accounts worth $1.8M annually
Inability to serve multi-unit residential market segment
Property managers choose competitors offering bulk billing solutions

Scenario Explanation - in short Sunset Apartments (24 units) master meter billing: Total complex usage: 28,500 kWh × $0.092/kWh = $2,622.00 Complex service charges: $185.00 Total master bill: $2,807.00

Property manager allocation (per unit): Average per unit: $2,807.00 ÷ 24 units = $116.96 Actual allocation by square footage:

1BR units (650 sq ft): $98.50
2BR units (850 sq ft): $128.75
3BR units (1,100 sq ft): $166.50 Property manager handles individual tenant billing

Audience (Why it Matters) - in short CSM → Must work with property managers to explain master billing, allocation methodologies, and tenant billing responsibilities. QA → Must validate master meter billing calculations and ensure proper integration with property management allocation systems. Engineers/Interns → Must understand bulk billing logic, master meter configurations, and property management billing interfaces.

Does it fit in SMART360 ⚠️ Partial fit - SMART360 can handle master billing:

Large commercial billing capabilities support bulk usage
Gap: No built-in unit allocation or sub-metering features
Recommendation: Property manager handles allocation outside system
Master billing works, tenant allocation requires external management