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Rate/ Tariff & Plans Management

Improved Utility Scenarios - SMART360 Format

Scenario 1 – ResidentialProgressive Electricity SlabConservation Rate PlanPricing

Scenario Description A residential customer needs arequires tiered electricity planpricing wherethat increases with higher consumption levels are charged at increasing rates to promote energy conservation.conservation while keeping basic usage affordable.

Objective (Why)

  • EncourageBusiness energyGoal: 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 while encouraging responsible consumption behavior
  • Consumer Goal: Access affordable electricity for essential needs while understanding cost impacts of excessive usage
  • Conservation Goal: Reduce peak demand and promote energy efficiency through price signals that reward conservation

If Not Set – Business Impact

  • Revenue Loss: ofPotential $2.3M annually from customers choosing flat-rate competitors dueoffering tosimpler lackpricing of conservation incentivesstructures
  • Customer Dissatisfaction: 15% increase in customerbilling complaints about unfair billing forfrom low-usage households feeling penalized by flat-rate pricing
  • Regulatory Risk: Non-compliance issues as 8 states now requiremandate progressive residential electricity pricing for residential customersconservation

Scenario Explanation - in short Sarah Martinez, a residentialPhoenix customer in Phoenix,resident, uses 850 unitskWh monthly. UnderHer theprogressive slab rate plan:

  • Firstcalculation: Tier 1 (0-300 kWh): 300 units:× $0.08/unit08 = $24.00
  • Next00, Tier 2 (301-600 kWh): 300 units (301-600):× $0.12/unit12 = $36.00
  • Remaining00, Tier 3 (601-850 kWh): 250 units (601-850):× $0.16/unit16 = $40.00
  • 00. Total electricity charges: $100.00. Additional service charges include $15.00 Monthlyconnection fee, bringing her total monthly bill includes $15 service charge, totalingto $115.00
00. The tiered structure incentivizes Sarah to reduce usage to stay in lower-cost tiers.

Audience (Why it Matters) - in short 

  • CSM →: Must explain to customers like Sarah how their usage affects billing tierstiers, demonstrate cost savings opportunities through conservation, and help themcustomers understand why their per-unit costcosts changesincrease at differenthigher consumption levels. levels
  • QA →: Must testvalidate slab calculations across all tier boundaries,boundaries validate(especially correctat 300 and 600 kWh breakpoints), verify accurate rate application when usage spans multiple tiers, and verify accurateensure bill generation.generation correctly itemizes tier-based charges
  • Engineers/Interns →: Must understand progressive tier logic, automated rate calculation algorithms, and how the system automatically determines which slab rates apply to specific usage ranges.

    ranges without manual intervention

Does it fit in SMART360 

✅ Fits perfectly in SMART360. -Here's SMART360the supports slab rate configuration with unlimited tiers. Exampledetailed implementation:

Step-by-Step Implementation:

  1. Create Progressive Residential Electricity Plan
    • Basic Details: Plan Name "Progressive Residential Electricity", Short Name "PRE", Monthly billing, 5% tax
    • Consumer Categories: Select "Residential" → "Single Family" + "Multi-Family"
    • Utility Service:Services: Electricity
    • Rate Type: Slab"Slab"
    • Rate Configuration:
      • Slab 1: 0-From 0 To 300 units at $0.0808/unit
      • Slab 2: 301-From 301 To 600 units at $0.1212/unit
      • Slab 3: 601+From units601 To unlimited at $0.1616/unit
    • Service Charges: Connection Fee $15.00 (Fixed, Service-Specific for Electricity)

The system's slab rate functionality perfectly supports unlimited consumption tiers with progressive pricing, and service charges can be addedconfigured as "Service-Specificfixed Charges"amounts per the business rules.

Scenario 2 – Commercial Fixed Water FixedBudget Rate PlanPlanning

Scenario Description A commercial business requires aneeds predictable monthly water billcosts withthrough fixed chargespricing regardless of consumption for betteraccurate budget planning.forecasting and simplified operations.

Objective (Why)

  • ProvideBusiness budgetGoal: predictability for commercial customers with consistent water usage
  • Simplify billing processes and reduce meter reading frequency requirements
  • Generate stablestable, predictable revenue streams from commercial water accounts while reducing billing complexity
  • Consumer Goal: Enable accurate monthly budget planning with consistent water costs regardless of seasonal usage fluctuations
  • Operational Goal: Eliminate meter reading frequency requirements and reduce variable billing calculation overhead

If Not Set – Business Impact

  • Customer Attrition: 25% of commercial customers may switch to competitors offering fixed billing optionsconvenience
  • Revenue Instability: $890K annual revenue loss from businesses preferringprioritizing predictable utility costsexpenses for financial planning
  • IncreasedOperational operationalCosts: costs ofAdditional $45K monthly for frequent meter readings and complex variable billing calculationsadministration

Scenario Explanation - in short Green Valley RestaurantRestaurant, a busy downtown establishment, pays a fixed$180.00 monthly for water charge of $180 regardless of consumption. Whether they use 2,500 gallons during slow winter months or 4,200 gallons,gallons during peak summer season, their water portioncharge remains constant at $180.constant. Additional fixed service charges include $2525.00 delivery fee and $88.00 administrative charge,processing, totaling $213213.00 monthly. This predictability allows the restaurant to budget accurately and focus on operations rather than utility cost management.

Audience (Why it Matters) - in short 

  • CSM →: Must communicate to commercial clients like Green Valley Restaurant that theirbills bill remainsremain constant regardless of usage variations andvariations, explain thebudgeting benefits of predictablefixed budgeting.pricing, and handle questions about cost-effectiveness during high-usage periods
  • QA →: Must validate that fixed charges remain constantexactly $180.00 across differentall usage scenarios and(from 1,000 to 10,000+ gallons), verify no consumption-based calculations affect the final bill.bills, and ensure billing system bypasses meter reading requirements
  • Engineers/Interns →: Must understand that fixed rate logic completely bypasses consumption calculations andcalculations, applies predetermined charges regardless of actual meter readings.

    readings, and requires no usage validation or tier processing

Does it fit in SMART360 

✅ Fits perfectly in SMART360. -Here's SMART360the supportsdetailed fixed rate configuration:implementation:

Step-by-Step Implementation:

  1. Create Commercial Fixed Water Plan
    • Basic Details: Plan Name "Commercial Fixed Water Plan", Short Name "CFWP", Monthly billing, 7% tax
    • Consumer Categories: Select "Commercial" → "Restaurant" + "Retail"
    • Utility Service:Services: Water
    • Rate Type: Fixed"Fixed"
    • Rate Configuration: Fixed Rate:Rate $180.00 (consumption-independent)
    • Consumer Categories: Commercial
    • Service charges: Charges:
      • Delivery Charges $25.00 ($25),Fixed, Common)
      • Admin Charges $8.00 ($8)Fixed, Common)

The system's fixed rate type perfectly supports consumption-independent pricing, and the predefined service charges align with business requirements.

Scenario 3 – Industrial Seasonal Gas SeasonalCost Rate PlanManagement

Scenario Description An industrial facility needsrequires different gas ratespricing during winter heating season versus summer months to reflect supply costscost fluctuations and seasonal demand fluctuations.patterns.

Objective (Why)

  • Business Goal: Align gas pricing with seasonal supply costs and market demand patternsto maintain competitive margins while ensuring adequate revenue
  • Consumer Goal: Access fair pricing that reflects actual market conditions while enabling seasonal operational planning
  • Infrastructure Goal: Encourage load balancing by incentivizing off-season usage
  • Maintain competitiveand pricing duringmanaging peak winter demand periods while ensuring adequate revenue

If Not Set – Business Impact

  • Revenue Shortfall: $1.7M annual revenue shortfallloss during high-cost winter months due to fixedinability pricingto pass through supply cost increases
  • Customer Loss: Loss of 12 major industrial accounts to competitors offering seasonal pricing flexibility and market-responsive rates
  • InabilityMargin Erosion: Unable to pass throughrecover 35% winter supply cost increases, resulting in negative margins during peak heating season

Scenario Explanation - in short Midwest Steel Manufacturing consumes 85,000 cubic feet monthly.monthly Theirwith seasonal gasrate ratesvariations. are:

  • Winter pricing (NovNovember 1 - MarMarch 31): 85,000 × $0.75 per cubic foot = $63,750
  • 750. Summer pricing (AprApril 1 - OctOctober 31): 85,000 × $0.55 per cubic foot = $46,750750. January bill (winter rate)winter): $63,750 + $350 capacity charge + $125 delivery fee = $64,225225. July bill (summer rate)summer): $46,750 + $350 capacity charge + $125 delivery fee = $47,225
225. This $17,000 monthly difference reflects true seasonal supply costs and enables better industrial planning.

Audience (Why it Matters) - in short 

  • CSM →: Must explain to industrial customers like Midwest Steel how seasonal pricing reflects actual market conditions andconditions, help them plan consumption and budgets around rate periods.periods, and educate about supply cost fluctuations driving price changes
  • QA →: Must test automatic rate switching precisely on seasonal boundary dates (Nov 1 and Apr 1), validate correct seasonal rate application based on billing period dates.dates, and verify service charges remain consistent across seasons
  • Engineers/Interns →: Must understand date-based seasonal rate logic, seasonalautomated boundary calculations,calculations for rate transitions, and how the system determines which seasonal rate applies to specific billing periods.

    periods without manual intervention

Does it fit in SMART360 

✅ Fits perfectly in SMART360. -Here's SMART360the supportsdetailed seasonal rate configuration:implementation:

Step-by-Step Implementation:

  1. Create Industrial Seasonal Gas Plan
    • Basic Details: Plan Name "Industrial Seasonal Gas Plan", Short Name "ISGP", Monthly billing, 6% tax
    • Consumer Categories: Select "Industrial" → "Manufacturing"
    • Utility Service:Services: Gas
    • Rate Type: Seasonal"Seasonal"
    • Rate Configuration:
      • Winter Season: NovNovember 1 - MarMarch 31 at $0.75/unitcubic foot
      • Summer Season: AprApril 1 - OctOctober 31 at $0.55/unitcubic foot
    • Service charges: Charges:
      • Capacity based recovery $350.00 ($350),Fixed, Service-Specific)
      • Delivery Charges $125.00 ($125)Fixed, Service-Specific)

The system's seasonal rate functionality handles date-based transitions automatically, and the predefined service charges support industrial billing requirements.

Scenario 4 – Residential Multi-Utility Convenience Bundle Plan

Scenario Description A residential customer wants aunified singlebilling planand coveringservice management for electricity, water, and gas servicesthrough a single comprehensive plan with bundled pricing and unified billing.benefits.

Objective (Why)

  • Business Goal: Increase customer retention through service bundling while reducing separate billing costs and conveniencecross-selling additional utilities
  • Consumer Goal: Simplify utility management with one bill, one customer service contact, and potential cost savings through bundling
  • Operational Goal: Reduce billing administration costs by consolidating multiple utility bills into oneunified statement
  • Cross-sell additional utility services to existing customer basestatements

If Not Set – Business Impact

  • Customer Defection: 40% of customers may choose single-provider comprehensive solutions from competitorscompetitive utilities
  • Revenue Loss: $3.2M annual revenue lossreduction from customers unbundling services and choosing different providers for each utility
  • IncreasedAdministrative billingCosts: costs ofAdditional $120K annually for maintaining separate billing processesprocesses, customer service, and account management across utilities

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

  • Electricity:household utilities. Monthly usage breakdown: Electricity 450 unitskWh at× $0.11/unit11 = $49.50
  • Water:50, Water 3,200 gallons at× $0.006/gallon006 = $19.20
  • Gas:20, Gas 125 cubic feet at× $0.52/unit52 = $65.0000. Subtotal: $133.70,70. Bundle discount (5%): -$6.6969. Service charges: $1515.00 admin fee + $88.00 meter fee = $23.0000. Total unified monthly bill: $150.01
01. The family enjoys simplified billing, single customer service contact, and automatic 5% savings.

Audience (Why it Matters) - in short 

  • CSM →: Must explain bundled pricing benefits,benefits to families like the Johnsons, demonstrate discount calculations,calculations clearly, and howhandle multiple multi-utility service issues through coordinated support across all services appear on unified billing statements.
  • QA →: Must test bundle discount calculations across multipleall utilities,three utilities simultaneously, validate service charge consolidation,consolidation properly, and verify accurate multi-utility bill generation.generation with correct itemization
  • Engineers/Interns →: Must understand multi-utility plan configuration,configuration allowing multiple rate types within single plans, discount calculation logic,logic applied to combined usage, and cross-utility billing integration processes.

    processes

Does it fit in SMART360 

✅ Fits perfectly in SMART360. -Here's SMART360the supportsdetailed multi-utility plans:implementation:

Step-by-Step Implementation:

  1. Create Premium Residential Bundle Plan
    • Basic Details: Plan canName include:"Premium Electricity,Residential Water,Bundle", GasShort Name "PRB", Monthly billing, 5% tax
    • EachConsumer utilityCategories: canSelect have"Residential" different→ rate"Single typesFamily" + "Multi-Family"
    • Utility Services: Multiple selection
      • Electricity: Rate Type "Fixed Rate", Rate Name "Bundle Electric" (Flat,$0.11/unit)
      • Water: Slab,Rate Fixed)Type "Fixed Rate", Rate Name "Bundle Water" ($0.006/gallon)
      • Gas: Rate Type "Fixed Rate", Rate Name "Bundle Gas" ($0.52/cubic foot)
    • Service Charges:
      • Admin Charges $15.00 (Fixed, Common)
      • Meter Fee $8.00 (Fixed, Common)
      • Bundle discountsDiscount -$6.69 (can be appliedconfigured throughas negative service charge modificationsbased on 5% of usage subtotal)
      • Unified

The billingsystem's throughmulti-utility support enables single plan structureconfiguration across all three services, with service charges handling both fees and discounts.

Scenario 5 – Commercial Electricity Time-Based RateElectricity PlanOptimization

Scenario Description A commercial customer needs electricity rates that varyvarying by time of day (peak/off-peakpeak/standard hours) to optimize energy costs duringand differentshift usage to lower-demand periods.

Objective (Why)

  • Business Goal: Reduce grid strain bythrough incentivizingdemand off-peakmanagement electricitypricing consumptionwhile offering cost optimization opportunities for flexible businesses
  • OfferConsumer Goal: Access significant cost savings opportunitiesby forshifting businesseselectricity withusage flexibleto operatingoff-peak scheduleshours when operationally feasible
  • Grid Goal: Align pricing with actual generation costs and grid demand and generation costspatterns throughout the24-hour daycycles

If Not Set – Business Impact

  • Lost Savings: $890K annual lostmissed savings opportunities for commercial customers unable to benefit from time-based pricing
  • Grid Strain: 20% increase in peak-hour grid demand without price incentives to shiftencourage usageload shifting to off-peak periods
  • Competitive Loss: Loss of 15 major commercial accounts to utilities offering time-of-use pricing competitorsflexibility and cost optimization

Scenario Explanation - in short Metro Office Complex consumesstrategically manages electricity usage across different time periods:

  • periods. Off-Peak (10 PM - 6 AM): 800 unitskWh at× $0.08/unit08 = $64.00
  • 00. Standard hours (6 AM - 4 PM, 8 PM - 10 PM): 1,200 unitskWh at× $0.12/unit12 = $144.00
  • 00. Peak hours (4 PM - 8 PM): 400 unitskWh at× $0.18/unit18 = $72.0000. Total usage charges: $280.0000. Service charges: $4545.00 electric delivery rate + $2525.00 distribution charges = $70.0000. Monthly bill total:bill: $350.00. By shifting 200 kWh from peak to off-peak, they could save $20.00
 monthly.

Audience (Why it Matters) - in short 

  • CSM →: Must help commercial customers like Metro Office Complex understand time-basedtime pricingperiod periodspricing, provide usage optimization recommendations, and adviseexplain onpotential consumptionsavings timingthrough tooperational minimizeschedule costs. adjustments
  • QA →: Must test time-based rate calculations across different hour boundaries and(6 AM, 4 PM, 8 PM, 10 PM transitions), validate correct rate application based on actual usage timestamps.timestamps, and verify accurate peak/off-peak categorization
  • Engineers/Interns →: Must understand time-period logic,logic with multiple daily transitions, hourly rate calculations,calculation processes, and how the system determines which time-based rate applies to specific usage intervals.

    intervals throughout 24-hour cycles

Does it fit in SMART360 

⚠️ Partial fit - SMART360 supports time-based rates but wireframehas indicatesvalidation gaps:

Current Capability:

  • Rate Type: "Time-based" is explicitly supported in the system
  • Multiple time periods can be configured within a single rate structure
  • Commercial consumer categories are fully supported

Gap Identified:

  • Business rules state: "there is no validation for time based while creating rate":

    • Rate Type: Time-based is supported
    • Gap: System needs enhanced validation for time period conflicts and overlaps

    Implementation with Workaround:

    1. Create Commercial Time-Based Electricity Plan
      • Basic Details: Plan Name "Commercial Time-Based Electricity", Short Name "CTBE", Monthly billing, 8% tax
      • Consumer Categories: Select "Commercial" → "Office" + "Retail"
      • Utility Services: Electricity
      • Rate Type: "Time-based"
      • Rate Configuration (requires manual validation):
        • Off-Peak: 10 PM - 6 AM at $0.08/unit
        • Standard: 6 AM - 4 PM, 8 PM - 10 PM at $0.12/unit
        • Peak: 4 PM - 8 PM at $0.18/unit
      • Service Charges:
        • Electric Delivery Rate $45.00 (Fixed)
        • Distribution Charges $25.00 (Fixed)

    Recommendation: Implement time overlap validation similar to date validation for other rate types

 to prevent configuration errors and ensure accurate time-based billing.

Scenario 6 – Residential Water FlatTransparency Rate PlanPricing

Scenario Description A residential customer requires a simplestraightforward water planbilling with consistent per-gallon pricing regardlessto ofenable consumptioneasy volume.cost prediction and promote conservation awareness.

Objective (Why)

  • Business Goal: Provide transparent, easy-to-understandeasily understood water billing forthat residentialreduces customerscustomer service inquiries and billing disputes
  • Consumer Goal: Access simple per-gallon pricing that enables accurate bill prediction and conservation cost awareness
  • Conservation Goal: Encourage water conservation through consistent per-unit pricingprice signals
  • Simplify billingthat calculationsmake andusage customercosts serviceimmediately explanationsclear

If Not Set – Business Impact

  • CustomerService confusion leading toCosts: 30% increase in billing inquiry calls due to customer confusion about complex rate structures
  • Administrative Burden: $150K annual cost increase for customer service tostaff explainexplaining complexcomplicated ratetiered structureswater billing systems
  • Regulatory Risk: Potential regulatorycompliance issues as flat-rate transparency is preferred for essential services like residential water

Scenario Explanation - in short Maria Rodriguez uses 4,850 gallons ofmonthly waterin monthly.her UnderSan Antonio home. Simple flat rate pricing: Water usage:calculation: 4,850 gallons × $0.0085/gallon0085 = $41.2323. Service charges:charges include $1212.00 water service fee +and $3.50 meter chargecharge, =totaling $15.5050. TotalFinal monthly water bill: $56.73 Easy calculation allows73. Maria toeasily predictcalculates future bills by multiplying expected gallons by $0.0085, enabling her billto basedtrack onconservation usage.efforts and budget accurately. If she reduces usage to 4,000 gallons, she saves $7.23 monthly.

Audience (Why it Matters) - in short 

  • CSM →: Must explain simple per-gallon pricing andto customers like Maria, help customersthem calculate their expected bills based on usage estimates.estimates, and demonstrate how conservation directly translates to cost savings
  • QA →: Must validate flat rate calculations foracross various consumption levels and(1,000 to 15,000+ gallons), verify consistent $0.0085 per-unit pricing acrossregardless allof usagevolume, scenarios.and ensure no tier or bracket calculations interfere
  • Engineers/Interns →: Must understand that flat rates apply single unit pricing regardless of consumption volume, withrequire no tier breakpoints or bracketcomplex calculations.

    calculations, and maintain consistent rate application across all usage scenarios

Does it fit in SMART360 

✅ Fits perfectly in SMART360. -Here's SMART360the supportsdetailed flat rate configuration:implementation:

Step-by-Step Implementation:

  1. Create Residential Water Flat Rate Plan
    • Basic Details: Plan Name "Residential Water Flat Rate", Short Name "RWFR", Monthly billing, 4% tax
    • Consumer Categories: Select "Residential" → "Single Family" + "Multi-Family"
    • Utility Service:Services: Water
    • Rate Type: Flat"Flat"
    • Rate Configuration: Base Unit Rate:Rate $0.0085 per gallon
    • Service charges: Charges:
      • Water Service Fees $12.00 ($12),Fixed, Service-Specific)
      • Meter Charge ($3.50)
      • Consumer50 Categories:(Fixed, ResidentialService-Specific)

The system's flat rate functionality perfectly supports single-rate pricing across all consumption levels, with predefined water service charges.

Scenario 7 – Industrial Waste Management Fixed Monthly PlanPredictability

Scenario Description An industrial facility needs predictablereliable monthly waste management costs withthrough fixed pricing for budgetcomprehensive planningservices including regular collection, hazardous handling, and operationalcompliance efficiency.documentation.

Objective (Why)

  • ProvideBusiness Goal: Generate stable revenue from industrial waste services while providing comprehensive environmental compliance support
  • Consumer Goal: Achieve cost certainty for industrial waste management budgeting and ensure proper disposal compliance without usage-based pricing volatility
  • Environmental Goal: Encourage proper industrial waste disposal through comprehensive service coverage
  • Generate stablerather revenuethan fromcost-driven industrialdisposal waste management servicesshortcuts

If Not Set – Business Impact

  • Revenue Instability: $450K annual revenue loss from industries choosing variable pricing competitors for cost predictability
  • Environmental Risk: 18% increase in improper waste disposal incidents due to unpredictable cost concerns affecting disposal decisions
  • Account Loss: Loss of 8 major industrial accounts requiring fixed-cost waste management solutions for accurate operational budgeting

Scenario Explanation - in short Pacific ManufacturingManufacturing, a 200,000 sq ft facility, pays a fixed monthly waste management fee of $2,400 covering:

  • Regularcovering comprehensive services: regular waste collection (3x3× weekly)
  • Hazardous, hazardous material handling
  • Recycling and disposal, recycling processing services
  • Documentationservices, and documentation/compliance reportingreporting. Total monthly bill: $2,400 (with no usage-based calculations)calculations or volume fluctuations. Additional one-time charges may apply for special waste types.
types like asbestos or electronic waste requiring specialized handling beyond standard industrial waste streams.

Audience (Why it Matters) - in short 

  • CSM →: Must communicate comprehensive service coverage included in Pacific Manufacturing's fixed pricing andpricing, handle any special waste requests outside the standard plan.plans, and coordinate environmental compliance documentation delivery
  • QA →: Must validate that waste management charges remain fixedexactly $2,400 regardless of volume fluctuations andfluctuations, verify proper service inclusion.inclusion without consumption-based adjustments, and test special charge handling for non-standard waste
  • Engineers/Interns →: Must understand fixed pricing logic for waste management services andoperates integrationindependently of volume calculations, integrates with special charge handling for non-standardexceptional waste types.

    types, and maintains compliance documentation workflows

Does it fit in SMART360 

⚠️ Needs customization - SMART360 primarily handles metered utilities:

Current Limitation:

  • Waste Management not explicitly listed in standard utility services
  • Gap:System Needdesigned toprimarily addfor metered consumption (electricity, water, gas)

Implementation Workaround:

  1. Create Industrial Waste Management asPlan
    • Basic Details: Plan Name "Industrial Waste Management", Short Name "IWM", Monthly billing, 6% tax
    • Consumer Categories: Select "Industrial" → "Manufacturing"
    • Utility Services: Use existing utility servicetype optionas placeholder OR
    • Workaround:Service CanCharges useImplementation:
      • Waste "Management Service $2,400.00 (Fixed, Service-Specific Charges" for fixed waste management feesSpecific)
      • Compliance Documentation $0.00 (included in base service)
      • Special Waste Processing $0.00 (variable, applied as needed)

Recommendation: Expand SMART360's utility service categories to explicitly include waste"Waste managementManagement" as a supported utility type alongside electricity, water, and gas for comprehensive utility management.

Scenario 8 – Commercial Gas SlabVolume RateIncentive PlanPricing

Scenario Description A commercial customer needs tiered gas pricing where larger consumption volumes receive progressively better per-unit rates.rates to reward loyalty and encourage increased usage.

Objective (Why)

  • RewardBusiness Goal: Maximize revenue from high-volume commercial gas customers withwhile volumeproviding discounts
  • Encourage customer loyalty and prevent switching to competitors
  • Optimize revenue through tiered pricing that balancescompetitive volume incentives to prevent customer defection
  • Consumer Goal: Access volume discounts that reward business growth and higher gas consumption with profitabilityprogressively lower unit costs
  • Market Goal: Compete effectively with volume discount pricing from regional suppliers while maintaining profitable rate structures

If Not Set – Business Impact

  • Customer Defection: Loss of 25 high-volume commercial accounts worthrepresenting $1.8M annually in gas revenue
  • Competitive Disadvantage: Inability to compete with volume discount pricing from regional gas suppliers offering tiered incentives
  • Revenue Decline: 30% reduction in commercial gas sales due to uncompetitive flat-rate pricing lacking volume rewards

Scenario Explanation - in short Downtown Restaurant Group consumesoperates multiple locations consuming 8,500 cubic feet monthly:

  • Firstmonthly. Volume-incentive calculation: Tier 1 (0-2,000 cf): 2,000 cubic feet:× $0.85/unit85 = $1,700
  • Next700. 3,000Tier cubic feet2 (2,001-5,000)000 cf): 3,000 × $0.78/unit78 = $2,340
  • Next340. 3,000Tier cubic feet3 (5,001-8,000)000 cf): 3,000 × $0.72/unit72 = $2,160
  • Remaining160. 500Tier cubic feet4 (8,001-8,500)500 cf): 500 × $0.68/unit68 = $340340. Total gas charges: $6,540540. Service charges: $75 delivery + $25 distribution = $100100. Monthly bill: $6,640
640. Average effective rate: $0.77/cf versus $0.85 flat rate, saving $680 monthly.

Audience (Why it Matters) - in short 

  • CSM →: Must explain volume discount benefits to commercial customers andlike showDowntown Restaurant Group, demonstrate how increased usage leads to lower per-uniteffective costs.rates, and help customers understand tier breakpoints for optimization
  • QA →: Must test slab calculations for commercial gas rates andensuring volume discounts apply correctly, validate volumetier discountboundary tierscalculations apply(2,000, correctly5,000, across8,000 usagecf boundaries.breakpoints), and verify decreasing rate progression
  • Engineers/Interns →: Must understand commercial slab logic differs from residential progressive pricing by offering discountsvolume rewards rather than penaltiesconservation penalties, and implement decreasing rate structures for higherbusiness usage.

    incentives

Does it fit in SMART360 

✅ Fits perfectly in SMART360. -Here's SMART360the supportsdetailed commercial slab rates:implementation:

Step-by-Step Implementation:

  1. Create Commercial Gas Volume Incentive Plan
    • Basic Details: Plan Name "Commercial Gas Volume Incentive", Short Name "CGVI", Monthly billing, 7% tax
    • Consumer Categories: Select "Commercial" → "Restaurant" + "Retail"
    • Utility Service:Services: Gas
    • Rate Type: Slab"Slab"
    • ConsumerRate Categories:Configuration Commercial(Volume Incentive Structure):
      • Slab 1: From 0 To 2,000 cubic feet at $0.85/unit
      • MultipleSlab slabs2: withFrom 2,001 To 5,000 cubic feet at $0.78/unit
      • Slab 3: From 5,001 To 8,000 cubic feet at $0.72/unit
      • Slab 4: From 8,001 To unlimited at $0.68/unit
    • Service Charges:
      • Delivery Charges $75.00 (Fixed, Service-Specific)
      • Distribution Charges $25.00 (Fixed, Service-Specific)

The system's slab rate functionality supports decreasing rates for volume incentives

  • Serviceincentives, charges:perfectly Deliveryaccommodating Chargescommercial ($75),volume Distributiondiscount Charges ($25)
    • structures.

    Scenario 9 – Residential Multi-TierComprehensive Electricity Planwith withDetailed Service Charges

    Scenario Description A residential customer needs a comprehensivedetailed electricity planbilling withthat itemizes all infrastructure and service costs through multiple consumption tiers, seasonal adjustments,tiers and variouscomprehensive service fees.

    Objective (Why)

    • ProvideBusiness detailedGoal: electricityRecover pricingfull infrastructure and service delivery costs through transparent, itemized billing that reflects true cost structures
    • EncourageConsumer conservationGoal: Understand exactly what drives electricity costs through progressivedetailed tier pricing
    • Cover infrastructure and service charge transparency
    • Financial Goal: Provide detailed billing that supports conservation incentives while covering infrastructure maintenance and administrative costs through appropriate fees

    If Not Set – Business Impact

    • Revenue Shortfall: $2.1M annual revenue shortfallgap from simplified pricing that doesn'tfails to recover infrastructure maintenance and service delivery costs
    • Service Impact: Customer confusion about bill components leading to 45% increase in servicebilling inquiry calls requiring detailed explanation of cost components
    • Conservation Failure: Inability to implement effective conservation incentives resulting in 12% higher residential peak demand

    Scenario Explanation - in short The Chen family uses 720 unitskWh in December:December with comprehensive billing breakdown. Electricity tiers:

    • First Tier 1 (0-400 kWh): 400 units:× $0.09/unit09 = $36.00
    • Next00, Tier 2 (401-720 kWh): 320 units (401-720):× $0.13/unit13 = $41.6060. Total electricity: $77.60

    60. Service charges:

    •  Electric delivery rate:rate $18.50
    • 50, Distribution service charges:charges $12.75
    • 75, Administrative fee:fee $8.99
    • 99, Meter fee:fee $4.25
    • 25, Late payment protection:protection $2.5050. Total service charges: $46.9999. Final monthly bill: $124.59
    59. Each component clearly itemized for transparency.

    Audience (Why it Matters) - in short 

    • CSM →: Must explain each service charge component andto families like the Chens, help customers understand how their total billbills isare calculated beyond just electricity usage.usage, and justify infrastructure cost recovery through detailed itemization
    • QA →: Must validate all service charge calculations,calculations individually and collectively, verify tier pricing accuracy,accuracy across consumption boundaries (400 kWh breakpoint), and ensure proper itemization displays correctly on customer bills. bills
    • Engineers/Interns →: Must understand complex billing integration with multiple service charges, tier calculations,calculation processes, and how various infrastructure fees are appliedapplied, calculated, and displayed.

      displayed in customer billing systems

    Does it fit in SMART360 

    ✅ Fits perfectly in SMART360. -Here's SMART360the supportsdetailed comprehensive service charges:implementation:

    Step-by-Step Implementation:

    1. Create Residential Comprehensive Electricity Plan
      • Basic Details: Plan Name "Residential Comprehensive Electricity", Short Name "RCE", Monthly billing, 5% tax
      • Consumer Categories: Select "Residential" → "Single Family" + "Multi-Family"
      • Utility Service:Services: Electricity
      • Rate Type: "Slab"
      • Rate Configuration:
        • Slab (multi-tier)1: From 0 To 400 kWh at $0.09/unit
        • MultipleSlab 2: From 401 To unlimited at $0.13/unit
      • Service Charges (using predefined service charges available:options):
        • Electric Delivery Rate $18.50 (Fixed, Service-Specific)
        • Distribution Service Charges $12.75 (Fixed, Service-Specific)
        • Admin Charges,Charges $8.99 (Fixed, Common)
        • Meter Fee,Fee $4.25 (Fixed, Service-Specific)
        • Late Payment $2.50 (Fixed, Common)
      • All

    SMART360's chargescomprehensive canservice becharge configuredlibrary asperfectly fixedsupports amountsdetailed infrastructure cost itemization with predefined charge types.

    Scenario 10 – Small Business WaterMulti-Utility & Electricity BundleConvenience

    Scenario Description A small business needs combined water and electricity service with business-appropriate ratesrates, unified billing, and unifiedsimplified billing.utility management for operational efficiency.

    Objective (Why)

    • ServeBusiness Goal: Capture and retain small business segment through convenient multi-utility bundling while generating revenue from both electricity and water services
    • Consumer Goal: Simplify utility management for small business operations with appropriate utilitybusiness bundlingrates and single billing contact
    • Operational Goal: Reduce billing complexity for small business owners
    • Increase revenuewhile throughensuring multi-business-level service customerand relationshipspricing

    If Not Set – Business Impact

    • Market Share Loss: 35% of small businesses choose competitors offering convenient utility bundling solutions
    • Revenue Impact: $750K annual revenue loss from small business segment seeking multi-utility convenience
    • IncreasedAdministrative billingCosts: costs ofAdditional $65K annually for separate utility billing processes instead of integrated business solutions

    Scenario Explanation - in short Corner Coffee Shop monthlymanages utilities through single business plan. Monthly usage: Electricity:Electricity 950 unitskWh at× $0.115/unit115 = $109.2525, Water:Water 2,100 gallons at× $0.0078/gallon0078 = $16.3838. Subtotal: $125.63

    63. Service charges:

    •  Electric service charge:charge $22.00
    • 00, Water service fees:fees $15.50
    • 50, Small business admin:admin $12.99
    • 99, Account setup (first month):month only) $35.0000. Total withmonthly services:bill: $211.12
    12. Future months without setup fee: $176.12. Single contact for both utilities simplifies operations.

    Audience (Why it Matters) - in short 

    • CSM →: Must communicate small business pricing benefits andto owners like Corner Coffee Shop, explain how bundled servicesservice provide convenienceconvenience, and potentialhandle costboth savings.electricity and water service issues through coordinated business support
    • QA →: Must test small business rate calculations across multiple utilities and(electricity at $0.115/kWh, water at $0.0078/gallon), validate proper service charge application for business accounts.accounts, and verify account setup fees apply correctly for new customers
    • Engineers/Interns →: Must understand business-specific pricing logic,logic differs from residential rates, multi-utility integration,integration within single business plans, and how small business plansclassifications differtrigger fromappropriate residentialservice orcharges largeand commercialrate plans.

      structures

    Does it fit in SMART360 

    ✅ Fits perfectly in SMART360. -Here's SMART360the supportsdetailed small business multi-utility plans:implementation:

    Step-by-Step Implementation:

    1. Create Small Business Multi-Utility Plan
      • Basic Details: Plan Name "Small Business Multi-Utility", Short Name "SBMU", Monthly billing, 8% tax
      • Consumer Categories: Commercial,Select "Commercial" → "Small Business"
      • Utility Services: Multiple selection
        • Electricity: Rate Type "Fixed Rate", Rate Name "Small Business Electric" ($0.115/unit)
        • MultipleWater: utilityRate services:Type Electricity,"Fixed WaterRate", Rate Name "Small Business Water" ($0.0078/gallon)
      • Business-appropriateService serviceCharges:
        • Electric chargesService availableEst Charge $22.00 (Fixed, Service-Specific)
        • Water Service Fees $15.50 (Fixed, Service-Specific)
        • Admin Charges $12.99 (Fixed, Common)
        • Account Setup Fees can$35.00 be(Fixed, appliedCommon - for new customerscustomers)

    The system's multi-utility support and small business consumer category perfectly accommodate this scenario with appropriate service charge options.

    Scenario 11 – Industrial Electricity Demand-BasedDemand PricingManagement

    Scenario Description A large industrial customer requires electricity pricing based on peak demand periods and total consumption patterns forto optimaloptimize high-load operations and cost management.

    Objective (Why)

    • ProvideBusiness industrialGoal: customers with demand-responsive pricing
    • Encourage load management and grid stability through peak demand pricing
    • Generate appropriate revenue from high-demand industrial users while providing demand-responsive pricing that encourages grid stability
    • Consumer Goal: Access specialized industrial pricing that fairly reflects actual electrical demand patterns and enables load management optimization
    • Grid Goal: Encourage industrial load management and peak demand reduction through demand-based pricing signals and peak period charges

    If Not Set – Business Impact

    • Major Account Loss: Loss of 6 major industrial accounts worthrepresenting $4.2M annually due to inability to provide demand-based pricing
    • Grid instabilityInstability: from unmanagedUnmanaged industrial demand peaks creating grid reliability issues and requiring emergency capacity investments
    • Revenue Gap: $880K annual lossrevenue shortfall from inability to charge appropriate demand-based rates for high-load industrial customers

    Scenario Explanation - in short Advanced Manufacturing Corp monthlyoperates usage:energy-intensive equipment requiring specialized demand pricing. Monthly breakdown: Peak demand:demand charge: 2,500 kW at× $8.50/kW = $21,250 (based on highest 15-minute demand period). Energy consumption: 450,000 kWh at× $0.055/kWh = $24,750750. Total electricity charges: $46,000

    000. Service charges:

    •  Electric delivery rate:rate $2,850
    • 850, Distribution service charges:charges $1,200
    • 200, Capacity based recovery:recovery $750
    • 750, Total regulatory charges:charges $425425. Monthly industrial bill: $51,225
    225.

    Audience (Why it Matters) - in short 

    • CSM →: Must explain demand charges versus energy charges and helpto industrial customers like Advanced Manufacturing, help them understand how peak demand affects their total costs.costs, and provide load management guidance for cost optimization
    • QA →: Must validate demand charge calculations,calculations based on peak kW measurements, verify energy consumption pricing,pricing accuracy across high-volume usage (450,000+ kWh), and ensure proper application of industrial-specific service charges. charges
    • Engineers/Interns →: Must understand demand-based pricing logic,logic differs from consumption-only models, peak demand calculations,calculation processes, and how industrial pricing differsintegrates fromboth standarddemand consumption-based(kW) models.

      and energy (kWh) components simultaneously

    Does it fit in SMART360 

    ⚠️ Needs enhancement - SMART360 supports industrial rates but may need demand chargepricing features:requires customization:

    Current Capability:

    • Consumer Categories: Industrial (supported)classification fully supported
    • Gap:High-volume consumption: Slab rates can handle 450,000+ kWh
    • Industrial service charges: Multiple predefined options available

    Gap Identified:

    • Demand-based pricing (kW charges) not explicitly shown in rate types
    • Workaround:System Usefocuses serviceon chargesconsumption for(kWh) rather than demand components(kW) pricing

    Implementation Workaround:

    1. Create Industrial Electricity Demand Plan
      • Basic Details: Plan Name "Industrial Electricity Demand", Short Name "IED", Monthly billing, 6% tax
      • Consumer Categories: Select "Industrial" → "Manufacturing"
      • Utility Services: Electricity
      • Rate Type: "Slab" (for energy consumption)
      • Rate Configuration: Energy rate $0.055/kWh
      • Service Charges (including demand charges):
        • Peak Demand Charge $21,250.00 (Variable - calculated externally based on kW)
        • Electric Delivery Rate $2,850.00 (Fixed)
        • Distribution Service Charges $1,200.00 (Fixed)
        • Capacity based recovery $750.00 (Fixed)
        • Total Regulatory Charges $425.00 (Fixed)

    Recommendation: Add demand-baseddedicated "Demand-based" rate type to SMART360 for industrial customers requiring both kW demand charges and kWh consumption billing.

    Scenario 12 – Residential Off-Grid Solar withNet GridMetering BackupIntegration

    Scenario Description A residential customer with solar panels needs net metering andservice that credits excess solar generation while providing backup grid electricity serviceduring forinsufficient cloudysolar days and high-usageproduction periods.

    Objective (Why)

    • Business Goal: Support renewable energy adoption while maintaining grid infrastructure cost recovery and managing bidirectional energy flow
    • Consumer Goal: Maximize solar investment value through net metering programs
    • Providecredits while ensuring reliable backup electricity service
    • Environmental whenGoal: solarIncentivize distributed renewable generation iswhile insufficient
    • Balancemaintaining grid maintenancestability costsand withfair renewablecost energy incentivesallocation

    If Not Set – Business Impact

    • Customer Defection: Loss of environmentally conscious customers to solar-friendly utilities offering comprehensive net metering programs
    • Revenue Loss: $320K annual revenue lossshortfall from customers installing solar with competitors providing better renewable integration
    • Regulatory Risk: Non-compliance issues as 12 states require net metering options for residential solar customers

    Scenario Explanation - in short Green Family solar home manages bidirectional energy flow in March:March. Solar generation: 850 kWh fed back to grid. Grid consumption: 920 kWh drawn during cloudy days and nights. Net usage: 70 kWh at× $0.095/kWh = $6.6565. Grid backup availability charge: $25.00 (maintains grid connection). Solar interconnection fee: $8.50 (administrative costs). Administrative charges: $5.9999. Total monthly bill: $46.1414. (BillDuring showssunny months with excess generation, family receives credits forreducing excessfuture solar generation in sunny months)bills.

    Audience (Why it Matters) - in short 

    • CSM →: Must explain net metering calculations,calculations to families like the Greens, demonstrate how solar credits,credits work during different seasons, and howhelp customers understand grid backup charges apply even with solar generation. generation
    • QA →: Must validate net usage calculations,calculations (consumption minus generation), test solar credit applications,applications for excess generation months, and verify proper handling of negative net usage months.creating billing credits
    • Engineers/Interns →: Must understand net metering logic,logic requires bidirectional energy flow calculations,tracking, solar credit calculation processes, and solar interconnection billing processes.

      systems capable of handling both positive charges and negative credits

    Does it fit in SMART360 

    ⚠️ Significant gaps - SMART360 needs major solar/net meteringrenewable enhancements:

    Current Limitations:

    • Gap: No net metering or bidirectional usageenergy handlingflow capabilities
    • Gap: No solar generation credit calculationscalculation functionality
    • System designed for consumption-only billing models

    Major Gaps:

    • Cannot handle negative usage months (excess solar generation)
    • No solar credit banking or carryover functionality
    • No bidirectional metering integration

    Implementation Limitation: While basic service charges could handle interconnection fees, the core net metering functionality requires fundamental system architecture changes.

    Recommendation: Major enhancement needed for renewable energy programs including:

    1. Bidirectional energy flow tracking
    2. Solar generation credit calculations
    3. Net usage billing (consumption minus generation)
    4. Credit banking for excess generation periods
    5. Seasonal credit carryover functionality

    Workaround: CouldExtremely limited - could use negative service charges for simple solar credits, but notinadequate idealfor true net metering requirements.

    Scenario 13 – Unmetered ElectricityEquipment Service PlanPricing

    Scenario Description A customer needs electricity service for remote equipment or areas where installing meters is not practicalimpractical or cost-effective,prohibitive, requiring fixed monthly charges.charges based on estimated usage.

    Objective (Why)

    • Business Goal: Provide electricity service for remote locations or equipment where metering is impractical
    • Generate revenue from unmetered connections through fixed pricing
    • Reduce infrastructure costs bywhile avoiding expensive meter installation costs and generating predictable revenue
    • Consumer Goal: Access electricity service for equipment in locations where meter installation would be cost-prohibitive or technically challenging
    • Infrastructure Goal: Reduce infrastructure investment by avoiding costly meter installations in remote or difficult-to-access locations

    If Not Set – Business Impact

    • Revenue Loss: $280K annual revenue lossshortfall from customers requiring unmetered connections choosing competitors with flexible service options
    • Market Share: Loss of agricultural and remote commercial customers (18 accounts worthrepresenting $165K annually) to utilities offering unmetered solutions
    • IncreasedInfrastructure costsCosts: ofUnnecessary $95K expenditure for unnecessary meter installations in impractical locations where fixed pricing would be more cost-effective

    Scenario Explanation - in short Rural Farm Equipment Barn requires electricity for grain dryers and equipmentirrigation equipment, but meter installation would cost $8,500 due to remote location.location and difficult terrain access. Monthly unmetered service:service provides predictable costs: Fixed electricity charge:charge $185.00 (estimated for typical farm equipment usage)usage patterns), Electric delivery rate:rate $45.0000, Distribution service charges:charges $28.5050, Administrative fee:fee $12.9999. Total monthly bill: $271.4949. No meter readings requiredrequired, -enabling consistent monthly billing.budgeting for agricultural operations.

    Audience (Why it Matters) - in short 

    • CSM →: Must explain to customers like Rural Farm Equipment why unmetered service uses fixed pricing andpricing, help them understand cost-effectiveness versus expensive meter installation.installation, and manage expectations about estimated usage basis
    • QA →: Must validate that unmetered services apply fixed charges correctly without any consumption-based calculationscalculations, orverify no meter reading requirements.requirements or validation, and ensure consistent monthly billing regardless of actual usage
    • Engineers/Interns →: Must understand unmetered service logic wherecompletely bypasses consumption calculations, applies predetermined fixed charges replaceregardless consumptionof calculationsactual usage, and requires no meter data integration isor required.

      usage validation processes

    Does it fit in SMART360 

    ✅ Fits perfectly in SMART360. -Here's SMART360the explicitlydetailed supportsimplementation:

    Step-by-Step Implementation:

    1. Create Unmetered Equipment Service Plan
      • Basic Details: Plan Name "Unmetered Equipment Service", Short Name "UES", Monthly billing, 6% tax
      • Consumer Categories: Select "Commercial" → appropriate subcategory OR "Industrial" for agricultural
      • Utility Services: Electricity
      • Rate Configuration:
        • Use unmetered services:

          • Businessutility ruleservice states:(business rule: "The Unmetered utility charges should be visible in service charges and the rate name should be shown in the rate field")
          • Unmetered Electricity $185.00 (appears in service charges, rate name from utility service)
        • Service Charges:
          • Electric Delivery Rate comes$45.00 (Fixed)
          • Distribution Service Charges $28.50 (Fixed)
          • Admin Charges $12.99 (Fixed)

    SMART360 explicitly supports unmetered services with business rules stating unmetered charges appear in service charges with rate names from utility service selection

  • Fixed pricing structure supports unmetered billing
    • selection.

    Scenario 14 – Municipal Stormwater Infrastructure Management Fee Plan

    Scenario Description Property owners need stormwater management service charges based on impervious surface area to fund municipal drainage andsystems, flood control systems.infrastructure, and EPA compliance requirements.

    Objective (Why)

    • FundBusiness criticalGoal: Generate adequate revenue for stormwater infrastructure maintenance andwhile improvements
    • Ensureensuring fair cost allocation based on property impact on stormwater systems
    • ComplyConsumer withGoal: EPAAccess proper stormwater management regulationsservices with charges proportional to property's impact on municipal drainage systems
    • Environmental Goal: Fund EPA-compliant stormwater management while incentivizing reduced impervious surface through area-based pricing

    If Not Set – Business Impact

    • Infrastructure Underfunding: $1.2M annual shortfall in stormwater infrastructure maintenance and improvement funding
    • Regulatory Penalties: Potential EPA fines of $500K for inadequate stormwater management system compliance
    • Liability Costs: Flood damage liability increasing municipal insurance costs by $180K annually due to inadequate drainage infrastructure

    Scenario Explanation - in short Metro Shopping Center has 85,000 sqsquare ftfeet of impervious surfacesurfaces (parking lots, building roofs): Stormwaterrequiring feestormwater management. Monthly calculation: 85,000 sq ft ÷ 1,000 × $2.15 per thousand sq ft = $182.7575. Additional charges:

    •  Stormwater system maintenance:maintenance $45.00
    • 00, Administrative processing:processing $8.50
    • 50, Environmental compliance fee:fee $15.2525. Total monthly stormwater bill: $251.5050. Quarterly billing cycle =results in $754.50 per quarter
    quarter, providing predictable stormwater infrastructure funding.

    Audience (Why it Matters) - in short 

    • CSM →: Must explain stormwater fee calculations to property owners like Metro Shopping Center based on propertyimpervious characteristicssurface andmeasurements, educate customers about environmental compliance requirements.requirements, and justify infrastructure funding needs
    • QA →: Must validate stormwater fee calculations based on property square footage data and(85,000 ÷ 1,000 × $2.15), verify proper application of environmental service charges.charges, and test quarterly billing cycle accuracy
    • Engineers/Interns →: Must understand property-based fee calculations,calculation logic using impervious surface area, environmental compliance charge integration, and stormwater management billing logic.

      processes independent of consumption metering

    Does it fit in SMART360 

    ✅ Fits perfectly in SMART360. Here's the detailed implementation:

    Step-by-Step Implementation:

    1. Create Municipal Stormwater Management Plan
      • Basic Details: Plan Name "Municipal Stormwater Management", Short Name "MSM", Quarterly billing, 6% tax
      • Consumer Categories: Select "Commercial" → "Property Management" OR create property-based category
      • Utility Services: Can use existing utility type OR configure as service charges
      • Service Charges (area-based calculation):
        • Strom Water Fee $182.75 (Variable - calculated: 85,000 sq ft ÷ 1,000 × $2.15)
        • Stormwater Maintenance $45.00 (Fixed)
        • Admin Charges $8.50 (Fixed)
        • Environmental Compliance $15.25 (Fixed)

    Note: SMART360 includes stormwater fees:

    • Predefined service charge: "Strom Water Fee" in predefined service charges (note: appears to be typo for "Storm Water Fee")
    • Can. beThe configured as fixed or variable charge
    • Quarterlyquarterly billing frequency supported
    is supported, and variable service charges can accommodate area-based calculations.

    Scenario 15 – Large CommercialEnterprise Multi-Utility withVolume DiscountsDiscount Program

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

    Objective (Why)

    • Business Goal: Retain high-value commercial customers through competitive pricing
    • Maximize while maximizing revenue from large accounts whilethrough maintainingvolume-based profitabilitypricing
    • ProvideConsumer Goal: Access comprehensive utility solutions with volume discounts that reward large-scale operations and multi-service bundling
    • Relationship Goal: Provide enterprise-level service and pricing that justifies single-vendor utility management for major commercial clientsoperations

    If Not Set – Business Impact

    • Major Account Loss: Loss of 8 major commercial accounts worthrepresenting $3.8M annually in multi-utility revenue
    • Competitive Disadvantage: Inability to compete with bundled commercial utility offerings from regional providers
    • Revenue Erosion: $450K annual revenue reduction from customers negotiating individualseparate utility contracts instead of comprehensive bundles

    Scenario Explanation - in short Regional Hospital Complex monthlymanages comprehensive utility needs through enterprise program. Monthly usage: Electricity:Electricity 125,000 kWh × $0.089/kWh089 = $11,125.0000, Water:Water 28,500 gallons × $0.0065/gallon0065 = $185.2525, Gas:Gas 15,200 cubic feet × $0.68/cubic ft68 = $10,336.0000. Subtotal: $21,646.2525. Large customer discount (8%): -$1,731.70

    70. Service charges:

    •  Electric delivery rate:rate $875.00
    • 00, Water service fees:fees $125.00
    • 00, Distribution charges:charges $285.00
    • 00, Large account management:management $150.0000. Total monthly bill: $21,349.55
    55.

    Audience (Why it Matters) - in short 

    • CSM →: Must manage complex large customer relationships,relationships explainlike discountRegional structures,Hospital andComplex, coordinate multi-utility service delivery.delivery, and explain enterprise discount structures and premium service benefits
    • QA →: Must validate volume discount calculations across multiple utilities and(8% applied to $21,646.25 subtotal), verify complex billing with multiple service components.components, and ensure enterprise-level service charge accuracy
    • Engineers/Interns →: Must understand large customer discount logic,logic applied across multiple utility types, multi-utility rate integration,integration within single enterprise accounts, and complex commercial billing processes.

      processes with percentage-based discounts

    Does it fit in SMART360 

    ✅ Fits well with customization in SMART360.: Here's the detailed implementation:

    Step-by-Step Implementation:

    1. Create Enterprise Multi-Utility Program
      • Basic Details: Plan Name "Enterprise Multi-Utility Program", Short Name "EMUP", Monthly billing, 8% tax
      • Consumer Categories: Select "Commercial" → "Healthcare" + "Large Commercial"
      • Utility Services: Multiple selection
        • Electricity: Rate Type "Fixed Rate", Rate Name "Enterprise Electric" ($0.089/unit)
        • Water: Rate Type "Fixed Rate", Rate Name "Enterprise Water" ($0.0065/gallon)
        • Gas: Rate Type "Fixed Rate", Rate Name "Enterprise Gas" ($0.68/cubic foot)
      • Service Charges:
        • Electric Delivery Rate $875.00 (Fixed, Service-Specific)
        • Water Service Fees $125.00 (Fixed, Service-Specific)
        • Distribution Charges $285.00 (Fixed, Service-Specific)
        • Large Account Management $150.00 (Fixed, Common)
        • Enterprise Discount -$1,731.70 (Variable - calculated as negative service charge based on 8% of usage subtotal)

    The multi-utility plansplan supported

  • Volumestructure supports comprehensive bundling, while volume discounts can be implemented through service charge modifications
  • Large customernegative service charges available
  • Complexcalculated billingas calculationspercentages supported
    • of usage totals.

    Scenario 16 – Prepaid Utility ServicePayment PlanProgram

    Scenario Description Customers need prepaid utility service where they pay in advance for estimated usage and service is automatically disconnected when credit balance reaches zero.zero to eliminate bad debt risk.

    Objective (Why)

    • ReduceBusiness Goal: Eliminate bad debt and collection costs through prepaidadvance payment model
    • Provide while expanding service optionsaccess forto credit-challenged customers
    • Consumer withGoal: Access utility service without credit challengeschecks or deposits through advance payment flexibility and usage control
    • Financial Goal: Improve cash flow through advance payment collection while reducing collection costs and bad debt write-offs

    If Not Set – Business Impact

    • Bad Debt: $890K annual bad debt losses from customers with payment difficulties and credit challenges
    • Collection costsCosts: ofAdditional $125K annually for delinquent accountsaccount management, disconnect/reconnect services, and collection agency fees
    • Market Access: Loss of 450 potential customers who cannot qualify for standard credit terms but need utility service

    Scenario Explanation - in short James Wilson has credit challenges and chooses prepaid electricity:electricity to avoid deposits and credit checks. Current prepaid balance: $125.0000. Monthly usage estimate: 650 unitskWh × $0.095/unit095 = $61.7575. Service charges: $18.50 delivery + $8.99 admin = $27.4949. Estimated monthly cost: $89.2424. Remaining balance after month: $35.7676. System automatically sends low balance alert at $25.00 thresholdthreshold. AutomaticService disconnectiondisconnects automatically if balance reaches $0.0000, with reconnection available immediately upon payment.

    Audience (Why it Matters) - in short 

    • CSM →: Must help prepaid customers like James Wilson understand balance management, provide usage monitoring,monitoring guidance, and explain payment options to avoid service disconnection.disconnection while maintaining positive customer relationships
    • QA →: Must test prepaid balance calculations,calculations with real-time usage tracking, validate automatic disconnect thresholds,thresholds and($0.00 balance), verify customer notification systems fortrigger correctly at low balances.balance alerts ($25.00), and ensure immediate reconnection capability
    • Engineers/Interns →: Must understand prepaid account logic,logic requires real-time balance tracking,tracking andagainst usage, automated service control based on account credits.

      credits, and integration between billing calculations and service delivery systems

    Does it fit in SMART360 

    ⚠️ Major gap - SMART360 lacks prepaid functionality:

    Current Limitations:

    • No prepaid account management features shown
    • Noor real-time balance tracking orcapabilities
    • No automated service disconnect/reconnect based on account balance
    • System designed for post-paid billing rather than pre-payment models

    Major Enhancement Needed:

    • Real-time usage monitoring and balance deduction
    • Gap:Automated service control integration
    • Prepaid requiresaccount significantmanagement system enhancementinterface
    • Balance notification and alert systems

    Recommendation: MajorSignificant development neededrequired for prepaid utility services including real-time metering integration, automated service controls, and prepaid account management functionality.

    Scenario 17 – Municipal Water with Late Payment Progressive Penalties

    Scenario Description Municipal water customers face progressiveescalating late payment penalties and potential service disconnection to encourage timely payments and maintain municipal cash flow for overdueessential accounts.services.

    Objective (Why)

    • EncourageBusiness timelyGoal: payment through progressive penalty structure
    • Minimize collection costs and bad debt through paymentprogressive penalty incentives
    • Maintain while maintaining steady cash flow for essential municipal water operations
    • Consumer Goal: Understand payment expectations with clear penalty structure and adequate notice before service disconnection
    • Municipal Goal: Ensure reliable revenue collection for essential water services while providing fair notice and progressive consequences for late payments

    If Not Set – Business Impact

    • Revenue Timing: $325K annual revenue lossdelays from delayedlate payments without penalty incentives affecting municipal budget planning
    • IncreasedCollection collectionBurden: costs ofAdditional $85K annually for overdue account managementmanagement, notices, and collection activities
    • Service disruptionDisruption: Payment delays affecting 12% of municipal customers duecreate tobudget poorshortfalls paymentand timingservice quality issues

    Scenario Explanation - in short City resident Lisa Park'sPark faces escalating penalties for late water bill payment timeline:payment. Original bill (due FebFebruary 15):15: $67.8585. Late payment feetimeline: February 16-25 (Febfirst 16-25)10 days late): $12.50 (firstpenalty. 10 days) Additional penalty (FebFebruary 26-MarMarch 7): $25.007 (next 10 days): Finaladditional $25.00 penalty. March 8+ (final notice feeperiod): (Mar 8+):additional $35.00 penalty. Disconnect notice fee: $45.00 if payment not received by March 15. Total if paid March 10: $67.85 + $12.50 + $25.00 + $35.00 = $140.3535. PotentialService additional: $45.00 disconnect fee if not paid bydisconnection March 1516 without payment.

    Audience (Why it Matters) - in short 

    • CSM →: Must explain progressive late payment fee structure to customers like Lisa Park, provide clear payment deadlines, and help themcustomers understand escalating penaltiesconsequences forwhile overduemaintaining payments.helpful customer service
    • QA →: Must validate progressive late fee calculations,calculations based on specific date ranges (10-day periods), verify proper fee timing,timing and accumulation, and test accurate penalty application based on actual payment dates. dates
    • Engineers/Interns →: Must understand date-based late payment logic,logic with multiple penalty tiers, automated fee calculations,calculation based on payment timing, and progressive penalty structures basedthat onaccumulate overdueover periods.

      time

    Does it fit in SMART360 

    ✅ Fits perfectly in SMART360. Here's the detailed implementation:

    Step-by-Step Implementation:

    1. Create Municipal Water with Late Penalties Plan
      • Basic Details: Plan Name "Municipal Water with Late Penalties", Short Name "MWLP", Monthly billing, 4% tax
      • Consumer Categories: Select "Residential" → "Single Family" + "Multi-Family"
      • Utility Services: Water
      • Rate Type: Based on municipal water rate structure (Flat or Slab)
      • Service Charges:
        • Late Payment $12.50 (Variable - SMART360first includes10 latedays, system can track payment features:

            timing)
          • PredefinedLate servicePayment charge:$25.00 (Variable - next 10 days, progressive)
          • Late Payment $35.00 (Variable - final notice period)
          • Deactivation Charges $45.00 (Variable - disconnect notice fee)

    SMART360's predefined "Late Payment"

  • Can beservice configuredcharges assupport progressive fees
  • Systempenalty structures, and the system can track payment timing and applyfor appropriate penalties
    • fee application.

    Scenario 18 – ElectricityGreen withEnergy Renewable EnergyCredits CreditsProgram

    Scenario Description Environmentally conscious customers purchase renewable energy credits (RECs) as an add-on to standard electricity service.service to support renewable energy development and reduce carbon footprint.

    Objective (Why)

    • ProvideBusiness environmentalGoal: sustainability options for eco-conscious customers
    • Generate additional revenue through renewable energy credit sales while supporting sustainability initiatives and customer environmental goals
    • Consumer Goal: Access carbon-neutral electricity options through renewable energy credits without installing personal solar equipment
    • Environmental Goal: Support renewable energy development through customer participation in REC programs and green energy funding

    If Not Set – Business Impact

    • Customer Loss: Loss of 280 environmentally conscious customers to competitors offering comprehensive green energy competitorsprograms
    • Revenue Gap: $156K annual revenue lossshortfall from RECmissed renewable energy credit sales opportunities
    • Brand Impact: Reputational damage affecting customer acquisition in sustainability-focused market segments and corporate environmental goals

    Scenario Explanation - in short Environmental advocate Susan Chen opts for 100% renewable energy credits:credits for her home electricity. Standard electricity: 485 kWh × $0.098/kWh098 = $47.5353. Renewable energy credits: 485 kWh × $0.025/kWh025 = $12.13 (REC premium). Service charges:

    •  Electric delivery rate:rate $22.50
    • 50, Distribution service charges:charges $15.75
    • 75, Green energy processing:processing $3.9999. Total monthly bill: $101.9090. CertificateSusan showsreceives certificate showing 485 kWh from renewable sources
    sources, supporting wind and solar development.

    Audience (Why it Matters) - in short 

    • CSM →: Must educate customers like Susan Chen about renewable energy credits, explain environmental benefits,benefits and carbon reduction impact, and communicate additional costs for green energy options.options while emphasizing sustainability value
    • QA →: Must validate REC calculations,calculations (485 kWh × $0.025), verify proper credit application,application andto standard electricity usage, test accurate green energy billing components.components, and ensure environmental certificate generation
    • Engineers/Interns →: Must understand renewable energy credit logic,logic environmentalas tracking, andconsumption-based add-on serviceservice, environmental tracking integration for certificate generation, and billing integration.

      systems that combine standard rates with REC premiums

    Does it fit in SMART360 

    ✅ Fits with service charge configuration in SMART360.: Here's the detailed implementation:

    Step-by-Step Implementation:

    1. Create Green Energy Renewable Credits Plan
      • Basic Details: Plan Name "Green Energy Renewable Credits", Short Name "GERC", Monthly billing, 5% tax
      • Consumer Categories: Select "Residential" → "Single Family" + "Multi-Family"
      • Utility Services: Electricity
      • Rate Type: "Fixed Rate" for standard electricity ($0.098/unit)
      • Service Charges:
        • Renewable Energy Credits $12.13 (Variable - calculated as 485 kWh × $0.025)
        • Electric Delivery Rate $22.50 (Fixed)
        • Distribution Service Charges $15.75 (Fixed)
        • Green Energy Processing $3.99 (Fixed)

    RECs can be implemented as additionalvariable service charges

  • Variable pricing based on consumptionkWh (kWh-based)
  • Greenconsumption, while green energy processing fees canuse befixed addedservice to standard electricity plans
    • charges.

    Scenario 19 – Credit Security Deposit Management PlanProgram

    Scenario Description New customers and those with credit issues must pay refundable security deposits that are properly managed, tracked,earn interest, and potentiallycan be refunded overafter time.establishing good payment history.

    Objective (Why)

    • Business Goal: Mitigate credit risk through security deposit collection
    • Provide while providing service access forto customers with credit challenges
    • Consumer Goal: Establish utility service without extensive credit requirements through security deposit options with clear refund conditions
    • Financial Goal: Maintain proper escrow management for customer deposits while earning customer trust through transparent deposit handling

    If Not Set – Business Impact

    • Credit Risk: $425K annual bad debt from customers without adequate credit protection or deposit requirements
    • Regulatory complianceIssues: issuesCompliance violations for improper deposit handling and interest calculation requirements
    • Market Access: Loss of potential customers who need deposit options to establish service but cannot meet standard credit requirements

    Scenario Explanation - in short New customer Mike Torres establishes service with limited credit challenges:history. Required security deposit: $225.00 (based on estimated usage)annual usage ($2,700 ÷ 12 months). Monthly electricity bill: $89.4545. Security deposit status:

    • management: Held in interest-bearing account:account $225.00
    • Accruedearning interest2% annually (annual 2%): $0.38/month
    •  interest). Eligible for refund after 12 months ofconsecutive on-time payments
    • payments. Applied to final bill upon service terminationtermination. Deposit refund conditions: 12 consecutivemonths on-timegood payments
    payment history with no late fees.

    Audience (Why it Matters) - in short 

    • CSM →: Must explain security deposit requirements,requirements to customers like Mike Torres, clarify refund conditions,conditions and interest accrualaccrual, toand customersmanage establishingdeposit newlifecycle service.from collection through refund processing
    • QA →: Must validate security deposit calculations,calculations based on estimated usage, verify interest accrual,accrual andaccuracy (2% annually), test proper deposit management throughout customer lifecycle.lifecycle, and ensure automated refund processing after qualifying period
    • Engineers/Interns →: Must understand deposit tracking logic,logic independent of monthly billing, escrow account management,management andintegration, automated refund processing based on payment history.

      history analysis, and interest calculation systems

    Does it fit in SMART360 

    ✅ Fits perfectly in SMART360. -Here's the detailed implementation:

    Step-by-Step Implementation:

    1. Create Credit Security Deposit Program
      • Basic Details: Can be applied to any existing plan as additional requirement
      • Consumer Categories: Any category requiring credit protection
      • Utility Services: Any utility service
      • Service Charges:
        • Security Deposit $225.00 (Fixed, one-time collection)
        • Interest accrual can be managed through account management features
      • Account Management: System tracks deposit lifecycle, payment history, and refund eligibility

    SMART360 includes security deposits:

    • Predefined service charge: "Security Deposit"
    • System canin trackpredefined depositsservice charges, supporting deposit collection, tracking, and managelifecycle refunds
    • Account management supports deposit lifecycle
    management.

    Scenario 20 – Multi-Unit Property Bulk Billing for Apartment ComplexManagement

    Scenario Description Property management companies need master-metered utility billing for apartment complexes with cost allocation methodology to individual units.units based on square footage or occupancy.

    Objective (Why)

    • ProvideBusiness utilityGoal: solutions forServe multi-unit residential propertiesmarket segment through bulk billing solutions while reducing individual metering infrastructure costs
    • Consumer Goal: Enable property managers to efficiently allocate utility costs fairly among tenants through master metering and fair allocation methods
    • Infrastructure Goal: Reduce metering infrastructure costs through master meteringmeters while maintaining fair cost distribution among unit occupants

    If Not Set – Business Impact

    • Market Share: Loss of 45 property management accounts worthrepresenting $1.8M annually in multi-unit residential utility revenue
    • Segment Gap: Inability to serve growing multi-unit residential market segment with appropriate billing solutions
    • Competitive Loss: Property managers choose competitors offering comprehensive bulk billing solutionsand allocation support services

    Scenario Explanation - in short Sunset Apartments (24 units) receives master meter billing:billing for entire complex. Total complex usage: 28,500 kWh × $0.092/kWh092 = $2,622.0000. Complex service charges: $185.0000. Total master bill: $2,807.00

    00. Property manager allocation (per unit): Average per unit: Simple average: $2,807.00 ÷ 24 units = $116.9696. ActualSquare allocationfootage byallocation: square footage:

    • 1BR units (650 sq ft): = $98.50
    • 50, 2BR units (850 sq ft): = $128.75
    • 75, 3BR units (1,100 sq ft): = $166.5050. Property manager handles individual tenant billing
     and collection.

    Audience (Why it Matters) - in short 

    • CSM →: Must work with property managers like Sunset Apartments to explain master billing,billing concepts, coordinate allocation methodologies, and tenantsupport property management billing responsibilities.responsibilities while maintaining utility service relationships
    • QA →: Must validate master meter billing calculations andfor entire complex usage (28,500 kWh), ensure proper integration with property management allocationsystems, systems.and verify complex-level service charge applications without individual unit complications
    • Engineers/Interns →: Must understand bulk billing logic,logic masterfor metermaster-metered configurations, andproperties, property management billing interfaces.

      interfaces, and complex-level service delivery without individual unit meter management or tenant relationship handling

    Does it fit in SMART360 

    ⚠️ Partial fit - SMART360 can handle master billing:billing but lacks unit allocation features:

    Current Capability:

    • Large commercial billing capabilities supportsupports bulk usage (28,500 kWh)
    • Complex-level service charges can be applied ($185.00)
    • Master meter billing calculations work correctly

    Implementation:

    1. Create Multi-Unit Property Bulk Billing Plan
      • Basic Details: Plan Name "Multi-Unit Property Bulk Billing", Short Name "MUPB", Monthly billing, 6% tax
      • Consumer Categories: Select "Commercial" → "Property Management"
      • Utility Services: Electricity (or multiple utilities)
      • Rate Type: Appropriate for bulk usage (Fixed or Slab)
      • Service Charges: Property management fees and delivery charges

    Gap: No built-in unit allocation or sub-metering features

  • Recommendation:functionality for individual tenant billing.

    Workaround: Property manager handles tenant allocation and individual billing outside SMART360 system

  •  using their own allocation methodology and billing software.

    Recommendation: Master billing works,works effectively in SMART360, but tenant allocation requires external property management

    •  tools and processes.

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