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Rate/ Tariff & Plans Management (ONB-SC09)

Scenario 1 – Progressive Electricity Conservation Pricing

Scenario Description

Utilities are shifting from flat-rate electricity billing to progressive slab-based pricing, where per-unit rates increase with higher consumption. This approach balances affordability for essential usage while discouraging excessive consumption, aligning with regulatory mandates and sustainability goals.

Objective (Why)

  • Revenue Protection: Prevent ~$2.3M in annual leakage to flat-rate competitors.
  • Customer Fairness: Reduce billing complaints by offering affordable essential usage tiers.
  • Regulatory Compliance: Meet conservation pricing mandates now active in 8 states.
  • Sustainability & Brand Value: Strengthen ESG positioning by incentivizing reduced peak demand.

If Not Set – Business Impact

  • Financial Loss: ~$2.3M annual revenue erosion.
  • Customer Impact: 15% rise in billing complaints from low-usage households.
  • Regulatory Risk: Non-compliance fines and reputational damage.

Scenario Explanation - in short

A residential customer segment of 10,000 households averages 850 kWh/month.

  • Under flat-rate pricing ($0.11/unit) → Revenue = $93.5 per household, ~$935K/month.
  • Under progressive pricing (slab model) → Revenue = $100 consumption charges + $15 fixed fees = $115 per household, ~$1.15M/month.
  • Business Gain = ~$215K/month additional revenue, while still keeping first 300 units affordable at just $0.08/unit.


Audience (Why it Matters) - in short

  • CSM: Must explain to customers like Sarah how usage affects billing tiers, demonstrate cost savings opportunities through conservation, and help customers understand why per-unit costs increase at higher consumption levels
  • QA: Must validate slab calculations across all tier boundaries (especially at 300 and 600 kWh breakpoints), verify accurate rate application when usage spans multiple tiers, and ensure bill generation correctly itemizes tier-based charges
  • Engineers/Interns: Must understand progressive tier logic, automated rate calculation algorithms, and how the system determines which slab rates apply to specific usage ranges without manual intervention

Does it fit in SMART360

✅ Fits perfectly in SMART360. Here's the detailed 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 Services: Electricity
    • Rate Type: "Slab"
    • Rate Configuration:
      • Slab 1: From 0 To 300 units at $0.08/unit
      • Slab 2: From 301 To 600 units at $0.12/unit
      • Slab 3: From 601 To unlimited at $0.16/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 configured as fixed amounts per the business rules.

Scenario 2 – Commercial Fixed Water Budget Planning

Scenario Description

In a fixed-rate pricing model, commercial customers are charged a set monthly amount for water services, independent of actual consumption. This model creates predictable revenue streams for the utility while providing businesses with cost stability and simplified budgeting.

Objective (Why)

  • Revenue Stability: Secure consistent monthly income regardless of seasonal consumption shifts.
  • Customer Retention: Help commercial customers (restaurants, small businesses, etc.) plan operating budgets with predictable utility costs.
  • Operational Simplicity: Minimize billing complexity and reduce disputes linked to fluctuating water usage.
  • Market Competitiveness: Differentiate by offering a straightforward pricing option that appeals to businesses focused on cost certainty.

If Not Set – Business Impact

  • Revenue Volatility: Water sales tied to seasonal business activity, leading to unstable monthly collections.
  • Customer Churn: Businesses frustrated by unpredictable bills may switch providers where choice exists.
  • Increased Complaints: Higher volume of billing disputes during peak consumption months.

Scenario Explanation - in short

For 1,000 commercial accounts like Green Valley Restaurant:

  • Fixed monthly charges: $180 (water) + $25 (delivery) + $8 (admin) = $213 per account.
  • Predictable Revenue = $213,000/month = $2.56M annually.
  • Compared to metered billing, where usage varies from 2,500–4,200 gallons per month, the fixed-rate approach avoids ~15–20% seasonal revenue swings and customer billing complaints.

Audience (Why it Matters) - in short

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

Does it fit in SMART360

✅ Fits perfectly in SMART360. Here's the detailed 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 Services: Water
    • Rate Type: "Fixed"
    • Rate Configuration: Fixed Rate $180.00 (consumption-independent)
    • Service Charges:
      • Delivery Charges $25.00 (Fixed, Common)
      • Admin Charges $8.00 (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 Cost Management

Scenario Description
An industrial seasonal gas pricing model that adjusts rates between winter and summer to align with supply costs and demand cycles.

Objective (Why)

  • Business Goal:
    Protect utility margins during winter by passing through higher supply costs and remain competitive against market alternatives.
  • Consumer Goal:
    Provide industrial clients with transparent, seasonal pricing that mirrors market conditions, enabling accurate production and budget planning.
  • Infrastructure Goal:
    Smooth demand spikes in winter and encourage steady off-season usage to balance load and infrastructure utilization.

If Not Set – Business Impact

  • Revenue Shortfall: Utility risks losing $1.7M annually if winter cost surges are not reflected in tariffs.
  • Customer Loss: Potential churn of 12 major industrial accounts to competitors who offer flexible seasonal pricing.
  • Margin Erosion: Utility absorbs up to 35% higher winter gas procurement costs, leading to negative operating margins.

Scenario Explanation – in short

Midwest Steel Manufacturing consumes 85,000 cubic feet of gas monthly.

  • Winter Season (Nov 1 – Mar 31): 85,000 × $0.75 = $63,750
  • Summer Season (Apr 1 – Oct 31): 85,000 × $0.55 = $46,750

Charges:

  • Capacity Charge = $350
  • Delivery Fee = $125

📌 January Bill (Winter): $63,750 + $350 + $125 = $64,225
📌 July Bill (Summer): $46,750 + $350 + $125 = $47,225

This $17,000 seasonal difference reflects true supply costs and allows industrial customers to adjust production schedules accordingly.

Audience (Why it Matters) – in short

  • CSM: Must frame seasonal pricing as fair, market-linked, and beneficial for planning; proactively guide clients like Midwest Steel on managing winter cost increases.
  • QA: Must test automatic seasonal switching (Nov 1 and Apr 1 boundaries), ensuring correct rate application and stable service charges.
  • Engineers/Interns: Must design date-driven seasonal logic that selects the correct tariff without manual intervention, ensuring billing precision.

Does it fit in SMART360?

✅ Yes — fits seamlessly.

Step-by-Step Implementation in SMART360:

  1. Create Plan
    • Name: Industrial Seasonal Gas Plan
    • Short Name: ISGP
    • Billing: Monthly
    • Tax: 6%
  2. Consumer Category
    • Industrial → Manufacturing
  3. Utility Service
    • Gas → Seasonal Rate
  4. Rate Configuration
    • Winter (Nov–Mar): $0.75/cubic foot
    • Summer (Apr–Oct): $0.55/cubic foot
  5. Service Charges
    • Capacity Based Recovery: $350 (Fixed, Service-Specific)
    • Delivery Charges: $125 (Fixed, Service-Specific)

SMART360’s seasonal tariff engine ensures rates automatically switch at the right boundary dates, while version history and audit trail provide compliance and transparency for industrial accounts.

Scenario 4 – Residential Multi-Utility Convenience Bundle

Scenario Description
A bundled residential plan offering electricity, water, and gas in a single bill with built-in discounts to boost loyalty and reduce operational costs.

Objective (Why)

  • Business Goal:
    Retain residential customers by cross-selling multiple utilities under one plan, strengthen lifetime value, and reduce churn.
  • Consumer Goal:
    Provide customers with convenience (one bill, one service contact) and tangible savings through bundled pricing.
  • Operational Goal:
    Lower the cost of managing three separate billing streams by consolidating into one unified billing process.

If Not Set – Business Impact

  • Customer Defection: Up to 40% of households may migrate to competitors offering all-in-one utility bundles.
  • Revenue Loss: Annual reduction of $3.2M as customers split services among different providers.
  • Administrative Costs: Extra $120K annually in overhead from managing three distinct billing processes, call center queues, and account reconciliations.

Scenario Explanation – in short

The Johnson family subscribes to the Premium Residential Bundle:

  • Electricity: 450 kWh × $0.11 = $49.50
  • Water: 3,200 gallons × $0.006 = $19.20
  • Gas: 125 cubic feet × $0.52 = $65.00

📌 Subtotal: $133.70
📌 Bundle Discount (5%): -$6.69
📌 Service Charges: $15 Admin + $8 Meter = $23.00
📌 Unified Bill: $150.01/month

For the Johnsons, this means one point of contact, one bill, and automatic 5% savings.
For the utility, it means a stickier relationship across all household services.

Audience (Why it Matters) – in short

  • CSM: Position bundling as cost-saving and hassle-free; explain savings breakdown clearly and provide unified service handling.
  • QA: Validate correct bundle discount logic, accurate bill itemization, and consolidated service charge application.
  • Engineers/Interns: Understand multi-service plan setup, discount-as-service-charge configuration, and unified invoice generation logic.

Does it fit in SMART360?

✅ Yes — directly supported.

Step-by-Step Implementation in SMART360:

  1. Plan Setup
    • Name: Premium Residential Bundle
    • Short Name: PRB
    • Billing: Monthly
    • Tax: 5%
  2. Consumer Categories
    • Residential → Single Family, Multi-Family
  3. Utility Services (Multi-Utility)
    • Electricity: Fixed rate @ $0.11/unit
    • Water: Fixed rate @ $0.006/gallon
    • Gas: Fixed rate @ $0.52/cubic foot
  4. Service Charges
    • Admin Charges: $15 (Fixed, Common)
    • Meter Fee: $8 (Fixed, Common)
    • Bundle Discount: -$6.69 (configured as negative service charge, based on 5% of usage subtotal)

SMART360’s multi-utility support consolidates rates and charges into one plan, ensuring one bill per customer while maintaining compliance and accurate breakdowns.

Scenario 5 – Commercial Time-Based Electricity Optimization

Scenario Description
A commercial electricity plan with time-of-use (TOU) pricing to reduce grid strain during peak hours while helping businesses lower costs by shifting usage to off-peak times.

Objective (Why)

  • Business Goal:
    Reduce grid congestion, improve system stability, and increase profitability by aligning prices with real-time supply costs.
  • Consumer Goal:
    Provide businesses with cost-saving opportunities by incentivizing them to adjust operations to lower-cost time windows.
  • Grid Goal:
    Achieve better load balancing by encouraging demand shifts away from peak hours, lowering reliance on costly peaker plants.

If Not Set – Business Impact

  • Lost Savings: Commercial customers collectively miss out on $890K annually in cost optimization.
  • Grid Strain: Peak-hour demand increases by 20%, raising risk of blackouts and costly emergency generation.
  • Competitive Loss: Utility risks losing 15 major commercial accounts to providers offering TOU flexibility.

Scenario Explanation – in short

Metro Office Complex consumes electricity across different periods:

  • Off-Peak (10 PM – 6 AM): 800 kWh × $0.08 = $64.00
  • Standard (6 AM – 4 PM, 8 PM – 10 PM): 1,200 kWh × $0.12 = $144.00
  • Peak (4 PM – 8 PM): 400 kWh × $0.18 = $72.00

📌 Usage Charges = $280.00
📌 Service Charges = $45 Delivery + $25 Distribution = $70.00
📌 Monthly Bill = $350.00

By shifting 200 kWh from peak to off-peak, Metro could save $20/month (~$240/year), demonstrating clear financial benefits from operational adjustments.

Audience (Why it Matters) – in short

  • CSM: Must coach commercial clients like Metro on time-period optimization and demonstrate how shifting loads can yield measurable savings.
  • QA: Must validate correct rate applications at hour boundaries (6 AM, 4 PM, 8 PM, 10 PM) and ensure usage timestamps map accurately to TOU slots.
  • Engineers/Interns: Must design time-slice billing logic, ensuring multiple daily transitions are handled without overlaps or conflicts.

Does it fit in SMART360?

⚠️ Partial Fit – supported but with gaps.

Current Capability:

  • Supports Time-Based Rate Type with multiple periods.
  • Fully supports commercial categories and service charges.

Gap Identified:

  • No system validation for time overlaps (e.g., duplicate or conflicting hours).
  • Risk of admin misconfigurations causing billing errors.

Step-by-Step Implementation in SMART360:

  1. Plan Setup
    • Name: Commercial Time-Based Electricity
    • Short Name: CTBE
    • Billing: Monthly
    • Tax: 8%
  2. Consumer Categories
    • Commercial → Office, Retail
  3. Utility Service
    • Electricity → Time-based
  4. Rate Configuration (manual validation required)
    • Off-Peak: 10 PM – 6 AM @ $0.08/unit
    • Standard: 6 AM – 4 PM, 8 PM – 10 PM @ $0.12/unit
    • Peak: 4 PM – 8 PM @ $0.18/unit
  5. Service Charges
    • Electric Delivery Rate = $45 (Fixed)
    • Distribution Charges = $25 (Fixed)

Recommendation for Product Enhancement:
Introduce time-slot overlap validation, similar to date overlap rules, to safeguard billing accuracy and avoid customer disputes.

Scenario 6 – Residential Water Transparency Pricing

Scenario Description
 A residential customer requires straightforward water billing with consistentflat per-gallon pricingresidential towater enabletariff easythat costensures predictiontransparent, andpredictable promotebilling while promoting conservation awareness.

Objective (Why)

  • Business GoalGoal:: Provide transparent, easily understood water
    Reduce billing thatdisputes reducesand customer service inquiriesload andby billingoffering disputesa clear, single-rate pricing model.
  • Consumer GoalGoal::
    Provide Accesshouseholds simplewith per-gallonstraightforward pricingbills thatthey enablescan accuratecalculate billthemselves, predictionimproving trust and conservationfinancial cost awarenesspredictability.
  • Conservation GoalGoal:: Encourage water conservation through
    Deliver consistent price signals that makehelp consumers directly connect usage costsreduction immediatelywith clearfinancial savings.

If Not Set – Business Impact

  • Service CostsCosts:: 30% increase in billing inquiry calls duecaused to customerby confusion aboutover complextiered ratewater structuresrates.
  • Administrative BurdenBurden:: $150K annual cost increase for customerstaffing serviceadditional staff explaining complicated tiered water billing systemssupport.
  • Regulatory RiskRisk:: Potential Non-compliance issuesrisk aswhere flat-rateregulators transparencyprefer istransparent preferredbilling for essential servicesutilities like residential waterwater.

Scenario Explanation -– in short

Maria Rodriguez Maria Rodriguez uses 4,850 gallons monthly in her San Antonio home.consumes Simple4,850 flatgallons/month.

  • Base rate calculation:Usage: 4,850 gallons × $0.0085 = $41.23. 23
  • Service charges includeCharges: $12.00 water(Water serviceService feeFee) and+ $3.50 meter(Meter charge,Charge) totaling= $15.50.50
  • 📌 FinalTotal monthlyMonthly waterBill bill:= $56.73. 73

Maria easilycan calculates futureforecast bills by multiplying expected gallons by $0.0085, enabling her to track conservation efforts and budget accurately. If she reduces usage toeasily:

  • At 4,000 gallons, sheher savesbill drops by $7.23.
  • This monthly.direct link between

    conservation and savings makes usage reduction tangible.

For the utility, the simplified pricing reduces customer inquiries and creates stronger consumer trust.

Audience (Why it Matters) -– in short

  • CSMCSM:: MustHighlight explainsimplicity simpleand per-gallonshow pricingcustomers how to customers like Maria, help them calculate expectedfuture billsbills; basedposition onthe usageutility estimates,as transparent and demonstrate how conservation directly translates to cost savingsconsumer-friendly.
  • QAQA:: MustValidate validatethat flatevery ratebill calculationsapplies across various consumption levels (1,000 to 15,000+ gallons), verify consistent $0.0085 per-unit pricing0085/gallon, regardless of volume, and ensurewith no tierslab/tiers or bracket calculations interfereinterfering.
  • Engineers/InternsInterns:: MustImplement understanda flat rate configuration that flatapplies ratesuniversally applyto singleconsumption, unitrequiring pricingminimal regardlesscomplexity ofin consumptionsystem volume, require no tier breakpoints or complex calculations, and maintain consistent rate application across all usage scenarioslogic.

Does it fit in SMART360

SMART360?

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

Step-by-Step Implementation:Implementation in SMART360:

  1. CreatePlan Setup
    • Name: Residential Water Flat Rate
    • Short PlanName: RWFR
    • Billing: Monthly
    • Tax: 4%
  2. Consumer Categories
    • Basic Details: Plan Name "Residential → Single Family, Multi-Family
  3. Utility Service
    • Water → Flat Rate", Short Name "RWFR", Monthly billing, 4% taxRate
  4. Consumer Categories: Select "Residential" → "Single Family" + "Multi-Family"
  5. Utility Services: Water
  6. Rate Type: "Flat"
    7. Configuration
    • Rate Configuration: Base Unit RateRate: $0.0085 per gallon
  7. Service Charges:Charges
    • Water Service FeesFee: $12.00 (Fixed, Service-Specific)
    • Meter ChargeCharge: $3.50 (Fixed, Service-Specific)

The system'SMART360’s flat rate functionalitydesign perfectlyensures supportsbills single-rateremain pricingtransparent, acrosspredictable, alland consumptionregulation-compliant levels,while withlowering predefinedoperational watersupport service charges.costs.

Scenario 7 – Industrial Waste Management Predictability

Scenario Description An industrial facility needs reliable monthly waste management costs through fixed pricing for comprehensive services including regular collection, hazardous handling, and compliance documentation.

Objective (Why)

  • Business Goal: Generate stable revenue from industrial waste services while providing comprehensive environmental compliance support
  • Consumer Goal: Achieve cost certainty for waste management budgeting and ensure proper disposal compliance without usage-based pricing volatility
  • Environmental Goal: Encourage proper industrial waste disposal through comprehensive service coverage rather than cost-driven disposal shortcuts

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 Manufacturing, a 200,000 sq ft facility, pays fixed monthly waste management of $2,400 covering comprehensive services: regular waste collection (3× weekly), hazardous material handling and disposal, recycling processing services, and documentation/compliance reporting. Total monthly bill: $2,400 with no usage-based calculations or volume fluctuations. Additional one-time charges may apply for special waste 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, handle special waste requests outside standard plans, and coordinate environmental compliance documentation delivery
  • QA: Must validate waste management charges remain exactly $2,400 regardless of volume fluctuations, verify proper service 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 operates independently of volume calculations, integrates with special charge handling for exceptional waste 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
  • System designed primarily for metered consumption (electricity, water, gas)

Implementation Workaround:

  1. Create Industrial Waste Management Plan
    • Basic Details: Plan Name "Industrial Waste Management", Short Name "IWM", Monthly billing, 6% tax
    • Consumer Categories: Select "Industrial" → "Manufacturing"
    • Utility Services: Use existing utility type as placeholder OR
    • Service Charges Implementation:
      • Waste Management Service $2,400.00 (Fixed, Service-Specific)
      • 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 Management" as a supported utility type alongside electricity, water, and gas for comprehensive utility management.

Scenario 8 – Commercial Gas Volume Incentive Pricing

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

Objective (Why)

  • Business Goal: Maximize revenue from high-volume commercial gas customers while providing competitive volume incentives to prevent customer defection
  • Consumer Goal: Access volume discounts that reward business growth and higher gas consumption with progressively 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 representing $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 operates multiple locations consuming 8,500 cubic feet monthly. Volume-incentive calculation: Tier 1 (0-2,000 cf): 2,000 × $0.85 = $1,700. Tier 2 (2,001-5,000 cf): 3,000 × $0.78 = $2,340. Tier 3 (5,001-8,000 cf): 3,000 × $0.72 = $2,160. Tier 4 (8,001-8,500 cf): 500 × $0.68 = $340. Total gas charges: $6,540. Service charges: $75 delivery + $25 distribution = $100. Monthly bill: $6,640. 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 like Downtown Restaurant Group, demonstrate how increased usage leads to lower effective rates, and help customers understand tier breakpoints for optimization
  • QA: Must test slab calculations for commercial gas rates ensuring volume discounts apply correctly, validate tier boundary calculations (2,000, 5,000, 8,000 cf breakpoints), and verify decreasing rate progression
  • Engineers/Interns: Must understand commercial slab logic differs from residential progressive pricing by offering volume rewards rather than conservation penalties, and implement decreasing rate structures for business incentives

Does it fit in SMART360

✅ Fits perfectly in SMART360. Here's the detailed 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 Services: Gas
    • Rate Type: "Slab"
    • Rate Configuration (Volume Incentive Structure):
      • Slab 1: From 0 To 2,000 cubic feet at $0.85/unit
      • Slab 2: From 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, perfectly accommodating commercial volume discount structures.

Scenario 9 – Residential Comprehensive Electricity with Detailed Service Charges

Scenario Description A residential customer needs detailed electricity billing that itemizes all infrastructure and service costs through multiple consumption tiers and comprehensive service fees.

Objective (Why)

  • Business Goal: Recover full infrastructure and service delivery costs through transparent, itemized billing that reflects true cost structures
  • Consumer Goal: Understand exactly what drives electricity costs through detailed tier pricing and service charge transparency
  • Financial Goal: Provide detailed billing that supports conservation incentives while covering infrastructure maintenance and administrative costs

If Not Set – Business Impact

  • Revenue Shortfall: $2.1M annual revenue gap from simplified pricing that fails to recover infrastructure maintenance and service delivery costs
  • Service Impact: Customer confusion leading to 45% increase in billing 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 kWh in December with comprehensive billing breakdown. Electricity tiers: Tier 1 (0-400 kWh): 400 × $0.09 = $36.00, Tier 2 (401-720 kWh): 320 × $0.13 = $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. Each component clearly itemized for transparency.

Audience (Why it Matters) - in short

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

Does it fit in SMART360

✅ Fits perfectly in SMART360. Here's the detailed 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 Services: Electricity
    • Rate Type: "Slab"
    • Rate Configuration:
      • Slab 1: From 0 To 400 kWh at $0.09/unit
      • Slab 2: From 401 To unlimited at $0.13/unit
    • Service Charges (using predefined options):
      • Electric Delivery Rate $18.50 (Fixed, Service-Specific)
      • Distribution Service Charges $12.75 (Fixed, Service-Specific)
      • Admin Charges $8.99 (Fixed, Common)
      • Meter Fee $4.25 (Fixed, Service-Specific)
      • Late Payment $2.50 (Fixed, Common)

SMART360's comprehensive service charge library perfectly supports detailed infrastructure cost itemization with predefined charge types.

Scenario 10 – Small Business Multi-Utility Convenience

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

Objective (Why)

  • Business 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 business rates and single billing contact
  • Operational Goal: Reduce billing complexity for small business owners while ensuring business-level service and pricing

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
  • Administrative Costs: Additional $65K annually for separate utility billing processes instead of integrated business solutions

Scenario Explanation - in short Corner Coffee Shop manages utilities through single business plan. Monthly usage: Electricity 950 kWh × $0.115 = $109.25, Water 2,100 gallons × $0.0078 = $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 only) $35.00. Total monthly bill: $211.12. 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 to owners like Corner Coffee Shop, explain bundled service convenience, and handle both electricity and water service issues through coordinated business support
  • QA: Must test small business rate calculations across multiple utilities (electricity at $0.115/kWh, water at $0.0078/gallon), validate proper service charge application for business accounts, and verify account setup fees apply correctly for new customers
  • Engineers/Interns: Must understand business-specific pricing logic differs from residential rates, multi-utility integration within single business plans, and how small business classifications trigger appropriate service charges and rate structures

Does it fit in SMART360

✅ Fits perfectly in SMART360. Here's the detailed 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: Select "Commercial" → "Small Business"
    • Utility Services: Multiple selection
      • Electricity: Rate Type "Fixed Rate", Rate Name "Small Business Electric" ($0.115/unit)
      • Water: Rate Type "Fixed Rate", Rate Name "Small Business Water" ($0.0078/gallon)
    • Service Charges:
      • Electric Service Est Charge $22.00 (Fixed, Service-Specific)
      • Water Service Fees $15.50 (Fixed, Service-Specific)
      • Admin Charges $12.99 (Fixed, Common)
      • Account Setup Fees $35.00 (Fixed, Common - for new customers)

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 Management

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

Objective (Why)

  • Business Goal: 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 representing $4.2M annually due to inability to provide demand-based pricing
  • Grid Instability: Unmanaged industrial demand peaks creating grid reliability issues and requiring emergency capacity investments
  • Revenue Gap: $880K annual revenue shortfall from inability to charge appropriate demand-based rates for high-load industrial customers

Scenario Explanation - in short Advanced Manufacturing Corp operates energy-intensive equipment requiring specialized demand pricing. Monthly breakdown: Peak demand charge: 2,500 kW × $8.50/kW = $21,250 (based on highest 15-minute demand period). Energy consumption: 450,000 kWh × $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 to industrial customers like Advanced Manufacturing, help them understand how peak demand affects total costs, and provide load management guidance for cost optimization
  • QA: Must validate demand charge calculations based on peak kW measurements, verify energy consumption pricing accuracy across high-volume usage (450,000+ kWh), and ensure proper application of industrial-specific service charges
  • Engineers/Interns: Must understand demand-based pricing logic differs from consumption-only models, peak demand calculation processes, and how industrial pricing integrates both demand (kW) and energy (kWh) components simultaneously

Does it fit in SMART360

⚠️ Needs enhancement - SMART360 supports industrial rates but demand pricing requires customization:

Current Capability:

  • Consumer Categories: Industrial classification fully supported
  • 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
  • System focuses on consumption (kWh) rather than demand (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 dedicated "Demand-based" rate type to SMART360 for industrial customers requiring both kW demand charges and kWh consumption billing.

Scenario 12 – Residential Solar Net Metering Integration

Scenario Description A residential customer with solar panels needs net metering service that credits excess solar generation while providing backup grid electricity during insufficient solar production 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 credits while ensuring reliable backup electricity service
  • Environmental Goal: Incentivize distributed renewable generation while maintaining grid stability and fair cost allocation

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 shortfall 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. Solar generation: 850 kWh fed back to grid. Grid consumption: 920 kWh drawn during cloudy days and nights. Net usage: 70 kWh × $0.095/kWh = $6.65. Grid backup availability charge: $25.00 (maintains grid connection). Solar interconnection fee: $8.50 (administrative costs). Administrative charges: $5.99. Total monthly bill: $46.14. During sunny months with excess generation, family receives credits reducing future bills.

Audience (Why it Matters) - in short

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

Does it fit in SMART360

⚠️ Significant gaps - SMART360 needs major solar/renewable enhancements:

Current Limitations:

  • No net metering or bidirectional energy flow capabilities
  • No solar generation credit calculation 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: Extremely limited - could use negative service charges for simple solar credits, but inadequate for true net metering requirements.

Scenario 13 – Unmetered Equipment Service Pricing

Scenario Description A customer needs electricity service for remote equipment or areas where installing meters is impractical or cost-prohibitive, requiring fixed monthly charges based on estimated usage.

Objective (Why)

  • Business Goal: Provide electricity service for remote locations while 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 shortfall from customers requiring unmetered connections choosing competitors with flexible service options
  • Market Share: Loss of agricultural and remote commercial customers (18 accounts representing $165K annually) to utilities offering unmetered solutions
  • Infrastructure Costs: Unnecessary $95K expenditure for 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 irrigation equipment, but meter installation would cost $8,500 due to remote location and difficult terrain access. Monthly unmetered service provides predictable costs: Fixed electricity charge $185.00 (estimated for typical farm equipment usage patterns), Electric delivery rate $45.00, Distribution service charges $28.50, Administrative fee $12.99. Total monthly bill: $271.49. No meter readings required, enabling consistent monthly 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, help them understand cost-effectiveness versus expensive meter installation, and manage expectations about estimated usage basis
  • QA: Must validate unmetered services apply fixed charges correctly without consumption-based calculations, verify no meter reading requirements or validation, and ensure consistent monthly billing regardless of actual usage
  • Engineers/Interns: Must understand unmetered service logic completely bypasses consumption calculations, applies predetermined fixed charges regardless of actual usage, and requires no meter data integration or usage validation processes

Does it fit in SMART360

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

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 utility service (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 $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.

Scenario 14 – Municipal Stormwater Infrastructure Management

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

Objective (Why)

  • Business Goal: Generate adequate revenue for stormwater infrastructure maintenance while ensuring fair cost allocation based on property impact
  • Consumer Goal: Access proper stormwater management services 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 square feet of impervious surfaces (parking lots, building roofs) requiring stormwater management. Monthly calculation: 85,000 sq ft ÷ 1,000 × $2.15 per thousand sq ft = $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 results in $754.50 per 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 impervious surface measurements, educate about environmental compliance requirements, and justify infrastructure funding needs
  • QA: Must validate stormwater fee calculations based on property square footage data (85,000 ÷ 1,000 × $2.15), verify proper application of environmental service charges, and test quarterly billing cycle accuracy
  • Engineers/Interns: Must understand property-based fee calculation logic using impervious surface area, environmental compliance charge integration, and stormwater management billing 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 "Strom Water Fee" in predefined service charges (appears to be typo for "Storm Water Fee"). The quarterly billing frequency is supported, and variable service charges can accommodate area-based calculations.

Scenario 15 – Enterprise Multi-Utility Volume Discount Program

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

Objective (Why)

  • Business Goal: Retain high-value commercial customers through competitive pricing while maximizing revenue from large accounts through volume-based pricing
  • Consumer 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 operations

If Not Set – Business Impact

  • Major Account Loss: Loss of 8 major commercial accounts representing $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 separate utility contracts instead of comprehensive bundles

Scenario Explanation - in short Regional Hospital Complex manages comprehensive utility needs through enterprise program. Monthly usage: Electricity 125,000 kWh × $0.089 = $11,125.00, Water 28,500 gallons × $0.0065 = $185.25, Gas 15,200 cubic feet × $0.68 = $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 like Regional Hospital Complex, coordinate multi-utility service delivery, and explain enterprise discount structures and premium service benefits
  • QA: Must validate volume discount calculations across multiple utilities (8% applied to $21,646.25 subtotal), verify complex billing with multiple service components, and ensure enterprise-level service charge accuracy
  • Engineers/Interns: Must understand large customer discount logic applied across multiple utility types, multi-utility rate integration within single enterprise accounts, and complex commercial billing 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 plan structure supports comprehensive bundling, while volume discounts can be implemented through negative service charges calculated as percentages of usage totals.

Scenario 16 – Prepaid Utility Payment Program

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 to eliminate bad debt risk.

Objective (Why)

  • Business Goal: Eliminate bad debt and collection costs through advance payment model while expanding service access to credit-challenged customers
  • Consumer Goal: Access utility service without credit checks 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 Costs: Additional $125K annually for delinquent account 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 to avoid deposits and credit checks. Current prepaid balance: $125.00. Monthly usage estimate: 650 kWh × $0.095 = $61.75. Service charges: $18.50 delivery + $8.99 admin = $27.49. Estimated monthly cost: $89.24. Remaining balance after month: $35.76. System automatically sends low balance alert at $25.00 threshold. Service disconnects automatically if balance reaches $0.00, 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 guidance, and explain payment options to avoid service disconnection while maintaining positive customer relationships
  • QA: Must test prepaid balance calculations with real-time usage tracking, validate automatic disconnect thresholds ($0.00 balance), verify customer notification systems trigger correctly at low balance alerts ($25.00), and ensure immediate reconnection capability
  • Engineers/Interns: Must understand prepaid account logic requires real-time balance tracking against usage, automated service control based on account 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 or real-time balance tracking capabilities
  • 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
  • Automated service control integration
  • Prepaid account management interface
  • Balance notification and alert systems

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

Scenario 17 – Municipal Water Late Payment Progressive Penalties

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

Objective (Why)

  • Business Goal: Minimize collection costs and bad debt through progressive penalty incentives while maintaining steady cash flow for 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 delays from late payments without penalty incentives affecting municipal budget planning
  • Collection Burden: Additional $85K annually for overdue account management, notices, and collection activities
  • Service Disruption: Payment delays affecting 12% of municipal customers create budget shortfalls and service quality issues

Scenario Explanation - in short City resident Lisa Park faces escalating penalties for late water bill payment. Original bill due February 15: $67.85. Late payment timeline: February 16-25 (first 10 days late): $12.50 penalty. February 26-March 7 (next 10 days): additional $25.00 penalty. March 8+ (final notice period): 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 = $140.35. Service disconnection March 16 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 customers understand escalating consequences while maintaining helpful customer service
  • QA: Must validate progressive late fee calculations based on specific date ranges (10-day periods), verify proper fee timing and accumulation, and test accurate penalty application based on actual payment dates
  • Engineers/Interns: Must understand date-based late payment logic with multiple penalty tiers, automated fee calculation based on payment timing, and progressive penalty structures that accumulate over 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 - first 10 days, system can track payment timing)
      • Late Payment $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" service charges support progressive penalty structures, and the system can track payment timing for appropriate fee application.

Scenario 18 – Green Energy Renewable Credits Program

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

Objective (Why)

  • Business Goal: 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 programs
  • Revenue Gap: $156K annual revenue shortfall from missed 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 for her home electricity. Standard electricity: 485 kWh × $0.098 = $47.53. Renewable energy credits: 485 kWh × $0.025 = $12.13 (REC premium). Service charges: Electric delivery rate $22.50, Distribution service charges $15.75, Green energy processing $3.99. Total monthly bill: $101.90. Susan receives certificate showing 485 kWh from renewable 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 and carbon reduction impact, and communicate additional costs for green energy options while emphasizing sustainability value
  • QA: Must validate REC calculations (485 kWh × $0.025), verify proper credit application to standard electricity usage, test accurate green energy billing components, and ensure environmental certificate generation
  • Engineers/Interns: Must understand renewable energy credit logic as consumption-based add-on service, environmental tracking integration for certificate generation, and billing 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 variable service charges based on kWh consumption, while green energy processing fees use fixed service charges.

Scenario 19 – Credit Security Deposit Management Program

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

Objective (Why)

  • Business Goal: Mitigate credit risk through security deposit collection while providing service access to 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 Issues: Compliance 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 history. Required security deposit: $225.00 based on estimated annual usage ($2,700 ÷ 12 months). Monthly electricity bill: $89.45. Security deposit management: Held in interest-bearing account earning 2% annually ($0.38/month interest). Eligible for refund after 12 consecutive on-time payments. Applied to final bill upon service termination. Deposit refund conditions: 12 months good payment history with no late fees.

Audience (Why it Matters) - in short

  • CSM: Must explain security deposit requirements to customers like Mike Torres, clarify refund conditions and interest accrual, and manage deposit lifecycle from collection through refund processing
  • QA: Must validate security deposit calculations based on estimated usage, verify interest accrual accuracy (2% annually), test proper deposit management throughout customer lifecycle, and ensure automated refund processing after qualifying period
  • Engineers/Interns: Must understand deposit tracking logic independent of monthly billing, escrow account management integration, automated refund processing based on payment 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 Deposit" in predefined service charges, supporting deposit collection, tracking, and lifecycle management.

Scenario 20 – Multi-Unit Property Bulk Billing Management

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

Objective (Why)

  • Business Goal: Serve multi-unit residential market segment through bulk billing solutions while reducing individual metering infrastructure costs
  • Consumer Goal: Enable property managers to efficiently allocate utility costs among tenants through master metering and fair allocation methods
  • Infrastructure Goal: Reduce metering infrastructure costs through master meters while maintaining fair cost distribution among unit occupants

If Not Set – Business Impact

  • Market Share: Loss of 45 property management accounts representing $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 and allocation support services

Scenario Explanation - in short Sunset Apartments (24 units) receives master meter billing for entire complex. Total complex usage: 28,500 kWh × $0.092 = $2,622.00. Complex service charges: $185.00. Total master bill: $2,807.00. Property manager allocation per unit: Simple average: $2,807.00 ÷ 24 = $116.96. Square footage allocation: 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 and collection.

Audience (Why it Matters) - in short

  • CSM: Must work with property managers like Sunset Apartments to explain master billing concepts, coordinate allocation methodologies, and support property management billing responsibilities while maintaining utility service relationships
  • QA: Must validate master meter billing calculations for entire complex usage (28,500 kWh), ensure proper integration with property management systems, and verify complex-level service charge applications without individual unit complications
  • Engineers/Interns: Must understand bulk billing logic for master-metered properties, property management billing 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 but lacks unit allocation features:

Current Capability:

  • Large commercial billing supports 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 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 effectively in SMART360, but tenant allocation requires external property management tools and processes.

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