Rate Modeling Process
Use the Rate Modeling programs to provide estimates of revenues from new rates by using your actual customer historical information. Modeling provides a method for figuring out where revenues came from by analyzing transaction codes and how much to charge in the future. In addition, Rate Modeling can be used to provide the PUC with information on requested rate increases.
1. Maintain the appropriate model
rate tables with the proposed new billing rates.
Note: For every rate table
you maintain you must also maintain a corresponding model-rate table.
In addition, the model-rate ID must match the associated
rate ID. For example,
if you have Rate Table ID of 004 then you will assign 004 as the Model-Rate
ID. For more information about billing rates and rate tables, see
Rate Table Maintenance.
2. Perform Transaction Code File Maintenance.
a. Maintain model minimum charge
b. Maintain model minimum usage, if applicable
3. Run the following rate model analysis reports:
a. Simple Detail Analysis report
4. Approve the new rates.
5. Run the Pro-Ration Utility to move the current rates to the Pro-rate tables if you need to pro-rate customer bills.
6. Run the Model-Ration Utility to move the model rates to the rate tables.