Budgets Calculation Formulas

The following formulas are used to calculate Proposed Budget Amounts for customers:

• Customer Budget Proposed Amount = Rate1 + Rate2

• Rate1 = ((Customer Budget YTD Usage/Budget Cycle Averaging Factor) X Budget Cycle MarkUpDown%/100) X Customer Reading Frequency

• Rate2 = ((Customer Budget Non-usage Amount/Budget Cycle Averaging Factor) X Budget Cycle MarkupDown%/100) X Customer Reading Frequency

Notes:  

• During the calculations, the customer's Reading Frequency is converted to the number of months between billings based on a twelve-month year.  For example, if the customer's Reading Frequency value is 12 for monthly, use 1 in the calculations.  If the customer's Reading Frequency is 2 for semi-annually, then use 6 in the calculations.  If the customer's Reading Frequency is 4 for quarterly, use 3 in the calculations.

• For more information about budgets, see Customer Budgets.